Chinese Drywall Liability

Abstract

This article presents an overview of the defective Chinese drywall product liability including a timeline starting when complaints were received by the Florida Department of Health in June 2008. The overview of the rapidly evolving product liability also discusses the factors that contributed to drywall demand and the production of synthetic gypsum as well as the common allegations that have been made against various drywall defendants and the actions and information provided by the Consumer Product Safety Commission—the federal agency tasked with leading the investigation into drywall complaints, potential health risks, and electrical and fire safety issues. Lastly, available corporate disclosures are summarized for drywall liabilities. The drywall problem has spurred much activity from homeowners, builders, contractors, suppliers, and drywall manufacturers. Much investigation has been done and more is in process, and initial findings and results are just being made available. That said, it is too early to tell the magnitude of the liability in which many facts remain unknown, and it is uncertain when the drywall problem will abate.