Generac Standby Generators May Corrode, Leak, and Cause Fires Class Action

How would you feel if you bought an item that had a dangerous defect, and the maker wanted to charge you to inspect it for this defect? That’s what the complaint for this class action alleges has happened with standby generators from Generac Power Systems, Inc. The complaint claims that the generators may develop corrosion in the fuel line, which can lead to leaks or unit fires, and that Generac is charging owners to inspect their units.

The Nationwide Class for this action is all persons or entities in the US who own a Generac home standby generator and received a letter substantially similar to Exhibit A filed with this complaint. Pennsylvania and Virginia Classes have also been defined for persons or entities in those states.

One of the two plaintiffs for this class action, Greg McMahon, owns a Generac 14KW/990 GRD+200A SE T/SW generator that was installed in his home by the previous owner in 2014. When McMahon bought the home in 2015, Generac offered him an extended warranty on the generator until 2024. McMahon bought the warranty.

In December 2020, Generac sent him a letter telling him, “Significant corrosion of the fuel plenum may lead to a potential fuel leak during the generator operation, resulting in the risk of a unit fire.” The letter recommended that he pay $80 for an inspection to see if the fuel line had experienced corrosion. Generac further said that the $80 would only be reimbursed to customers whose fuel lines were found to be “significantly compromised.”

McMahon paid the fee but was not reimbursed.

The other plaintiff for this action, Adam Goldberg, bought a Generac Guardian 20kW Aluminum Standby Generator System from an online retail seller which he had installed by a contractor. He received a similar letter from Generac in March 2021, telling him about the potential corrosion, leakage, and fire, and also recommending he pay the $80 inspection fee that would be refunded only if the fuel lines were found to be “significantly compromised.”

Goldberg has not paid the fee because he believes the inspection should be done for free.

The complaint alleges, “As a result of this inspection fee, Generac is able to avoid providing warranty service to affected consumers, while simultaneously burdening them with a faulty, fire-prone generator.”

Generac provides a five-year limited warranty on its generators which says, “Generator and/or transfer switch system will be free from defects in material and workmanship” for five years or 2,000 hours, whichever comes first. However, the complaint calls the limitations on the warranty “unconscionable.”

Generac, the complaint alleges, “as the manufacturer of the Class Generators, knew or should have known of the conditions in which the Class Generators would generally be installed, and knew or should have known that the Class Generators would develop an issue posing a severe safety risk.” According to the complaint, Generac’s “enforcement of the durational limitations on those warranties is harsh and shocks the conscience.”

Article Type: Lawsuit
Topic: Consumer
Tags: Breach of Implied Warranty, Breach of warranty