“[W]e . . . hold that the economic loss rule applies only in the products liability context. We thus recede from our prior rulings to the extent that they have applied the economic loss rule to cases other than products liability.”
How later courts described this case
- “[W]e . . . hold that the economic loss rule applies only in the products liability context. We thus recede from our prior rulings to the extent that they have applied the economic loss rule to cases other than products liability.”
- “The better view is . . . that transferor courts should use the law of the case doctrine to determine whether to revisit a transferee court’s decision.”
- findings and fact and conclusions by an appellate court are generally binding in all subsequent proceedings in the same case
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
FORT MYERS DIVISION
JOHN JUDGE,
Plaintiff,
v. Case No: 2:21-cv-889-JES-DAB
KNAUF GIPS KG, KNAUF
PLASTERBOARD TIANJIN CO.
LTD., and KNAUF NEW BUILDING
SYSTEM (TIANJIN) CO. LTD.,
Defendants.
OPINION AND ORDER
This matter comes before the Court on defendants' Motion in
Limine to Exclude or Limit the Expert Testimony of Howard Ehrsam
and Shawn Macomber (Doc. #77) filed on January 12, 2024. Plaintiff
filed an Opposition (Doc. #79) on January 26, 2024.
I.
“[F]ederal courts sitting in diversity apply state
substantive law and federal procedural law.” Gasperini v. Ctr. for
Humanities, Inc., 518 U.S. 415, 427 (1996). The Court applies
federal law to determine the admissibility of expert testimony.
Hendrix ex rel. G.P. v. Evenflo Co., Inc., 609 F.3d 1183, 1193
(11th Cir. 2010). Admission of expert opinion evidence is
governed by Fed. R. Evid. 702, which provides:
A witness who is qualified as an expert by
knowledge, skill, experience, training, or
education may testify in the form of an
opinion or otherwise if the proponent
demonstrates to the court that it is more
likely than not that:
(a) the expert's scientific, technical, or
other specialized knowledge will help the
trier of fact to understand the evidence or to
determine a fact in issue;
(b) the testimony is based on sufficient facts
or data;
(c) the testimony is the product of reliable
principles and methods; and
(d) the expert’s opinion reflects a reliable
application of the principles and methods to
the facts of the case.
Fed. R. Evid. 702 (eff. Dec. 1, 2023). In Kumho Tire Co. v.
Carmichael, 526 U.S. 137 (1999) and Daubert v. Merrell Dow Pharms.,
509 U.S. 579 (1993), the Supreme Court held that the trial court
has a “gatekeeper” function designed to ensure that any and all
expert testimony is both relevant and reliable. The importance
of this gatekeeping function “cannot be overstated.” United
States v. Frazier, 387 F.3d 1244, 1260 (11th Cir. 2004) (en banc).
In determining the admissibility of expert testimony under
Rule 702, the Court applies a “rigorous” three-part inquiry.
Frazier, 387 F.3d at 1260. “Expert testimony is admissible if (1)
the expert is qualified to testify on the topic at issue, (2) the
methodology used by the expert is sufficiently reliable, and (3)
the testimony will assist the trier of fact.” Club Car, Inc. v.
Club Car (Quebec) Imp., Inc., 362 F.3d 775, 780 (11th Cir. 2004),
abrogated on other grounds by Diamond Crystal Brands, Inc. v. Food
Movers Int’l, Inc., 593 F.3d 1249, 1258 n.7 (11th Cir. 2010). In
short, “the expert must be qualified; his methodology must be
reliable; and his testimony must be helpful to the trier of fact.”
Doe v. Rollins Coll., 77 F.4th 1340, 1347 (11th Cir. 2023). “The
proponent of the expert testimony bears the burden of establishing
each requirement by a preponderance of the evidence. . . .” Id.
“Even expert testimony which satisfies these three
requirements, however, may nonetheless be excluded under Rule 403
if the probative value of the expert testimony is substantially
outweighed by its potential to confuse or mislead the jury, or if
it is cumulative or needlessly time consuming.” Frazier at 1263.
