All About American Home Shield Lawsuits

Learn what American Home Shield lawsuits are out there, and how to take action…

American Home Shield is a popular home warranty company. They have gained much of their reputation by addressing situations where normal homeowners insurance might otherwise fail, so users can invest in warranties for different items in their household.

However, just because they fill a much-needed niche does not mean they are not without their lawsuits. Here is what you should know about American Home Shield lawsuits:

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Are lawsuits against American Home Shield allowed?

Technically, lawsuits are allowed and they aren’t. American Home Shield user agreements, the kinds that customers who use the warranties sign, typically include language which prohibits customers from suing American Home Shield in most situations.

However, you still have options for compensation in the event that American Home Shield does something wrong and this is usually through consumer arbitration or small claims court. 

We may be biased, but consumer arbitration is usually the better option. And we can help you with it. 


What is a Class Action Lawsuit? Can I file a Class Action Lawsuit against American Home Shield?

You might have seen class action lawsuits listed in the news not just with American Home Shield but with other large corporations. Class action lawsuits are lawsuits where hundreds or thousands of consumers or customers all have the same complaint against a company so they all get represented through one lawsuit rather than each filing multiple lawsuits.

Unfortunately the fine print in your user agreement with American Home Shield probably prevents you from jumping into a class action lawsuit even if it is in the news.

Thankfully at FairShake we are reinventing the American Home Shield lawsuit process. Complaints are common and consumers often have the same questions about their legal rights.

That is why we help you by guiding you through the legal processes available to you and creating personalized documents on your behalf.

Start Your Own Claim in Under 10 Minutes


As an American Home Shield customer, what are my options for a lawsuit?

As an American Home Shield customer your options for lawsuits are limited. You can always file a claim against American Home Shield but for lawsuits:

  1. You can sue American Home Shield in small claims court.  If you try this route you will need to pay for filing fees, submit lots of paperwork with your local courts, and go to court hearings.
  2. Your other option is to use consumer arbitration from the comfort of your home. With consumer arbitration you argue your case in front of an arbitrator, very similar to a judge, and they make the final decision about compensation. FairShake helps make this process easy and convenient. Find out how

While the lawsuits below give good information for any American Home Shield customer, chances are the language in your American Home Shield agreement won’t let you sue them. But it will let you use consumer arbitration. FairShake can help you with the arbitration process to get the compensation you deserve. 

Watch: How to File an Official Claim against American Home Shield

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Recent and notable American Home Shield lawsuits:

American Home Shield Lawsuits over Breach of Contract

In 2003, a lawsuit reached the U.S. Court of Appeals. In this case, two individuals sued the company over fraud and negligent misrepresentation. According to the court documents, they entered into fixed rate agreements with the company, but the company changed the contracts without warning. As contractors working for the company, the claim was, they were not sufficiently compensated for their work, which represented a breach of contract. 

American Home Shield Lawsuit over Bad Faith

In 2009, a couple filed a lawsuit. In their case, the couple had a policy with American Home Shield when they tried to have their HVAC system replaced, in spite of coverage, they said the company did not come through. The lawsuit asserted this represented a failure of the company to provide the service for which it was paid, or a “bad faith” action. 

American Home Shield Small Claims Lawsuits

In 2021 a small claims court case was submitted against American Home Shield. However, this case is pending with no court documents available to the public yet. 

Another lawsuit in Southern California in Los Angeles in 2021. This case had a non-jury trial scheduled for October but was dismissed by the person who originally filed it a few weeks before that trial, something often indicative of a private settlement outside of court.  

Looking for more examples of American Home Shield complaints? See more in FairShake’s AHS complaints library

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