After 18 months of more than 50 worldwide negotiations in New Orleans, New York, Philadelphia and Miami, as well as Frankfurt, Germany, the Honorable Judge Eldon E. Fallon of the U.S. Eastern District Court, New Orleans, Louisiana, announced that the Plaintiffs’ Steering Committee and Knauf Plasterboard Tianjin (KPT) Defendants proposed a class action settlement that would resolve potentially thousands of Chinese drywall claims.
The proposed settlement is subject to court approval and the settlement value is estimated to be between $800 million to $1 billion, with approximately $160 million paid in attorney’s fees. The Law Offices of Wolf & Pravato, P.A. represent clients with approximately 395 homes that were affected by Chinese drywall.
Judge Eldon E. Fallon, United States District Court Judge for the United States District Court, Eastern District of Louisiana, presiding over MDL 2047 In re: Chinese-Manufactured Drywall Products Liability Litigation, advises that the Plaintiffs’ Steering Committee (PSC) and Knauf Plasterboard Tianjin (KPT) jointly announced a landmark global class action settlement that will help thousands of American homeowners affected by problems with KPT Chinese drywall on December 15, 2011. This settlement effectively signals an end to the ongoing litigation and class action lawsuits against KPT and certain of its affiliated companies.
The agreement creates 2 funds from which plaintiffs may recover: the Remediation Fund and the Other Loss Fund. The Remediation Fund, which is uncapped, will pay costs of the three types of relief the class members can choose from: (i) remediation by Moss & Associates, the contractor for the remediation program established by the parties in October 2010; (ii) self-remediation by a qualified contractor of the homeowner’s choosing; and (iii) a cash out option, in which the homeowner can elect to receive a cash payment.
The Other Loss Fund, which is capped, will reimburse for certain provable economic loss and provide a review process for individuals who believe they have bodily injury claims. In addition, attorneys’ fees and costs will be paid.