In re Stucco Litigation

175 F.R.D. 210, 1997 WL 467147
CourtDistrict Court, E.D. North Carolina
DecidedAugust 12, 1997
DocketNo. 5:96-CV-287-BR(2)
StatusPublished
Cited by17 cases

This text of 175 F.R.D. 210 (In re Stucco Litigation) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Stucco Litigation, 175 F.R.D. 210, 1997 WL 467147 (E.D.N.C. 1997).

Opinion

ORDER

BRITT, District Judge.

This case is before the court on plaintiffs’ motion for class certification. Over 190 pages of briefing have been filed on this issue (not including exhibits) and a class certification hearing has been held. The matter is ripe for review.

I. Background

Plaintiffs’ first amended and consolidated complaint seeks to bring a class action on behalf of “[a]ll persons who have an ownership interest in a home or other residential structure which contains an Exterior Insulation and Finish System [“EIFS”] manufactured and/or distributed by any of the Named Defendants and installed during the January 1, 1986 through December 31, 1995 Class Period.” (First Am. & Consolidated Class Action Compl. (“Am.Compl.”) 1161.) Plaintiffs’ complaint, which names sixteen defendants, describes the nature of the case as follows:

For over 10 years, Defendants have knowingly manufactured, distributed, furnished and falsely advertised defectively designed EIFS to builders and property owners throughout the United States. As detailed below, Defendants failed to adequately design EIFS before distributing it to the general public, and failed to remove EIFS from the market or take other remedial action while knowing of and after learning of the defective nature of EIFS. EIFS is uniformly defective as designed and manufactured in the United States because, inter alia, when it is exposed to moisture under normal weather conditions, the moisture intrudes and becomes trapped between the EIFS and the structure and interior finishes of the walls. Unable to “escape,” the trapped moisture causes wood to rot and decay, and steel to corrode, and promotes mold growth in and insect infestation of wood, drywall, masonry and insulation. If unchecked, these problems ultimately result in significant structural damage to the house. In sum, notwithstanding Defendants’ representations otherwise, EIFS, as designed and furnished by the Defendants, is defective as a barrier system, because it allows damaging moisture intrusion behind the exteri- or cladding of a home.

(Id. H 2.) Plaintiffs’ complaint includes claims for (1) fraud and suppression; (2) intentional, reckless or negligent misrepresentation; (3) violation of consumer protection statutes; (4) breach of express warranty; (5) breach of implied warranty; (6) strict liability; and (7) negligence. In their briefing on the class certification issue, however, plaintiffs indicate that they will not pursue their claims for fraud or negligent misrepresentation on a classwide basis. (Pis.’ Reply to Dryvit, Thoro, Synergy, Parex, and STO’s Mem. in Opp’n to Pis.’ Mot. for Class Certification (“Pis.’ Reply to Dryvit Defs.’ Resp.”) at 17.) Plaintiffs seek a declaratory judgment, injunctive relief, and compensatory and punitive damages.

II. Discussion

The party seeking class certification bears the burden of proof. See In re A.H. Robins Co., Inc., 880 F.2d 709, 728 (4th Cir.), cert. denied sub nom., Anderson v. Aetna Cas. & Sur. Co., 493 U.S. 959, 110 S.Ct. 377, 107 L.Ed.2d 362 (1989); see also In re Am. Med. Sys. Inc., 75 F.3d 1069, 1085 (6th Cir.1996). Rule 23(a) contains four prerequisites which must be met before a class can be certified. Once the conditions of Rule 23(a) are met, the party seeking certification must also demonstrate that the class falls within one of the subcategories of Rule 23(b). The court must conduct a “rigorous analysis” of the Rule 23 prerequisites. General Tel. Co. v. Falcon, 457 U.S. 147, 161, 102 S.Ct. 2364, 2372-73, 72 L.Ed.2d 740 (1982); AH. Robins, 880 F.2d at 728.

Plaintiffs move for class certification pursuant to Fed.R.Civ.P. 23(a) and 23(b)(3). Rule 23(a) provides:

One or more members of a class may sue or be sued as representative parties on [213]*213behalf of all only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.

Fed.R.Civ.P. 23(a).

Rule 23(b) provides, in relevant part:

An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and in addition:
(3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (D) the difficulties to be encountered in the management of a class action.

Fed.R.Civ.P. 23(b).

In support of their argument for class certification, plaintiffs rely on Central Wesleyan College v. W.R. Grace & Co., 6 F.3d 177 (4th Cir.1993). In Central Wesleyan, the Fourth Circuit affirmed the district court’s conditional certification of a Rule 23(b)(3) class consisting of United States colleges and universities that had suffered property damage due to the presence of friable asbestos in their facilities. Id. at 181. The class action complaint sought compensation for the costs of controlling and eventually removing the asbestos as required by federal law. Id. The complaint also sought punitive damages. Id.

Rather than reading Central Wesleyan as a ringing endorsement of class certification, this court reads the ease as a cautious affirmance of the trial court’s decision under the abuse of discretion standard. See, e.g., id. at 180 (“Although manageability problems present concerns in.a lawsuit of this magnitude, the class mechanism may advance this action and reduce the need for repetitive litigation in this area.” (emphasis added)); id. at 182 (“[I]t is apparent to us that the verdict is still out on the utility of mass asbestos litigation procedures ... ”); id. at 185 (“While we are not unsympathetic to defendants’ arguments, we are also not prepared to conclude that the district court abused its discretion ____”); id.

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Cite This Page — Counsel Stack

Bluebook (online)
175 F.R.D. 210, 1997 WL 467147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-stucco-litigation-nced-1997.