Knauf Off Hook for Drywall Fixes for Some Later Home Buyers

Knauf Gips KG doesn’t have to pay out Chinese drywall settlement funds to reimburse cleanups at 16 properties purchased after 2011.

Most of the owners purchased their properties after an initial settlement, and are covered by a second settlement that expects buyers to have made a reasonable inquiry about drywall, the U.S. District Court for the Eastern District of Louisiana ruled.

They failed to inquire about presence of contaminated drywall when they purchased properties, failed to preserve evidence, or both, according to the court, which is overseeing consolidated drywall litigation.

The result shows that drywall supplier Knauf and its Chinese ...