Couple wants $4.3 mil in damages for Chinese drywall
MIAMI -- A Florida couple driven from their home by foul-smelling, corrosive Chinese drywall should get at least $4.3 million in damages, their attorney said Thursday in the nation's first jury trial over the defective building materials.
The jurors quit after deliberating about four hours and will resume Friday. Lawyers in other cases could use the Miami case for reference in deciding what types of damages to seek.
Armin and Lisa Seifart, who have two young sons, were forced to move out of their five-bedroom, $1.6 million home in Miami's Coconut Grove neighborhood last year after the problems became unbearable. In addition to the sulfurous smell, they complained of corroded wiring and pipes, blackened jewelry and ruined appliances.
They pointed the finger at Banner Supply Co., which trial testimony indicated was warned by a manufacturer as early as 2006 of serious issues with Chinese drywall. Banner was a drywall distributor.
The Seifarts' attorney, Ervin Gonzalez, said Banner did not disclose the problems because of a confidential agreement reached with drywall manufacturer Knauf Plasterboard Tianjian. That long-sealed agreement, in which Knauf recommended an immediate halt to use of the Chinese drywall, became public as part of the lawsuit.
"They should have been ringing the bell. Clang clang clang clang! Problem! Red flag!" Gonzalez told jurors in closing arguments. "Banner as a company did nothing. Profits over people. Sales over safety. That's what they cared about."
Banner attorney Todd Ehrenreich acknowledged the company bore some responsibility but insisted it should only pay the Seifarts back for about $705,000 in direct expenses such as renovations, renting another house and other costs. Ehrenreich said the drywall defects didn't surface for several years in some cases and that Banner would not now sign the confidential agreement that hid the problem.
"If they knew then what they know now, they never would have signed this," Ehrenreich said.
The case could have legal implications for similar lawsuits filed by thousands of people, mostly in Florida, Virginia, Mississippi, Alabama and Louisiana -- states where large quantities of defective wallboard was imported during the housing boom and after a string of 2005 hurricanes.
Aside from the direct expenses, the Seifarts are seeking $100,000 a month for loss of enjoyment of their home from March 2008, when they moved in, until their expected return in February 2011. They also want $200,000 to compensate for the stigma the house now bears, which could affect its resale value.
The Miami case follows a Louisiana federal judge's decision in April to award $2.6 million in damages to seven families in Virginia for bad Chinese drywall. In that case, the Chinese entities who were sued never responded in U.S. court, leaving in limbo how the damages might be collected.
The federal cases were consolidated before U.S. District Judge Eldon Fallon for all pretrial proceedings, but thousands of people like the Seifarts are pursuing separate claims in state courts. Another such case, a class action involving 152 Miami-area homes, could go to trial later this year.
The Consumer Product Safety Commission has recommended removing any tainted drywall and affected wiring, fire alarm systems and gas pipes.