The wall street journal reports:

A federal judge in New Orleans has signed off on a key settlement in the Chinese drywall saga, an agreement some say could provide a template for the resolution of tens of thousands of homeowner claims across 39 states.

The agreement is between about homeowners and importers, manufacturers and distributors of Knauf Plasterboard Tianjin drywall, alleged to emit sulfur fumes that corrode electrical wiring and metal pipes.

Knauf Plasterboard Tianjin, along with suppliers and insurers, agreed to remove and replace the company's drywall, as well as all the electrical wiring, gas tubing and appliances from 300 homes in four states.

They also agreed to pay relocation expenses while the houses, in Alabama, Mississippi, Louisiana and Florida, are repaired. The cost of fixing the houses, expected to take several months, is estimated from $40 to $80 per square foot per home. At $60 per square foot for a 2,500 square-foot home, the cost would be about $150,000.

Read full article at the wall street journal

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