Banks owning homes in foreclosure refuse to join Fla. Chinese drywall class-action case

Banks not participating in Fla. drywall case

MIAMI — At least four banks that own some of the Florida homes containing faulty Chinese drywall are refusing to join a class-action lawsuit brought by other homeowners.

A Miami-Dade County judge has set a hearing Friday on whether to extend the time frame for banks to join the case. Attorney Victor Diaz says at least four banks that own contaminated homes through foreclosures have ignored requests to join the case, the first class-action Chinese drywall case headed to trial in the country.

Diaz says the banks’ refusal to take part could limit damages paid out. The banks could lose the right to receive any damages.

Chinese drywall installed in thousands of homes in Florida and elsewhere has caused problems ranging from a foul odor to corrosion of pipes and wiring.