AG Dana Nessel seeks to dissolve Detroit-area landscaping, snow removal companies for alleged illegal practices
LANSING, Mich. (CBS DETROIT) - Attorney General Dana Nessel announced Thursday that she sued to dissolve Detroit-area landscaping and snow removal companies, alleging illegal business practices.
The lawsuit is to dissolve several Limited Liability Companies, owned by John and Michele Church.
The lawsuit looks for injunctive relief including prohibiting the two from incorporating, operating, or working for any business offering snow removal, lawn care, or landscaping services, Nessel said.
It claims that the Churches and their business entities violated the Michigan Consumer Protection Act (MCPA) and previously established Assurance of Voluntary Compliance (AVC) reached to settle previous consumer claims mediated by the Department of Attorney General (DAG), Nessel said.
John and Michele Church own and operate many incorporated business entities called Metro Mow 'N Snow, LLC, The Snow Guys, Inc, and John Church's Snow Service, Inc., according to the attorney general.
They also operate several non-incorporated business entities Farmington Mow N Snow, Snow Guy Enterprises, Titan Seasonal Services, Friendly Neighborhood Lawn Service, Friendly Lawn Care, Friendly Lawn & Snow, Lawn & Snow King, Greenkeepers Lawn & Landscape, North Star, BlueJay Outdoor Services, and Mike's Best, Nessel said.
The Churches and their businesses offered residential snow removal, lawn care, and landscaping services in the Detroit area for over two decades.
Nessel said her department received more than 200 consumer complaints about these businesses dating back to 2010 alleging unlawful business practices.
An investigation in 2017 resulted in an AVC, filed in 2018, where the Churches agreed to cease unfair or deceptive business practices, to not create any new same-service entities without notifying the DAG, to pay a $15,000 fine, to compensate any affected customers, and to compensate the DAG for investigative costs.
"The Church defendants resumed abusing their customers and violating the MCPA almost immediately," the department said.
Complaints went to both the DAG and the Better Business Bureau, citing alleged conduct that violates both the AVC and the MCPA.
According to Nessel, the lawsuit claims:
- civil violations including breach of contract
- continuing to engage in unfair and deceptive business practices
- failing to fulfill refund requests
- grossly misrepresenting the scope and quality of work being offered
- misleading consumers as to their legal rights to post and publish honest reviews of file complaints about, the services and conduct of the defendants
The Attorney General's lawsuit alleges that various iterations of the contracts the Churches' businesses required customers to sign included a non-disparagement clause that served to confuse consumers about their rights to take action, to caution other consumers, or to complain to regulatory agencies, such as the Department of Attorney General, if such complaints and reviews could harm the reputation of the business entity. As alleged, this would constitute an illegal violation of the MCPA.
The Attorney General seeks relief injunctions against the Churches and their several businesses prohibiting them from operating in the snow removal, lawn care, landscaping sector, and more.