Emerging Issues Archive
Extended Warranty: Do you Need it? What if a Repair Claim is Denied?
February 7th, 2012. By AbiK
It’s become the all-familiar conversation as you pay for that washing machine, HDTV, smart phone or even a set of luggage— “Would you like to purchase the extended warranty on this? It covers blah blah blah blah just in case blah blah blah…” Chances are, as if by rote, you shake your head to indicate that, no, you don’t want whatever protection plan they’re offering up.
It makes sense, after all, as we’ve been trained for years now by consumer advocacy groups to “just say no” to most extended warranties. It’s become a Pavlovian response. But then why are these protection plans still around if no one is buying them? Clearly some folks must be buying—and the question is, are they the smart ones or are we really doing the smarter thing by passing up what might seem like some extended warranty scam?
The answer is, it depends.
So here are some extended warranty guidelines—things to consider before opting to pay for a protection plan that goes beyond the manufacturer’s initial coverage plan period (and what to do if after you’ve purchased a protection plan you run into a bad faith insurance situation.)
1. Do your homework—research what you’re buying before you buy it.
Reliability Ratings. Find out how reliable the appliance or tech gadget is—does it have a bad track record for repairs? How costly are repairs? Look at how the product is rated at Consumer Reports, for example. Check out reliability reviews on laptops, smart phones, tablets, HDTVs, cameras—all tech gadgets and gizmos–at PC World, CNet or PCMag. Reliability ratings will give you a sense of what kind of repairs, if any, you can typically expect the product needing over the time in which you’ll own it
New May Not Mean Reliable. Keep in mind as well that new generation products–that is, products with new technology or design features–may not have all their bugs and kinks worked out when they launch. In such an instance—if you’re the type who has to have the latest and greatest thing on the market regardless of how much reliability data may be available on it—then an extended warranty may be worth looking into. Or, hold your horses and wait for the next production run in which improvements have been made. And a final note on new tech—if you think you’ll upgrade or switch to a new model within a couple of years anyway, the extended warranty probably isn’t worth it.
2. Look in your wallet—your credit card may protect your purchase, too.
Paying with Plastic can Provide Extended Coverage. Cards such as American Express offer some extended warranty protection with even the basic Green Card. This is how the AMEX extended warranty coverage works:
When you charge the entire cost of a covered product with your American Express® Card, the Extended Warranty will extend the terms of the original manufacturer’s warranty for a period of time equal to the duration of the original manufacturer’s warranty, up to one additional year on warranties of five years or less that are eligible in the U.S.
If you’re not sure how or what might be covered with your credit card, call the customer service number on the back of your AMEX, VISA, MasterCard, Discover, etc. card and ask. You may find that you’ve got extended warranty protection already.
3. Find out what the extended warranty covers.
Read the Extended Warranty to Understand the Terms. Know what you’re paying for and what to expect should your 3-year-old drop your smart phone into the toilet. Some warranties don’t cover all “accidents”. Some only cover a specific set of parts. After reading about the product’s reliability and which parts are most likely to fail, compare that information with what’s covered by the extended warranty.
Understand the coverage period as well—typically, you’ll pay more for a longer coverage period, which at first makes sense. But if you’re not planning on keeping or using the product for a full five years, you probably don’t need a 5-year extended warranty, and you’re better off saving your cash.
4. Follow the 20% rule.
5. If something goes wrong…
Riddle: When is your Sugar Daddy your Daddy, too?
February 6th, 2012. By AbiK
“Sugar Daddy – noun; a well-to-do usually older man who supports or spends lavishly on a mistress, girlfriend, or boyfriend.”
As per Merriam-Webster. And as in, “She’s on the lookout for a new sugar daddy.” That’s the definition—so see if the shoe fits as you read on, then try to answer the riddle: When is your Sugar Daddy your Daddy, too?…
Aside from the natural questions that arise from such an arrangement (e.g., Is Goodman technically romantically involved with his child? Can he be charged with incest should he now have “sexual relations” with Hutchins? Would his biological children be aunts or uncles to any child he might have with Hutchins? If Carroll Goodman (John’s ex-wife) has a birthday party for her son or daughter—will she feel an odd obligation to invite their new sister?), one can’t help but raise a suspicious eyebrow as to the motive here. Why—WHY?—would a man of seemingly healthy mind—allegations of cocaine use aside—want to adopt his 42-year old girlfriend? And, of course, that leads us to the backstory…
In 2010, Goodman was in a car accident for which was he charged with DUI—or more specifically, DUI manslaughter, vehicular homicide and leaving the scene of an accident. The manslaughter and homicide parts come from the nature of the accident—Goodman allegedly blew through a stop sign and ran into another car. Scott Patrick Wilson was in that other car and he tragically lost his life as a result. (Wilson’s parents have filed a civil suit).
