Those living with Chinese Drywall in Louisiana received good news today about the Louisiana Recovery Authority’s efforts to grant them financial relief. While the news is good, the program is not complete and the funds aren’t quite ready to be distributed.

A few weeks ago, the Louisiana Recovery Authority set aside $5 million for Chinese Drywall victims in the state. That set into motion a bureaucratic process to have the funds approved for disbursement and a structure set in place to approve future payments to victims.

The first step in the process was the actual setting aside of the $5 million in funds.

The second step in the process was having the U.S. Department of Housing and Urban Development approve the idea. This second step was accomplished yesterday, December 22nd.

For those living with Chinese Drywall, it’s like an early Christmas present…but not one quite ready to be opened. A spokesperson for the LRA said it best in an interview with the New Orleans Times Picayune, when she said “This is kind of like half the equation.”

As we stated in prior posts, local, state and federal governments certainly have Chinese Drywall aid on their minds…its just a matter of how and when. This LRA program seems to be one of the most advanced in the country, insofar as planning is concerned.

But it’s the same punchline at the end of the day for victims: more waiting.

Stay tuned.

Wolfe Law Group’s own Scott Wolfe, Jr. provides the leading quote in a recent article from HousingZone.com: Homeowners Increasing Suing Local Builders. Scott gave this quote to the publication:

The best and quickest way to get the drywall out is to go after the builder, who ultimately has to live up to his warranty. If the consumer tinkers with class-action lawsuits that can drag out for months, their warranties start to expire, and their chances of getting something from the builder are slimmer.

If we’ve said it once on this blog, we’ve said it a thousand times (here, here, here, here and here).

While class action suits have their purpose, it presents real challenges to homeowners who are interested in getting the Chinese Drywall out of their property.

The class action suits have their warts, and homeowners may find a better remedy by filing a direct action against their builders, suppliers and insurers.

With every day that passes, however, deadlines are drawing closer. The one year deadline for insurance claims and torts. The 3-4 year deadline with claims in redhibition. And the 1, 2 or 5 year deadlines associated with construction warranty claims.

The worst news about the deadlines being that many, if not most of the statutory periods begin when the drywall was delivered or installed…and not when the homeowner learned of the problem.

All was quiet with regard to individual lawsuits against builders and suppliers, but recent news reports indicate that the remedy is gaining some steam.

The article from HousingZone.com is not alone. The Times Picayune recently reported that homeowners are more frequently suing builders, and Baton Rouge’s Advocate had the same analysis.

Could an avalanche of Homeowner v. Builder suits be on the horizon?

If you’re interested in learning more about bringing a suit against your builder, or your construction company is interested in bringing suit its suppliers and insurers, contact Wolfe Law Group today.

On the Chinese Drywall Blog, we’ve frequently forecasted that homeowners will begin bringing suit directly against their builders for Chinese Drywall recovery.

This morning, the New Orleans Times Picayune reported that this is beginning to happen.

The article, titled Homeowners saddled with tainted Chinese Drywall are increasingly suing local builders for damages, suggests that “Louisiana home builders have increasingly become targets of litigation.” And the article profiles a Covington, Louisiana homeowner, Eric Carter, who sued his homebuilder Sunrise Homes.

Over the next few days here on the Chinese Drywall Blog, we will specifically analyze builder liability for Chinese Drywall claims, reviewing the relevant aspects of the New Home Warranty Act and other general builder warranties.

Remember also that Wolfe Law Group’s Scott Wolfe and Doug Reiser will be presenting at a Chinese Drywall seminar in New Orleans, LA on July 31, 2009. The seminar is for attorneys, builders, engineers, homeowners and anyone else affected or interested in the crisis. Read more about the seminar, and how to attend, here.

In the meantime, here are a few posts from our blog reviewing builders’ exposure to imported drywall claims, and explaining the differences between class action litigation and ordinary litigation:

• Builders Starting To Tango with Chinese Drywall Claims
• Builders World Apart on Chinese Drywall
• 3 Reasons Why Class Actions are Bad for Homeowners
• Are Builders Getting a Free Pass on Chinese Drywall Claims? Should They?