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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Curd, Galindo & Smith, LLP, Files Lawsuit Against New Leaf Service Contracts, LLC, on Behalf of Howard’s Appliances, Inc.

November 15, 2021 GMT

LOS ANGELES, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Joseph D. Curd, an attorney with the law firm Curd, Galindo & Smith, LLP, announces the filing of a lawsuit in Orange County Superior Court (OCSC Case No. 30-2021-01227447-CU-BC-CJC) on behalf of Howard’s Appliances, Inc., Southern California’s largest independent appliance retailer. The filing named New Leaf Service Contracts, LLC, a Texas limited liability company, as the defendant in the case. Five complaints have been specified: Breach of Contract, Intentional Interference with Prospective Economic Relations, Negligent Interference with Prospective Economic Relations, Rescission, and Common Count – Money Had and Received and Restitution Based on Unjust Enrichment.

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The complaint states that Howard’s contracted with New Leaf to implement, maintain, and administer service contracts in the form of warranties for products sold to Howard’s customers from January 2016 through December 2020. As the warranty provider, New Leaf would be responsible for investigating, processing, adjusting, and paying valid claims covered by the Service Contracts.

According to the Complaint, the essence of the contract with New Leaf was to allow Howard’s customers to buy with confidence and to protect them in the event of appliance failure. The Complaint goes on to detail that Howard’s terminated the contract with New Leaf due to poor performance and poor customer service, and that New Leaf antagonized Howard’s customers by refusing to live up to their obligations under the warranties.

Furthermore, to provide service for Howard’s customers, the Complaint states that New Leaf is required to be registered and qualified to do business in the State of California and to maintain proper insurance, but that it has failed to do so.

“The dispute began when Howard’s declined to renew New Leaf’s contract in December 2020,” said Curd. “As a company committed to superior customer service, Howard’s, as the Complaint details, took every measure possible to ensure customers who purchased the service contracts directly from Howard’s would be honored for their investment, but New Leaf did not improve service, leaving Howard’s no choice but to attempt to take over service of the customer warranties itself.”

According to Curd, Howard’s has pursued this lawsuit, not only as a standard damages complaint but to address a prevalent issue affecting the appliance and retail sector, and to take customer service and satisfaction back into its own hands. By taking this action, Howard’s is attempting to advocate for its customers and the industry at large.

New Leaf Services Complaint  

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“Although the Complaint is filed on behalf of Howards, Inc., it represents a bigger issue plaguing the industry and creating tremendous frustration and angst among consumers,” said John Riddle, Howard’s President and CEO. “Howard’s leadership understands that the filing of this lawsuit is unprecedented, but believes it is time to take a stand for consumers who are entitled to ethical, fair business practices and honoring of their warranty rights.”

Per the legal filing, “Howard’s seeks to fully terminate and rescind any rights, duties, or obligations of New Leaf to administer the Service Contracts” and asks for New Leaf to turn over “all unexpired warranties and Service Contracts currently in effect with New Leaf,” as well as “the funds paid for such Service Contracts to assist in performing its obligations.”

“At Howard’s, customer service is number one and it is our duty to crusade for the consumer,” said John Riddle, Howard’s president, and CEO. “We want warranty providers, starting with New Leaf, to deliver on their promises, which our Complaint says they did not do. Howard’s is committed to upholding obligations to our valued customers, and we hope our willingness to take a stand has far-reaching implications for the industry at large, encouraging dialogue among advocacy groups and inspiring legislative changes that protect the consumer.”

Curd is a founding member of Curd, Galindo & Smith, LLP, is a full-service law firm that represents both corporate and professional clients as well as consumers. The law firm has recovered millions of dollars for its thousands of clients since 1995 by winning complex and challenging business disputes, cases for consumers including death and injury cases involving police misconduct, workplace injuries, and defective products, against some of the world’s largest companies and governmental agencies.

Attorney Joseph D. Curd graduated cum laude from the University of Southern California in 1981. In 1984, he graduated cum laude from the University of Santa Clara with the degree of Doctor of Jurisprudence. He was also an extern for the Honorable Robert F. Peckham, Chief Justice of the United States District Court for the Northern District of California. Curd is admitted to practice before the United States Court of Appeal, 9th District, the United States District Courts, and the California Supreme Courts. Mr. Curd has received the American Jurisprudence Award and is a member of the State Bar of California.

A copy of the Howard’s Appliances Inc. vs. New Leaf Service Contracts, LLC lawsuit is available here: https://bit.ly/3n9OeEY. For more information, please visit  https://cgsattys.com/

Contact: Kat Moore – Kat@echomediagroup.com