Lennar, Drywall & Lawsuit

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irvine123_IHB

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WSJ today had an article about Lennar has filed lawsuit against the two Chinese drywall manufacture alleging "wallboard is defective and is causing electrical problems and emitting rotten odors in dozens of homes across Florida".



Lennar also says that "environmental consultants it hired found that the drywall is emitting gases, which appear to be corroding air conditioner coils and other electrical equipment. "



The Chinese firm said "the drywall poses no health risk. The statement noted that Knauf has conducted tests in response to builders' complaints. "The company will not be a scapegoat for homebuilders who would seek a quick and convenient bailout based on false claims," Knauf Tianjin said in a statement. "The company intends to vigorously defend its good name and reputation."





However, according to Florida health officials, who have reviewed the consultants' results, say the drywall poses no immediate health threat.



I curious if the drywall is emitting rotten odors and cause problems, how can it pose "no immediate health threat"?



The link to the article is

http://online.wsj.com/article/SB123361908699541469.html?mod=googlenews_wsj
 
When product liability were pointed at China. Usually the owners of the manufacturer could not live with the dishonored reputation. They all miraculously committed suicide but the shoe lace knots of the deceased were tied from the opposite direction.
 
[quote author="bkshopr" date=1233724565]When product liability were pointed at China. Usually the owners of the manufacturer could not live with the dishonored reputation. They all miraculously committed suicide but the shoe lace knots of the deceased were tied from the opposite direction.</blockquote>


Good luck on the Chinese company doing the right thing as they may not even be in business at this point. Currently there are 23 million migrant workers out of work and 1000's of factories that have just closed. This spring the riots are going to be in full swing don't miss it.
 
So far this problem seems to be only in Florida. I know Lennar built a bunch of houses in 2004 ~ 2006 here in S. California.

I am wondering if the Chinese drywall was used here as well.



Here is a link to an article if you want to read about it

<a href="http://www.miamicondoforum.com/?p=860">Lennar's drywall headache</a>
 
[quote author="bkshopr" date=1233724565]When product liability were pointed at China. Usually the owners of the manufacturer could not live with the dishonored reputation. They all miraculously committed suicide but the shoe lace knots of the deceased were tied from the opposite direction.</blockquote>


Are there others besides this guy:



<a href="http://articles.latimes.com/2007/aug/14/world/fg-toys14">LA Times article about suicide of Mattell supplier in China </a>



I heard during the Cultural Revolution there was an epidemic in China of people falling to their deaths from tall buildings, all ruled suicides by the state.
 
This is back in the news.



<a href="http://news.yahoo.com/s/ap/20091015/ap_on_re_us/us_chinese_drywall">http://news.yahoo.com/s/ap/20091015/ap_on_re_us/us_chinese_drywall</a>



Home owner insurance policies do not cover manufacturing defects. I agree with the insurance companies. Why don't the owners of these defective houses sue the builder? Are the builders bankrupt?.....
 
[quote author="zubs" date=1255656378]This is back in the news.



<a href="http://news.yahoo.com/s/ap/20091015/ap_on_re_us/us_chinese_drywall">http://news.yahoo.com/s/ap/20091015/ap_on_re_us/us_chinese_drywall</a>



Home owner insurance policies do not cover manufacturing defects. I agree with the insurance companies. Why don't the owners of these defective houses sue the builder? Are the builders bankrupt?.....</blockquote>


No, but depending on the area, they are hard to track. Typically a small developer forms a new corporation for each new project, insulating other projects and lines of financing from each other. Each of these shell companies carries it's own insurance policy and hires a general contractor who hires sub-contractors, and the levels of insurance both of those carry depends largely on the requirements of the local and state government and the main insurer.



So once you have enough evidence to file a claim, you have to retain a lawyer, who in turn has to track down who the insurer is, who the GC was, what level of liability each party has in relation to the specific defect, how much insurance pays, and if the shell corporation or LLC has enough remaining assets to pay the difference. In most cases, the cost of fixing the defect is cheaper (and years faster) than trying to collect from the builder.
 
I understand what you are saying as the end user consumer (owner) should track down the culprit (Chinese Drywall Supplier) to process the suit. I would have thought that the owner could just sue the builder of the home (Lennar, KB, etc.) and then the builder would in turn sue their supplier, and on down the line. Why would the owner need to dig that deep into the process. They know who built their home, and the final company that sold the house to the end-user should be liable.



