Restoration Services > Masonite Hardboard Siding Class Action Settlement

There were many communities constructed using Masonite Hardboard siding for much of the siding construction. This product afforded the appearance of wood siding to meet with the architectural requirements of the community. However, this product is flawed in that it will absorb moisture through the back of the panel and eventually deteriorate. Unfortunately most of the housing was constructed without any vapor barriers on the sub-wall. Consequently, the moisture perspiring from the homes has accelerated the deterioration.

If Masonite hardboard siding was originally installed on your home between January 1, 1980 and January 15, 1998, you may have the right to compensation for damage associated with your siding, due to a class action settlement, if you file a claim in a timely manner.

What is Masonite Hardboard Siding?

Masonite is a leading manufacturer of the product made from wood fiber, wax and resins that are widely known as hardboard siding. Masonite siding is distributed both in lap (board) and panel (sheet) applications, each available in various external textures designed to look like conventional lumber siding. Masonite markets its siding products for a variety of external construction uses, including exterior siding for residential and other structures.

This Settlement does not concern Masonite products used for interior, roof, wall substrate, plywood or deck sheathing, or for purposes other than exterior siding. This Settlement also does not concern Masonite Omni Wood Siding (oriented-strand board, "OSB") and Woodruff roofing.

What are the terms of the Settlement?

The essential terms of the Settlement, given final approval by Court on January 15, 1998 are:

1. Eligible Claimants

   If you qualify as an Eligible Claimant, you may be entitled to recover under the Settlement Agreement. To be an Eligible Claimant, you must:

   1. Own property in the United States or its territories in which Masonite Hardboard Siding has been incorporated and installed from January 1, 1980 to January 15, 1998, and have not assigned the claim regarding the alleged damage caused by Masonite Hardboard Siding;
   2. Be a subsequent purchaser of such property and have properly documented assignments determined to be valid under the Settlement Agreement;
   3. Own or have formerly owned such property and have made Prior Un-Reimbursed Expenditures as defined by the Settlement Agreement.

   Eligible Claimants do not include persons, associations or entities that made claims or filed lawsuits against Defendants other than in the Naef class action, and their claims or lawsuits were resolved by payment, release or judicial action.

2. Compensation Formula
   1. Basic Formula

      The settlement Agreement contains a Compensation Formula, which will be the measure of payments to which an Eligible Claimant is entitled for the damage to a home or other structure. As agreed by the parties, the Compensation Formula will be based on (1) the average cost per square foot for siding replacement, including all material and labor as calculated by industry standards in your area, adjusted for inflation, or (2) the cost of appropriate refinishing as determined by industry standards in your area, also adjusted for inflation.

      If more than 50% of a wall section is found to have damage that can be compensated for, then the Eligible Claimant will receive compensation, determined by the Compensation Formula, for that entire wall section. If 75% of the Masonite Hardboard Siding square footage of the structure qualifies for compensation, then an Eligible Claimant will receive compensation, as determined by the Compensation Formula, for the entire structure.

   2. Discontinued Masonite Hardboard Siding Products for Which There Are No Reasonable Substitutes

      As of January 1998, Masonite has discontinued the manufacture of certain specified hardboard siding products for which there are no substitutes that are reasonably similar in appearance. If an Eligible Claimant owns a structure with any of these discontinued products, and has sustained qualified damage to more than 25% of an elevation (side) of the structure, then the Eligible Claimant will be paid under the Compensation Formula for the entire structure. If Masonite discontinues manufacturing other hardboard siding products after January 15, 1998 but during the term of the Settlement, and there are no substitutes for such products that are reasonably similar in appearance, then an Eligible Claimant, who has not previously been paid, who owns structures with discontinued products will be paid as follows: (1) if 25% of an elevation (side) has qualified damage, then the Eligible Claimant shall receive payment under the Compensation Formula for that entire elevation (side); and (2) if 15% of the entire structure has qualified damage, then the Eligible will be paid under the Compensation Formula for that entire structure. In addition, hardboard siding products that Masonite does not sell or market in countries or parishes are considered to be discontinued, and Eligible Claimants owning property in these countries or parishes are entitled to make claims for such discontinued products pursuant to the two-part formula set forth immediately above.

   3. Limited Age Deduction

      The Settlement Agreement also provides for an age deduction based on the number of years the Masonite Hardboard Siding has been installed and incorporated into the structure. For the first five years following installation, there is no deduction and Eligible Claimants will be entitled to full payment. For each year thereafter, there will be a deduction of three percent per year for use of the Masonite Hardboard Siding, up to a maximum deduction of twenty-seven percent.

3. Settlement Claims Program
   1. Claim Form and Procedures for Damage That Has Not Been Repaired and Product Identification

      To make a claim for damage that has not been repaired, a Class member must be an Eligible Claimant as defined above, and must submit a properly completed Claim Form to the Independent Claims Administrator, along with proof of product identification. Proof of the existence of the Masonite Hardboard Siding on an Eligible Claimant's property may be achieved by: (1) providing the independent Claims Administrator with a 6" by 6" sample of the hardboard siding on the home or property certified by the Claimant to have been from the structure in question that includes the lower drip edge for lap siding or the vertical groove for panel siding; or (2) a prior communication from Masonite that confirms that the siding in question is Masonite Hardboard Siding; or (3) submitting a Claim Form with a check for $100.00, which will be refunded if the Inspector determines the siding is a Masonite product; or (4) an invoice or warranty, along with photographs of the exterior walls of the structure, showing that the hardboard siding is a Masonite product; or (5) a photograph depicting the back of the Masonite siding and the Masonite product identification stamp.

