
America’s trading partners have threatened trade wars and pressured President Obama and Congress to remove a stipulation from the latest version of the economic stimulus package that requires companies being bailed out to “buy American.”
But should they bow to this threat? Now yet another quality control issue raises its ugly head from products made in China. Miami-based Lennar Homes (the nation’s second largest homebuilder) has filed a lawsuit against the manufacturers and sellers of Chinese drywall. The list of defective Chinese goods is long, from pet food containing melamine to toothpaste tainted with antifreeze.
The companies named in the suit, Knauf Plasterboard, Taishan Gypsum and Florida’s Banner Supply Co., are being sued for damages due to complaints made by homeowners that the drywall emits sulfur gases that stink like rotten eggs and cause corrosion in metal and air conditioners.
The homes were built in 2005-2006 during the building boom in several Lennar communities in Florida with Lennar claiming that they were not aware that12 of their independent drywall installers were using the defective product. Those tradesmen are now being charged with breach of contract and breach of express and implied warranty along with the above-mentioned companies.
As reported in the South Florida Business Journal, Lennar’s statement emphasized it did not purchase the drywall directly from China, did not specify at any time that Chinese drywall be used as a substitute for a domestically made variety and “did not bargain for a discount or any other financial benefit from the use of Chinese drywall.”
The Journal also reports that one manufacturer, Knauf, said it hired toxicologists ad found no human health concerns associated with the drywall and that it would “viegorously” defend itself in the lawsuit.
The builder has set up a special task force to deal with homeowner concerns and to address the problem.