Home Warranty Litigation
CPM represents homeowners who purchased home warranty policies in five putative consumer class actions (one class has been certified). The cases are pending in state and federal court and the defendants include Old Republic, Fidelity and First American. The cases allege that the home warranty companies engaged in false and misleading advertising by telling consumers that if a covered system in their house broke (such as an air conditioning unit or an appliance) that they would repair or replace the covered system. In reality when consumers submitted claims, the claims were routinely denied, and almost never did the companies fulfill the promise to replace – instead when they did send a repair person, the repair person was encouraged to deny claims, or make band-aid fixes. The defendants also hired unqualified contractors who would work for below market rates with the understanding that they would mainly make money by charging the homeowners for items that could be claimed to be uncovered by the fine print in the policies. The CPM team is headed up by Niall McCarthy, Anne Marie Murphy, Robert Hutchinson, Eric Buescher, and Joanna LiCalsi.