STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS IN THE MATTER OF: CASE NO. L05-3-1013 Southeast Restoration, Inc. d/b/a Afterdisaster in Florida. Respondent. / ASSURANCE OF VOLUNTARY COMPLIANCE Pursuant to the provisions of Chapter 501, Part II, Florida Statutes, the OFFICE OF THE ATTORNEY GENERAL has opened an investigation into the sale of essential water extraction and mold remediation services by SOUTHEAST RESTORATION, INC. d/b/a AFTERDISASTER in FLORIDA (AFTERDISASTER) in connection with the sale of those services to Florida consumers during a declared state of emergency. This Assurance of Voluntary Compliance (AVC) is solely intended to resolve the investigation against Afterdisaster. Afterdisaster enters into this AVC without any admission of liability and for the purpose of the resolution of this matter only. The Office of the Attorney General, by the signature of his Deputy affixed hereto, does in this matter accept this AVC in termination of its investigation, pursuant to Section 501.207(6), Florida Statutes, and by virtue of the authority vested in the Office of the Attorney General by said statute. 1
INJUNCTIVE TERMS 1. Without admitting liability, Afterdisaster agrees that it will refrain from violating the following acts and practices: a) Price-gouging during a declared state of emergency, as that term is defined in Section 501.160(3), Florida Statutes (2004); more specifically, Afterdisaster agrees to sell any essential commodity, including its provision of water extraction and/or mold remediation services, only at the same price found in the local market area within the 30 days preceding the date of the declaration of the state of emergency or at the same price determined by the Xactimate Price List, an industry pricing guide, for the local market area. For all prices not itemized in Xactimate, Afterdisaster agrees to provide its prospective customers, before the provision of services, its prices for those non-itemized services as it will invoice for those services. Afterdisaster further agrees, before the provision of services, to obtain from the prospective customer, a written affirmative consent indicating the customer's acceptance of the prices not itemized in Xactimate. MONETARY TERMS Consumer Restitution 2. Afterdisaster has, to date, refunded to consumers for whom it has performed water extraction services the sum of $19,000.00 (nineteen thousand dollars and no cents). Afterdisaster has agreed to accept a reduced payment for services provided to other Florida consumers. Where appropriate, Afterdisaster has executed settlement agreements with consumers that are satisfactory to those consumers. 2
Settlement Funds 3. Afterdisaster shall pay to the Attorney General the sum of Forty Thousand Dollars ($40,000.00) for attorney s fees and costs of this investigation, made payable to the Legal Affairs Revolving Trust Fund and sent to Will Haselden, Assistant Attorney General, Office of the Attorney General, Department of Legal Affairs, PL-01, The Capitol, Tallahassee, Florida 32399-1050, pursuant to Section 501.2101, Florida Statutes. FUTURE VIOLATIONS 4. In consideration for the fulfillment of the injunctive and monetary obligations set forth above, no penalties are to be imposed under this AVC. However, the Attorney General reserves the right to seek penalties under Chapter 501, Part II, Florida Statutes for any future violations of the injunctive terms contained within this agreement. Additionally, the Attorney General reserves the right to seek attorney s fees and costs in the event of any future non-compliance. Finally, pursuant to Section 501.207, Florida Statutes, a violation of this AVC is prima facie evidence of a violation of the Florida Deceptive and Unfair Trade Practices Act, Section 501, Part II, Florida Statutes. APPLICABILITY 5. This AVC shall apply to and bind Afterdisaster s officers, directors, employees, agents, representatives, independent contractors, successors and assigns. 6. Afterdisaster shall be responsible for making the substantive terms and conditions of this Assurance known to Afterdisaster s officers, directors, 3
employees, agents, representatives, independent contractors, successors, and assigns. ACCEPTANCE 7. Upon receipt of the executed AVC and accompanying Settlement Funds, Will Haselden will sign the AVC and then forward it to the Deputy Attorney General, together with the Settlement Funds. The Deputy Attorney General has final authority to approve or disapprove of the entry of the AVC. Should the Deputy Attorney General or his authorized designee decline to authorize and execute this AVC, the Settlement Funds will be promptly returned. This AVC shall become effective upon its acceptance by the Deputy Attorney General, who may refuse to accept it at his discretion. The receipt or deposit by the Deputy Attorney General of any monies pursuant to the AVC does not constitute acceptance by the Department, and any monies received will be returned if the AVC is not accepted. 8. Upon the execution of this AVC by the parties, payment of the amounts specified in paragraphs 2 & 3, above, and subject to Afterdisaster s full compliance with the terms of the AVC, the Office of the Attorney General shall terminate its investigation and shall not pursue any further investigation of Afterdisaster regarding claims of price-gouging up to the date of the execution of this AVC. IN WITNESS WHEREOF, Afterdisaster has caused this Agreement to be executed by 4
as, a duly authorized representative of Southeast Restoration, Inc., d/b/a Afterdisaster in Florida as a true act and deed, in County, North Carolina, this day of 2006. BY MY SIGNATURE I hereby affirm that I am acting in my capacity with Southeast Restoration, Inc., d/b/a Afterdisaster in Florida, and that by my signature I am binding said corporation to this Agreement. LEE KING STATE OF NORTH CAROLINA COUNTY OF ) BEFORE ME, this day of, 2006, an officer duly authorized to take acknowledgments in the State of North Carolina, personally appeared, who acknowledged before me that he executed the foregoing instrument for the purposes therein stated, on behalf of LEE KING. NOTARY PUBLIC (print, type or stamp commissioned name of Notary Public) Personally known or Produced Identification (check one) Type of Identification Produced: 5
FOR THE OFFICE OF THE ATTORNEY GENERAL ACCEPTED this day of 2006 WILL HASELDEN ASSISTANT ATTORNEY GENERL OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS The Capitol, PL-01 Tallahassee, Florida 32399-1050 850-414-3600 L.CLAYTON ROBERTS DEPUTY ATTORNEY GENERAL OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS The Capitol, PL-01 Tallahassee, Florida 32399-1050 850-245-0140 6
7