Lennar Homes and Chinese Drywall Lawsuits

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When you hear about the toxic chemicals that have been found in imported drywall plasterboards or wallboards from China, you have to ask - how in the world did this happen?

What would your company do if it found it had purchased and installed possibly hazardous materials? Hopefully what Lennar Homes is doing - trying its best to make it right at their expense.

Lennar Homes is reportedly the second largest new home builder in the United States. From 2004 through 2006, there was a shortage of drywall plasterboard throughout the nation. So many homes needed repair after the devastating natural disasters during that time that it put too much of a burden on the manufacturing plants here in the States. Builders looked overseas for the wallboard materials. Lennar dealt mainly with Taijin, Ltd, a subsidiary of Knauf Corporation out of Germany, one of the world's largest construction material distributors.

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Beginning in January of 2009, Lennar was beginning to front the cost of not only ripping out all the suspected toxic drywall but of temporarily relocating over a dozen families whose homes were affected. They were also replacing damaged pipes or wiring, including the AC units.

Darin McMurray, the divisional president for the South Florida operations of Lennar, was quoted to say that the homeowners' interests were their primary concern. He also reiterated that the air samples they tested in these homes did not indicate any of the occupants were in health related danger though some had exhibited mild symptoms. The main concern was both the corroding of the copper wiring and plumbing after concentrated exposure to the toxins and the nauseating rotten egg smell that was penetrating the homes.

To regain some of their economic losses, Lennar of course has filed a lawsuit with Knauf and Taijin, Ltd. They have also initiated action against twelve subcontractors who were hired to purchase and install drywall for Lennar in South Florida. One other home builder who also used the toxic Chinese drywall, WCI Communities, has had to declare Chapter 11 bankruptcy. As of May 7, 2009, Congress passed legislation to financially assist homeowners whose homes have tested positive for the toxic drywall. No financial relief has yet been designated for the builders.

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