February 2003
By Dan Bryson

So many rotten EIFS houses, so little time (from a statute of limitations perspective). I have been chastised for not being more prompt in discussing the latest in this litigation. If you are reading this article, the latest involves the Dryvit Class Action settlement. It was signed by the judge. The settlement morphed from a silly repair protocol to straight cash. In a nutshell, it's $7.00 per exterior square foot of EIFS; however there are variations that impact this payment. By comparison, when Dryvit settled in North Carolina the payment was $6.00 per square foot. Under breaking news you can go to the full settlement documents.

Even at $7.00 per square foot, the settlement is a rip off. For example, it's not uncommon for total repair costs on a 3000 square foot house to be approximately $75,000. Under the settlement agreement, Dryvit would pay roughly $15,000 - $20,000, well short of what is needed, and very short if there is mold contamination.

For those who do not know, Dryvit got a defense verdict on a case in Modesto, California (Columbine Place v. 605 Standiford Place, et al). You can go to Dryvit's website for its spin on the trial. One of our paralegals assisted, and in a nutshell it only rains approximately 12 inches per year in Modesto - pretty dry. Even EIFS will work in the desert. In addition, it appears the judge allowed one of Dryvit's hired guns, Kenneth Lies, to opine about many other building with different claddings that have similar water intrusion problems. This type of evidence is highly prejudicial to plaintiffs. You can have bad rot with any type of cladding if you screw up the installation enough. The problem with EIFS is that you always have rot problems with it!

By the way, I encourage everyone involved in this litigation to subscribe to Walls & Ceilings, the trade journal for the drywall industry including EIFS (we have subscribed for years and have all the back issues). The cover article is "EIFS as Brick." The article talks about the latest look of EIFS is to look like brick! It shows pictures of little stickers for mortar joints. Talk about a ridiculous idea. Why not just use brick? Because that would require a builder doing a good job and good materials that are more expensive. There is also an article reporting the results of an alleged poll of general contractors and their opinions regarding EIFS. In essence the poll reports that most general contractor like EIFS, find it easy to install, and that any problems are due to installation. Bull. I have deposed and spoken to literally hundreds of general contractors over the last 8 years. Most hate the product. The proof is in the pudding. They should have asked how many of the contractors polled still use barrier EIFS. I bet the number would be very few.

We often partner with attorneys in other States and welcome the opportunity to share our collective knowledge about this dispute.