NEW ORLEANS, April 26, 2011 /PRNewswire/ -- Attorneys today announced that a settlement agreement has been reached between the Plaintiffs in the multi-district litigation (MDL 2047) and a local supplier of tainted Chinese Drywall, Interior/Exterior Building Supply, L.P. and the company's two primary insurers.
A class action settlement has been reached, which is still subject to court approval under the terms of the agreement. The primary insurers will put up the limits of their insurance policies for Interior/Exterior, a regional supplier for Knauf's Chinese Drywall in Texas, Louisiana, Mississippi and Alabama.
Herman, Herman, Katz & Cotlar, L.L.P. attorney Russ Herman serves as Plaintiffs liaison and proposed class counsel for the Plaintiffs. He is joined by Arnold Levin of Levin, Fishbein, Sedran & Berman, as lead Plaintiffs counsel. Attorneys Leonard Davis of Herman, Herman, Katz & Cotlar, L.L.P. and Fred Longer of Levin, Fishbein, Sedran & Berman also assisted in negotiating this settlement for the Plaintiffs.
"This is the first Chinese Drywall settlement with a major supplier, Interior/Exterior, and a number of its insurers," explains Herman. "Judge Eldon Fallon of the Federal District Court in New Orleans, who presides over more than 10,000 CDW cases in MDL 2047, is expected to announce details of the settlement during his regularly scheduled conference on Tuesday morning at 9 a.m. Following Court approval, Plaintiffs will proceed to trial later this year against Interior/Exterior's excess insurers who carry more than $72,000,000 in coverage."
Attorneys Philip D. Nizialek, D. Russell Holwadel and A. Hugh Scott represent Interior/Exterior and its primary insurers in this proposed settlement.
"We have always maintained, and continue to believe, that Interior/Exterior was an innocent seller of Chinese Drywall, and that responsibility for remediation of its harmful effects will ultimately rest with Chinese Drywall manufacturers," stated Interior/Exterior's principals. "Nonetheless, we are pleased that this settlement will allow many homeowners to remediate and return to their homes as soon as possible, while at the same time relieving them from the burdens of litigation against the installers, suppliers and contractors to whom Interior/Exterior supplied Chinese Drywall."
It is estimated that between 60,000 – 100,000 homes were built using defective Chinese Drywall 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.
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SOURCE Herman, Herman, Katz & Cotlar, LLP