 Synthetic Stucco (EIFS) Settlement Will Provide Up To $20 Million For Homeowners Nationwide
(www.cmht.com/casewatch/cases/cweifs2.htm)
May 22, 1998 [Washington, DC] - Owners of residential properties clad with Exterior and Finish System components ("EIFS") sold by Senergy, Inc. a subsidiary of Harris Specialty Chemicals, Inc. may be eligible to receive repairs of cash payments from a recently negotiated partial national class settlement.
The national class action settlement was reached April 29, 1998 and has received preliminary approval from a North Carolina Superior Court. In the settlement, Senergy has agreed to contribute up to $20 million to help repair one-and two-family homes that have sustained damage as a result of moisture intrusion through and around windows, doors and other openings, and are known to be clad with EIFS under the Senergy and ThoroWall brands.
All persons who, as of May 15, 1998, owner a one- or two- family residential dwelling or townhouse in the United Stated clad with EIFS manufactured by Senergy, Inc.'s or Thoro System Products, Inc.'s are eligible to participate in the settlement.
EIFS are multi-layered exterior wall systems consisting of a finish coat, a base coat, mesh and insulation board; all of which is mechanically or with an adhesive secured to plywood or another substrate. EIFS are similar in appearance to traditional stucco, but offer many additional benefits such as insulation value and enhanced aesthetics. The product has been used in construction in the United Sates since 1969. The class action lawsuit was filed in January 1996 by homeowners who experienced damage to water intrusion into home walls. Senergy maintains its products were not and are not defective in any way.
Senergy is the first and only manufacturer to reach a settlement in the class action lawsuit Ruff et al. v. Parex Inc. et al. filed against several manufacturers. The class action continues against the other EIFS manufacturers named as defendants in the homeowners suit: Dryvit Systems, Inc. Sto Corp., Parex Inc., W. B. Bonsal Co., Continental Stucco Products, Thomas Waterproof Coatings Co., United States Gypsum Co., and Shields Industries Inc.
"This settlement will help thousands of homeowners to repairing the damage to their homes caused by water entering behind the EIFS," said Gary E. Mason, a partner at Cohen, Milstein, Hausfeld & Toll who represented the plaintiffs in the stucco case.
Plaintiff's counsel in this action -- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting product liability class actions. The firm has offices in Washington, D.C. and Seattle and is active in major litigation pending in federal and state courts throughout the nation.
Individuals who do not wish to be part of this suit must "opt out" of the lawsuit by signing an exclusion request and sending it, postmarked no later than August 15, 1998, to EIFS Exclusion Requests, P.O. Box 26445, Raleigh, NC, 27611-6445. Individuals who believe their rights may be affected by the class action lawsuit can get a Notice of Settlement by calling 1-800-441-0282 or writing: EIFS Litigation Class Counsel P.O. Box 26445, Raleigh, NC 27611-6445. An Inspection Protocol will be available after June 15, 1998. The full text of the notice and other information can be viewed on the World Wide Web at: http://www.kinsella.com/eifs/.
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