Costco might face a lawsuit because of a failed installation! A recent case in the United States has brought the debate of corporate responsibility in big chains like Costco.
What started as a simple refrigerator home delivery, ended up in an affected client whose house was damaged. This may lead to a possible lawsuit asking Costco for a financial compensation of $700,000.
Costco is known for thinking about improvements for their clients’ shopping experiences, but this story shows the risks when services not included in the purchase aren’t properly supervised. So, let’s see how this story ended and what the company has done about it.
An apparently normal purchase
Bradley Byrd and his family were thinking about buying a new refrigerator, which is a normal thought for everybody who owns a house. However, this ended up being more complex than he and his family expected…
In November, Byrd bought a $3,500 refrigerator at Costco and a free installation service was included, something very common to attract clients.
His purchase was delivered and installed on the 2nd of December by an external contractor, a company or a technician that doesn’t directly work for Costco, but they offer their service on their behalf. Everything was going fine until something about the installation drastically changed that same day.
Byrd couldn’t believe it
Byrd wasn’t at home, but his daughter video called him to show him that most of the house was flooded. Why does this issue have to do with Costco?
Well, because it was all due to a water supply line the technician left loose. That’s not all, the hose became trapped under the refrigerator’s wheels causing friction and pressure, which ended up rupturing the water line.
Personal and economic damages
The family had to leave their house and move to an Airbnb right in the middle of Christmas celebrations. From this moment, they started to get high levels of humidity and mold which is damaging for health.
They estimated to have spent around $300,000 in cleaning, fixing, humidity control, air evaluations and travel expenses. However, public adjusters said the final amount could be over $700,000, 200 times more of the purchased refrigerator’s value.
What did Costco do about it?
What the company did was offer the family $175,000 as financial compensation, something Byrd obviously rejected because the figure is lower than what he really asked for. After this, Byrd found out something strange… the technician didn’t have any civil liability insurance which leaves hanging the thought of who should be legally responsible for the damages caused.
Some tips so you don’t experience the same situation
In case you are thinking about buying big household appliance with installation included, you should follow these tips:
- Check the technicians are certified.
- Confirm they have current civil liability insurance.
- Search for who will be responsible in case of damages.
- Record and take pictures of the whole process.
- Ask your insurance company before signing any paper.
- If the damage is serious, look for specialized legal advice.
Result of this conflict
Neither Costco nor the company responsible for the installation have publicly made a statement about the comments by the local newspaper News4JAX, the one that covered the story. The worst thing about these companies doing nothing about it is that Byrd feels left high and dry, when he has done nothing to cause this horrible situation that may leave him without any savings.
It’s outrageous the situation Byrd and his family are going through. We, as clients, should be listened to and be given solutions for these types of issues. This shouldn’t be happening anymore, so go and get informed before signing any paper that may get you in trouble.
