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Terminix Willing to Allow Customers To Obtain Fraud Judgement PDF Print E-mail
Written by Editor   
Tuesday, 08 July 2008

Terminix International, the country’s largest termite protection company, announced through its lawyer in open court in Morrilton, Arkansas on February 5th that Terminix offered to allow two customers to obtain a fraud judgment against it in December 2005. The Plaintiffs, William and Gail Dickens, alleged in their official complaint that Terminix defrauded them as part of a corporate-wide pattern and practice to cheat its termite protection customers by failing to follow procedures and requirements mandated by "statute, regulations, contracts, industry standards, and good practice ...and ... engaging in a pattern and practice of deceptive conduct designed to conceal their wrongdoing." The customers asked for punitive and compensatory damages.

In its pleading, Terminix said it would allow the court to enter a judgment on all of the allegations made in the complaint if the couple would allow Terminix to avoid a public trial by paying them only hundreds of thousands of dollars. The proposed judgment amount was over the maximum damage cap stated in Terminix’s Termite Protection Guarantee. The customers refused. In later testimony, the company admitted its promised to provide a protective chemical barrier around 100% of the foundation of the home, failed to do s o since 1978 (30 years), and never intended to bring the treatment up to standards required by law even after it knew the home was eaten up with termite damage. Terminix’s representative testified that in keeping with its usual business practice, it applied chemicals around only ten percent of the foundation of the home. The official even admitted Terminix expected infestations to occur given its practice of performing inadequate chemical applications.

Terminix is expected to argue that the jury should not know of its offer to admit liability. It faces March, 20 2008 trial date in Morrilton. Campbell Law is assisted by Little Rock lawyer Bobby Davidson in the litigation.

 

Terminix’s lawyer also admitted that the company used a termite chemical called Pryfon in the 1990's that it knows does not prevent termites. The company refused to retreat those homes across the U.S. despite knowing the homes will become infested, and charging annual contract renewal payments for contracts that promise to provide all "necessary services" to prevent termite attack. A class action case is pending concerning those allegations.

Last Updated ( Tuesday, 08 July 2008 )
 
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