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IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI CENTRAL DIVISION BONNIE GEORGE, et al., ) ) Plaintiffs, ) ) vs. ) Civil Action No. 2:17-cv-3114-MDH ) OMEGA FLEX, INC., et al, ) ) Defendants. ) ORDER Before the Court is Plaintiffsâ Motion for Class Certification pursuant to Fed. Rul. Civ. P. 23 (Doc. 225); Defendantsâ Motion to Strike the Declarations of Mark Goodson and Alain Rousseau (Doc. 266); Defendantsâ Motions to Exclude Opinions of Aaron Hedlund (Doc. 268 and 310); and Defendantsâ Motion for Summary Judgment. (Doc. 305). For the reasons set forth herein, Defendantsâ Motion for Summary Judgment is GRANTED. The remaining motions are DENIED as further discussed herein. BACKGROUND Plaintiffsâ class action lawsuit alleges violations of the Missouri Merchandising Practices Act (âMMPAâ), conspiracy, and unjust enrichment. Defendants manufacture and distribute corrugated stainless steel tubing (CSST), a flexible pipe used to transport natural or propane gas within homes and structures. Omega Flex manufactured and sold TracPipeÂź brand CSST in the U.S. from approximately 1997 until September 2011. Titeflex manufactured and sold GastiteÂź brand CSST in the U.S. from approximately 1992 until 2015. Ward began selling WARDFLEXÂź brand CSST in the U.S. in the early 1990s and continues to manufacture and sell it in the U.S. today. Plaintiffs refer to all three of these brands as âYellow CSST.â The parties dispute whether bonding and grounding Yellow CSST is an effective method to protect equipment and systems from electrical energy over a wide range of industries.1 The alleged defect is the safety of the product installed in Plaintiffsâ homes.2 It is undisputed that at the time of this lawsuit Yellow CSST has not caused any physical damage to the Plaintiffsâ homes or structures. Rather, Plaintiffsâ lawsuit alleges the Yellow CSST present in their homes has caused, or will cause, a diminution of value to their homes.3 The Omega Flex Plaintiffs Plaintiffs Brian Immekus, Bobbie Lee, Ron Metzgar, James Rehm, and Tammy Volkart (together, the âOmega Flex Plaintiffsâ) each own or previously owned a home in which TracPipe is installed. Brian Immekus acquired his TracPipe in January 2012 while building his home in Sullivan, Missouri. Mr. Immekus testified that he âdidnât know in advance that TracPipe was going to be installed during the construction of [his] home,â that he âdidnât make the decision to include TracPipe in [his] home at the time of construction,â and that he âdidnât give any thought to whether TracPipe would be installed in [his] home at the time of construction.â Mr. Immekus testified that he was âunaware of any statements by any of the defendants about yellow CSST when [he] acquired [his] TracPipe,â that he was âunaware of any statements by defendants about bonding and grounding when [he] acquired [his] TracPipe,â and that âOmega Flex made no statement in 1 A number of the âmaterial factsâ regarding the bonding and grounding standards and the codes related to the same are disputed. The Court finds these disputed facts are not material to the Courtâs ruling on the pending motions. This includes the reports submitted by engineers regarding the safety of Yellow CSST when bonded and grounded. However, the Court does consider any relevant facts in a light most favorable to Plaintiff as the non-moving party. 2 One of the Plaintiffs is not a homeowner. Amazing Grace Community Church is identified as a Plaintiff. 3 A 2004 class action lawsuit filed in state court alleging that CSST posed an unreasonable risk and/or danger of fire due to lightning strikes was resolved via settlement. The state court approved the settlement and found that the marketing efforts agreed to by the parties satisfied the terms of the settlement agreement and adequately warned of the alleged risks to CSST posed by lightning. connection with any purchases that [he] made,â including his purchase of TracPipe. Mr. Immekusâ TracPipe was bonded and grounded when it was installed, but he does not know whether the person who installed his CSST specifically charged a fee to bond and ground it or whether he was paid as part of his other work. Mr. Immekus testified that he ânever actually had a problem with [his] TracPipe in the seven-plus years since it was installed,â but that he âwould like to replace the TracPipe in the futureâ and that the reason for wanting it replaced is his ânew knowledge that it is a less safe material.