Gillece to Pay $700,000 in Pennsylvania Consumer Settlement

Settlement, fines

HARRISBURG, PA — Gillece Services and related defendants have agreed to pay $700,000 in consumer restitution and accept new restrictions on plumbing and heating repairs under a Pennsylvania settlement resolving allegations that the company pressured homeowners into purchasing unnecessary and costly services.

Attorney General Dave Sunday said the consent order, filed in Allegheny County Court of Common Pleas, also requires $50,000 in costs and imposes $250,000 in suspended civil penalties. The agreement covers Gillece Services LP, Gillece Plumbing and Heating Inc., Thomas Gillece Sr., Thomas Gillece Jr. and two former technicians.

The settlement follows litigation over the company’s sewer repair advertising, sales practices and diagnoses of potentially hazardous heating and gas conditions. It imposes certification, documentation and independent verification requirements intended to prevent consumers from being charged for work that is not justified by documented defects.

“Gillece pressured consumers to undergo expensive home repair work that was oftentimes unnecessary,” Sunday said. “Gillece advertised specials that they knew they would not honor, leaving consumers on the hook for work they did not want or need.”

The attorney general’s lawsuit alleged that Gillece attracted customers experiencing sewer backups with a “$93 or Free Clog Crusher Special,” promising to clear blockages for $93 or provide the service at no charge.

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Once technicians arrived, consumers were allegedly told that conventional drain-clearing equipment would not work and that expensive excavation or sewer pipe replacement was necessary.

According to the lawsuit, some sewer lines could have been cleared without excavation, while other customers were told their pipes had defects that subsequent inspections did not substantiate.

Prosecutors also alleged that Gillece technicians used warnings about gas leaks and cracked heat exchangers to persuade homeowners to authorize repairs. Some of those diagnoses were later contradicted by third parties, including natural gas utilities.

The lawsuit additionally challenged the company’s workmanship, warranty compliance, advertising practices and handling of home improvement contracts.

In August 2023, the Allegheny County Court of Common Pleas granted partial summary judgment in the attorney general’s favor, finding violations of Pennsylvania consumer protection laws.

Those rulings addressed misleading advertising, misrepresentations about flat-rate pricing and improper cancellation practices, including failures to honor consumers’ requests to cancel contracts within the required three-day period.

The court also addressed conduct involving entry onto consumers’ properties without permission after they canceled contracts.

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The restrictions imposed in 2023 remain in effect alongside the new settlement requirements.

Under the consent order, Gillece technicians selling sewer excavation or hydro-jetting services must obtain certification through the National Association of Sewer Service Companies’ Lateral Assessment Certification Program.

The company must document sewer defects supporting repair or replacement recommendations, and those defects must meet specified severity standards established by the association.

When a sewer blockage cannot initially be cleared and defects are documented, technicians must make multiple attempts to open the line using a drain snake and inform customers that they may obtain a second opinion.

The agreement also establishes requirements for heating, ventilation and air conditioning technicians.

Gillece’s HVAC technicians must hold North American Technician Excellence certification and use carbon monoxide detection equipment calibrated according to manufacturer recommendations.

Diagnoses of gas leaks generally must be confirmed by the customer’s natural gas utility before Gillece sells related repair services.

A diagnosis involving a cracked heat exchanger or another dangerous condition must be confirmed by two company technicians holding the required certification.

Gillece must maintain detailed records supporting certain repair and replacement recommendations and provide that documentation to the attorney general’s office upon request.

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The settlement further requires the company to perform work consistent with its warranties, provide customers with contracts and cancellation notices when agreements are signed, and refrain from advertising offers it knows it cannot or will not honor.

Any confidentiality or nondisclosure agreements must expressly permit consumers to provide information to law enforcement.

Two former Gillece technicians named in the litigation, James F. Hackwelder and Joseph A. Nikoula, are barred from working in the plumbing industry for five years under the settlement.

Consumers eligible for restitution will be contacted directly by the Pennsylvania Office of Attorney General and do not need to submit claims or take other action.

Assistant Chief Deputy Attorney General Jill T. Ambrose litigated the case.

The consent order resolves the allegations without constituting an admission of unlawful conduct by the settling defendants.

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