Homebuilder, Manufacturer Worried About Chinese Drywall in 2006

June 2, 2010

  • June 2, 2010 at 7:03 am
    DJ says:
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    Just make sure we (the public) remember WCI for now and for future. Don’t buy anything from them now or ever. Maybe companies will learn your reputation is important.
    Just an awfully bad business decision…and that is an understatement!
    They deserve to go out of business and that is unfortunate for many customers who in good faith bought houses in WCI communities…SAD for them.

  • June 2, 2010 at 12:33 pm
    Serge Strong says:
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    WCI and Banner will soon be filing if not allready!

    Is’nt polution and professional liability excluded on all CGL policies?

  • June 2, 2010 at 12:37 pm
    Agentman says:
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    If they are a builder in Florida, they are already Bankrupt.

  • June 2, 2010 at 12:53 pm
    Susie Q says:
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    I’m not sure about the pollution exclusion in FL but I know in Louisiana it is unenforceable. In LA the CGL absolute pollution exclusion is only applicable to parties who are considered “major polluters” such as tire manufacturing plants, oil refineries and chemical companies. Contractors are not considered such so the exclusion is useless in the case of the Chinese Drywall. The biggest problem for these businesses is that the drywall is considered their work and thus tearing it out and replacing it will be at the cost of the contractor. The consequential damages such as the AC coils, hardware etc may be covered depending on the policy. Thus far there are NO documented associated health risks stemming from the drywall.

  • June 2, 2010 at 12:56 pm
    Rabbits for Sale says:
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    On a related note, the Government of China filed an advance Notice with their Supreme Judiciary that it intended to file suit against Emperor Chin, his descendants and families of contractors for using granite to build the famous Great Wall.

    In unrealeased documents, the Government claimed that the parties responsible should have realized that granite contains trace elements including asbestos and radium. Petitions will claim that over 20 million residents and approximately 300,000 tourists have been exposed to harmful amounts of known carcinogens.

    A remediation plan must address the replacement of sections of the wall with laminated bamboo, a natural and biodegradable product found in great quantities throughout the country.

    Spokesment for the builders, the American law firm of Duey Cheatham and Howe, claimed that their clients, dead for nearly a millenium, cannot be held responsible for construction materials or any work subsequently performed with outdated or outmoded methods.

    The government said that people already dead might not be subject to typical criminal punishment, but rather that their descendants could be dealt with in typical modern fashions including being dropped in boiling sesame oil.

  • June 2, 2010 at 1:54 am
    smartypants says:
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    Very creative, funny and revealing about how lawsuits can be framed, so that the ridiculous appears credible and the incredible can proceed as legitimate. It’s about time we had a good laugh on IJ. thanks!

  • June 2, 2010 at 1:56 am
    Inspector says:
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    As someone that is close to this issue, this means a world of hurt for WCI and the materials broker.

    Even though WCI Florida has already filed bankruptcy, they have put together a fund for drywall mitigation. Unfortunately for the homeowners, they must sign a Hold Harmless in order for WCI to pay for the mitigation costs.

    The larger problem is that WCI knew this was a problem in 2006 but didn’t do anything [go public] until 2009.

    Complaints about the homes in South Florida started late in 2008, WCI started sending in company inspectors early 2009. Even with confirmation of the tainted product, refused to release the results of the inspections to the homeowners. It wasn’t until attorneys filed to have the mitigation costs included in WCI’s bankruptcy case as a primary debt by vendor did WCI place funds in a mitigation account.

    How this will play out…it’s just gonna get uglier than it already is.

  • June 3, 2010 at 1:44 am
    M. Prankster says:
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    Let’s see, the mfgr., distr. and importer all had a feeling something was rotten in Denmark and they shipped the product anyway! These people have the morals of an alley cat.



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