Products Liability Law Reporter

Dream Finders Homes LLC and DFH Mandarin LLC, builders with projects throughout the United States, purchased packages of Weyerhaeuser NR Co. joists for installation in approximately 40 new homes in the Denver area. The joists were coated with Generation 4 Flak Jacket, a fire suppressant. Weyerhaeuser later notified the builders that the joists were emitting unsafe levels of formaldehyde and required remediation. As a result, the builders were forced to stop construction to enable Weyerhaeuser to remove the coating from the joists. During this approximately eight-month period, the builders suffered millions of dollars in lost profits.

Dream Finders Homes and DFH Mandarin filed suit against Weyerhaeuser, alleging negligence, negligent misrepresentation, and fraudulent concealment. The plaintiffs claimed that the defendant had used urea-formaldehyde resin for the Generation 4 Flak Jacket to save money despite the fact that the resin emitted formaldehyde at a rate 45 times above what is considered acceptable.

The jury awarded $14.65 million. The court then awarded approximately $600,000 in costs. The defense has appealed.

Citation: Dream Finders Homes L.L.C. v. Weyerhaeuser NR Co., No. 2017-CV-034801 (Colo. Cir. Ct. Denver Cty. Mar. 27, 2020).

Plaintiff counsel: Josh H. Roberts, Peter P. Hargitai, and Laura Renstrom, all of Jacksonville, Fla.; and Thomas D. Leland and Maxwell Shaffer, both of Denver.