Parker Waichman LLP

Lowe’s Offering Gift Cards in Chinese Drywall Settlement

A proposed settlement in a Chinese drywall lawsuit involving Lowe’s stores looks like it will benefit lawyers and the retailer far more than plaintiffs. Astonishingly, plaintiffs in the lawsuit would receive Lowe’s gift cards in amounts ranging from $50 to $2,000 if it is adopted. Those who can prove they’ve suffered more than $2,000 in […]

A proposed settlement in a Chinese drywall lawsuit involving Lowe’s stores looks like it will benefit lawyers and the retailer far more than plaintiffs. Astonishingly, plaintiffs in the lawsuit would receive Lowe’s gift cards in amounts ranging from $50 to $2,000 if it is adopted. Those who can prove they’ve suffered more than $2,000 in damages may also receive up to $2,500 in cash.

According to the Web site ProPublica, the class-action suit is being decided in a Georgia state court. It is not included in the multi-district litigation currently underway in federal court in New Orleans, which involves the Chinese drywall manufacturers Knauf Plasterboard Tianjin Co. Lt and Taishan Gypsum Co. Ltd., as well as thousands of homeowners, builders and suppliers.

According to ProPublica, the proposed settlement in Georgia totals $6.5 million. Attorneys who quietly negotiated the deal will receive a separate payment of $2.1 million, the report said.

Under the settlement, many plaintiffs won’t even receive full refunds for their drywall purchases, ProPublic said. For example, someone who spent $10,000 on drywall would still only qualify for a maximum of $4,500 in cash and gift cards. People who sign on to the deal would waive all legal rights to sue Lowe’s for property damage or medical claims related to the drywall.

That $4,500 won’t go far if plaintiff’s want to correctly and safely mediate their Chinese drywall-tainted homes. As we’ve reported previously, the remediation protocol handed down by US District Judge Eldon E. Fallon, who is overseeing the litigation in New Orleans, calls for plaintiffs’ homes be gutted down to the studs. The Judge also ruled that plaintiffs were entitled to damages for the cost of personal property damaged by the drywall gases, relocation costs, and loss of use and enjoyment of the home.

The US Consumer Products Safety Commission (CPSC) says the only way to repair such homes is to remove the drywall as well as electrical wiring.

Under either Judge Fallon’s or the CPSC protocol, correctly remediating a Chinese drywall home will likely cost in excess of $100,000.

According to ProPublica, attorneys involved in the New Orleans litigation have attacked the proposed Georgia settlement. They say the payments to victims are too small, the attorney fees too large and that the agreement “interferes with and erodes” the federal litigation and Judge Fallon’s own authority to deal with the wide scope of the drywall problem. They said the Lowe’s settlement could set back efforts to determine the scope of US cases and shield Lowe’s from having to disclose critical information they are seeking, according to ProPublica.

So far, about 40 plaintiffs are involved in the Lowe’s class action lawsuit. Some are also involved in the New Orleans multidistrict litigation. However, according to ProPublica, the class-action settlement would automatically apply to Lowe’s customers throughout the nation, unless they notify the Superior Court of Muscogee County, Ga. by Nov. 9 that they want to opt out. Lowe’s customers won’t be notified of the settlement or their option to opt out via mail, but rather, the retailer will use a web site, media ads and notices on store receipts to get the word out.

One attorney interviewed by ProPublica said he believes the settlement was designed to protect Lowe’s from any liability over all the drywall it has ever sold, before more homeowners can come forward.

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
Christina Morace the paralegal at Parker Waichman was professional and extremely helpful. Great job!
Vincent Gesuele
2 years ago
5 Star Reviews 150
when 911 happened i had a very bad experience with my health but now i am better, i decided to contact the law firm of Parker Waichman for assistance, they referred me to Benita Rollins regarding my case, she took charge ,very knowledgeable lady ,helped me with the case ,they are the best law firm to contact regarding any issue with any matter simply the best ever !! especially Benita Rollins, ho has helped me with my issue very Graithful for help from this lady.
Frank Dimeglio
2 years ago
5 Star Reviews 150
It was so easy working with PW, I was kept informed about everything. I was very please with the service.
Joseph Saberito
4 months ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038