The admission of expert testimony is a matter within the discretion
of the trial court. Cook ex rel. Est. of Tessier v. Sheriff of
Monroe Cnty., Fla., 402 F.3d 1092, 1103 (11th Cir. 2005); Frazier,
387 F.3d at 1258.
II.
A. Factual Overview
According to the Complaint (Doc. #1), plaintiff John Judge
owns real property at 2618 50th Street West, Lehigh Acres, Florida
33971 (the Property) on February 22, 2008. (Doc. #78-1.) Vest
sues Defendants on strict liability and negligence claims based on
the presence of the Chinese drywall in the Property. (Doc. #80,
p. 2.)
B. Howard Ehrsam
Defendants argue that Mr. Ehrsam’s opinions are “unreliable,
speculative, and otherwise unhelpful to the trier of fact.” (Doc.
#77, p. 8.) Plaintiff responds that objections to the factual
foundation of the opinion go to credibility not admissibility, and
that the corrosion caused by defective drywall is relevant and
probative for a jury considering damages. Because the substance
of his generic opinions is the subject of stipulations, and Mr.
Ehrsam has no opinions specific to this plaintiff or property, the
motion will be granted.
Mr. Ehrsam has a B.A. in Civil Engineering, a Professional
Engineer license, and is a Certified General Contractor. Based
on his own personal experience with Chinese drywall, Mr. Ehrsam
created Chinese Drywall Screening, LLC in 2009. Over the next 11
years, Mr. Ehrsam and his team completed more than 3,000
assessments for corrosive and/or Chinese drywall. Mr. Ehrsam was
retained to provide “generic expert opinions” “based on overall
experience inspecting properties with KPT drywall.” (Doc. #77-
2, p. 6.) Mr. Ehrsam did not perform an individualized inspection
of plaintiff’s property. Mr. Ehrsam’s generic opinion was that
uppercase KPT drywall has a tendency to emit gases and can cause
corrosion and/or damage to component parts in homes.
Mr. Ehrsam testified in deposition that he was opining as to
the generic effects of KPT drywall on property in general, not any
particular property. Mr. Ehrsam could not say with any scientific
degree of certainty whether any personal property in individual
homes was affected by Chinese drywall unless he inspected the homes
personally, which he had not done. Mr. Ehrsam stated that he was
not providing any individual causation opinions with respect to
individual properties that had KPT drywall; he was not offering
any opinions as to any individual damages due to the presence of
uppercase KPT drywall; he was not offering any opinions as to
whether any individual plaintiff sustained health effects due to
the presence of KPT Chinese drywall; he was not offering any
opinions as to whether any particular individual sustained damages
in the form of a short sale or bankruptcy; and was not providing
any opinions with respect to whether any individual sustained any
diminution in value due to the alleged presence of uppercase KPT
drywall. (Doc. #77-1 at 20, 21-22, 23-25.)
Defendants indicate that “[h]ere, the Knauf Defendants will
stipulate in the pretrial order that KPT drywall can emit sulfur
under certain conditions, similar to previous stipulations in
other Chinese drywall cases.” (Doc. #77, p. 16 n.25.) Mr.
Ehrsam’s testimony would go no further than the general
stipulations.
As discussed below, any general opinion on damages would be
excluded by the economic loss rule. Additionally, the probative
value of the generalized testimony is substantially outweighed by
its potential to confuse or mislead the jury. The motion will be
granted, and Mr. Ehrsam will not be permitted to testify as an
expert witness.
C. Shawn Macomber
Mr. Macomber has a master’s degree in construction
management, is certified as a Defective Drywall Consultant and
Remediator, and has completed all training to be an independent
insurance adjuster. Mr. Macomber has performed Chinese drywall
inspections since 2009 and has participated as an expert witness
in Chinese drywall cases. Mr. Macomber’s qualifications as an
expert witness are not being challenged.
Mr. Macomber was retained to provide opinions on Chinese
drywall litigation, including: (1) The under-air and gross square
footage for the affected property; (2) The presence of defective
Knauf-manufactured drywall in the living space of the property;
(3) The meaning of “complete remediation of the home”; (4) The
projected cost of remediation of the Property utilizing the R.S.
