SUN CHEMICAL CORPORATION v. FIKE CORPORATION

CourtDistrict Court, D. New Jersey
DecidedJune 1, 2022
Docket2:13-cv-04069
StatusUnknown

This text of SUN CHEMICAL CORPORATION v. FIKE CORPORATION (SUN CHEMICAL CORPORATION v. FIKE CORPORATION) 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
SUN CHEMICAL CORPORATION v. FIKE CORPORATION, (D.N.J. 2022).

Opinion

Not for Publication

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

SUN CHEMICAL CORPORATION,

Plaintiff, Civil Action No. 13-4069 v. OPINION FIKE CORPORATION AND SUPPRESSION SYSTEMS INCORPORATED,

Defendants.

John Michael Vazquez, U.S.D.J.

This case arises from an explosion that occurred at Plaintiff Sun Chemical Corporation’s (“Sun”) ink manufacturing plant in East Rutherford, New Jersey. Plaintiff alleges that Defendant Fike Corporation (“Fike”) and Defendant Suppression Systems, Inc., (“SSI”) (collectively, “Defendants”) violated New Jersey’s Consumer Fraud Act (“CFA”) when Defendants misrepresented the characteristics of their product as protective against certain fires and explosions. Currently pending is Defendants’ appeal of Magistrate Judge Kiel’s decision permitting Plaintiff to amend the Complaint to include allegations as to “the alarm theory.” D.E. 272. The Court reviewed all submissions,1 and considered the motion without oral argument pursuant to Fed. R. Civ. P. 78(b) and L. Civ. R. 78.1(b). For the reasons that follow, Judge Kiel’s decision is affirmed.

1 In this Opinion, Plaintiff’s Complaint (D.E. 1) will be referred to as “Compl.” Defendants’ brief in support of their appeal (D.E. 272) will be referred to as “Defs. Br.” Plaintiff’s brief in opposition (D.E. 276) will be referred to as “Pl. Opp. Br.” Defendants’ reply brief (D.E. 277) will be referred to as “Defs. Reply.” I. BACKGROUND

This case has a lengthy history, and the Court only recounts the relevant history as necessary resolve the current appeal. Plaintiff manufactures inks. Compl. ¶ 8. SSI sells and installs explosion and fire protection systems. Id. ¶ 14. In the beginning of 2011, Plaintiff considered purchasing and implementing a new dust collection system, including an explosion protection system with isolation and suppression capabilities, for its black ink pre-mix operations in East Rutherford, New Jersey. Id. ¶¶ 10-11. In March of that year, representatives of Plaintiff and SSI, a wholly owned subsidiary of Fike, began communicating about explosion suppression systems. Id. ¶¶ 5, 13. Plaintiff expected any system that SSI recommended would comply with National Fire Protection Association (“NFPA”) Standards 69 and 654. Id. ¶ 16. SSI sent Sun marketing materials regarding Fike’s systems, and representatives of both Defendants met with Plaintiff at its facility in East Rutherford. Id. ¶¶ 21, 27. Defendants continued to send information and proposals to Sun for over a year. Id. ¶ 29. Defendants included two proposals that represented that a particular system

had a component system that would satisfy standards 69 and 654 promulgated by the NFPA. Id. ¶ 30. Because Plaintiff lacked Defendants’ technical knowledge, Plaintiff relied on Defendants’ representations during the sales process. Id. ¶ 34. In May 2012, Plaintiff bought a dust collection system from Defendants. Id. ¶ 36. It was installed between June and September of 2012. Id. On, October 9, 2012, Plaintiff began regular operations with the new dust collection system. Id. ¶ 47. At approximately 1:00 p.m., the system failed, and an explosion occurred, injuring seven of Plaintiff’s employees and causing extensive property damage that required Plaintiff to shut down operations in East Rutherford for at least several months. Id. ¶¶ 47-51. In its summary judgment submissions, Plaintiff claimed that Defendants’ misrepresentations cost Plaintiff $1,264,167.05 in workers’ compensation costs; $1,976,471.66 in administrative costs; $227,162.45 in additional labor costs; $958,699.16 in distribution costs; $219,506.42 in property-related costs; and $528,566.85 in litigation costs. D.E. 215 at 6 (citing Plaintiff’s Statement of Material Facts ¶¶ 141-147, 152-154).

