U.S. District Court Judge Eldon Fallon has issued a default judgment against Chinese drywall manufacturer Taishan Gypsum Co. for failing to make an appearance in U.S. Chinese drywall suits pending in New Orleans federal court.
The Chinese company’s failure to appear in the U.S.-filed lawsuits and the judge’s ruling have brought attention to the need for legislation holding foreign companies accountable for products they sell in the U.S. A proposed bill before Congress called the Foreign Manufacturers Accountability Act of 2009 would remedy the issue by requiring foreign manufacturers to maintain an agent in at least one U.S. state where the company does business. The agent’s purpose would be to accept service of process in U.S.-filed legal and regulatory claims. Additionally, the bill would require foreign companies doing business in the U.S. to consent to state and federal jurisdiction.
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