Means methodology/formula approved by MDL-2047; and (5) The
projected cost of remediation of the Property utilizing Xactimate.
(Doc. #77-3 at 5-6.) Mr. Macomber did not inspect the property.
(Doc. #77-5.)
Defendants argue that Mr. Macomber’s opinions fail the second
and third prongs of the expert witness standard because his
opinions “are speculative, unreliable as to causation, and
otherwise unhelpful.” (Doc. #77, p. 17.) This is so, Defendants
argue, because the Florida economic loss rule precludes Judge’s
recovery in tort of all (or at least most) of the damages it seeks,
making Mr. Macomber’s opinions on such precluded matters neither
relevant nor helpful to the trier of fact. (Id. at 17-20.)
Defendants also argue that Mr. Macomber’s inspection and damage
opinions are speculative and unreliable because he failed to
identify the presence or the extent of KPT drywall in the Property,
precluding a reliable determination of damages. (Id. at 20-24.)
The Court discusses each argument in turn.
(1) Economic Loss Rule
Defendants argue that the Florida economic loss rule
precludes Vest’s recovery in tort of most, if not all, of the
damages it seeks, thus making Mr. Macomber’s opinions on such
precluded matters neither relevant nor helpful. Plaintiff
responds that Mr. Macomber’s opinions are not barred by the Florida
economic loss rule, and that Defendants’ argument is itself
precluded by prior rulings by the district judge handling MDL-2047
prior to its transfer back to the Middle District of Florida.
(Doc. #79.)
(a) Florida Economic Loss Rule
The Florida Supreme Court adopted a products liability
economic loss rule in 1987. Florida Power & Light Co. v.
Westinghouse Elec. Corp., 510 So. 2d 899 (Fla. 1987). “[T]he
economic loss rule is a judicially created doctrine that sets forth
the circumstances under which a tort action is prohibited if the
only damages suffered are economic losses.” Tiara Condo. Ass'n,
Inc. v. Marsh & McLennan Companies, Inc., 110 So. 3d 399, 401 (Fla.
2013) (citing Indem. Ins. Co. of N. Am. v. Am. Aviation, Inc., 891
So. 2d 532, 536 (Fla. 2004)). The economic loss rule “was
introduced to address attempts to apply tort remedies to
traditional contract law damages” and was “the fundamental
boundary between contract law, which is designed to enforce the
expectancy interests of the parties, and tort law, which imposes
a duty of reasonable care and thereby encourages citizens to avoid
causing physical harm to others.” Casa Clara Condominium Ass'n,
Inc. v. Charley Toppino and Sons, Inc., 620 So. 2d 1244, 1246 (Fla.
1993). In 2013, the Florida Supreme Court re-affirmed its
economic loss rule but confined it to products liability cases,
receding from its prior expansion of the rule. Tiara Condo., 110
So. 3d at 407 (“[W]e . . . hold that the economic loss rule applies
only in the products liability context. We thus recede from our
prior rulings to the extent that they have applied the economic
loss rule to cases other than products liability.”)
The “economic losses” which may not be pursued in a tort claim
are defined as “damages for inadequate value, costs of repair and
replacement of the defective product, or consequent loss of
profits,” and include “the diminution in the value of the product
because it is inferior in quality and does not work for the general
purposes for which it was manufactured and sold.” Casa Clara, 620
So. 2d at 1246 (citation omitted). These “disappointed economic
expectations” are protected by contract law, rather than tort law.
Id. On the other hand, a claim for personal injury or damage to
“other property” is not barred by the economic loss rule. Id. As
the Eleventh Circuit summarized:
The economic loss rule prohibits tort recovery
when a product damages itself, causing
economic loss, but does not cause personal
injury or damage to any property other than
itself. [] Economic loss includes damages for
inadequate value, costs of repair and
replacement of the defective product, or
consequent loss of profits—without any claim
of personal injury or damage to other
property. [] The rationale underlying the
economic loss rule is that parties should
protect against the risk of economic loss
during contract negotiations through warranty
provisions and price adjustments rather than
attempt to recover under tort law after the
loss occurs.
