WEST PALM BEACH, Fla., Aug. 12 (UPI) — Chinese drywall cases consolidated in a Florida county may move forward without waiting for rulings in drywall cases filed in federal courts, a judge ruled.

Palm Beach County Circuit Judge Glenn Kelley’s decision rejected arguments by builder Centerline Homes Inc. of Coral Springs, Fla., and Miami drywall distributor Banner Supply Co. that the cases should be stayed until federal cases are resolved.

More than 2,100 U.S. homeowners have filed federal suits claiming their homes were damaged or ruined by defective drywall that gives off noxious odors and chemicals that can corrode wiring, plumbing and heating equipment.

Kelley’s ruling is “really a huge win, because now … we’re able to begin going forward on Chinese drywall cases in Palm Beach County,” David Durkee, plaintiff’s liaison council for the consolidated cases, told The Palm Beach Post. “Now we can resolve the cases or have our day in court.”

Seventy-four cases alleging defective drywall — some for Chinese-made drywall and others alleging similar problems with U.S. wallboard — are pending in Palm Beach County Circuit Court.

No trial date is set, but Durkee said he hoped to go to trial by early next year.

The drywall in question is linked to respiratory and electrical problems in thousands of new homes, mostly in Florida and Louisiana. Consumer advocates argue high levels of hydrogen sulfide in the drywall can create health risks as well as corrode electrical wires.

The drywall was installed in homes across the South for about eight years during the housing boom that began in 2000. At that time, U.S.-made drywall was limited in supply and Chinese materials were cheap. Construction surged after hurricanes devastated many parts of the Gulf Coast.

The U.S. government April 2 instructed families with allegedly tainted drywall to rid their homes of the material and replace electrical wiring, gas pipes and sprinkler systems.

Homeowners would have to front the cost, which builders estimate at more than $100,000 per home.

PALM BEACH GARDENS, Fla.- – A judge ruled Wednesday that all homeowners in Palm Beach County plagued with Chinese drywall will be able to go to trial to try to receive financial compensation.

“It’s like a nightmare,” homeowner Barbara Tutin told WPBF 25 News after Wednesday’s ruling. “It’s been a nightmare, and today, finally, I have some hope that there’s some light, you know at the end.”

For the past nine years, Tutin has been a victim of the hazards of Chinese drywall.

Tutin showed WPBF 25 News the corroded wires, ruined appliances and anything silver tarnished by the Chinese drywall.

 She’s spent thousands of dollars replacing them, and Tutin is just one of thousands of homeowners in the state fighting developers, builders and contractors to get what’s owed to her.

 ”I’m not looking to make anything extra. I just want the house that I thought I bought. I want that house.”

 Attorney David Durkee has filed a lawsuit on behalf of the Tutins to get them financial compensation — enough money to gut their home and permanently be rid of the toxic material.

 ”Justice delayed in these cases is truly justice denied,” Durkee said. “Every day these folks live in these toxic homes, they’re having effects.”

 After a yearlong battle, a judge decided that the Tutins and other drywall victims in Palm Beach County will be able to get their day in court. The judge ruled that federally filed lawsuits against Chinese drywall manufacturers cannot interfere with cases on the state level.

 ”We’ve only sued these Florida corporations here in Florida and because of that we’re allowed to go to trial against these Florida corporations that are responsible for this damage they’ve caused,” Durkee said.

 Durkee said he hopes to set a trial date for the end of this year or early next year.

By Katie LaGrone

WEST PALM BEACH, Fla – Like so many transplants from the Northeast, Barry & Barbara Tutin built their Delray Beach home to retire in.

But rest and relaxation has been clouded by anger and frustration.

The Bostonians believe their home was built with defective Chinese drywall. Coils from the air conditioner have been replaced five times since they moved in 9 years ago. Barbara’s silver jewelry turned black, so did her favorite sterling silver candlesticks. The copper wire underneath her sink– is less bronze and more black.

