Judge Fallon said KTP and the plaintiffs had agreed that remediation was necessary, but disagreed on the scope and costs of remediation.

He ruled yesterday that in addition to removing the problem drywall, the entire electrical system, all copper and silver plumbing components, the HVAC system, affected appliances and consumer electronics, and certain non-electronic personal property would have to be replaced.

The sum awarded covers remediation, personal property, recurring alternative living expenses, non-recurring alternative living expenses, pre-trial repair costs and post-trial repair costs.

The decision came a day after the Louisiana State Senate passed legislation to prevent insurers from cancelling or non-renewing homeowners polices and policies for commercial properties due to the presence of Chinese drywall (see article http://edit.property-casualty.com/News/2010/4/Pages/La-Moves-To-Stop-Home-Policy-Cancellations-For-Chinese-Drywall-.aspx).

State Senator Julie Quinn, sponsor of the legislation, said while the decision does not affect her bill, she sees it as a positive step for homeowners and for insurers. She said the more damage that is paid for by manufacturers, the less pressure there will be on insurers.

Eric M. Goldberg, associate general counsel for the American Insurance Association (AIA), said getting KTP to pay up may be difficult since it is a Chinese company, and it would be more effective if solutions for the Chinese drywall problems could be worked out between the U.S. and Chinese governments.

Earlier this month, Judge Fallon awarded $2.6 million in damages and repair costs to seven Virginia families that sued Chinese drywall manufacturer Taishan Gypsum Co., Ltd. (http://www.property-casualty.com/News/2010/4/Pages/Chinese-Drywall-Maker-Owes-7-Families-26-M-Judge-Rules.aspx?k=Taishan).