AHS Class Action Lawsuit Settlement

American Home Shield is one of the most widely accepted and the biggest among all home warranty companies. At AHS, individuals are dedicated to making sure that you get exceptional customer service, right from the moment you call with a problem until it’s resolved. As the leading home protection plan company, AHS has over 40 years of experience caring for its patrons.

Customers of home warranty companies, such as American Home Shield (AHS) can take heart that some earlier home warranty lawsuits have resulted in settlements. One American Home Shield lawsuit resulted in a settlement, even though the company did not admit any illegal behavior or liability in the settlement.

AHS Stands after the Brokers in Legal FightsAHS Class Action Lawsuit

In settling two lawsuits alleging that it paid illegal kickbacks to real estate brokers to promote its home warranties, AHS corp. has been cautious to protect real estate brokers and agents from legal responsibility.

American Home Shield –the nation’s largest provider of home warranties –has declined that the payments it made to real estate brokers to market its products violated the Real Estate Settlement Procedures Act, or RESPA.

The company admitted no wrongdoing when it currently agreed to pay up to $26 million to determine allegations that the payments violated RESPA as they were planned to reward brokers and agents for referring business to the company.

AHS put an optimistic spin on the settlement and released brokers and agents from liability. This supported the company’s position as its current broker compensation program; ProConnect is in accordance with RESPA guidelines and regulations.

About 500,000 homebuyers and sellers who procured warranties between May 27, 2008, and March 4, 2011, may be qualified to collect an average of $52 each under the terms of the settlement.

Edleson Class Action Suit

Edleson v. American Home Shield filed a lawsuit in California Superior Court in San Diego in July 2007. The California court declined a proposed settlement of Edleson v. American Home Shield, which would have formed a review desk for homeowners to resubmit earlier denied claims.

The court hearing the Edleson case expressed concern that AHS would have the right to readjudicate claims, and the consumers included in the settlement would be giving up “possible” and “realistic” rights in exchange for the hope that a defendant that has supposedly not acted on good faith” before”, would do so.

After the proposed Edleson settlement was declined, American Home Shield reached tentative settlement in Faught v. American Home Shield, which also called for a review desk for consumers to resubmit claims.

The proposed Faught settlement was opposed by 24 homeowners and the Texas Attorney General’s Office.

Faught Class Action Suit

The settlement was the outcome of a class-action lawsuit filed by Laura and Steven Faught against AHS in support of people in the US who procured or were issued a home service contract from AHS on July 24, 2001 throughout October 19, 2009. As part of the agreement, AHS decided to set up a review desk to reflect on claims from settlement class members whose claims were declined during the class period.Class action lawsuit against american home shield

The Faught lawsuit suspected that American Home Shield engaged in a pattern and practice of failing to accomplish its contractual responsibilities to its customers, including by declining usually to provide repair and replacement service to which its customers were entitled, and by inappropriately denying claims in the first year of customers’ home service contracts for “lack of maintenance” (from the Notice of Class Action and Settlement; faughtclassaction.com).

In spite of entering into a settlement, AHS denied any misconduct or any legal responsibility.

That rejection of wrongdoing has not prevented a different lawsuit, also alleging American Home Shield unsuccessful to pay its customers’ claims, from being filed.

The complaint, filed by Brigette and William Guadet, was filed on June 23, 2011, according to The Louisiana Record (June 30, 2011) and alleges AHS denied claims made by class members under grounds of “lack of maintenance, pre-existing condition, or failure to clean, in spite of not examining the appliances when policies are issued.”

In addition, the lawsuit alleges, AHS denies claims because of negligible uncleanness, even if external factors were the cause of the appliance’s breakdown. Plaintiffs allege contractors were given an additional benefit for declining legal claims. The lawsuit claims violation of agreement and fake misrepresentation. Plaintiffs seek damages in excess of $75,000.

In the meantime, consumers of other home warranty companies have filed lawsuits of their own or may be looking into possible lawsuits, suspecting their claims were denied improperly.

Abney Class Action Suit

The 2008 Abney v. American Home Shield lawsuit alleged that the company violated the Real Estate Settlement Procedures Act through its compensation of real estate brokers with regard to the sale and marketing of home warranties.

American Home Shield strongly denied the allegations made in the lawsuit and chose to resolve the suit due to the potential costs in defending the case. Details on the resolution are available at www.abneyclassaction.com.

The Bottom Line

According to D. Frank Davis, a lead attorney for consumers in both the Abney and Faught cases, the Faught settlements is more favorable to all the class members in a lot of important ways.

Under Faught, individuals whose rejected claim incurred in the first year of their contract and involved a heating or air conditioning unit are likely to have their claim paid on reconsideration because of specific language in the settlement about the standards to be used by the review desk. All the other claims resubmitted are also likely to be paid on this time because of the negotiated penalty provisions.







