King County v. Viracon Inc

CourtDistrict Court, W.D. Washington
DecidedJuly 20, 2021
Docket2:19-cv-00508
StatusUnknown

This text of King County v. Viracon Inc (King County v. Viracon Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
King County v. Viracon Inc, (W.D. Wash. 2021).

Opinion

1 The Honorable Barbara J. Rothstein

5 IN THE UNITED STATES DISTRICT COURT 6 FOR THE WESTERN DISTRICT OF WASHINGTON AT SEATTLE 7

8 KING COUNTY,

9 Plaintiff, Civil Action No. 2:19-cv-508-BJR v. 10

ORDER GRANTING MOTION FOR 11 VIRACON, INC., SUMMARY JUDGMENT

12 Defendant.

14 I. INTRODUCTION 15 At the center of this lawsuit is “the Chinook Building”, an office building located in 16 Seattle, Washington that was built in 2007 pursuant to a private-public partnership between Goat 17 Hill Properties (“Goat Hill”), an investment builder, and Plaintiff King County, a government 18 19 entity. The Chinook Building has what the parties refer to as a curtain wall exterior—an exterior 20 comprised of insulating glass units (“IGUs”) that were manufactured and sold by Defendant 21 Viracon, Inc. (“Viracon”). King County alleges that some of the IGUs on the Chinook Building 22 have developed a film that partially obstructs the view from the Building’s windows and, as such, 23 must be replaced. King County filed this lawsuit against Viracon to recover the cost to remove 24 and replace the IGUs, as well as other damages. 25 Currently before the Court is Viracon’s motion for summary judgment in which it moves 26 27 to dismiss the operative complaint in its entirety. Dkt. No. 68. King County opposes the motion. 1 Dkt. No. 88. Having heard oral argument, reviewed the motion and opposition thereto, the record 2 of the case, and the relevant legal authority, the Court will grant the motion. The reasoning for the 3 Court’s decision follows. 4 II. BACKGROUND 5 A. Procedural History 6 7 Initially King County brought this action against Viracon, Quanex IG Systems, Inc. 8 (“Quanex”), and Truseal Technologies, Inc. (“Truseal”), alleging three causes of action: (1) 9 violation of the Washington Products Liability Act (“WPLA”), (2) common law fraud, and (3) 10 violation of the Washington Consumer Protection Act (“WCPA”). Dkt. No. 1. King County 11 amended the complaint in May 2019 and each defendant moved to dismiss the claims against it. 12 Dkt. Nos. 12, 29, and 32. This Court granted Quanex and Truseal’s joint motion to dismiss in its 13 entirety in October 2019 and partially granted Viracon’s motion in December 2019, dismissing 14 15 the WPLA claim, but denying the motion as to the common law fraud and WCPA claims. Dkt. 16 Nos. 53-54. Viracon now moves for summary judgment on these two remaining claims. Dkt. No. 17 68. 18 B. Factual Background 19 1. Viracon’s IGUs 20 Viracon manufactures IGUs for distribution and sale throughout the United States. 21 Viracon’s IGUs consist of two or more lites (i.e. panes) of glass separated by a metal spacer 22 23 enclosing a hermetically sealed air space. To create the hermetically sealed space, the IGUs are 24 fabricated using a primary sealant made from polyisobutylene (“PIB-based sealant”). The PIB- 25 based sealant is applied to the spacer bar that separates the two lites of glass. The PIB-based 26 sealant does not serve a structural purpose; rather, it is utilized to hold the lites in place during the 27 1 manufacturing process before a secondary structural silicone sealant is added. Historically, 2 Viracon fabricated IGUs using only black PIB-based sealants, but beginning in 2002, Viracon 3 added gray PIB-based sealant as an option for its customers. 4 2. The Chinook Building 5 In 2005, King County entered a private-public partnership with Goat Hill whereby King 6 7 County agreed to lease land the County owned in downtown Seattle to Goat Hill and Goat Hill, in 8 turn, agreed to develop and build an office building on the land—the Chinook Building. Goat Hill 9 and King County also agreed that Goat Hill would lease the Chinook Building to King County 10 until December 31, 2044 at which time, ownership of the Building would revert to King County. 11 King County paid for the construction of the Chinook Building by issuing tax-exempt bonds. 12 Thereafter, Goat Hill entered into a Development Agreement with Wright Runstad 13 Associates (“Wright Runstad”) to act as the developer for the Chinook Building and Wright 14 15 Runstad entered into an agreement with Zimmer Gunsal Frasca (“ZGF”) to be the project 16 architect and with Turner Construction to act as the general contractor. Turner Construction, in 17 turn, subcontracted with Walters & Wolf to construct and install the curtain wall on the Chinook 18 Building. 19 Walters & Wolf issued purchase orders to Viracon to fabricate approximately 3,000 IGUs 20 for the Chinook Building’s curtain wall. The purchase orders dictated that the IGUs were to be 21 manufactured using gray PIB-based sealant. The IGUs were manufactured and delivered in 2006 22 23 and early 2007 and construction of the Building was substantially complete by August 2007. Goat 24 Hill received a Certificate of Occupancy on September 25, 2007. 25 26

