LITTLE ROCK, Ark. – Arkansas Attorney General Tim Griffin announced Monday that his office was filing a lawsuit against a tree service company for price gouging during disaster cleanup.
Griffin said Capitol City Tree Service LLC acted illegally during the 2023 and 2024 storm clean ups in the state by overcharging. He said company owners and operators Charles Shaw, Janet Shaw and Matthew Shaw were charging over $20,000 for the removal of a single tree and, in one case, charged $35,948.
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Officials said Capitol City billed Arkansas communities over $450,000 for tree removal in April 2023.
Griffin explained how the company worked to circumvent price-gouging laws.
“Arkansas law prohibits an increase in price of more than 10% during times of emergency,” Griffin said. “To attempt to circumvent this price-gouging prohibition, Capital City Tree Service insisted that consumers sign contracts requiring an eight-hour minimum, even though most jobs took less than four hours to complete.”
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The attorney general continued that Capitol City billed well over its estimates.
“Additionally, the company failed to provide consumers estimates of the total price of the equipment needed, and in the few instances where estimates were provided, they were substantially lower than the final invoiced amount,” Griffin said. “Capital City Tree Service routinely rushed consumers through the contract on a tablet or phone and failed to provide them sufficient time before executing the agreement.”
Griffin added that many of the consumers harmed by Capitol City were over 60. He continued that the service was dishonest in its estimate to customers by telling them only the insurance company would be billed.
“But Capital City Tree Service refused to work with any consumer’s insurance company and demanded full payment of its inflated invoice,” Griffin said. “If payment was not received, the company filed a lien on the consumer’s house, and in at least one instance, asked a consumer to sign over the deed to his house.”
The lawsuit seeks full consumer restitution, injunctive relief against Capital City Tree Service, and penalties for violating the Arkansas Deceptive Trade Practices Act.
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Consumers who believe they may be a Capital City Tree Service victim can file a consumer complaint with the Office of the Attorney General by calling 501-682-2007, emailing Consumer@arkansasag.gov, or by visiting ArkansasAG.gov/file-a-complaint.
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