EIFS is a synthetic building cladding material introduced to New Jersey in the early 1980s. It was designed to mimic the look of real stucco, yet be easier and cheaper for homebuilders to install. Unfortunately, EIFS has also brought with it a host of shortcomings, notably drainage and moisture intrusion problems on wood-frame residential construction that began to emerge in 1995. As these barrier EIFS systems began to fail, many families discovered extensive rotting around windows, doors and other external frame penetrations. Worse, others found substantial internal frame rotting and damage to their homes. Still others reported pest infestation and even extensive mold growth. That situation would be bad enough if it were a surprise. But, it wasn't.

In fact, they knew all along...

Construction Law Updates

  • Chinese Regulators Meet with Consumer Products & Safety Commission to Discuss Chinese Drywall Problem As of last week, the Consumer Products Safety Commission (CPSC) stated that they had received more than 500 reports from homeowners in 19 states and the District of Columbia who believe their home was constructed with defective Chinese drywall. Due to the increasing number of US homeowners affected by the defective building product, officials from China’s General Administration for Quality Supervision, Inspection and Quarantine (ASIQ) office arrived in the US June 15, 2009 in order to investigate the reported problems with drywall made in their country. ....
  • Overview of Chinese Drywall Problem in the United States I recently found an article online entitled, US senators call for Chinese drywall probe. This article is one of the best articles I’ve found recently discussing the Chinese drywall problem. The article includes an overview of the problem, an explanation of what Chinese drywall is and why it is causing so many problems for United States homeowners, and the status of pending litigation claims in the US. ....
  • U.S. Senators Ask IRS to Make Chinese Drywall Repairs Tax Deductible Three US Senators from Florida and Virginia have appealed to the Internal Revenue Service (IRS) requesting that the costs incurred to homeowners affected by Chinese Drywall be deductible for federal tax purposes. In a letter sent Tuesday June 16, 2009, the Senators ask the IRS to include Chinese Drywall in the list of “unexpected events” which are currently listed as deductible under section 165(h) of the tax code. Fire, storms and theft are currently included in the list of the IRS’ unexpected events. ....
  • Florida Attorney General Warns Homeowners of Chinese Drywall Scams Florida Attorney General, Bill McCollum, issued a consumer advisory warning to homeowners in Florida who have been affected by Chinese Drywall alerting them of scams related to the defective drywall situation. The Attorney General’s office has received two reports of scams related to the Chinese drywall problem. The first includes bogus tests being conducted in order to determine the presence of Chinese drywall in the homes, and the second includes a company claiming to have a remedy for the corroded pipes and coils in the homes. ....
  • Nominee for Head of the Consumer Product Safety Commission Faces Chinese Drywall Questioning Inez M. Tenenbaum, President Obama’s nominee for head of the Consumer Product Safety Commission, faced questions yesterday regarding the nationwide concern over defective Chinese drywall during her U.S. Senate confirmation hearing. Tenenbaum appeared before the Senate Committee on Commerce, Science, and Transportation and although she made no references as to the specific steps she would take to remedy the problem, she did promise that if she was selected to head the Commission, she would work tirelessly to find a resolution to the Chinese drywall issue. ....
  • Judicial Panel on Multidistrict Litigation Sends Chinese Drywall Cases To New Orleans For Pre-Trial Work Yesterday, the Judicial Panel on Multidistrict Litigation transferred 10 Chinese drywall cases to the U.S. District Court for the Eastern District of Louisiana for coordinated pretrial proceedings. The JPML said it would treat dozens of additional cases as potential ad-ons ....
  • Stark & Stark Shareholder Presents Seminar on Transition, Building Defects and Alternative Dispute Resolution Donald B. Brenner, Shareholder and Chair of Stark & Stark's Construction Litigation Group, presented materials related to minimizing acrimony and conflict while preserving an Association's rights with respect to construction defects and/or repairs, in conjunction with David J. Byrne, Esquire, during a seminar entitled "Managing Costs and Risks in Challenging and Uncertain Economic Times". The presentation was held at the Meadowlands Exposition Center in Secaucus, New Jersey on Wednesday, May 13, 2009. ....
  • New Tests Conducted in Florida to Determine Which Chemicals Are Used in Chinese Drywall Last Thursday the Florida Department of Health completed another round of drywall testing aimed at determining which chemicals in Chinese drywall are responsible for emitting the sulfur gases. Earlier tests conducted on Florida homes this past March found hydrogen sulfide, carbon disulfide and carbonyl sulfide coming from several Chinese drywall samples taken from the homes. ....
  • Louisiana Senator Proposes Chinese Drywall Bill Allowing Homeowners to Collect From Drywall Manufacturers, Distributors and Suppliers Louisiana Senator, Julie Quinn, has introduced a bill which would allow homeowners in Louisiana to sue manufacturers, distributors, and suppliers for damages incurred by the defective Chinese Drywall used to build their homes. Senator Quinn’s proposed legislation would allow Louisiana residents to collect 100% of the damages they have incurred due to the defective drywall, in addition to attorneys fees, from the manufacturer, distributor, or seller of the contaminated drywall. Current legislation only allows homeowners to collect a percentage of the damages from the manufacturer, distributor, or seller. ....
  • Possible Solution to Remedy Effects of Chinese Drywall Being Tested in Florida A duplex in Fort Myers, Florida underwent tests last Friday to see if pumping chlorine dioxide into homes containing Chinese drywall will reverse the effects of the gasses emitted by the defective drywall. The theory behind the test is that bacteria in the paper of Chinese drywall react with the gypsum core to emit a sulfuric gas which is responsible for corroding air-conditioning coils and other metals in homes. This reaction is believed to be the cause for the smell and so by pumping chlorine dioxide into the homes, it should remedy the problem. The tests were performed Friday June 5, 2009 and results should be available in about a month. ....