fbpx

Bob’s and Guardian Goof Proof Protection Agreements Illinois Class Action

What constitutes “accidental” damage to a product? This class action concerns sales of “service contracts” to customers by Bob’s Discount Furniture, LLC, to protect the furniture they buy, which are issued by Guardian Protection Products, Inc. The complaint alleges that the service contracts are actually insurance and that Guardian does not fulfill its obligations.

The class for this action is Illinois residents who bought the Goof Proof plans during the applicable statutes of limitations.

When customers buy furniture, Bob’s offers what it terms “Goof Proof Protection.” This product is referred to by the companies as a service contract. The complaint alleges that the agreement’s terms are inconsistent with the definition of a service contract.

A service contract is supposed to cover the “repair, replacement, or maintenance, or indemnification for such services, of any automobile, system, or consumer product in connection with the operational or structural failure due to a defect in materials or workmanship, or normal wear and tear.”

However, the Goof Proof Protection is supposed to cover damage from accidents. Therefore, the complaint alleges that the agreement is actually an insurance contract—something that is much more heavily regulated and has specific requirements under law. The complaint alleges, “The fortuity principle is central to insurance.”

In February 2019, plaintiff Gina Argenbright bought a bed from Bob’s, and also Goof Proof Protection for it. Sometime around November 2020, the complaint says, “the wooden slats underneath the [bed] broke when [Aregenbright] got into bed.”

The complaint emphasizes that this was an accident: Argenbright “did not intentionally get into her bed seeking to break the frame, as she had gotten into the bed on numerous occasions prior to the breakage.” Argenbright submitted a claim under the Goof Proof Protection, but her claim was denied, the complaint says, “on the basis that she was not using the product as intended.”

When she contacted Bob’s about the denial, a representative told her something different: “Guardian is for accidental protection damage only. If your [sic] using the merchandise as intended that would not be considered an accident. That is why Guardian denied the claim.”

The complaint claims that other customers have been denied coverage for rips, tears, breaks, and punctures, which the companies then describe as “defects.” Other provisions also work against customers being able to get a payment from the protection plans.

The complaint asserts, “Defendant Guardian denies most claims based on ‘misuse.’” However, the complaint alleges that the definition of “goof” includes misuse, including inadvertent misuse.

The complaint alleges that the Goof Proof Protection agreements are actually insurance contracts but do not come with the protections of insurance contracts. The complaint claims that “the issuing and insuring parties—Defendant Bob’s and Defendant Guardian—can deny coverage to customers based on almost any basis.”

Also, the complaint suggests that Bob’s receives “incentives” from Guardian for the protection plans it sells.

Article Type: Lawsuit
Topic: Contract

Most Recent Case Event

Bob’s and Guardian Goof Proof Protection Agreements Illinois Complaint

September 26, 2021

What constitutes “accidental” damage to a product? This class action concerns sales of “service contracts” to customers by Bob’s Discount Furniture, LLC, to protect the furniture they buy, which are issued by Guardian Protection Products, Inc. The complaint alleges that the service contracts are actually insurance and that Guardian does not fulfill its obligations.

Bob’s and Guardian Goof Proof Protection Agreements Illinois Complaint

Case Event History

Bob’s and Guardian Goof Proof Protection Agreements Illinois Complaint

September 26, 2021

What constitutes “accidental” damage to a product? This class action concerns sales of “service contracts” to customers by Bob’s Discount Furniture, LLC, to protect the furniture they buy, which are issued by Guardian Protection Products, Inc. The complaint alleges that the service contracts are actually insurance and that Guardian does not fulfill its obligations.

Bob’s and Guardian Goof Proof Protection Agreements Illinois Complaint
Tags: Breach of Contract, Fraud, Negligent Misrepresentation