McAdams v. Monier, Inc. CA3

CourtCalifornia Court of Appeal
DecidedOctober 14, 2015
DocketC073435
StatusUnpublished

This text of McAdams v. Monier, Inc. CA3 (McAdams v. Monier, Inc. CA3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McAdams v. Monier, Inc. CA3, (Cal. Ct. App. 2015).

Opinion

Filed 10/14/15 McAdams v. Monier, Inc. CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Placer) ----

TIM MCADAMS, C073435

Plaintiff and Appellant, (Super. Ct. No. S-CV-0016410)

v.

MONIER, INC.,

Defendant and Respondent.

This case is before us for the third time. The third time’s not always the charm. Once again, this matter is going back.

This case is a misrepresentation-based class action under the Consumers Legal Remedies Act (CLRA) (Civ. Code, §§ 1750 et seq., 1770, subds. (a)(5) & (7)) and the unfair competition law (UCL) (Bus. & Prof. Code, §§ 17200 et seq., 17500). Plaintiff Tim McAdams, on behalf of himself and all others similarly situated (plaintiff), alleges that defendant Monier, Inc. (Monier), on its own and through unwitting intermediaries in

1 the housing sale and construction industries (parroting Monier statements or information), represented that Monier’s slurry-coated concrete roof tiles would last 50 years, would have a permanent color, and would be maintenance-free, when, in fact, Monier knew, but failed to disclose, that the color composition of its roof tiles would erode away well before the end of the represented 50-year lifespan. In short, as we said on remand in McAdams v. Monier, Inc. (2010) 182 Cal.App.4th 174 (McAdams II),1 “[t]he focus of the CLRA and the UCL class actions is on an alleged single, specific material misrepresentation involving a failure to disclose the particular fact of premature color erosion to bare concrete . . . ” (id. at p. 192).

Here, we conclude the trial court properly excluded a plaintiff expert’s statistical sampling testimony concerning class size, but improperly determined that this testimony also constituted the evidence of class liability and class damages. Accordingly, we shall reverse the judgment and the award of costs to Monier, and remand the matter for the class size to be determined and for further proceedings based on that figure.

FACTUAL AND PROCEDURAL BACKGROUND

Our first two encounters with this case concerned class certification and bookended an intervening California Supreme Court case—In re Tobacco II Cases (2009) 46 Cal.4th 298 (which concerned issues of standing under the UCL in light of a 2004 initiative measure, Prop. 64). From these encounters, we ultimately concluded that the trial court erred in denying class certification to the CLRA and the UCL classes; and we agreed with Massachusetts Mutual Life Ins. Co. v. Superior Court (2002) 97 Cal.App.4th 1282, 1293, that an “ ‘inference of common reliance’ ” may be applied to

1 In light of the substantial prior history of this case, and for the sake of clarity, we shall refer to our February 24, 2010 opinion on remand as McAdams II. (McAdams II, supra, 182 Cal.App.4th 174.) An unpublished opinion filed on May 30, 2007 (case No. C051841) constitutes McAdams I; today’s opinion represents McAdams III.

2 a CLRA class that alleges a material misrepresentation consisting of a failure to disclose a particular fact in light of other information that is disclosed. (McAdams II, supra, 182 Cal.App.4th at pp. 178-179.)

In McAdams II, in light of this “ ‘inference of common reliance,’ ” we also added the following “proviso” to the definition of the CLRA and UCL classes: “[T]he members of these classes, prior to purchasing or obtaining their Monier roof tile product, had to have been exposed to a statement along the lines that the roof tile would last 50 years, or would have a permanent color, or would be maintenance-free.” (Id. at pp. 178-179; see id. at p. 184; see also In re Tobacco II Cases, supra, 46 Cal.4th at p. 324.) This “proviso” was based on the principle of law that fraud or deceit, in the CLRA (and the UCL) context, may consist of the suppression of a known fact (i.e., premature color erosion) by one who gives information of other facts (i.e., 50-year life, permanent color, or maintenance-free), which are likely to mislead given the suppression of that known fact. (McAdams II, supra, 182 Cal.App.4th at p. 185.)