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    FDR 11/17/12

    I am a member of the Faught class, and submitted my claim, complete with receipts. They denied it saying they had authorized the repair (they don't allege that repairs were not required or not covered). What they forget is that they never found a contractor to actually come and do the repairs. They don't touch on that point in the rejection letter.

    It looks to me like pure bad faith. view less
    I am a member of the Faught class, and submitted my claim, complete with receipts. They denied it saying they had authorized the repair (they don't allege that repairs were not required or not covered). What they forget is that they never found ... view more
     Rate this review: Add rating 3  Subtract rating 0  #1
    Kim Orazi 12/13/12

    I too submitted our claim this past September 2012, regarding our hvac system which AHS denied repair/replacement back in 2008. We paid for the replacement of the hvac which they denied due to lack of maintenance etc. It was a horrific experience with AHS. Of course we provided all of the receipts along with our documentation of the events. We still have not heard back from AHS or anyone for that matter and its been over three months since we submitted the paperwork. I have been calling and leaving messages to the "review desk" the past few days & we have not heard back from anyone. Can someone help us? I really don't want to obtain our own attorney to file suit but if I don't receive our money back, we will do just that. It's my understanding that the settlement provides for a portion of payment of our attorneys fees, Wouldn't it be nice if AHS was honorable & did what there supposed to do instead of prolonging the misery & legal costs for everyone involved. view less
    I too submitted our claim this past September 2012, regarding our hvac system which AHS denied repair/replacement back in 2008. We paid for the replacement of the hvac which they denied due to lack of maintenance etc. It was a horrific ... view more
     Rate this review: Add rating 3  Subtract rating 0  #2
    Rebecca Fee 12/21/12

    I submitted photos from TWO times my basement was ruined & denied all issues by AHS. I was just told over the phone my issues weren't covered...which included a broken pipe under the sink & a misfunctioning/overflowing water softener. Had to do all repairs myself. view less
    I submitted photos from TWO times my basement was ruined & denied all issues by AHS. I was just told over the phone my issues weren't covered...which included a broken pipe under the sink & a misfunctioning/overflowing water softener. Had ... view more
     Rate this review: Add rating 2  Subtract rating 0  #3
    Vincent Accursi 01/05/13

    In 2008 my A/C ( part of HVAC unit) stopped working and I called AHS for service and repair man said the unit is 12 years ok'd and needs to be replaced and has to ask AHS for authorization to replace. Next thing AHS sent a second company to check unit and put on their report that unit had pigeon dropping on it and I get call from AHS that I am not covered due to dirty and not maintained unit. I told them I have a pigeon gate around units and I have receipts that I have been having units checked every six months and have had freon added once and A/Cs and vents cleaned. They didn,t care just saying that paragraph G give them permission to deny claim if unit dirty, I argued to no avail and had to pay $7,900 for a new unit, that wiped out my savings. I have the receipt for the unit bought in 08 and proof I was under contract with AHS. How do I apply to get reenbursed?
    I also had same Probkem with our dishwasher in the same year. It just wasn,t cleaning the dishes and not draining all the way, Well they sent 3 tech until one saud it is due to the Las Vegas water and because of that AHS said they are not responsible. I told them that I had a water softner and dishwasher worked fine since 2005 . Again they declared that we did not maintain the unit and it cost us over $409 at Lowes for a new one but we can,t find receipt- but I am sure that AH.s has copy if the service calls.
    I am now with CHW and gave no Probkems with them and their service call is only. $45.
    Please give me advise on hiw to Maje a claim or do .i have to get a lawyer.
    Thank you!
    Vincent Accurso Sr
    [email protected]
    (702) 395-4431
    (702) 576-4044
    7520 Cobal Canyon Lane, LV, NV. 89129 view less
    In 2008 my A/C ( part of HVAC unit) stopped working and I called AHS for service and repair man said the unit is 12 years ok'd and needs to be replaced and has to ask AHS for authorization to replace. Next thing AHS sent a second company to ... view more
     Rate this review: Add rating 2  Subtract rating 0  #4
    GILDA F. SPEARS 01/18/13

