M.G. Longstreet, LLC v. James Hardie Building Products, Inc.

CourtDistrict Court, D. Minnesota
DecidedNovember 29, 2021
Docket0:21-cv-01213
StatusUnknown

This text of M.G. Longstreet, LLC v. James Hardie Building Products, Inc. (M.G. Longstreet, LLC v. James Hardie Building Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M.G. Longstreet, LLC v. James Hardie Building Products, Inc., (mnd 2021).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

M.G. Longstreet, LLC, Case No. 21-cv-1213 (SRN/ECW)

Plaintiff,

v. Order

James Hardie Building Products, Inc.,

Defendant.

Francis J. Rondoni and Jennifer J. Crancer, Chestnut Cambronne PA, 100 Washington Avenue South, Suite 1700, Minneapolis, MN 55401, for Plaintiff.

Wyatt S. Partridge, Foley & Mansfield, PLLP, 250 Marquette Avenue, Suite 1200, Minneapolis, MN 55401, for Defendant.

SUSAN RICHARD NELSON, United States District Judge This matter is before the Court on Defendant’s Motion to Dismiss [Doc. No. 8]. Based on a review of the files, submissions, and proceedings herein, and for the reasons below, the Court grants in part, and denies in part, the motion. I. BACKGROUND A. The Parties Plaintiff M.G. Longstreet owns three multifamily apartment buildings in Maple Grove, Minnesota. (Am. Compl. [Doc. No. 14] ¶ 2.) The three apartment buildings are known as the Arbor Glen Apartments (the “Apartments”). (Id.) Defendant James Hardie Building Products, Inc. (“James Hardie”) produces, markets, and sells fiber-cement siding products for residential homes, commercial buildings, and other structures. (Id. ¶¶ 3, 6–7.) One of James Hardie’s products is the Sentry fiber-cement plank siding panel (“Sentry Siding”). (Id. ¶ 9.)

B. The Parties’ Contract In 2002, M.G. Longstreet purchased Sentry Siding from James Hardie. (Id. ¶ 18.) The sale included a “25-Year Express Limited Transferable Product Warranty” (“Express Limited Warranty”). (Id. ¶ 10, Ex. A.) As relevant here, the Express Limited Warranty provides coverage as follows: 1. LIMITED WARRANTY COVERAGE: James Hardie Building Products, Inc. (“Hardie”) warrants . . . to the purchaser . . . that when manufactured, the Hardie Fiber-Cement Plank Siding, Panel or Soffit Product (SentryTM, the “Product”) complies with ASTM C1186, as Grade II, Type A and is free from defects in material and manufacture. When used for its intended purpose, properly installed and maintained according to Hardie’s published installation instructions, the Product for a period of 25 years from the date of purchase will (a) remain non-combustible, (b) resist damage caused by hail or termite attacks, and (c) will not crack, rot or delaminate. If during the Warranty period, any Product proves to be defective, Hardie, in its sole discretion, shall replace the defective Product before it is installed, or, during the first 10 years, reimburse the covered person for resulting losses up to twice the retail cost of the defective portion of the Product. During the 11th through the 25th year, the warranty payment shall be reduced by 6.75% each year such that after the 25th year no warranty shall be applicable . . . . Hardie’s replacement of the defective Product or granting of a refund pursuant to Section 1 of this Warranty SHALL BE THE SOLE EXCLUSIVE REMEDY available to the covered person with respect to any defect. (Id.) The Express Limited Warranty also disclaims other warranties, as outlined below: 4. DISCLAIMER: The statements in this Warranty constitute the only warranty extended by Hardie for the Product. HARDIE DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE . . . . (Id.) C. The Alleged Defects In December 2015 and November 2016, INSPEC Engineering firm inspected the Apartments. (Id. ¶ 21.) M.G. Longstreet first learned about “[d]elaminating paint and siding” at various locations and “[b]roken siding corners” from INSPEC. (Id.) INSPEC

