FirstEnergy defeats class action brought by "all electric" customers seeking discounted rates forever
Clients FirstEnergy Corporation
Jones Day obtained a dismissal of a potential class action brought by "all electric" customers against FirstEnergy Corp. and two of its Ohio utility subsidiaries. Bringing claims of breach of contract and fraud, among others, these customers alleged that the companies had misled them into buying all electric homes or electric heating systems by promising that the customers would receive discounted rates forever. The trial court granted the companies motion to dismiss on the ground that the Public Utilities Commission of Ohio, and not Ohio courts, had exclusive jurisdiction over such claims. The Eleventh District Court of Appeals affirmed the dismissal on all claims except for the fraud claim. Jones Day convinced the Ohio Supreme Court to take the case and ultimately to reverse the appellate court's ruling, thus reinstating the dismissal of all claims against the companies.
DiFranco v. FirstEnergy Corp., et al., Case No. 2011-2025 (Ohio)