Exchange Database
US judge holds Chinese firm in contempt over drywall
US Judge faults China-based drywall company for failing to appear in court for examination and imposes $55,000 in fines. Taishan Gypsum Co Ltd was fined $55,000 in penalties for refusing to participate in court proceedings over allegations that its product damaged homes where it was used. A judge with the US District Court for the Eastern District of Louisiana found Taishan Gypsum Co Ltd in contempt of the court, ruling that the company cannot conduct business in the US until it participates in litigation. The defective drywall affected about 12,000 to 20,000 homes and businesses in the states and were sold to homeowners between 2005 and 2008
Outcomes:
Taishan not only failed to appear in court, but it had "refused to appear" for examination. The company was ordered to pay $15,000 in attorney's fees and $40,000 in penalties, and if it fails to cease conducting business in the US, will have to pay 25 percent of profits earned.The judge also ordered for the contempt to be forwarded to the US secretary of Commerce, chair of the US Senate Committee on Commerce, Science, and Transportation, and the US attorney general so that these officials are aware of the seriousness of the situation, and for any appropriate action they may see fit.
Government?:
No
Type of Exchange:
business
civic
Partners:
US District Court
Taishan Gypsum Co Ltd
Participants (Types):
US District Judge Eldon Fallon, Taishan Gypsum executives, Arnold Levin- attorney for the plaintiffs
Exchange Date:
Thursday, July 24, 2014
Continuing:
No
Location:
Louisiana, United States
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