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Class action accuses solar energy company of breach of contract after system failed to work

FLORIDA RECORD

Thursday, November 21, 2024

Class action accuses solar energy company of breach of contract after system failed to work

Federal Court
Solar panels gbd00f9eb7 1920

Maria Godfrida | Pixabay

FORT MYERS – A Florida resident has filed a class action lawsuit against a solar energy company, alleging breach of contract and unjust enrichment after the company failed to install a working solar energy system and honor the warranty terms.

Plaintiff Shoshana Smith filed a class action lawsuit in the U.S. District Court for the Middle District of Florida against Lumio, HX and Atlantic Key Energy citing allegations of breach of contract and unjust enrichment.

According to court documents, on September 25, 2021, Smith and her husband contacted the defendants for the installation of a solar energy system at their Florida home. The system was to cost $68,912, and the defendants represented that the system would provide 100 percent of Smith's energy needs.  Additionally, the defendants represented that the workmanship of the system would be under warranty for 10 years from the date of installation, and the installation also included a 10-year limited roofing penetration warranty to cover the roof against damage and water infiltration.

Smith alleges that the installation of the system was completed on November 19, 2022, but that it didn't start producing power until nine months later. Smith adds that seven months after it started producing power, the system stopped producing energy on March 8, 2023. Since then, the system has malfunctioned intermittently, despite the company sending out employees to provide service to the system at substantial cost to the plaintiff. Smith adds that since the installation of the system, her roof has become rotted due to water infiltration as a result of the faulty installation.

According to Smith, the defendants have breached the material terms of the agreement by failing to install an operable and working solar energy system and by failing to honor the warranty for roof damage and water infiltration. She claims that as a result of the poor installation of the solar system, she has incurred substantial financial losses, including continued payments to her electric utility provider for energy that her defective system should have produced. Additionally, she had to bear additional costs amounting to $10,965 for roof repairs and system reinstallation.

Smith's lawsuit highlights broader issues within the solar energy industry, as indicated by a year-long investigation by consumer watchdog group Campaign for Accountability. The probe revealed exploitative practices targeting vulnerable demographics such as the elderly and those with fixed incomes. The lawsuit detailed deceptive practices, including misleading consumers about installation costs, substandard craftsmanship, and restrictive contracts limiting consumer recourse.

Smith is requesting a jury trial to seek judgment for herself and all members of her class for compensatory damages, actual damages, and restitution, plus attorneys fees, court costs and any other relief the court deems proper. She is represented in this case by attorney Louis A. Gonzalez in Winter Park and Jacob Alex Flint of Jacob Flint Law in St. Louis, Missouri.

U.S. District Court for the Middle District of Florida case number 2:23-CV-00849

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