    WE HAD A FURNACE THAT NEEDED TO REPLACED. WE GOT THE SAME EXCUSES TO EXPLAIN THE DENIAL OF OUR CLAIM. AFTER WE CHALLENGED THAT DECISION, AHS OFFERED TO REPLACE OUR FURNACE WITH ONE WITH HALF THE BTU'S. WE REFUSED TO ACCEPT THIS AND PAID THE FULL COST OF THE UNIT. HAPPY TO SEE AHS HAD BEEN SUED, WE SUBMITTED A CLAIM AND WAS OFFERED LESS THAN THE COST OF THE HALF-SIZED FURNACE WE HAD REFUSED. I RESUBMITTED THE CLAIM AND GOT THE SAME CHECK I HAD RETURNED. I AM READY TO SUE BUT NEED SOME INFO. THE SETTLEMENT AGREEMENTS SEEMS TO REQUIRE THAT WE POST SOME INFORMATION ON THE AHS WEBSITE BUT I CAN'T FIND A PLACE THAT IS APPROPRIATE TO POST ANYTHING. HAS ANYONE GOT INFO RE THIS? view less
    WE HAD A FURNACE THAT NEEDED TO REPLACED. WE GOT THE SAME EXCUSES TO EXPLAIN THE DENIAL OF OUR CLAIM. AFTER WE CHALLENGED THAT DECISION, AHS OFFERED TO REPLACE OUR FURNACE WITH ONE WITH HALF THE BTU'S. WE REFUSED TO ACCEPT THIS AND PAID THE ... view more
     Rate this review: Add rating 3  Subtract rating 0  #5
    Home Warranty Protection Prevents Real Estate Experts from Facing Litigation 01/27/13

    [...] Increase Call for Further Documentation of all dealings and an overall record of the entire process is throwing more curve balls at real estate sale agents who may be hiring small armies to help them in capturing the thorough details. For instance, if a home warranty is recommended verbally by the seller, it’s better to get in writing the buyer turned it down. if not, realtors may be raising the cost for risking a home warranty lawsuit. [...] view less
    [...] Increase Call for Further Documentation of all dealings and an overall record of the entire process is throwing more curve balls at real estate sale agents who may be hiring small armies to help them in capturing the thorough details. For ... view more
     Rate this review: Add rating 0  Subtract rating 0  #6
    Diane McCoach 02/05/13

    What is going on with AHS. It seems that the contractors get bonus points for repairs and negative points for replacement. I had an AC go out for mismatch system and improperly installed which I had the additional coverage and the contractor said there was nothing he could do but replace it (my expense)and AHS wouldnt cover it. We picked our own contractor and had it replaced for over
    $ 4,800. We have a dishwasher at our rental break for 2 months and we ended up buying a new one because our tenants (4 military guys) stated they would move out. AHS reimbursed us $80 minus our deductable =$20. I would have replaced 2 months ago if I would have know. Now our dishwasher broke and it took the contractor 2 months after ordering the wrong part and not fully looking at it found it was not repairable. Now I am disputing with AHS that they want to pay me the price of a black dishwasher when my old one is stainless steel-a difference of $200. What is going on with this company...No wonder there are class action suits against them. I have three home warranties and will not renew any of them!!! view less
    What is going on with AHS. It seems that the contractors get bonus points for repairs and negative points for replacement. I had an AC go out for mismatch system and improperly installed which I had the additional coverage and the contractor said ... view more
     Rate this review: Add rating 2  Subtract rating 0  #7
    Faught Class Action Member 02/13/13

    If you are a class member for the Faught V. AHS, and you are experiencing less than satisfying results from the Review Desk, contact the law firm that represented all of us, Davis and Norris in Alabama.

    My understanding is if AHS finds that monetary benefits are due you, it's likely you will find a deduction for legal fees for the law firm - that's as much as 25% of your AHS settlement offer.

    I'm quite baffled, how what appears to be a company's wrong doing can get away with making an unfaithful settlement offer and deduct 25% for the legal fees and walk away minimally responsible for all that AHS caused by itself to all of us. view less
    If you are a class member for the Faught V. AHS, and you are experiencing less than satisfying results from the Review Desk, contact the law firm that represented all of us, Davis and Norris in Alabama.

    My understanding is if AHS ... view more
     Rate this review: Add rating 2  Subtract rating 1  #8
    Michelle B. 02/20/13

    I too have a claim for reimbursement that was denied. I submitted documentation and letters twice and both times I recieved the same response, "your claim has been denied and the file has been closed." I cannot talk to a customer service representative only submit in writting. This is BS.... they have no problem taking my one or providing someone to talk to about payment questions. view less
    I too have a claim for reimbursement that was denied. I submitted documentation and letters twice and both times I recieved the same response, "your claim has been denied and the file has been closed." I cannot talk to a customer service ... view more
     Rate this review: Add rating 2  Subtract rating 0  #9
    Ed 04/22/13

    I've had AHS for 17 years now, and I'm finally calling it quits. They are horrible. No weekend services, poor quality repair work and it is difficult to get them to manage what is covered in the contract. Customer Service reps are too far removed from the work being done. Repair contractors are not adequately paid, so many won't work with AHS or they make cheap, short-term fixes. AHS doesn't authorize many fixes that are proper and permanent. Quality fixes are few and far between. Such a disappointment. I should have left them years ago! view less
    I've had AHS for 17 years now, and I'm finally calling it quits. They are horrible. No weekend services, poor quality repair work and it is difficult to get them to manage what is covered in the contract. Customer Service reps are too far ... view more
     Rate this review: Add rating 2  Subtract rating 0  #10
    A Stone 04/23/13

    My story is a repeat of the ones posted here. I too submitted a claim in the Faught class action lawsuit which included a letter of explanation and receipts along with dates and copies of my warranties. My claim even included a request for reimbursement for a heating and air conditioning unit, I purchased after they initially denied my claim to my shock and horror. After waiting several months after filing I cannot believe I received an email stating my claim was denied and didn't meet approval.