â4 Mr. Immekusâ home was appraised as of May 28, 2012 at approximately $45,000 more than he paid for it. Plaintiff states the appraisal includes the value of gifted land as a well as the home. Plaintiff Bobbie Lee acquired her TracPipe in September 2009 while building her home in Sullivan, Missouri. Ms. Lee testified that she âdidnât know in advance that the TracPipe was going to be installed in the home,â that she âdidnât make the decision to install TracPipe in [her] home,â and that âat the time that [her] home ⊠was built, [she] had never heard of yellow CSST.â Ms. Lee further testified that âthe inclusion of CSST in [her] home ⊠was not significant to [her] at the time that [she] purchased the home.â Ms. Lee testified that she was âunaware of any statements by Defendants about yellow CSST when [she] acquired [her] TracPipe,â that she was âunaware of any statements by Defendants about bonding and grounding when [she] acquired [her] TracPipe,â and that âOmega Flex made no statement in connection[] with any purchases that [she] made,â including her purchase of TracPipe. Ms. Leeâs TracPipe was bonded and grounded when it was installed. Ms. Lee testified that she ânever had a problem with [her] TracPipe in the eight years 4 Mr. Immekus testified that his TracPipe âhas been living up to [his] expectations,â that it is âstill providing [him] with the value that [he] expected,â and that he is ânot claiming in this lawsuit that [he] overpaid for [his] TracPipe.â Plaintiffs argue this testimony is taken out of context and that Mr. Immekus would like to replace the CSST in the future because he has knowledge that it is a less safe material. that [she] owned it,â but she believes OmegaFlex should replace the yellow CSST with Black CSST. Ms. Leeâs home was appraised as of October 27, 2009 at approximately $8,000 more than what she paid for it. Ms. Lee never repaired or replaced her TracPipe, nor did she perform any other remedial measures to address her perception that the TracPipe installed in her home was dangerous. Ms. Lee sold her home in October 2017. Ms. Lee testified that âthe value of [her] home increased over timeâ such that she was âable to turn a profit when [she] sold the home,â and she acknowledged âthat the presence of TracPipe in [her] home did not decrease the value of [her] home.â Ms. Lee testified that âthere was no reason for [her] to disclose the presence of yellow CSST when [she] sold [her] home," and that she âdidnât agree to sell the home for a lower price on account of the yellow CSST.â Plaintiff states she formed her belief about the difference between Black and Yellow CSST in late 2018 and joined the case in January 2019. Ron Metzgar acquired his TracPipe in 2009 during the construction of his home in Waynesville, Missouri. Mr. Metzgar testified that he âdid not make the decision to install yellow CSST in [his] home,â and that he âdidnât know that yellow CSST was going to be installed during construction.â Mr. Metzgar testified that â[p]rior to being involved in this lawsuit, [he] did not see any marketing materials from Omega Flex.â Mr. Metzgarâs CSST is not bonded and grounded. Mr. Metzgar testified that he was ânot asserting that [he] overpaid for [his] CSST.â He also testified he has shut off the gas and no longer uses the CSST. James Rehm acquired his TracPipe in 2011 during the construction of his home in Waynesville, Missouri. Mr. Rehm testified that he âw[as]nât aware of any advertising or marketing from Omega Flex until years after the construction of [his] home,â and that he did not âsee a statement from Omega Flex regarding bonding and grounding when [he] installed [his] yellow CSST.â Mr. Rehmâs CSST is not bonded and grounded and he testified that he has never âhad a problem with [his] CSST.â Mr. Rehmâs home was appraised as of September 17, 2015 at approximately $115,000 more than he paid for it. Tammy Volkart acquired her TracPipe in 2007 when she purchased her home in California, Missouri. Ms. Volkart testified that âyellow CSST was not something [she] considered when buying [her] home,â that âat the time that [she] bought the home, [she] had actually never heard of CSST,â and that âthe inclusion of the CSST in [her] home was not significant to [her] when [she] purchased the home.â Ms. Volkart testified that when she acquired her TracPipe, she was âunaware of any statements that Omega Flex had made about the productâ and that Omega Flex âmade no statements in connection with any purchases that [she] made,â including her purchase of TracPipe. Ms. Volkartâs CSST is not bonded and grounded and she testified that âthereâs never been a problem with [her] TracPipe CSST in the 12 years since it was installed.â However, she wants to replace it because âthereâs a danger in it.â Ms. Volkart testified that her TracPipe âis living up to [her] expectationsâ and âis still providing [her] with the value [she] expected when [she] bought [her] home,â and that she has not âexperienced any monetary losses from having TracPipe installed in [her] home.