Solum v. CertainTeed Corp.
147 F. Supp. 3d 404
E.D.N.C.2015Background
- Plaintiffs Timothy and Angela Solum sued CertainTeed alleging that its website’s “Master Craftsman” designation for contractors was misleading, violating North Carolina’s UDTPA and amounting to common-law fraud after they hired a contractor listed as a Master Craftsman whose installation was defective.
- CertainTeed operates a "Find A Pro" search tool; users must accept a clickwrap "Terms and Conditions" before viewing results, which state that CertainTeed does not guarantee skills, endorse service professionals, or make representations about job quality.
- Plaintiffs allege the Master Craftsman credential was presented as prestigious, requiring rigorous coursework and credential vetting, but in truth could be obtained by passing a short online test and reading materials; plaintiffs later completed the courses themselves.
- Plaintiffs relied on the website listing (including the Master Craftsman label) when hiring the contractor; after defective installation they incurred costs to repair the work and sued CertainTeed for UDTPA violations and fraud.
- The district court considered CertainTeed’s website screenshots (attached to the motion to dismiss) as integral and authentic for deciding the Rule 12(b)(6) motion.
- The court dismissed both claims, concluding plaintiffs’ reliance was unreasonable as a matter of law because the website’s general claims were puffery and the clickwrap terms—and available online course information—would have allowed plaintiffs to discover the truth with minimal diligence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CertainTeed made unfair or deceptive acts under the UDTPA by representing Master Craftsman credentials | Master Craftsman label implied prestige, rigorous training, and credential vetting that plaintiffs relied on | Website statements were nonactionable puffery and the clickwrap terms disclaim endorsements and guarantees; plaintiffs could have discovered the truth | Claim dismissed: statements are puffery or discoverable; reliance unreasonable as a matter of law |
| Whether plaintiffs pleaded actual and reasonable reliance (proximate cause) for UDTPA | Plaintiffs say they read and relied on the site listing when hiring the contractor | Defendant says plaintiffs could have read the clickwrap or researched course requirements and thus reliance was not reasonable | Held: plaintiffs failed to plausibly allege reasonable reliance; UDTPA claim fails |
| Whether fraud claim met Rule 9(b) and North Carolina elements of fraud | Plaintiffs alleged misrepresentation of credential, intent to deceive, and damages from hiring the contractor | Defendant argued heightened pleading not met and reliance unreasonable so fraud cannot stand | Held: fraud dismissed—reliance unreasonable as a matter of law and heightened pleading not satisfied |
| Whether court may consider CertainTeed’s website screenshots on a 12(b)(6) motion | Plaintiffs contended screenshots were undated/unauthenticated/hearsay | Defendant maintained screenshots were integral to the complaint and may be considered | Held: court may consider the website pages as integral and authentic for the motion; hearsay objection overruled |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading standard — plausibility required)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (Twombly plausibility standard for complaints)
- Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308 (documents integral to complaint may be considered)
- Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487 (federal courts sitting in diversity apply forum state substantive law)
- Bumpers v. Cmty. Bank of N. Va., 367 N.C. 81 (UDTPA elements and reliance requirement)
- Dalton v. Camp, 353 N.C. 647 (deceptive act standard under UDTPA)
- Nemet Chevrolet, Ltd. v. Consumeraffairs.com, Inc., 591 F.3d 250 (court accepts well-pled facts and may disregard legal conclusions on 12(b)(6))
- Philips v. Pitt Cty. Mem’l Hosp., 572 F.3d 176 (documents integral to the complaint may be considered on motion to dismiss)
