ARE YOU LIABLE ?

How concerned are you with improper dryer vent materials or crimped and/or smashed ducting that have been installed on your customer’s appliances that you have been called in to service? What about refrigerators plugged into two-wire electrical receptacles using a 3/2 prong adapter, or with the ground plug cut off entirely? Have you ever encountered refrigerators or any appliance installed using an extension cord? How about a brand new over the range microwave that calls for a 33” overhead clearance installed in a place where there is only the (formerly) standard 30” clearance? Ever thought about the CFM (cubic feet of air per minute) rating of the exhaust fan sitting over top of a Pro-style range? Have you ever measured it at the outside hood?  What about the side and rear wall clearances called for in various gas cook top models?  Have you ever looked at a customer’s selection of cookware that they are using in their microwaves to heat their food?

There are endless issues that we could list regarding the selection of various appliance models and their proper installation. These issues and many more should be of paramount concern to anyone in the appliance service business, especially if you are signed up as a warranty service provider.  What does it matter, you ask? Let’s consider several scenarios. 

Let’s say that you get a call to look at a gas cook top that is six months old with a complaint of poor ignition.  You correctly diagnose and repair the problem.  Everyone is happy and life is good. A year later you receive a letter in the mail from the customer. Apparently the gas cook top was installed 1” too close to the side wall of the cabinet and the cabinet has begun to warp and buckle.  The unit is now out of warranty. The manufacturer is not accepting any blame as it is an installation issue. The installer is long gone and nowhere to be found.  You were the factory authorized service company trained to repair this unit.  Forget the fact that you have never even seen the cutout specifications for this unit or any other unit since it typically doesn’t have to do with anything service related.  Are you still responsible for not catching the installation mistake?   

The second scenario involves a remote blower vent hood sitting over top of a pro-style gas range.  You are called out on the light switch for the hood and never even consider nor give any attention to the blower rating and/or performance.  However, the range calls for a minimum of a 900 CFM blower and they only purchased a 650 CFM unit. The purchases were made at two separate retailers with the customer having done all the research and simply ordering the units without any sales input at all. Are you accountable as an authorized service provider for not catching this potentially harmful situation? I totally understand that the customer is the one who made the mistake. That is beside the point.  Are you in any way liable?  

The third scenario has to do with a dryer that is 15 years old and has a venting problem but you were called out because the drum stopped tumbling.  You replace the belt, confirm the unit is heating and tumbling, you visually inspect the venting, which is rigid aluminum and doesn’t appear to have a long run.  You never check airflow.  5 weeks later the dryer has a lint fire due to a restricted vent.  The dryer sustained damage and needs to be replaced.  Are you liable? What if you had checked the vent and found the partial restriction and advised the customer of the need to have their vent professionally cleaned and the same situation unfolds?  Will your insurance coverage protect you? Is there anything you could or should have done differently? A servicer I am familiar with actually requires his technicians to check the air flow on every dryer they service and note the findings on the service ticket. If they find a restriction of any kind and it causes the performance to fall below the acceptable manufacturer ratings, this company will unplug it, turn off the breaker and/or turn off the gas valve disabling the dryer to prevent further use until the problem is addressed.  They take great pains to detail the situation in writing on the service ticket, including making sure the customer understands why the unit has been disabled and the fact that if the unit is reinstalled by the home owner or any agent contracted by the homeowner the customer is accepting full and total responsibility for whatever should occur from that point on. Needless to say, they have become very serious in dealing with these matters.  

Now let me bring in an added glitch of performing a rework for a manufacturer on appliances that have had a recall. What happens if a product has had a recall issued on it due to potential physical or material harm and you, as the servicer of record to perform authorized repairs for the brand, make the recommended repair only to find out that the manufacturer has not received prior approval from the Consumer Product Safety Commission (CPSC) for the “fix”? Are you protected by your service agreement contract with the manufacturer? Will your own insurance still support and cover you in the event you are named in a law suit surrounding this scenario? What if you do the repair they have recommended and suspect it is not going to adequately solve the problem and advise the manufacturer of your opinion? Should you also tell the customer? Should you disable the unit? Should you note it on the warranty ticket? 

Think about this for a minute. The manufacturer is our partner in that we are performing service for their customer on their appliances. We are representing the manufacturer to the customer. We are for all intents and purposes the hands and feet of the manufacturer. Granted we are independently owned and operated, but we are doing work in the customer’s eyes as the manufacturing company’s agent. When should our allegiance belong to the appliance manufacturer or to the customer? How would the manufacturer view it? How about the customer? How about a judge in a court of law? These are very serious and important questions to consider. It is best to do so now when there isn’t a pressing situation for which you must make a decision immediately. I would encourage each decision maker to exercise great caution in performing reworks on recalled appliances.  We absolutely have an obligation to the customer. Truth revealed is always better than veiled truth.  The challenge for us is in knowing what the truth is. How much are we taking for granted? How much blind trust are we extending to our partner? How much does the manufacturer really know about the long term impact of their “fix kit”? I’m not questioning the integrity of our manufacturing partner. I am simply pointing out the fact that they may not know and yet they still need to respond to the issue at hand.  The question centers on our liability through it all.  

I would propose that there should be a built-in indemnity clause in our service agreements with all the manufacturers that hold’s us harmless in such circumstances.  Doesn’t that make sense in the spirit of the partnership? I think so.  Have you ever read all the fine print in your various agreements? Most company owners, especially smaller service operations simply trust in the integrity of their potential partner and the document presented to them. So they are signed without much scrutiny. In fact, I would bet most of us have never had our attorneys review the agreement.  I admit that I haven’t. Although I’ve read through them and scratched out some things I was unwilling to accept, I have not been as scrutinizing as I need to be in light of the issues I’ve presented in this article.  

This issue is going to grow and will eventually gain the full attention of our industry as our society becomes more and more litigious and there are more and more recalls announced in our industry.  We need to spend some time and work through these serious sticking points. I know of one servicer who endured a lengthy trial, had the support of their insurance company, won the case and it still cost him many thousands of dollars.  Are you prepared to defend yourself against any claims that could arise from the scenarios I’ve laid out? Have you reviewed your own insurance coverage and discussed these possibilities with your insurance agent? Do you feel confident in the plans you have in place to address these kinds of issues should they ever arise in your business?  Please give me your thoughts on these matters. I would like to start an open discussion. Let’s see how we can help one another sort through these things.  I assure you as an association we will be having discussions with high level executives within each of the manufacturers.