Recent news articles reported that a Norfolk Circuit Court awarded default judgment to several homeowners against Taishan Gypsum Company, a Chinese drywall manufacturer. However, as with the other outcomes in Virginia, it is unlikely that homeowners or building supply companies will receive any benefits from this decision.

When the corrosive drywall issues first became public, concerns were raised about two possible issues: a) health effects; and b) property damage. To date, both the Centers for Disease Control and the Consumer Product Safety Commission (“CPSC”) have found that “not enough information exists to determine the nature and magnitude of a potential health risk.” Furthermore, no deaths can be attributed to exposure to imported corrosive drywall. That is good news. Continue reading “There still are no winners in Virginia’s Chinese Drywall Cases”

Although it’s only one case, and it probably will be appealed, a Virginia federal court judge determined that a homeowners insurance policy did not cover losses resulting from Chinese drywall. The case is TRAVCO Ins. Co. v. Ward. Frankly, the decision is not surprising, but it does provide another roadblock to homeowners looking for assistance in paying for drywall replacement. Nothing has happened thus far, including the award of a large default judgment against Chinese manufacturers of the drywall, that provides any immediate financial relief to those homeowners. Therefore, if you are in the market to buy a house, you need to take precautions when considering homes built between 2004 and 2007, the timeframe generally accepted as when the Chinese drywall was used prominently in new home construction. The Consumer Product Safety Commission and James City County Code Compliance has a wealth of information and reports regarding the ongoing investigation of Chinese Drywall.

UPDATE: The James City County Board of Equalization has reduced to $100 the home values of Chinese drywall victims. These legislative solutions will probably become the only source of financial relief for homeowners.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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