The selling company can then sue their supplier to get some sort of cash back.
 
[quote author="zubs" date=1233806954]So far this problem seems to be only in Florida. I know Lennar built a bunch of houses in 2004 ~ 2006 here in S. California.

I am wondering if the Chinese drywall was used here as well.



Here is a link to an article if you want to read about it

<a href="http://www.miamicondoforum.com/?p=860">Lennar's drywall headache</a></blockquote>


It was a specific lot number/batch of drywall that was tainted. I recall reading that the batch in whole ended up in the south (florida).
 
It is an elaborate plot from the Chinese government to slowly poison the FCB defected China claiming political asylum and human right to have a second child.
 
<a href="http://74.125.153.132/search?q=cache:BI79E8hmaDkJ:latimesblogs.latimes.com/laland/drywall/+chinese+drywall+installed+in+irvine+california&cd=4&hl=en&ct=clnk&gl=us">Chinese Drywalls were distributed in California.</a>



Standard Pacific and Lennar installed the Chinese drywall extensively in Florida.



<a href="http://74.125.153.132/search?q=cache:mwJEk9LAMHEJ:www.free-press-release.com/news/200907/1246453917.html+standard+pacific+florida+chinese+drywall&cd=1&hl=en&ct=clnk&gl=us">Standard Pacific installed Chinese Drywall </a>



California Chinese drywall locations are kept secretive because of tremedous lawsuit could take place here in California.



I am sure both Stan Pac and Lennar are being monitored closely by construction defect attorneys.
 
[quote author="bkshopr" date=1255672288]<a href="http://74.125.153.132/search?q=cache:BI79E8hmaDkJ:latimesblogs.latimes.com/laland/drywall/+chinese+drywall+installed+in+irvine+california&cd=4&hl=en&ct=clnk&gl=us">Chinese Drywalls were distributed in California.</a>



Standard Pacific and Lennar installed the Chinese drywall extensively in Florida.



<a href="http://74.125.153.132/search?q=cache:mwJEk9LAMHEJ:www.free-press-release.com/news/200907/1246453917.html+standard+pacific+florida+chinese+drywall&cd=1&hl=en&ct=clnk&gl=us">Standard Pacific installed Chinese Drywall </a>



California Chinese drywall locations are kept secretive because of tremedous lawsuit could take place here in California.



I am sure both Stan Pac and Lennar are being monitored closely by construction defect attorneys.</blockquote>


I wonder if climate is a factor. That is, Florida is more humid than SoCal, and humid conditions might be required for this to be a problem.
 
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.<strong> 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.</strong>



<a href="http://www.duanemorris.com/articles/article3209.html">http://www.duanemorris.com/articles/article3209.html</a>
 
Due to the high reserve per unit, buying groups looking for deep discounts on residential product are increasingly looking at Chinese drywall as a possible way to acquire new single-family houses and condominium towers for pennies on the dollar.



<a href="http://www.free-press-release.com/news/200908/1250284965.html">http://www.free-press-release.com/news/200908/1250284965.html</a>
 
[quote author="Cameray" date=1255739585]Due to the high reserve per unit, buying groups looking for deep discounts on residential product are increasingly looking at Chinese drywall as a possible way to acquire new single-family houses and condominium towers for pennies on the dollar.



<a href="http://www.free-press-release.com/news/200908/1250284965.html">http://www.free-press-release.com/news/200908/1250284965.html</a></blockquote>


CondoVultures.com is a hilarious name for a website.
 
I have very little faith in Chinese products. So far most have failed including the plasticized prisoners. I better check on the fresh kidney and one eye ball that I ordered. Is there anyone here could validate the quality of Chinese mail order brides? Does the warranty expired after green card is received?
 
[quote author="Cameray" date=1255739282]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.<strong> 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.</strong>



<a href="http://www.duanemorris.com/articles/article3209.html">http://www.duanemorris.com/articles/article3209.html</a></blockquote>


This is the first thing I've seen that explains exactly what caused the problem:



"It has been reported that although the drywall may meet ASTM standards, the water used to mix the gypsum may have been wastewater that contained chemicals, including sulfur."



Sounds like a typical Chinese method of cutting corners that's come to bite them on the ass.
 
Other than cuisine I would not want Chinese made products. Kung Pao chicken is excluded because American franchises can make it better.
 
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