Attorney General's News Release

August 16, 2007

New consumer complaints about Dogwood Homes’ business practices spark additional charges by Nixon

Springfield, Mo. — Attorney General Jay Nixon has filed an amended petition against the owner and an employee of a Springfield manufactured homes dealer in the wake of new consumer complaints about the company’s fraudulent business practices. Nixon’s amended lawsuit against Michael and Kay Jackson, who own and operate Dogwood Homes, is the second request for injunctions made this year against the company and also requests restitution for consumers, penalties and costs.

Nixon first filed a lawsuit in April against the defendants, alleging that Dogwood accepted thousands of dollars in payment to deliver a modular home to a consumer whose home had burned down, and then failed to meet promised delivery dates. The lawsuit also cited a man from Wisconsin who was promised a refund of $500 he had paid to Dogwood, but did not receive it. As part of a court order, Dogwood Homes delivered the home as promised to the first consumer and refunded the $500 down payment to the Wisconsin man.

Today’s amended petition, filed in Greene County Circuit Court, cites new consumer complaints against the defendants. Nixon says one consumer paid Dogwood $36,000 for a new home on or around March 16th of this year after the consumer’s home burned down. When the home the consumer contracted for with the defendants was not available, he executed a second contract with the defendants on April 6th for a different home, which had the same price. Despite the fact that the consumer’s contract with Dogwood has been paid the $36,000 in full, the consumer has yet to receive his home.

Nixon’s office has also received complaints about Dogwood that allege failure to pay sales tax on a home sold to a consumer, failure to deliver titles to homes purchased by consumers and failure to complete the promised set up of consumers’ homes.

“Unfortunately, the defendants did not get the message the first time around that their fraudulent practices that put consumers in a bind are completely unacceptable,” Nixon said. “Perhaps another trip to court will get their attention.”

Nixon’s lawsuit asks the court to issue preliminary and permanent injunctions against the defendants that prohibit them from continued violation of state consumer protection laws, including false advertising.

The lawsuit also requests injunctions against the defendants that require them to acquire and maintain performance bonds of at least $300,000 before engaging in any activity connected with the advertisement and sale of manufactured homes, and to present a copy of such injunctions to any consumer or business with whom the defendants come in contact with. Nixon is also asking that the court order the defendants to pay consumer restitution, appropriate penalties and all investigative, litigation and courts costs.

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