Goodman goes to trial on March 6 for those criminal charges—and he stands to get up to 30 years in prison if he’s convicted. The civil trial is set for March 27.
But a funny thing happened on the way to the trial: Goodman adopted a daughter!
Yes—Five…months…before…his…trial. Raise that eyebrow and turn your glance to the money trail.
It’s a little tricky, but Goodman had apparently set up a trust for his two minor children. If the Wilson’s were to win their civil suit, they would not be able to touch the money in the trust. But Goodman could lose a substantial amount of money he has that’s not in trust—and if so, he’d be unable to touch the money that’s in trust for his kids because that money is reportedly tied up until the kids are 35 years of age.
Ahh…but if he adopts a 42-year old—since she’s over 35—and she goes on the trust as well, then she can access one-third of that money which would mean HE can access that money, too! “Genius!” he must’ve thought. (Wonder if he thought about how much he might be pissing off his real kids once they get a drift of the situation…)
And that’s what has the legal world abuzz right now—is this a surefire move to ‘beat the system’? Will it work? Will the adoption hold up in court as legit?
And does it even matter given that the court of public opinion has basically already lambasted Goodman and his apparently integrity-lacking girlfriend? If it was a ‘genious’ legal move—which has yet to be seen—it was a disastrous PR move—a young man dead as a result of alleged DUI, two young children pulled into some weird financial and familial threesome…
It’s a riddle for sure. But the answer to “When is your Sugar Daddy your Daddy, too?” is…
Clearly, when it’s John Goodman.
Tort Reform Video Takes it Too Far–or Right on the Money?
January 24th, 2012. By AbiK
Was clicking around on some attorney blogs, and came across this gem—a rendering of what tort reform could look like for medical malpractice. Clearly it’s a bit over the top in a number of ways–but the point is there. And sadly, it takes a dramatization like this in order to crystallize key points buried in tort reform legislation.
If you’re wondering what the HR 5 bill is, it’s aim is to “improve patient access to health care services and provide improved medical care by reducing the excessive burden the liability system places on the health care delivery system.” That’s the aim. And it all sounds good—until you start to read and understand what it all might mean to you or your loved one should you find yourself in need of a personal injury attorney.
Oh, and note to self: phrases on a government bill such as “sharing of information” should always pique one’s interest…
Attorney Mark Scurti lends a Pro Bono Hand to those facing Bankruptcy
January 17th, 2012. By BrendaC
Attorney Mark Scurti has donated countless hours of his time to help people through tight spots with creditors over the last decade. Since 2001, Scurti has handled more than 50 bankruptcy cases pro bono and has eight more on the docket for 2012. “I didn’t realize it had been that many,” says Scurt
i. “You do what you need to do especially in times when people really need help.”
Not only has he personally handled pro bono cases, he’s also helped hundreds of other people avoid costly legal expenses by teaching them how to represent themselves in bankruptcy court.
Scurti, who is a bankruptcy lawyer with the firm of Hodes, Pessin & Katz, was recently chosen as the Maryland Volunteer Lawyers Service (MVLS) volunteer of the year. The award is in recognition of the volunteer attorney who has done the most to further assistance to pro bono clients through the MVLS. Modest to the core Scurti says, “I was very honored and humbled by that award but I am just one of many lawyers who do pro bono work. The Ma
ryland Bar Association and MVLS are both very passionate about seeing that people are represented and making sure that the system works.”
As many as 1,500 people a month in Maryland appear in bankruptcy or debtor court—many cannot afford a lawyer and there aren’t enough pro bono lawyers to go around. Up to 16 per cent of those people opt to represent themselves pro se—that is, advocate for themselves. “Finding volunteer lawyers to take all intake cases can be difficult,” says Scurti.
Scurti set up some “pro se” clinics where lawyers give filers a quick primer on what they need to know about going to bankruptcy court. “I harangued some fellow attorneys of mine to come in and provide 15 to 20 minute consultations,” says Scurti. “They can talk to an attorney after and get some guidance—is this something I should really do by myself—or do I need to get an attorney to do?”
