Gallagher & Kennedy Helps Arizona Secure $11.8 Million Choice Home Warranty Settlement

Choice Home Warranty sold home warranty plans to Arizona residents over the phone, promising to cover repairs and replacements for things like air conditioning units and major appliances. The Arizona Attorney General's Office said the reality was different. According to the state, the company buried exclusions and limitations that drained the value of the policies, misrepresented what the warranties actually covered, and refused to replace equipment it had advertised as protected. Arizona sued the company in 2019.

The complaints had been piling up for years. More than 1,500 Arizona customers filed grievances after 2013, and the Attorney General's Office said the sales pitch went after veterans, senior citizens, and people living on fixed incomes. Many paid for coverage, then learned the fine print left them with almost nothing when an appliance broke down.

After roughly six years of litigation, the Attorney General's Office hired Gallagher & Kennedy to lead the trial team. Partners Shannon Clark and Bob Boatman, who run the firm's catastrophic injury group, took the case with associates Tim Newman and Erin Anderson, working alongside the office's consumer protection lawyers. By then the file had grown to thousands of exhibits and hundreds of witnesses, and the court had set a trial expected to run about two and a half months.

The case settled on the eve of that trial. Choice Home Warranty agreed to pay $11.8 million, an amount the firm described as the largest settlement of its kind in the country for consumer claims like these. Because the matter resolved by agreement, there was no verdict to appeal and no later reduction.

The settlement did more than move money. Choice Home Warranty agreed to reform how it sells warranties and to give buyers meaningful disclosure before a sale, terms aimed at the conduct the state spent years documenting. "Businesses cannot hide behind fine print and hidden disclosures to exploit our most vulnerable consumers," Attorney General Kris Mayes said. The company denied the allegations and admitted no wrongdoing. The court entered judgment on January 23, 2026.

Arizonans who bought a Choice Home Warranty policy by phone between January 1, 2013 and January 1, 2023 for a property in the state can apply through the Attorney General's Office for restitution of up to the full price they paid.