A US judge has ordered China's biggest producer of plasterboard to pay US$2.6 million in damages to families whose homes were affected by defective product, a judgment that could lead to further litigation.
The seven families lived in homes that contained defective drywall, as is known in the US, manufactured by Taishan Gypsum, a subsidiary of China National Building Material (CNBM), a Hong Kong-listed firm that is one of China's biggest building material producers.
The ruling by Judge Eldon Fallon on Thursday could set a legal precedent for further damages caused by the plasterboard that has been blamed for everything from smells to electrical faults. 'The general principles found applicable to the seven families will have relevance to all homes contaminated by defective Chinese drywall,' Fallon said.
The US Consumer Product Safety Commission (CPSC) has received 3,082 complaints about Chinese drywall. The US$2.6 million damages awarded to the seven households could result in US$1.1 billion of damages, assuming all 3,082 complainants are granted similar damages.
The issue has taken a political turn. 'Homeowners didn't cause this. The manufacturers in China did. That's why we've got to go after the Chinese government,' said Senator Bill Nelson of Florida.
At least 2,100 US homeowners have filed lawsuits against Chinese manufacturers and the US suppliers that sold defective drywall.
One of the successful claimants discovered a foul smell on the first day they moved into their house. Subsequently, the water heater, heating and air-conditioning system, smoke detectors, computers and television failed, according to Fallon's judgment.