And how do they do? “Well, they do pretty well,” says Scurti.”
“Obviously the forms are overwhelming to them but many times it is just a matter of unlocking some of the mysteries of what these forms are, where they go, and a lot of the folks can do it successfully,” he adds. “But there is a lot of support for them, too.”
Bankruptcy and debt problems are Scurti’s areas of expertise. For lawyers whose practices don’t typically handle those kinds of issues, but who would like to help the thousands of Americans struggling with debt problems, Scurti and the MVLS recently set up a workshop to get attorneys up to speed on bankruptcy court. “We actually got about 55 new attorneys who came in for the workshop on how to prepare a simple chapter 7 bankruptcy application,” he says. “We were able to place about 30 cases with pro bono attorneys and we got rid of a lot of cases that were back-logged in the system.”
Scurti and the MVLS even produced a video several years ago for pro se filers. It can be found on the US Bankruptcy court website.
Attorney Mark Scurti is a member of the Hodes, Pessin & Katz Corporate and Business Services Group. He primarily practices bankruptcy law. He also practices same-sex/LGBT law. He received his law degree from the University Of Baltimore School Of Law and holds a B.A. in Marketing/Business and an M.B.A. from Loyola College in Maryland.
Gambling for Justice: Class Action Lawsuit v. Small Claims Court, Place Your Bets
January 13th, 2012. By AbiK
It’s a well-chronicled sentiment: class action lawsuit lawyers get rich on attorneys’ fees and the little guy gets stiffed. Whether true or not—and there are arguments on both sides—it’s easy to see how a settlement check for $1.13 can make a plaintiff feel like ‘thanks, but no thanks’. And that brings us to the case of Heather Peters, who is suing Honda in small claims court over her claim that Honda engaged in false advertising when it stated her 2006 Honda Civic Hybrid had a 50 MPG rating.
Small claims court? Isn’t that only for some kind of ‘my boyfriend split with my smart phone and $800 I had under the mattress” type of reality tv show crap?
Well, no—and that’s the point—or calculated bet—Peters is trying to make. See, according to the Honda Civic Hybrid Class Action lawsuit proposed settlement FAQ, each class member would receive $100 as settlement. Peters, who is a former attorney herself, deems that a bit of a paltry sum and so she took the route that most of us do not and she chose to opt out of the proposed settlement. And, in turn, she took her complaint to small claims court.
What’s intriguing about her choice is that, not only can she seek up to $10,000—the new 2012 limit set for small claims in California where the complaint is being heard—but, if she can persuade enough 2003-2009 Honda Civic Hybrid owners to follow suit (no pun) and head to small claims court, she estimates that Honda would be liable for nearly $2 billion—vs the current liability they face coming out of the class action lawsuit in which each class member would receive $100.
Talk about power to the people—if only the people took to the power—by February 11, 2012—the date by which class members’ opt out requests to the Settlement Administrator need to be postmarked.
At issue in the Honda Civic Hybrid Class Action lawsuit is not just that advertised miles per gallon (MPG) ratings for the car were misrepresented, but also—and here’s where a subclass of class members enters into the picture, to which Peters also belongs—that for model years 2006-2008, Honda Civic Hybrid (HCH) owners were told their cars needed a software update to the Integrated Motor Assist (“IMA”) battery system.
What HCH owners didn’t know—and American Honda Motor Co. apparently did not disclose—was that allegedly, in order to install the update, the result would be a negative impact on fuel economy. Not ideal when the primary reason you purchased the car was for its fuel economy.
You can start to see where $100 per claimant—worth what? a couple of tank fills?—isn’t sounding like much.
So Peters is placing her bets on small claims court. But as stated earlier, it’s a bit of a calculated bet for her–she’s done, and doing her homework. Just see her website. And she says that anyone can do the same.
But would you?
Prepping for small claims court, sans an attorney of course as that’s part of the charm of small claims court—no lawyers allowed—takes time. And, you do have to have the ability to put together a pretty darn good case, particularly if you’re taking on a major corporation. Given that, it comes down to whether you think it’s worth it, or not. And that’s probably why so many of us sit back and await whatever settlement check we receive.
You have to admire Peters though. She’s up for a fight, and she’s got a pretty good one from the looks of it—perhaps even a new profession in behind-the-scenes small claims coaching. And, at least she is not just sitting back and complaining about attorneys’ fees—she’s trying to take a stand, both literally and figuratively.
Peters’ next hearing date is January 25.
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