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Member, Beacon International Group, Ltd.
NEW ORLEANSInsurers for a Chinese drywall supplier involved in federal multidistrict litigation in New Orleans have agreed to pay up to $8 million to settle litigation against the company over damage to homes.
The settlement agreement reached last week between Interior/Exterior Building Supply L.P. and its insurersArch Insurance Co. and Liberty Mutual Fire Insurance Co.still must be approved by a U.S. district court judge.
The settlement amount is the limits of the supplier's policies with Arch and Liberty Mutual. Previous payments and settlements of claims against Interior/Exterior will be deducted from the fund, according to court documents.
If approved, the settlement will cover a share of claims from homeowners, which are estimated to be in the thousands, who alleged that the imported drywall caused problems in homes ranging from corrosion of wiring, electronics and appliances, to foul odors and ill health effects.
New Orleans-based Interior/ Exterior supplied the drywall made by Chinese manufacturersKnauf Plasterboard Tianjin Co. and Taishan Gypsum Co.to builders in Alabama, Louisiana, Mississippi and Texas, according to court documents. The drywall was used primarily in building homes throughout the U.S. Southeast during the post-Hurricane Katrina housing boom.