Herman, Herman, Katz & Cotlar, L.L.P. and Other Counsel: Preliminary Settlement Reached in Florida Chinese Drywall Litigation

NEW ORLEANS, June 14, 2011 /PRNewswire/ -- A preliminary settlement has been reached between the Florida-based drywall suppliers, Banner Supply Company, Banner Supply Company Ft. Myers, LLC, Banner Supply Company Pompano, LLC, Banner Supply Company Tampa, LLC, Banner Supply Company Port St. Lucie, LLC, and Banner Supply International, LLC, (collectively "Banner"), their insurers, and a proposed class of homeowners whose homes were damaged by tainted Chinese drywall, counsel for the parties announced today.

Under the terms of the proposed settlement, which still must receive approval from U.S. District Court Judge Eldon E. Fallon before it can be considered final, four of Banner's insurers, Chartis, FCCI Insurance Company, Hanover American Insurance Company and Maryland Casualty Company, will pay approximately $55 million to affected homeowners in Florida.

"This is a substantial development in Chinese drywall litigation," said Ervin Gonzalez, plaintiffs' Miami counsel, "as it enables Florida homeowners to get some relief from their ongoing Chinese drywall issues."

Plaintiffs' New Orleans attorney, Russ Herman, added that attorneys for the plaintiffs "continue to engage in negotiations with other responsible parties and [they] expect other settlement developments within the next 60 days. This is an ongoing process to secure complete relief for affected homeowners."

Michael Peterson, Banner's counsel, of the firm Peterson and Espino of Miami, Florida, said, "Our business has thrived for over 58 years because our customers have trusted us. We are settling this matter to bring a resolution for our customers and to allow the homeowners to fix their homes. We regret that this could not have been achieved sooner, but Banner recognizes that prolonged litigation would not have accomplished this goal."

"We are pleased this settlement resolves this particular matter," a spokesman for Chartis said.

According to the plaintiffs' counsel, it is estimated that between 60,000 – 100,000 homes were built using defective Chinese drywall from a number of suppliers between 2004 and 2008 throughout the country. The defective drywall has been associated with unpleasant and potentially harmful odors and fumes that corrode metals, including air conditioning units, fixtures and other appliances.  

Russ Herman of Herman, Herman, Katz & Cotlar, L.L.P., who serves as plaintiffs' liaison counsel and proposed class co-counsel for the plaintiffs, and Arnold Levin of Levin, Fishbein, Sedran & Berman, who serves as plaintiffs' lead counsel and proposed class co-counsel for the plaintiffs, together with Ervin Gonzalez of Colson, Hicks, Eidson of Miami, Florida, all participated in negotiating this settlement for the plaintiffs. Attorneys Leonard Davis of Herman, Herman, Katz & Cotlar, L.L.P. and Fred Longer of Levin, Fishbein, Sedran & Berman also assisted in this settlement.

Attorneys for the Defendants include Michael Peterson and Todd Ehrenreich for Banner.

Jane M. Byrne of Quinn, Emanuel, Urquhart & Sullivan, represents Chartis.

Contact:

On behalf of Plaintiffs:
Meri Monsour
(504) 484-3442
(504) 275-8211
[email protected]

On behalf of Banner:
Bill Halldin
(916) 781-0657
(916) 718-1251
[email protected]

On behalf of Chartis:
Mark Herr
(212) 770-3505
(718) 685-9348
[email protected]

SOURCE Herman, Herman, Katz & Cotlar, L.L.P.