Pulte Home Corp. v. Osmose Wood Preserving, Inc., 60 F.3d 734,
739–40 (11th Cir. 1995) (internal quotation marks and citations
omitted).
In cases where the economic loss rule applies, the Court must
distinguish between damages to the defective product itself
(recovery for which is barred in tort) and damages to “other
property” (recovery for which is permitted in tort).1 Id. at 741.
In Casa Clara, the Florida Supreme Court held that the
economic loss rule barred homeowners’ negligence claims against a
subcontractor who supplied faulty concrete used in their homes.
The Supreme Court rejected the homeowners’ assertion that “other
property” damage had occurred when steel reinforcement rods rusted
due to the unusually high salt content of the concrete. Casa
Clara, 670 So. 2d at 1247. The Court explained: “The character
of a loss determines the appropriate remedies, and, to determine
the character of a loss, one must look to the product purchased by
the plaintiff, not the product sold by the defendant.” Id. (citing
King v. Hilton-Davis, 855 F.2d 1047 (3d Cir. 1988)). Because the
concrete was “an integral part of the finished product” —the house
1 There is no suggestion that any individual has been
physically injured as a result of the Chinese drywall in the
Property, so the Court need not discuss that aspect of the economic
loss rule.
the buyers had bargained for— the “other property” exception did
not apply. (Id.)
In Pulte Home Corp., Pulte asserted a negligence claim against
a defendant who sold it treated plywood which could not be used in
attic environments. Pulte asserted that if it had been warned
that the treated plywood was inferior in quality and would not
work for the general purposes for which it was manufactured and
sold, Pulte would not have bought the product. The Eleventh
Circuit found that Pulte’s negligence claim presented precisely
the type of “disappointed economic expectation” claim that
Florida's strict interpretation of the economic loss rule
foreclosed. Pulte Home Corp., 60 F.3d at 741.
The Eleventh Circuit then discussed whether Pulte had
established that its case fell within the “other property”
exception to the economic loss rule by showing damage to property
aside from the plywood. The facts established that:
Pulte incorporated the FRT plywood into its
townhouses, such that the deterioration of the
plywood destroyed the structural integrity of
the roof. As a result, Pulte was forced to
remove and replace the FRT plywood. In doing
so, Pulte also had to remove and replace other
portions of the roof, including untreated
plywood and shingles. These other roof
components form the basis of Pulte's “other
property” argument.
Id. The Eleventh Circuit found that Pulte had not established
that there was damage to “other property.”
Under the Casa Clara definition, the product
bargained for and purchased by Pulte was the
Osmose-treated FRT plywood. Based on the
evidence offered at trial, the FRT plywood
itself was the only property damaged. Although
Pulte did replace roof components other than
the FRT plywood, these components were not
replaced because they were damaged. Rather,
replacing the shingles and other materials was
merely a consequence of replacing the damaged
FRT plywood. Casa Clara specifically stated
that economic loss includes the costs of
replacing the defective product. [] These
costs simply do not trigger the other property
exception. As such, the other property damage
Pulte complains of is nothing more than pure
economic loss for which Pulte cannot recover
in tort.
Id. at 742 (internal citation omitted).
More recently, in 2711 Hollywood Beach Condo. Ass'n, Inc. v.
TRG Holiday, Ltd., 307 So. 3d 869, 870 (Fla. 3d DCA 2020), a
condominium association purchased the condominium building from
the developer. The building included a fire suppression system
(FSS) which had been installed during construction. The
association noticed leaks in the system and filed suit seeking
damages for future repairs and replacement of the system. A
defendant moved for partial summary judgment on the association’s
negligence and strict liability claims based on the economic loss
rule, relying on Casa Clara. Summary judgment was granted, and
plaintiff appealed.