â Ms. Volkartâs home was appraised as of March 26, 2010 at approximately $43,500 more than she paid for it, and again as of February 26, 2016 at approximately $58,500 more than she paid for it. Ms. Volkart rented out her home beginning in June 2016. The Titeflex Plaintiffs Plaintiffs Cedar Deraps, Bonnie George, and Casey Wasser (the âTiteflex Plaintiffsâ) each own a home in which Gastite is installed. Cedar Deraps acquired his Gastite in or about late 2007 or early 2008, when he remodeled his home in Jamestown, Missouri. Mr. Derapsâ CSST is bonded and grounded through work he performed himself in 2017. Mr. Deraps testified that his Gastite CSST has ânever failedâ or leaked gas. Mr. Deraps admits he paid no money for his CSST, which he acquired from his familyâs company. Mr. Deraps testified he exchanged labor for the CSST, as well as other building supplies, through an informal agreement with his father. Mr. Deraps testified that he has never tried selling his home. Derapsâ home was appraised as of May 1, 2013 at approximately $55,000 more than he paid for it, and as of June 9, 2015 at approximately $88,695 more than he paid for it. Bonnie George acquired her Gastite in 2011 while building her home in California, Missouri. Ms. George testified that she had ânever heard of CSST prior to 2015â and ânever saw any representations or communications from anyone about CSST prior to 2015.â Ms. Georgeâs CSST is not bonded and grounded. Ms. George testified that her Gastite has ânever failed.â Ms. Georgeâs home was appraised as of March 19, 2012 and again as of June 27, 2012, in each instance at more than she paid for it. Casey Wasser acquired his Gastite in 2014 or 2015 while building his home in California, Missouri. Mr. Wasser testified that he âdo[es]nât recall any representations that [he] received from Titeflexâ while his home was being built. Mr. Wasser admitted that CSST âwasnât in [his] lexiconâ when his home was built, and he âdidnât knowâ his general contractor âwas going to use CSSTâ as part of the construction. Mr. Wasserâs CSST is not bonded and grounded and he testified he has not had problems with it. Mr. Wasser testified that he âha[s]nât suffered any economic damage at this pointâ as a result of having Gastite in his home.5 5 None of the appraisals and/or inspections of any of the Plaintiffsâ homes mention the presence of Yellow CSST. The Ward Plaintiffs Plaintiffs Amazing Grace Community Church (the âChurchâ), Ed McKinzie, and Tim Worstell (together, the âWard Plaintiffsâ) each own or previously owned a home or structure in which WARDFLEX is installed. WARDFLEX was installed in the Church in 2008â2009, during its construction in Cuba, Missouri. No one lives on the Churchâs property, and it has no living facilities. Ms. Happel testified, as the Churchâs representative, that she âha[d]nât read anything from Ward Manufacturing about either pipe [CSST or black iron pipe].â The Churchâs CSST was installed by a church member who regularly installed CSST, ordered it through the company he worked for, and installed it. The parties dispute whether the Church paid to have the CSST bonded and grounded. Plaintiff states the Church âpaid for materials.â Ms. Happel testified that there are no leaks or holes in the Churchâs WARDFLEX, and that âthe gas is, in fact, working.â Ms. Happel further testified that â[t]he church hasnât been damaged in any wayâ and that âthe [CSST] hasnât been damaged,â but that they want to replace the Yellow CSST with Black CSST. The Church was appraised as of October 27, 2008 at $165,000 more than the purchase price. Ed McKinzie acquired his WARDFLEX in 2011 while building his home in Columbia, Missouri. Mr. McKinzie did not recall having any conversations about gas piping during the construction of his home and testified that his builder decided to install CSST. Mr. McKinzie testified that he âhad never heard ofâ CSST until an attorney discussed it with him. Mr. McKinzie testified that he saw no advertisements for CSST until the evening before his July 23, 2019 deposition in this case. Mr. McKinzie testified that he did not know whether the WARDFLEX at his former home was bonded and grounded. Mr. McKinzie testified that he did not âhave any problems with [his CSST] at allâ while living at his former home. Mr. McKinzieâs home was appraised as of November 7, 2011 at approximately $7,000 more than he paid for it. Mr. McKinzie sold his home in 2017 âfor approximately $43,000 more than [he] purchased it for,â and that âthe presence of CSST could not have impacted how much [the buyers] were willing to pay for the home.