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For Immediate Release : February 25, 2010

Contact: Jennifer Fuson
American Association for Justice
Jennifer.Fuson@justice.org
202-965-3500 x8609

Foreign Manufacturers Account for 83% of 2009 Recalls

Bill Introduced in U.S. House to ensure foreign manufacturers held to same standards as U.S. companies

Washington, DC â?? Eighty-three percent (312) of the 377 recalls announced by the Consumer Product Safety Commission (CPSC) in 2009 were from foreign manufacturers, according to an analysis by the American Association for Justice (AAJ). 

Despite this fact, foreign manufacturers are able to skirt the law and export billions of dollars of products to the U.S. without facing the same legal accountability for product defects that U.S. manufacturers face, even when their products injure or kill Americans.

Today, U.S. Representative Betty Sutton (D-OH), Michael Turner (R-OH), Linda Sanchez (D-CA), Zoe Lofgren (D-CA) introduced the bipartisan Foreign Manufacturers Legal Accountability Act, legislation that would make it easier for U.S. consumers to hold foreign manufacturers of defective products accountable.

â??Foreign corporations shouldnâ??t be able to export their products to our country without following our laws too,â?? said American Association for Justice President Anthony Tarricone.  â??Both American businesses and consumers suffer when a foreign manufacturer cannot be held accountable through our legal system.  It is critical we pass this bill so foreign manufacturers are held to the same standards and justice system as U.S. manufacturers.â?? 

The 2009 CPSC data is similar to the 2008 figures, when 84% (329) of recalls were from foreign manufacturers out of 392 total recalls for the year.

Currently, bringing a case against a foreign manufacturer requires serving legal notice on the company in their country.  This often means translating the papers into the language of the native country and tracking down the companiesâ?? foreign address, adding time and thousands of dollars in expense to the legal process.

One example of foreign manufacturers escaping accountability involves Taishan Gypsum, a Chinese manufacturer of drywall.  Over 500 million pounds of the sulfuric gas-emitting Chinese drywall was shipped to the U.S., which is now plaguing thousands of homeowners.  Taishan Gypsum, a company owned by the Chinese government, is currently being held in default for failing to respond to a putative class action brought by builders that used the companyâ??s drywall in homes.  The final default ruling is expected any day out of the U.S. District Court in New Orleans.   

The Foreign Manufacturers Legal Accountability Act does several things:

  • Requires manufacturers to have an â??agentâ?? located in at least one state where the company does business that would accept service of process for civil and regulatory claims.
  • Companies would consent to state and federal jurisdiction, holding foreign manufacturers accountable to those judicial standards.
  • The legislation covers products regulated by the Consumer Product Safety Commission (CPSC), such as childrenâ??s toys; the Food and Drug Administration (FDA), including prescription drugs and medical devices; and the Environmental Protection Agency (EPA), like pesticides.

Similar legislation has been introduced in the Senate by Senators Sheldon Whitehouse (D-RI), Jeff Sessions (R-AL), and Assistant Senate Majority Leader Dick Durbin (D-IL).

To see the full list of CPSCâ??s 20009 recalls, see http://www.justice.org/resources/Recalls_of_CPSC_2009.pdf .

To see the full list of CPSCâ??s 2008 recalls, see http://www.justice.org/resources/Recalls_of_CPSC_2008.pdf .

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As the world's largest trial bar, the American Association for Justice (formerly known as the Association of Trial Lawyers of America) works to make sure people have a fair chance to receive justice through the legal system when they are injured by the negligence or misconduct of others--even when it means taking on the most powerful corporations.  Visit http://www.justice.org.


For Immediate Release: February 17, 2010

 

Contact: Jennifer Fuson
American Association for Justice
202-965-3500 x8609

AAJ Press Room

AAJ: Drywall Manufacturers Should Register with CPSC; Have Strict Labeling Requirements

Greater CPSC Oversight Will Help Protect Consumers, Prevent Chinese Drywall Problems in Future

Washington, DC — Recent hazards associated with drywall show the need for greater labeling and registration requirements, according to comments submitted to the Consumer Product Safety Commission (CPSC) by the American Association for Justice (AAJ).  The comments are in response to the agency’s notice seeking guidance regarding identifying labels for drywall.

"Mandating a set of uniform markings on all drywall would greatly assist homeowners and investigators in isolating the source of drywall problems," according to AAJ’s submitted comments.

