Gwen Hart v. Louisiana-Pacific Corporation

641 F. App'x 222
CourtCourt of Appeals for the Fourth Circuit
DecidedMarch 10, 2016
Docket13-2375
StatusUnpublished
Cited by5 cases

This text of 641 F. App'x 222 (Gwen Hart v. Louisiana-Pacific Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gwen Hart v. Louisiana-Pacific Corporation, 641 F. App'x 222 (4th Cir. 2016).

Opinion

Affirmed by unpublished PER CURIAM opinion.

Unpublished opinions are not binding precedent in this circuit.

PER CURIAM:

Gwen Hart, Lucille and Joseph Druther, and Edward and Jennifer Wuellner (collectively “Appellants”) own homes that were built using TrimBoard, a construction material manufactured by Louisiana-Pacific Corporation (“Appellee”). TrimBoard was sold with an express, ten-year warranty (the “Warranty”) that provided a specific and limited remedy if the product failed to live up to expectations. Over time, Appellants grew dissatisfied with their Trim-Board, and filed a class action asserting claims for breach of the Warranty. They also claimed the limited remedy was unconscionable and sought compensatory damages not contemplated in the Warranty.

The district court certified the class initially, but later concluded that some class members’ claims — including Appellants’ claims — were barred by an applicable statute of repose. The district court granted summary judgment to Appellee on the time-barred claims and opted to decertify the class.

We affirm, but for slightly different reasons. In our view, Appellee is entitled to summary judgment because the Warranty’s limited remedy is not unconscionable. As a result, we do not consider the district court’s conclusion about the timeliness of Appellants’ claims. We also affirm the district court’s decision to decertify the class.

I.

A.

Appellants are North Carolina homeowners. Gwen Hart completed construction of her home in Dare County, North Carolina, in 1999. The Druthers and the Wuellners live in Apex, North Carolina, in houses that were completed in 2000 and 2001, respectively.

Each home was built using TrimBoard, a composite building material sold by Ap-pellee through its subsidiary, ABTco. TrimBoard was marketed for use as exterior trim, “perfect for all trim applications, *224 including corner board, fascia, window and door trim.” J.A. 274. 1 It was sold with an express, limited, ten-year warranty that guaranteed TrimBoard’s “substrate” 2 against “delamination, checking, splitting, cracking and chipping ... for a period of ten years” from the date of installation, as long as it had been “properly stored, installed, maintained, and protected.” Id, at 247; see also id. at 344 (“[TrimBoard] substrate will not delaminate, check, split, crack, or chip for a period of ten years from the date of installation under normal conditions of use and exposure, provided the trim is properly stored, installed, maintained, and protected — ”).

The Warranty also provided an exclusive, limited remedy. Before 2005, Appel-lee promised to “compensate the owner for repair and replacement of the affected trim no more than twice the original purchase price,” if TrimBoard failed within the ten-year period. J.A. 358. After 2005, Appellee offered to “pay an amount equal to the cost ... of replacing any such failed [TrimBoard] if failure occur[red] within ten years after the [TrimBoard] was installed.” Id. at 364. Both versions of the Warranty disclaimed all other warranties, including the implied warranty of merchantability, and specifically barred the recovery of “any other damages or losses, including” incidental and consequential damages. Id. at 358, 364.

B.

Over time, the TrimBoard on Appellants’ homes began splitting and cracking, absorbing moisture, and rotting and degrading. Hart, for example, was told by a contractor that all of the TrimBoard on her home was damaged and would need to be replaced at an estimated cost of close to $5,000. She made a claim under the Warranty in 2008. Appellee offered Hart $3,772.32, but she rejected that offer because it was roughly $1,300 less than the estimate she previously received. The Druthers and Wuellners submitted claims under the Warranty in 2009. Appellee made offers to them as well, for $1,429.62 and $820.95, respectively. Presumably, both offers were not accepted.

After rejecting Appellee’s offer, Hart filed a putative class action complaint in Dare County Superior Court on October 22, 2008. Appellee removed the case to the District Court for the Eastern District of North Carolina, after which Appellants filed their operative amended complaint on September 21, 2009. That pleading was the first to include the Druthers and Wuellners as named plaintiffs.

The amended complaint charged Appel-lee with “breach of express warranty,” alleging TrimBoard “prematurely deteriorates, rots, swells, buckles, delaminates, absorbs water, warps and/or bulges under normal conditions,” resulting in “water and structural damages[,] ... growth of mold mildew, fungi, and insect infestation in the structures in which it is installed.” J.A. 141, 153. Appellants claimed the Warranty’s limited remedy provision was unconscionable because Appellee allegedly knew that TrimBoard was defective but sold it anyway. They maintained they were, therefore, entitled to recover damages otherwise excluded by the Warranty, such as compensatory damages. Alternatively, Appellants alleged that Appellee breached the Warranty by failing to “pay for 100% of the costs associated with the removal of the defective [TrimBoard].” Id. at 155. *225 As a remedy for that alternative theory of breach, they asked for “specific performance” of the “terms of [the Warranty]” as originally drafted — that is, an amount equal to the cost of replacing defective TrimBoard. 3

On appeal, however, we consider only whether Appellants are entitled to recover compensatory damages if they succeed in proving that the Warranty’s limited remedy provision is unconscionable. Appellants’ counsel made clear at oral argument that Appellants were definitively abandoning any effort to recoup the remedy provided under the terms of the Warranty as written:

COURT: Are the plaintiffs still seeking to press their claim to enforce the warranty as written?
APPELLANTS’ COUNSEL: No, not as written, Your Honor.
COURT: [Y]ou’re not going to proceed on the warranty as-written claim?
APPELLANTS’ COUNSEL: That’s correct. Our claim is that there’s a breach of warranty in that the limitations of the warranty limiting us to two times ... the cost of repair is unconscionable given the circumstances and facts of this case.

See Oral Argument at 00:27-01:20, Hart v. Louisiana-Pacific Corp., (2015) (No. 13-2375), http://www.ca4.uscourts.gov/oral-argument/listen-to-oral-arguments.

C.

The parties vigorously litigated the question of unconscionability in the district court. On July 18, 2011, the district court granted Appellants’ motion to certify a Rule 23(b)(3) class consisting of “[a]ll persons in the State of North Carolina who own a home, office or other building in which [TrimBoard] has been installed in the past 10 years.” J.A. 1027-35.

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Related

Alan Brown v. Louisiana-Pacific Corporation
820 F.3d 339 (Eighth Circuit, 2016)
Bristol Village, Inc. v. Louisiana-Pacific Corp.
170 F. Supp. 3d 488 (W.D. New York, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
641 F. App'x 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gwen-hart-v-louisiana-pacific-corporation-ca4-2016.