The Florida appellate court affirmed, stating:
In Casa Clara, the Florida Supreme Court held
that to the extent a products liability claim
arises in the context of real estate, the
economic loss rule applies. 620 So. 2d at
1247–48. The court applied the “object of the
bargain” rule—in order “to determine the
character of a loss, one must look to the
product purchased by the plaintiff, not the
product sold by the defendant.” Id. at 1247
(citing King v. Hilton–Davis, 855 F.2d 1047
(3d Cir. 1988)). The allegedly defective
material in Casa Clara, the concrete, was an
“integral part of the finished product,” and,
as such, the injury it caused was not
considered damage to “other” property. Id.
The Association bargained for, purchased and
received a building; Nibco’s fittings were
only a component of the FSS, incorporated into
the building. Applying the rule set forth in
Casa Clara, the Association purchased a
completed building from the developer. Nibco's
fittings were “an integral part of the
finished product and, thus, did not injure
‘other’ property.” Id.; see also Saratoga
Fishing Co. v. J.M. Martinac & Co., 520 U.S.
875, 883, 117 S. Ct. 1783, 138 L. Ed. 2d 76
(1997) (stating that parts and fittings that
become integral components of something else
“constitute a single product for purposes of
the economic loss doctrine” because “all but
the very simplest machines have component
parts” and any other holding “would require a
finding of ‘property damage’ in virtually
every case where a product damages itself.”
(quoting Va. Sur. Co. v. Am. Eurocopter Corp.,
955 F. Supp. 1213, 1216 (D. Haw. 1996); E.
River S.S. Corp. v. Transamerica Delaval,
Inc., 476 U.S. 858, 867, 106 S. Ct. 2295, 90
L. Ed. 2d 865 (1986)). Injury to the building
itself is not injury to “other” property
because the product purchased by the
Association was the building. See Casa Clara,
620 So. 2d at 1247. The economic loss rule
therefore bars the Association's recovery as
to Nibco to the extent that it sought damages
to replace the FSS and repair damage to the
building.
On appeal, the Association again concedes that
Casa Clara is good law but argues that this
Court should refrain from applying it here for
policy reasons. We decline that invitation. In
the over thirty years the economic loss rule
has been applied by Florida courts, the
Florida Supreme Court has carved out several
exceptions. This case, however, falls squarely
within the parameters of the rule.
2711 Hollywood Beach Condo. Ass'n, Inc., 307 So. 3d at 870–71.
(b) Application of Economic Loss Rule
Here, it is undisputed that Plaintiff purchased a home in
which a prior owner had previously installed Chinese drywall. The
product purchased by Plaintiff was the home, and the drywall had
been an integral part of the home for some time. As in 2711
Hollywood Beach Condo. Ass'n, Inc. and Casa Clara, injury to the
home is not injury to “other property” because the product
purchased by Plaintiff was the home. 2711 Hollywood Beach Condo.
Ass'n, Inc., 307 So. 3d at 870-71; Casa Clara, 620 So. 2d at 1247.
Therefore, Plaintiff cannot pursue the economic damages it seeks.
Id.
Most of the damages Plaintiff seeks qualify as economic
damages which are not recoverable in product liability tort claims.
Of these, only damages to “other property within the real property”
are recoverable. The Complaint states that plaintiff seeks
damages that include “costs of inspection; costs and expenses
necessary to fully remediate or abate their home; cost of
alternative living arrangements; cost to replace other personal
property that has been damaged; lost value or devaluation of their
homes; stigma damages; and, loss of use and enjoyment of their
home and property.” (Doc. #1, ¶ 21.) Of these, only damages to
personal property may be recoverable. Therefore, most of the
damages which Plaintiff seeks are precluded by the economic loss
rule, and Mr. Macomber will not be permitted to offer an opinion
concerning such precluded damages. Mr. Macomber may, however,
offer an opinion as to damages to “other property” if such damages
exist.
(c) Prior MDL Opinions
Plaintiff argues that the Court is forbidden from making this
determination because it is inconsistent with a 2010 decision by
the MDL-2047 district judge which denied motions to dismiss based
on the Florida economic loss rule. According to Plaintiff, this
prior decision is the “law of the case” which cannot now be changed
by a transferor district court. (Doc. #79, pp. 5-6.) The Court
concludes that the prior decisions are not the “law of the case”
as to the trial evidentiary issues now before the Court.
