HARRISBURG – Attorney General Dave Sunday today announced a settlement with Gillece Services, LP, Gillece Plumbing and Heating, Inc., Thomas Gillece Sr., Thomas Gillece Jr., and two former Gillece technicians, resolving allegations that these defendants misled Pennsylvania consumers into paying for unnecessary home improvement work (particularly, sewer pipe replacements) and engaged in scare tactics, amongst other allegations.
The settlement, in the form of a Consent Order, consists of $700,000 in consumer restitution, $50,000 in costs, and $250,000 in suspended civil penalties. The Consent Order was filed in the Allegheny County Court of Common Pleas.
“Gillece pressured consumers to undergo expensive home repair work that was oftentimes unnecessary,” Attorney General Sunday said. “Gillece advertised specials that they knew they would not honor, leaving consumers on the hook for work they did not want or need. This settlement would not have been possible without the assistance of the consumers who brought this issue to the attention of the Office of Attorney General.”
The lawsuit filed by the Office of Attorney General alleged that Gillece lured consumers experiencing sewer back-ups through the “$93 or Free Clog Crusher Special.” While the offer promised to “crush” consumers’ sewer clogs for $93 or the service would be free, once the Gillece technicians arrived at consumers’ homes, many consumers were told that their clogs could not be cleared using a snake but could only be cleared through costly excavation work. The lawsuit alleged that the excavation work was unnecessary and that the sewer lines could, in fact, have been cleared without digging up their properties. Many consumers were allegedly told that their sewer pipes had physical defects requiring replacement and later discovered that such defects did not exist.
The lawsuit also alleged that Gillece engaged in scare tactics in attempting to get consumers to sign home improvement contracts, such as telling consumers that they had gas leaks or cracked heat exchangers – diagnoses that were later discredited by third parties, including the consumers’ natural gas utility companies. The lawsuit also alleged that Gillece’s work was often shoddy and inconsistent with its written warranties and that Gillece, at times, failed to provide consumers with copies of their contracts and notices of cancellation at the time of sale, as required by law. The lawsuit contained other allegations that were ruled on in the Office’s favor on summary judgment, including that Gillece: 1) failed to permit consumers to cancel home improvement contracts within three days and penalized consumers who cancelled by entering their properties without their permission; 2) made false or misleading advertising claims and offers; and 3) made misrepresentations to consumers about their flat-rate pricing.
Under the settlement, Gillece has agreed to injunctive terms to address their allegedly deceptive practices, including, but not limited to:
- Robust certification of Gillece’s plumbing and HVAC technicians. Specifically, any Gillece technician selling sewer excavation work or hydro jets must be certified in the Lateral Assessment Certification Program offered by the National Association of Sewer Service Companies (NASSCO).
- Gillece must document the defects that serve as the basis of their recommendation to repair or replace sewer pipes, and those defects must arise to a certain level of severity under NASSCO’s defect standards.
- In the event Gillece cannot open a sewer line and documents defects, Gillece must make multiple attempts to get the line opened using a snake and advise consumers of their option to seek a second opinion to confirm whether additional work is necessary to open the line.
- Gillece’s HVAC technicians must be certified by North American Technician Excellence (NATE) and utilize only carbon monoxide detectors/meters that are calibrated by the manufacturer in accordance with the manufacturer’s recommended schedule.
- Any diagnosis by Gillece of a gas leak must generally be confirmed by the consumer’s natural gas provider prior to Gillece selling such consumers any work to repair the leak.
- Any diagnosis by Gillece of a cracked heat exchanger or other dangerous condition must be confirmed by two of Gillece’s NATE-certified technicians.
- Gillece must create and maintain detailed records documenting the defects and/or conditions supporting their recommendations for certain repairs or replacements and provide the Office with such documentation upon request.
Additionally, under the terms of the Consent Order, Gillece must: 1) perform their work in a workmanlike manner, consistent with their written warranties; 2) provide all consumers with copies of their contracts and notices of cancellation at the time of signing; 3) refrain from making advertising claims they know they cannot or will not honor; and 4) include in any non-disclosure or confidentiality agreements an express exception for providing information to law enforcement.
This new injunctive relief set forth in the Consent Order is in addition to the injunctive relief obtained by the Office of Attorney General on summary judgment in August 2023, when Allegheny County Court of Common Pleas entered findings that Gillece has violated numerous Pennsylvania consumer protection laws. The injunctive relief entered on summary judgement remains in effect and requires Gillece to honor consumers’ verbal requests to cancel their home improvement contracts and cease and desist from making false or misleading advertising statements and misrepresentations about their flat-rate pricing.
The settlement also bans the two former Gillece technicians named as defendants, James F. Hackwelder and Joseph A. Nikoula, from the plumbing industry for a period of five years.
Consumers who are eligible to obtain restitution as part of this settlement will be contacted by the Office of Attorney General and do not need to take any action.
This case was litigated by Assistant Chief Deputy Attorney General Jill T. Ambrose.
A settlement agreement shall not be considered as an admission of violation of the law.
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