“It’s scary. I can get angry, fearful, upset,” she said.

Last year, the Tutins joined a federal lawsuit against the builder, Centerline Homes. They knew their case could take years to go through the federal courts.

But years may now be just months away. On Wednesday, Circuit Court Judge Glenn Kelley gave the green light to allow Palm Beach County homeowners, who believe their homes are contaminated with the sulfur-emitting material, to get their cases heard in Palm Beach County.

The move will expedite the process and bring justice to homeowners sooner rather than later, says the Tutin’s attorney, David Durkee.

“These folks are living in a toxic environment. Their prospective property is being damaged on a daily basis. Some are moving out of their homes, some are losing their homes. Every day that goes by,damage is done,” he said.

The ruling will impact at least 74 cases which are now pending.

“I’m ready I want this settled once and for all, enough is enough,” said Tutin.

Judge Joseph P. Farina concluded the $6.6 million fund established for the owners was reasonable, given the fact “the settling parties have limited assets and collectibility of those funds remains an open question.”

To view the full article, please click the link provided here.

By Allison Ross

WEST PALM BEACH — Palm Beach County homeowners affected by tainted drywall are one step closer to making their case on their home turf.

In an order Wednesday, Palm Beach County Circuit Judge Glenn Kelley ruled that defective drywall cases consolidated in Palm Beach County can move forward without waiting on drywall cases in federal court.

Some defendants in cases filed in Palm Beach County – including builder Centerline Homes and drywall distributor Banner Supply – had asked that the cases be stayed.

“It’s really a huge win, because now … we’re able to begin going forward on Chinese drywall cases in Palm Beach County,” said David Durkee, plaintiff’s liaison council for the consolidated cases. “Now we can resolve the cases or have our day in court.”

More than 70 defective drywall cases – some for Chinese-made drywall, and some alleging similar problems with American wallboard – are pending in Palm Beach County Circuit Court.

Barbara Tutin, who lives in the Vizcaya development west of Delray Beach, is one of the plaintiffs in those cases.

“I’m just very, very excited about this ruling,” Tutin said. “I’m hoping there’s an end to this coming soon, that we’ll be able to go to trial soon and get my house fixed.”

Tutin, who is still living in a house that she says was built with defective wallboard, says she constantly worries about her health and about when her appliances and air conditioner might fail again.

“The only thing keeping me going is that a resolution will come soon,” she said.

Some drywall installed between 2000 and 2008 has been found to give off sulfuric gases linked to metal corrosion in homes and blamed for health problems.

No trial date has been set, but Durkee has said he hopes to go to trial late this year or early next year.

The next status conference on the consolidated drywall cases is planned for Aug. 27.

To view the full article, please click the link provided here.

Some Homeowner Policies Canceled After Claims Involving Defective Chinese Product

By M.P. MCQUEEN. Click here to see the original article.

At least two home insurers in Florida have begun dropping policyholders who filed claims for property damage linked to drywall imported from China.

Disputes with insurance companies are increasing as a growing number of homeowners file claims for property damage they say is caused by defective Chinese drywall. Insurers are fighting the claims and in some instances using the information in them to drop the policies.

Black dust covers tubes in the air conditioner of a Parkland, Fla., home that has Chinese drywall. Homeowner Mary Ann Schultheis displays the dust in April.

The Chinese drywall, also known as gypsum or wallboard, is under investigation by federal and state agencies, including the Consumer Product Safety Commission, for emitting sulfide fumes suspected of causing corrosion of electrical wires and plumbing.

Many affected families also have reported health symptoms, including skin irritation and respiratory difficulties, to the CPSC and state health agencies. As many as 100,000 houses across the country, most built in 2006 and 2007, may be affected based on estimates of the amount of drywall imported into the U.S. during the period.

Citizens Property Insurance Corp., a state-created, nonprofit corporation in Tallahassee that is the largest home insurer in Florida, confirmed that it has notified some policyholders who recently had filed claims for damage linked to Chinese drywall that their policies won’t be renewed if the damage isn’t repaired within six months of the date of notice. Citizens also holds the position that the claims aren’t covered.

