Attorney General's News Release

December 29, 2004

Nixon sues Cole Camp business; says owners reneged on contracts to deliver propane, fertilizer to rural customers

Warsaw, Mo. — Attorney General Jay Nixon is suing a Cole Camp couple and their farm-supply business after consumers complained about not receiving propane or fertilizers from the business as contracted. Because Heartland Farm Services Inc. didn't deliver the products as promised, Nixon says, some rural consumers who signed contracts for propane at lower summer rates were forced to pay winter heating season rates for the fuel.

Nixon is seeking a temporary restraining order from the Benton County Circuit Court against Heartland Farm Services and owners Raelene Bain and Robert Bain. Most of the complaints came from consumers in central and southern Missouri.

According to the lawsuit, the defendants charged consumers a non-refundable fee of up to $3,500 to set up a "trade and business account" with Heartland. Consumers with such accounts were guaranteed a minimum 10 percent savings over retail prices. Heartland agreed in contracts to supply propane in installment deliveries; the buyer paid a deposit up front, and then was to pay the balance for each installment as it was delivered.

"Consumers complained to us that Heartland reneged on its contracts by making only one or two deliveries, then refusing to deliver any more unless the customer paid in full for all future installments as well," Nixon says. "This puts the consumers in a bad situation, because they paid the nonrefundable fee so they could get lower propane prices during the winter. Heartland's reversal means they had to either pay the entire amount up front before delivery to obtain the cheaper rate, or pay the much higher winter rates on the open market."

Nixon said another consumer complained to the Attorney General's Office after paying the defendants more than $879,000 for various fertilizers. Heartland delivered a portion of the order, but the defendants have failed or refused to deliver approximately $337,500 worth of goods still owed to the consumer.

The lawsuit asks the court to issue preliminary and permanent injunctions against the Bains and Heartland to stop further violations of Missouri consumer protection laws. Nixon also wants the court to order the defendants to pay appropriate penalties to the state and restitution to consumers harmed by their actions.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818