John A. and Bonnie W. Stepan, longtime residents of Palm Beach, have filed a Demand for Arbitration against Terminix/Rentokil, alleging the company failed to complete termite damage remediation to the loggia dining room of their home for approximately six years. The complaint, filed on June 26, 2026, seeks damages for breach of contract, systemic fraud, intentional infliction of mental distress, and violations of Florida consumer protection and elder abuse statutes.
According to the arbitration complaint, the Stepans first reported termite damage to their dining room in 2020. Despite a service agreement with Terminix/Rentokil to remediate the damage, the work remains incomplete, leaving the couple unable to use the dining room for roughly six years. The complaint alleges that by 2025, the company had retained and later dismissed two previous contractors before work was completed.
The complaint further alleges that Terminix/Rentokil later hired One Stop Inc., a Coral Gables contractor, to perform the remediation. According to the filing, One Stop performed defective work, used improper materials, violated electrical code requirements, and failed to address additional termite damage discovered during the project. The complaint also states that official communications from the Town of Palm Beach were sent to a former Terminix/Rentokil contractor and were not acted upon.
Attorney William D. McCann, who represents the Stepans, said, "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 further alleged 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, continuing a pattern of 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 Stepans are seeking punitive damages exceeding $13 million, alleging the defendants engaged in a pattern of conduct that harmed vulnerable elderly customers. Mrs. Stepan is 79 years old and Mr. Stepan is 80.
For HR vendors, this case highlights the growing legal risks associated with customer service failures, particularly when vulnerable populations like the elderly are involved. The allegations of systemic fraud and elder abuse could lead to increased scrutiny of service contracts and remediation practices across the pest control industry. Vendors may need to reassess their compliance with consumer protection laws and ensure robust oversight of third-party contractors to avoid similar liabilities. The reference to a prior arbitration award suggests that Terminix/Rentokil may face a pattern of claims, which could impact its reputation and insurance costs. As the arbitration proceeds, HR vendors should monitor developments for insights into how customer complaints can escalate into significant financial and regulatory consequences.
The allegations in the complaint have not been adjudicated. The arbitration remains pending.
