Defective Chinese Drywall that Emits Sulfuric Fumes could Heighten International Tension..

[KoKo]

Friday, September 25, 2009
Court holds Chinese drywall maker in default
Jacksonville Business Journal - by Paul Brinkmann

A Louisiana federal judge has declared Chinese company Taishan Gypsum Co. – one of the largest manufacturers of contaminated Chinese drywall imports – in default in a class action lawsuit.

U.S. District Court Judge Eldon Fallon’s order holds the company in default for failing to respond to the lawsuit.

The default ruling has the potential to heighten the international tension in the unfolding drywall case, said Miami attorney Ervin Gonzalez, of Colson Hicks Eidson.

“The bottom line is: If you want to do business in the U.S., you have to hold companies accountable,” said Gonzalez, co-chairman of the trial committee for multidistrict court panel that is coordinating the federal drywall litigation. “If they’re not willing to appear in a court of the U.S., you shouldn’t be able to do business here.”

At least one national legal group said the ruling is an example of why new federal legislation is needed to hold foreign manufacturers accountable.

The American Association for Justice, formerly known as the Association of Trial Lawyers of America, said in a news release that manufacturers such as Taishan are able to skirt U.S. laws because of multiple obstacles. The organization called for passage of the proposed Foreign Manufacturers Legal Accountability Act of 2009.

“Taishan Gypsum profited from a product they sold here in the U.S. that has now proven to be defective, costing millions of dollars in damage, decreased property values and countless health problems. The ruling today shows the company has turned their back, hoping U.S. consumers, homebuilders and insurance companies will pick up their tab," AAJ President Anthony Tarricone said.

Earlier this week, Nancy Tennenbaum, the new chairwoman of the Consumer Product Safety Commission, told reporters in St. Petersburg that a recall of Chinese drywall appeared unlikely because of logistical problems and multiple manufacturers.

Other Chinese defendants in the federal class actions, such as Knauf Plasterboard Tianjin, have responded to the lawsuit by filing an appearance.

The proposed act would require manufacturers to have an agent, located in at least one state where the company does business, that would accept service of process for any civil and regulatory claims. It would also require companies to consent to state and federal jurisdiction, holding foreign manufacturers accountable to those judicial standards.

http://jacksonville.bizjournals.com/jacksonville/stories/2009/09/21/daily47.html?ana=tt3245

[DainBramaged]

1. China, where only the best of the best is made

:sarcasm:

[LeftinOH]

2. Chinese wallboard? Do we really need to import this to save a few bucks on construction costs?

[KoKo]

3. It was done in around 2005 when the construction boom cause US supplies

to dwindle. That's what the articles I've read about this have said. Maybe it was cheaper, too and so rather than ramp up US supplies in manufacturing they got greedy. Could be combination of the two.

The defective drywall is in other states as well. But, given the real estate crises, it's not being reported as much as it is in Florida. NC, Louisiana, Virginia new construction in spotty areas.

[Selatius]

6. Yes, especially to rebuild New Orleans. Anything to fuck over poor people.

There have been problems with this drywall during reconstruction efforts on the Mississippi coast and Louisiana.

[Kievan Rus]

9. Of course. It's what our consumerism-crazed society demands

Our consumerist society demands a lot of cheap junk rather a smaller amount of well-made products.

[KoKo]

4. Night crowd might be interested....

[KoKo]

5. What's important about this article is the BILL that could hold Importers Repsonsible for selling

Defective Goods in the US.

I wish more folks took this seriously. I tried.

[amandabeech]

7. Let the trial lawyers at these guys.

Why do we have to relive the early 1900s all over again?

[Kievan Rus]

8. China gives America just what it wants...poor-quality junk, thanks to our consumerism

The mindless rat-race in this country to have more material crap than your neighbor (of which you'll forget about in two weeks anyways), and treat that shiny new must-have item as if it were the Holy Grail, is the main reason why America no longer has manufacturing jobs and why so much of what's on the market today is poor-quality made-in-China junk.

Don't blame the Chinese for this, they give America just what our rampant consumerism demands: low-quality, poorly-made crap.