Dominic Massa / EyewitnessNews

NEW ORLEANS A federal jury has sided with New Orleans drywall supplier Interior/Exterior Building Supply, saying it did not operate in bad faith when it distributed toxic Chinese drywall that wound up in local homes.

Three homeowners and the non-profit group Habitat for Humanity were plaintiffs in the case, one of thousands filed after the tainted drywall was discovered in thousands of homes across the Gulf Coast.

According to Ben Grau, an attorney for Interior/Exterior, the jury on Monday concluded that the company neither knew or should have known of the sulfur defect in the drywall at the time that it sold the tainted Knauf brand Chinese drywall.

The company and its insurers had already agreed to an $8 million settlement with victims. The settlement affected an estimated 2,000 to 3,000 homeowners in Louisiana, Texas, Mississippi and Alabama, where Interior/Exterior was the primary distributor of the drywall.

Grau explained that the verdict reached Monday focused on the liability of the supplier's excess insurance carrier.

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