Drywall Lawsuit Filed Against Homebuilder Lennar Corp.

Lennar Corp., the second largest homebuilder in the United States, acknowledged yesterday that some of their subcontractors have used defective drywall made in China and at least one homeowner who has experienced problems has named them as a defendant in a drywall lawsuit in Florida.

Founded in 1954, Miami-based Lennar is a Fortune 500 company , which has homebuilding operations in 17 states.

According to a filing with the Security Exchange Commission, Lennar’s subcontractors used drywall made in China primarily during 2005 and 2006. As a result, the homebuilder has begun work to identify those homes that may contain the defective drywall and to determine what repairs may be necessary.

Drywall imported from China has been found to contain high levels of sulfur compounds, which has caused problems for thousands of homeowners throughout Florida and the southeastern United States. When exposed to moisture or humidity, the defective drywall could emit harmful gases that cause foul odors, corrode metals throughout the home and potentially cause health problems for residents.

Lennar says that they have been named as a defendant in at least one drywall lawsuit filed last month in the U.S. District Court for the Southern District of Florida by a homeowner who has experienced problems caused by the Chinese drywall.

The homebuilder indicates that they do have insurance that should cover most of the costs associated with replacing the drywall and repairing any other damage caused by the corrosive gases. Lennar has also set aside additional funds to pay any costs that are not going to be covered by their insurance.

A number of defective drywall lawsuits are being pursued against different homebuilders, suppliers, retailers and manufacturers of the Chinese-made wallboard, with estimates suggesting that between 100,000 and 300,000 homes throughout the country could contain the potentially harmful drywall.