Division of Consumer Affairs


Formal Action #2308

IN THE CHANCERY COURT FOR WARREN COUNTY, TENNESSEE

THIRTY-FIRST JUDICIAL DISTRICT AT MCMINNVILLE


STATE OF TENNESSEE,
Plaintiff,

v.


AMERICAN CEMETERIES, INC., an
administratively dissolved Corporation,
doing business as GARDENS OF MEMORY
CEMETERY in Smartt, Tennessee,
CEMETERY SERVICES, INC., an
administratively dissolved Corporation doing
business as Meadowlawn Cemetery in
Columbia, Tennessee, ALEX T. OWEN,
individually and doing business as American
Cemeteries, Inc., Cemetery Services, Inc.,
Gardens of Memory Cemetery, and
Meadowlawn Cemetery, CARL KETCHUM,
individually and doing business as American
Cemeteries, Inc., Cemetery Services, Inc.,
Gardens of Memory Cemetery, and
Meadowlawn Cemetery, and JOHN
WHEATLEY, individually and doing business
in active concert and participation with
Alex T. Owen and Carl Ketchum, in their
various above-named individual and
representative capacities,

Defendants.



MOTION FOR TEMPORARY INJUNCTION



The State of Tennessee, by and through the Attorney General and Reporter, Charles W. Burson, on behalf of and at the request of the Division of Consumer Affairs of the Department of Commerce and Insurance, moves this Honorable Court, pursuant to Tenn. Code Ann. § 47­18­108(a) of the Tennessee Consumer Protection Act, Tenn. Code Ann. § 47­18­101, et seq. ("the Act"), for a statutory injunction temporarily enjoining the Defendants, American Cemeteries, Inc., Cemetery Services, Inc., their officers, directors, employees, agents, successors and assigns, and other persons in active concert or participation with the corporate Defendants who receive actual notice of this temporary injunction, and Alex T. Owen, Carl Ketchum, and John Wheatley, individually, and doing business as Gardens of Memory Cemetery in Smartt, Tennessee and Meadowlawn Cemetery in Columbia, Tennessee, from engaging, directly or indirectly, in conduct which is unfair or deceptive to consumers, including, but not limited to, the following:

(a) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits or quantities that they do not have or that a person has a sponsorship approval, status, affiliation or connection that such person does not have (Tenn. Code Ann. §47­18­104(b)(5));

(b) Representing that a consumer transaction confers or involves rights, remedies or obligations that it does not have or involve or which are prohibited by law; (Tenn. Code Ann. §47­18­104(b)(12));

(c) Causing confusion or misunderstanding with respect to the authority of a salesperson, representative or agent to negotiate the final terms of a consumer transaction; (Tenn. Code Ann. §47­18­104(b)(14)); and

(d) Engaging in other acts or practices which are deceptive to the consumer or to other persons.

Specifically, the Court should temporarily order the following:

(1) Defendants shall not engage in any unfair or deceptive acts or practices in the conduct of its business and shall fully comply with all applicable provisions of the Tennessee Consumer Protection Act of 1977, Tenn. Code Ann. §§ 47­18­101, et seq.

(2) Defendants shall not, directly or indirectly, represent, state, promote, advertise, claim or imply that Defendants can provide or deliver goods or services within a certain period of time, if such is not the case.

(3) Defendants shall provide a copy of the attached notice to all persons prior to executing any agreement for the purchase of goods or services from the Defendants. Defendants also shall abide by all the terms set forth in the notice. Defendant agrees that any sale of goods or services where Defendants do not provide a copy of this notice to consumers is null, void and unenforceable, at the consumer's election.

(4) Defendants shall not, directly or indirectly, represent, state, promote, advertise, or otherwise offer for purchase goods or services, if Defendants cannot deliver the goods or services in a timely fashion.

(5) Defendants shall not, directly or indirectly, represent, state, promote, advertise or claim that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits or quantities that they do not have.

(6) Defendants shall not, directly or indirectly, represent, state, promote, advertise or claim that goods or services are of a particular standard, quality or grade, if they are of another.

(7) Defendants shall not, directly or indirectly, represent, state, promote, advertise or claim that a consumer transaction confers or involves rights, remedies or obligations that it does not have or involve or which are prohibited by law.

(8) Defendants shall not, directly or indirectly, cause confusion or misunderstanding with respect to the authority of a salesperson, representative or agent to negotiate the terms of a consumer transaction.

(9) Defendants shall be required to maintain its cemeteries so as to reflect respect for the memory of the dead in keeping with the reasonable sensibilities of survivors of those whose remains are interred in Defendants' cemeteries.

