How Are Chinese Drywall Litigation Cases and TREC SoP's Tied Together In Texas?
No one is suggesting home inspectors be mandated to inspect or examine the actual drywall or determine its origin. TREC does not require inspection specifically for Chinese drywall, therefore, some inspectors believe they need not be concerned.
- SoP requires the inspector to report the presence of and approximate average depth of attic insulation and thickness of vertical insulation, when visible. (Why not take a few seconds to look under the attic insulation for the manufacturer’s name?)
- SoP requires inspectors to inspect and report deficiencies in service panel corrosion, condition of the wiring, overcurrent devices, circuits, circuit interrupters, branch circuit conductors, smoke alarms, damaged receptacles, damaged switches, evidence of arcing, deficiencies in wiring, wiring terminations, junctions, junction boxes, devices and fixtures, heating deficiencies in controls and operating components, heating elements, switches, thermostats, condition of conductors, scale buildup, cooling system refrigerant pipe, evaporator or condensing coils, damaged casing coils, deficiencies in the condition of the fins, thermostats, deficiencies in electrical wiring or junction boxes, deficiencies in water supply lines, gas distribution systems, water heater corroded fittings and valves, gas connector materials and connections, including appliances.
- All of the above items can show the effects of out-gassing. Several home inspectors did not realize what they found until they observed anomalies in their photos while preparing their report. The class is designed to aid inspectors in recognizing the effects during their normal home inspection and what/when conditions should be reported to the inspector’s client. Some inspectors may take the opportunity to further expand their inspection services for additional fees. And TREC CE APPROVED 16 HOURS.
- “The corrosion damage resulting from the sulfur compound emissions from the Chinese drywall may constitute ‘direct physical loss’ both to the electrical and HVAC systems in the home, as well as the wiring and personal property such as appliances and electronics. ‘The systems were initially in an undamaged state, but due to exposure to the emissions from the drywall, they were changed to an unsatisfactory and damaged state under Texas law.’ Trinity Industries v. Insurance Co. of North America, supra.” Attorneys, Patrick J. Wielinski and Lauren C. Hornsby, Cokinso, Bosien & Young. Arlington, TX. – State Bar of Texas 7th Annual Advanced Insurance Law Course, April 8-9, 2010 – Dallas. http://www.cbylaw.com/filebin/files/wielinski/pjw-Chinese_Drywall.pdf
- “United Technologies v. American Home Assurance Co. Here the corrosion of the electrical wiring, switches, HVAC, appliances, etc. due to exposure to the off-gassing of the Chinese drywall is due to an external force, that is the sulfur compounds. As such, it appears that a corrosion exclusion will likely not apply.” Attorneys, Patrick J. Wielinski and Lauren C. Hornsby, Cokinso, Bosien & Young. Arlington, TX. – State Bar of Texas 7th Annual Advanced Insurance Law Course, April 8-9, 2010 – Dallas. http://www.cbylaw.com/filebin/files/wielinski/pjw-Chinese_Drywall.pdf
Six months ago, this class was first contemplated, for education of inspectors (and others) on the effects of Chinese drywall, and risk management to minimize claims, costing $59 per s/f of the home in damages, thus keeping insurance premiums low. Many policies exclude Chinese drywall, leaving the inspector completely bare.
April 8, 2010, State Bar of Texas 7th Annual Advanced Insurance Law Course - Texas courts and attorneys began to address case law for corrosion damage to the electrical wiring, switches, and HVAC systems in the home, as well as the personal property such as appliances and electronics, etc. due to exposure to the off-gassing of the Chinese drywall.
A national home builder acknowledged in its latest SEC 10-Q filing (for the quarterly period ended May 31, 2011) , that tainted corrosive “Chinese” drywall is an industry-wide problem. We quote from their filing (page 27) (even though we caution against the use of "defective" in this context):
"Defective Chinese drywall is an industry-wide issue as other homebuilders have publicly disclosed that they have experienced similar issues with defective Chinese drywall."
