Pelletz v. Weyerhaeuser Co.

255 F.R.D. 537, 2009 U.S. Dist. LEXIS 1804, 2009 WL 59126
CourtDistrict Court, W.D. Washington
DecidedJanuary 9, 2009
DocketNos. C08-0334 JCC, C08-0403 JCC
StatusPublished
Cited by6 cases

This text of 255 F.R.D. 537 (Pelletz v. Weyerhaeuser Co.) 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
Pelletz v. Weyerhaeuser Co., 255 F.R.D. 537, 2009 U.S. Dist. LEXIS 1804, 2009 WL 59126 (W.D. Wash. 2009).

Opinion

ORDER GRANTING FINAL APPROVAL OF CLASS ACTION SETTLEMENT, AND DISMISSING CLASS ACTION WITH PREJUDICE

JOHN C. COUGHENOUR, District Judge.

This matter comes before the Court on Plaintiffs’ Motion for Final Approval of the Class Action Settlement (Dkt. No. 120). The Court has carefully considered the motion and all declarations and exhibits filed in support of the motion as well as the balance of the record in this case, including the arguments presented in Court at the fairness hearing on January 8, 2009. The Court hereby finds and rules as follows.

[539]*539I. BACKGROUND

This case consolidates two putative class action lawsuits (the “Pelletz” case, C08-0334JCC, and the “Jamruk” case, C08-0403JCC) against Defendants Weyerhaeuser Company and Advanced Environmental Technologies, Inc. (“AERT”) for allegedly defective deck-building products. The product at issue, ChoiceDek, is composed of a blend of plastics and recycled wood fibers. (Consolidated Master Am. Compl. ¶ 6.1 (Dkt. No. 25 at 5).) Plaintiffs allege that a defect in ChoiceDek decking and railing products manufactured between January 1, 2004, and October 1, 2006, results in fungal, mold, or mildew growth that causes extensive permanent discoloration that is not discernibly more prevalent in any particular geographical region. (Id. ¶¶ 6.3, 6.8.) Plaintiffs allege that Defendants knew about the defect but concealed it from consumers. (Id. ¶ 1.3.) Plaintiffs contend that despite knowing of this defect, Defendants marketed ChoiceDek as “virtually maintenance free” and charged a premium for this benefit. (Mot. 2 (Dkt. No. 120 at 8).)

The named Plaintiffs are residents of Florida, Illinois, New Jersey, and Washington, each of whom purchased and installed the ChoiceDek product only to find significant mold spotting on their deck within a relatively short period of time. (Consolidated Master Am. Compl. ¶¶ 2.1-2.4 (Dkt. No. 25 at 2-3).) The problems Plaintiffs encountered were allegedly not remediable by reasonable cleaning methods. (Id.) As such, the named Plaintiffs ultimately contacted counsel, who initiated extensive investigation on ChoiceDek decks around the country and obtained expert evaluation of Plaintiffs’ claims against AERT and Weyerhaeuser Company. Settlement discussions began soon after the Jamruks’ counsel contacted Defendants in 2007. (Mot. 1 (Dkt. No. 120 at 7).) Beginning in March 2008, the Pelletzes’ counsel joined the Jamruks’ counsel in completing settlement negotiations with Defendants. (Id.) In the meantime, the named Plaintiffs filed class action complaints in this Court against Defendants, first separately and then as a consolidated action. (Consolidated Master Amended Class Action Compl. (Dkt. No. 25).) By the end of summer 2008, however, the parties had reached a settlement and filed the Settlement Agreement with this Court for preliminary approval on August 21, 2008. (Settlement Agreement (Dkt. No. 40-2); Addendum (Dkt. No. 186-2) (correcting a typo).)

