PPG: judge gives adverse ruling in Marvin case

The United States Eighth Circuit Court of Appeals ruled 23 March 2005 against PPG Industries in a breach-of-warranty case brought against it by Marvin Windows and Doors.
PPG, which is evaluating its …

The United States Eighth Circuit Court of Appeals ruled 23 March 2005 against PPG Industries in a breach-of-warranty case brought against it by Marvin Windows and Doors. PPG, which is evaluating its options for further appeals, estimates the total judgment, including interest, is between USD 145 and USD 150 million pretax, which the company plans to reserve in first quarter 2005. Marvin, of Warroad, Minnesota, alleged a wood preservative from PPG failed to prevent rot in its wooden windows manufactured during the late 1980s. The original suit was filed in April 1994. A district judge dismissed the case in 1999, a decision that Marvin appealed. The Eighth Circuit Court of Appeals confirmed the dismissal of 12 of 13 claims but allowed Marvin to move forward with a jury trial on a breach-of-warranty claim, which resulted in a judgment against PPG in 2002.