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Jury awards cleaner over $400K in damages
I.C. Smith, Jr. had believed for several
years that there was something funny in the water he used to
clean clothes at his cleaning plant in Fayetteville, NC.
Recently, a Cumberland County jury agreed
with Smith and awarded him $409,132 in damages from the
Fayetteville Public Works Commission.
Smith filed a lawsuit against the PWC last
year, citing that discolored water from his water line damaged
his drycleaning equipment and spotted clothing during the
cleaning process. According to the lawsuit, Smith had first
reported the problem over five years ago, but the utility
company didn’t fix it until last year.
Smith’s lawyer, Jim Goodman,
believed the repairs should have come much sooner.
“A municaplity that’s
operating a water utility has a duty to respond
promptly,” he said.
Making matters worse, Goodman noted, was
that the PWC responded to Smith’s original complaint by
flushing the wrong water line.
On two occasions, Smith was informed by
PWC employees that the equipment and clothing damage was caused
by his own equipment. Nevertheless, he continued to file
complaints about the problem and, in December of 2002, the PWC
sent its construction operations manager, Rick Davis, to
examine the cleaning facility.
In Smith’s deposition, he explained
that Davis cut a water line in the back of the business and
clear water streamed out for approximately five minutes.
However, then the clear liquid inexplicably turned dark and
rusty.
“If I had drank that, you could
stick me on the wall with a magnet,” Smith said in his
testimony.
It was eventually discovered that the line
running water to Smitty’s Cleaners was corroded. The
problem was solved when a newer line was installed.
Carolyn Hinson, a spokeswoman for the PWC,
said the utility company’s lawyers will review the
details of the case in order to decide if an appeal should be
filed.
“There’s always potential for
discolored water,” she told the Fayetteville Observer.
“You have these pipes underground. Over the course of
time, there is going to be some sediment in those lines and
that’s what some of that comes from. It’s normal
for a water system.”
The company plans to perform additional
work on pipes in the area, finishing up by the end of summer.
Hinson made the distinction that the work is not being
performed because of the lawsuit, but rather, it is part of the
company’s normal, routine maintenance.
“Part of our hope is that it cuts
down or eliminates incidents of discolored water,” she
said.
Cleaners Credit Union in voluntary
liquidation
Cleaners Credit Union began voluntary
liquidation at the close of business on April 12.
An announcement from the credit union said
that administration of existing loans and procedures for
disbursement of existing shares will be assigned by the Georgia
Department of Banking and Finance, 2990 Brandywine Rd., Suite
200, Atlanta, GA 30341.
In the announcement, board chairman M. J.
“Bud” Subit said, “adverse classification of
some of our loans by regulatory agencies made our credit union
less attractive as a merger partner for some other existing
credit unions.
“Those who do want us have not
received the joint approval of the Georgia Department of
Banking and Finance and the National Credit Union
Administration.”
The credit union continued to pay
dividends through the end of March, 2004 and currently has more
than $1 million in cash and corporate bonds, said Phil Bearden,
executive director. But the future ability to pay competitive
dividends and meeting ongoing expenses “appears
economically unsure,” Bearden said.
In its early years, the credit union was
led by the fiscally conservative Sam Bunn and has provided
hundreds of loans for fourth- and fifth-generation drycleaning
machines, the announcement noted. Bunn has volunteered many
hours in the office over the past year.
“Having been present at the credit
union’s birth during a breakfast meting back in 1971,
I’m saddened to be a figurative pall bearer today,”
said current board member Bobby Landers. “I believe the
credit union has served the industry and its members honorably.
The contribution of a multitude of volunteer directors has been
immeasurable.”
East Coast School gears up for May, June
classes
With four classes scheduled in May and an
additional four in June, the East Coast
School of Drycleaning will
offer a little of everything under the sun in the warm climate
of Riviera Beach, Florida.
Beginning on Friday, May 7, students will
have a chance to learn more about wetcleaning, including topics
such as sales aspects, chemical processes, production
procedures and garment compatibility. A second wetcleaning
course has also been planned for Saturday, June 12.
“Counter Training” will take
place on Saturday, May 15, and cover the most effective
communication techniques for interacting with customers. There
will be an emphasis on upselling and analyzing garments and
stains for treatment when they initially come across the
counter.
On Saturday, May 22, attendees can learn
more about alternative solvents, including: CO2, GreenEarth,
Rynex and hydrocarbons, as well as chlorinated and
petroleum-based solvents. A second class is planned for
Friday, June 25.
“Bleaching & Advanced Spotting
Technology” will be the focus of a class on Friday, May
28, with special attention paid to modern techniques and live
demonstrations.
Rounding out the upcoming courses will be
one on “Finishing” on Friday, June 4, and one on
“Hydra Air Dry Cleaning Machine Operations” on
Saturday, June 19.
All classes will meet for one day from 11
a.m. until 2 p.m. The cost is $225 per person for those who
register at least one month in advance; otherwise, the cost
rises to $250 per person.
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