‘Known or Should Have Known’ Standard to Govern Claims Against Drywall Seller

NEW ORLEANS — The judge presiding over an upcoming trial involving a supplier’s liability for damage caused by Chinese drywall has held that a “known or should have known” standard will be used to determine whether the supplier was a good faith seller of the product.

Judge Eldon E. Fallon of the U.S. District Court for the Eastern District of Louisiana said Nov. 21 that his decision to apply the standard in the bellwether trial involving Interior Exterior Building Supply’s (InEx) potential liability for damage caused by Chinese drywall conforms with the “great weight of authority” from courts within the …