Lowe's Drywall Settlement Under Scrutiny
June 22, 2011 By The Sawaya Law Firm
The Consumer Product Safety Commission has received over 3,500 complaints from individuals in 38 states relating to defective drywall. Though a majority of these complaints come from Florida, Louisiana, Mississippi and Alabama, the problem has the potential to affect consumers nationwide.
The Consumer Product Safety Commission has received over 3,500 complaints from individuals in 38 states relating to defective drywall. Though a majority of these complaints come from Florida, Louisiana, Mississippi and Alabama, the problem has the potential to affect consumers nationwide.
Many of the affected homes were built or repaired in 2006 and 2007 after the previous year's hurricane season increased the demand for drywall. As a result of the domestic shortage, the drywall suspected in many of these cases was imported from China. Consumers have filed numerous lawsuits across the U.S. and a judge overseeing the federal cases expects as many as 40,000 plaintiffs to join class action lawsuits, according to a Bloomberg report.
The defective drywall can release chemicals that, aside from health concerns, can cause a strong sulfur odor and corrode metal or copper pipes in homes.
Lowe's Settlement
Lowe's, the retail home improvement store, entered into a settlement that will affect customers nationwide. According to a report in ProPublica, the settlement, for a case filed in a Georgia state court, will total $6.5 million dollars, with attorneys for the plaintiffs receiving an additional $2.1 million. The report also notes that the compensation provided to victims will be largely in the form of Lowe's gift cards ranging from $50 to $2,000. However, those who can show they have suffered damages beyond the $2,000 amount may also receive up to $2,500 in cash.
Lowe's denies that the drywall sold in its stores was defective and notes that its vendors have assured the company that none of the drywall was imported from China.
Amount and Structure of Settlement Questioned
Critics have already begun to question the settlement. The amount seems low to many following the case, as a Florida jury returned a $2.5 million verdict for one couple earlier this year. Armin and Lisa Seifart purchased their home in 2008 and began to notice a sulfur smell almost immediately. They also experienced repeated issues with their appliances. After only a year in the home, they learned the drywall used to build the home was responsible for the issues and brought suit against the suppliers.
Also, as noted in the ProPublica report, potential plaintiffs will not be sent a notice of the settlement, as is often the case in class action suits. Instead, the company will start a website and place notices in publications and magazines like Parade. Notices will also be printed at the bottom of receipts issued at Lowe's stores.
Health Risks of Defective Drywall
The Centers for Disease Control and Prevention note that along with issues relating to smell and corrosion of metal or appliances in the home, there are significant health risks associated with the drywall. Symptoms include:
* irritated eyes and skin,
* Breathing difficulties
* Cough
* Runny or bloody noses
* Headaches
* Sinus infection
* Increase risk or frequency of asthma attacks
The CDC also reports that long-term exposure can cause fatigue, memory loss, insomnia and irritability.
ABOUT THE AUTHOR: Article provided by The Sawaya Law Firm
At the Denver, Colorado, law firm of Sawaya Rose & Kaplan, P.C., our attorneys and staff take great pride in helping injured people not only recover from their injuries, but also recover their lives. From the first day you come to Sawaya Rose & Kaplan, we will manage your case from many perspectives - medical, personal, financial and vocational - so that you can recover your life and lifestyle as much as possible.
Copyright The Sawaya Law Firm
More information about The Sawaya Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Many of the affected homes were built or repaired in 2006 and 2007 after the previous year's hurricane season increased the demand for drywall. As a result of the domestic shortage, the drywall suspected in many of these cases was imported from China. Consumers have filed numerous lawsuits across the U.S. and a judge overseeing the federal cases expects as many as 40,000 plaintiffs to join class action lawsuits, according to a Bloomberg report.
The defective drywall can release chemicals that, aside from health concerns, can cause a strong sulfur odor and corrode metal or copper pipes in homes.
Lowe's Settlement
Lowe's, the retail home improvement store, entered into a settlement that will affect customers nationwide. According to a report in ProPublica, the settlement, for a case filed in a Georgia state court, will total $6.5 million dollars, with attorneys for the plaintiffs receiving an additional $2.1 million. The report also notes that the compensation provided to victims will be largely in the form of Lowe's gift cards ranging from $50 to $2,000. However, those who can show they have suffered damages beyond the $2,000 amount may also receive up to $2,500 in cash.
Lowe's denies that the drywall sold in its stores was defective and notes that its vendors have assured the company that none of the drywall was imported from China.
Amount and Structure of Settlement Questioned
Critics have already begun to question the settlement. The amount seems low to many following the case, as a Florida jury returned a $2.5 million verdict for one couple earlier this year. Armin and Lisa Seifart purchased their home in 2008 and began to notice a sulfur smell almost immediately. They also experienced repeated issues with their appliances. After only a year in the home, they learned the drywall used to build the home was responsible for the issues and brought suit against the suppliers.
Also, as noted in the ProPublica report, potential plaintiffs will not be sent a notice of the settlement, as is often the case in class action suits. Instead, the company will start a website and place notices in publications and magazines like Parade. Notices will also be printed at the bottom of receipts issued at Lowe's stores.
Health Risks of Defective Drywall
The Centers for Disease Control and Prevention note that along with issues relating to smell and corrosion of metal or appliances in the home, there are significant health risks associated with the drywall. Symptoms include:
* irritated eyes and skin,
* Breathing difficulties
* Cough
* Runny or bloody noses
* Headaches
* Sinus infection
* Increase risk or frequency of asthma attacks
The CDC also reports that long-term exposure can cause fatigue, memory loss, insomnia and irritability.
ABOUT THE AUTHOR: Article provided by The Sawaya Law Firm
At the Denver, Colorado, law firm of Sawaya Rose & Kaplan, P.C., our attorneys and staff take great pride in helping injured people not only recover from their injuries, but also recover their lives. From the first day you come to Sawaya Rose & Kaplan, we will manage your case from many perspectives - medical, personal, financial and vocational - so that you can recover your life and lifestyle as much as possible.
Copyright The Sawaya Law Firm
More information about The Sawaya Law Firm
View all articles published by The Sawaya Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
