The ARS Rescue Rooter lawsuit history spans more than a decade and includes two major state enforcement actions, several class actions, and a steady stream of consumer complaints. Arizona and Oregon regulators extracted roughly $1.3 million in combined penalties plus $350,000 in customer restitution over allegations of high-pressure sales and unnecessary work. Private class actions over wages and telemarketing have produced mixed results, with some settled, some dismissed, and one settlement thrown out on appeal.
Arizona Attorney General’s Consumer Fraud Case
On September 15, 2011, Arizona Attorney General Tom Horne sued American Residential Services and several subsidiaries, including ARS Rescue Rooter, Goettl Air Conditioning, and Russett Services/ARS Rescue Rooter, in Pima County Superior Court. The complaint alleged violations of the Arizona Consumer Fraud Act and licensing violations under Title 32 of the Arizona Revised Statutes.1SanTanValley.com. Horne Asks That American Residential Services HVAC Company Be Barred From Operating in Arizona
The state accused the company of pressuring elderly customers into unnecessary and unaffordable HVAC and plumbing replacements by frightening them about safety risks. Investigators said ARS sent thousands of solicitations designed to look like official government notices, referencing fake mandates, rebates, tax credits, and buy-back programs. Other allegations included interfering with customers’ three-day cancellation rights, installing solar water heaters without proper licensure, and using a “packaging” pricing model with warranties the state called “misleading and useless.”2SanTanValley.com. Horne Asks That American Residential Services HVAC Company Be Barred From Operating in Arizona
Arizona sought a permanent injunction barring ARS from operating an HVAC business in the state, restitution for consumers, and civil penalties of up to $10,000 per Consumer Fraud Act violation plus another $10,000 per licensing violation. According to a 2014 report by The Oregonian, the matter ultimately resulted in fines of nearly $400,000 for “deceptive sales practices, particularly against older customers.”3OregonLive.com. Despite Allegations of Rampant Fraud, Rescue Rooter Still Operating
Oregon Licensing Board Action and Settlement
ARS operated in Oregon under the names Jack Howk Plumbing and Rescue Rooter. In 2012, after a yearlong investigation, the Oregon Construction Contractors Board moved to revoke the company’s license and proposed a $623,500 fine, citing 114 violations that included routinely performing unnecessary work and issuing inflated bills.3OregonLive.com. Despite Allegations of Rampant Fraud, Rescue Rooter Still Operating
One case cited during the investigation involved Katherine Nims, an elderly Portland resident who called the company about a clogged sink. According to the CCB, employees told Nims that if she did not replace her entire water and sewer lines, she risked a sinkhole and the release of “deadly methane gas.” Nims took out a second mortgage on her home to pay a bill of nearly $25,000.3OregonLive.com. Despite Allegations of Rampant Fraud, Rescue Rooter Still Operating
The board also alleged that workers earned only minimum wage unless they hit sales targets, and that employees who failed to sell enough could be terminated. Regulators said the structure encouraged aggressive upselling.
ARS settled with the CCB in December 2014. The company agreed to pay $540,000 in penalties and investigation costs plus $350,000 in restitution to affected customers, accepted three years of probation, and was required to maintain a $250,000 bond for that period. CCB administrator James Denno said ARS had complied with the law for the two years leading up to the settlement.4OregonLive.com. Jack Howk Plumbing and Rescue Rooter Settle With State Board
How the Company Responded
ARS General Counsel Chris Fairey denied all charges of wrongdoing in both states. The company said it had implemented new policies, including presenting options in writing before starting work, offering video documentation of sewer lines before and after service, and requiring mandatory ethics and “senior sensitivity” training for employees.3OregonLive.com. Despite Allegations of Rampant Fraud, Rescue Rooter Still Operating
Wage and Employment Class Actions
In April 2005, former employees Derain Clark and Maxine Gaines filed a class action in California on behalf of service technicians, customer service representatives, and dispatchers employed between April 2001 and December 2006. The suit alleged unpaid minimum and overtime wages, missed meal and rest periods, illegal uniform deductions, unreimbursed business expenses, and unfair business practices.5vLex. Clark v. American Residential Services LLC
A proposed $2 million settlement would have paid an average of roughly $561 to each of 2,360 participating class members, with $25,000 enhancements for each named plaintiff and $600,000 in attorney fees. A California appellate court vacated the trial court’s approval in 2009, finding the lower court lacked sufficient information to evaluate whether the deal was fair.5vLex. Clark v. American Residential Services LLC
More recent employment cases have moved faster. Rodriguez v. American Residential Services, a Fair Labor Standards Act case filed in the Middle District of Florida in November 2024, was resolved by a court-approved settlement and dismissed with prejudice on February 24, 2025.6CourtListener. Rodriguez v. American Residential Services LLC Dobucki v. American Residential Services, filed in the Eastern District of North Carolina in 2024, brought Americans with Disabilities Act claims. In January 2025 the court dismissed the federal claims without prejudice for failure to exhaust administrative remedies and remanded the state-law claims to Wake County Superior Court.7CourtListener. Dobucki v. American Residential Services LLC
Telemarketing Class Actions
Daniel Kissick filed a putative nationwide class action against ARS in 2019 under the Telephone Consumer Protection Act. Originally filed in the Central District of California, the case was transferred to the Western District of Tennessee. After the court bifurcated discovery and limited it to Kissick’s individual claim, blocking class-wide discovery, the plaintiff voluntarily dismissed the case with prejudice in January 2020. No money was paid to the plaintiff or class counsel.8Jones Day. American Residential Services Obtains Dismissal
A separate TCPA class action was filed in March 2020 in the U.S. District Court for the Northern District of Georgia. That complaint alleges ARS made unsolicited pre-recorded sales calls to consumers, including people on the National Do Not Call Registry, without prior written consent.9Kehoe Law Firm. American Residential Direct Recovery Services
Consumer Complaints at the Better Business Bureau
ARS/Rescue Rooter carries an A+ rating and accredited status with the Better Business Bureau. That rating sits alongside 1,576 complaints over the most recent three-year period, including 630 in the last twelve months. More than 1,200 involve service or repair issues, with the remainder covering product problems, sales and advertising disputes, and billing concerns.10BBB. ARS/Rescue Rooter BBB Profile Complaints The recurring themes echo the patterns seen in the state enforcement actions: gaps between advertised pricing and final invoices, allegations of high-pressure sales tactics, mechanical failures after service or installation, and trouble getting follow-up appointments.
If you believe you were affected by any of the conduct described in these cases, the state consumer protection office where the work was performed is the usual starting point for a complaint, and the pending Georgia TCPA docket is where new telemarketing plaintiffs would look for counsel.