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Insurance Law

Knauf Plasterboard Tianjin Enters Settlement to Remediate Up to 300 Homes Impacted by KPT's Defective Drywall

NEW ORLEANS -  (Mealey's) The Plaintiffs' Steering Committee (PSC) in the Chinese Drywall multidistrict litigation and defendant Knauf Plasterboard Tianjin (KPT) today announced a settlement to remediate up to 300 homes in Alabama, Mississippi, Louisiana and Florida impacted by KPT's defective drywall (In re:  Chinese-Manufactured Drywall Products Liability Litigation, No. 2:09md02047, E.D. La.).

The agreement, detailed in a press release from the PSC, establishes a demonstration remediation program, funded by KPT and a number of builders, drywall suppliers and their insurers.

The demonstration program, involving the remediation of homes containing all or substantially all KPT drywall, will reportedly include removal of the drywall; replacement of all electrical wiring, including switches and receptacles; replacement of fire safety and home security equipment; replacement of fixtures damaged by the problem drywall; restoration of the home to the same construction quality and finishes that existed prior to the start of the remediation work; compensation to the homeowner for alternative living costs during the remediation, moving and storage and personal property damage; the reservation of rights for bodily injury; and attorney fees and expenses to be negotiated by the PSC and KPT and to be paid by KPT.

Under the agreement, KPT will retain and supervise contractors to do the work. The completed homes will be inspected by environmental engineers, who will certify to the homeowner that their home is free of problem drywall odors and contamination.

[Editor's Note:  Full coverage will be in the November issue of Mealey'sTM Litigation Report:  Construction Defects.  For all of your legal news needs, please visit]

Download the settlement agreement.

For more information, call editor Chris Bauer at 610-205-1171, or e-mail him at subscribers can find more Chinese drywall-related filings here.  If you do not have a ID, you can get information on how to subscribe here.

LexisNexis® File & Serve was selected as the online case-room to facilitate document exchange (e-service) by the attorneys in the Chinese Drywall litigation MDL (MDL 2047) in the U.S. District Court for the Eastern District of Louisiana.