Almost 3 years after the Chinese drywall debacle came to light for most Americans, one manufacturer has agreed to a settlement that would settle thousands of claims brought by Gulf Coast property owners who say the defective drywall corroded pipes, damaged electrical wiring, and ruined household appliances.
The deal was announced yesterday by U.S. District Court Judge Eldon Fallon, who is presiding over thousands of Chinese drywall lawsuits in the multidistrict litigation. According to the associated press the deal calls for Knauf Plasterboard Tianjin Co. to create an uncapped fund to pay for remediation of some 4,500 properties.
As part of the deal claimants will have the option of having a full remediation preformed by an approved builder or to remediate the property themselves and cash-out less a discount.
An additional $30 million fund will be established for other damages including loss of property equity in foreclosures and short sales as well as to cover claim of health problems allegedly caused by the tainted drywall.
Attorneys for the plaintiffs have estimated that the deal may be worth between $800 million and $1 billion by the time all is said and done.
All of the details of the settlement are not yet known, but this certainly a step in the right direction and to get these innocent victims the help they so desperately need.