West Philly Local reports on a lawyer seeking participants for various class action suits against a dozen or so retail suppliers

West Philly Local reports the lawyer intends to sue various suppliers for alleged breach of contract based on variable rate contracts which called for "market-based" pricing. The lawyer alleges the rates increase more than "market" forces would dictate

While determinations are dependent on the precise contract language, and if/how "market" was defined and/or if there was language that the price would vary based on market and other factors, courts have concluded that variable rates which exceed default service rates is not an indication that the variable rate is not competitive or market-based, and that claims that a rate was pitched as being set at the prevailing market rate during the sale process was undermined by language in a TOS allowing a supplier to change its rate at its discretion

A district court in a case more directly on point (and in which the same law firm that is now seeking more class action participants represented the plaintiff) had ruled that a rate whose TOS include language stating, "may vary dependent upon price fluctuations in the energy and capacity markets," did not require rates to only be set based on such wholesale market prices, because the TOS also said rates may vary at the supplier's discretion. However, an appeals court vacated and remanded such district court's judgment, and parties have reached a settlement agreement in principle (which has not yet been publicly filed) to resolve the matter

See West Philly Local for more

Tags:
Pennsylvania   Litigation   Variable rates  

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