UPDATE 12/15/2011
Settlement Highlights
Settlement is intended to cover all plaintiffs in the drywall litigations in both federal and state court whose homes or businesses have KPT drywall. Approximately 5200 plaintiffs have specifically alleged that their homes contain KPT drywall; of these, approximately 2700 have submitted in some form evidence of the presence of KPT drywall.
These plaintiffs include homeowners, commercial owners and tenants, as well as multi-unit properties and prior owners of foreclosed properties or those who have engaged in short sales due to the presence of KPT drywall.
The Remediation Fund has three options:
- Program Contractor Remediation Option. The Program Remediation Option provides the class member with the convenience of having Moss & Associates, who has been approved by the PSC and the Knauf Defendants, remediate the class member's property. For more information on the drywall remediation program, please visit: http://www.mosscm.com/drywall/
-
Self-Remediation Option. The Self-Remediation Option provides the class member with the choice to select his or her own qualified contractor to remediate the property
-
Cash-Out Option. The Cash-Out Option provides a cash payment with no obligation to remediate the property but the amount of cash will be less than the amount that would be expended under the two remediation options and the homeowner must take steps to assure, among other things, notice to subsequent purchasers of the presence of KPT drywall.
-
Scope of remediation: all affected drywall, and with limited exceptions, unaffected drywall, will be removed from the home, and replaced with domestic drywall; the electrical wiring, smoke alarms, fire alarms, and other safety systems will be replaced; and the parties have agreed on a protocol for replacement of built-in appliances, such as refrigerators and microwaves.
-
Moving and storage Expenses: Under the two remediation options, homeowners will receive a stipend to cover the costs of moving and storage, during the remediation, and to pay for damaged personal appliances, such as computers and flat screen televisions.
-
Other Loss Fund: The Other Loss Fund will reimburse class members for provable economic loss, short sales, and foreclosures caused by KPT Drywall. The Fund also will provide a mechanism for resolving disputed personal injury claims.
-
Ombudsmen: The Plaintiff Steering Committee will appoint two construction experts to answer questions of claimants regarding construction, remediation, coordination, and communication with remediation contractor Moss & Associates or Moss-selected sub- contractors on various issues.
-
KPT will pay attorney's fees and costs in addition to the relief afforded to plaintiffs under the Remediation Fund and Other Loss Fund.
Settlement Reached with Local Supplier of Chinese Drywall
April 26, 2011 - During Judge Eldon Fallon's regularly-scheduled monthly status conference today, it was announced that a settlement agreement has been reached between the Plaintiffs in the multi-district litigation (MDL 2047) and a local supplier of tainted Chinese Drywall, Interior/Exterior Building Supply, L.P. and the company's two primary insurers.
The class action settlement, which is still subject to court approval under the terms of the agreement, states that the two insurers will put up the limits of their insurance policies for Interior/Exterior, a regional supplier for Knauf's Chinese drywall in Texas, Louisiana, Mississippi and Alabama.
Russ Herman serves as Plaintiffs liaison counsel and proposed class counsel. He is joined by Arnold Levin of Levin, Fishbein, Sedran & Berman, who serves as lead Plaintiffs counsel. Lenny Davis and Fred Longer also assisted in negotiating this settlement for the Plaintiffs.
"This is the first Chinese Drywall settlement with a major supplier, Interior/Exterior, and a number of its insurers," explains Herman. "Judge Eldon Fallon of the Federal District Court in New Orleans, who presides over more than 10,000 CDW cases in MDL 2047, is expected to announce details of the settlement during his regularly scheduled conference on Tuesday morning at 9 a.m. Following Court approval, Plaintiffs will proceed to trial later this year against Interior/Exterior's excess insurers who carry more than $72,000,000 in coverage."
The Settlement is intended to resolve claims brought against Interior/Exterior for the sale, marketing, distribution and/or supply of Chinese Drywall that was used in the construction of properties in the United States. Plaintiffs have filed complaints against Interior/Exterior to recover the costs of remediating their properties damaged by Chinese Drywall and other damages, but Interior/Exterior denies any wrongdoing whatsoever.
The Court has not determined the merits of any claims or defenses of the parties and this settlement will become effective only upon final approval by the Court. If approved, a Settlement Fund of $8,000,000, minus payments made in prior Chinese Drywall settlements with Interior/Exterior and minus the costs of Notice advanced by the Insurers, will be created from insurance proceeds from the Insurers. Interior/Exterior will assign its rights to $72 million of excess liability insurance to Class members with claims arising from affected property located in states other than Louisiana. Louisiana claimants will have the right to pursue in a direct action Interior/Exterior's excess insurance companies to the extent of the Available Policy Limits.
A fairness hearing has been scheduled for Friday, May 6 in New Orleans to determine whether the Settlement is fair, reasonable and adequate and should be approved.
If your home has been affected by tainted Chinese Drywall and you wish to discuss your legal rights, contact HHK&C to speak to an attorney.