The CLRA and UCL classes essentially comprised Californians who owned homes for personal use with slurry-coated roof tiles sold by Monier between January 1978 and August 14, 1997 (or who previously owned such a home and paid to replace or repair such tiles), and who satisfied the McAdams II proviso. (See McAdams II, supra, 182 Cal.App.4th at pp. 179-180.)

To determine whether someone satisfied the McAdams II proviso, plaintiff employed a statistical expert, Gary Lorden, Ph.D. Dr. Lorden’s statistical sampling method used a sample of 22 individuals who owned homes with the roof tiles at issue, and attempted to extrapolate from this sample the number of individuals who had been exposed (out of 127,746, the estimated number of California homes with the roof tiles at issue, a number determined by a different expert) to at least one of the three Monier statements in “the proviso,” prior to purchasing or obtaining their Monier roof tiles. We

3 will discuss Dr. Lorden’s statistical sampling method in greater detail when we discuss the trial court’s exclusion of his testimony, but this is as far as we need to go now.

Trial began in October 2012 and lasted 31 days.

To prove Monier’s liability, plaintiff deposed the 22 homeowners in the sample Dr. Lorden used and had 16 of them, along with class representative Tim McAdams and three other homeowners, testify at trial. These witnesses testified essentially (1) they were told, most commonly from intermediaries in the housing industry but occasionally from Monier literature, that their slurry-coated Monier roof tiles would last 50 years, or would retain permanent color, or would be maintenance-free; and (2) they relied on these representation(s) to their detriment, as the color of their roofs eroded prematurely, usually to bare, gray concrete. Plaintiff also (1) had nine former Monier employees testify, especially regarding Monier’s relevant marketing practices; (2) presented Monier marketing literature on the slurry-coated roof tiles; (3) presented a damages expert, Phillip Waier, who opined that the average cost to recoat a Monier tile roof is $3,705; and (4) presented an accounting expert, Clifford Kupperberg, who estimated the total number of home roofs in California with the Monier slurry-coated tiles at issue at 127,746.

Monier countered at trial with testimony from (1) six (of the 22) sampled homeowners not called by plaintiff as well as 31 additional homeowners (via deposition testimony), (2) several former Monier employees, and (3) two experts of its own (who criticized plaintiff’s “proviso” sampling method).

The jury, in a verdict form with special interrogatories, found that Monier made a material misrepresentation to plaintiff—i.e., the Monier slurry-coated roof tiles would last 50 years, or would have permanent color, or would be maintenance-free, while failing to disclose that the color coat would deteriorate in less than 50 years—and that plaintiff relied upon this misrepresentation to its detriment (damage). Using Dr. Lorden’s statistical sampling method, the jury found there were 2,000 class members. The jury

4 awarded plaintiff $7.41 million in damages (the class size of 2,000 multiplied by $3,705—the average cost to recoat a Monier slurry-coated tile roof). This amount of damages constituted a small portion of the class size and the damages that plaintiff had sought.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Connecticut v. Doehr
501 U.S. 1 (Supreme Court, 1991)
Brinker Restaurant Corp. v. Superior Court
273 P.3d 513 (California Supreme Court, 2012)
Nally v. Grace Community Church
763 P.2d 948 (California Supreme Court, 1988)
In Re Tobacco II Cases
207 P.3d 20 (California Supreme Court, 2009)
McAdams v. MONIER, INC.
182 Cal. App. 4th 174 (California Court of Appeal, 2010)
Lockheed Litigation Cases
10 Cal. Rptr. 3d 34 (California Court of Appeal, 2004)
Bell v. Farmers Insurance Exchange
9 Cal. Rptr. 3d 544 (California Court of Appeal, 2004)
Massachusetts Mutual Life Insurance v. Superior Court
119 Cal. Rptr. 2d 190 (California Court of Appeal, 2002)
Duran v. U.S. Bank National Assn.
325 P.3d 916 (California Supreme Court, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
McAdams v. Monier, Inc. CA3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcadams-v-monier-inc-ca3-calctapp-2015.