William E. Gibson – January 2, 2013
Congress has taken action to stop the spread of tainted drywall blamed for corroding pipes and causing breathing problems in thousands of homes in Florida and 38 other states.
A bill sponsored by South Florida Congressman Ted Deutch essentially bans high-sulfur building products and also raised hopes that homeowners will be able to bring Chinese manufacturers to court to recover the cost of replacing dangerous drywall.
“Most of the houses have been repaired, and people are moving forward,” said Michael Udine, mayor of Parkland, where hundreds of homes were built with drywall imported from China. “But any level of relief we can give those residents would be welcomed, because many were devastated.”
The bill that Congress sent to President Barack Obama Tuesday evening relies on diplomatic pressure to help alleged victims gain compensation.
It directs the U.S. secretary of commerce to arrange a meeting between Chinese drywall makers and U.S. officials on how to remedy homeowners. And it instructs the Commerce Department to insist that the Chinese government direct those companies to submit to the jurisdiction of U.S. courts and their judgments.
Though consumer advocates were encouraged, some remain doubtful about the Obama’s administration’s determination to demand a response from the Chinese.
“It dramatically improves the chances,” said M. Thomas Martin, president of Americas Watchdog, a consumer advocacy group in Washington that runs a complaint hotline for affected homeowners. “But will the next secretary of state be more forceful? Will he play tough guy with the Chinese?”
Thousands of homeowners already have filed suit to try to recover damages, and one company has proposed a settlement that is awaiting approval by a federal judge in New Orleans.
U.S. officials, meanwhile, have essentially blocked importation and distribution of suspect drywall. The bill bans the reuse of Chinese drywall already here.
“We’re still getting frantic phone calls from people who have gone down from Chicago and other places to buy their dream home in Florida saying, `What do we do?'” Martin said.
The bill also tells the Consumer Product Safety Commission to impose rules requiring that drywall made in this country or imported be labeled and meet industry standards that limit the amount of sulfur. Tests of the suspect drywall brought into this country in 2006 and 2007 indicated that it contained high levels of sulfur and that under humid conditions released vapors that corroded pipes and wiring.
Many residents also complained of breathing difficulty, severe headaches and other health problems.
“For those whose lives have been turned upside down by Chinese drywall, we’re trying to give them a chance to seek justice,” said Deutch, D-Boca Raton. “It’s not clear we will succeed, but this is the most serious effort undertaken to date to give people the opportunity to pursue the compensation they rightly deserve.
“It also ensures that none of the Chinese drywall that came in in 2006 and 2007 will be recycled and reused in any other homes.”
Consumer advocates estimate that 100,000 homes were built with the high-sulfur drywall. It was imported during a building boom in Florida and other parts of the Sunbelt and after a series of hurricanes prompted widespread reconstruction and a demand for more building materials.
“This [drywall] was like a silent hurricane that came through the city and damaged a lot of people,” Mayor Udine said. “We had subdivisions really, really hard hit. I walked down blocks where 11 out of 12 houses were affected.
“I’m hopeful this will give people a way to redress their problems.”