â Tim Worstell acquired his WARDFLEX in 2014 to 2015 while building his home in Columbia, Missouri. Mr. Worstell was not aware of CSST or its presence in his home before he was informed of this lawsuit. Mr. Worstellâs WARDFLEX is not bonded and grounded. Mr. Worstell has never had a gas leak at his home. Plaintiffsâ statement of facts contains 164 paragraphs. Plaintiffs have created headings for their âfactsâ which the Court finds argumentative. However, for purposes of summarizing Plaintiffsâ arguments, the headings include, but are not limited to: ï· Defendantsâ Yellow CSST Has Been Tested To Fail At .12 Coulombs, Which Is Much Less Than A Typical Lightning Flash ï· Currently The Code Requires That CSST Be Able To Withstand 4.5 Coulombs ï· Unjacketed CSST Stainless Steel Is As Much As 25 Times More Resistant To Puncture Than CSST With A Yellow Jacket ï· Black Iron Pipe Demonstrated No Melt-Through At 480 Coulombs ï· The International Association Of Fire Chiefs Estimates That The Presence Of Yellow CSST In A Home Increases The Risk Of Fire 10-Fold Compared To Homes Without Yellow CSST ï· As Of 2011 More Than 717 Million Feet Of CSST Were Installed In U.S. Homes ï· According To Robert Torbin, In The First Half Of 2000, There Were An Average Of 4,800 House Fires Per Year Caused By Lightning ï· Defendants Have Known Since The 1990s And 2000s That Their Yellow CSST Was Subject To Failure ï· Defendants Admit That Their Yellow CSST Is Subject To Failure ï· Admissions by Omega Flex that Yellow CSST is Subject to Failure ï· Admissions by TiteFlex that Yellow CSST is Subject to Failure ï· Admissions by Ward that Yellow CSST is Subject to Failure ï· Admissions Jointly Made by All Defendants that Yellow CSST is Subject to Failure ï· Statements by Industry Experts that CSST is Subject to Failure ï· Defendantsâ Yellow CSST Products Are Substantially The Same ï· Omega Flex Made Numerous Public Misrepresentations On Its CSST Facts Website About CSST Safety, Including That CSST Is The Only Gas Piping That Withstands Quakes And Lightning ï· Omega Flex Makes Additional Public Misrepresentations That Yellow CSST Is Safe Or Can Be Made Safe ï· Titeflex Misrepresented To The Public That Yellow CSST Is Safe Or Capable Of Being Made Safe ï· Defendants Jointly Misrepresent That Yellow CSST Is Safe Or Capable Of Being Made Safe ï· Defendants Make These Misrepresentations In The Face Of Their Knowledge That Yellow CSST Cannot Be Made Safe ï· Defendants Failed To Take Action Based On Economic Considerations ï· Despite Knowledge Of The Risks Associated With Yellow CSST, Defendants Failed To Provide Any Warning Until Forced To Do So By Class Action Litigation ï· Home Fires Started by Lightning Have Astronomical Economic and Loss-Of- Life Costs These headings, along with similar headings that contain extensive paragraphs of âfacts,â continue for several pages. The paragraphs go into great detail about the history of the product and its alleged safety â which would have been the basis for the 2004 state court class action products liability case. It is not until after paragraph 132, on page 73 of Plaintiffsâ 106 page brief, that Plaintiffs finally reference for the first time âStatements About Plaintiffsâ Yellow CSST.â Paragraph 1 of this section states: See Excerpts from the Transcripts of Plaintiffsâ Depositions, attached as Exh. A to Plaintiffsâ Reply in Support of Motion for Class Certification, Dkt. No. 295.02 âPlaintiffsâ Testimony of Defendantsâ Misrepresentationsâ): Ed McKinzie at 45:5- 15 (âthe three main defendants in this case continue to market a product and manufacture a product and allow the sale of a product that was, in my opinion, unfit to be installed in a home. And I think they knowingly not only sold this product with the inherent risks of that product, but I think they also misled the varying trades of â from builders to real estate agent to inspectors with misinformation on how safe the product was.â); Cedar Deraps at 8:1-15; Casey Wasser at 8:4-9; James Rehm at 72:21- 73:15, 107:17-23; Ron Metzgar at 135: 1-21; Bobbie Lee at 20:20- 23; Brian Immekus at 95:11- 16; and Amazing Grace Community Church at 55:6- 14; 109:19-24. This paragraph references eight of the Plaintiffsâ testimonies about their personal opinions and beliefs about Yellow CSST and its safety. It does not include reference to any personal or direct interaction by any Plaintiff with statements made by any Defendant, or that any claim was made by the Defendants to a specific Plaintiff. The âfactsâ do not include any reference to actions taken by Plaintiffs with regard to any alleged statement made by a Defendant. In fact, there is no evidence that any of the Plaintiffs