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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
We also have rotting windows from the Pella windows we put in our whole house in 2001. I was not aware of the first lawsuit. Please add me to the distribution list related to Pella windows if such a thing exists.
It alleged that Pella Corp.’s “ProLine Series” casement windows had a design defect that allowed water to seep behind the aluminum cladding and caused wood rot. ALLEGED?!?! I ALSO have this EXACT problem. I have rotten windows that I cant even open because the hardware has fallen off the rotten windows! Ive sent pictures and estimates from contractors and I too am screwed just like the rest of the home owners. I am looking at about $7k in repairs and Pella is only offering 30% off materials so its just like any sale price for them. The home owners have been victims TWO times here. First victims of defective windows and SECOND victims of a crooked greedy POS lawyer!
I am in the same stinking, sinking, and shrinking boat as you are, where do we go from here? I have no idea, but the ONE THING I do know, is that I let everyone know the truth about pella…they are NOT to be TRUSTED for anything!!!!! I put $35k of windows and doors in our new house in 2002, what a disgrace to have pella anything in my house. If I knew any more I’d tell you. I would expect thins from a cut rate company like FLY by NIGHT or other fictional company.
I built a home in 2005 w/over 50 Pella Proline windows in the house, many casement windows. I submitted a claim form, very involved process with filling out the claim form and providing proof of ownership, pictures, etc. I’d like to also know, what does this mean for those of us with rotten window frames? I have a huge 3 window w/3 transom windows above that’s all one piece. Pella offered to cut out one window casement in the middle rather than replace the whole unit… are you kidding me!?!!?!! I explained to them it will look like a hack job, but Pella doesn’t care and indicated that’s all they have to do for the settlement agreement… just wrong in my opinion. The 3×3 window is several thousand dollars. Not happy!
There is an ongoing case for the Pella Architect and Proline series clad windows that is now in the discovery stage so there is still a chance of help. Looks like Pella should be forced to recall all these clad windows. They will spend more on lawyers in the long run and I for one will never buy Pella again.
I found this link: http://www.wbmllp.com above. When I called I was refereed to their NC office. You can use the contact tab to send information. If you feel like talking to a live person Try Scott Heldman in NC at 919 – 600 – 5000
Just found this problem last fall. I purchased my windows in 2000 in construction stage and they have just started failing in any location exposed to weather. No problems so far under 8 to 10 foot decks.
The Marvin Integrity clad windows in two other buildings on site are NO PROBLEM.
I screwed up BIG TIME and did not see/read the original statement that was delivered by US mail. However, it was in a stack of bills, so we still had it. Once opened, it was if a brick hit me on the head and cursed myself for missing it. I think the remand may help my situation. Hoping so. I was directed to two Chicago Law firms that are handling the re-class. It is an ugly situation. The funny thing about it, we are from Pella and 100% Dutch. it would be nice to find out the administration is to see if they are local…
This reversal is obsurd! because the original claimant and his “son-in-law” seem to have contrived a get rich situation why should we, the actual ones who have suffered the damage be excluded? I between 60 and 70 Pella windows in my building and if one Pro-Line is opened by mistake I have to go outside and push the window closed to get it locked. The wood is rotten, aluminum clading on some has fallen off and I have water damage not only to the rotted windows, but to my dry wall sills. I have a tremendous amopunt of damage to repair, not just windows! The catch 22 in all of this is I never wanted Pella windows when I built this place and I have letters on file with Architect, Bjilder and Lawyer. I have Anderson windoe=ws in my other place for over 27 years and not one leak! I think the action is legit and warrantied, so why does someone like me get screwqed becuase the lawyers screwed up???? I was waiting for a favorable decision to sue the builder for putting in Pella when he was not instructed to do so. What bullcrep!!!
Pella Pro-line exterior patio doors are also clad and I have 5 of them.
All have wood rot . I went to the Pella store in Ohio and the problem
was only addressed by saying I could purchase a replacement door panel
for $875.00. I went to a local Lowes store, the whole complete door system
cost $875.00 . This is what America gets for allowing corporations to control
the legal system . Buying the results! Payed off big for Pella.
I have an update for everyone. This is from one of the attorneys that was on the Pella case…..Hello,
We are sending you this email because we have you listed in our database as someone who has previously contacted us about defective Pella Proline windows in your home. As you may be aware, the settlement you have previously been given notice of was recently rejected by the 7th Circuit Court of Appeals and remanded for further proceedings. As a result of that decision, Complex Litigation Group will no longer be involved in the litigation. While we deeply disagree with the decision, we realize that that the issue of your defective ProLine windows is important to you, and we want to be sure that you are placed in the hands of knowledgeable counsel who can ensure that your interests in this litigation are vigorously protected, and also for you to have a point of contact to whom you can direct questions and be provided with updates.
In that regard, we are recommending to you the law firm of Whitfield Bryson & Mason (WBM). WBM is one the leading law firms pursuing litigation against defective construction products, and they are co-lead counsel in litigation involving Pella Architect and Designer Series windows. We have asked them to respond to any questions that you may have and provide updates in the future. Please email sheldman@wbmllp.com to confirm your desire to obtain updated information about this litigation from Whitfield Bryson & Mason. The attorneys from WBM, particularly Dan Bryson and Gary Mason, are nationally recognized experts in construction product related litigation. You can learn more about Mr. Bryson and Mr. Mason from their website at http://www.wbmllp.com. Rest assured that these attorneys and others who remain involved in the litigation are committed to bringing this case to a successful resolution.
Thank you.
please contact me
Please contact me if I can be added to the lawsuit. I just found out about the proline problem after all 12 of my casement windows and sliding glass door failed. Pella replaced 3 casements and the sliding door at no cost about 5 years ago but the other 9 casements have all rotted and need to be replaced. Thanks
I built a home in 2001and noticed problems with my windows approx 4 years later and called Pella, they indicated at this time that it was a installation problem. Over the years I have contacted Pella with the same complaint and have been given varied statements about why my windows are rotting. I have also been told my sashes are sagging and that all I need is a shim??? Never once was I told about problems with these windows and was always told that it would cost me money to have a Pella representative out to just look at my windows. However, recently when I found out there was a class action lawsuit, they sent someone out and gave me a estimate of 18K to fix and replace only 2 of my rotting windows, this was a 25% discount. I am thoroughly disgusted by PELLA. When the service gentlemen was out to my home and I asked why my other windows where not rotting, he replied because they are designer series. Like many of you I never was informed of the class action lawsuit and am very fearful I will be bearing the burden.