Insurers for Drywall Supplier Settle Lawsuit
Insurers representing Florida-based drywall supplier Banner Supply Co. have agreed to pay $55 million to settle some of the claims filed by homeowners whose homes were built with Chinese drywall, our partners at the Sarasota Herald-Tribune reported today.
The settlement, reached in U.S. District Court in New Orleans, involves four of Banner Supply's insurers.
Russ Herman, an attorney who represents thousands of homeowners, said in a written statement that he expects that other parties also will settle within coming weeks.
In 2010, an investigation by ProPublica and the Sarasota Herald-Tribune found that Banner Supply and many Florida builders, drywall installers, and environmental consultants knew as early as 2006 that Chinese drywall was emitting foul odors, but chose not to warn consumers or regulators.
Through a review of public records, we found that nearly 7,000 homes had been affected by the bad drywall, which can trigger respiratory problems and cause electric appliances to fail.
Tainted Drywall: How Companies Kept Silent While Homeowners Suffered
Foul air from Chinese-made drywall has created a nightmare for thousands of homeowners.
The Story So Far
ProPublica and the Sarasota Herald-Tribune began examining in May 2010 what was—or wasn’t—being done to help people whose homes had been built with contaminated drywall. The problematic drywall, much of it imported from China, emitted foul odors and frequently caused mysterious failures of new appliances and electronics. Worse yet, some residents complained of serious respiratory problems, bloody noses, and migraines.
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2 comments
StephenFolkson
June 15, 2011, 2:53 p.m.
This action needed to be taken post haste. If that drywall is responsible for half of what it is accused of, the oompany responsible should be made to pay as quickly as possible to recompense the individuals who suffered as a result of their products.
Trubee
June 16, 2011, 7:41 a.m.
This is a perfect example of the Big Business interests shorting out a litigation to protect themselves from a bad result in a court of law. No doubt the US Chamber of Commerce had something to do with this settlement that screwed the American public.
Big Business and their white shoe law firms buy out the Class actions before a jury delivers a verdict which will be used to stampede other courts on the same issues.
If we stand back and watch, the likes of Goldman Sachs will be doing the same thing on the banking issues as they reach the litigation level and they will snatch victory from the hands of defeat and continue to screw the average American well into the next century just as they have for the last 100 years.
When you look at what is happening today in this country, you have further appreciation for Franklin Roosevelt who unlike our current leaders, had the foresight to see the next step and the step after that and realized what was in the long term best interests of America.
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