TNHC Arizona LLC v. Peter-Lacke USA, LLC

CourtDistrict Court, S.D. California
DecidedFebruary 16, 2022
Docket3:21-cv-01017
StatusUnknown

This text of TNHC Arizona LLC v. Peter-Lacke USA, LLC (TNHC Arizona LLC v. Peter-Lacke USA, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TNHC Arizona LLC v. Peter-Lacke USA, LLC, (S.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 9 10 UNITED STATES DISTRICT COURT 11 SOUTHERN DISTRICT OF CALIFORNIA 12 13 TNHC Arizona LLC, et al., Case No.: 21-CV-1017 W (MSB)

14 Plaintiffs, ORDER GRANTING REQUEST FOR 15 v. JUDICIAL NOTICE [DOC. 6-1] AND DENYING MOTION TO DISMISS 16 Peter-Lacke USA LLC, [DOC. 6] 17 Defendant. 18 19 20 Pending before the Court is Defendant Peter-Lacke’s motion to dismiss Plaintiffs’ 21 First Amended Complaint (FAC). Along with Defendant’s motion, it has filed an 22 unopposed request for judicial notice. Plaintiffs oppose the motion. 23 The Court decides the matter on the papers submitted and without oral argument. 24 See Civ. L.R. 7.1(d)(1). For the reasons stated below, the Court GRANTS the request 25 for judicial notice [Doc. 6-1] and DENIES the motion to dismiss [Doc. 6]. 26 // 27 // 28 1 I. BACKGROUND 2 This lawsuit arises out of a product-liability dispute between Plaintiffs TNHC 3 Arizona LLC and TNHC Mountain Shadows LLC (“TNHC”), and Defendant Peter- 4 Lacke USA LLC (“Lacke”). TNHC is the developer of a residential project located in 5 Paradise Valley, Arizona. (First Amended Complaint (“FAC”) [Doc. 5] ¶¶ 10, 11.) As 6 part of the development, some time from 2017 through 2018 TNHC “purchased wood- 7 free exterior siding with factory applied coatings, stains, and sealants” (the “Pre-Finished 8 Siding”), which contains UV sealant, for the exterior of the homes. (Id. ¶ 12.) TNHC 9 alleges Lacke, along with other entities, entered a joint venture to “design, manufacture, 10 supply, and distribute” the Pre-Finished Siding. (Id. ¶ 14.) TNHC further alleges Lacke 11 “designed, developed, manufactured, suppled and sold [the] UVE sealant” for the express 12 purpose of incorporating it into the Pre-Finished Siding. (Id. ¶ 16.) 13 Unfortunately, several batches of the Pre-Finished Siding that TNHC purchased for 14 the residential project began showing signs of premature degradation. (FAC ¶ 27.) This 15 was after TNHC had already complained about one batch that failed to perform as 16 intended and began cupping and warping. (Id. ¶ 26.) 17 As a result of TNHC’s complaints, on September 19, 2019, Lacke and the other 18 entities involved in the design, manufacture and supply of the Pre-Finished Siding 19 inspected the condition of the product that was installed and informed TNHC that they 20 needed more time to complete their evaluation. (FAC ¶ 27.) TNHC relied on these 21 representations in deciding not to immediately file a lawsuit and entering into a tolling 22 agreement while the parties attempted to resolve the issue. (Id. ¶¶ 29, 30.) During the 23 negotiations, Lacke “held itself out as the manufacturer, designer, and supplier” of the 24 UV sealant. (Id. ¶ 32.) 25 Ultimately, the negotiations failed and TNHC filed a lawsuit against Lacke and the 26 other entities in Arizona in the Maricopa County Superior Court (the “Arizona 27 Litigation”). Lacke moved to dismiss the complaint for lack of personal jurisdiction. On 28 February 9, 2021, the Superior Court dismissed Lacke for lack of personal jurisdiction. 1 On April 1, 2021, TNHC filed suit against Lacke in the San Diego Superior Court. 2 (Compl. [Doc. 1-2].) On May 27, 2021, Lacke timely removed the action to this Court. 3 (See Notice of Removal [Doc. 1] ¶ 2.) 