A federal judge has dismissed several counts in a lawsuit filed by property developer PMC Property Group against Apogee Enterprises Inc. and its subsidiaries, Wausau Group and Viracon.
PMC alleges that Wausau supplied defective window systems and that Viracon manufactured defective glass used in the systems at Franklin Tower, Riverwalk Tower I and Riverwalk Tower II in Philadelphia. The developer claims that nickel sulfide inclusions in the glass caused windows to spontaneously break on the exterior and interiors of all three properties. Nickel sulfide contamination causes tiny particles, called inclusions, to form within the glass. Those particles later expand in size when the glass is exposed to variations in temperature.
Mixed Ruling
Following an amended complaint introduced by PMC in May 2026 in the United States District Court for the Eastern District of Pennsylvania, Apogee, Wausau and Viracon filed a motion to dismiss in July 2026. The defendants argued that PMC has an ongoing Philadelphia Court of Common Pleas case against Wausau involving the same buildings, the same underlying facts and substantially the same damages. The defendants also argued that the claims against Apogee should be dismissed for lack of personal jurisdiction and that PMC cannot pursue implied warranty claims based on spontaneous glass breakage.
Federal judge Gerald Pappert dismissed several claims in late August, but allowed others to continue:
- The court allowed PMC’s manufacturing-defect claim to proceed;
- Wausau’s all-capitals warranty disclaimer defeated PMC’s implied warranty claims for merchantability and fitness against Wausau. PMC did not contest that the disclaimer also applies to its warranty claims against Viracon;
- The unjust enrichment claim against Wausau failed because the parties had a contract, while the claim against Viracon survived because Pennsylvania law permits indirectly conferred benefits; and
- The court rejected the defendants’ claim-splitting and Colorado River abstention arguments, finding that claim splitting did not apply because the parallel actions were pending in state and federal court and that abstention was not warranted.
The court allowed PMC to amend its unfair trade practices and consumer protection law claim on or before Sept. 22, 2026.
Reason for the Lawsuit
PMC accuses Apogee, Wausau and Viracon of supplying and manufacturing defective window systems in the three Philadelphia properties. PMC explains in court documents that after the buildings opened, portions of the window glass broke, with windows in dozens of apartments allegedly shattering and glass falling onto sidewalks, balconies and other areas. The developer alleges that nickel sulfide, a byproduct of Viracon’s manufacturing process, contaminated the glass and caused the breakage.
PMC further argues that once the glass started failing, the companies “stuck their heads in the sand, did everything in their power to avoid accountability and pretended to know nothing about their own dangerous products and the harm they are causing,” note court documents.
PMC Alleges Apogee Entities Shift Responsibility
PMC alleges that when confronted with the evidence, Wausau drew a “hyper-technical distinction between insulating glass units (IGUs) and glass, insisting that Viracon manufactures IGUs, not glass.” PMC claims that when it asked Wausau to honor its express warranties, Wausau refused, stating that it did not manufacture the glass and was not responsible for the nickel sulfide inclusions.
When asked who manufactured the glass, PMC notes that Wausau officials said they had no knowledge of the manufacturer, even though PMC alleges its sister company, Viracon, manufactured the IGUs containing the glass. PMC turned to Viracon for answers, which allegedly stated that it “could not ‘conclusively identify’ the source of the glass it used to make the IGUs.”
“This is a coordinated effort by affiliated entities to ensure that no one within the Apogee family is held accountable for the defective products they are selling into the construction marketplace,” claims PMC in court filings. “Apogee, as the corporate parent that orchestrated, profited from and directed the conduct of both Wausau and Viracon, bears ultimate responsibility. The three companies are alter egos, using their corporate form as a sham to sell dangerous products and then avoid liability. Upon information and belief, the three companies also intermingle assets and do not abide by corporate formalities and should not be permitted to hide behind their corporate form.”
PMC notes that glass breakage has increased since 2024, resulting in negative media coverage, inspections, violations and penalties, as well as “substantial costs” associated with inspecting, cleaning and replacing broken glass.