Gypsum industry news

US: Legislation intended to better regulate the use of wallboard in homes and buildings is headed to the desk of US President Barack Obama, several years after the emergence of the 'toxic' Chinese wallboard saga.

The US House of Representatives approved the Drywall Safety Act of 2012 on 1 January 2013, amid the chaos regarding the 'fiscal cliff.' It approved the measure on an overwhelming 378-37 vote.

In December 2012 Senator David Vitter successfully pushed a Senate amendment to loosen some of the bill's language and to win the support of the National Association of Home Builders, which had previously opposed the bill. Once the bill was amended, it sailed to congressional approval.

"Many families were faced with the nightmare of building or repairing their homes with toxic wallboard after Hurricane Katrina and I want to make sure this doesn't happen again. This is good news for homeowners that we were able to pass this swiftly before the new Congress starts," said Vitter on 2 January 2013. "This legislation will make sure unsafe wallboard won't be sold in the future and that wallboard manufacturers are held accountable."

The Drywall Safety Act sets chemical standards for domestic and imported wallboard, and also establishes guidelines for its disposal. The bill allows the Consumer Product Safety Commission to set rules to ensure that existing 'toxic' wallboard is properly disposed of. The legislation also requires all wallboard used in the country to be labeled with the manufacturer's name.

US: A US federal judge has ruled that Taishan Gypsum Co, a Chinese wallboard manufacturer, must face claims over its allegedly tainted product, which has been blamed for causing foul odours, the failure of appliances and health problems. The ruling means homeowners will be able to pursue claims against the Chinese firm in US courts, increasing the pressure for a settlement similar to that reached between plaintiffs and Knauf in 2011.

Judge Eldon Fallon of New Orleans denied motions by Taishan to dismiss four lawsuits filed by homeowners whose properties were allegedly affected by faulty drywall. Fallon also denied a request by Taishan to vacate a US$2.6m default judgment that he levied against the company in May 2010 after it had failed to make appearances in one of the cases. The ruling is the latest victory for plaintiffs in hundreds of drywall lawsuits that have been consolidated in the New Orleans federal court.

After Fallon entered the US$2.6m judgment against Taishan, the company's lawyers made appearances in the case and argued that the court lacked personal jurisdiction over the company because of its lack of contacts with the United States.

"We believe that the court was in error for all the reasons reflected in our papers and discussed at the hearing," said Joe Cyr, an attorney for Taishan.

US: National Gypsum has announced that an Alabama lawsuit against the company has been dismissed. The suit claimed that National Gypsum wallboard exhibited the same characteristics as allegedly defective Chinese wallboard.

Marshall County, Alabama Circuit Court Judge Tim Jolley entered an order dismissing the case, Clark vs. National Gypsum, et. al. 'with prejudice', meaning that the plaintiffs are barred from bringing the same claim against the company again.

"This result is yet another confirmation of the quality and safety of our products and another blow to those making baseless claims against our company," said Craig Weisbruch, senior vice president of sales and marketing. "All National Gypsum wallboard has passed the industry's most rigorous testing and certification processes for indoor air quality and has been used by the US Green Building Council in its buildings."

The dismissal of the Alabama lawsuit follows a similar case in April 2011. A federal judge in Arizona dismissed a putative national class action against National Gypsum that had alleged that the company manufactured defective wallboard which emitted high levels of sulphur, damaged property inside homes and caused health symptoms. These problems have typically been associated with allegedly defective Chinese wallboard, not domestic wallboard. The plaintiff did not produce any credible scientific evidence that could substantiate his allegations.

"All credible scientific evidence - including studies by the federal government's leading safety experts - has led to the same conclusion," said Weisbruch. "National Gypsum wallboard does not pose the issues associated with allegedly defective Chinese drywall."

US: National Gypsum Company has announced that the plaintiff in Yee versus National Gypsum, et al. (pending in the US District Court for the District of Arizona) voluntarily dismissed his putative nationwide class action lawsuit filed against the company in October 2009.

"While we are pleased with the outcome of this case, we are hardly surprised. Throughout this litigation, we have never doubted the quality and safety of our gypsum wallboard and were confident we would be fully exonerated," said Craig Weisbruch, senior vice president of sales and marketing. "Our wallboard has passed the industry's most rigorous testing and certification processes for indoor air quality and has been used by the US Environmental Protection Agency (EPA) and the US Green Building Council in their buildings."

The putative class action, (Raymond) Yee versus National Gypsum, et al., alleged that the company manufactured defective wallboard that emitted high levels of sulphur, damaged property inside homes and caused health problems. These problems have typically been associated with allegedy defective Chinese wallboard and not US wallboard. National Gypsum vigorously defended itself against the claims and denied all allegations. The plaintiff did not produce any credible scientific evidence that could substantiate his allegations. "We have not seen any reliable evidence that our gypsum wallboard poses any of the issues associated with defective Chinese wallboard," said Weisbruch.

"The decision to dismiss the case without prejudice is not a reflection of the merits of Mr Yee's case," said William Anderson, an attorney representing the Arizona homeowner. "The dismissal in no way exonerates National Gypsum and any assertion to the contrary is irresponsible and false. Mr Yee is a member of the proposed class in litigation in Florida and we will watch with great interest how that case proceeds."

Robert Gary, who is working on the Florida case, said it made sense to move Yee's case to the Florida lawsuit. The 93 plaintiffs in that lawsuit say that National Gypsum wallboard caused corrosion problems in their homes. "Everyone has decided that the cases are most appropriately centred in Florida, because that's where the bulk of the victims are," said Gary. "The suit involves the same team of lawyers involved in the Arizona case."

The Consumer Product Safety Commission is leading its own investigation into reported American wallboard problems.