Refunds For Siding Under Way Louisiana-Pacific Distributing $270 Million For Replacements

Louisiana-Pacific Corp. launched a nationwide campaign Thursday to distribute $270 million to homeowners with damaged Inner Seal siding.

The $5 million media campaign to reach homeowners will run through March 15. Homeowners with claims that independent adjustors deem legitimate can receive reimbursements beginning April 15.

Under the settlement of a class-action lawsuit, the company has agreed to replace any siding that is damaged.

About 25,000 homeowners will receive a mailing explaining the claims process, Steve W. Berman, a lead attorney for the plaintiffs in the case, said Thursday.

But he said there are thousands more homeowners to be found - particularly in Oregon, Washington and the southeastern United States.

“We believe Louisiana-Pacific settled because we convinced them that they had a serious problem on their hands,” said Berman, who described settlement negotiations as “very hostile.”

L-P produced the siding for six years at Chilco, Idaho, just north of Coeur d’Alene. It switched to other products about a year ago.

Berman said the settlement is a good one because it offers additional money for replacement costs to the many homeowners who already have received money for the cost of the siding under the Inner Seal warranty. Homeowners can make up to three claims for replacements during the next seven years.

Louisiana-Pacific has maintained that the wooden Inner Seal siding is a reliable product when installed and maintained correctly.

The company didn’t want a drawn-out lawsuit to further damage its reputation with customers, senior vice president Steve Grant said Thursday.

If the money runs out, the company will add $50 million a year after four years to pay for replacement siding. The agreement covers all defective siding installed since 1985, when it was first marketed, but will not cover any L-P siding installed after Jan. 1, 1996.

Despite the settlement, Louisiana-Pacific officials said they will continue to sell an improved version of the siding, which has had particular problems in damp climates.

“We’re working to produce a product that will perform better in real-world conditions,” he said.

So far, class-action claims have been filed in Oregon, Washington, Florida, Pennsylvania, South Carolina, Georgia and California. Homeowners who do not like the settlement may continue with their own litigation.

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