Is My Drywall Chinese? - HB Litigation Conferences

egg smell in the homes even after the drywall has been removed. The sulfur compounds and the
resulting noxious sulfur-like odors are also linked to health problems, including respiratory
issues. As one might suspect, the cost to replace both the drywall and other allegedly defective
materials is high.
To date, the suspect drywall has been found in new homes built from 2004 through early 2007 in
at least 13 states. Specifically, investigations have found suspect drywall in Florida, Arizona,
Colorado, Georgia, Louisiana, Maryland, Nevada, New Jersey, New Mexico, North Carolina,
South Carolina, Virginia and Texas. Florida homeowners have submitted almost 100 complaints
to the Florida Department of Health ("FLDOH") about problems relating to their drywall, and
the complaints have been logged from Manatee, Sarasota, Hillsborough, Lee, Dade, Palm Beach,
Highlands, Broward, Citrus, St. Lucie, Collier and Martin counties. The extent of the problem is
unknown, but at least 80 homes in Southwest Florida have been identified. The suspect drywall
has been located in residential properties of all types. Indeed, reports state that even Florida
Lieutenant Governor Jeff Kottkamp has moved his family out of their Fort Myers home while
the issue is being investigated. The problem is prevalent enough that some real estate agents are
beginning to add Chinese-made drywall information to their disclosure forms when buying and
selling Florida real estate.
Potential Liability
The "writing is on the wall." Lawsuits are beginning to be filed against the manufacturers and
distributors of the affected drywall. For example, a lawsuit filed in Florida state court by a
builder alleges that the manufacturer should have known that the drywall was defective. A class
action lawsuit pending in the U.S. District Court for the Middle District of Florida charges that
German drywall maker Knauf Gips KG ("Knauf"), its Chinese plasterboard units and other
defendants, including the manufacturers and distributors of the drywall, negligently
manufactured and sold the defective drywall, which was "unreasonably dangerous" in normal use
because it corroded plumbing, air conditioning and electrical components, and caused coughing
and irritation of sinuses, eyes and throats. The suit also seeks to recover from the defendant for
strict products liability and breach of warranty, among other causes of action. To date, residential
builders that have been identified as obtaining product from Knauf include: Lennar Corp., Taylor
Morrison, WCI Communities, Meritage Homes, Ryland Homes, Standard Pacific Homes and
Aubuchon Homes.
It is important to note that it is not just the manufacturers and distributors that should be
concerned about litigation arising from this allegedly defective drywall. Homebuilders and
contractors that installed the drywall should also be aware of their potential liability. For
example, some builders commented that the suspect drywall was heavier and broke differently
and in a more jagged manner than domestic drywall. Therefore, an issue might exist regarding
whether the builders had notice that the drywall was potentially defective. Moreover, architects
or engineers involved in construction projects should be mindful of potential professional
malpractice liability exposure. Any person in these roles named as a defendant may have
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