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Exploring the Issues, the Problems and the Expertise Sought
Louisiana Recovery Authority
 • Awaiting Testing Protocol
 • Awaiting State & Fed Approval
 • Only RH Recipients Approved

State & Federal Programs
 • Will Adhere to a Testing Protocol
 • Lots of Talk, Nothing Yet
‣

‣

‣

‣
Whose
 Exposed?
Suppliers
• Breach of Implied Warranty of
 Merchantability

• Breach of Implied Warranty of
 Fitness for a Particular Purpose

• Redhibition
Builders
• New Home Warranty Act

• General Warranties
 La. C.C. art 2762
 La. C.C. art 2769
Depth of Physical Damages



“
Major structural defect means any actual physical
damage to the following designated load-bearing
portions of a home caused by failure of the load-
bearing portions which affects their load-bearing
functions to the extent the home becomes
unsafe, unsanitary or otherwise unlivable.
                               La. R.S. 9:3143
Depth of Physical Damages



“
Major structural defect means any actual physical
damage to the following designated load-bearing
portions of a home caused by failure of the load-
bearing portions which affects their load-bearing
functions to the extent the home becomes
unsafe, unsanitary or otherwise unlivable.
                               La. R.S. 9:3143
Depth of Physical Damages



“
Major structural defect means any actual physical
damage to the following designated load-bearing
portions of a home caused by failure of the load-
bearing portions which affects their load-bearing
functions to the extent the home becomes
unsafe, unsanitary or otherwise unlivable.
                               La. R.S. 9:3143
Depth of Physical Damages



“
   •Foundation Systems & Footings
Major structural defect means any actual physical
   •Beams
damage to the following designated load-bearing
   •Girders home caused by failure of the load-
portions of a
   •Lintels
bearing portions which affects their load-bearing
functions to the extent the home becomes
   •Columns or otherwise unlivable.
unsafe, unsanitary
   •Walls and Partitions       La. R.S. 9:3143


   •Floor Systems
   •Roof Framing Systems
Depth of Physical Damages



“
Major structural defect means any actual physical
damage to the following designated load-bearing
portions of a home caused by failure of the load-
bearing portions which affects their load-bearing
functions to the extent the home becomes
unsafe, unsanitary or otherwise unlivable.
                               La. R.S. 9:3143
Depth of Physical Damages



“
Major structural defect means any actual physical
damage to the following designated load-bearing
portions of a home caused by failure of the load-
bearing portions which affects their load-bearing
functions to the extent the home becomes
unsafe, unsanitary or otherwise unlivable.
                               La. R.S. 9:3143
Depth of Physical Damages



“
Major structural defect means any actual physical
damage to the following designated load-bearing
portions of a home caused by failure of the load-
bearing portions which affects their load-bearing
functions to the extent the home becomes
unsafe, unsanitary or otherwise unlivable.
                               La. R.S. 9:3143
Depth of Physical Damages

•Walls = Partitions?
•Corrosion of Nails in Framing?
•Can Contamination Rub Off on Framing?
Depth of Physical Damages



“   Roof decking in a house is part of the framing
    system and serves a structural function...rotten
    decking...allowed water to leak under the
    shingles...[and] was clearly contemplated by the
    NHWA.
            Hutcherson v. Harvey Smith Construction, Inc. 7 So.3d 775 (1 Cir 2009)
Insurers
Insurers
• Pollution Exclusion
 Doerr v. Mobile Oil Corp.
Insurers
• Pollution Exclusion
 Doerr v. Mobile Oil Corp.

• Your Work Exclusion
Depth of Physical Damages

• Is Chinese Drywall Damages Caused by a
“Pollutant?”

• Is it faulty work or damage from faulty work?
Chinese Drywall:  What Are We Looking For
Chinese Drywall:  What Are We Looking For
Chinese Drywall:  What Are We Looking For
Chinese Drywall:  What Are We Looking For

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Chinese Drywall: What Are We Looking For

  • 1. Exploring the Issues, the Problems and the Expertise Sought
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. Louisiana Recovery Authority • Awaiting Testing Protocol • Awaiting State & Fed Approval • Only RH Recipients Approved State & Federal Programs • Will Adhere to a Testing Protocol • Lots of Talk, Nothing Yet
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 28.
  • 29.
  • 30.
  • 32. Suppliers • Breach of Implied Warranty of Merchantability • Breach of Implied Warranty of Fitness for a Particular Purpose • Redhibition
  • 33. Builders • New Home Warranty Act • General Warranties La. C.C. art 2762 La. C.C. art 2769
  • 34. Depth of Physical Damages “ Major structural defect means any actual physical damage to the following designated load-bearing portions of a home caused by failure of the load- bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary or otherwise unlivable. La. R.S. 9:3143
  • 35. Depth of Physical Damages “ Major structural defect means any actual physical damage to the following designated load-bearing portions of a home caused by failure of the load- bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary or otherwise unlivable. La. R.S. 9:3143
  • 36. Depth of Physical Damages “ Major structural defect means any actual physical damage to the following designated load-bearing portions of a home caused by failure of the load- bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary or otherwise unlivable. La. R.S. 9:3143
  • 37. Depth of Physical Damages “ •Foundation Systems & Footings Major structural defect means any actual physical •Beams damage to the following designated load-bearing •Girders home caused by failure of the load- portions of a •Lintels bearing portions which affects their load-bearing functions to the extent the home becomes •Columns or otherwise unlivable. unsafe, unsanitary •Walls and Partitions La. R.S. 9:3143 •Floor Systems •Roof Framing Systems
  • 38. Depth of Physical Damages “ Major structural defect means any actual physical damage to the following designated load-bearing portions of a home caused by failure of the load- bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary or otherwise unlivable. La. R.S. 9:3143
  • 39. Depth of Physical Damages “ Major structural defect means any actual physical damage to the following designated load-bearing portions of a home caused by failure of the load- bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary or otherwise unlivable. La. R.S. 9:3143
  • 40. Depth of Physical Damages “ Major structural defect means any actual physical damage to the following designated load-bearing portions of a home caused by failure of the load- bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary or otherwise unlivable. La. R.S. 9:3143
  • 41. Depth of Physical Damages •Walls = Partitions? •Corrosion of Nails in Framing? •Can Contamination Rub Off on Framing?
  • 42. Depth of Physical Damages “ Roof decking in a house is part of the framing system and serves a structural function...rotten decking...allowed water to leak under the shingles...[and] was clearly contemplated by the NHWA. Hutcherson v. Harvey Smith Construction, Inc. 7 So.3d 775 (1 Cir 2009)
  • 44. Insurers • Pollution Exclusion Doerr v. Mobile Oil Corp.
  • 45. Insurers • Pollution Exclusion Doerr v. Mobile Oil Corp. • Your Work Exclusion
  • 46. Depth of Physical Damages • Is Chinese Drywall Damages Caused by a “Pollutant?” • Is it faulty work or damage from faulty work?