II. PROCEDURAL HISTORY

On July 1, 2013, Plaintiff filed its initial Complaint. D.E. 1. Plaintiff alleged that Defendants violated the New Jersey Consumer Fraud Act (“CFA”), N.J. Stat. Ann. § 56:8-1 et seq., by engaging “in unconscionable commercial practices, fraud, false pretenses, false promises, misrepresentations, and the knowing concealment, suppression, or omission of material facts” related to promises made about the performance of the system. Compl. at ¶¶ 66-75. The parties completed fact discovery on May 29, 2015. See D.E. 73. On June 29, 2016, Plaintiff served the expert reports of Dr. Patrick F. Murphy and Dr. Timothy Myers. D.E. 276-3 at 2; D.E. 276-4 at 2. Dr. Murphy was deposed on August 19, 2016, and Dr. Myers was deposed on September 21, 2016. D.E. 276-18; D.E. 276-19. Plaintiff and Defendants moved for summary judgment in February 2017, D.E. 167; D.E. 168, and the Court granted Defendants’ motion and denied Plaintiff’s motion in December 2017, D.E. 215; D.E. 216. Plaintiff appealed to the United States Court of Appeals for the Third Circuit on January 9, 2018. D.E. 219. The parties finished their appellate briefing in August 2018 and the Third Circuit heard oral argument in January 2019. D.E. 253 (“Mag. Op.”) at 2. On April 18, 2019, the Third Circuit certified questions of New Jersey law regarding the interplay between the CFA and the New Jersey Products Liability Act, N.J. Stat. Ann. § 2A:58C-1, et seq., to the Supreme Court of New Jersey. Sun Chem. Corp. v. Fike Corp., No. 18-1062, 2019 WL 9525200, at *1 (3d Cir. Apr. 18, 2019). The Supreme Court of New Jersey issued an opinion on July 29, 2020. Sun Chem. Corp. v. Fike Corp., 235 A.3d 145 (N.J. 2020). The Third Circuit then, on November 27, 2020, issued an opinion affirming in part and reversing in part this Court’s summary judgment decision. Sun Chem. Corp. v. Fike Corp., 981 F.3d 231 (3d Cir. 2020). The Third Circuit declined to rehear the case on December 22, 2020. Mag. Op. at 2. The Third Circuit’s

mandate was entered on the Court’s docket on December 30, 2020. D.E. 227. On July 26, 2021, Defendants moved to dismiss the Complaint or to prevent Plaintiff from proceeding under “the alarm theory.” D.E. 234 at 2. On August 9, 2021, Plaintiff cross-moved pursuant to Federal Rule of Civil Procedure 15(a)(2) to amend the Complaint to add specific allegations regarding the alarm theory. D.E. 235-1 at 15; see also D.E. 236-1 (proposed amended complaint). The Court administratively terminated Defendants’ motion while Judge Kiel decided the cross-motion. D.E. 238. While Plaintiff’s motion to amend was pending, Defendants filed motions to strike three of Plaintiff’s experts pursuant to Federal Rule of Evidence 702. D.E. 245; D.E. 246; D.E. 247. Plaintiff thereafter filed its own motion pursuant to Rule 702. D.E. 248.

Those motions have not yet been decided. On November 15, 2021, Magistrate Judge Kiel granted Plaintiff’s motion to amend, allowing Plaintiff filed to file an amended complaint as to the alarm theory. D.E. 253. Defendants then filed and withdrew a motion for reconsideration before Judge Kiel, D.E. 257; D.E. 266, and appealed his decision to this Court on January 28, 2022, D.E. 272. Plaintiff filed opposition, D.E. 276, to which Defendants replied. D.E. 277. III. STANDARD OF REVIEW A magistrate judge may hear and determine any non-dispositive pretrial matter pursuant to 28 U.S.C. § 636(b)(1)(A). Motions to amend are generally considered non-dispositive. Patel v. Meridian Health Sys., Inc., 666 F. App’x 133, 136 (3d Cir. 2016).

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