Michigan AG takes legal action against West Michigan businesses and owner for alleged price-gouging tactics

Last Updated on January 7, 2024 by Robert C. Hoopes

Michigan Attorney General Dana Nessel has taken legal action against business owner David Foster and his companies, Michigan’s Choice Tree Service and Storm Support Emergency Tree Removal. The lawsuit, filed due to alleged illegal business practices, follows an investigation initiated in 2022 by the Attorney General’s office.

The investigation revealed that Michigan’s Choice Tree Service had been misleading customers about their legal rights and the nature of the agreements they were signing. The company was also accused of deceiving customers regarding the cost of services and their responsibility for any costs not covered by insurance.

In response to the investigation, the Attorney General’s office issued a notice of intended action to Foster and Michigan’s Choice. Subsequently, the parties entered into an assurance of voluntary compliance in February 2023. This agreement included requirements such as presenting written price quotes to consumers before commencing projects and adhering to the Michigan Consumer Protection Act.

Despite the previous agreement, it is alleged that Foster established a new company called Storm Support Emergency Tree Removal in Wyoming without completing the necessary legal paperwork to operate in Michigan. Moreover, Foster is believed to have continued the same illegal business practices under this new entity.

The lawsuit filed by the Michigan Attorney General’s office asserts that Foster and Storm Support use deceptive contracts and oral representations, leading to confusion surrounding the legal rights of consumers. Additionally, the lawsuit accuses Foster and his company of charging customers significantly more than the average rate for similar tree removal services.

Examples of alleged overcharging provided in the lawsuit include charges of $23,718 for the removal of three tree branches, $39,474 for the removal of a single tree that fell on a house, and $26,094 for the removal of another single tree.

Furthermore, the lawsuit claims that Foster and Storm Support violated the state’s Limited Liability Company Act by failing to file the necessary certificate of authority to conduct business in Michigan.

Foster and the LLCs implicated in the lawsuit have until January 25 to respond to the allegations, or they may face a default judgement. The outcome of this legal action will shed light on the consequences of deceptive business practices and ensure consumer protection in the tree service industry.