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The 7th U.S. Court of Appeals has overturned the Pella window class action settlement after finding that the attorneys for the Class Members were set up to benefit substantially at the expense of the class. “In this case, despite the presence of objectors, the district court approved a class action settlement that is inequitable—even scandalous,” the appellate court said.
The Pella window class action lawsuit was initially filed nearly eight years ago by plaintiff Leonard E. Saltzman. It alleged that Pella Corp.’s “ProLine Series” casement windows manufactured and sold between 1991 and 2006 had a design defect that allowed water to seep behind the aluminum cladding and caused wood rot. Four other Class Members were eventually added as plaintiffs in the Pella class action lawsuit.
The Pella window settlement was reached in 2012 and approved last year by a federal judge. The class action settlement granted $11 million in attorneys’ fees and purported to provide $90 million to Class Members. However, “the claim forms are so complicated that Pella could reject many of them on the ground that the claimant had not filled the form out completely and correctly,” the appellate court said. Further, many Class Members were only offered a coupon to be used for future window purchases, which may not be worth much to them.
“The restrictions that Pella was allowed to place on the settlement would, if upheld, enormously reduce the Class Members’ recovery of their losses, and the residue is to be returned to Pella,” the appellate court said.
According to the 7th Circuit, the four other named plaintiffs opposed the Pella class action settlement when it had been presented to the district court for preliminary approval. Saltzman was the only plaintiff to support it. The plaintiffs in opposition were subsequently removed and four others who supported the class action settlement were added in their place. The initial class action settlement agreement reportedly only offered incentive awards to the class representative who approved the settlement. “This created a conflict of interest: any class representative who opposed the settlement would expect to find himself without any compensation for his services as representative,” the appellate court noted.
Out of more than 225,000 Class Members, only 1276 had submitted claims as of February 2013. These claims were worth just $1 million. Although nearly 10,000 more claims were filed after the Pella class action settlement was approved, “there is no evidence that Pella would pay the maximum benefits on all, or indeed on any, of the claims,” the appellate court said. “We just don’t understand the judge’s valuing the settlement at $90 million or thinking the feeble efforts of class counsel … to obtain benefits for the class (as distinct from benefits for themselves in the form of generous attorneys’ fees) worth $11 million.”
The appellate court further noted that Paul M. Weiss, lead counsel for the class, was Saltzman’s son-in-law, creating “a grave conflict of interest.” Although the class action settlement agreement also designates another firm as lead counsel, the class action settlement terms “gave lead class counsel ‘sole discretion’ to allocate the award of attorneys’ fees to which the parties had agreed among the class counsel, and Weiss proposed to allocate 73 percent of the fees to his own firm,” the appellate court said. Further, Pella allegedly agreed to advance $2 million in attorneys’ fees to lead class counsel even before notice of the Pella class action settlement had been sent to Class Members.
“Class counsel sold out the class,” the three-judge panel concluded.
The following statement has been posted on the Settlement Administrator’s website: “On June 2, 2014, the Seventh Circuit Court of Appeals reversed the District Court’s approval of the Settlement previously reached in Saltzman v. Pella. If a party to the litigation so chooses, it has until June 16, 2014 to seek rehearing at the Court of Appeals. Additionally, if a party so chooses, it has 90 days to petition the U.S. Supreme Court for review. If no party seeks rehearing, the 90 days will run from June 2, 2014. If any party to the litigation seeks rehearing, the 90 days will run from the Court of Appeals resolution of any motion for rehearing.”
The Pella Window Class Action Lawsuit is Saltzman v. Pella Corporation, et al., Case no. 06-cv-4481, in the U.S. District Court for the Northern District of Illinois.
UPDATE: On Feb. 8, 2018, after years in court, Pella Corporation agreed to pay close to $26 million to settle a class action lawsuit that alleged a line of its windows leaked and caused wood rot.
UPDATE 2: On March 23, 2018, the revised Pella ProLine windows defect class action settlement is now open. Click here to file a claim.
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84 thoughts on‘Scandalous’ Pella Window Class Action Settlement Overturned
My pella window rotted out the wood. How can I get a refund. I am so disgusted with Pella. I would never buy Pella again.
