Judge grants injunction against Dogwood Homes

Judge J. Miles Sweeney issued a preliminary injunction Sept. 4 at the request of Missouri Attorney General Jay Nixon, who has been targeting Dogwood’s practices since earlier this year. The order is against Michael Jackson, who does business as Dogwood Homes, and Kay Jackson, who works for the business.

Under the injunction, the defendants will refund three customers who each paid $44,925, $36,000 and $30,000, for manufactured homes they never received, according to a news release from Nixon’s office.

The Jacksons also are required to acquire and maintain a performance bond of at least $300,000 before continuing business, and they must present a copy of the injunction to any customer or company they do business with in the future.

Nixon first filed a lawsuit against the defendants in April, alleging they accepted payment for a modular home that they failed to deliver by the promised date, and that they did not refund a Wisconsin man’s $500 down payment. As part of that order, Dogwood delivered the home and refunded the man’s down payment.

Other complaints filed with Nixon’s office include Dogwood’s allegedly false promise to pay sales tax on a home sold to a customer, its failure to deliver titles to homes that were purchased, and its failure to complete the promised setup of purchased homes, according to the release.

State law limited the amount of refunds Nixon could request at this point in the proceedings. The release said he will seek total restitution for all customers who have lost money at a later date.

This story originally appeared in SBJ’s Sept. 5 free e-news Daily Update. Click here to register.