   2. Inspection and Payment of Claim

      After receipt of a properly completed Claim Form, an Independent Inspector will inspect the Eligible Claimant's property to verify that he or she has qualified damage. All damage associated with siding that meets the agreed definitions of damage shall be qualified unless it is subject to one of the Causation Exceptions defined below. Inspectors are required to do an independent, objective inspection. If you request to be present for the inspection, an inspector will contact you. The inspector is not allowed to discuss your claim. After completion of the inspection, the Independent Inspector will forward his/her report to the Independent Claims Administrator, who will determine the amount of payment based on the information contained in the report of the Independent Inspector, according to the Compensation Formula defined above as applied to the damage qualified under the Settlement Agreement.

   3. Claim for Un-Reimbursed Expenditures

      Eligible Claimants also are entitled to make claims for Un-Reimbursed Expenditures associated with Masonite Hardboard Siding (1) if they made such Expenditures prior to January 15, 1998, or (2) if they, in good faith, had no knowledge of the Settlement Agreement and if such Expenditures were made on or before May 1, 1999. To make such a claim, the Eligible Claimant must properly complete a Claim for Un-Reimbursed Expenditures and must provide satisfactory proof (1) that the siding that is the subject of the claim was Masonite Hardboard Siding, (2) that the siding was damaged, (3) that the damage that is the subject of the claim was repaired or replaced, and (4) of the costs of any such repair or replacement work. In seeking to satisfy the first and second proof requirements, an Eligible Claimant may submit both (i) photographs showing damaged Masonite Hardboard Siding, and (ii) invoices, bills or other documents identifying the siding as Masonite Hardboard Siding. Un-reimbursed expenditures made after May 1, 1999 are not covered under the Settlement.

   4. Definitions of Damage

      To be entitled to payment under the Settlement, an Eligible Claimant must be determined to have qualified Damage as defined by the Settlement Agreement. The Settlement Agreement defines Damage as follows: (1) thickness swell exceeding a specified tolerance percentage; or (2) edge checking exceeding specified limits; or (3) fungal degradation which results in soft board in which moderate thumb pressure deforms or punches a hole in the board; or (4) buckling exceeding specified limits; or (5) wax bleed, or raised or popped fibers or fiber bundles; or (6) delaminated or cracked primer or primer peel or peeling, blistering or cracking of Colorlok siding finish; or (7) surface welting, or swelling around nail heads. The existence of any one of these problems qualifies the siding for compensation. Damage does not include: (1) intentional, reckless or negligent damage to siding (unrelated to installation or maintenance); (2) conditions requiring routine painting, washing, caulking or similar maintenance; or (3) damage to siding to the extent resulting from natural disaster including, but not limited to, fire, hurricane, flood, earthquake, earth movement or other similar events.

   5. Causation Exceptions

      If an Eligible Claimant has qualified Damage as defined above, he or she will be entitled to recovery unless one or more of the Causation Exceptions contained in the Settlement Agreement is determined to apply. The Causation Exceptions include damage caused: (1) by framing misalignment; (2) by studs spaced more than 18 inches on center (or more than 26 inches on center for product where 24 inches on center was approved by Masonite); (3) by missing nails or nails which do not appear to penetrate framing members; (4) by permanently installed sprinkler systems having directly sprayed the affected area; (5) by siding within two inches of the ground, excluding contact with shrubbery; (6) by the absence of or improper roof/wall flashing; (7) by the failure of a chimney cricket to extend to the edge of the chimney; or (8) only around a window assembly, at the Independent Inspector's discretion.

      For a Causation Exception to apply, the condition-giving rise to the Exception must be clearly observable to the Independent Inspector without intrusive testing and must be determined to be the sole, independent cause of the damage. The benefit of any doubt will go to the homeowner. In addition, an Eligible Claimant will be compensated under the Compensation Formula for all damage associated with a particular boards if any part of such damage is determined to be a result of product failure.

   6. Subsequent/Multiple Claims

      You are not limited to making a single claim during the life of the Settlement. If you experience additional qualified Damage subsequent to an initial claim that was not the subject of a previous claim, you may make additional claims in subsequent years during the life of the Settlement.

   7. Claims Periods and Deadlines

      The Settlement provides a seven year / ten year claims program. If you own Masonite Hardboard Siding installed and incorporated into a home or other structure between January 1, 1980 and December 31, 1989, you must file your claim(s) under the Seven Year Program by January 15, 2005. If you own Masonite Hardboard Siding installed and incorporated into a home or other structure between January 1, 1990 and January 15, 1998, you have ten years, until January 15, 2008 within which to file your claim(s). Once the Settlement expires, the remainder of the Masonite warranty, if any will remain in effect, and you may be entitled to receive compensation for siding that fails under the terms of the Masonite warranty program separate and apart from this Settlement.

How to participate in the Settlement?

If you believe you are Eligible Claimant, in order to participate in the Settlement, you must make your claims by the applicable deadlines described above, and follow any procedures set by the Court and provide the information requested to support and verify your claim. To start your claims procedure you should complete the claim form and return it.

If you own one of the many houses with Masonite hardboard siding, don't wait while the siding that is on your home rots, buckles, discolors and deteriorates. Unsightly Masonite hardboard siding could be allowing serious hidden damage to occur to other structural parts of your home. Now is the time to file a claim and protect your property value.

You can contact the Independent claims Administrator to obtain an application at 1-800-330-2722, or you can call Four Season at 301.948.2678.