saw or heard any of the alleged âmisrepresentationsâ that Plaintiffs include in over 100 paragraphs of the preceding statements of facts. Numerous paragraphs include similar statements made by Plaintiffs, such as: âthe litigation is about a product that I believe has been promoted as a safe product when, in fact, it is notâ; âthe three main defendants in this case continue to market a product and manufacture a product and allow the sale of a product that was, in my opinion, unfit to be installedâ; â[I was] sold a product or had a product installed on my home that was not as safe as it was once said to beâ; and âdefendants are misleading inspectors and real estate groups on the safety of the productâ. Plaintiffs also include paragraphs supporting the claim that they âwere unaware of the safety risks of yellow CSST at the time it was installed in their homes or they purchased homes with yellow CSSTâ (Metzgar âhad no knowledge of those pipes, so [he] couldnât formulate an opinion as to whether they were safe); and that âthey were concerned about their safety when they learned about yellow CSST.â6 STANDARD Summary judgment is proper where, viewing the evidence in the light most favorable to the non-moving party, there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a); Reich v. ConAgra, Inc., 987 F.2d 1357, 1359 (8th Cir. 1993). âWhere there is no dispute of material fact and reasonable fact finders could not find in favor of the nonmoving party, summary judgment is appropriate.â Quinn v. St. Louis County, 653 F.3d 745, 750 (8th Cir. 2011). Initially, the moving party bears the burden of 6 Plaintiffs also include statement that have no bearing on their claims such as âPlaintiffs Worstell and Lee testified that other consumers would be upset if they knew about the risks of yellow CSST.â demonstrating the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). If the movant meets the initial step, the burden shifts to the nonmoving party to âset forth specific facts showing that there is a genuine issue for trial.â Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). To satisfy this burden, the nonmoving party must âdo more than simply show there is some metaphysical doubt as to the material facts.â Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). A question of material fact is not required to be resolved conclusively in favor of the party asserting its existence. Rather, all that is required is sufficient evidence supporting the factual dispute that would require a jury to resolve the differing versions of truth at trial. Anderson v. Liberty Lobby, Inc., 477 U.S. at 248-249. Further, determinations of credibility and the weight to give evidence are the functions of the jury, not the judge. Wierman v. Caseyâs General Stores, et al., 638 F.3d 984, 993 (8th Cir. 2011). DISCUSSION I. MMPA CLAIMS Defendants move for summary judgment on Plaintiffsâ Missouri Merchandising Practices Act (âMMPAâ) claims arguing: 1) Plaintiffs have not sustained an ascertainable loss of money or property; 2) Plaintiffs cannot show an unlawful practice; 3) there is no connection between Plaintiffsâ purchases and any statement made by Defendants; and 4) there is no causation.7 To prevail on an MMPA claim, Plaintiffs must prove that: 1) they leased or purchased a product or service sold or advertised by Defendants for personal use; 2) they suffered an ascertainable loss of money or property; 3) Defendants committed an unfair or deceptive trade 7 Defendants also argue the Church did not purchase CSST for personal, family, or household use and therefore is not a proper plaintiff under the MMPA. practice; 4) in connection with the sale; (5) which caused the Plaintiffsâ loss. Mo. Rev. Stat. §§ 407.020, 025; Faltermeier v. FCA US LLC, 2017 WL 1128467, at *3 (W.D. Mo. Mar. 24, 2017) (order granting summary judgment) (internal citations omitted). Plaintiffsâ failure to establish an essential element of their claim under the MMPA entitles Defendants to judgment as a matter of law. See Celotex Corp. v. Catrett, 477 at 323. A. Plaintiffs cannot establish a connection with an alleged misrepresentation and the purchase of their homes. The MMPA prohibits â[t]he act, use or employment by any person of any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or the concealment, suppression, or omission of any material fact in connection with the sale or advertisement of any merchandise in trade or commerceâŠâ Faltermeier v. FCA US LLC, 899 F.3d 617, 622 (8th Cir. 2018); citing Mo. Rev. Stat. § 407.020.1. âUnder Missouri law, a wide range of deceptive conduct may qualify as âin connection withâ a purchase.