A class action lawsuit was filed on behalf of customers alleging the company attempted to increase profits by unilaterally changing the material terms of consumer form adhesion contracts. The suit charged the company with unfair and deceptive business practices in regards to changes in the terms of their leases for water heaters after New England Water Heater took over Massachusetts Electric Co.'s business. The class action has been denied by the Justice of the Supreme Court because the class never held an original lease that was, or could have been, breached by the rental increases. (Aug-22-06)
Information Provided by New England Water Heater President Christopher J Doremus.