Bi-Partisan Group Of U.S. Senators Demands That China Appear In U.S. Federal Court

NEW ORLEANS, Aug. 6, 2014 /PRNewswire/ -- A bi-partisan group of United States senators, including Senator Bill Nelson (FL-R),[1] Senator David Vitter (LA-R)[2] and Senator Mary Landrieu (LA-D)[3], have demanded that the Chinese government-owned companies, including Taishan Gypsum Co., Ltd. ("Taishan"), that sold defective drywall to American consumers comply with a federal court order to appear in court, answer charges and satisfy a default Judgment against them.

The order came as plaintiffs filed a new class action naming Taishan and the Chinese government as defendants.[4] On July 17, 2014, a federal court held Taishan in civil and criminal contempt for failing to appear in court.

"This bi-partisan support from three key United States senators shows how gravely officials in the U.S. Government view China's effort to flee the jurisdiction of U.S. Courts," said Arnold Levin, Levin Fishbein Sedran & Berman, lead counsel for the class action representatives .

Senator Nelson stated: "Why is this case so important? Its implications are far broader than the issues present in this litigation. It poses a defining moment for the Chinese government and its companies, which raises grave questions as to the risk of doing business with the Chinese. Will the Chinese government and its companies honor their moral and legal obligations under this or any other commercial contract? Will the Chinese government and its companies which have profited from the sale of defective products to consumers here in the United States continue to flee court jurisdiction when sued or will they honor moral and legal obligations to appear in court, defend themselves, and satisfy an adverse judgment?"

Senator Mary Landrieu expressed her support for the new class action lawsuit brought by "over 3,000 homeowners in Louisiana and across the country to seek compensation for health and property damages from imported Chinese drywall." She added: "This lawsuit is an important step in the fight to get China to step up to its responsibilities to make this right to the American families harmed by their dangerous and defective products."

Senator David Vitter singled out Taishan, which "refuses to take responsibility for its harmful products and continues to disregard U.S. law and our court system."

Said Vitter: "I applaud the court's effort to protect the integrity of our legal system in taking action to force the Chinese company to comply with the law and the court's orders. If state-owned Chinese companies such as Taishan want to do business in the United States, they must follow the law and must honor our legal system. If they will not honor commitments and work to resolve claims, how can we expect any Americans to trust any business relations with or products from Chinese government controlled companies?"

[1] Congressional Record, Senate, S4977-78, July 28, 2014. 
[2] Congressional Record, Senate, S5043-5044, July 29, 2014.
[3] Senator Mary Landrieu, Statement, July 30, 2014.
[4] Eduardo and Carmon Amorin, Individually, and on behalf of all others similarly situated v. The State-Owned Assets Supervision of the State Council, et al., Case No. 2.14-cv-1727, United States District Court for the Eastern District of Louisiana. The Chinese government is named through The State-Owned Assets Supervision of the State Council (SASAC) which owns Taishan and other companies named in multi-district litigation arising out of their sale of defective drywall products to American consumers.

SOURCE Levin Fishbein Sedran & Berman