Manning Kass Comes To Homeowner's Aid

In a major victory for one homeowner against several of the largest residential solar companies in the United States, Orange County Partner and leader of the Land Use team Steven W. DeLateur obtained a sweeping award in binding arbitration under the auspices of the American Arbitration Association. The award includes, among other forms of relief, the cancellation of the solar power contract, consisting of a lease of certain solar power equipment, between the homeowner and the solar company and all unpaid lease payments and other claims by the solar companies against the homeowner, compensatory money damages, the discharge of any liens against the homeowner’s property, and a large award of attorney’s fees and costs. 

The basis of the homeowner’s claim was that the solar power equipment installed by the solar company and its affiliated companies did not perform as promised, resulting in the homeowner being responsible for monthly lease payments to the company and having to pay the local electric power utility company for the electricity the homeowner consumed as a direct result of the failure of the solar equipment to generate electricity. To make matters worse, the solar power companies failed to repair or replace the defective equipment, notwithstanding the homeowner having lodged dozens of reports that the equipment was not operating properly and requesting that the equipment be repaired or replaced.

According to numerous press reports, the situation that our client found himself in was far from unique. As the push for green energy accelerates, unscrupulous solar power companies seek to exploit homeowners in primarily retirement communities located in southern states. Using high-pressure sales tactics, sales teams go door-to-door to convince homeowners who are often elderly that by entering into 25-year leases, they will save tens of thousands of dollars in utility bills and add value to their property in the process. What the sales teams do not appear to fully explain is what happens if (or when) the solar systems do not function as intended and the resulting negative financial consequences, such as double payments for electric power and threats of collection actions based on a UCC lien against their homes, not to mention the anxiety and frustration the elderly homeowners often experience when their calls for assistance go unanswered.

The significance of this victory is that it shows other homeowners who are in similar situations that legal recourse is available and that they do not have to surrender their rights to the solar companies.