Stainsafe Warranty Arbitration
Molfetas v. Stainsafe, Inc. et al. (AAA arbitration) was a brought as a AAA class arbitration to the company’s (Stainsafe’s) arbitration provision, on behalf of a class of persons who purchased furniture warranties from Stainsafe. The statement of claim (the arbitration equivalent of a complaint) alleged that the warranties were either worthless (or worth less than the amounts paid for them by class members) at the time of purchase, due to undisclosed coverage limitations and exclusions. The arbitrator, after extensive briefing and a three day evidentiary hearing, certified the nationwide class (under Florida law) consisting of all persons who purchased the warranties, based on the claims of worthlessness or diminution in value of the warranties at the time of purchase, and the certification award was confirmed by the Florida Circuit Court.