 Source (www.cmht.com/cwNCEIFS4.htm)
Gary K. Shipman, co-lead counsel for the class of North Carolina homeowners, and Steven W. Outzs, attorney for Parex, Inc., a manufacturer of EIFS (Exterior Insulation and Finish Systems), announced on Thursday October 7, 1999, that a tentative settlement of the statewide North Carolina class action lawsuit against Parex had been reached. The owners of homes clad with EIFS, sometimes known as synthetic stucco, filed the class action against Parex and other manufacturers of EIFS in 1996, alleging that the product was defective and caused moisture entrapment and rot in the walls of their homes. Parex has denied that its product is defective. The tentative settlement was reached in early September, but an announcement was delayed because of the trial which had been pending against Dryvit Systems, Inc. which was settled on September 28, 1999.
"We believe this settlement will provide much needed relief for North Carolina homeowners who have spent thousands of dollars to repair their homes, which represents the largest single investment made by most families," said Shipman. "While Parex admits no liability by virtue of this settlement, the company is glad to be in a position to put this litigation behind them," according to Outzs.
The settlement announced by the parties is tentative and has not yet been submitted for approval to Judge Ben F. Tennille. Judge Tennille is the Superior Court Judge appointed to head the North Carolina Business Court, a special court created to handle complex cases involving businesses and commercial issues. The tentative settlement provides that a homeowner will recover Six Dollars ($6.00) for each square foot of EIFS manufactured by Parex which is on their home. To qualify for payment, a homeowner must show that there are elevated moisture levels behind the EIFS. "Based on our experience with the Senergy settlement (approved in September 1998), we believe that almost all Parex homeowners will qualify for payment under this settlement," Shipman says. The payments will be made directly to homeowners, without reduction for fees or the costs incurred by class counsel.
The parties have agreed they will move for formal approval of the settlement by no later than November 1, 1999. After the settlement is submitted to Judge Tennille for review, a hearing on final approval will be set. Before the final approval hearing is held, notice of the proposed settlement will be given by advertisements and by mail to known EIFS homeowners. Although no firm date for final approval can be set at this time, the parties expect that a hearing on final approval will take place in early 2000. "If Judge Tennille finds the terms of the settlement to be fair and reasonable, we would anticipate that payments to homeowners would occur shortly after final approval," according to Shipman.
Until the proposed settlement agreement is submitted to Judge Tennille, the parties are precluded from commenting further on the settlement. Once the settlement documents are finalized and submitted to the Court, they will be posted on the Internet for review by the public.
For additional information on this case, or for questions about EIFS, please complete the EIFS Questionnaire or contact Gary Mason or Stephanie Hess at (202) 408-4600. |