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There’s an intruder in your house.

Sneaking in as soon as the walls went up during the construction process, this intruder has been concealed by insulation and reported by air conditioning breakdowns and faulty electrical outlets. Corroded wiring and a distinct sulfur smell in the air? Check for Chinese drywall, the alleged culprit in at least 12 class action suits in 33 states filed against builders, suppliers and manufacturers since late last year.

It’s unclear how many Louisiana residents have been affected by Chinese drywall, says Ray Kothe of Kothe Contracting and Construction Management and chairman of the National Association of Builders Chinese Drywall Taskforce. He had heard from a handful of Baton Rouge residents, but most homeowners that have been affected are in New Orleans and on the Northshore of Lake Pontchartrain.

But Louisiana homeowners with Chinese drywall might have problems proving their case without a federal- or state-sponsored measure to assume burden of proof, says David Nelson, a partner with Kean Miller who specializes in construction litigation. One such measure, authored by Sen. Julie Quinn, a Metairie Republican, and dropped during the legislative session, would have allowed homeowners to sue builders, suppliers and manufacturers for any damages related to Chinese drywall, including both replacement of drywall in the home and health-care issues that might develop.

“From a practical standpoint, the ability to prove those things in the absence of this bill is much more harmful because I then have the burden of proving that this sheetrock you have sold me is in fact defective,” Nelson says. “The difference this law makes is that’s already been met. I don’t have to go out and hire experts to prove your product is defective.”

The Consumer Products Safety Commission has received about 570 reports from 19 states and the District of Columbia regarding health symptoms or the corrosion of certain metal components in homes related to the presence of Chinese drywall. Consumers largely report their homes were built in 2006 or 2007, when an unprecedented increase in new construction occurred in part because of the hurricanes of 2004 and 2005.

CPSC and the Centers for Disease Control currently are developing procedures for performing air-quality tests. The Environmental Protection Agency said in May that testing a relatively small number of samples showed that Chinese drywall had much higher concentrations of sulfur and strontium than domestic drywall as well as two organic compounds found in acrylic paint.

So far, there are no answers from the federal government that tell homebuilders the scope of the problem or the best way to mitigate it.

“For people that have this problem, it’s huge, costly and a main priority,” Kothe says. “But until we get back reports from these federal agencies and a consensus is reached on identifying the problem, assessing the damage and fixing it, we’re in a holding pattern.”

Nelson says Louisiana homeowners currently have recourse under the New Home Warranty Act, which allows a homeowner to sue a builder for certain defects within five years of the home’s construction.

The problem is that the New Home Warranty Act comes with a strict timetable for what is covered under warranty based on when the lawsuit is filed and when the home was built, Nelson says. Because time of discovery is not accounted for under the law and Chinese drywall has not been immediately visible or identifiable, homeowners who miss that window of opportunity will have a much harder legal road.

“From what I’ve read, this is not something like when it rains, it comes pouring into your house and you can see the difference,” Nelson says. “This [Chinese drywall] is something where there’s a smell in the house and over time, you may notice the air-conditioning component has become corroded and black. It’s not about time of discovery.”

If the New Home Warranty Act is inapplicable, homeowners can sue the manufacturer under the Louisiana Products Liability Act, which states a lawsuit can be brought if a product is proven to be dangerous because of construction, design or the lack of a warranty. In this type of suit, Nelson says, the burden of proof would be on the homeowner.

“You have to have a strong scientific basis behind your claim of defect,” Nelson says. “Then, if you were suing the builder, you have to answer the question, is this drywall defective construction? I could see arguments for both sides.”

Homeowner Jeanette Mills built her Baton Rouge house in 2006 and began having problems with her air-conditioning unit almost immediately. A meeting between builder Fakouri Construction, unit manufacturer Maytag and local air-conditioning company Montgomery Heating & Air Conditioning Inc. at her home resulted in pointed fingers and walkouts, Mills said. Montgomery replaced the unit.

Three months ago, her drywall manufacturer told Mills that Chinese drywall had been used in every room of her home. Since then, calls to Fakouri have gone unanswered, and Mills is staying with sympathetic friends and neighbors until she can move into an apartment at the end of the month. Builder E. Jacob Fakouri failed to respond to multiple interview requests for this story.

Mills expects to eventually file a lawsuit to cover damages to her 2,200-square-foot home, which will cost an estimated $75,000 to $150,000 to gut and rewire.

“I’m paying to move into an apartment while I’m still paying a mortgage on a home I can’t live in. That and the repairs necessary to fix it are a huge financial burden,” Mills says. “I don’t know who is liable, but I do know that it isn’t me. This isn’t my fault.”

Kothe says builders and suppliers are just as much victims of Chinese drywall as the homeowners, and lawsuits surrounding the issue will eventually fall at the feet of drywall manufacturer Knauf Gips, a German company, and its Chinese affiliates.

“These builders and suppliers were unaware of this faulty drywall. They are victims too,” Kothe says. “I can’t sit here and tell you who’s liable. That’s for the courts to decide.”

QUESTIONS AND ANSWERS

Q: How can you tell if your home has problem drywall?

The Consumer Product Safety Commission recommends homeowners worried about Chinese drywall check for a persistent rotten egg odor; respiratory or other symptoms alleviated by leaving a building and worsened on return; blackened and corroded metal, including copper, nickel, silver and/or stainless steel; premature failures of central air-conditioning evaporator coils; blinking lights or power failures, arcing or sparking, intermittent operation or failure of appliances such as refrigerators and dishwashers and electronic devices such as televisions, computers and video-game systems.

Q: What are the health symptoms and risks?

The most frequently reported symptoms are irritated and itchy eyes and skin, difficulty in breathing, persistent cough, bloody noses, runny noses, recurrent headaches, sinus infections and asthma attacks. Since many consumers report that their symptoms lessen or go away when they are away from their home, but return upon re-entry, it appears that these symptoms are short-term and related to something within the home.

Q: What are the potential electrical or fire hazards?

Consumers should generally watch for circuit breakers that need resetting frequently without any apparent cause; lights that dim often without any specific causes; bright flashes or showers of sparks anywhere in the electrical system; unusual sounds from electrical system devices; overheating of switch plates, dimmer switches, receptacle outlet covers, cords and plugs; strong fumes from overheating plastic or electrical insulation materials; and any electrical shocks. Multiple symptoms would be a stronger indication of problems.

Q: What should you do if you think your house has problem drywall?

CPSC recommends four steps. First, consult your physician as soon as possible if you are suffering from the health symptoms described as common to the reports of exposure to problem drywall. Second, contact your state and local authorities to report your concerns and receive direction on help or resources. Third, report your concerns to the CPSC at its Web site. Fourth, consider contacting your insurance company and homebuilder to report your concerns.

SOURCE: Consumer Products Safety Commission