NEW JERSEY, June 2 /PRNewswire/ -- On May 28, 2004, the Superior Court
of New Jersey certified a nationwide class action in a case originally
filed in 2000 against Trex Company, Inc. (NYSE:
TWP -
News) and ExxonMobil
Corp. (NYSE:
XOM -
News;
collectively, the "Company"). The case alleges that the TREX product
is defective.
The Court certified a nationwide class of consumers spanning the
twelve- year period from 1992 through 2004 on a claim that the
warranty issued by Trex and ExxonMobil in conjunction with the sale
and distribution of composite lumber products is unconscionable and
must be reformed. In addition, a class of New Jersey consumers will be
certified for the same twelve-year period on claims that the sale,
marketing and distribution of allegedly defective Trex lumber products
(and its predecessor product Timbrex) violated the New Jersey Consumer
Fraud Act and breached express and implied warranties. Damages under
the New Jersey Consumer Fraud Act are trebled as a matter of law. In
connection with the nationwide reformation of warranty claim, the
Court observed that "[t]his issue has already been argued before the
Appellate Division in this case and their decision is controlling."
The complaint alleges that the Trex and Timbrex products rot,
splinter and degrade as a result of inherent defects in the
manufacturing process. The defects are allegedly inconsistent with
claims in the marketing materials distributed by the Company. In
addition, although the Company claims that the product does not need
sealants, after the product exhibits mold, the Company allegedly
recommends that consumers apply sealants. Plaintiffs also seek to
reform the Company's warranty to, inter alia, include costs of repair
and replacement of allegedly defective product, cover costs of
sealants and eliminate the exclusive remedy of providing replacement
product.
On the New Jersey class action claims for violation of the New
Jersey Consumer Fraud Act and breach of express and implied
warranties, Plaintiffs seek money damages. In certifying the Class,
the Court noted that the damages theory in the case could be supported
by evidence that Trex's allegedly false advertising campaign allows
them to charge a price of fifteen (15%) percent higher than
alternative pressure-treated lumber products. According to the Court,
the New Jersey classes "will serve the purpose of a 'test case' but on
a much larger scale."
Marc B. Kramer, attorney for the Class, said "We are obviously
gratified that the Court certified a nationwide class in this
important consumer protection case." While the amount of damages must
await further discovery, Kramer explained that "over the past twelve
years, Trex and ExxonMobil have sold allegedly defective products
nationwide to hundreds of thousands of consumers. Those people did not
get what they paid for."