In re Chinese Manufactured Drywall Products Liab. Litig., 680
F. Supp. 2d 780 (E.D. La. 2010), involved motions to dismiss tort
claims of plaintiffs who purchased homes already containing
Chinese drywall. Id. at 785, 791. The motions to dismiss argued
that the Florida economic loss rule limited tort recovery in such
circumstances to personal injury and/or damage to “other
property,” but barred any recovery for economic damages such as
injury to the product, repair costs, inspection costs, relocation
costs, and diminution in value.
The MDL Judge refused to dismiss the claims, holding that the
Florida economic loss rule did not bar tort claims by plaintiffs
who had purchased a home already containing Chinese drywall. The
MDL Judge recognized that Casa Clara Condo. Ass'n, Inc. v. Charley
Toppino & Sons, Inc., 620 So. 2d 1244, 1247 (Fla. 1993) had
concluded that when homeowners purchase finished homes already
containing a defective product, the finished homes constituted the
“product.” Id., 680 F. Supp. 2d at 791. The MDL Judge engaged
in a lengthy discussion of the history of the economic loss rule,
including Pulte Home Corp. v. Osmose Wood Preserving, Inc., 60
F.3d 734, 741–42 (11th Cir. 1995). Id. at 794-95. The MDL Judge
distinguished these Florida cases, however, holding that they
involved structurally inferior components, while the Chinese
drywall was not structurally inferior and had not failed to serve
its intended structural purpose. Instead, “its defects go beyond
disappointed economic expectations, causing harm which justifies
access to tort remedies.” Id. at 793. The MDL Judge also found
the drywall “involves a potential hazard to health and property”
and plaintiffs had “alleged actual physical injury as a result of
the Chinese drywall in their homes, thus the rationale in Casa
Clara is not applicable.” Id. The Court was also concerned that
Casa Clara was a 4-3 decision with strong dissents, and later
Florida Supreme Court decisions “have cast doubts on” it. Id. at
793-94.
Plaintiff argues that the discussion of the Florida economic
loss rule is the law of the case which must be followed in all
subsequent stages of the case. The Court disagrees.
The typical formulation of the law of the case doctrine
provides:
A decision of a legal issue or issues by an
appellate court must be followed in all
subsequent proceedings in the same case in the
trial court or on a later appeal in the
appellate court, unless (1) the evidence on a
subsequent trial as substantially different,
(2) controlling authority has since made a
contrary decision of the law applicable to
such issues, or (3) the decision was clearly
erroneous and would work a manifest injustice.
Baumer v. United States, 685 F.2d 1318, 1320 (11th Cir. 1982)
(quoting White v. Murtha, 377 F.2d 428, 431–32 (5th Cir. 1967)).
See also Cambridge Univ. Press v. Albert, 906 F.3d 1290, 1299 (11th
Cir. 2018) (findings and fact and conclusions by an appellate court
are generally binding in all subsequent proceedings in the same
case); United States v. Williams, 728 F.2d 1402, 1405–06 (11th
Cir. 1984) (citing Baumer). “The doctrine is based upon the sound
policy that litigation should come to an end. It protects against
the agitation of settled issues and assures obedience of lower
courts to the decisions of appellate courts.” Williams, 728 F.2d
at 1406 (citation omitted). Here, of course, there is no appellate
decision at issue, so the normal law of the case doctrine simply
does not apply.
The Eleventh Circuit has discussed the concept, however, in
the context of trial-level decisions.
At the trial court level, the doctrine of the
law of the case has been described as “little
more than a management practice to permit
logical progression toward judgment.” [] It is
recognized that when cases are transferred
from one judge to another judge in the same
court, the transfer should not be treated as
an opportunity to relitigate all the questions
decided by the first judge. [] However, the
subsequent judge should never be bound by an
erroneous ruling of law.
Williams, 728 F.2d at 1406 (internal citations omitted). These
principles do not bar the Court from following the Florida economic
loss rule at trial in the manner set forth above.
