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After receiving a copy of Terminix's second pest inspection report, we heard nothing further until our attorney sent us a copy of a letter he received from Terminix, dated June 3, 1992. Nothing in Terminix's letter offered to fix any of the damages or to accept our offer to mediate -- even though our offer was for less than half the amount it would cost us to repair the damages Terminix had originally failed to report.
In their letter, Terminix acknowledged reviewing the Parish report, the two Terminix reports, and the proposal for roofing repairs submitted by Big Valley Roofing. However, they requested copies of any appraisals done on the property; FHA/VA inspection reports; roofing inspections and/or certifications; Wood Destroying Organism Inspection Reports; and "copies of 'Earnest Money Agreement' and/or other offers from your clients to purchase the property" in order to "better evaluate Terminix's position regarding your clients claim."
None of the documents Terminix requested that we hadn’t already provided had any relevance to the fact that they issued a clear report and then a subsequent report replete with findings and recommendations. It appeared Terminix was stalling so the one-year statute of limitations to file a civil suit would expire.
We believed beyond any doubt that we had been the victims of real estate and consumer fraud; and with the vast amount of evidence we had, we honestly believed Terminix and the real estate agents/brokers would at least negotiate a settlement. They ignored the issues. We finally found an attorney who agreed to take the case; and on June 25, 1992, our Complaint for Breach of Contract; Rescission; Action on a Bond; Intentional Misrepresentation and Negligence, Case 50646, was filed in Sutter County Superior Court against the seller, Terminix, and the two real estate agents/brokers and their agencies.
The seller, Dennis Ferrauiolo, was discharged in bankruptcy court; and even though he could not be held liable, repeated efforts to subpoena him for depositioning were futile. He had given his parents' address as his address on the bankruptcy papers, but his parents stated they didn't know where he was or how to get in touch with him. Perhaps they were afraid his testimony might hurt his agent/broker -- his mother’s friend for years.
Terminix and the real estate agents/brokers did not settle. Backed by insurance company money, their attorneys combined forces and ran up legal expenses. Terminix's attorneys knew David Honey's pest inspection report could not be introduced as evidence without him and that we would be required to pay all of Mr. Honey's expenses to bring him back for his deposition and again for the trial. Terminix transferred Mr. Honey to Hawaii.
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