Consumer Law, Warranties Service Agreement & Arbitration of Disputes

K

Kolokotronis

New Member
Jurisdiction
New York
Hi,
I am disputing a bill for the installation of a new water heater in our home.
We had a service agreement with the oil delivery company and I believe that the service agreement covered the cost of the installation.
There is a section in the "General Terms and Conditions" of the service agreement titled "Arbitration of Disputes" and it reads:
"Any controversy or claim arising out of or relating to this contract or any breach thereof shall be settled by binding arbitration administered by the American Arbitration Association in accordance with its Consumer Arbitration Rules." "Notwithstanding the forgoing, any controversy or claim may be submitted by either Buyer or Seller to a small claims court having jurisdiction of the controversy or claim."
However, I recently received a "Consumer Credit Transaction" summons, from the company's attorneys, which was filed in a District court in Hauppauge, NY.
Can they just ignore the terms and conditions of the service agreement with impunity?

Thanks for all responses in advance.
 
Kolokotronis said:
We had a service agreement with the oil delivery company and I believe that the service agreement covered the cost of the installation.
Click to expand...

My first comment is that the phrase "I believe" is the equivalent of "I don't know." What does the contract say about installation. If you can't figure it out you are welcome to upload a copy for review.

Kolokotronis said:
However, I recently received a "Consumer Credit Transaction" summons, from the company's attorneys, which was filed in a District court in Hauppauge, NY.
Can they just ignore the terms and conditions of the service agreement with impunity?
Click to expand...

Maybe they didn't ignore the terms and conditions of the service agreement. All lawsuits in Hauppage are handled by the District Court. That it was filed in the District Court doesn't mean it's not a small claim. It's a small claim if it's up to $5000.

Lawyers are permitted for small claims. That it was filed by their attorney also doesn't mean that it's not a small claim.

Check out the court's website.

Small Claims Court - Suffolk District Court | NYCOURTS.GOV

Scroll down to the Guide to Small Claims, read it, then read the Uniform District Court Act Article 18 for Small Claims.

You can respond to the lawsuit and request arbitration by following the instructions in Article 18.
 
Hi AdjusterJack,
If the claim is for $5K or less, is it automatically placed in small claims court?
If not, is there any indication on the summons I was served, as to which court will handle the case?

I have uploaded a PDF of the service agreement.

Thanks
 

Attachments

  • Service Agreement.pdf
    2 MB · Views: 4
  • Service Agreement.pdf
    2 MB · Views: 4
adjusterjack said:
My first comment is that the phrase "I believe" is the equivalent of "I don't know." What does the contract say about installation. If you can't figure it out you are welcome to upload a copy for review.
Maybe they didn't ignore the terms and conditions of the service agreement. All lawsuits in Hauppage are handled by the District Court. That it was filed in the District Court doesn't mean it's not a small claim. It's a small claim if it's up to $5000.
.
Click to expand...

Hi AdjusterJack,
If the claim is for $5K or less, is it automatically placed in small claims court?
If not, is there any indication on the summons I was served, as to which court will handle the case?

I have uploaded a PDF of the service agreement.

Thanks
 

Attachments

  • Service Agreement.pdf
    2 MB · Views: 3
Why do you believe that replacement of a water heater is an included item? I see that repair/replacement of various components is covered, but not replacement of the entire unit...in fact, the tank is specifically excluded from repair/replacement coverage.
 
adjusterjack said:
Maybe they didn't ignore the terms and conditions of the service agreement. All lawsuits in Hauppage are handled by the District Court. That it was filed in the District Court doesn't mean it's not a small claim. It's a small claim if it's up to $5000.

Lawyers are permitted for small claims. That it was filed by their attorney also doesn't mean that it's not a small claim.
18.
Click to expand...


Here is a jpeg of the summons I received.Summons.jpg
 
The service agreement "EXCLUDES COVERAGE OF THE WATER HEATER TANK, recirculation lines and components, and anode rods."

That's pretty much the whole water heater.

And the exclusion is very prominently displayed right below the list of parts that are subject to replacement.

