Chinese drywall, imported to deal with shortages of U.S. drywall between 2004 and 2006, has caused tremendous problems in the homes were it was used.  Fumes released by the drywall can corrode metal—damaging electrical wiring, plumbing and appliances.  One hundred thousand or more homes across the U.S. contain Chinese drywall, and some families don’t even know it yet because it can take some time for the problems to appear.

All Chinese drywall claims filed in federal court have been consolidated in one district court in New Orleans.  U.S. District Judge Eldon Fallon presides over the cases, and Baron & Budd attorney Bruce Steckler serves on the Plaintiffs’ Steering Committee, which speaks on behalf of all homeowners involved in the litigation.

Recently, these cases have started going to trial before the judge.  On April 8, Judge Fallon ruled in favor of seven families with Chinese drywall and established important parameters for the scope of necessary remediation and appropriate compensation for the families.  See the Chinese drywall ruling and what it means to you.  And yesterday, Judge Fallon ruled in favor of a family from Mandeville, Louisiana—the first Louisiana family to have their claims heard.  In each case, Judge Fallon found that the homes needed extensive remediation to fully neutralize the effects of the toxic drywall.

Judge Fallon’s April 8 decision outlined his decision on some central issues to the litigation:

• Chinese drywall causes corrosion of metal components of the home, such as plumbing, wire and appliances;
• Chinese drywall can create a fire hazard in the home;
• All drywall in the affected homes must be removed and replaced; selective removal and replacement of drywall isn’t sufficient; and
• After cleaning, an affected home must be certified as safe to live in before the remediation is deemed complete and the family returns.

Given the scope of the Chinese drywall problem, the resolution of this devastating situation is far from complete.  But Judge Fallon’s clear and thoughtful decision has provided clear guidance to both sides about how the claims should proceed and what to expect in the course of the litigation.