L-P Agrees To Pay Siding Claims

Louisiana-Pacific Corp. has agreed to pay at least $275 million to homeowners nationwide who claim its Inner-Seal house siding is defective, a lawyer representing homeowners said Wednesday.

The agreement, which has preliminary approval from a federal judge, replaces the 25-year warranty on the siding for anybody who purchases the product through Jan. 1. These people will instead have the next seven years to file claims, which will be handled by an independent claims administrator.

Homeowners can file additional claims annually for as long as seven years if previously undamaged siding develops problems, said attorney Steve Berman of Seattle.

Even people who did not join one of a dozen class action suits across the country can recover damages by contacting L-P’s claims program.

The settlement, announced Wednesday, will cover the cost of replacing damaged siding - including labor - less a certain deduction that reflects the age of the siding.

L-P will not consider improper installation or maintenance in deciding claims. Until recently, L-P insisted the siding had few problems and blamed most of its ills on improper installation.

In many cases, the Inner-Seal siding - made of strands of aspen or pine glued together with resin and compacted under heat and pressure - rotted, swelled, cracked, or sprouted mushrooms.

The Spokane-area Better Business Bureau is arbitrating some claims between Inland Northwest homeowners and L-P. “If you are halfway through that process, the prudent thing to do is to continue,” said Barry Lacter, company spokesman.

The results of the arbitration may be better than what the settlement pays, he said. In addition, people who already have accepted a settlement under the arbitration program or directly from L-P can apply for additional compensation from the $275 million fund.

If the initial $275 million is exceeded within four years, Louisiana-Pacific will have the option of adding $50 million a year to the settlement fund until all claims are paid.

If the additional money is not enough to settle all claims, or Louisiana-Pacific decides not to contribute the additional funds, plaintiffs retain the rights to file legal action, either as members of a class action or as individuals.

Company officials and attorneys representing homeowners presented the agreement Wednesday to U.S. Magistrate John Jelderks. He gave preliminary approval and will hold a fairness hearing in April before giving final approval.

The settlement will be advertised nationally. Homeowners then would register complaints with the court.

, DataTimes MEMO: Cut in the Spokane edition.

This sidebar appeared with the story: INFORMATION People with L-P Inner-Seal siding who want to get on the mailing list for information on filing claims can call (800) 648-6893.