{"id":2626,"date":"2014-02-21T06:01:09","date_gmt":"2014-02-21T13:01:09","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=2626"},"modified":"2014-02-18T12:03:07","modified_gmt":"2014-02-18T19:03:07","slug":"federal-appeals-court-u-s-jurisdiction-chinese-drywall-suits","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/federal-appeals-court-u-s-jurisdiction-chinese-drywall-suits\/","title":{"rendered":"Federal Appeals Court: U.S. Has Jurisdiction in Chinese Drywall Suits"},"content":{"rendered":"<p>Janet McConnaughey &#8211; February 13, 2014<\/p>\n<p>U.S. courts have jurisdiction over claims that a Chinese drywall company\u2019s defective product wrecked homes, and a company that failed to show up in court must pay $2.7 million for damage to seven Virginia couples, a federal appeals court in New Orleans has ruled.<\/p>\n<p>The 5th U.S. Circuit Court of Appeals upheld a district judge\u2019s ruling that Taishan Gypsum Co. Ltd must pay the couples, who were chosen as representative of about 300 Virginia families.<\/p>\n<p>The case and appeal were heard in New Orleans, where all federal cases involving Chinese drywall have been consolidated.<\/p>\n<p>Attorneys for Taishan, one of two major manufacturers of sulfur-emitting drywall, could not immediately be reached for comment.<\/p>\n<p>\u201cThis is a great ruling for the people we represent: homeowners in Louisiana, Florida and Virginia,\u201d Arnold Levin, an attorney representing the plaintiffs, said. \u201cIt means that we now have judgments for several property owners and can now pursue that company \u2026 with regard to the homeowners similarly situated in Louisiana and Florida.\u201d<\/p>\n<p>The other manufacturer, Knauf Plasterboard Tianjin Co., and some of the companies it supplied agreed a year ago to settlements that attorneys said would add up to more than $1 billion.<\/p>\n<p>The defective drywall was installed in an estimated 12,000 to 20,000 homes and businesses, mostly in the South, between the devastating hurricanes of late 2005 and the housing crash in 2008.<\/p>\n<p>Taishan lost its chance for defense by failing to deal with plaintiffs\u2019 attorneys or the court until it was ordered to pay, the 5th Circuit ruled Jan. 28.<\/p>\n<p>The appeals court also rejected an argument that Taishan Gypsum didn\u2019t understand implications of the lawsuit, which was translated into Chinese. \u201cIf TG did not fully understand the significance \u2026 it should have sought legal advice,\u201d Judge Jennifer Walker Elrod wrote for the three-judge panel.<\/p>\n<p>Taishan Gypsum sold 100,000 sheets of drywall to Venture Supply Inc. of Virginia in November 2005 and another 100,000 the following month, for a total of $724,800, according to the court. It said Venture shipped and sold Taishan\u2019s drywall to customers in New York, Georgia and Florida, and possibly in Alabama.<\/p>\n<p>The company argued that its contracts with Venture called for arbitrating any disputes in China, so \u201cit was not reasonably foreseeable that it would be hauled into court in Virginia,\u201d Elrod wrote.<\/p>\n<p>The ruling upheld U.S. District Judge Eldon Fallon\u2019s decision that, under Virginia law, Taishan could be sued in Virginia because the company made a considerable amount of money there.<\/p>\n<p>via <a href=\"http:\/\/www.insurancejournal.com\/news\/southcentral\/2014\/02\/13\/320472.htm\">Federal Appeals Court: U.S. Has Jurisdiction in Chinese Drywall Suits<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Janet McConnaughey &#8211; February 13, 2014 U.S. courts have jurisdiction over claims that a Chinese drywall company\u2019s defective product wrecked homes, and a company that failed to show up in court must pay $2.7 million for damage to seven Virginia couples, a federal appeals court in New Orleans has ruled. The 5th U.S. Circuit Court&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/federal-appeals-court-u-s-jurisdiction-chinese-drywall-suits\/\">Continue reading <span class=\"screen-reader-text\">Federal Appeals Court: U.S. Has Jurisdiction in Chinese Drywall Suits<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[6,172],"tags":[58,27],"class_list":["post-2626","post","type-post","status-publish","format-standard","hentry","category-chinese-drywall","category-construction-law-2","tag-chinese-drywall-2","tag-construction-law","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Federal Appeals Court: U.S. Has Jurisdiction in Chinese Drywall Suits - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/federal-appeals-court-u-s-jurisdiction-chinese-drywall-suits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Federal Appeals Court: U.S. Has Jurisdiction in Chinese Drywall Suits - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Janet McConnaughey &#8211; February 13, 2014 U.S. courts have jurisdiction over claims that a Chinese drywall company\u2019s defective product wrecked homes, and a company that failed to show up in court must pay $2.7 million for damage to seven Virginia couples, a federal appeals court in New Orleans has ruled. 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