Jeld-Wen, Inc. v. Nebula Glasslam International, Inc.

248 F.R.D. 632, 2008 U.S. Dist. LEXIS 11005, 2008 WL 420507
CourtDistrict Court, S.D. Florida
DecidedFebruary 14, 2008
DocketNo. 07-22326-CIV
StatusPublished

This text of 248 F.R.D. 632 (Jeld-Wen, Inc. v. Nebula Glasslam International, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeld-Wen, Inc. v. Nebula Glasslam International, Inc., 248 F.R.D. 632, 2008 U.S. Dist. LEXIS 11005, 2008 WL 420507 (S.D. Fla. 2008).

Opinion

I. INTRODUCTION

ROBIN S. ROSENBAUM, United States Magistrate Judge.

This matter comes before the Court upon Plaintiff Jeld-Wen, Inc.’s Motion for Issuance of a Protective Order [D.E. 81] and Defendants Nebula Glass International, Inc., and Reiehhold, Inc.’s Motion to Establish a Protocol for Field Inspections and Preservation of Evidence [D.E. 93], The Court has carefully reviewed the parties’ Motions, all responsive and supporting filings thereto, the record in this ease, and has heard argument of counsel at a hearing held on February 4, 2008, on this and other motions in this matter. Additionally, the Court is otherwise fully advised in the premises and, for the reasons articulated below, now GRANTS IN PART and DENIES IN PART both Motions.

II. BACKGROUND

A. The Underlying Facts

In this case, Plaintiff Jeld-Wen, Inc. (“Jeld-Wen”), an Oregon corporation, sues Defendants Reiehhold, Inc. (“Reiehhold”), a Delaware corporation, Nebula Glass International, Inc. (“Glasslam”), a Florida corporation, and Stephen Howes, the owner of Glasslam. D.E. 109-2, ¶¶ 1-4. Although the Second Amended Complaint alleges twenty different counts, the nucleus of facts giving rise to all of these claims centers around the delamination and yellowing of hurricane impact resistant glass sold by Plaintiff Jeld-Wen.

More specifically, Jeld-Wen entered into a contract with Glasslam under which Glasslam sold Jeld-Wen certain resin and other glass products and licensed to Jeld-Wen Glass-lam’s patented process of producing impact [634]*634resistant glass, called Safety Plus 1 glass (“Safety Plus”). Jeld-Wen then manufactured windows and doors containing hurricane impact resistant glass made through the Safety Plus creation process, which involved sandwiching together a piece of glass, resin, a thin piece of polyethylene terephthalate polyester (“PET”) film, more resin, and another piece of glass. When prepared properly with effective ingredients, the impact resistant glass was supposed to function for at least ten years. Instead, however, Jeld-Wen’s customers began experiencing Safety Plus failures in the form of delamination and discoloration of the glass well before ten years after installation had elapsed.

As it turned out, the resin Glasslam sold to Jeld-Wen was defective in that it either did not contain any ultraviolet light blocker, or it contained too little or ineffective versions of ultraviolet light blocker. Additionally, the resin had not been cooked to the proper temperature. Consequently, sunlight on the Safety Plus glass could cause the resin to fail, resulting in delamination and discoloration. Glasslam purchased the resin it sold to Jeld-Wen from Defendant Reichhold, which manufactured the product.

B. The Procedural History

1. Glasslam I

Upon receiving complaints about delamination and discoloration from customers other than Jeld-Wen, Glasslam investigated and discovered the problems with Reichhold’s resin. Nebula Glass Int’l, Inc. v. Reichhold, Inc., 454 F.3d 1203, 1206 (11th Cir.2006) (“Glasslam I”). Thus, in 2002, Glasslam filed suit against Reichhold for damages sustained as a result of Reichhold’s defective resin. Id. The case fell to Judge Dimitrou-leas, within this Court.

