Connell Solera LLC v. Lubrizol Advanced Materials, Inc.

CourtDistrict Court, D. Colorado
DecidedFebruary 3, 2022
Docket1:21-cv-00336
StatusUnknown

This text of Connell Solera LLC v. Lubrizol Advanced Materials, Inc. (Connell Solera LLC v. Lubrizol Advanced Materials, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connell Solera LLC v. Lubrizol Advanced Materials, Inc., (D. Colo. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge William J. Martínez

Civil Action No. 21-cv-0336-WJM-SKC

CONNELL SOLERA, LLC,

Plaintiff,

v.

LUBRIZOL ADVANCED MATERIALS, INC., and CHARLOTTE PIPE & FOUNDRY, INC.,

Defendants.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT LUBRIZOL ADVANCED MATERIALS, INC.’S EARLY MOTION FOR PARTIAL SUMMARY JUDGMENT

This matter is before the Court on Defendant Lubrizol Advanced Materials, Inc.’s (“Lubrizol”) Early Motion for Partial Summary Judgment (“Motion”). (ECF No. 36.) For the following reasons, the Motion is granted in part and denied in part. I. BACKGROUND1 A. Factual Background Connell Solera, LLC (“Solera”) owns the building known as the Solera Apartments, located at 1256 Lawrence Street, Denver, Colorado. (ECF No. 36 at 3

1 The following factual summary is based on the parties’ briefs on the Motion and documents submitted in support thereof. These facts are undisputed unless attributed to a party or source. All citations to docketed materials are to the page number in the CM/ECF header, which sometimes differs from a document’s internal pagination. ¶ 1.) The Solera Apartments were completed in 2010; however, Solera did not own the building at the time of its construction. (Id. ¶¶ 2–3.) As such, Solera played no role in the selection of materials for the Solera Apartments or the plumbing system within the Solera Apartments. (Id. ¶ 4.)

Lubrizol is a chemical company that manufactures advanced polymers for use in various applications. (Id. ¶ 5.) Among other things, Lubrizol is the owner of the registered trademark FlowGuard, which is registered for use with respect to CPVC products. 2 (Id. ¶ 6.) Lubrizol manufacturers proprietary CPVC compounds that it sells to pipe manufacturers, including Charlotte Pipe & Foundry, Inc. (“Charlotte Pipe”). (Id. ¶ 7.) Lubrizol does not sell finished pipes or fittings to end users. (Id. ¶ 28.) As of the time the Solera Apartments were completed, Lubrizol maintained a contractual relationship with Charlotte Pipe. (Id. ¶ 12.) Lubrizol and Charlotte Pipe signed a Product Supply Agreement which covers Lubrizol’s sale of FlowGuard 3107 and FlowGuard Gold 88027 products for use by Charlotte Pipe for “manufacturing pipe

and fittings for hot and cold water, industrial, commercial, and acid waste applications.” (Id. ¶ 13.) FlowGuard Gold 3107 is a “granular powder that is used in the manufacture of pipes.” (Id. ¶ 17.) FlowGuard Gold 88027 is a “pellet that is used in the manufacture of fittings.” (Id. ¶ 18.) The parties also signed a CPVC Processor License Agreement, in which Lubrizol licensed the trademark FlowGuard Gold to Charlotte Pipe for its use with its construction products in exchange for Charlotte Pipe’s agreement that it would buy its

2 CPVC is used to make pipes and fittings for the construction industry. (Id. ¶ 10.) requirements of CPVC compounds exclusively from Lubrizol, maintain certain quality standards, and adhere to certain branding specifications. (Id. ¶ 14.) The quality standards set forth in the CPVC Processor License Agreement require Charlotte Pipe’s pipes and/or fittings to have: (1) been made solely of

