Jones v. Jeld-Wen, Inc.

250 F.R.D. 685, 2008 U.S. Dist. LEXIS 51338, 2008 WL 2433213
District Court, S.D. Florida·Decided June 13, 2008·No. No. 07-22328-CIV·Published·Cited by 3 cases

Opinion

ORDER DENYING MOTION FOR CLASS CERTIFICATION

WILLIAM P. DIMITROULEAS, District Judge.

THIS CAUSE is before the Court upon Plaintiffs’ Motion for Class Certification, filed herein on March 3, 2008. [DE-112], The Court has carefully considered the Motion, Defendant Jeld-Wen’s April 7, 2008 Notice of No Position [DE-145], Third-Party Defendant Reiehhold’s April 2, 2008 Response [DE-138], Third-Party Defendant Glasslam’s April 2, 2008 Response [DE-140], Plaintiffs’ April 18, 2008 Reply [DE-153], Reichhold’s May 2, 2008 Sur-Reply [DE-161], and is otherwise fully advised in the premises.

I. BACKGROUND

A. Factual History

The instant action stems from a lengthy path of litigation revolving around glass products and resin. The Court will provide the extensive history in order to provide proper context for its ruling on the Motion for Class Certification.

Plaintiffs are Florida residents who purchased “hurricane proof’ impact-resistant windows and glass doors from Defendant Jeld-Wen. Defendant Jeld-Wen Inc. (“Jeld-Wen”) is an Oregon corporation that is in the business of manufacturing and selling glass products, including laminated glass. From 1997 to 2003, Jeld-Wen’s Pozzi and Caradco divisions manufactured wood windows and doors incorporating laminated, hurricane-resistant glass products, which were made using the “Safety-Plus” system developed and licensed by Third-Party Defendant Nebula Glass International, Inc. d/b/a Glasslam N.G.I., Inc. (“Glasslam”).

Third-Party Defendant Glasslam is a Florida corporation that supplies licensee and nonlicensee customers with raw materials and instructions to produce various laminated glass products. Laminated glass is generally made by sandwiching resin and a thin film between two pieces of glass. Glasslam licenses its patented process, called “Safety Plus I”, for making impact-resistant laminated glass.

[688]*688In 1996, Glasslam commenced a business relationship with Third-Party Defendant Reiehhold, Inc. (“Reichhold”). Reichhold is a Delaware corporation, with manufacturing plants in Florida, that produces resin for various applications. During the course of their relationship, Reichhold supplied Glass-lam with drums of resin through a distributor, Polygard. Glasslam used some of the resin but sold the remainder to its customers. Reichhold supplied Glasslam with three different resins in the following order (though sales of all three resins overlapped): (1) Resin 32038; (2) Resin 32029; and (3) Resin 32038-45. Glasslam discovered in October 2001 that Reichhold had been making its resin without Tinuvin 328, an ultra-violet light absorber Glasslam had required. The parties’ business relationship terminated in approximately December 2001, and no other resin was sold by Reichhold to Glasslam after that time. Glasslam continued to sell Reich-hold resin to its customers through February 2002, though it added Tinuvin to all Reich-hold resin sold to third parties.

One of the customers to whom Glasslam sold Reiehhold resin was Defendant Jeld-Wen. In June 1997, Glasslam and Jeld-Wen had entered into an agreement wherein Glasslam licensed its Safety-Plus system to Jeld-Wen and agreed to sell Safety-Plus products for the manufacturing of laminated impact-resistant glass at Jeld-Wen’s Pozzi facility. In August 1998, Cardinal IG Company (“Cardinal”), a Minnesota corporation, also entered into a contract with Glasslam for the licensing rights to make, use, and sell the resin and Safety-Plus products. Jeld-Wen and Cardinal then purchased resins from Glasslam under the terms of their Agreements. Jeld-Wen incorporated the resins in the manufacture of impact-resistant glass for use in hurricane-prone regions. Cardinal manufactured, and sold to Jeld-Wen, Safety Plus glass containing the resin. When prepared properly, the impact resistant glass was meant to perform for at least ten years. However, Jeld-Wen began receiving complaints from customers as to failures in the laminated glass — the glass was delaminating and discoloring. Glasslam has since admitted that the resin is defective, due to the absence of Tinuvin and because the resin was “undercooked.”

B. Procedural History

1, Glasslam I

On April 5, 2002, Glasslam filed a complaint against Reichhold in the Circuit Court for the Seventeenth Judicial Circuit in and for Broward County, Florida, which Reieh-hold removed to federal court on May 22, 2002. Nebula Glass Int’l, Inc. v. Reichhold, Inc., 02-60703-CIV-DMITROULEAS (S.D. Fla. filed May 22, 2002) (hereinafter “Glass-lam, I ”). On May 23, 2002, Glasslam filed an Amended Complaint in Glasslam I asserting claims for: (I) Breach of Contract; (II) Breach of Express Warranty; (III) Breach of Implied Warranty; (TV) Breach of Implied Warranty of Fitness for a Particular Purpose; and (V) Fraud. Primarily, Glass-lam’s Amended Complaint alleged that Glass-lam required Reichhold to insert an ultraviolet light blocker called “Tinuvin 328” in the resin supplied by Reichhold. Glasslam contended that the absence, or incorrect percentage, of Tinuvin causes various problems including the decreased efficiency of hurricane resistant laminated glass. Glasslam contended that as a proximate result of Reichhold not supplying resin in accordance with Glasslam’s specifications, Glasslam suffered known damages to several projects, a loss of business, and potential exposure for faulty glass.

On December 3, 2002, this Court granted Reiehhold’s motion to dismiss Counts IV and V of the Amended Complaint in Glasslam I. The Court dismissed the fraud count based on Florida’s economic loss rule and the implied warranty for a particular purpose count based on insufficient allegations of Glasslam’s reliance on Reichhold’s skill and judgment. See Glasslam I, 02-60703-CTV (S.D.Fla. Dec. 3, 2002) [DE-14]. A jury trial on Plaintiffs remaining claims for breach of contract, breach of express warranty, and breach of implied warranty was held before this Court in May 2004. The jury found in favor of Plaintiff on all three counts and awarded damages for each of the three Reichhold resins at issue for out-of-pocket expenses, unpaid customers claims for future replace[689]*689ment of laminated glass, and lost profits. The Court entered final judgment for Plaintiff in the amount of $22,500,000.00. Reich-hold appealed the final judgment on the issue of damages only. On June 30, 2006, the Eleventh Circuit Court of Appeals affirmed the judgment. See Nebula Glass Int’l Inc. v. Reichhold, Inc., 454 F.3d 1203 (11th Cir. 2006).

2. Glasslam II

Glasslam filed another Complaint against Reichhold on April 29, 2005, asserting claims for: (I) Breach of Contract; (II) Breach of Express Warranty; (III) Breach of Implied Warranty; (IV) Fraud; (V) Negligent Misrepresentation; and (VI) Fraud in the Inducement, alleging facts identical to those in Glasslam I. See Nebula Glass Int’l, Inc. v. Reichhold, Inc., Case No. 05-60704-CIV-DIMITROULEAS (S.D. Fla. filed Apr. 29, 2005) (hereinafter “Glasslam II”). In that case, Glasslam sought damages in addition to those awarded in Glasslam I for claims that were not yet ripe at the time that Glasslam I was filed. In Glasslam II,

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Jones v. Jeld-Wen, Inc., 250 F.R.D. 685, 2008 U.S. Dist. LEXIS 51338, 2008 WL 2433213 (S.D. Fla. 2008).

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