Citizens spokesman John Kuczwanski said the insurer hasn’t paid any damage claims for Chinese drywall, citing policy exclusions for pollution and builder defects. He said it is standard procedure to require homeowners to repair conditions that could lead to further property damages and additional claims. “Corrosion leads to a likely future claim for a covered peril such as fire or a water leak,” which the insurer would be responsible for covering, he said.

Replacing drywall and corroded components in a house of average size costs $80,000 to $100,000, according to builders’ estimates.

Universal North America, a unit of Universal Group Inc. in Puerto Rico, sent a notice of cancellation, which is more serious than a nonrenewal, to at least one policyholder in Hallandale Beach, Fla., who asked not to be identified. The letter, dated Sept. 24, 2009, states that the reason for the action is an “unacceptable condition — the dwelling was built with Chinese drywall, which has been shown to have adverse long-term effects on the plumbing and other dwelling components.”

The Universal homeowner policy was effective July 20, 2009, and had been scheduled to continue until July 20, 2010. But the notice states that the cancellation is effective Oct. 19 at 12:01 a.m. Universal has about 105,000 home-insurance policies in the state, according to the Florida Office of Insurance Regulation.

Universal, the 12th largest insurer in Florida, didn’t return repeated calls seeking comment.

In August, one major manufacturer of Chinese drywall, Knauf Plasterboard Tianjin Co., said its tests indicate that its drywall isn’t harmful. Carbon disulfide and carbonyl sulfide are being emitted by some of its drywall, but not at levels that would damage health, said Phillip T. Goad, principal toxicologist and partner at the Center for Toxicology and Environmental Health in North Little Rock, Ark. The center is a private company hired by Knauf Tianjin that consults for corporations and government agencies.

In July, Lennar Corp. said it had identified 400 houses in Florida with confirmed problems with defective Chinese drywall and set aside $39.8 million to repair the homes. Several other large home builders also have set aside funds to repair homes with imported drywall from China from a number of manufacturers.

An attorney for both the Citizens and Universal policyholders, David Durkee of Coral Gables, Fla., said that “if you go ahead and disclose and do the honest thing you are subject to possible cancellation or nonrenewal. It is truly a cruel predicament.”

Write to M.P. McQueen at mp.mcqueen@wsj.com

To view the original TIME article, please click here.

Soon after Danie Beck and her husband bought their two-story town house west of
Miami in the summer of 2006, she thought an animal had died somewhere behind the walls. The strong sulfurous odor lingered, she says, and she began having dizzy spells that would keep her in bed for days. She began suffering from insomnia and sore, swollen joints. The house, too, appeared to be ailing: lights began blinking on and off, and Beck noticed discoloration of her wood furniture. The air conditioner, an indispensable appliance in South Florida, kept conking out. “It was an absolute nightmare,” the 67-year-old dance teacher says. “I felt as if something in this house was hammering me into the ground every day.”

It wasn’t until her repairman got fed up with fixing inexplicably corroded air-conditioner coils that Beck finally discovered what she and her home builder suspect is the source of the poltergeist: the Chinese drywall inside the house. Beck is among hundreds of homeowners in Florida alleging that toxic levels of chemical pollutants like sulfur are issuing from contaminated drywall made in some Chinese factories. At least four class actions have been filed in Florida; others have been filed in California, Louisiana and Alabama. (See pictures of China’s electronic-waste village.)

The U.S. Consumer Product Safety Commission is investigating the complaints. If the drywall proves to be the culprit, plaintiffs’ attorneys say tens of thousands of potentially affected homes could see a further drop in prices already hammered by the credit crisis.

“A lot of these people are just getting hit over the head a second time,” says David Durkee, a Miami attorney who has filed one of the suits. “This could have a further impact on the mortgage crisis by giving overwhelmed homeowners another incentive to just walk away from their houses.”

