By Joel Scanlon
Declaration was made recently regarding a preliminary settlement between Knauf Plasterboard Tianjin and its customers, the proprietors. The company is a producer of the precarious drywall that was imported from China. Several homes were damaged on employing this tainted Chinese drywall.
Knauf Plasterboard Tianjin will reimburse over $600 M to $1 B to the affected homeowners of the country in order to repair their homes. However, the terms of the proposed preliminary settlement, anticipates receiving approval from the U.S. District Court Judge Eldon E. Fallon before being finalized.
Thousands of homes were constructed between 2004 and 2008, using the defective drywall that was produced by Knauf Plasterboard in China, according to a forecast. The defective drywall produced obnoxious and hazardous fumes and odors that corroded metals, appliances like air conditioning units and various other fixtures. As a result, many homeowners had to vacate their homes.
Terms of the proposed agreement include a remediation or repair program based on renovation, with cash settlement for alternative living expenditures, cash settlement alone will be provided for those who opt for self-remediation, a mediation program for compensation of expenses for those who already fixed their homes. In addition, recovery of equity will be offered to those who were compelled to a short sale or foreclosure. For customers who mixed drywall with another product and used Knauf as a combination product, compensation will be offered for the fraction of Knauf drywall that had been utilized. Payment of the attorneys’ fees that will benefit the proprietors, personal injury reimbursement or compensation fund will be provided for customers having suffered personal injuries.
The Court is likely to grant the preliminary settlement approval on January 4, 2012.