Guest EssaysGuest EssaysMarch 27, 2009, CBS Evening News reported on the defective Chinese-made drywall crisis that is affecting many homeowners across the country. It is estimated that 550 million pounds of Chinese drywall was delivered to U.S. ports since 2006, enough to construct about 60,000 average size homes. However, this problem is not just contained to individual homes. The contaminated drywall has been reported to have been installed in other structures including office buildings and condominiums.
Strains on available domestic building supplies were driven by the housing boom from 2004 – 2006 and the repairs following Hurricane Katrina and other storms hitting Southeast and Gulf regions. Certain builders contacted international suppliers to fill that demand, including drywall. Chinese manufactured drywall has found to be contaminated with sulfur producing foul smelling-odors (rotten eggs) caused by hydrogen sulfide or other sulfide gases. Air quality tests administered in several homes built in South Florida area confirmed three different sulfide gases; carbon disulfide, carbonyl sulfide, and dimethyl sulfide. Reports indicate that millions of pounds of Chinese drywall entered U.S. ports during 2004 – 2007 and used across the country in thousands of homes, condominiums, and office buildings. A dozen ports around the country received delivery of the defective Chinese drywall, seven located in Florida with other deliveries made to ports in New York, Texas, New Orleans and California. One report indicated that one manufacturer shipped large quantities of drywall to New York and Port Everglades into the summer of 2007.
The affects of the defective Chinese drywall is spreading across the country. It is estimated that tens of thousands of homeowners have been affected from the contamination and is causing health problems for occupants. Sarasota, Florida health inspectors were the first government entity looking into the matter from a health perspective. Toxicologist for the Florida Health Department reported that the Chinese drywall could release sulfur dioxide and hydrogen sulfide (a highly toxic gas). However, at this time, there are no definitive answers if the level of sulfurous gases is enough to endanger human health. Many people have reported respiratory ailments, eye irritations, nosebleeds and headaches that seem to go away once leaving the affected buildings. Health officials in Florida, where the majority of the investigations have taken place to date, reported more than 50 health related complaints in recent months. Tests administered directly from the Chinese drywall material itself by an air quality management firm revealed that hydrogen sulfide was present. One Chinese drywall manufacturer had reported problems with their drywall from tests administered in 2006 confirming traces of hydrogen sulfide. Most of the first discoveries of the defective drywall were in Florida, but similar reports have emerged in other states such as Virginia and California. The Environmental Protection Agency (EPA) has received complaints from Virginia Beach and Chesapeake, Virginia. EPA reports had confirmed problems with the drywall from China; causing corrosion with copper and air conditioning units. Information reported by a spokeswoman from the EPA's Region 4 in Atlanta.
The defective Chinese drywall has a corrosive affect that destroys electrical systems, air conditioning systems, and exposed metal throughout a home or building. The cause of the problem is the sulfur. When sulfur is in a gaseous state, it is known to oxidize metal, turning metals black and eventually corroding. Lennar Corp of Miami, seen as one of the first builders to investigate claims of defective drywall, acknowledged that gases emitted from some Chinese drywall is causing corrosion of metal coils, wiring and other metal components within the homes built with the defective drywall. Lennar has begun making repairs to approximately 80 homes. Manatee Bay, Florida is an area of focus based on numerous shipments reportedly unloaded of defective Chinese drywall from Port Manatee. Reports indicate that responses amongst builders in the area have varied with some ignoring the problem with others taking a proactive approach. Lennar Homes is an example of a builder dealing directly with the problem. They are working with Sunset Air Inc., a firm that is replacing air conditioning components destroyed by the toxic drywall. Lennar is basically rebuilding the house on the inside except the exterior structure and framing. The process of gutting and rebuilding homes is estimated to take from four to six weeks and can cost as much as a third the total value of the home.
Contaminated Drywall Indications:
Class Action Lawsuit
On Monday, March 2, 2009 attorneys on behalf of homeowners with defective toxic drywall brought suit in Miami-Dade County federal court seeking compensation and relief from the builders, distributor, and manufacturer of the defective drywall. Similar lawsuits are also in the works in Virginia and California. The Miami-Dade suit seeks broad based relief for a long list of damages suffered by homeowners ranging from repair, replacement, property devaluation to medical testing for illnesses related to the sulfide gas exposures. The lawsuit states distributors and builders imported defective Chinese drywall into the U.S. and installed it into a large number of Florida homes built between 2004 and 2006. This action by the companies causing serious problems for homeowners including accelerated corrosion of air conditioner and refrigerator units, kitchen appliances, electrical wiring, electronics and other metal surfaces and household items. The suit states health related conditions associated with long-term exposure to low-levels of sulfides includes; fatigue, loss of appetite, headaches, irritability, poor memory, dizziness, and reproductive issues.
Plan of Action Considerations:
With current lawsuits moving forward, numerous law firms making inquires in a number of states, identifying the problems and attracting clients indicating potential damages, I suggest a proactive approach; investigating and determining the potential problem for past projects and limiting risks and exposures for current and future projects. The following are considerations firms should consider:
Timothy (Tim) Corbett is Founder and President of SmartRisk, a Pasadena, CA based consultancy providing risk management solutions to Design and Building Professionals. Mr. Corbett holds a BS Degree in Security & Risk Management, Bellevue University, MS Degree in Management Regis University, Denver, a degree in Environmental studies as well as concentrated studies in Architecture Design. As a recognized expert, Tim is a requested speaker at regional and national forums and published on the topics of insurance and risk management. For more information on this or other topics, Tim can be reached @ P: 626-665-8150, E: tcorbett@smartrisk.biz or visit SmartRisk's website at www.smartrisk.biz.
This article is intended for general discussion of the subject, and should not be mistaken for legal advice. Readers are cautioned to consult appropriate advisors for advice applicable to their individual circumstances.