â Id., citing Schuchmann v. Air Servs. Heating & Air Conditioning, Inc., 199 S.W.3d 228, 233 (Mo. Ct. App. 2006) (quoting Ports Petroleum Co., Inc. of Ohio v. Nixon, 37 S.W.3d 237, 240 (Mo. banc 2001). However, the Eighth Circuit has stated that in order to prevail on a MMPA claim the âalleged misrepresentation must have a relationship with the sale.â Id., citing Conway v. CitiMortgage, Inc., 438 S.W.3d 410, 414 (Mo. banc 2014). In Faltermeier, the district court found that the plaintiff could not show that he purchased his vehicle âin connection withâ any alleged misrepresentation made by defendant. Id. The Eighth Circuit affirmed the district court finding that while the buyerâs actual reliance on the defendantâs misrepresentation is not required, âevidence of some factual connection between the misrepresentation and the purchase is required.â Faltermeier v. FCA US LLC, 899 F.3d at 622 (â⊠there is no evidence that either the seller or the buyer was aware of the misrepresentation. Nor was the intermediary seller an unwitting conduit for passing on the substance of the misrepresentation.â) Plaintiffs argue that neither an intent to defraud nor reliance are required under the MMPA. Citing Johnson v. Atkins Nutritionals, Inc., 2018 WL 3398162, at *2 (W.D. Mo. July 12, 2018). However, while this is true, the Eighth Circuit has found that there must be some evidence of a connection between the misrepresentation and the purchase. Faltermeier v. FCA US LLC, 899 F.3d at 622. Here, none of the Plaintiffs testified that they made a purchase in connection with any information or misrepresentation made by any Defendant. Considering the facts in a light most favorable to Plaintiffs, the record does not contain facts to support a claim that any of the Plaintiffs made a purchase of Yellow CSST in connection with any statements made by any Defendants regarding the safety of Yellow CSST. To the contrary, the testimony of the Plaintiffs is that they had no knowledge of the presence of Yellow CSST in their homes or any representations of the safety of Yellow CSST at the time they built or purchased their homes. Further, the testimony of plaintiff Deraps, who acquired the Yellow CSST through his familyâs business, did not indicate he received any information about the productâs safety prior to acquiring the product. None of the Plaintiffs have testified that the presence of Yellow CSST in a house motivated their decision to purchase their homes or had any connection to their decision in building their homes. In addition, the Court notes that the Defendantsâ marketing and advertising of Yellow CSST, and representations regarding the safety of bonding and grounding of the product, was approved by a state court in a prior products liability class action lawsuit. Because the marketing and advertising of Yellow CSSTâs safety was approved by, and consistent with, a prior court order entered pursuant to the settlement of a class action, the Defendantsâ conduct should be considered lawful, absent extraordinary circumstances, so long as it complies with the state courtâs order. There is no allegation that Defendants have violated the prior Courtâs order with regard to their representations regarding Yellow CSST. As such, Plaintiffs would be unable to establish that any alleged representations of Yellow CSST were employed using deception, fraud, false pretense, false promise, misrepresentation, or unfair practice when Defendantsâ statements regarding the productsâ safety were previously approved by a state court. Here, Plaintiffs simply cannot establish a connection with any alleged misrepresentation and their purchase or building of homes containing Yellow CSST and as such their claims fail. B. Plaintiffs have not sustained an ascertainable loss of money or property. Even if Plaintiffs could establish a connection between a misrepresentation made by Defendants and the purchase or building of their homes containing Yellow CSST, the Court also finds Plaintiffs cannot establish that they have suffered an ascertainable loss. First, as previously stated there is no evidence of any alleged defect causing any physical harm to any of Plaintiffsâ homes. Rather, the Plaintiffsâ claims are based on the âbenefit of the bargainâ and Plaintiffs contend the measure of damages applicable to their claims are: â1) cost of repair; 2) restitution; and 3) disgorgement.