The Pella casement windows in our dinning room have failed miserably. We had a company come out to our home to provide an estimate on replacing the windows, and he told us that Pella is aware of the wood rot failure and this may be covered under warranty. So now a representative from Pella calls to make an appointment to come to the home and tells my wife he is unaware of any warranty extension, but reveals a class action suit and offers no additional information. I just read this suit and of course the real story is how Pella customers are being treated and compensated. It seems as though we may be left on our own to fix their poor manufacturing defect. I live in the East and winter will be here in just a few months, and I have 8 large casement windows to replace. Pella should be held responsible for this, and I will definitely contact the attorney that is in Jay’s post above. 40% on parts, plus labor offering is a joke, why would we allow Pella to profit on this class action suit. I am not happy and this is going to cost me thousands.
Purchased a house 2 years ago that was built in 2003. So disappointed when we recently realized all of the pella pro line casement windows on the front of our house are rotting. Pella has offered a 40% discount on parts plus labor. I’m not really sure where to go from here. If the windows are defective why isn’t Pella doing more to maintain their brands image. Really really disappointed in Pella. I wouldn’t buy another home with Pella windows & unfortunately I am stuck with having to replace the windows in my current home so further damage isn’t done. After reading some of the posts above I’m wondering whether I should contact the class action attorney or seek independent legal advice before replacing the 11 casement windows on the front of my home. Any thoughts or experiences would be appreciated. Thanks!
Noticed rotting of my windows over flowerbeds. Ten year warranty ran out one year ago. Pella was here to investigate said that they were not liable for any of the window damage. They stated that I did not properly maintain the windows with additional caulking. The entire cost would be ours. Then the replacement windows are of a completely different style.
I too would like to know how to file a claim. We were not contacted by the attorneys handling the case. We used Pella windows in our home when we built it in 2005 and have had problems ever since. As a matter of fact, we have had Pella “officials” out to our home several times and they always have an excuse what is wrong with the windows. Would love to be part of this lawsuit!
The time to file a claim has expired with this class action suit. I spoke to one of the lawyers who is representing many of those who are in the class action case and he is very helpful and knowledgeable about this new development and if Pella decides not to agree to a new benefit package he may be able to add new people on to this new case. His name is George Lang out of Chicago and his phone number is 773-575-5848. He can add you to his data base and they will send you an update as they become available. Hope this helps some of you searching for answers about this Evil company known as Pella and the garbage they sold us.
Jay
I purchased a proline Pella bay window in 2003 and had a contractor install it. When I went to clean the frame my finger went right through it!!!! The whole bottom is rotted. The outside of my window is currently being propped up with 2×4 ‘s. I called the contractor who put it in and he said there was nothing wrong with the instillation but the glass was not sealed on the bottom and for 11 years water has been collecting and rotting all the wood. (I would say that this is a manufactures defect) I called Pella who said it was out of warranty. Can I take them to small claims court?? Not only do I need a new window but I have to have it installed–very expensive
How do I file a claim
Once again, ” justice is done ” ?? I sent the forms in timely fashion with supporting documents PLUS a 45 minute video which documented my archetect and builder’s discovery of how the Pella casement windows had failed to perform, the massive rotted framing and rotted sheathing on our house, the replacement of all Pella windows on the south ( weather ) side of our house with Anderson 400 series windows, and copies of bills for labor and materals totalling some $ 12,000!!
I think I’ll edit down the video into 20 min or less and run it on YouTube
We filed a claim a long time ago…very involved…I sent
Pictures of our rotted window…before I got any response back for a settlement we had to change out the window because it was doing so much damage to other parts of my house( we replaced it with a different brand). In the end all Pella offered was to replace the window at 30% off the regular price, and we had to pay for the installation! Big deal! When they have a sale that is what is offered anyways! When I explained that we had already replaced the damaged window they did not offer any further compensation. So I am not sure what this latest statement means if anything to us who did not get any REAL compensation.
Hello Carol Poindexter, it has been quite some time since you posted your comment, but I was just wondering the brand of window you replaced your Pella windows with. I have serious wood rotting issues due to ice buildup on interior of defective Pella windows. Makes me so sick as we paid so much money for windows that barely lasted 8 years and we do not want to replace them with same Pella windows that could end up with so many problems again. Also do not want to have to deal with Pella customer service ever again as it is so BAD! Thank you!
My advice to you is Anderson they back up there products I been a carpenters for thirty years when I call the manufacturing rep sent from Syracuse they charged me 135 dollars to tell me I was 1 or two years past warranty and said nothing about class action to me got robbed twice this was a proline slider that I installed perfectly now have to do it again BUT ANDERSON ONLY
Can someone tell me what this means to those of us who have filed a claim? If someone understands the legal process and understands the above explanation if you can expound that would be helpful.
Thanks, Jason
just discovered rotted window, very disapointed in in pellas product 6-13-14