(10) Defendants shall not, directly or indirectly, represent, state, promote, advertise or claim that a consumer's transaction will be financed at a certain interest rate and then (a) charge a consumer a higher interest rate or; (b) sell the rights to collect for a higher interest rate.

(11) Defendants shall fully comply with the Tennessee Home Solicitation Act of 1974, Tenn. Code Ann. 47-18-701, et seq.

(12) Defendants shall fully comply with Truth in Lending laws.

(13) Defendants shall not, directly or indirectly, sell or otherwise offer for purchase goods such as but not limited to, monuments, bronze plaques, scroll lettering, cornerstones, if Defendants cannot provide said goods within fifty (50) days of full payment for such goods. If it appears that the Defendants cannot meet this deadline because the goods have not been delivered from the manufacturer, this deadline can be extended by agreement of the parties if the goods were ordered within three (3) days of full payment for such goods.

(14) Defendants shall not, directly or indirectly, represent, state, claim or imply that a good or service will be received, provided, or delivered if such is not the case.

(15) Defendants shall not, directly or indirectly, represent, state, claim, advertise, promote or imply that a consumer will be receiving a refund or that a good or service will be received or provided, if such is not the case.

(16) Defendants shall not, directly or indirectly, represent, state, claim, advertise, promote or imply that a consumer will receive goods or services before completing full payment of any installment payment agreement, if such is not the case.

(17) Defendants shall respond in writing to all consumer complaints or inquiries within ten (10) days of receipt of a consumer complaint or inquiry.

(18) Immediately upon request, Defendants shall provide a consumer with proof that any goods or services have been ordered and paid for by the Defendants. Such proof shall include the date of the order, the name, address and telephone number of the company that the order has been placed with, the expected delivery date, and that the account is paid in full.

(19) Defendants shall make and retain contemporaneous records of all consumer complaints or inquiries made orally or by telephone.

(20) Defendants shall retain all written material containing consumer complaints or inquiries.

(21) Defendants shall maintain appropriate records verifying the location of all graves. Within 3 months of entry of this Order, if Defendants do not have records and appropriate substantiation for graves sold or prepared in the past, Defendants shall have an independent audit conducted at their expense to update their records and prepare a complete plat containing the name of each person who owns or is buried in each burial site for each cemetery.

(22) Defendants shall provide a receipt to any consumer paying for goods or services in cash and shall maintain records reflecting the cash payment and the corresponding order.

(23) When offering burial spaces or related goods or services for sale, Defendants shall not, directly or indirectly, represent, state, promote or advertise a "merchandise trust" or term or phrase of similar import, unless Defendants maintain the improvement care trust fund account fully funded as required by state law and as represented.

(24) When offering burial spaces or related goods or services for sale, Defendants shall not, directly or indirectly, represent, state, promote or advertise "perpetual care", "endowment care" or an "irrevocable trust"to fund such perpetual care, or term of phrase of similar import, unless Defendants maintain the improvement care trust fund account fully funded as required by state law and as represented.

(25) Defendants shall not, directly or indirectly, limit the damages or recovery to which consumers may be entitled under Tennessee law.

(26) Defendants shall fully comply with all orders and obligations issued in State of Tennessee v. American Cemetery, Inc., d/b/a Gardens of Memory, Davidson County Chancery Court, No. 6090.

(27) Defendants shall maintain a valid registration certificate from the Tennessee Burial Services/Cemetery Board as required by the laws and regulations of the State of Tennessee.

(28) Defendants shall continue to file all documents required by State laws and regulations in order to continue business operation in good standing with the State Burial Services/Cemetery Board.

(29) Defendants shall fully comply with Tenn. Code Ann. § 47-18-120, when offering any goods or services by promoting a prize, gift and award offering. Without limiting the scope of this section, Defendants are specifically required to clearly and conspicuously disclose all conditions, restrictions or limitations on any offering of a "buy one get one free" burial space offering and the verifiable retail value of the burial spaces.

(30) Without approval of this Court, Defendant shall not sell, convert, transfer ownership of or otherwise dispose of cemetery assets, including but not limited to, equipment and land.

(31) Defendants shall fully deliver the goods and/or services contained in the list attached to the Agreed Temporary Injunction Order within forty-five (45) days of entry of that Order.

The State's Motion should be granted because the Defendants have engaged in unfair or deceptive acts or practices in violation of the Act. In support of this Motion, the State relies upon the verified Complaint filed against the Defendants, the Memorandum in Support of Motion for Temporary Injunction, and the exhibits filed simultaneously herewith.

THIS IS THE STATE'S FIRST REQUEST FOR EXTRAORDINARY RELIEF.