A home warranty company with a limited liability clause

UPDATED: Oct 1, 2022

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A home warranty company with a limited liability clause

A home warranty company has a limited liability clause that pays no more than
1500 for a dispute. I have a small claim for 3000 in the state of New Jersey. The
home warranty company is willing to settle for 1500. Am I capped by this amount
due to the clause? Or can or can I still seek 3000 in a suit?

Asked on March 9, 2018 under Business Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You are capped by the liability limitation, to $1,500. Such limitations on liability are legal and are fairly common in a number of different types of contracts (a warranty is a contract). By agreeing to/purchasing this warranty, you agreed to its terms, including the limitation on liability.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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