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Can I File a Class Action or Have a Jury Trial in a Solar Panel Lawsuit?

photo of empty jury seats for post Can I File a Class Action or Have a Jury Trial in a Solar Panel Lawsuit?

When facing issues with solar panel installations or financing, many homeowners ask, “Can I file a class action or have a jury trial?” This is an important question for those seeking justice and compensation for misleading sales practices, defective products, or unfulfilled warranties. However, many find themselves bound by arbitration clauses that significantly limit their legal options.

Why Do Companies Push for Arbitration?

Solar companies and lenders frequently include arbitration clauses in their contracts. This isn’t a coincidence but rather a deliberate strategy to protect themselves from high-stakes litigation. Here are the main reasons:

  1. Avoiding Jury TrialsCompanies aim to avoid jury trials because juries can be unpredictable. In cases involving frustrated homeowners, a local jury might empathize with the plaintiff and award substantial damages. Arbitration, on the other hand, is handled by a neutral third party and generally results in lower awards.
  1. Preventing Class Action LawsuitsArbitration clauses often include language that forbids individuals from joining class actions. Class actions allow multiple plaintiffs to combine their claims into a single lawsuit, potentially leading to massive settlements or judgments. By forcing disputes into arbitration, companies limit their exposure to these types of collective actions.

What Does This Mean for Homeowners?

If you’ve signed a contract with an arbitration clause, it’s essential to understand how it impacts your ability to seek justice:

  • No Jury Trial: Arbitration means your case will not be heard in a traditional court. Instead, a professional arbitrator will review the facts and make a binding decision.
  • No Class Actions: You’ll need to file your claim individually, which can be a daunting and expensive process for a single homeowner.

Is There Any Way Around Arbitration Clauses?

While arbitration clauses are enforceable in most cases, there are situations where you might still have options:

  • Unconscionability: If the arbitration clause is deemed excessively unfair, a court might void it. This is rare but possible.
  • Violation of Consumer Protection Laws: Some states have robust consumer protection laws that may override arbitration clauses in certain scenarios.
  • Federal Trade Commission Holder Rule: If your lender is involved, the FTC Holder Rule may allow you to assert claims against them that you could also assert against the seller.

What Should You Do?

If you believe you’ve been wronged by a solar company or lender, consult an experienced attorney to explore your options. Even if arbitration is required, a skilled lawyer can guide you through the process, ensuring you present the strongest case possible.


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Conclusion

While arbitration clauses may limit your ability to file a class action or have a jury trial, they do not eliminate your rights entirely. Understanding the terms of your contract and seeking legal advice are crucial steps toward achieving justice. By staying informed, you can navigate the challenges of arbitration and work toward a resolution that addresses your concerns.

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Nothing herein is intended, and does not, create an attorney client relationship and is for informational purposes only. The Prevost law firm is licensed in Texas and is licensed to practice law in all Texas state courts and in multiple Federal Courts and Arbitration in 46 states. Solar sales are governed by both state and federal law. The attorney client relationship will only be created after the parties enter into a signed letter of representation.