During the heady but reckless days of the recent U.S. housing-construction boom, builders were desperate for materials, and drywall was especially in demand. Before 2005, drywall imports to the U.S. from China were negligible; since 2006, more than 550 million lb. of it has been shipped here, mostly to Florida. The imports amount to a fraction of the 15 million tons of drywall produced domestically each year, but it was used to build more than 60,000 homes in at least a dozen states – including some post-Katrina reconstruction in Louisiana.

More than half the homes built with Chinese drywall are in Florida. Some of the suits there target construction companies; others include German drywall manufacturer Knauf and its Chinese subsidiaries – which are in turn being sued by at least one Florida home builder, Lennar Corp. Miami-based Lennar, which is also suing the U.S. suppliers from which it bought the Chinese drywall, has confronted the problem and initiated a program to do inspections and remove the offending wallboard in many homes, including Beck’s. (The process usually involves moving a family out of the house for at least six months to replace its interior.) Another lawsuit defendant, Engle Homes, based in Hollywood, Fla., has also admitted that the drywall problem exists in at least a small number of its homes. In a statement about houses near Fort Myers, Fla., that are part of Durkee’s suit, the company says, “Our initial findings tell us that that this seems to be an isolated incident that has affected a small number of Engle Homes in the Fort Myers, Fla., area and we are currently developing a plan to assist our affected homeowners.”

Drywall is made from gypsum, a soft mineral, that is pressed between thick paperboard. Plaintiffs’ attorneys say the allegedly toxic drywall material probably originated in at least one gypsum mine in China and possibly others. (A few years ago, Knauf and other drywall producers received complaints about a mine in Tianjin, China; Knauf says it stopped using the mine toward the end of 2006.) But Knauf denies that its product is toxic and argues it is not the only supplier of Chinese-made drywall to the U.S. Contacted by TIME, the company referred to a statement by its subsidiary, Knauf Plasterboard Tianjin Ltd.: “Any low levels of sulfur compounds present in the air in homes are not a health risk … The substances identified in testing are in no greater amounts than [in] the air found outside homes or in soil, marshes or the oceans.”

The Florida Department of Health has not yet concluded its own tests of the drywall in question. But Beck and other homeowners insist the common symptoms suffered by the Chinese-drywalled houses and their occupants can’t be mere coincidence. The problem came to light last year as those homeowners began commiserating on the Internet about rotten-egg smells in their houses and rashes of nosebleeds and other ailments. At the same time, exasperated air-conditioner repairmen began complaining to builders about copper-coil corrosion in newly built houses. The air-conditioning
companies concluded it was caused by high levels of airborne sulfur and moldy toxins. Wires in outlets, appliances and lamps were going bad too, as was wood. That in turn raised red flags for consumer-protection groups, already alarmed in recent years by the flood of defective Chinese-made products like toothpaste and toys.

Depending on how many homes ultimately prove to be contaminated, the repair costs – Beck says Lennar promised to tear her house down “to the studs” – could run into the tens of millions for builders. And that does not include the unspecified damages sought in the lawsuits. One problem plaintiffs face, however, is that many of the builders being sued have gone bankrupt in the recent housing bust. And even if homes are repaired, they may still carry the taint of having been drywall victims. Beck paid $344,000 for her town house; it is now worth $245,000 – less than the amount owed on her mortgage. And she worries that she may not be able to sell it at some point in the future even after Lennar fixes the drywall problem. “I’ll admit there are moments when I’m tempted to ask Lennar to just buy the house back,” says Beck, whose husband died last year of cancer. (His illness was not related to the drywall.)

Beck’s fortunes have taken a pummeling in recent years. She and her husband bought the town house after an arson fire destroyed the Miami home they had lived in for 39 years. And she has become accustomed to seeing its value jeopardized by the threat of hurricanes and by Wall Street malfeasance. But she wasn’t expecting any trouble from China.