For many years, the attorneys of Colson Hicks Eidson have been following cases involving defective drywall products manufactured in China. During those years, many people have managed to receive compensation for the damage caused by these defective products but some Chinese drywall victims are still waiting for compensation.
What Is Causing The Delay?
In the most recent class action case, a judge is considering dropping several defendants over concerns that they may be shielded from the damages caused by the defective products. The plaintiffs in this case come from Virginia, Texas, Alabama, Mississippi, Louisiana and Florida, and they are claiming total damages of more than $1 billion. However, the companies being sued are calling foul.
How Are These Companies Avoiding Responsibility?
These companies claim that the plaintiffs have, “sued everyone under the sun, all but explicitly invoking the bogeyman of ‘China, Inc.,’ they have sued not just the companies alleged to have engaged in wrongdoing, but also companies that merely invested in those principal defendants.”
Some of these companies are also state-owned by China, which makes suing them even more complex, but the Foreign Sovereign Immunities Act provides exemptions for state immunity in civil cases involving commercial activity. This should provide protections for the Chinese drywall victims but only time will tell.
Responses to the motion to dismiss these defendants are due October 27, but there could be even more delays on the horizon since some of the Chinese companies haven’t accepted court servings. Diplomatic channels are now being explored.
Colson Hicks Eidson—Injury Attorneys