Chinese Drywall Suit Scheduled for Trial September 2010

The trial date for a Chinese drywall suit in Florida is scheduled for later next year, making it potentially the first in a series of cases that will be submitted to a jury involving damages caused by the toxic drywall.

The Miami Herald reports that the lawsuit over Chinese drywall brought by Melissa and Jason Harrell against South Kendall Construction, Palm Holdings, Keys Gate Realty and Banner Supply Co. will go to trial in Miami-Dade Circuit Court in September 2010.

The Harrells’ complaint alleges that defective drywall from China contained high amounts of sulfur, which caused breathing problems and headaches, corroded the coils of their air conditioner and filled their home with a chemical smell. The suit indicates that conditions caused by the defective drywall forced them to move out of their new home, which was built only three years ago.

Thousands of homes across the United States have experienced similar problems from Chinese drywall imported into the country between 2004 and 2007. The drywall was made with fly ash residue from the chimneys of coal-fired power plants, and has been found to contain high amounts of sulfur compounds. Some estimates suggest that the drywall may have been used to build as many as 300,000 homes throughout the country.

The high levels of sulfur in the drywall have been found to cause “rotten egg” smells and the gases emitted by the drywall corrode copper wiring and appliances, such as air conditioner units. There have also been concerns that the drywall is causing health problems such as headaches, breathing difficulties, insomnia and nosebleeds.

Earlier this month, the U.S. Judicial Panel on Multidistrict Litigation (MDL) ordered that all Chinese drywall lawsuits filed in federal courts throughout the country will be consolidated and centralized in the Eastern District of Louisiana for pretrial litigation. The cases will be handled in a coordinated manner to avoid duplicative discovery and inconsistent pretrial rulings. However, no case management order has been issued for the federal lawsuits and it is not anticipated that the first trial date will be scheduled before the end of next year.

While the Chinese drywall suits are proceeding through the court system, lawmakers are seeking several avenues for home owner relief. House and Senate Democrats are currently investigating whether Chinese drywall problems will qualify home owners for special tax deductions under casualty loss tax code laws, and Senators Bill Nelson and Mary Landrieu have called for a Chinese drywall recall.