â To demonstrate a loss of the benefit of the bargain, Plaintiffs must establish that the difference between the actual value of the product and what its value would have been if it had been as represented is different. Sunset Pools of St. Louis, Inc. v. Schaefer, 869 S.W.2d 883, 886 (Mo. Ct. App. 1994). First, there is no evidence that any Plaintiff overpaid for Yellow CSST. In fact, most Plaintiffs, with the exception of plaintiff Deraps, did not personally purchase or acquire the Yellow CSST.8 Further, Plaintiffs testified they were unaware of the presence of Yellow CSST in their homes when they were either purchased or built. Plaintiffs argue that âalthough they were 8 Plaintiff Deraps acquired Yellow CSST from his familyâs company and testified he exchanged labor for the CSST through an informal agreement with his father. He also performed the bonding and grounding of the Yellow CSST himself. previously unaware of the safety risks of Yellow CSST, once they became aware of the alleged risk they were concernedâŠâ and âthey want the yellow CSST in their homes replaced.â Plaintiffs offer no evidence of any current issues with the function of Yellow CSST in their homes or the need for ârepairâ other than their conclusory statements that they want the Yellow CSST replaced. Further, Plaintiffs have offered no evidence of a diminution of value in their homes. In fact, the appraisals show increases in the value of Plaintiffsâ homes. Further, the appraisals and inspections of Plaintiffsâ homes do not mention the presence of Yellow CSST in any of the homes. Plaintiffs simply have no evidence that they paid more for the product, in this case homes containing Yellow CSST, based on any representation or that the product is worth less than what was represented. It appears Plaintiffs have abandoned their previous arguments regarding the measure of damages in this case.9 Plaintiffsâ opposition to summary judgment now argues the measure of the benefit of the bargain should be the cost to repair and replace the Yellow CSST in their homes and that the diminution in value of their homes has no bearing on the benefit of the bargain damages. However, Plaintiffs must establish that the Yellow CSST is worth less than what they paid for it. A review of the record before the Court shows no evidence of a diminution in value of the homes, no evidence that any appraisal or inspection references the presence of Yellow CSST in the homes, and no evidence of any malfunction of the Yellow CSST. Here, Plaintiffs cannot establish that they overpaid for the Yellow CSST. Dr. Hedlund, Plaintiffsâ damages expert, has rendered an opinion regarding how to calculate the cost to repair the Yellow CSST in Plaintiffsâ homes and how to calculate restitution amounts for the presence of 9 Plaintiffâs Complaint alleges that they suffered an ascertainable loss because their homeâs value is decreased because of the presence of Yellow CSST. Yellow CSST. However, Dr. Hedlundâs opinion simply attempts to provide what the cost to replace Yellow CSST with Black CSST would be if the Plaintiffs homes were ârepaired.â This is not enough to show an ascertainable loss of money or property. At this time there has been no manifestation of any defect in the product and importantly none of the Plaintiffs have replaced the Yellow CSST in their homes. In fact, Plaintiffs have not taken any remedial measures, either by replacing the Yellow CSST or otherwise, despite their alleged knowledge of the âdangersâ of the product dating back to when their lawsuit was first filed over 4 years ago. The evidence is that the Yellow CSST is currently performing in Plaintiffsâ homes. Plaintiffs claim that they have âsafety concernsâ with the product in their homes but simply cannot establish that the value of Yellow CSST as represented at the time of the transaction (in this instance when their homes were purchased) is different than the actual value of the product that is currently performing in their homes today. The speculative âreplacement costsâ alleged by Plaintiffs as the basis for a diminution of value claim is not sufficient. For these reasons, Plaintiffs claims also fail. Finally, the Court notes that some of the Plaintiffs assert that out of pocket expenses for bonding and grounding amounts to a measure of damages. However, the Plaintiffs that have not had their product bonded and grounded have not shown a loss when they continue to receive the benefit from the product in their homes. Further, the Plaintiffs who have Yellow CSST that is already bonded and grounded cannot show that they incurred any extra or additional costs for the bonding and grounding. C. Plaintiffs cannot establish causation. Finally, â⊠causation is a necessary element of an MMPA claim.â Bratton v. Hershey Co., No. 2:16-CV-4322-C-NKL, 2018 WL 934899, at *2 (W.D. Mo. Feb. 16, 2018) (granting summary judgment on MMPA claim); citing Owen v. GMC, 533 F.3d 913, 922 (8th Cir. 2008); see also Williams v. HSBC Bank USA, N.A., 467 S.W.3d 836, 843 (Mo. App. 2015); and MO. APPROVED INSTRUCTIONS (CIVIL) 39.01 (7th ed.) (verdict director for MMPA violation, requiring jury to find that âas a direct result of such conduct, plaintiff sustained damageâ). âIn other words, a plaintiff who was not injured by a purported MMPA violation cannot sue for the violation.