January 2004
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A surge of lawsuits over synthetic stucco
After the mold reappeared in January 2003, Laura Rudish, 49, a writer, and her husband Russ Rudish, 51, a health-care consultant, asked a contractor if he could remove the stucco permanently. That’s when they learned that their house was clad in synthetic stucco, also called exterior insulation and finish system. “You have EIFS. You have water damage. And it’s going to cost you a fortune,” Laura Rudish recalls the contractor saying. “I thought I was going to pass out.” Now the Rudishes are suing the builder, the former owners, the EIFS manufacturer, and others, seeking the $375,000 they’ve spent in repairs, including 43 studs, 16 posts, and the entire exterior. They maintain that construction defects and the EIFS cladding let water seep inside the walls, causing severe structural damage. In the last decade, thousands of homeowners have said that they’ve had similar experiences. Less expensive than cement stucco, synthetic stucco is energy-efficient, waterproof, and easily crafted, which explains why it has been a growing choice for U.S. and Canadian house cladding since it was introduced in the 1970s. It consists of polystyrene insulation board affixed to sheathing and fiberglass mesh. The insulation is covered with a textured acrylic finish resembling cement stucco. Up to 1 percent of new homes are clad with EIFS. They’re often found in pricey suburban subdivisions and have been referred to as “polystyrene palaces.” Makers of EIFS include Dryvit Systems, Parex, and Sto Corp. Poor construction and poor maintenance are responsible for problems, not their products, says Tony Stall, a Dryvit Systems spokesman. “There are thousands of homes that have been clad with EIFS that are dry as a bone and performing with great results because the house was built right,” Stall says. Newer systems include a drainage plane and moisture barrier behind the insulation; there are no conclusive data yet as to whether these systems prevent problems. The National Association of Home Builders advises builders considering EIFS to use the new systems. A 1995 NAHB publication warns that homes with the earlier system “can develop moisture intrusion problems even when properly constructed,” and “problems with water intrusion are more likely to occur than with other types of cladding.” RED FLAGS In the early 1990s, homeowners in North Carolina began complaining of rot, mold, and termite infestation in relatively new homes. Housing officials traced the problems to water trapped behind EIFS exteriors. Because EIFS is waterproof, any water that gets through (by, say, a gap around a window) can’t dry out. Moisture leads to decay. While the same thing can happen with other cladding, “no other product that we were aware of then or now would have the amount of damage in the amount of time as EIFS,” according to Allen Golden, assistant director of inspections for New Hanover County, N.C., and one of the initial investigators of problems in that state. In 1996, North Carolina banned some EIFS products. Georgia also allows only some types of EIFS. No federal agency regulates the product. Homeowners around the country have filed defective-product lawsuits. In 2000, a North Carolina settlement offered 20,000 state residents affected by EIFS about $6 per square foot to repair their homes, or roughly 45 cents on the dollar. Many of the state’s EIFS homeowners claimed they had suffered reduced property values or couldn’t sell their homes. Similar lawsuits are still in the courts. WHAT YOU CAN DO Find out whether you have EIFS. First, ask your builder. If that’s not possible, knock on an exterior wall. If it sounds hollow, it probably is EIFS. Check for stucco that bulges, moisture on an inside wall, and a mildew odor. Look for signs of leaks near windows, doors, and at roof and wall flashings. Consider having an engineer test with a moisture meter. For more information about EIFS, contact the EIFS Institute, www.eifsinfo.net, and the EIFS Industry Members Association, www.eima.com. |
