Home Warranty Class Action Avoids Arbitration

A New Jersey consumer who alleges her home warranty company misrepresented the length of her coverage can keep her class claims in court, the state’s top court affirmed Jan. 10.

The arbitration provisions of the contract are “debatable, confusing, and contradictory,” Judge Jaynee LaVecchia wrote for the New Jersey Supreme Court.

“It is unreasonable to expect a lay consumer to parse through the contents of this small-font provision to unravel its material discrepancies,” the court said.

Amanda Kernahan sued Home Warranty Administrator of Florida Inc. and Choice Home Warranty alleging the home service agreement they sold her for $1,000 was ...