FlowGuard compounds; (2) meet all applicable “ASTM” standards; and (3) not be broken when impacted by a weight dropped from a certain height. (Id. ¶ 15.) Moreover, the contract permits Lubrizol the right to “inspect and test” the FlowGuard products and provides Lubrizol the right to terminate the parties’ agreement under certain conditions if it determines that FlowGuard products are not being produced pursuant to the quality standards. (ECF No. 37 at 34.) The CPVC Processor License Agreement also provides that Lubrizol may, in its sole discretion, provide technical and engineering support for the development of applications for FlowGuard Products . . . . This support may include consultation on prospective applications and technical support associated therewith and the preparation and publication of an engineering manual to assist [Charlotte Pipe] and prospective suppliers, installers and end-users in the proper use of FlowGuard Products . . . . (Id. at 21.) Lubrizol also “prepared and produced promotional literature, engineering manuals and advertisements relating to the FlowGuard Products” which Lubrizol agreed to provide in its discretion to Charlotte Pipe. (Id. at 23.) Lubrizol contends that to make finished pipes and/or fittings, its products must undergo an “intensive extrusion and/or injection molding process that significantly modifies the compounds.” (ECF No. 36 at 6 ¶ 22.) According to Lubrizol, extrusion is a process “by which a compound is worked and heated to very high temperatures within an extruder until it is melted, and then pushed (in molten form) through a custom die to make a pipe,” whereas injection molding “involves a process by which a compound is worked and heated to very high temperatures within an injection molding machine until it is melted and injected (in molten form) into a customs plastics mold to make fittings.” (Id. ¶¶ 23–25.) Lubrizol contends that it has no control over the design of its customers’

molds or injection presses and that, as a raw materials manufacturer, it has no role in establishing, or control over, its customers’ distribution networks or distribution policies. (Id. ¶¶ 26–27.) Solera disputes these facts, contending that discovery will show that “Lubrizol’s resin compounds are simply heated and shaped into pipes and/or fittings with no material change to their properties/formulation” and that Lubrizol expressly controlled the nature and quality of the pipes and fittings. (ECF No. 56 ¶¶ 23–27.) B. Procedural History Solera filed this action in the District Court for the City of County of Denver on November 11, 2020, and Defendants Lubrizol and Charlotte Pipe (jointly, “Defendants”) removed this action on February 3, 2021. (ECF No. 1.)

In its Amended Complaint, Solera asserts the following claims against Defendants: (1) negligence (“Count 1”) (see ECF No. 27 ¶¶ 53–62); (2) strict liability – design defect (“Count 2”) (see id. ¶¶ 63–72); (3) strict liability – manufacturing defect (“Count 3”) (see id. ¶¶ 73–79); (4) strict liability – failure to warn (“Count 4”) (see id. ¶¶ 80–89); (5) breach of express warranty pursuant to Colorado Revised Statutes §§ 4-2- 313 and 4-2-318 (“Count 5”) (see id. ¶¶ 90–109); (6) breach of implied warranty of merchantability pursuant to Colorado Revised Statutes §§ 4-2-314 and 4-2-318 (“Count 6”) (see id. ¶¶ 110–120); (7) breach of implied warranty of fitness for a particular purpose pursuant to Colorado Revised Statutes §§ 4-2-314 and 4-2-318 (“Count 7”) (see id. ¶¶ 121–129); and (8) a violation of the Colorado Consumer Protection Act (“CCPA”), Colorado Revised Statute §§ 6-1-105(1)(b), (c), (e), (g), and (u) (“Count 8”) (see id. ¶¶ 130–138). Defendants filed their respective answers on March 22, 2021. (ECF Nos. 30, 31.)

On April 28, 2021, Lubrizol filed the Motion. (ECF No. 36.) Solera responded on June 21, 2021 (ECF No. 56), and Lubrizol replied on July 6, 2021 (ECF No. 58). II. LEGAL STANDARD Summary judgment is warranted under Federal Rule of Civil Procedure 56 “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); see also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248–50 (1986). A fact is “material” if, under the relevant substantive law, it is essential to proper disposition of the claim. Wright v.

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