Bill eases how U.S. sues foreign firms
During the housing boom, homebuilders used defective drywall in homes in 23 states. Prosecuting its manufacturer in China has been a jurisdictional nightmare, but a bill may change things. Dan Grech reports.
A gavel and sound block. (iStockPhoto)
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TEXT OF STORY
During the housing boom, home builders put defective drywall in homes in 23 states. There's a new bill in the Senate that might make it easier to prosecute those in China -- that's been under a jurisdictional nightmare. From Miami, Marketplace's Dan Grech reports.
Dan Grech: Under current law, it's expensive and time consuming to establish jurisdiction when suing a foreign manufacturer. So in many cases, lawsuits are filed against the U.S. distributors instead. Professor Louise Ellen Teitz is with the Roger Williams University School of Law.
LOUISE ELLEN TEITZ: There's the homebuilder and all these other domestic parties, and they're the ones who get stuck.
The Senate bill would make it faster and easier to bring foreign companies before an American court. Tom Gowen is an attorney who specializes in international product-liability claims.
TOM GOWEN: You've had the lead paint on toys, you had the date rape drug on the art toy, you've had the Chinese drywall situation now. And you know it's going to keep happening just because of the volume of commerce that's being done.
Gowen say imports to the U.S. have doubled in recent years, and they're expected to double again.
In Miami, I'm Dan Grech for Marketplace.
Comments
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From Philadelphia, PA, 08/13/2009
If this bill becomes law it should be quite helpful in bringing foreign manufacturers to justice and giving them incentives to build products to American standards. Senators Whitehouse and Sessions are to be congratulated for drafting and introducing this important bill.
Tom Gowen
www.lockslaw.com
From Virginia Beach, VA, 08/13/2009
I wouldn't hold my breath waiting for anyone with a capital investment in Chinese trade to do anything for Americans. They moved overseas to make a buck and they will protect their own interests. Obama might make the difference if he can get past the Pub money cartel and their propoganda machine.
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