On August 27, 2025, the United States Court of Appeals for the Second Circuit affirmed a ruling from the Southern District of New York that energy company CleanChoice Energy, Inc. cannot force consumers out of court by silently sending them additional terms containing an arbitration clause after the contract has been signed.
Wittels McInturff Palikovic and co-counsel Finkelstein Blankinship Frei-Pearson & Garber LLP filed a class action lawsuit against CleanChoice in New York federal court in November 2023. The case alleges CleanChoice used deceptive pricing and breached its contracts, causing customers to overpay for electricity. The lawsuit also claims CleanChoice misled consumers by falsely promising to supply “green” energy and instead supplying the same, standard “brown” energy consumers could have obtained from their regulated utility companies.
Rather than account for its practices in open court, CleanChoice tried to force customers into private arbitration. The company argued that one of the plaintiffs had agreed to arbitration by continuing to pay her bills after CleanChoice silently mailed her a document containing new terms (including an arbitration clause), even though the original contract she signed had no such provision.
A federal judge sided with the consumer, allowing the case to proceed in court. CleanChoice appealed this decision, but the United States Court of Appeals for the Second Circuit affirmed the lower court’s ruling, confirming that a company can’t force customers into arbitration by silently mailing them new terms after the initial contract is signed.
If you were an CleanChoice customer who was charged excessive electricity rates or deceived by CleanChoice’s “green” energy program, we urge you to contact a class action attorney at WMP for a free case evaluation. Should a lawsuit be brought, there is no cost or fee involved in joining the case. You can contact us by clicking here, calling (914) 775-8862, or emailing us at case@wittelslaw.com.