Kolokotronis said:
If the claim is for $5K or less, is it automatically placed in small claims court?
If not, is there any indication on the summons I was served, as to which court will handle the case?
Click to expand...

It's the same court, same building, same courtroom. That it's $5000 or less likely means less formality. But you still have to file an answer.

How about telling us how this came about? Your water heater malfunctioned. Then what? Did you call the service company? Did you read the service contract before they came out? Did they come out? Did they try to repair it? Did they tell you that you needed a new one? Were the malfunctioning parts the excluded parts? What happened when you got the bill? Was it itemized? You wrote that you disputed it. How so? There's a difference between disputing a bill and just not paying it. What conversations or correspondence transpired between you and the service company?

What is the amount you are being sued for?

I'd be curious to see a copy of the invoice.
 
Last edited:
Zigner said:
Why do you believe that replacement of a water heater is an included item? I see that repair/replacement of various components is covered, but not replacement of the entire unit...in fact, the tank is specifically excluded from repair/replacement coverage.
Click to expand...

We paid for a new water heater to replace one that failed.
They only installed the new water heater.
 
Let's try this again.

How about telling us how this came about?

Your water heater malfunctioned.

Then what?

Did you call the service company?

Did you read the service contract before they came out?

Did they come out?

Did they try to repair it?

Did they tell you that you needed a new one?

Were the malfunctioning parts the excluded parts?

What happened when you got the bill?

Was it itemized?

You wrote that you disputed it.

How so?

There's a difference between disputing a bill and just not paying it.

What conversations or correspondence transpired between you and the service company?

What is the amount you are being sued for?

I'd be curious to see a copy of the invoice.
 
Why do you believe your service agreement fully covers the installation of a new water heater? The only thing I can see that should be applied is a 15% discount.
 
adjusterjack said:
The service agreement "EXCLUDES COVERAGE OF THE WATER HEATER TANK, recirculation lines and components, and anode rods."

That's pretty much the whole water heater.

And the exclusion is very prominently displayed right below the list of parts that are subject to replacement.



It's the same court, same building, same courtroom. That it's $5000 or less likely means less formality. But you still have to file an answer.

How about telling us how this came about? Your water heater malfunctioned. Then what? Did you call the service company? Did you read the service contract before they came out? Did they come out? Did they try to repair it? Did they tell you that you needed a new one? Were the malfunctioning parts the excluded parts? What happened when you got the bill? Was it itemized? You wrote that you disputed it. How so? There's a difference between disputing a bill and just not paying it. What conversations or correspondence transpired between you and the service company?

What is the amount you are being sued for?

I'd be curious to see a copy of the invoice.
Click to expand...

Please Note: Law.com limits my posts to 5 in a 24 hour rolling period

I'm interested in finding out which court because I would prefer to defend myself if it's in small claims court.

We renewed our oil delivery contract & service agreement several months before the water heater failed, a common arrangement for people with oil-fired boilers. When the heater malfunctioned they sent a technician and he determined that it could not be repaired. I was told by the service department that if we pay for a new water heater, they would install it at no charge. We purchased a new one & they installed it.
They did not provide us with any invoice, but when the next monthly bill arrived there was a charge for $1250.00, it was described as a "service" for the installation.
After receiving the bill I called customer service, sent letters and emails directed to the credit department (they would not allow me to talk directly to anyone in the credit department), but I never received a written response, nor did anyone call about the matter, even after repeatedly disputing the charge.
We signed a contract with a different oil company when the contract expired at the end of October.
 
Kolokotronis said:
I was told by the service department that if we pay for a new water heater, they would install it at no charge.
Click to expand...
I'm assuming that you don't have that in writing.

Without having that in writing, "I was told" is meaningless.

From your service agreement:

18. ENTIRE AGREEMENT - We and you agree that this written Agreement along with the Service Brochure constitute the entire Agreement. Any statements not contained in this Agreement or the Service Brochure are not part of this Agreement. To the extent that the terms of this Agreement and Service Brochure are inconsistent, this Agreement shall control.
 
You may wish to seriously consider offering to pay what you owe before it goes before the court.
 

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