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Spokane, Washington  Est. May 19, 1883

Claims Process Resumes In L-P Siding Case

Associated Press K Staff writer

A federal judge has ordered Louisiana-Pacific Corp. to resume processing of warranty claims and arbitration proceedings concerning its faulty Inner-Seal house siding, the company announced today.

The Portland-based company said it is rescheduling appointments with customers who requested arbitration meetings before settlement of a class-action lawsuit Oct. 18.

Continuance of the claims process comes under a Nov. 9 ruling by U.S. District Judge John Jelderks.

L-P had suspended the warranty and arbitration proceedings after a settlement of the class-action claim.

Under the agreement, L-P will pay at least $275 million to homeowners nationwide to repair or replace defective siding.

The company also will shorten the warranty period for Inner-Seal siding from 25 to seven years, but cover repair costs estimated to be three to four times as high as the original warranty allows.

The agreement covers all siding installed since 1985, when it was first marketed, but will not cover any L-P siding installed after Jan. 1, 1996.

Class-action claims have been filed in seven states by homeowners whose siding has begun to rot, swell, crack or sprout mushrooms.

Customers who filed warranty claims or are involved in arbitration can continue those proceedings or choose to have them closed under the settlement, said Seattle attorney Steve Berman, lead negotiator of the class-action agreement.

“If the amount awarded through the arbitration or warranty is less than the amount of the settlement, the claimant is entitled to recover the difference between the two amounts,” Berman said.

At least 100,000 of the estimated 500,000 to 750,000 homeowners who purchased L-P’s Inner-Seal siding are expected to file claims under the settlement, Berman said.

Class-action claims have been filed in Florida, Pennsylvania, South Carolina, Georgia, Washington, Oregon and California.

L-P plans to launch a nationwide advertising campaign within the next month to notify customers of the settlement.

The siding was manufactured at L-P’s Chilco plant, north of Coeur d’Alene, for six years. It is still manufactured in the Midwest and Canada.

, DataTimes The following fields overflowed: CREDIT = Associated Press Staff writer Ken Olsen contributed to this report.