NEWARK
– A Superior Court judge today ordered
a South Jersey paving
company and six individual defendants to collectively
pay $285,744 in restitution to consumers and
$16.8 million in civil penalties to the state,
after finding that they violated consumer
fraud and home improvement contractor laws
and regulations. They also must reimburse
the state $134,707 for its legal and investigative
expenses.
On
April 21, 2010, Attorney General Paula T.
Dow and Division of Consumer Affairs Director
Thomas R. Calcagni filed suit in Burlington
County against Williams Asphalt Materials,
LLC, alleging it operated under the names
Williams Asphalt Paving, Williams Asphalt
Paving & Excavating, Williams Paving
& Excavating, Williams Paving, and Williams
Paving Asphalt Contracting, and sold and/or
performed substandard driveway paving and
then failed to honor workmanship warranties
to repair cracked and crumbling driveways.
The suit was later amended to include as
defendants Advanced Asphalt Services, Bertha
Williams, Henry R. Williams, Jr. (father),
Henry R. Williams, Jr. (son), Samuel Williams,
Saul Williams, and Alexander Stanley.
The
Division of Consumer Affairs identified
more than 1,600 violations of the state’s
Consumer Fraud Act and Contractors’
Registration Act and related regulations.
“Driveways
that should have lasted for years began
to disintegrate within months of being paved.
Consumers paid thousands of dollars but
did not receive the quality product they
expected and the warranties offered by the
defendants were worthless because they were
not honored,” Attorney General Dow
said. “The outcome of our lawsuit
sends a clear message to home improvement
contractors that they will be held accountable
when our consumer protections laws are violated.”
The
consumer contracts sold under the various
Williams business names listed Bertha Williams’
personal phone number and her property in
Browns Mills as the location of the businesses.
Williams Asphalt Materials owned an asphalt
plant in Millville, where equipment also
was stored.
In
addition to performing substandard work,
some of the defendants were not registered
as Home Improvement Contractors, as required
by state law. They are barred from working
in New Jersey until they become registered,
under the court’s Final Judgment by
Default and Order.
“Our
lawsuit makes clear that this was a unified
scheme, designed by the defendants to defraud
consumers. The slight variations on the
many assorted business names, and consumers
being told to write checks to different
individuals at different times, illustrate
the deceptive practices used by these defendants
to mislead the public,” Director Calcagni
said.
Company
personnel typically knocked on consumers’
doors, stating the company was doing paving
work in the neighborhood and could offer
the consumer a good deal because it had
leftover asphalt available. The paving work
was often completed and paid for that same
day.
The
Division’s investigation found that
the defendants engaged in unconscionable
commercial practices, made false statements
or misrepresentations, knowingly omitted
material facts, and engaged in “bait-and-switch”
pricing. The unconscionable commercial practices
included performing paving work of poor
or sub-standard quality and then failing
to make the necessary repairs and failing
to honor guarantees or warranties provided
in a consumer’s home improvement contract.
The
misrepresentations included representing
to consumers that the asphalt to be used
in paving work was of a certain thickness
(e.g., 2½”) and then laying
asphalt that was measurably thinner (e.g.,
less than 1"), and representing to
consumers that the products or materials
to be used in the paving work were sufficient
to withstand the weight and traction of
motor vehicles, when such was not the case.
“This
case highlights the need for homeowners
to take the time to research a Home Improvement
Contractor before hiring one,” Director
Calcagni added. “Consumers should
always check with the Division to ensure
a Home Improvement Contractor is registered
annually as we require. We also encourage
consumers to obtain multiple bids and to
get and review references from previous
customers before signing a contract.”
Calcagni
noted that an online database of Home Improvement
Contractors, and all businesses and individuals
licensed or registered by the Division of
Consumer Affairs, can be found at www.njconsumeraffairs.gov/LVinfo.htm.
A free mobile application for Apple users
also is available for download here: New
Jersey Professional License Lookup App
.
Deputy
Attorney General Nicholas Kant of the Consumer
Fraud Prosecution Section represented the
Division in this case. Senior Investigator
Katrina Eberly of the Burlington County
Office of Consumer Affairs and investigators
in the Division's Office of Consumer Protection
investigated this matter.