John A. and Bonnie W. Stepan, longtime residents of Palm Beach, Florida, have filed a Demand for Arbitration against Terminix/Rentokil, alleging the company failed to complete termite remediation work at their home for approximately six years. The complaint, filed by attorney William D. McCann, seeks damages including punitive damages exceeding $13 million for breach of contract, systemic fraud, intentional infliction of mental distress, and violations of Florida consumer protection and elder abuse statutes. Mrs. Stepan is 79 years old and Mr. Stepan is 80.
According to the arbitration complaint, the Stepans first reported termite damage to their loggia dining room in 2020. Despite entering into a service agreement with Terminix/Rentokil to remediate the damage, the work remains incomplete as of the filing. The complaint alleges that by 2025, the company had retained and later dismissed two previous contractors before work was completed. The Stepans have been unable to use their dining room for approximately six years, according to the filing.
The complaint further alleges that Terminix/Rentokil later hired One Stop Inc., a Coral Gables contractor, to perform the remediation. One Stop allegedly performed defective work, used improper materials, violated electrical code requirements, and failed to address additional termite damage discovered during the project. Official communications from the Town of Palm Beach were sent to a former Terminix/Rentokil contractor and were not acted upon, the complaint states. Additionally, One Stop allegedly attempted to conceal termite damage that developed during the extended delay and sought additional payment to repair a damaged lattice screen that the Stepans contend was already included within the scope of work.
William D. McCann, the Stepans' attorney, stated, "This company has tortured the Stepan family for years. Mr. Stepan made literally hundreds of calls to various Terminix/Rentokil personnel, only to experience no callbacks, untruthful excuses, and repeated delays regarding completion of the work." McCann added that after the Stepans retained legal counsel, Terminix/Rentokil agreed to pay for complete remediation but later conditioned payment on the execution of a general release. This, according to the arbitration complaint, continued a longstanding pattern of alleged bad faith.
The complaint also references another arbitration involving retired Alabama school teachers who reportedly received a $2.8 million arbitration award after alleging similar conduct by Terminix. The current arbitration remains pending, and the allegations contained in the complaint have not been adjudicated.
For business and technology leaders, this case highlights significant risks in outsourced service agreements, particularly when dealing with vulnerable populations such as the elderly. The allegations of systemic fraud, elder abuse, and failure to remediate termite damage over six years underscore the importance of robust contractor oversight and clear contractual performance metrics. Companies in the pest control and home services industry may face heightened scrutiny and potential liability if similar patterns of conduct are proven. The case also serves as a reminder of the potential for substantial punitive damages when consumer protection and elder abuse laws are allegedly violated.
