Litigation
In the District Court of Denton County, Texas
In re Denton County Electric Cooperative, Inc. d/b/a CoServ Electric(The Brady Class Action)
Case Number 2009-30003-211
Brief Summary
This Petition in Intervention asserting a class action lawsuit was filed in the District Court of Denton County,
Texas on March 11, 2009, in an existing lawsuit filed by CoServ Electric seeking discovery.
The Plaintiffs in Intervention seek recovery on behalf of a class of current and former members of CoServ Electric
of a portion
of more than $50 Million in patronage capital or capital credits owned
by current and former members of the Coop. Plaintiff's assert that these capital credits have been improperly withheld and wrongfully "discounted".
CoServ is attempting to remove this case and its companion case to federal court but that has not yet been decided.
For a complete list of all the allegations see the Petition in Intervention.
In the District Court of Denton County, Texas
In re Denton County Electric Cooperative, Inc. d/b/a CoServ Electric
(The Confer Class Action)
Case Number 2009-30075-211
Brief Summary
This Petition in Intervention asserting a class action lawsuit was filed in the District Court of Denton County,
Texas on March 11, 2009, in an existing lawsuit filed by CoServ Electric seeking discovery.
The Plaintiffs in Intervention seek recovery on behalf of a class of current and former members of CoServ Electric
of a portion
of more than $50 Million in
patronage capital or capital credits owned
by current and former members of the Coop. Plaintiffs assert that
these capital credits have been improperly withheld and wrongfully
"discounted".
CoServ is attempting to remove this case and its companion case to federal court but that has not yet been decided.
For a complete list of all the allegations see the Petition in Intervention.
Service Area
Rural Electric Cooperatives provide electrical service to customers
within a geographical area know as a "Service Area" or "Service
Territory".
These Service Areas often look like highly "gerrymandered"
political boundaries and occasionally there will be areas or pockets
withing the boundary where the Coop does not provide service like a
small town or city serviced by another electric utility.
Within these Service Areas the Coop typically has an effective monopoly with no meaningful competition.
According to its website, this is CoServ's Service Area:
Coop Website
Most Rural Electric Cooperatives maintain websites but they rarely
provide material information about important aspects of their
operations. In fact this failure by a Coop to be forthcoming about its
policies involving patronage or capital credits is a red flag that its
policies and practices are suspect.
This is CoServ's website: