Was the arbitration proceeding related to the Enviro Professionals, LLC lawsuit against Aerus settled?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
l District of South Carolina
Our affiliate Aerus Enterprise Solutions, LLC ("AES"), Joseph P. Urso and Kevin Hickey were named as defendants in a lawsuit filed by a former distributor of AES products, Enviro Professionals, LLC ("EnviroPro"). EnviroPro's claims included, among others: (1) civil conspiracy; (2) violation of the South Carolina Trademarks and Service Marks Act; (3) violation of the South Carolina Unfair Trade Practices Act; (4) breach of contract; (5) breach of contract accompanied by fraudulent act; (6) violation of the South Carolina Trade Secrets Act; (7) tortious interference with contractual relations; and (8) breach of fiduciary duty. AES disputed these claims and has sought to consolidate this South Carolina lawsuit with an arbitration proceeding related to the same set of facts pending with the American Arbitration Association in Dallas County, Texas. The damages sought by the plaintiff included injunctive relief, money damages, and attorneys' fees. The disputed issues largely center on (1) termination of the distributor relationship between AES and EnviroPro, (2) whether EnviroPro is entitled to recover any unpaid commissions and (3) the parties' respective rights to use certain trademarks. By agreement, dated June 5, 2019, the parties settled this case, as well as all arbitration proceedings. The settlement agreement provided, among other things, that (a) AES pay $350,000 to one of the owners of EnviroPro, (b) EnviroPro agreed to sell AES all rights to all intellectual property (e.g., trademarks, trade names, Internet domain names) owned or controlled by EnviroPro and relating to its business, and (c) one of EnviroPro's owners agreed to enter into a non-compete agreement that would prohibit him from, among other things, selling, marketing and distributing air purification, water purification and laundry treatment products, in exchange for a payment from AES. The case wa
Source: Item 3 — Litigation (FDD pages 16–17)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the arbitration proceeding related to the Enviro Professionals, LLC lawsuit was settled. Aerus Enterprise Solutions, LLC, along with Joseph P. Urso and Kevin Hickey, were defendants in a lawsuit filed by Enviro Professionals, LLC, a former distributor of AES products. EnviroPro's claims included civil conspiracy, trademark and trade secret violations, breach of contract, and tortious interference. Aerus disputed these claims and sought to consolidate the lawsuit with a related arbitration proceeding in Dallas County, Texas.
By an agreement dated June 5, 2019, the parties settled the case and all arbitration proceedings. As part of the settlement, Aerus paid $350,000 to one of EnviroPro's owners. In return, EnviroPro agreed to sell Aerus all rights to its intellectual property related to its business, including trademarks, trade names, and internet domain names. Additionally, one of EnviroPro's owners entered into a non-compete agreement, restricting them from selling, marketing, and distributing air purification, water purification, and laundry treatment products, in exchange for a payment from Aerus. The case was dismissed on June 17, 2019.
For a prospective Aerus franchisee, this information indicates that Aerus has been involved in legal disputes with its distributors in the past. While this particular dispute was settled, it highlights the importance of understanding the terms and conditions of the distributor or franchise agreement, particularly regarding termination, commissions, and intellectual property rights. The settlement also demonstrates that Aerus is willing to resolve disputes through negotiation and financial settlements, which could be a relevant factor in assessing the potential risks and benefits of investing in an Aerus franchise.