Knauf Plasterboard Agrees to Partial Settlement of Chinese Drywall Litigation

Oct 14, 2010, 17:36 ET from The Chinese Drywall Legal Network

NEW ORLEANS, Oct. 14 /PRNewswire/ -- The Chinese Drywall Legal Network announces that a settlement has been reached with Knauf Plasterboard (Tianjin) Co., Ltd. ("KPT") in the national Chinese drywall litigation pending in New Orleans.

In an effort to eventually resolve all of the lawsuits arising from drywall manufactured and exported to the United States by KPT, KPT has agreed to remediate up to 300 homes. This remediation "pilot program" is expected to serve as a model for a possible future global remediation program.

Homes eligible for remediation must contain all or substantially all KPT drywall and must be located in Florida, Louisiana, Alabama, or Mississippi. Homes with drywall manufactured by other Chinese companies will not be eligible to participate in the program.

The homes will be fixed according to a protocol developed by U.S. District Court Judge Eldon E. Fallon, who is presiding over the litigation in New Orleans. The protocol requires, among other things, the removal of all drywall, along with wiring, the air-conditioning system and other components -- effectively gutting the interior of the house.

The program is set to start immediately with the remediation of approximately 30 homes. The additional homes, up to 300, will be identified in the next several months and remediation of those homes is expected to begin early next year.

In addition to the cost of remediation, KPT will make a payment to the homeowner of $8.50 per square foot of the home as reimbursement for all alternative living expenses, personal property damage, and maintenance of the house while it is being remediated, including payment of all utility bills, insurance, property taxes, and moving and storage expenses. If the work is not completed within three months, KPT will pay the homeowner an additional $1.50 per month for each month the work continues.

About The Chinese Drywall Legal Network:

The Chinese Drywall Legal Network's mission is to obtain justice for homeowners who were affected by tainted Chinese drywall in their homes. To learn more about The Chinese Drywall Legal Network please visit http://www.drywalllegalhelp.com/.

SOURCE The Chinese Drywall Legal Network



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