National Property Restoration Company Overcharges By Almost Quadruple, Class Action Claims

A property restoration company that specializes in disaster recovery has been overcharging customers by up to four times for equipment it uses to restore people’s properties, a new nationwide class action lawsuit alleges.

In a class action filed Monday in the Eastern District of Michigan, Plaintiff Hatcher Investments takes aim at Belfor Property Restoration, a company it says has more than 100 full service offices in the United States. 

Hatcher Investments says Belfor has violated the law in its dealings with customers across the country who have suffered property loss and damage since 2016.

“Even though its customers’ homes and businesses have been destroyed by devastating losses, Defendant overcharges them – up to three to four times more than it pays – for equipment rentals it uses to restore their property,” the class action states.

Hatcher Investments, the owner of a building in downtown Liberty, Missouri, says its building was partially destroyed and business devastated when a neighboring building collapsed in 2016.

It contracted Belfor to provide all labor, equipment and materials that were required to properly repair the building, including the rental of interior shoring equipment from an equipment contractor.

Hatcher Investments says it later discovered that Belfor rented the shoring equipment for $3,125 per month, but turned around and billed it for $9,500 per month for it.

“In addition, Defendant charged Plaintiff ‘profit and overhead’ for a cumulative amount of 20% of the shoring equipment rental, meaning Defendant billed Plaintiff a combined $11,400.00 per month for use of the equipment – nearly four times the amount that Defendant paid for it.” 

The class action says there is reason to believe Belfor charged all its customers this way for equipment rentals. 

“Although Defendant claims that its culture is built upon integrity, loyalty, and commitment… it has a practice of overcharging its customers for the equipment rentals that it uses to restore their property,” the claim states.

The class action is seeking to represent a nationwide Class of people and entities that were invoiced for equipment rentals by Belfor on or after May 3, 2016. It also seeks to represent a Missouri Subclass. 

The class action is brought for breach of contract, breach of fair dealing, unjust enrichment, and fraudulent nondisclosure, and is seeking damages, fees, costs, injunction and a jury trial. 

“Defendant’s pattern and practice of significantly upcharging equipment rentals runs afoul of industry standards,” the class action states.

Meanwhile, another property company is facing class action in Washington, where allegedly shoddily constructed homes were unable to weather a storm. In that case, LGI Homes violated the Consumer Protection Act, the class action alleges, building poor-quality houses throughout the Enumclaw neighborhood.

The plaintiff is represented by Adam G. Taub of Adam G. Taub & Associates Consumer Law Group, PLC, Jack D. McInnes of Mcinnes Law LLC and A. Scott Waddell of Waddell Law Firm LLC 

The Belfor Contractor Overcharging Class Action Lawsuit is Hatcher Investments et al., v. Belfor Property Restoration, Case No. 2:21-cv-11005-SJM-APP, in the U.S. District Court Eastern District of Michigan.

Read About More Class Action Lawsuits & Class Action Settlements:

• Do You Qualify: Florida Tenant Rights | Security Deposit Recovery Lawsuit Claim Review
• ‘Nightmare’ Movers Demanded Ransoms for Customers’ Property, Holocaust Heirlooms, Class Action Claims
• California Wildfire 2020: Property Damage Lawsuit Investigation
• Liberty Insurance Homeowners Nonmaterial Depreciation Class Action Settlement