Judge rules against Chinese drywall maker – Bradenton Herald
MANATEE — A Chinese drywall manufacturer that didn’t respond to a class-action lawsuit has been found in default, an early legal victory for homeowners who blame the product for various health problems and property damage.
During a pre-trial hearing in New Orleans on Thursday, U.S. District Judge Eldon Fallon issued a default judgment against Taishan Gypsum Co. Ltd., court records show. The company failed to respond to a lawsuit filed by an Alabama homebuilder despite being notified of it in late June, the judge said.
Unless it is withdrawn, the judgment prevents Taishan Gypsum from defending itself in court against numerous suits accusing it and others of making defective drywall that was installed in U.S. homes.
Hundreds of U.S. homeowners, primarily in Florida, contend the drywall emits sulfuric gases that has caused respiratory problems, ruined air-conditioning and electrical components, and driven down their property values. They have filed more than 150 suits against drywall manufacturers, importers and distributors as well as homebuilders who used the product.
Those suits have been consolidated into a master case before Fallon, who hopes to hold “bellwether” trials early next year.
Shipping records show Taishan Gypsum imported at least 7.5 million pounds of drywall through Florida and New York in 2006 and 2007. The Beijing-based company is controlled by the Chinese government, according to court documents.
A legal group said Taishan Gypsum’s failure to respond to The Mitchell Co.’s suit highlights the need to reform U.S. laws to better hold foreign manufacturers legally accountable for their defective products.
“The ruling (Thursday) shows the company has turned their back, hoping U.S. consumers, homebuilders, and insurance companies will pick up their tab,” said Anthony Tarricone, president of the American Association for Justice, formerly known as the Association of Trial Lawyers of America.
He said it was “critical” that Congress pass pending legislation that would require foreign manufacturers to designate someone in each state where it does business to receive court papers, as well as consent to state and federal court jurisdiction. The bill is pending in a Senate committee.
Also Thursday, Fallon ordered attorneys in the consolidated case to try to work out disagreements over pre-trial discovery before filing objections. Defense attorneys had objected to several discovery requests by plaintiffs’ attorneys as being overly broad.
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