(Washington, DC – District of Columbia Attorney General Robert J. Spagnoletti today announced a Court Order which will protect consumers who use a moving and storage business operated by Melvin Yates.
The District of Columbia obtained a permanent injunction, civil penalties and costs against Yates as a result of a suit brought by the District against Yates in 2002. Yates owned the moving and storage business, MY Enterprises, aka University Moving and Storage.
The District claimed Yates and his company lured consumers into contracts with low estimates that they subsequently failed to honor and then held consumers’ goods hostage if they didn’t pay the increased charges. Yates was also accused of failing to compensate consumers when the moving company lost or damaged consumers’ goods.
During the District’s protracted litigation against Yates, he closed down University Moving and Storage, and opened up WorldWide Moving and Storage -- a business he currently manages. The lawsuit ended in a jury verdict in favor of the District, finding that Yates was personally liable for 14 violations of the District’s consumer protection law.
DC Superior Court Judge James E. Boasberg has mandated that in order to continue to operate the moving company, Yates must obtain a surety bond in the amount of $75,000.00 to be used to compensate consumers who are harmed by misleading or deceptive practices by his moving company. The Court also ordered that Mr. Yates’ moving company must provide additional disclosures to DC consumers that would clarify moving charges, and the coverage that consumers have for loss and damage claims. Furthermore, Mr. Yates must provide monthly reports to the Attorney General’s Office for the next five years.
“We are very pleased with the Court’s decision to take strong action to protect consumers,” said Attorney General Spagnoletti. “The jury found Mr. Yates liable for his company’s deceptive practices, and the Court has responded with strong injunctive relief. Under the Court’s order, Mr. Yates will be required to operate his business in accordance with the District’s consumer protection law. And if he doesn’t, the bond requirement should help ensure that funds are available to compensate victims. ”
Consumers who have had a problem with a business in the District of Columbia can call the Attorney General’s Consumer Protection Hotline at 202-442-9828. Consumers may also find consumer education information and an online complaint form at www.oag.dc.gov.