NEW ORLEANS (AP) — A Chinese drywall supplier's insurers haveagreed to pay up to $8 million to settle court claims against thecompany over damage to homes from the corrosive product, accordingto a proposed settlement filed Tuesday.

U.S. District Judge Eldon Fallon in New Orleans must approvethe deal between plaintiffs' attorneys, Interior/Exterior BuildingSupply and two of its three insurers. The settlement would coverjust a share of thousands of claims from homeowners claiming thedrywall caused problems ranging from foul odors to corrosion ofelectrical wiring, appliances and electronics.

Interior/Exterior supplied drywall made by two Chinese companies— Knauf Plasterboard Tianjin Co. and Taishan Gypsum Co. — tobuilders in Texas, Louisiana, Mississippi, and Alabama.

At least 1,200 to 1,500 property owners are eligible forportions of the $8 million settlement fund. Payments from previoussettlements of claims against Interior/Exterior will be deductedfrom the fund.

The company, along with Knauf, already was participating in apilot program to repair 300 homes in four states.

The $8 million payment represents the limits ofInterior/Exterior's insurance policies with Arch Insurance Companyand Liberty Mutual Fire Insurance Company.

Conflicting Rulings On Defects Leave Looming Questions Over DrywallClaims

Plaintiffs' attorneys said they will continue to pursue up to$72 million in claims against Interior/Exterior's other insurer,The North River Insurance Company, which isn't part of the proposedsettlement.

“They showed no interest,” said Arnold Levin, one of the leadplaintiffs' attorneys.

Levin said the settlement isn't designed to cover all of theplaintiffs' repair costs but represents a “step in the rightdirection.”

“Knauf is the one that has to pay,” he said. “It's theirproduct. They manufactured it.”

Fallon is presiding over more than 10,000 claims by residentsblaming damage to their homes on Chinese drywall.