took pictures and shared their observations with M.G. Longstreet. (Id. ¶¶ 21–22.) D. The Warranty Claim On December 2, 2016, M.G. Longstreet submitted a warranty claim to James Hardie. (Id. ¶ 23.) In support of its claim, M.G. Longstreet attached its invoices for the Sentry Siding, along with INSPEC’s photographs and findings. (Id. ¶ 24.) James Hardie

reviewed the claim. (Id. ¶ 25.) 1. Defendant’s Offer James Hardie responded to the warranty claim by offering M.G. Longstreet $86,000. (See id. ¶ 26, Ex. C.) On May 3, 2017, M.G. Longstreet requested that James Hardie explain how it calculated the offer amount. (See Am. Compl. Ex. C at 1.) James Hardie confirmed that it calculated the amount using the formula outlined in the Express Limited

Warranty. (Id.) Next, M.G. Longstreet consulted with INSPEC. (Id. ¶ 27.) Following those discussions, M.G. Longstreet obtained a siding remediation estimate (i.e., an estimate to repair and replace the Sentry Siding). (Id. ¶ 28.) The estimated cost to furnish labor and materials to (1) remove the Sentry Siding, (2) repair harm to the Apartments allegedly caused by the Sentry Siding, and (3) install new siding, totaled $1,035,715. (Id. ¶ 29.) M.G. Longstreet shared this estimate with James Hardie, which refused to pay that amount.

(Id. ¶ 30.) 2. M.G. Longstreet Replaces the Sentry Siding In late summer 2019, M.G. Longstreet replaced the Sentry Siding. (Am. Compl. ¶¶ 31–33.) During the removal, M.G. Longstreet learned “for the first time” of additional and “significantly greater damage” to the Apartments, allegedly from the Sentry Siding. (Id. ¶ 33.) In response, M.G. Longstreet hired an expert to “analyze the degraded and

defective Siding” and “render an opinion as to its cause.” (Id. ¶ 34.) E. The Complaint About 19 months later, on April 27, 2021, M.G. Longstreet filed the Complaint in Minnesota state court. (Notice of Removal [Doc. No. 1] Ex. A.) M.G. Longstreet asserts that “James Hardie has failed, refused, and/or neglected to make [M.G. Longstreet] whole for the expenses to remedy the damages sustained as a result of its faulty and negligent

workmanship.” (Am. Compl. ¶ 46.) As such, M.G. Longstreet seeks compensatory damages, costs, and attorney fees for harm suffered from the defective Sentry Siding. (Id. ¶ 99.) F. Procedural Background As noted above, M.G. Longstreet filed the Complaint in Minnesota state court. (Notice of Removal Ex. A.) The state-court Complaint, which is substantively the same as

the Amended Complaint filed with this Court [Doc. No. 14], alleges six counts: (1) Breach of Express Warranty, (2) Negligence, (3) Breach of Implied Warranty of Fitness for a Particular Purpose, (4) Breach of Implied Warranty of Merchantability, (5) Unlawful Trade Practices, and (6) False Advertising. In response, James Hardie removed the action to this Court on May 13, 2021.1

(Notice of Removal at 1–5.) One week later, James Hardie filed a motion to dismiss the Complaint under Rule 12(b)(6) of the Federal Rules of Civil Procedure. (Def.’s Mot. Dismiss at 6, 27.) The parties submitted briefing, and the Court heard argument on August 10, 2021. (See Doc. Nos. 10–11, 15–20.)

II. DISCUSSION A. Legal Standard When considering a motion to dismiss under Rule 12(b)(6), the Court accepts the facts alleged in the complaint as true, and views those allegations in the light most favorable to the plaintiff. Hager v. Arkansas Dep’t of Health, 735 F.3d 1009, 1013 (8th Cir. 2013). However, the Court need not accept as true wholly conclusory allegations or legal conclusions couched as factual allegations. Id. In addition, the Court ordinarily does not

consider matters outside the pleadings on a motion to dismiss. See Fed. R. Civ. P. 12(d). Matters outside the pleadings include “any written or oral evidence in support of or in opposition to the pleading that provides some substantiation for and does not merely reiterate what is said in the pleadings,” as well as statements of counsel at oral argument

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