At least one circuit, however, has applied the law of the
case doctrine in the context of an MDL proceeding. In re Ford
Motor Co., 591 F.3d 406, 411 (5th Cir. 2009) (“The better view is
. . . that transferor courts should use the law of the case doctrine
to determine whether to revisit a transferee court’s decision.”)
“The law of the case doctrine requires that courts not revisit the
determinations of an earlier court unless “(i) the evidence on a
subsequent trial was substantially different, (ii) controlling
authority has since made a contrary decision of the law applicable
to such issues, or (iii) the decision was clearly erroneous and
would work . . . manifest injustice.” Id. at 411–12.
Even assuming the law of the case doctrine articulated in In
Re Ford Motor Co. applies, it is not being violated here. The
Court is not re-addressing the motions to dismiss decided by the
MDL Judge. Rather, the Court is addressing new issues of how the
Florida economic loss rule impacts the admissibility of evidence
at trial and expert opinion testimony at trial. Furthermore, the
MDL Judge relied on the allegation there was personal injury, but
there is no such assertion in this case. While the Court’s
analysis of the impact of Florida case law differs from the MDL
Judge, the more recent Florida decision in 2711 Hollywood Beach
Condo. Ass'n, Inc. confirms that Casa Clara remains good law, that
the structural-soundness distinction does not make a difference,
and that concerns about the continued viability of Casa Clara in
the products liability context were not borne out.
Plaintiff also argues that the law of the case includes the
Findings of Fact & Conclusions of Law Related to The June 9, 2015
Damages Hearing (Doc. #65-1) in MDL-2047. (Doc. #79, p. 7.) Some
MDL defendants were in default and the MDL Judge had already
entered a liability judgment, so the MDL Judge followed Fed. R.
Civ. P. 55(b)(2) to determine the amount of damages. (Doc. #79-
1, p. 30.) The hearing “considered only remediation damages for
current owners.” (Id.) “After considered analysis of the
impracticality and risks of the selective remediation approach,
the Court found in Germano and re-affirms herein that remediating
a Chinese drywall property requires complete remediation and
cleaning. . ..” (Id. at 14.) The MDL Judge found that “proper
remediation of the danger posed by Chinese drywall must include
the removal of all drywall, all electrical wiring, the entire HVAC
system, and many other items such as appliances, carpet, cabinetry,
trim work and flooring.” (Id. at 14-15.) The MDL Judge further
found that “a formulaic method used to calculate remediation
damages is fair and reasonable,” (Id. at 29) and adopted “Mr.
Inglis’ damages methodology to quantify the aggregate damages.”
(Id. at 49.)
Thus, this decision determined how damages were to be
calculated for defaulted defendants. Nothing in this decision
addressed the Florida economic loss rule. Nothing in the Court’s
current Opinion and Order changes that decision, and the
methodology still applies when those damages are recoverable. The
law of the case doctrine does not apply here.
(2) Quality of Inspection and Helpfulness to Jury
Defendants argue that the inspection and damage opinions are
speculative and unreliable because the presence or extent of KPT
drywall was not identified. (Doc. #77, pp. 21-24.) While it is
not clear if any of Mr. Macomber’s opinions survive the economic
loss rule, the criticisms voiced in these sections of the motion
go to the weight of the opinions, not their admissibility. These
arguments are therefore rejected as a basis to exclude testimony.
Accordingly, it is hereby
ORDERED :
Defendants' Motion in Limine to Exclude or Limit the Expert
Testimony of Howard Ehrsam and Shawn Macomber (Doc. #77) is GRANTED
as to Howard Ehrsam and GRANTED as to Shawn Macomber to the extent
that Mr. Macomber may not express opinions on any component of
damages other than “other property” (if there is any in this case)
as discussed above.
DONE and ORDERED at Fort Myers, Florida, this 28th day
of February 2024.
f <= Cf
At Ws E., Zook
J9GHN E. STEELE
SHNIOR UNITED STATES DISTRICT JUDGE
Copies:
Counsel of Record