Chinese Drywall Supplier to Reimburse Builders

NOLA reports from Louisiana that Knauf, the German supplier of faulty Chinese drywall, is set to settle litigation with homebuilders to reimburse them for remediating homes built with the sometimes toxic building product. During the housing boom, and following the hurricanes of 2004-2005 (including Katrina), the U.S. had to import drywall. In many instances the drywall caused metal fittings and wires to corrode, and caused respiratory and skin problems for homeowners. Although the terms are currently under seal, the agreement calls for Knauf to reimburse builders for any and all renovations and repairs where Chinese drywall was used. According to court documents, 945 homes are slated for reimbursement, but the total number of residents and builders in Louisiana is not yet known. 6,300 homeowners in 38 states filed complaints with the U.S. Consumer Product Safety Commission. Louisiana had the second largest number of complaints after Florida. Numerous lawsuits were filed in Dade County, FL.

(Photo credit: J.Pat Carter/AP)

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