Ruling: US courts can handle Chinese drywall suits

NEW ORLEANS (AP) - A federal appeals court says U.S. courts have jurisdiction over claims that a Chinese drywall company's defective product wrecked homes.

The 5th U.S. Circuit Court of Appeals in New Orleans upheld a district judge's ruling that Taishan Gypsum Co. Ltd must pay $2.7 million for damage to seven Virginia houses. The owners were chosen to represent about 300 Virginia families.

All federal cases involving Chinese drywall have been consolidated in New Orleans.

The 5th Circuit ruled Jan. 28 that Taishan lost its chance for defense by failing to deal with plaintiffs' attorneys or the court until it was ordered to pay.

Taishan was one of two major manufacturers of drywall that caused problems from stenches to corrosion. It was installed in an estimated 12,000 to 20,000 U.S. homes.


(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Quick and Profitable
    Ron and Don say it's time to cut off Seattle's presidential ATM

  • Concert Congestion
    Concertgoers are crying foul after missing the Journey-Steve Miller show for a traffic jam

  • Seeking a Sequel
    Danny O'Neil has 3 things things to watch for as the Seahawks start training camp
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.