Drywall, especially drywall manufactured in China, has been identified by the CPSC as containing high levels of hydrogen sulfide, causing corrosion of metals in homes and contributing to numerous health-related problems.  To date, the agency has not recalled any drywall or clearly identified any specific batches of the bad drywall, making the scope of the problem difficult to identify.  The agency is now moving to establish protocols to identify homes with the corrosive drywall and determine effective remediation procedures.

AAJ’s comments request the CPSC to:

  • Require labels to include enough information so that the drywall remains easily identifiable when installed, including manufacturer name, plant name and location, date of production, and batch or lot number.
  • Ensure the location of the labels be easily accessible, including labeling both sides of the drywall.
  • Require drywall manufacturers that import drywall into the U.S. to register with the CPSC, including plant locations and the names and descriptions of products.

"There is little doubt that the previous lack of oversight over drywall has contributed to the prolonged problems thousands of homeowners are experiencing," said AAJ President Anthony Tarricone. "New guidelines will help aid in quickly identifying any problematic drywall in the future and make it easier to recall the product, if needed," added Tarricone.

As of late January, the CPSC had reported receiving over 2800 incident reports related to drywall from 37 states and the District of Columbia.

On February 19, 2010, the U.S. District Court in New Orleans will begin an evidentiary hearing to hold Taishan Gypsum, a Chinese manufacturer of drywall, in default for failing to respond to a putative class action brought by builders that used the Chinese company’s drywall in homes.  The Chinese drywall multidistrict litigation bellwether trial will begin on March 15, 2010.  

For more information on Chinese drywall, view AAJ’s timeline at http://www.justice.org/resources/Timeline_Jan_2010_update_1_27_10.pdf.


To see the CPSC’s latest report on the drywall investigation, visit http://www.cpsc.gov/info/drywall/index.html.

For a copy of the comments, please contact AAJ Communications at 202-965-3500 x8609.


 

Luckey & Mullins Joins with Other National Construction Defect Law Firms to Form Chinese Drywall Legal Network

Mississippi-based law firm helps create joint venture group with five other firms to form "Dream Team" of plaintiffs' attorneys handling defective construction litigation

Ocean Spring, Miss. (Lexis Nexis) December 11, 2009 -- Luckey & Mullins, a Gulf Coast law firm that represents plaintiffs in a wide range of personal injury, construction defect, products liability and toxic mold cases, has joined forces with five other highly regarded law firms to form the Chinese Drywall Legal Network.

This unique joint venture group is made up of a diverse team of expert attorneys with a combined 150 years of experience in handling the complex legal issues that arise in disputes involving defective construction products, such as Chinese drywall. In addition to Ocean Spring, Miss.-based Luckey & Mullins, The Chinese Drywall Legal Network includes law firms with offices in Florida, Louisiana, New Jersey, North Carolina and Washington, D.C.

In the aftermath of Hurricane Katrina in 2005, there was a serious shortage of domestic drywall needed in the construction of new housing units. In response, U.S. distributors began importing large amounts of drywall from China, which was never adequately tested or inspected. It has now been found to contain significant amounts of sulfur and sulfur-related compounds and other impurities. In addition to a variety of structural problems that these compounds can cause to a house, homeowners have also been reporting physical ailments, including coughing, irritated eyes, sneezing, sore throat, difficulty breathing, bloody noses and headaches after being exposed to the problematic Chinese drywall.

"Our team of experienced and well-respected lawyers has successfully represented thousands of homeowners in other defective construction litigation cases, often winning multimillion-dollar verdicts and settlements for our clients," said Steve Mullins, partner in Luckey & Mullins. "We are heavily involved in the multidistrict litigation Chinese drywall action in New Orleans right now and the attorneys in our network hold many key positions and are either co-chairs or members of 17 committees that have been formed to help streamline Chinese drywall cases through the courts. We are at the leading edge of this litigation and have access to the latest court decisions, experts and case strategies for helping consumers who have claims they wish to pursue."

According to Mullins, significantly more than 500 million pounds of Chinese drywall was imported into the U.S. and up to 100,000 homes, condos, and apartment units likely contain the problematic Chinese drywall right now. "We are at the tip of the iceberg right now," Mullins said, "and all we are sure of at this time is that this is the most significant construction defect problem to ever face this nation and the consequences of how we deal with it will be both far reaching and long lasting."

For more information about Luckey & Mullins, please go to www.luckeyandmullins.com or call 800.874.3175.





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