As a result of the Bay Point decision, Dryvit decided to enter into a national class action settlement (although they will deny it was as a result of this decision). It is a rotten settlement for those people who live in any State where they still have a viable claim against the manufacturer. Unfortunately, a number of States, like Virginia for example, essentially do not allow direct claims against a manufacturer due to the economic loss rule. This rule in essence does not allow a homeowner to sue a manufacturer unless a contractual relationship exists (i.e. an express warranty was issued, etc.). Plus, a number of States have short statutes of limitations, i.e. six years. Thus, in these States, where a direct claim is not allowed, or the statute of limitations has lapsed, the class settlement is better than nothing. A warranty will be provided and repairs made. However, if you are within a State that allows direct claims against a manufacturer and the statute of limitations has not lapsed, it is critically important that you opt out before the deadline of September 3, 2002. If you do not send in the exclusion form by that date, you will be deemed to be a member of the class, subject to final Court approval in October, 2002. Again, we have posted on this site the settlement documents.

Finally, toxic mold continues to be an exploding problem with EIFS clad structures. I will provide more information on this topic in a later column. There is a new web site called www.toxicmoldlegalnetwork.com for persons experiencing mold problems as a result of water intrusion.