In re Azek Building Products, Inc.

82 F. Supp. 3d 608, 2015 U.S. Dist. LEXIS 10980, 2015 WL 410564
CourtDistrict Court, D. New Jersey
DecidedJanuary 30, 2015
DocketCivil Action No. 12-6627; MDL Docket No. 2506
StatusPublished
Cited by22 cases

This text of 82 F. Supp. 3d 608 (In re Azek Building Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Azek Building Products, Inc., 82 F. Supp. 3d 608, 2015 U.S. Dist. LEXIS 10980, 2015 WL 410564 (D.N.J. 2015).

Opinion

[612]*612OPINION

ARLEO, District Judge.

This matter comes before this Court on Defendant’s Motion to Dismiss Plaintiffs’ Consolidated Amended Complaint (“CAC”) for failure to state a claim, pursuant to Federal Rules of Civil Procedure 9(b) and 12(b)(6) [Dkt. No. 95]. For the reasons set forth below, the motion is GRANTED-IN-PART and DENIED-IN-PART.

I. Facts

In this case, sixteen named plaintiffs seek to bring a class-action lawsuit under the laws of eleven states against Defendant AZEK Building Products, Inc. (“Defendant”). This dispute centers on alleged defects in Defendant’s decking products rising from the materials used therein. Specifically, Plaintiffs claim that polyvinyl chloride (PVC), from which Defendant’s decking products are made, develops stains, scratches, discoloration,. chalking, and streaking under normal use. Defendant, however, allegedly made written representations through “pamphlets and information sheets” which assured prospective customers that its decking had superior aesthetic durability to other decking alternatives, such as wood. (CAC ¶¶ 66, 74, 82, 92, 100, 108, 116, 131, 139, 147, 155, 162, 169).1 Plaintiffs identify at least ten specific statements at issue which concern AZEK decking. (See id. ¶¶ 5, 6, 8, 10, 12). Among these statements are: AZEK decking would only “weather very slightly over time and will look luxurious for years to come;” “[B]y leaving out the wood fillers AZEK deck materials are engineered to resist stains and mold;” Azek decking is “Designed to last beautifully;” and “WOOD AND COMPOSITES ROT, STAIN AND FADE. AZEK DOESN’T. AZEK exterior products look so beautiful and last so long why would you ever use anything else? ... AZEK deck is the embodiment of durability. At the end of the day all you have to do is enjoy it.” (Id. ¶ 6(b) — (e), (e), (j)) (capitalization in original).

Plaintiffs also claim Defendant had knowledge of the disputed defects when it made these statements and covered up those defects when selling the product. Specifically, they claim that Defendant held itself out as having “over 25 years of experience in cellular PVC manufacturing,” and touted itself as an expert in the manufacture and use of PVC materials. (Id. ¶¶ 6, 10). Plaintiffs further allege that, as an expert, Defendant knew or should have known that its PVC decking would undergo various degradations, but made representations contrary to that knowledge. (Id. ¶¶ 11, 12, 17). The scientific and industrial community also knew that PVC was highly susceptible to degradation if it was exposed to sunlight and heat. (Id. ¶ 11,19).

Each Plaintiff provides a date range— for most Plaintiffs a specific month, but for some a range of several months — within which he or she bought the AZEK decking. (Id. ¶¶ 65, 73, 81, 91, 99, 107, 115, 123, 130, 138, 146, 154, 161, 168). Each Plaintiff also alleges that, before purchasing the product, he or she reviewed and relied on the alleged misrepresentations made by Defendant, including the misrepresentations alleged in paragraphs 5, 6, 8, 10, and 12 of the CAC. (Id. ¶¶66, 74, 82, 92, 100, 108,116, 124, 131, 139, 147, 155, 162,169).

Defendant provided a Lifetime Limited Warranty which accompanied all AZEK decking. The Lifetime Limited Warranty warrants AZEK deck components

[613]*613to be free from defects in material and workmanship that (i) occur as a direct result of the manufacturing process, (ii) occur under normal use and service, (iii) occur during the warranty period and (iv) result in blistering, peeling, flaking, cracking, splitting, cupping, rotting or structural defects from termites or fungal decay.

(Id., Ex. A). The Lifetime Limited Warranty also contains a disclaimer which states

THE WARRANTY STATEMENTS CONTAINED IN THIS LIFETIME LIMITED WARRANTY SET FORTH THE ONLY WARRANTIES EXTENDED BY AZEK AND ARE IN LIEU OF ALL OTHER CONDITIONS AND WARRANTIES, EITHER EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE PROVISIONS OF THIS WARRANTY SHALL CONSTITUTE THE ENTIRE LIABILITY OF AZEK AND THE PURCHASER/PROPERTY OWNER’S EXCLUSIVE REMEDY FOR BREACH OF THIS WARRANTY. IN PARTICULAR, IN NO EVENT SHALL AZEK BE LIABLE TO THE PURCHASER/PROPERTY OWNER FOR SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL, OR PUNITIVE DAMAGES ARISING FROM THE USE OF THE AZEK PRODUCTS OR THE BREACH OF ANY EXPRESS OR IMPLIED WARRANTY.

(Id.) (capitalization in original). The Lifetime Limited Warranty requires that the manufacturer be given notice by the consumer of any defect and an opportunity to inspect defective decking. (Id.). Various Plaintiffs allege they provided notice of the alleged defects to Defendant and Defendant refused to provide coverage under the Lifetime Limited Warranty, claiming it covered only defects in “performance,” not aesthetics. (Id. ¶ 19).

Plaintiffs’ claims fall in five categories: breach of express warranty, breach of the implied warranty of merchantability, violation of various state consumer fraud statutes, breach of duty of good faith and fair dealing, and a declaratory judgment claim. Defendant’s moves to dismiss each claim for various general and specific deficiencies. The Court will address these in turn.

II. Standard of Review

In considering a Rule 12(b)(6) motion to dismiss on the pleadings, the court accepts as true all of the facts in the complaint and draws all reasonable inferences in favor of the plaintiff. Phillips v. Cnty. of Allegheny, 515 F.3d 224, 231 (3d Cir.2008). Moreover, dismissal is inappropriate even where “it appears unlikely that the plaintiff can prove those facts or will ultimately prevail on the merits.” Id.

The facts alleged, however, must be “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). The allegations in the complaint “must be enough to raise a right to relief above the speculative level.” Id. Accordingly, a complaint will survive a motion to dismiss if it provides a sufficient factual basis such that it states a facially plausible claim for relief. Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009).

For allegations sounding in fraud, Rule 9(b) imposes a heightened pleading standard: namely, “a party must state with particularity the circumstances constituting fraud or mistake,” but “[m]al-ice, intent, knowledge, and other conditions of a person’s mind may be alleged generally.” Fed.R.Civ.P. 9(b). The cir[614]*614cumstances of the fraud must be stated with sufficient particularity to put a defendant on notice of the “precise misconduct with which [it is] charged.” Lum v. Bank of America, 361 F.3d 217, 224 (3d Cir.2004).

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Bluebook (online)
82 F. Supp. 3d 608, 2015 U.S. Dist. LEXIS 10980, 2015 WL 410564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-azek-building-products-inc-njd-2015.