When homeowners enter into solar panel contracts, they often don’t anticipate needing legal action to resolve disputes. However, many solar contracts include “prevailing party” language, which can significantly impact legal outcomes if a lawsuit arises. But what exactly does it mean to be the prevailing party, and how does it affect solar panel lawsuits?
Understanding Prevailing Party Language in Solar Contracts
Most solar panel contracts include clauses that award attorney’s fees to the prevailing party. Fortunately, these clauses often work in the consumer’s favor. This means if a homeowner wins their claim, the opposing party—usually the solar lender—must cover their legal costs.
In legal terms, the prevailing party is the one who wins on any claim filed in court. If a judge rules in favor of the homeowner on even a single claim—such as breach of contract, breach of warranty, or failure of consideration—that homeowner is considered the prevailing party and may be entitled to attorney’s fees as part of their claim.
How Does Prevailing Party Status Affect Solar Panel Lawsuits?
Many homeowners financed their solar panels expecting long-term warranties and energy savings. However, when solar providers go out of business, those warranties become unenforceable. As a result, homeowners face costly loans for systems that may not work as promised. In these situations, homeowners can sue their lenders under consumer protection laws. They argue that lenders are responsible under the Federal Trade Commission’s Holder Rule.
Winning these lawsuits matters. It can decide whether homeowners recover attorney’s fees. Even if the judge denies full cancellation of the solar loan, a partial win still counts. For instance, if a judge cancels 50% of the loan due to breach of warranty, the homeowner qualifies as the prevailing party. Consequently, they may recover legal costs.
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Why This Matters for Homeowners
Legal battles over solar panel contracts can get complex and expensive. However, the prevailing party clause offers an important financial safeguard. By winning even part of their case, homeowners can shift attorney’s fees to the lender. This reduces out-of-pocket costs and provides relief from an unfair solar loan.
If you’re thinking about legal action over a faulty solar contract, understanding your rights as the prevailing party is crucial. Moreover, consulting an experienced consumer attorney can increase your chances of success. They can also help you recover any fees owed under the prevailing party provision.
Final Thoughts
Navigating a solar panel lawsuit requires legal expertise, but knowing what it means to be the prevailing party can strengthen a homeowner’s position. If you have been misled about your solar panel system and your installer has gone out of business, you may have a strong case against your lender. A successful legal claim could not only reduce or eliminate your loan but also force the lender to cover your attorney’s fees, easing the financial buOur Resultsrden of litigation.
