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United Water hit with class action lawsuit -Sold worthless sewer & waterline multifamily protection
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Home away from home
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The article has the wrong website -- if anyone knows the correct one.... it is not:
www.unitedwater.blogspot.com ======================================= United Water hit with class action lawsuit seeking millions over its sales of "worthless" repair warranties Saturday, November 27, 2010 By MICHAELANGELO CONTE JOURNAL STAFF WRITER HACKENSACK - United Water may have to pay out tens of millions of dollars if a jury finds on behalf of several Union City residents who have filed a class action lawsuit alleging the company cheated customers by selling worthless warranties to cover repairs. United Water sells warranties to customers to cover repair of broken water pipes, sewer pipes and other items, collecting about $150 per year on average from customers who opt in, said the attorneys for three 18th Street plaintiffs. Although the application says "Guaranteed Acceptance" in large print, there are actually many exclusions, the attorneys said. The application says all multiunit dwellings are excluded, but the lawsuit says that has not stopped United Water from marketing and selling the policies to the owners of multi-unit buildings. The suit says United Water knew or should have known it was accepting money from multiunit building owners but "took no measures to refrain from marketing or promoting its service plans to multiunit buildings, and regularly accepted premiums and entered into and sought to enter into contracts with owners of multiunit buildings such as plaintiffs." The suit filed in Bergen County Superior Court in Hackensack, where United Water is based, alleges breach of contract, consumer fraud, unjust enrichment, and violation of the Plain Language Act. Attorneys Carl Mayer and Bruce Afran held a press conference Tuesday at the courthouse, where they said a large number of United Water's 750,000 New Jersey customers are in the same situation as the plaintiffs. They are asking others wishing to join the class action to reach out to them at www.unitedwater.blogspot.com. The plaintiffs want United Water to refund the amount it was "unjustly enriched by their illegal conduct" over the past six years and "disgorge their illegal profits." The suit also seeks the cost of repairing damage to property that was supposedly covered by the policies, and punitive damages and tripled damages. Afran estimated that if all New Jersey residents in a situation similar to the plaintiffs were to join the suit, and the suit was successful, it could cost United Water as much as $50 million. The lawyers said marketing the policies in Union City is especially egregious because there are 23,750 housing units in the city and only 947 of them are single-family homes. They said that means about 96 percent of the homes are excluded under the policies. "Why would United Water sell warranties on water and sewer pipes to customers in cities like my city of Union City when virtually the entire city is apartments and other multiunit dwellings?" asked plaintiff Dan Molloy, who attended the press conference. "The answer is that United Water takes the money and runs," Molloy said. "In my case, when my pipes burst, United Water would not honor the warranty contract I paid for with my hard-earned money because, like almost everyone else in Union City, I live in a multiunit home." Reached for comment Tuesday evening, United Water spokeswoman Deb Rizzi said the company had just received a copy of the complaint and she could not comment on it until it is reviewed.
Posted on: 2010/11/28 16:25
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