Peruto v. Timbertech Ltd.

126 F. Supp. 3d 447, 87 U.C.C. Rep. Serv. 2d (West) 518, 2015 U.S. Dist. LEXIS 113538, 2015 WL 5089484
CourtDistrict Court, D. New Jersey
DecidedAugust 26, 2015
DocketCivil Action No. 15-2166 (JBS/JS)
StatusPublished
Cited by11 cases

This text of 126 F. Supp. 3d 447 (Peruto v. Timbertech Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peruto v. Timbertech Ltd., 126 F. Supp. 3d 447, 87 U.C.C. Rep. Serv. 2d (West) 518, 2015 U.S. Dist. LEXIS 113538, 2015 WL 5089484 (D.N.J. 2015).

Opinion

OPINION

SIMANDLE, Chief Judge:

I. INTRODUCTION

In this putative class action, Plaintiffs John M. Peruto and Lori A. Peruto contend that Defendants TimberTech Ltd. (“TimberTech”) and CPG International LLC (“CPG”) (collectively, “Defendants”) marketed their TimberTech XLM decking product line (“XLM decking”) as a high-quality, low-maintenance, and long-lasting alternative to traditional wooden decking materials. Despite Defendants’ marketing and advertising claims, Plaintiffs allege that XLM decking is prone to discoloration and fading soon after installation.

This matter comes before the Court on a motion by Defendant CPG to dismiss and to strike class allegations.1 [Docket Item 9]. CPG argues that Plaintiffs’ Complaint must be dismissed in its entirety for failure to adequately plead claims for breach of implied warranty, breach of express warranty, negligent misrepresentation, unjust enrichment, violation of the New Jersey Consumer Fraud Act (“NJCFA”), and declaratory relief. Principally, CPG argues that the alleged defect on which Plaintiffs’ express warranty claim is based is specifically excluded from coverage and that Defendants’ marketing statements are insufficient to create an express warranty. Additionally, CPG argues that Plaintiffs have not adequately alleged an actionable misrepresentation or omission to support a claim under the NJCFA, nor the requisite elements of a negligent misrepresentation claim. Plaintiffs in opposition agree to dismiss their breach of implied warranty and unjust enrichment claims, but maintain that their claims for breach of express [451]*451warranty, negligent misrepresentation, and violation of the NJCFA are sufficiently pleaded. In the alternative, Plaintiffs request leave to amend.

For the reasons discussed below, the Court will grant in part and deny in part CPG’s motion to dismiss. The Court will deny without prejudice CPG’s motion to strike class allegations.

II. BACKGROUND

A. Facts

The Court accepts as true for purposes of the instant motion the following facts from the Plaintiffs’ Complaint. [Docket Item 1].

Defendants designed, manufactured, and sold their synthetic XLM decking product as an alternative to traditional wood decking materials. (Compl. ¶ 1.) Defendants and their sales representatives advertised and marketed XLM as “easier to install, easier to maintain, and longer-lasting than wooden or other composite decking.” (Id. ¶ 14.) Plaintiffs allege that they paid a premium price for these attributes, but the product failed to perform as advertised. (Id. ¶ 15.) According to Plaintiffs, Defendants were negligent in the design, testing, and manufacture of XLM decking in a variety of ways, including the use of polyvinyl chloride (“PVC”), a major component in the XLM decking, which led to “substantial color deterioration.” (Id. ¶¶ 16-17.) Plaintiffs maintain that Defendants knew that XLM decking was prone to premature wear and discoloration as the result of numerous consumer complaints regarding product performance. (Id. ¶¶ 22-27.) Nevertheless, Defendants failed to cure the problem through warranty procedures or other means. (Id. ¶¶ 26, 27.) Plaintiffs claim that Defendants did not disclose XLM’s defects to distributors or customers and continued to sell the product for a premium price. (Id. ¶¶ 22, 24.)

Defendants provided purchasers of the XLM product a Limited 25-Year Residential Warranty (“Limited Warranty”) that expressly states the following in pertinent part:

TimberTech Limited (“TimberTech”) warrants to Purchaser that, for a period of twenty five (25) years (Residential) & ten (10) years (Commercial) from the date of the original purchase, residential or commercial as the case may be, (the “Term”), under normal use and service . conditions, that: (1) the decking Materials will be free from material defects in workmanship and materials, and will not check, split, splinter, rot or suffer structural damage from termites or fungal decay.

(Id. ¶ 20.)

Plaintiffs assert that Defendants, through product brochures, videos and internet marketing, represented that the XLM product was reliable and low-maintenance. (Id. ¶ 31.) Plaintiffs offer the following examples of Defendants’ marketing statements regarding the XLM decking material:

■ “designed to provide years of low-maintenance use and enjoyment”
• “dependable and attractive for years
• “years of outdoor living pleasure”
• “less work more life”
• “designed to withstand the elements [so] you’re not going to have to do the traditional painting and staining you would with a traditional wood deck”
• “is going to get the same consistent, high-quality board-to-board”
[452]*452• “designed to not rot, wrap or splinter and contain a 25-year warranty.”

(Id. ¶ 32.)

Plaintiffs allege that they relied on these statements when purchasing XLM decking. (Id. ¶ 37.) Moreover, Plaintiffs contend that they would not have purchased the product, paid a premium price, or installed it in their property if they knew about the deficiencies in the XLM product prior to purchase. (Id. ¶ 36.)

In May, 2012, Plaintiffs began purchasing the XLM decking for their home in Margate, New Jersey. (Id. ¶¶39, 40.) Prior to purchase, Plaintiffs and their contractor J.P Leeds, Jr. Builder, Inc. (“Leeds”) researched several decking products and decided to purchase and install XLM due to its “purported superior weathering and low maintenance properties.” (Id. ¶¶ 39, 40.) The decking began to discolor shortly after the final installation. (Id. ¶ 40.) Leeds promptly reported the discoloration to Defendants on Plaintiffs’ behalf. (Id. ¶ 41.) Defendants, however, only offered Plaintiffs a treatment solution for the XLM decking’s discoloration. (Id. ¶ 43.) Defendants refused to warrant that the treatment solution would permanently correct the problem. (Id.)

B. Procedural history

Plaintiffs filed their seven-count class action complaint against Defendants on February 11, 2015 in the Superior Court of New Jersey, Atlantic County, Law Division. Plaintiffs asserted claims for breach of implied warranty, breach of express warranty, unjust enrichment, negligent misrepresentation, violation of the NJCFA, and declaratory and injunctive relief. On March 25, 2015, CPG removed this action to the District of New Jersey pursuant to 28 U.S.C. §§ 1332(d), 1446, 1453 and the Class Action Fairness Act of 2005. [Docket Item 1]. CPG then filed the instant motion to dismiss. [Docket Item 9.] Plaintiffs filed opposition [Docket Item 21] and CPG filed a reply [Docket Item 22]. In their opposition, Plaintiffs agreed to withdraw their breach of implied warranty and unjust enrichment claims and an accompanying order will so provide.2

III. STANDARD OF REVIEW

Pursuant to Rule 8(a)(2), Fed.

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126 F. Supp. 3d 447, 87 U.C.C. Rep. Serv. 2d (West) 518, 2015 U.S. Dist. LEXIS 113538, 2015 WL 5089484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peruto-v-timbertech-ltd-njd-2015.