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WMP wins arbitration argument before the Second Circuit, the highest federal court in New York, allowing class action against Stella Orton to proceed
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WMP Wins in the Second Circuit Court of Appeals in Asserting Breach of Contract Claims Against XOOM Energy
On July 19, 2019, the Second Circuit Court of Appeals ruled in favor of Plaintiffs Susanna and Boris Mirkin, both represented by WMP, finding that Plaintiffs had brought a plausible claim for breach of contract. The Court of Appeals reversed the Eastern District of New York court that had previously dismissed the Mirkins’ complaint.
Specifically, the Second Circuit found that Plaintiffs had showed using expert calculations that XOOM’s energy rates had significant upward deviations from the market supply cost and that XOOM’s rates had risen even at times when supply costs fell. The Court of Appeals found that evidence was sufficient for the Plaintiffs to state a claim for breach of contract given that XOOM’s consumer contracts represented that consumer energy rates would be based on XOOM’s supply costs. The Court also found that XOOM failed to present even a single reason for the deviations that Plaintiffs had presented.
The Second Circuit ultimately allowed Plaintiffs to file an amended complaint and remanded the case to the Eastern District of New York for further proceedings. The case has since proceeded into the discovery phase.
To learn more about the XOOM Energy class action litigation, please click here. If you are or were a XOOM Energy customer who would like to join this case, please contact us.