Date: 06-18-2010

Case Style: Armin and Lisa Seifart v. Banner Supply Co.

Case Number: 2009-038887-CA-42

Judge: Joseph Farina

Court: Miami-Dade County, Florida

Plaintiff's Attorney: Ervin Gonzalez, Colson Hicks Edison, Coral Gables, Florida

Defendant's Attorney: Todd Ehrenreich, Weinberg Wheeler, Miami, Florida

Description: This case is significant because it was the first jury trial case in the United State regarding defective Chinese manufactured drywall. It also only involved only the supplier of the drywall, not the manufacturer, installer, or builder of the home.

Plaintiffs’ claims were for negligence, strict liability, Florida Unfair & Deceptive Trade Practices Act, and private nuisance. Plaintiffs claimed that Defendant provided defective drywall that off-gassed sulfur compounds making the home inhabitable, forcing Plaintiffs to gut their home completely, rebuild it, and caused possible health problems to them and their children. Plaintiffs’ claimed damages for stigma/diminution in value to their home due to the permanent requirement that they have to disclose that their home had Chinese drywall. Plaintiffs also claimed damages for loss of enjoyment of their home. Plaintiffs did not make a personal injury claim.

As to liability, Plaintiffs provided evidence that Banner Supply Co. knew of the problems with the Chinese drywall before it was sold for installation in Plaintiffs’ home and rather than disclose the problems, entered into a confidential settlement agreement with the manufacturer of the Chinese drywall.

Defendants admitted that the drywall in question was defective, but that the manufacturer, Knauf, was liable for Plaintiffs’ damages because Knauf manufactured the defective drywall. Banner Supply Co. also argued that their knowledge of the Chinese drywall was limited to only a few isolated problems and that Knauf assured Banner Supply Co. that the drywall was safe.

Outcome: Plaintiffs' verdict for $2.4 million incluidng $1.6 million for loss of enjoyment of life.

Plaintiff's Experts: Dean A. Rutila, P.E., Dr. Lori Streit, Don Galler, Michael Krantz, Lee Waronker.

Defendant's Experts: Robert Gallaher.

Comments: Editor's Note: This was the first Chinese drywall jury trial case which will, in part, set the value of thousands of other similar cases in this national litigation.