National Association of Home Builders Published Plan of Attack for Chinese Drywall March 16, 2011. Reports of toxic drywall have been levied in 42 of the nation’s 50 states. States heavily-affected include Florida, Texas, Alabama, Louisiana, Mississippi, and Virginia. Much of the drywall has proven to be noxiously defective, emitting sulfuric gasses that are harmful to humans, and that corrode metal components within the walls, including wiring and HVAC components. NAHB's Chinese Drywall Task Force’s mission was to identify a permanent solution to problems with drywall emitting or off-gassing corrosive compounds, which can lead to blackening of copper electrical wiring and air conditioning evaporator coils and can cause mechanical, electrical and electronic failures. The report, authored by the NAHB’s Chinese Drywall Task Force and released March 16th, is the culmination of over a year of research and investigation by the group, and outlines a “plan of attack” for addressing problematic drywall in homes.
“Remediation includes removal and restoring/replacing of all drywall products, cabinetry and joinery, carpeting, all low-voltage wiring, HVAC coils and ductwork, plumbing fixtures and piping, electrical distribution components, including receptacles, switches and circuit breakers and fire-suppression sprinkler systems and fire safety alarm devices, including smoke and carbon monoxide alarms and gas service piping from a home.” from NAHB's Chinese Drywall Task Force Report
Learn who the builders are and how to identify the problem:
Tainted Corrosive “Chinese” Drywall
Larry Battarbee of Battarbee Insurance
has joined together with RETS(Real Estate Training Systems #700 / #580) and Foreman and Associates, Inc.to bring you the latest and most up-to-date
information on Tainted Corrosive (Chinese) Drywall presence in Texas.
This two (2) day Continuing Education course for Home Inspectors (16 hours), Appraisers (16 hours), Plumbers, Electricians, Air Conditioning and Refrigeration Contractors (6 hours), Realtors (16 hours), Title Companies, Appraisers (16 hours), and Municipal Inspectors, will be held
September 24-25, 2011
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Expert Answers To Your Questions
What is Tainted/Corrosive “Chinese” Drywall?
How to Identify A Structure That Has It?
When was Chinese Drywall Installed?
Why Should I Care?
How can it affect the client?
What is the repair or remediation?
How Do I Inspect For It?
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Seminar Topics
DAY 1 (8 Hours)
Insurance: Pollution Exclusions
ASTM Standards Judge Fallon's Multi District Litigation
Have Your E & O Insurance Policy Reviewed
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SPEAKERS
Michael S. Foreman - Principal, Foreman and Associates, Inc., Forensic Construction Consultants, Nationally known expert in Building Envelope Issues and Tainted Corrosive Drywall Remediation, Identification and Treatment.
Michael Shaw – Graduate studies at MIT, Worked under Nobel laureate Willard Libby (Carbon 14 dating), Writer for Health News Digest, Michael has written thousands of articles covering numerous topics, involved in the very start by writing numerous articles covering all sides of the issues that surround many different topics pertaining to Tainted Corrosive Drywall.
Daniel Reid - Principal, Intuitive Environmental Solutions, Hygienist & Mycologist, Known as an expert in indoor air quality and microbial investigation and solutions. Involved with analysis or sample preservation in over 1000 documented TCDW structures.
DAY 2 (8 Hours)
CPSC Reports and Other Report Findings
Tainted Corrosive Drywall Remediation Guidelines Overview
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Non Destructive Examination “NDE” Analysis and Diagnosis Certification Class can be taken after course completion. Certification course is TBA.
Seminar attendance is required to be eligible for the hands-on Certification Course
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- Louisiana Real Estate Appraisers Board (LREAB) – 16 hours ACE (APPROVED)
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Times: 8 am to 5 pm
Location:
If you are going to book a hotel room at the Embassy Suites, please use (GROUP CODE - "TRE") and inform them you are with Real Estate Training Systems to get your discounted room rate.
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Hotel: 512-392-6450 (GROUP CODE – “TRE” )
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