The first federal court hearing on the Chinese Drywall lawsuits will be heard by US District Judge Eldon Fallon. The hearing is crucial because it involves remediation procedures as well as how much such remediation measures will cost. Most likely, the discrepancy concerning the cost of remediation will be large. The hearing will also set standards for federal Chinese drywall cases beginning in March.
Chinese drywall has damaged homes across the country but has had the most severe impact on southern states such as Florida, Virginia, and Alabama. The contaminated drywall has been associated with the corrosion of electrical equipment and has filled homes with a strong sulfur-like odor. One defendant, Taishan Gypsum Co. Ltd., has already been found in default for failing to respond to lawsuits naming the company as a defendant in the Chinese drywall lawsuits. Taishan Gypsum is controlled by the Chinese government.
The Consumer Products Safety Commission has received 2,800 complaints about Chinese drywall. The Chinese drywall was imported due to a shortage of drywall following the 2004-05 hurricanes. It’s estimated that 500 million pounds of the contaminated drywall was imported during the housing boom, perhaps affecting 100,000 US homeowners.