AHS is a very popular home warranty company. I've used their warranties, bought them for clients, written them into Buyers' Repair Addenda, and have recommended them for years.
In today's mail I received a 10-page document outling the SETTLEMENT of Karon and L.B. Chip Edleson, Plaintiffs vs. American Home Shield of California, Inc., et al., Case No. 37-2007-00071725-CU-BT-CTL.
In part:
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Notice of Class Action and Settlement:
To: All person (natural or legal) in the United States who purchased or were issued any Home Warranty Contract from AHS during the period beginning on July 24, 2001, up to and including the date on which the proposed Settlement is preliminarily approved by the Court (the "Class" or "Class Members").
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Apparently, AHS denied claims that were supposed to be covered.
OOPS!
A "Fairness Hearing" will take place April 24, 2009 at 10:30 before the Honorable Steven R. Denton, Superior Court of California, San Diego County, Dept. 73
To quote further: "The Court has not ruled on either merits of the claims against AHS or AHS's defenses, to those claims, nor has it made a final determination of the matters to be considered at the Fairness Hearing."
III. Background of Claims . . .
". . . The Complaint alleges that American Home Shield engaged in a pattern and practice of failing to fulfill its contractual obligations to its customers, including by declining to provide repair and replacement services that its customers were entitled to under the terms of their Home Warranty Contracts. . . ."
It goes on, and on (it's 10 pages!) but you get the gist.
Apparently, there will be a "Claims Review Desk" set up, and AHS will review a "settlement class member who wishes to submit a denied claim by contact AHS at 1-877-433-3843, logging on to www.EdlesonClassAction.com or sending a writtten request to Class Action Claims Review Desk. P. O. Box 727, Carroll, IA 51401."
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