Fuqua Homes faces complaints

Published 4:00 am Thursday, December 15, 2011

Fuqua Homes Inc., a modular and manufactured homebuilder and retailer with a factory in northeast Bend, is facing lawsuits and complaints to the state Department of Justice about money it owes homebuyers.

In the past two years, Oregonians and others have not been able to recoup money they put down for homes they ordered through the factory off Boyd Acres Road in Bend or at a facility in Coburg but never received.

Claimed losses include full payments for homes upward of $100,000.

Some people told the Department of Justice the company was not responding to complaints about the homes Fuqua delivered, such as flooding, wall cracks and damaged roof vents.

One person wrote in a complaint that Fuqua never gave her the $500 referral fee an employee promised her for directing a homebuyer to Fuqua.

The state Department of Consumer and Business Services will announce an enforcement action against Fuqua today, spokeswoman Melanie Mesaros said.

Mike Swantko, general manager of Fuqua Homes Design Center, the retail department of the company, declined to comment on the complaints and suits.

Swantko referred questions to Phil Daniels, the president of the parent company, Fuqua Management LP, based in Arlington, Texas. Daniels did not respond to requests for comment.

In November, Swantko told The Bulletin that most employees at the Bend plant had been laid off in April or May. At one point, 330 employees worked there. By February 2010, about 50 were left.

Swantko said in November that Fuqua was refocusing and would be bringing in new inventory. On Tuesday, he said the situation had not yet changed.

18 complaints in 2 years

The Department of Justice has received 18 consumer complaints in the past two years from about Fuqua.

One customer and his mother paid Fuqua nearly $137,000, according to a letter a Eugene attorney sent to Attorney General John Kroger.

In July or August, Fuqua employees told the customer, Bradley Guile, that they would be “unable or unwilling” to deliver the manufactured home Guile had ordered, the letter states.

The company sent Guile a mutual rescission agreement stating that it would refund the money he and his mother had paid.

Guile tried to contact Fuqua employees many times but was unable to get his and his mother’s money back, the letter states.

In October, Guile and his lawyer, George Derr, of Eugene, filed a complaint against Fuqua in the Lane County Circuit Court in Eugene.

At least three lawsuits filed against Fuqua are open in Deschutes County Circuit Court. Others are open in Clackamas and Tillamook counties.

According to the original complaint for one suit in Deschutes County Circuit Court, Alps Credit Union, based in Sitka, Alaska, bought five manufactured homes from Fuqua in 2009, but Fuqua has refused to deliver the homes.

The complaint, filed earlier this month, puts the five homes’ current market value at $735,000 and states that the homes have sustained $150,000 in damages while Fuqua has possessed them.

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