Rusting solar energy storage systems installed on Auckland homes led Vector to sue California supplier Sunverge Energy for US$5.2 million.
Vector installed some 215 exterior Sunverge solar units on homes in the Auckland region through 2012-2014. Consisting of a battery, inverter and control system, Vector complains rust is allowing water to seep in creating an electrical hazard. The High Court was told Vector had a five year exclusive distribution contract for Sunverge products in New Zealand and Australia. This contract has since expired. Vector wants US$5.2 million for the cost of 295 Sunverge units purchased together with the cost of shipping back to California units held in storage. About 80 units remain uninstalled. Vector says Sunverge warranted its solar energy storage system fit for purpose for a period of twelve years six months.
Sunverge argues the dispute should be heard in the US courts; that is where the goods were manufactured and where it can claim compensation from component suppliers if necessary. Vector says their distribution contract specifies New Zealand law is the ‘proper law’ of the contract; New Zealand courts have exclusive jurisdiction. Associate judge Smith ruled the case be heard in New Zealand.
Sunverge alleges the rusting equipment was not installed properly. It also argues a full refund is not appropriate when not all installed units have rusted and in other cases consumers have enjoyed up to five years use.
Vector Ltd v. Sunverge Energy Inc – High Court (31.07.18)
18.155