Homeowners Reach Accord on Faulty Roofs
WASHINGTON — Homeowners and businesses have tentatively agreed on a plan to pay for replacing thousands of roofs treated with faulty fire-retardants, an attorney who negotiated the multimillion-dollar settlement said Tuesday.
About 30 insurance companies must now agree on their contributions to make the settlement final, said Kenneth Feinberg, a Washington attorney.
The total cost could be more than $100 million, said a source familiar with the out-of-court settlement who requested anonymity.
The flame-retardant chemicals in the plywood roofs reacted with normal heat from attics and caused the wood to deteriorate, leading to water leakage and other damage.
As many as 250,000 homes, mostly townhouses and condominiums in Virginia, Maryland and New Jersey, were affected.
The settlement involves more than 70 companies. Besides insurance companies, home builders, chemical treaters and plywood manufacturers have agreed to contribute to a fund.
The remaining issue is the amount that more than 30 insurance carriers will contribute, the source said.
“The idea was to develop a procedure for replacing roofs without resorting to time-consuming, costly litigation. All parties are trying to develop a mediated settlement that spreads the costs among all parties,†Feinberg said.
About 60 lawsuits, mostly brought by builders who had to replace their customers’ roofs, were pending.
Most of the money will come from companies that developed or sold the chemical formula or treated the plywood, but builders, wood companies, distributors and homeowners will contribute as well, the source said.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
