Judge Rules Drywall Claims Can't Proceed Outside Chapter 11 Case

FORT LAUDERDALE, Fla. - Plaintiffs who sued a bankrupt housing developer for damages related to Chinese drywall may not pursue their claims outside of the Chapter 11 reorganization proceedings, a federal bankruptcy judge has ruled. In re: Tousa Inc., et al., No. 08-10928 (Fla. Bankr., S.D. Fla.).

In a Sept. 23 order, U.S. Bankruptcy Judge John K. Olson of the Southern District of Florida denied a motion by Chinese drywall claimants who sought relief from an automatic stay entered in the Chapter 11 case of Tousa Inc.

Tousa is a defendant in two Chinese drywall claims pending in Florida's Lee …