Lawsuits mount over 'problem' drywall imported from China
Thousands of homeowners across the nation are claiming that drywall imported from China at the height of the housing boom is making them ill. No quick or inexpensive "fix" has been found.
Q. We purchased a newly built home last year. Soon after we moved in, we and our two kids started noticing a weird "rotten-egg" smell that gave us constant headaches and sometimes made us vomit. The situation is still the same, 17 months later. We hired two different mold experts to inspect our house, and also called out a technician from the gas company, but they found no problems. What could it be?
A. I am not a doctor, nor an expert in home construction. But if your family's health problems are not being caused by mold or leaking gas, the culprit may be the very walls of your home.
A growing number of homeowners across the nation are suffering similar maladies, which they blame on drywall imported from China when the housing market was booming and construction hit all-time highs. Millions of large sheets of gypsum were imported from dozens of vendors, and many are believed to have been contaminated with various sulfur compounds that can cause a variety of illnesses.
More than 300 lawsuits have been filed by homeowners in Louisiana alone, and a federal-district court judge there will begin hearing testimony in a consolidated class-action suit early next year. Health officials in Florida say they have received more than 500 complaints.
In addition to medical problems, many homeowners claim the drywall makes appliances and other metal objects in their homes corrode quickly. It's not only ugly, but can lead to dangerous situations stemming from corroded wiring around the house and frequent failures of copper piping in air-conditioning units.
The U.S. government recently banned all imports of Chinese drywall, and the federal Consumer Product Safety Commission has been working to develop a preferred method for homeowners to deal with the problems the gypsum may cause. But many experts believe a solution will be neither quick nor inexpensive: The tainted food and dangerous toys from China that have been the subject of recalls in the past were soon removed from store shelves, but drywall typically runs throughout the entire house, and therefore can't be easily removed and replaced.
Until a preferred remediation plan is formalized, the CPSC suggests you consult a physician if you believe your drywall is making you ill, and contact state and local authorities to report the problems and see what type of help is available in your particular area. If you also have concerns about the potential electrical and fire-safety issues that problem drywall can cause, the agency says you should contact your electric or gas supplier and a licensed electrician or building inspector as soon as possible.
You also should consider reporting the problems to your insurer and homebuilder, and file a report with the agency itself at cpsc.gov/cgibin/drywall.aspx.
Q. I am a first-time landlord. My tenant, who gave me a $500 security deposit when he moved in a year ago, left behind $1,250 in damages when he moved out last month. Can I sue the tenant for the $750 difference in small-claims court?
A. Yes, landlords in most areas can sue if damage caused by a tenant who moves out exceeds the amount of the security deposit he provided when he first moved in. Call your local rent board or apartment owners' association for more information.
Q. I am a single mother, and I have been searching for a new mortgage to finance the purchase of a small condo for me and my kids. One loan representative asked me three different times how many children I have, and wanted to know details of the custody arrangement I have with my ex-husband. I did not get the loan, and I think it's because I refused to give him the information. Isn't this type of highly personal questioning illegal? Can I sue the bank for discrimination?
A. You could file a discrimination lawsuit against the bank, but it's doubtful that you would win.
The federal Equal Credit Opportunity Act prohibits lenders from considering an applicant's race, color, national origin, sex, marital status, age or religion when making a loan decision. It also prevents a bank from discriminating against an applicant simply because part of the borrower's income may come from a welfare agency or other type of public assistance.
The act also bars a lender from asking about a borrower's future childbearing plans. But it's OK to ask applicants how many children they currently have, because the cost of raising the kids could have a direct impact on the borrower's ability to repay the mortgage - especially if the children are attending a pricey private school or are involved in expensive after-school programs.
Similarly, details of the custody arrangement you have with your former spouse - as well as any child-support payments or alimony you receive - also could impact your chances of gaining loan approval. You'll look better in the eyes of a lender if your spouse shares the child-rearing expenses and sends you a hefty alimony check each month to boot. But if you're getting little or no financial help from your ex, don't expect to get any bonus points when the banker reviews your mortgage application.
• For a copy of the booklet "Straight Talk About Living Trusts," send $4 and a self-addressed, stamped envelope to David Myers/Trust, P.O. Box 2960, Culver City, CA 90231-2960
© 2009, Cowles Syndicate Inc.