CPSC Chair Tenenbaum Seeks China's Help In Paying Chinese Drywall Claims in U.S.

The story of ruined homes, hopes and dreams in the U.S. Southeast has been raging in the news for almost a year: Drywall From China Causes Concern Over Sulfur Odor In Homes – by Wayne Parsons January 02, 2009. The first question that comes to mind for an attorney like me is how do you get a company in China to pay for damage that their product causes in the U.S. Defective Product Accountability for Foreign Manufacturers by Joe Saunders.

So how does the first woman who contacted me about Chinese Drywall in her home in Florida get the money to fix her problem? She was a single mother with a little girl and a new home tha reeked of sulfur smells to the point it made them both physically ill. The builder of the home was gone and probably bankrupt. To solve the problem, all of the drywall in the home would have to be removed and replaced. Think about it. That removing and replacing all of the walls in the house is a huge _ and expensive _ task. Well lawyers across the Southeast are filing lawsuits for aggrieved homeowners, but collecting any money may be an entirely different matter. It would be great if the U.S. Chamber of Commerce would stop its lobbying for insurance company behemoths like AIG and start helping Americans who are hurt get justice. But then all the U.S. Chamber of Commerce cares about is keeping the executive bonuses rolling in to the insurance industry fat cats. To heck with a single mother and her daughter in ruined home in Florida. She’s nobody to them.

Lucky for all of us, President Obama has appointed some consumer advocates to agencies like the Consumer Product Safety Commission. After 16 years of Presidents Clinton and Bush ordering consumer and environmental agencies to back off regulating commerce and protecting the environment, there are signs of life in federal agencies that protect American consumers.

The

(10/16, A3, Trottman) reports that in an interview prior to her trip next week to China for a consumer product safety summit, Consumer Product Safety Commission Chairman Inez Tenenbaum said she intends to ask China to assist in paying for damage caused in US homes by defective Chinese drywall. Said Tenenbaum, "I will find out if any discussions are going on in China about the costs, are they prepared to participate in providing funds, and what would it take for that to occur." She also intends to discuss a US regulatory standard for drywall composition.

Fallon denies motion to shift discovery to the Hague. The

(10/15, Mowbray) reported, "U.S. District Court Judge Eldon Fallon denied a motion Thursday by the German company Knauf Gips to conduct discovery in the Chinese drywall litigation under the rules of international litigation in the Hague. Plaintiffs and U.S. companies view the move as a sign that Fallon, the judge presiding over the national consolidated litigation over Chinese drywall in New Orleans, will fight to hold foreign manufacturers of Chinese drywall accountable."

The

(10/16, Marsteller) reports that Fallon "said he will not dismiss several suits against Knauf Gips KG," a German drywall manufacturer "that says it has nothing to do with Chinese drywall." Knauf Gips "argued the suits against it should be dismissed, saying U.S. courts lack jurisdiction because the company is based in Germany and has no business dealings in the United States." But Fallon said that "the company’s request would jeopardize plans to hold the first ‘bellwether’ trial in January."

ABC World News (10/15, story 10, 2:10, Gibson) reported, "A federal court in New Orleans held a hearing today about a growing problem for tens of thousands of American families. They have filed lawsuits alleging that drywall, made in China, is defective, ruining their homes and their health, and now some are finding their homeowners insurance is being canceled because of it." Desperate homeowners "are trying everything. Many are suing their builders and drywall manufacturers. And some have tried making insurance claims to get compensated, but insurance companies say their contracts clearly state they’re not responsible for construction defects."

/AP (10/15) reported, "Thousands of homeowners nationwide who bought new houses constructed from [Chinese drywall] are finding their hopes dashed, their lives in limbo. And officials warn that cases…in which insurers drop policies or send notices of non renewal based on the presence of the Chinese drywall will become rampant as insurance companies process the hundreds of claims in the pipeline." Because mortgage companies "require homeowners to insure their properties, they are then at risk of foreclosure, yet no law prevents the cancellations."

Nelson blasts move.

(10/16, Kessler) reports, "U.S. Sen. Bill Nelson, D-Fla., lashed out at some of Florida’s top insurance companies Thursday in response to several of them starting to drop coverage for homeowners who have tainted Chinese drywall." Nelson "fired off a number of letters to Florida companies," in one of which he "demanded that Bradley Meier, chief executive of Universal Property and Casualty Insurance Co. – one of the companies that has started dropping Chinese drywall victims – immediately provide ‘a statement regarding your company’s policy on claims and coverage relating to contaminated Chinese drywall.’"

Insurance reform is absolutely necessary in the U.S. as is now becoming apparant to all of us as the true facts of what is wrong with health care in America traces to the marble facades of the huge insurnace companies that dominate politics in Congress with their unlimited lobbying money.