Chedester v. Gebrueder Knauf Verwaltungsgesellschaft KG

District Court, S.D. Alabama·Decided October 16, 2023·No. 1:21-cv-00447·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

BECKY CHEDESTER, et al., ) ) Plaintiffs, ) CIVIL ACTION 1:21-00447-KD-B ) v. ) ) GEBRUEDER KNAUF ) VERWALTUNGSGESELLSCHAFT KG, ) et al., ) ) Defendants. )

ORDER

This matter is before the court on Plaintiffs Booker Lee, Terri Lee, and Becky Chedester’s (“Plaintiffs”) and Defendants Knauf Gips KG and Knauf New Building System (Tianjin) Co. Ltd.’s (“Knauf Defendants” or “Defendants”) supplemental briefs discussing: (a) whether the drywall at issue is a “good” under the UCC; and (b) caselaw analyzing nuisance in a similar context. (Doc. 79; Doc. 80). In January 2023, Defendants moved for summary judgment, seeking dismissal of all claims asserted against them other than the Lees’ negligence claims. (Docs. 49, 50, 51). On September 7, this Court granted in part and denied in part Defendants’ Motion for Summary Judgment. (Doc. 77). This Court denied summary judgment as to the Lees’ and Becky Chedester’s breach of implied warranty and private nuisance claims while ordering further briefing on the issues. (Id.). After considering both Defendants’, (Doc. 79), and Plaintiffs’, (Doc. 80), supplemental briefs, and Defendants’, (Doc. 84), and Plaintiffs’, (Doc. 85), responses, the Court GRANTS summary judgment for Defendants as to Chedester’s breach of implied warranty and private nuisance claims under Counts IV and V of the Second Amended Complaint, (Doc. 83).1 I. LEGAL STANDARD Under Federal Rule of Civil Procedure 56, “The court shall grant summary judgment if the

movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A genuine dispute of material fact exists when “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). After giving notice and a reasonable time to respond, the court may “consider summary judgment on its own after identifying for the parties material facts that may not be genuinely in dispute.” Fed. R. Civ. P. 56(f)(3). A district court may enter summary judgment sua sponte if the parties are given adequate notice that they must present all of their evidence. Celotex Corp. v. Catrett, 477 U.S. 317, 326 (1986); Flood v. Young Woman’s Christian Ass’n of Brunswick, Inc., 398 F.3d 1261, 1267 (11th Cir. 2005). Adequate notice exists when an opposing party previously moved for

summary judgment on that claim and the nonmovant is given an opportunity to file briefing and any new evidence before the court. Flood, 398 F.3d at 1267.

1 Defendants claim that “as a preliminary matter, it is undisputed that KPT was the manufacturer and seller of KPT drywall, not Gips. Therefore, both the nuisance and implied warranty claims should be dismissed with prejudice because it was not the manufacturer or seller of KPT drywall.” (Doc. 79 at 1; see also Doc. 84 at 1, n.1) (“Plaintiffs’ claim for breach of implied warranty against Defendant Gips must fail because Gips did not manufacture, market, sell, or distribute KPT drywall.”). As discussed in the Final Pretrial Conference, because Defendants did not raise this issue in their original Motion for Summary Judgment, (Docs. 49, 50, 51), it is not addressed in the Court’s order on summary judgment. II. ANALYSIS

A. Breach of Implied Warranty (Count IV)

Under Article 2 of the UCC, “‘Goods’ means all things . . . which are movable at the time of identification to the contract for sale . . . . ‘Goods’ also includes . . . other identified things attached to realty as described in the section on goods to be severed from realty.” Ala. Code § 7- 2-105(1) (1975). Official comments to § 7-2-105 provide, “This Article in including within its scope ‘things attached to realty’ adds the further test that they must be capable of severance without material harm thereto. As between the parties any identified things which fall within that definition become ‘goods’ upon the making of the contract for sale.” § 7-2-105 cmt. 1 (1975). Crucially, Article 2 provides that, unless excluded or modified, an implied warranty of merchantability arises in a contract for the sale of goods if the seller is a merchant with respect to goods of that kind. § 7-2-314. Further, an implied warranty of fitness for a particular purpose will arise in a contract for the sale of goods if the seller has reason to know any particular purpose for which the goods are required at the time of contracting, the buyer is relying on the seller’s skill or judgment to select or furnish the goods, and the warranty has not been excluded or modified. § 7-2-315. Defendants cite, (Doc. 51 at 13-14; Doc. 79 at 2), and Plaintiffs distinguish, (Doc. 80 at 2-3), Keck v. Dryvit Sys., Inc., 830 So. 2d 1 (Ala. 2002), the only on-point decision of the Alabama Supreme Court. In Keck, the Court considered whether an exterior insulation finishing system (“EIFS”) manufactured and installed by the defendants constituted a “good” under UCC Article 2. The EIFS was a “multilayered exterior wall system consisting of Styrofoam insulation board glued to the exterior wooden substrate previously affixed during construction of the house, a base coat . . . and a finish coat . . . .” Id. at 3. Referencing the statutory requirement for “things attached to realty,” the court could not say that the EIFS, a multilayered system that composed the exterior wall of the plaintiffs’ house, could be detached from the house without causing it significant harm. Id. at 8. It explained that the EIFS was attached to the underlying sheathing of the home during its construction; that, once incorporated, the EIFS loses its distinct characteristic

as a “good” and becomes an integral part of a home’s structure; and that removing the EIFS from the plaintiffs’ home “would damage the underlying sheathing of the house and the overall structural integrity of the house, leaving the house exposed to the elements.” Id. Therefore, because removal of the EIFS would unquestionably result in material harm to the plaintiffs’ house, the EIFS could not be considered a good under the UCC. Id. at 8-9. The court further quoted with approval a Virginia circuit court decision involving the same product, which held, The EIFS at issue in this case was a good at one time, but once it was incorporated into the walls of the units it ceased to be a “good” in that it lost any distinctive characteristic it once had. To hold otherwise would be to hold that any “building component” used in the construction of any building contains a manufacturer’s warranty applicable to remote plaintiffs simply because it was a good at some time.

Id. at 9 (emphasis included) (quoting BayPoint Condominium Ass’n, Inc. v. Dryvit Sys., No. CL99-475, 2001 WL 792693, at *7 (Va. Cir. Ct. Apr. 3, 2001)). Here, it is undisputed that the Chedesters purchased their home in 2007, with the drywall at issue installed in the property during the prior year, before the Chedesters acquired the home. (Doc.

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