    I cannot believe this travesty. I thought the class action lawsuit was suppose to protect us but it has only added insult to injury twice. Isn't the judge or some entity suppose to make sure we are reimbursed for those bogus denials that AHS always found a way to deny even though we paid annually for a home warranty that was not worth the paper it was printed on. If I sound angry and frustrated, it is because regarding this matter I am. How do we follow up and receive just replevin in this matter? It's like we need a class action lawsuit against the class action lawsuit that was suppose to make us whole.

    Where do we go from here? If anyone has any information as to who to contact to contest this matter please let me know. view less
    My story is a repeat of the ones posted here. I too submitted a claim in the Faught class action lawsuit which included a letter of explanation and receipts along with dates and copies of my warranties. My claim even included a request for ... view more
     Rate this review: Add rating 1  Subtract rating 0  #11
    Bob 05/01/13

    Paid 4600.00 for new unit. Dirty filter, sound familiar. They sent me a check for 1300.00. I didn't accept. No one to talk to. Lawyers were great but now they have been paid, now they won't answer the phone. Wow what BS.
     Rate this review: Add rating 0  Subtract rating 0  #12
    mike george 05/15/13

    I am listed in the Faught class action settlement and was denied again because they state i did not gain approval before making the repair. The sewer pipes below my house collapsed and flooded my basement. In the chaos we contacted the city, took tons of photos, had the work completed and inspected by our homeowners insurance company and the city so we have tons of documentation. AHS said because we forgot to call them they dont have to cover the repair. Seems they'll find anyloophole thay can.
    I may contact the law firm that handled the case to see if they can help. view less
    I am listed in the Faught class action settlement and was denied again because they state i did not gain approval before making the repair. The sewer pipes below my house collapsed and flooded my basement. In the chaos we contacted the city, took ... view more
     Rate this review: Add rating 0  Subtract rating 0  #13
    Karen 06/27/13

    We have been with AHS since 2008, today is the last day! We have a 17 yr old built in microwave that "died", parts were ordered, technician said now it needs another part, AHS said they wouldn't cover the additional part so we were entitled to a new one. GREAT! Nope, then they decided they would go ahead and try repairing it again. I said NO to that, at this point the old microwave has been sitting on our dining room floor for two weeks, and frankly I think it's a fire hazard, So they said we're entitled to $198.16 BUT we have to go out and buy the microwave PLUS a one year warranty, then send them the receipt and THEN we'll get our $198.16 in 7-10 days. Yeah, right. I can't believe after spending several thousand dollars, they can't cover a $200 microwave and just send us a check. I contacted consumer affairs, and no wonder they are involved in multiple class action suits! They are a disgrace! view less
    We have been with AHS since 2008, today is the last day! We have a 17 yr old built in microwave that "died", parts were ordered, technician said now it needs another part, AHS said they wouldn't cover the additional part so we were entitled to a ... view more
     Rate this review: Add rating 2  Subtract rating 0  #14
    Aamir Yunus 07/17/13

    In 2007 my HVAC broke down. AHS denied the claim on bogus reason. I had to replace the unit. I received a post card and they did not respond. I hope there is another lawsuit against AHS.
     Rate this review: Add rating 0  Subtract rating 0  #15
    hotinsc 08/29/13

    Was just informed more of the same bs about my ac and that my heating and air unit was not maintained and my daughters Health was not an excuse to be upset About my ac being out . Is this co just pain crazy .
     Rate this review: Add rating 1  Subtract rating 0  #16
    Christina McDonald 09/13/13

    I have filled 2 complaints against Colony Home Warranty or whatever name they are under now. The only legit reason (I was told by an attorney)would stand would be Misleading Consumers to the product that they sell. Anything else the home warranty company will just say "you should have read the Fine Prints.)
    Please email or notify me if you know there is a class action lawsuit against this company.
    Thank you view less
    I have filled 2 complaints against Colony Home Warranty or whatever name they are under now. The only legit reason (I was told by an attorney)would stand would be Misleading Consumers to the product that they sell. Anything else the home warranty ... view more
     Rate this review: Add rating 0  Subtract rating 0  #17

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