Hagens Berman: 21-State Class-Action Lawsuit Against CBL for Inflated Electricity Bills Heads to Trial
Attorneys are gearing up to take the case to trial in April 2019
A
class-action lawsuit filed by Hagens Berman and Buckner+Miles against CBL & Associates for allegedly overcharging its mall
tenants for electricity is quickly ramping up to trial, after a federal judge in Florida certified the class of small business
tenants, denied CBL’s motion for summary judgment and set the case for an Apr. 1, 2019 trial calendar.
The lawsuit states that CBL’s tenants have been victim to a “criminal enterprise” in which CBL knowingly overcharged its mall
tenants for electricity by up to 100 percent.
The
notice of civil cases for trial sets a trial date of Apr. 1, 2019 at the U.S. District Courthouse for the Middle District of
Florida in Fort Myers. Exhibit and witness lists are due by both parties in March.
According to the lawsuit originally filed in March 2016, CBL promised its small business tenants that their electricity charges
would not exceed what CBL was charged by local public utilities for the electricity the tenants actually used, but CBL breached its
own lease agreements – and state law – by inflating both the electricity rates charged and the amounts of electricity used by
tenants.
In U.S. District Court Judge Paul A. Magnuson’s recent
order certifying the class, he called CBL’s objections “specious” and denied CBL’s attempts to strike expert witnesses chosen
by attorneys representing the mall tenants.
“According to Plaintiff, CBL and Valquest intentionally engaged in a scheme to inflate both the usage and the rate for that
usage. Indeed, Plaintiff cites to evidence that Valquest and CBL knew what they were doing was wrong and potentially illegal,” the
order states. CBL hired Valquest to prepare estimates of electricity usage (called “Valquest Surveys”) for its tenants, and based
its bogus electricity charges on those surveys, according to the allegations in the complaint.
The lawsuit details alleged racketeering and a conspiracy between CBL and Valquest, in violation of the Racketeer Influence and
Corrupt Organization Act (RICO), as well as violations of the Florida Deceptive and Unfair Trade Practices Act and Florida’s Civil
Remedies for Criminal Practices Act.
The suit seeks relief for all individuals and entities that leased mall space from and paid monthly energy charges to CBL and
whose electricity charges were determined based on a Valquest Survey.
Find out more about the class-action lawsuit against CBL on behalf of small business tenants in its shopping malls.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with 10 offices across the country. The firm’s
tenacious drive for plaintiffs’ rights has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s
Firm,” and MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at
www.hbsslaw.com. Follow the firm for updates and news at
@ClassActionLaw.
Ashley Klann
ashleyk@hbsslaw.com
206-268-9363
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