â Id. Plaintiffs who did not care about an allegedly misleading marketing practice, or who knew about an alleged practice and purchased the products anyway, are not injured by the practice. Id. (internal citations omitted). A plaintiff is not required to show reliance in order to prove that a defendant committed an unlawful practice, but the plaintiff must establish they were injured in order to succeed on an MMPA claim. Id. Here, for the reasons set forth herein, none of the Plaintiffs have shown an injury caused by the alleged unlawful practice. There is no evidence any Plaintiff has experienced a defect or problem with the Yellow CSST in their home. II. UNJUST ENRICHMENT To prevail on a claim for unjust enrichment, Plaintiffs must establish that: 1) they conferred a benefit on Defendants; 2) Defendants appreciated the benefit; and 3) Defendants accepted and retained the benefit under inequitable and/or unjust circumstances. Howard v. Turnbull, 316 S.W.3d 431, 436 (Mo. Ct. App. 2010). âUnjust retention of benefits only occurs when the benefits were âconferred (a) in misreliance on a right or duty; or (b) through dutiful intervention in another's affairs; or (c) under constraint.ââ Id. (quoting Graves v. Berkowitz, 15 S.W.3d 59, 62 (Mo. Ct. App. 2000)). Here, Plaintiffsâ claim fails because they cannot show reliance. Plaintiffs must be able to establish that they relied upon the alleged misrepresentation in making the purchase. Plaintiffs simply cannot establish any reliance on an alleged misrepresentation made by Defendants in the purchase of their homes. As previously stated, most of the Plaintiffs had never heard of Yellow CSST when they purchase their homes. Further, Plaintiffs have a working product in their home despite their allegations of the productâs safety issues. As such, the evidence shows they have received the use and benefit of Yellow CSST. Finally, as set forth herein, there is no evidence of unfair or misleading conduct when Defendants representations of the product were done in accordance with a prior state court order. For all the reasons stated herein, Plaintiffsâ claim for unjust enrichment also fails. III. CONSPIRACY For the reasons stated herein, the Court has found Plaintiffs cannot establish an underlying tort or injury and as a result Plaintiffsâ conspiracy claim fails. See Hamilton v. Spencer, 929 S.W.2d 762, 767 (Mo. Ct. App. 1996) (âCivil conspiracy is not itself actionable in the absence of an underlying wrongful act or tort.â); citing Williams v. Mercantile Bank of St. Louis, 845 S.W.2d 78, 85 (Mo.App.1993). IV. MOTION FOR CLASS CERTIFICATION In light of the Courtâs ruling on summary judgment, the Court denies the Motion for Class Certification as moot and further denies Defendantsâ Motion to Strike the Declarations of Goodson and Rousseau, that are attached as exhibits to the motion for class certification, as moot. (Docs. 225 and 266). V. MOTIONS TO EXCLUDE DR. HEDLUNDâS OPINIONS Finally, the Motions to Exclude the Opinions of Dr. Hedlund are denied for the purposes of this Courtâs summary judgment analysis. (Docs. 268 and 310). The Court has reviewed Dr. Hedlundâs opinions regarding this calculation of damages based on the cost of repair, restitution, disgorgement and costs of bonding and grounding as it relates to Plaintiffsâ claims for loss under the MMPA. However, even considering the information provided by Dr. Hedlund in a light most favorable to Plaintiffs, the Court finds Plaintiffs cannot meet the elements of their claims for the reasons stated herein. Further, to the extent Dr. Hedlund also offers opinions in support of Plaintiffsâ motion for class certification the Court denies the motion to exclude Dr. Hedlundâs opinions regarding damages on a class-wide basis for class certification as moot based on its ruling on the motion for summary judgment. CONCLUSION Wherefore, for the reasons set forth herein, the Court DENIES AS MOOT Plaintiffsâ Motion for Class Certification (Doc. 225) and Defendantsâ Motion to Strike the Declarations of Mark Goodson and Alain Rousseau (Doc. 266); DENIES Defendantsâ Motions to Exclude Opinions of Aaron Hedlund (Doc. 268 and 310); and GRANTS Defendantsâ Motion for Summary Judgment. (Doc. 305). The Court ORDERS judgment entered in favor of Defendants. IT IS SO ORDERED. DATED: August 13, 2020 /s/ Douglas Harpool______________ DOUGLAS HARPOOL UNITED STATES DISTRICT JUDGE
Case Information
- Court
- W.D. Mo.
- Decision Date
- August 13, 2020
- Status
- Precedential