Homewowners v Carrier Corp.

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Homeowners File Lawsuits Against Furnace Maker

Case ID: 4927
Category: Consumer Products
 
Last Update: 10/11/2006
Country:
 

Homeowners in Ontario and Wisconsin have filed separate class-action suits against Carrier Corp., seeking compensation for corrosion in furnaces sold since the mid-1980s under the Carrier, Bryant, Day & Night, or Payne brand names.

The class action filed in Madison, Wis., is brought on behalf of an estimated 200,000 furnace owners. The Ontario suit, filed in Toronto, is brought on behalf of all Canadians with the allegedly defective furnaces.

The suits allege that beginning in the mid-1980s, Carrier started manufacturing its high-end furnaces out of inferior material that corrodes and prematurely fails, without disclosing that fact to consumers.

The complaints in each case allege that Carrier stopped using stainless steel secondary heat exchangers in favour of cheaper polypropylene-laminated mild steel. Plaintiffs allege that the polypropylene separates from the steel and degrades due to the high temperatures in the furnace, exposing the underlying mild steel to acidic condensate.

In Canada, Carrier warrants the heat exchanger for 20 years. Despite these warranties, plaintiffs allege that Carrier's condensing furnaces fail prematurely and well before their warranted and expected life.

In the United States, Carrier warrants the heat exchanger for the lifetime of the original purchaser and for 20 years for subsequent purchasers.

"Carrier's warranty does not cover labor charges for replacement of the failed part," said a lawyer acting for the plaintiff in the Wisconsin class action. "Often homeowners are faced with spending more than $1,000 to repair their furnace, or they must buy a brand new furnace."

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