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South Carolina Attorneys at Law
clay.olson@olsonfirm.com
843-654-1022
A DISCUSSION ON INSURANCE COVERAGE FOR CHINESE DRYWALL CLAIMS
C. CLAY OLSON
Chinese Drywall is becoming a household name, referring to certain drywall products
manufactured in China and imported into the US between 2004 and 2008. A relatively new trend in the
construction defect sector of the law, consumer complaints begin surfacing during the years 2007 and
2008. The consumer complaints originated in Florida, causing many to speculate that the drywall might
be the result of a deficit in availability of traditional product due to the millions of repairs elicited by the
hurricane seasons which plagued the country in 2003, 2004, and 2005. As complaints poured in from
Louisiana and Texas, the theory on the products origin became widely accepted.
From a property damage perspective, most consumers complained that strange, sulfur-like odors
were coming from certain areas of the home. In addition, preliminarily studies suggest that the subject
drywall emits a sulfur compound responsible for the corroding of electrical wiring, HVAC components,
and certain household appliances in those structures that have been restored or rebuilt with Chinese-
manufactured drywall. While the cause of these problems has yet to be fully determined, the drywall at
issue appears to emit gases such as carbon disulfide, carbonyl sulfide, hydrogen sulfide, and diethyl
sulfide. While certain physical maladies have been reported by some homeowners, this discussion will
not focus on that aspect of the controversy.
Several lawsuits have been filed on behalf of consumers. The suits cite studies performed by
ENVIRON, a consulting firm retained during initial litigation, as well as public health studies which have
been produced at both state and federal levels. Litigation involving the use of Chinese drywall alleges
that it is defective because it smells like “rotten egg” and emits a variety of harmful toxins that can
corrode