Lawyers: Chinese drywall makers could ignore suits
NEW ORLEANS (AP) – Lawyers representing homeowners and homebuilders who used drywall suspected of causing corrosion and possible health risks say they expect Chinese companies that made the wallboard to ignore hundreds of lawsuits filed against them in U.S. courts.
So, who’s going to be on the hook for any damages courts might award?
That’s the pivotal question for lawyers as they pursue about 300 lawsuits in U.S. District Court in New Orleans that allege a flood of defective Chinese drywall was sent into the United States after a string of hurricanes in 2004 and 2005. The material is known to decay, creating corrosive chemicals and fumes.
Among tactics lawyers are considering are suits against U.S. investment bankers who financed the Chinese companies, and seizing ships that brought the drywall to the United States.
This would not be the first time Chinese companies have ignored U.S. liability suits, said Russ Herman, a lead plaintiffs lawyer in the drywall litigation.
“They’ve done that with toxic edibles, with toys, with (blood thinner) heparin, milk, you name it,” Herman said.
Kerry Miller, lead lawyer for the defendants, agreed. He represents U.S. homebuilders, drywall installers, distributors and Knauf Plasterboard Tianjin Co., the only Chinese company that’s recognized the lawsuits so far. The defendants want Chinese manufacturers to respond in court because they, too, are seeking damages from the drywall makers.
Miller said Chinese companies are able to dodge service in U.S. courts.