Chinese Drywall Lawsuits Consolidated in Louisiana

By Harvey Kirk
Posted June 16, 2009

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All federal Chinese drywall lawsuits filed on behalf of homeowners throughout the United States will be consolidated in the Eastern District of Louisiana for pretrial proceedings. The cases will be handled as part of an MDL, or Multidistrict Litigation, throughout discovery and pretrial motions, where they will be coordinated in a manner similar to how a Chinese drywall class action lawsuit would be handled. However, the cases will all remain individual lawsuits despite the consolidation.

Potentially hundreds of Chinese drywall lawsuits could eventually be filed on behalf of homeowners throughout the United States. All of the cases share factual questions about drywall manufactured in China and imported into the United States earlier this year that contain high levels of corrosive chemicals.

The Chinese drywall problems have caused particular issues in the southeastern portion of the country, where more humid weather has increased the risk of the drywall emitting strong sulfur smells and corrosive gases that destroy air conditioner coils, electrical wiring, copper pipes and household appliances. The toxic drywall has also been associated with reports of various health issues for residents exposed to the gases.

Our Chinese drywall attorneys believe that transferring all of the cases to one court for coordinated handling during pretrial litigation will benefit homeowners, as it will eliminate duplicative discovery, ease some of the problems caused by international defendants, prevent inconsistent pretrial rulings and conserve the resources of the parties.

The MDL Panel decided to transfer all pending cases and future Chinese drywall lawsuits that are filed to the U.S. District Court for the Eastern District of Louisiana, where they will be assigned to District Judge Eldon E. Fallon. However, if they do not settle or otherwise resolve during pretrial proceedings, the cases will be transferred back to the original court where they were filed for trial.

According to an order issued June 15, 2009 by the U.S. Judicial Panel on Multidistrict Litigation:

No district is a clear focal point of this litigation. The common manufacturing defendant and its affiliates are foreign entities without a major presence in any of the suggested transferee districts. Most actions also name local entities, such as builders and suppliers, as defendants. All of the suggested districts, particularly those in the southeastern region, have a nexus to the litigation through allegedly affected houses built with the drywall at issue. On balance, we are persuaded that the Eastern District of Louisiana is a preferable transferee forum for this litigation. Centralization in this district permits the Panel to effect the Section 1407 assignment to a judge who has extensive experience in multidistrict litigation as well as the ability and temperament to steer this complex litigation on a steady and expeditious course.

CHINESE DRYWALL CLASS ACTION ATTORNEYS

The lawyers at Saiontz & Kirk, P.A. are investigating potential claims throughout the United States on behalf of individuals who suspect that they may have the defective drywall to determine if financial compensation may be available through a Chinese drywall lawsuit.

To review a potential case with our Chinese drywall class action attorneys, request a free consultation and claim evaluation.