On December 11, 2024, a panel of three arbitrators awarded $2,759,607.35 against Terminix and in favor of Historic Church.
Starting in 1988, Terminix engaged in multiple termite protection agreements with the Christ Church Cathedral. Each agreement assured that Terminix would offer protection against subterranean termites and would repair or replace any new termite damage to the Cathedral occurring during the contract's duration. The Cathedral paid annual renewal fees to Terminix to continue these contracts, which were renewable each year, from 1988 until 2021.
Allied-Bruce, a licensee of Terminix, initially sold the Cathedral a contract for a Terminix liquid barrier, pledging to maintain the barrier free of charge throughout the contract's duration by applying additional treatments to keep it chemically active. When Terminix took over the contract from its licensee, it reaffirmed these commitments by soliciting and receiving annual renewal payments from the Church. However, during this process, Terminix had no basis to believe that the Church had received a treatment compliant with regulatory standards or the termiticide product's label, as there were no records of any treatment being applied. Despite this, Terminix did not administer any corrective or additional treatments to maintain the barrier's effectiveness, yet continued to assure the Church that it was adequately protected against subterranean termite infestations.
Then, in the early 2000s, rather than providing the promised additional treatments at no cost, Terminix persuaded the Church to buy a separate contract for the Terminix Baiting System. Terminix did not install or maintain the system in accordance with regulatory requirements or the product's label and labeling instructions.
Next, in 2007, following the termination of its relationship with the manufacturer of the Baiting System, Terminix persuaded the Church to allow the baiting system contract to expire and to purchase a new chemical barrier contract instead. Terminix assured the Church that it would provide a liquid barrier contract and maintain the barrier free of charge throughout the contract's duration by adding extra treatments to keep the barrier chemically active. Since termite prevention services are governed by state and federal laws, Terminix was legally required to deliver a label-compliant treatment. However, instead of applying an appropriate treatment, which would have needed around 2,500 gallons of termiticide to protect the Church from termites, Terminix dispatched a single worker to apply merely 100 gallons. Simply put, Terminix provided a fraudulent termite treatment and concealed this fact from the Church for years. Despite being aware that the Church lacked termite protection, it deceitfully convinced the Church each year thereafter to pay a substantial amount of money for fake termite protection services.
Due to Terminix's misconduct, the Church became infested with Formosan termites, and the infestation was allowed spread throughout the Church property, resulting in significant damage. Unable to resolve this dispute, the Church submitted their claims to binding arbitration against Terminix International and others. From October 14-18, 2024, Bill Reece of Satterwhite Reece Law Firm, LLC and Chris Cochran of Cochran Bowers PC presented the case against Terminix, which was represented by Haley Cox, Matthew Winne, and M. Christian King of Lightfoot Franklin & White LLC.
Following a thorough review of the evidence provided by the Church and Terminix regarding the damages the Cathedral suffered due to Terminix's wrongful actions, the arbitral panel issued its decision against Terminix and in favor of the Church for breach of contract and fraud.
If you believe you have been cheated or wronged by your Termite Prevention Company, contact Cochran Bowers PC for a FREE CONSULTATION at 205.460.1155 or by email at anichols@cochranbowers.com
termite damage attorneys, Mobile and Birmingham
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