NEWS & INSIGHTS

On October 7, 2025, the Pennsylvania Supreme Court heard arguments in a case brought by the Pennsylvania Office of the Attorney General against Gillece Services.  During the argument, the Justices observed that residential customers can verbally cancel a contract when the contract is governed by the Home Improvement Consumer Protection Act.  The Home Improvement Consumer Protection Act applies to all contracts over $500 for “home improvement” work — essentially work performed at a consumer’s residence.  While the Justices comments are not binding law, these comments are consistent with the prior decision of the lower courts and hint that the Court’s decision may make it clear that when the Act applies, verbal cancellations must be honored.  

Gillece argued only written cancellations were valid, the courts disagreed.

The Office of the Attorney General brought this case against Gillece because, on at least two occasions, Gillece refused to honor cancellation requests made by telephone.  In those instances, Gillece dispatched crews to perform work despite receiving verbal cancellation requests.  Gillece argued that the Unfair Trade Practices and Consumer Protection Law (and guidance from the Attorney General’s own website) requires them to provide customers with a notice that states that cancellation requests must be made in writing – either by returning the “Notice of Cancellation” portion of the contract itself, or by e-mail or another written medium.   

The Attorney General argued that Gillece violated a separate statute, the Home Improvement Consumer Protection Act, by failing to honor its customer’s verbal cancellation requests.  Because the Act does not require cancellations to be in writing, the Attorney General claimed that Gillece violated the Act by failing to honor verbal cancellations.  The trial court agreed with the Attorney General and issued an injunction directing Gillece to honor verbal cancellations for contracts governed by the Act.  Gillece appealed.  

The Supreme Court hints at new requirements

At oral argument, the Supreme Court suggested that the notice to consumers should draw a distinction between contracts that require cancellation in writing (those governed solely by the Unfair Trade Practices and Consumer Protection Law) and contracts that allow verbal cancellation (those governed by the Home Improvement Consumer Protection Act).  

What you need to know

The Court’s decision, once issued, will likely require contractors to consider changing their contracts for residential work to ensure the cancellation provisions in those contracts conform to the Court’s ruling.  We will update this blog once the Court issues its decision.  But every contractor performing work for residential customers should consider whether their contracts accurately describe the manner in which their customer can exercise their statutory right to rescind the contract.

For questions about how you may be affected if you are a contractor, contact Nick Jimenez, Senior Associate at The Lynch Law Group, via our Contact form or by calling 724-776-8000.