EDGE Secures Record Consumer Arbitration Award against First American Home Warranty

Published on: July 12th, 2022

On July 8, 2022, EDGE obtained an arbitration award of over $50,000 in favor of its client against First American Home Warranty Corporation. The arbitration arose from First American’s denial of coverage under a home warranty policy in connection with the consumer’s central air conditioning system. First American breached its contractual obligations by refusing to pay for repairs and failing to properly investigate and process the claim.

The arbitrator awarded the consumer the full amount of his requested relief, including attorneys’ fees totaling over $25,000. Based on publicly available data, the award is the largest consumer arbitration award ever entered against First American Home Warranty—more than six times greater than the next largest consumer award.* It also represents the only known award against First American in which a consumer was granted attorneys’ fees.

This case reflects EDGE’s commitment to holding companies accountable when they fail to honor their promises to consumers. The arbitration was conducted under the Consumer Arbitration Rules of the American Arbitration Association.

*This statement is based on the most recent Consumer and Employment Arbitration Statistics report published by the American Arbitration Association, available on the AAA’s website at https://www.adr.org.

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