Missouri AG Nixon Obtains Injunction Against Dogwood Homes

Manufactured homes dealer must pay $110,925 in refunds

September 4, 2007 -- Springfield, Mo. — A Springfield manufactured homes dealer has been ordered to refund $110,925 to consumers after accepting payment from customers for homes but failing to deliver them as promised under an amended preliminary injunction obtained today by Missouri Attorney General Jay Nixon. Today’s court order in Green County Circuit Court is against Michael Jackson, who does business as Dogwood Homes, and Kay Jackson, who works for the business.

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 burned down, and then failed to meet promised delivery dates. The lawsuit also cited a Wisconsin man 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.

After receiving new consumer complaints against the defendants, Nixon filed an amended petition on August 16. Those complaints included three consumers who paid the Jacksons $44,925, $36,000 and $30,000 respectively to deliver manufactured homes, but never received the homes. Nixon’s office has also received complaints about Dogwood that allege false promises 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.

In addition to the payment of $110,925 in consumer restitution, today’s preliminary injunction, issued by Judge J. Miles Sweeny, prohibits the defendants from continuing to violate Missouri’s consumer protection laws. The order also requires the defendants to acquire and maintain a performance bond of at least $300,000 before engaging in any advertisement and sale of manufactured homes in the future, and to present a copy of the preliminary injunction to any consumer or business with whom they do business with in the future.

Missouri law limited the amount of the refunds that could be requested at this point in the proceedings. At trial, Nixon will be seeking total restitution for all consumers who have lost money due to Dogwood’s unlawful practices.

Source: Missouri Attorney General

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