On September 15, 2008, the Court issued an order preliminarily certifying a class for settlement purposes, appointing lead counsel for the class, directing the issuance of notice to the class, and scheduling a fairness hearing. (Dkt. No. 50.) The parties selected The Garden City Group, Inc. to serve as the Class Notice Administrator to effectuate notice to the potential class members. (Keough Aff. ¶ 2 (Dkt. No. 136 at 2).) Because the exclusive retailer of ChoiceDek products, Lowe’s HIW, Inc., had comprehensive customer records, the parties were able to mail 387,214 class notices to notify the approximately 110,000 to 140,000 class members. Of those notices, only 13,131 were returned as undeliverable with no forwarding address. (Supplemental Keough Aff. ¶ 3 (Dkt. No. 174 at 2-3).) In addition, a class notice was published in the weekend edition of USA Today on November 7, 2008. (Keough Aff. ¶ 10 (Dkt. No. 136 at 8).) AERT also made a website available online. (Id.) A toll-free number was established to assist potential class members with questions. (Id. at ¶¶ 10-11.) The parties issued a joint press release. (Id. at 1112.) Finally, the parties complied with the notice requirements of the Class Action Fairness Act, 28 U.S.C. § 1715, with regard to notifying the appropriate state and federal officials of the proposed settlement. (Id. at ¶ 13.)

The class notice notified potential class members of a December 15, 2008, deadline by which class members could file objections or opt out of the proposed class settlement. (Notice (Dkt. No. 136 at 11).) By that date, only ninety-one potential class members opted out and only three class members objected to the settlement. (Pis.’ Mem. 1 (Dkt. No. 173 at 4).) One objector, Mr. Ted Volin, appeared at the fairness hearing on January 8, 2009, in support of his previously filed written objection. (Dkt. No. 92.) The parties argued at the hearing that the Court [540]*540should finally approve the proposed class settlement because it is fair, reasonable, and adequate, and because it was reached as a product of vigorous, arms’ length negotiations over the course of many months between competent and experienced counsel. Plaintiffs also ask the Court to grant then-motion for attorney’s fees, which the Court will address in a separate order.

II. ANALYSIS

The Court approves the following, which is based on both Plaintiffs’ counsel’s proposed order and the Court’s own reasoning.

1. Incorporation of Defined Terms. Except where otherwise noted, all capitalized terms used in this Final Order Approving Class Action Settlement and Dismissing Class Action with Prejudice (the “Final Order and Judgment”) shall have the meanings set forth in the Settlement Agreement and Addendum, which are incorporated by reference hereto. The Settlement Agreement and Addendum are expressly incorporated by reference into this Final Order and Judgment and made a part hereof for all purposes. The Settlement Agreement is attached as Appendix B. The Addendum is attached as Appendix C. For the remainder of this Final Order and Judgment, the Settlement Agreement and Addendum are collectively referred to as the “Settlement Agreement.”

2. Jurisdiction. The Court has personal jurisdiction over the parties and all Class Members, and has subject-matter jurisdiction over this action, including, without limitation, jurisdiction to approve the proposed settlement, to grant final certification of the Class, to settle and release all claims arising out of the transactions alleged in the Plaintiffs’ consolidated complaint, and to dismiss this action on the merits and with prejudice.

S. Final Class Certification. The Court finds that the requirements for class certification, for settlement purposes only, are met in the instant case. The Federal Rules require (1) numerosity, (2) commonality, (3) typicality, and (4) representivity before a class may be certified. Fed.R.Civ.P. 23(a). In addition, the putative class action must fit one of the scenarios described in Rule 23(b). Here, numerosity is satisfied because the parties estimate that the Class consists of between 110,000 and 140,000 Choi-ceDek deck owners. Additionally, Plaintiffs’ counsel has been contacted by approximately 900 potential Class members. Therefore, the Class is so numerous that joinder of all the members would be impracticable.

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Cite This Page — Counsel Stack

Bluebook (online)
255 F.R.D. 537, 2009 U.S. Dist. LEXIS 1804, 2009 WL 59126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pelletz-v-weyerhaeuser-co-wawd-2009.