$17 Million Settlement for HVAC Lease Customers Approved

A settlement of $17 million has been approved in a class action lawsuit involving customers who leased HVAC equipment from five Ontario-based companies. The Ontario Superior Court of Justice confirmed this decision in February, allowing claims to be processed starting in June. The companies involved—Crown Crest, Simply Green, Utilebill, Sandpiper, and HCSI—did not admit to any liability or wrongdoing as part of the settlement.

The deadline for eligible customers to submit claims is October 2, 2025. This settlement provides an important opportunity for individuals across Canada, excluding Quebec, who have leased HVAC equipment from these firms between July 17, 2013, and January 15, 2025. Legal experts estimate that approximately 40,000 customers may qualify for compensation, which includes various types of equipment such as furnaces, air conditioners, and water heaters.

Details of the Settlement

The settlement agreement encompasses a $17 million compensation component alongside commitments to cancel certain ongoing leases. Notably, some customers will benefit from the cancellation and forgiveness of arrears on leases valued at $13.5 million. This involves gifting the leased equipment to customers without further payment or obligation.

Additionally, lease payments will have a permanent cap of 3.5 percent on annual escalations effective from November 1, 2024. For individuals who have already paid to exit their leases, the settlement allows for potential reimbursement of some or all of those costs.

According to Mohsen Seddigh from Sotos LLP, the plaintiffs’ law firm, the leases were rendered unlawful due to undisclosed liens or registered Notices of Security Interest (NOSI) placed on customers’ homes. “People would face the prospect of paying sums that they did not get full disclosure of at the outset,” Seddigh stated. This settlement aims to eliminate any liens or NOSIs across the affected leases.

Moreover, cash compensation will be available for those who had to pay to remove NOSIs. The agreement also outlines that leases will be cancelled based on the duration of default as indicated in the companies’ internal records. “The defendants agreed to cancel a series of leases, up to $11.5 million in total,” Seddigh explained, with an additional budget of $2 million set aside for cases involving vulnerable populations.

Background of the Lawsuit

The lawsuit originated from claims made by Toronto residents Goren Donev and Alga Bonnick, who alleged that Crown Crest Capital Management Corp. and several associated companies, led by CEO Lawrence Krimker, violated Ontario’s Consumer Protection Act. Allegations included failure to inform customers about significant security interests against their home titles and the illegal practice of door-to-door sales, which Ontario banned in 2018.

According to Seddigh, predatory practices are common in the home equipment sector, often leaving homeowners with few options. In response to the lawsuit, a representative from Crown Crest previously stated their expectation that the claims would be dismissed, asserting their compliance with consumer protection laws.

As the deadline approaches, affected individuals are encouraged to submit their claims through the official claims portal or contact the claims administrator at 1-833-419-4822. More information regarding the class action and settlement can also be found on the law firm’s website.