Builder facing Chinese drywall suits files bankruptcy
By NIRVI SHAH
nshah@MiamiHerald.com
A South Florida developer that is the target of many Chinese drywall lawsuits has filed for Chapter 7 bankruptcy protection.
South Kendall Construction Co. built hundreds of homes in South Florida, but many in recent years were built with the imported wall board that many believe is the cause of bad smells, corrosion and breathing problems for homeowners.
They include Homestead homeowners Jason and Melissa Harrell, who filed suit last March. Their case is expected to go to trial in June.
Miami attorney David Samole, who is representing the company, could not be reached late Thursday.
Victor Diaz, one of the Harrells' attorneys, said he plans to file a motion that would lift the automatic hold on proceedings against the company because of Wednesday's bankruptcy filing. The case against other parties in their suit, including Palm Holdings, Keys Gate Realty and Banner Supply, won't be affected by South Kendall's bankruptcy filing.
Other Chinese drywall lawsuits also target companies that have declared bankruptcy, including WCI Communities. The fate of that litigation isn't yet known. WCI set aside several million dollars to address homeowners' claims, but the sum is far less than the amount homeowners want.
Diaz said bankruptcy could be beneficial for homeowners who have sued South Kendall.
``It may present an opportunity to speed the resolution of the claims,'' he said.
Court records show the company grossed about $4.8 million in 2008 and about $1.2 million through November 2009, when it closed down.
Company owner Patrick Gleber also owns Miami's Tobacco Road restaurant and bar.
Friday, February 26, 2010
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4 comments:
What? and no one has thought to take Patrick Gleber's pasport at this point? He is a flight risk, and he needs to face up to what he knowingly did.
I hope Argentina has extradition laws for their country men.
Who would install wall board knowing it reeked like rotten eggs???
Someone who has no fear of legal consequence.
I hope he never builds another house again. Good luck in the un-employment line!
The builder had no idea that the drywall was tainted. The drywall was purchased and installed by sub contractors. The real culprits here are the supplier and manufacturer. The supplier knew there was something wrong with it and said nothing to the subs. They even mixed it in with other brands on deliveries to get rid of it.
There are hundreds of builders that got stuck with this stuff. The ones that you should be upset with are the insurance companies that are not paying out and would rather fight it out in court. Even though the buiders had the proper insurance they are all being told that they are not covered.
There are many more homes with this stuff than just Keys Gate. Most of the developers with it have closed their doors already. This is going to become a huge legal mess and the only ones that will come out on top are the attorneys. JMHO
regardless of whether they are the only ones who built houses with chinese drywall... their construction is shoddy at best. My house has more problems than I cann count, and when i look at my neighbors, they have the same. no wonder the price was so reasonable!
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