27 1 3. The Filming Defect on the IGUs 2 King County alleges that ten years later, on October 11, 2011, members of its Facilities 3 Management Division noticed a gray film near the edges of some of the IGUs and it notified 4 Viracon of the issue on October 27, 2011. King County further alleges that it conducted a 5 photographic survey of the Chinook Building seven years later in October 2018, which revealed 6 7 that “film formation is present with varying degrees of severity on all of the Building’s nearly 8 3,000 [IGUs].” Dkt. No. 12 at 5.9. 9 Viracon does not contest the existence of the film on some of the IGUs. Nor does Viracon 10 contest the cause of the film. Rather, the parties agree that the gray PIB-based sealant used on the 11 IGUs was improperly formulated and did not contain UV stabilizers to protect the sealant from 12 molecular degradation due to sunlight exposure. Thus, when exposed to sunlight over time, the 13 gray PIB-based sealant began to degrade, causing a film to form on some of the IGUs. Viracon 14 15 alleges that it did not know that the gray PIB-based sealant lacked a UV stabilizer until 2013 16 when the sealant’s manufacturer, Truseal, disclosed this information to Viracon. 17 III. STANDARD OF REVIEW 18 The standard for summary judgment is familiar: “Summary judgment is appropriate when, 19 viewing the evidence in the light most favorable to the nonmoving party, there is no genuine 20 dispute as to any material fact.” Zetwick v. County of Yolo, 850 F.3d 436, 440 (9th Cir. 2017) 21 (quoting United States v. JP Morgan Chase Bank Account No. Ending 8215, 835 F.3d 1159, 1162 22 23 (9th Cir. 2016)). A court’s function on summary judgment is not “to weigh the evidence and 24 25 26 27 1 determine the truth of the matter but to determine whether there is a genuine issue for trial.” 2 Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249 (1986). 3 IV. DISCUSSION 4 King County charges Viracon with knowingly misrepresenting that IGUs manufactured 5 with gray PIB-based sealant were functionally equivalent to IGUs manufactured with black PIB- 6 7 based sealant, and but for this misrepresentation, IGUs with gray PIB-based sealant would not 8 have been purchased for the Chinook Building. King County alleges that it has been damaged by 9 Viracon’s alleged misrepresentation because the IGUs on the Chinook Building now need to be 10 replaced due to the faulty gray PIB-based sealant. King County further alleges that Viracon’s 11 actions not only provide the basis for a common law fraud claim but also a claim under the 12 Washington Consumer Protection Act. The Court will address each of these claims below. 13 A.

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King County v. Viracon Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-county-v-viracon-inc-wawd-2021.