Before trial, this Court limited Glasslam to presenting at trial any future replacement claims unrelated to any of the specific customer complaints Glasslam had identified in its Rule 26, Fed.R.Civ.P., disclosures and interrogatory answers. Accordingly, at the trial, this Court instructed the jury as follows: “Glasslam may only seek to recover damages for those specific claims which have been presented to you during this trial. You should not consider at this time any damages for future claims which have not been specifically presented in this trial.” Id. at 1209. The jury returned a verdict of $22,500,000.00 for Glasslam, which was comprised of $1,271,379.00 in out-of-pocket damages, $14,-665.621.00 in unpaid customer claims, and $6,563,000.00 in lost profits. Id. at 1207. On appeal, the Eleventh Circuit affirmed the judgment.

2. Glasslam II

Following the conclusion of Glasslam I, Glasslam filed a second lawsuit against Reichhold in Case No. 05-60704-CIV-DIMI-TROULEAS (S.D.Fla.) (“Glasslam /”). In that action, Glasslam sought compensation for damages incurred as a result of Reieh-hold’s defective resin, relating to glass not claimed in Glasslam I. Towards this end, Glasslam alleged six counts in its complaint, including the following three: breach of contract (Count I), breach of express warranty (Count II), and breach of implied warranty (Count III).

In its Order on the parties’ cross-motions for summary judgment, the Court held that Reichhold was collaterally estopped from re-litigating the breach-of-duty elements of Counts I, II, and III. Glasslam II, D.E. 108, p. 14. Rather, the ultimate fact determined in Glasslam I — that Reichhold’s resin was defective — could not be disturbed and continued to bind the parties. Id. “Whether the defective resin was the proximate cause of the particular claims for the particular windows” at issue in Glasslam II, however, was not litigated, and, thus, remained for trial. Id. at p. 16.

Instead of proceeding to trial, however, the parties settled the matter and entered into a stipulation of dismissal with prejudice. Glasslam II, D.E. 132. Accordingly, the Court dismissed the action with prejudice. Glasslam II, D.E. 134.

S. Jeldr-Wen I

Before Glasslam and Reichhold settled Glasslam II, Jeld-Wen sued Glasslam, among others, in Case No. 05-60860-CIV-DIMITROULEAS (S.D.Fla.) (“Jeldr-Wen [635]*635I”). Glasslam then filed a third-party complaint against Reiehhold in that action. Jeldr-Wen I, D.E. 32.

In Jeld-Wen I, Jeld-Wen alleged seven counts against Glasslam, including the following three: breach of contract (Count I), breach of express warranty (Count II), and breach of implied warranty of merchantability (Count III). Jeld-Wen I, D.E. 1. Glass-lam, in turn, alleged eight claims against Reiehhold, including, among others, breach of contract (Count I), breach of express warranty (Count II), and breach of implied warranty (Count III). Jeldr-Wen I, D.E. 305, p. 6.

To address delamination of the Safety Plus glass, Jeld-Wen instituted a process by which it received customer complaints and then scheduled inspections of all Safety Plus glass in the windows and doors of the structure. Jeldr-Wen I, D.E. 74, p. 3. If delamination existed, Jeld-Wen established a time for repair and replacement of the glass at issue. Id. Jeld-Wen originally invited representatives of the Jeld-Wen I defendants to attend the initial inspections under certain rules set forth by Jeld-Wen, which Jeld-Wen stated that it created in order to minimize disruption to its customers. Id. Reiehhold agreed to the protocol but reserved the right to conduct further discovery in the future. Id.

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Related

Nebula Glass International, Inc. v. Reichhold, Inc.
454 F.3d 1203 (Eleventh Circuit, 2006)
Hickman v. Taylor
329 U.S. 495 (Supreme Court, 1947)
Schlagenhauf v. Holder
379 U.S. 104 (Supreme Court, 1965)
Larry Bonner v. City of Prichard, Alabama
661 F.2d 1206 (Eleventh Circuit, 1981)

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Bluebook (online)
248 F.R.D. 632, 2008 U.S. Dist. LEXIS 11005, 2008 WL 420507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jeld-wen-inc-v-nebula-glasslam-international-inc-flsd-2008.