Case name:
Class Action against HydroSolution for unlawful termination of water heater lease agreements and for imposing illegal “buyback” fees upon termination.
Quebec Superior Court file #:
500-06-001332-242
What this case is about:
Following the Hurricane Debby force majeure event, HydroSolution unlawfully terminated their water heater lease agreements with affected customers and then imposed an unlawful “buyback” fee.
This class action is brought for three main reasons: (i) HydroSolution failed to honour their contractual undertakings and representations with respect to replacing or repairing leased water heaters free of charge; (ii) HydroSolution failed in its legal obligations to perform the services stipulated in the contract; and (iii) HydroSolution charges an indemnity that far exceeds its injury upon termination of the lease, thereby generating an illegal profit post- resiliation.
The HydroSolution contracts never required its customers to subscribe to an insurance for the water heaters, yet the company is refusing to repair or replace the water heaters and illegally advising their customers to file a claim with their insurers. The HydroSolution contract expressly stipulates: “The merchant assumes the risk of loss or deterioration of the goods by superior force“, which HydroSolution completely ignores.
Proposed Class:
All persons who leased a water heater from HydroSolution.
Remedies sought:
The purpose of this class action is to obtain:
a) compensation in amounts to be determined for breach of contract and the damages caused by HydroSolution’s refusal to replace or repair the water heaters as advertised and promised;
b) punitive damages in an amount to be determined; and
c) an injunction prohibiting HydroSolution from reporting customers who refuse to pay the “buyback” to credit agencies such as Equifax or TransUnion.
Status:
The class action authorization application was filed in the Superior Court of Quebec, in Montreal, on September 16, 2024 and is currently pending an authorization hearing.
