Judge awards $164K to Louisiana family for Chinese Drywall

A federal judge ruled Tuesday that a Chinese drywall manufacturer must pay damages to a Louisiana family in the first contested court case over the corrosive product.

U.S. District Court Judge Eldon Fallon said that Knauf Plasterboard Tianjin Co. Ltd., or KPT, must pay more than $164,000 to repair Tatum and Charlene Hernandez’ Mandeville, La., home, replace damaged personal property and pay for rental housing for the couple and their two children while their home is fixed.

Those repairs must include replacing all drywall, the entire electrical network, the heating/ventilation/air-conditioning system and damaged appliances and electronics, the 47-page order said.

“Plaintiffs purchased a new home and are entitled to have it restored to a new condition (i.e., without any corrosion, tarnishing, residue, or other damage to wiring and other components),” wrote Fallon, who is overseeing the combined Chinese drywall litigation in his New Orleans courtroom.

KPT said it might challenge Fallon’s ruling that the Hernandezes’ home must be gutted to the studs, calling it excessive and unscientific.

“KPT is considering an appeal of the ruling for the single home involved in the Hernandez matter because the scientific evidence it submitted during the trial showed that a home impacted by Chinese drywall could be repaired for a much more reasonable amount than what was awarded by the court,” KPT attorney Don Hayden said in a statement.

Like thousands of other U.S. homeowners, the Hernandezes contended the Chinese drywall in their home emitted sulfuric gases that corroded electrical and metal components. The couple’s lawsuit was chosen to be among the first “bellwether” or test cases to be tried.

While the March 15-19 non-jury trial was limited to determining the scope and cost of fixing the Hernandezes’ home, it was the first U.S. case over Chinese drywall to be contested by a manufacturer.

The Hernandezes sought extensive repairs totaling nearly $200,000, while KPT argued that a less-intensive — and less-expensive method, at $58,000 — was sufficient.

Fallon went down the middle, awarding $136,940 in remediation costs to the couple. He also awarded $5,357 for damaged personal property and $19,069 to cover the family’s living expenses while it moves out during remediation.

“The award he gave is going to be more than sufficient to remedy the Hernandez home,” plaintiff attorney Christopher Seeger said.

Fallon also ordered KPT to pay the couple’s legal costs and attorneys’ fees, the amounts of which will be determined later. However, he awarded nothing to the Hernandezes for lost wages.

It’s the second victory he’s given homeowners in the legal fight over Chinese drywall.

Earlier this month, he ordered Taishan Gypsum Co. Ltd. to pay $2.6 million to seven Virginia homeowners. He also ordered Taishan, which never responded to the suit, to repair their homes using the same protocol he issued Tuesday.

Duane Marsteller, transportation/growth and development reporter, can be reached at 745-7080, ext. 2630.