4 On June 21, 2021, TNHC filed the FAC, which asserts three causes of action for: 5 (1) Strict Liability; (2) Negligence; and (3) Declaratory Relief. (See FAC.) TNHC 6 alleges that Lacke “specifically designed and manufactured the [UV] sealant to withstand 7 high temperatures and high levels of direct sun exposure” and that the UV sealant 8 reached TNHC without substantial change. (Id. ¶¶ 37, 39.) Furthermore, TNHC 9 contends the UV sealant was not fit for its intended use as it “has caused and will 10 continue to cause degradation, deterioration, and/or liquification in direct sunlight and/or 11 high temperatures” and the defects were present when the UV sealant left the factory. 12 (Id. ¶¶ 40, 41.) Finally, TNHC alleges Lacke “failed to perform the necessary tests … to 13 ensure that [the UV sealant] performs as intended to protect materials from damage from 14 sunlight and high temperatures.” (Id. ¶ 57.) 15 Lacke has now filed a motion to dismiss the FAC. (P&A [Doc. 6].) TNHC 16 opposes the motion. (Opp’n [Doc. 7].) 17 18 II. LEGAL STANDARD 19 Federal Rule of Civil Procedure 12(b)(6) allows a defendant to file a motion to 20 dismiss for failing “to state a claim upon which relief can be granted.” Fed.R.Civ.P. 21 12(b)(6). A motion to dismiss under Rule 12(b)(6) tests the complaint’s sufficiency. See 22 N. Star Int’l v. Ariz. Corp. Comm’n., 720 F.2d 578, 581 (9th Cir. 1983). A complaint 23 may be dismissed as a matter of law either for lack of a cognizable legal theory or for 24 insufficient facts under a cognizable theory. Robertson v. Dean Witter Reynolds, Inc., 25 749 F.2d 530, 534 (9th Cir. 1984). Additionally, in evaluating the motion, the court must 26 assume the truth of all factual allegations and must “construe them in light most favorable 27 to the nonmoving party.” Gompper v. VISX, Inc., 298 F.3d 893, 895 (9th Cir. 2002). 28 1 To survive a motion to dismiss, a complaint must contain “a short and plain 2 statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 3 8(a)(2). The Supreme Court has interpreted this rule to mean that “[f]actual allegations 4 must be enough to raise a right to relief above the speculative level.” Bell Atl. Corp. v. 5 Twombly, 550 U.S. 554, 555 (2007). The allegations in the complaint must “contain 6 sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its 7 face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 570). 8 Well-pled allegations in the complaint are assumed true, but a court is not required 9 to accept legal conclusions couched as facts, unwarranted deductions, or unreasonable 10 inferences. Papasan v. Allain, 478 U.S. 265, 286 (1986); Sprewell v. Golden State 11 Warriors, 266 F.3d 979, 988 (9th Cir. 2001). 12 13 III. REQUEST FOR JUDICIAL NOTICE 14 Lacke requests judicial notice of certain filings in the Arizona Litigation. (See RJN 15 [Doc. 6-1].) Specifically, it requests judicial notice of: (1) Travis Nuzman’s Declaration 16 filed in Support of TNHC’s Opposition to Lacke’s Motion to Dismiss; (2) the Arizona 17 Complaint; (3) John Bilson’s Declaration filed in Support of Lacke’s Motion to Dismiss; 18 and (4) the February 9, 2021 Order granting Lacke’s motion to dismiss. (Id. 1:1–11.) 19 Federal Rule of Evidence 201 permits a court to take judicial notice of an 20 adjudicative fact if it is “not subject to reasonable dispute.” Fed. R. Evid. 201(b). A fact 21 is “not subject to reasonable dispute” if it is “generally known,” or “can be accurately and 22 readily determined from sources whose accuracy cannot reasonably be questioned.” Fed. 23 R. Evid. 201(b)(1)-(2).

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TNHC Arizona LLC v. Peter-Lacke USA, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tnhc-arizona-llc-v-peter-lacke-usa-llc-casd-2022.