When Julia Lukasik, 91, planned her funeral 15 years ago, she did it down to the final detail, including how much it would cost. The details, including an oak casket with a lining that matched the color of a dress she plans to wear, were included in a contract with Church and Chapel Funeral Home in New Berlin. The $5,151 cost, she was told, was guaranteed.
Turns out it wasn't.
At his mother's request a few weeks ago, Michael Lukasik called Church and Chapel Funeral Home to check on the arrangements. The company said they could find no record of the contract.
That was the first glitch in an eye-opening saga, in which the company initially told the family it could not honor all the prices, but backed off after contacted by Public Investigator and a state consumer protection agency. The company ultimately agreed to honor the prices one of its employees had guaranteed in 1995, but insisted on payment now.
The unusual case, which involved questions of what establishes a contract, is a lesson for consumers and businesses alike on understanding responsibilities of such agreements.
At issue was paperwork drawn up in 1995, when Julia Lukasik met with Church and Chapel funeral director Kevin Fleischfresser. Her son, Michael, and daughter, Mary, were with her. At the time, pre-planning of funerals was a new practice, and some of the procedures followed today were not yet established.
Michael Lukasik said his mother wanted to pay at that time, but Fleischfresser said that wasn't necessary and assured them the price was guaranteed.
The contract Fleischfresser and Julia Lukasik signed is the same document that Church and Chapel would have used at the time had someone died. It indicates payment must be made within 1 ½ months after the service. Above the total on the document, Fleischfresser noted a $200 discount because he was a personal friend of Julia's son, Michael.
That is the document Michael Lukasik sent when the funeral home said it had no record of the agreement.
Legality Illegal decision
Lukasik then received a call from Ted Larsen, owner of Church and Chapel Funeral Home. Larsen said because Fleischfresser, who had died in a motorcycle accident, left no record of the agreement, they were unable to honor it because no money had been paid when the paperwork was signed.
When pre-planning a funeral, there are two aspects involved - the details of the service, such as Julia Lukasik's chosen casket, and the payment. Customers are not required to pre-pay, but if they don't, prices may increase.
In Wisconsin, when someone wants to pre-pay, the estimated amount at the time of planning must be put aside with a third party, such as a bank trust or in an insurance policy. When the person dies, that money - and any growth in interest - pays for the funeral.
Church and Chapel's policy today is to write up a worksheet, not a contract, that states the amount set aside, plus whatever interest it has gained, will cover all costs, except for a death notice and opening the grave. If the money comes up short, the funeral home makes up the difference, Larsen said.
Other funeral homes may have different policies.
Frustrated and puzzled, Michael Lukasik acknowledged that Fleischfresser may have made a mistake, but feels Church and Chapel should have stood by the contract - a deal is a deal.
"It's just a shame that a person enters into a contract and finds it's no longer legitimate," Lukasik said.
But the contract is legitimate, said Ralph Anzivino, a professor of contract law at the Marquette University Law School. Despite what Church and Chapel's practices are today, the contract is valid and would hold up in court, he said.
"That may be (Church and Chapel's) business decision, but that's not the legal one," Anzivino said, calling the situation an "open and shut" case.
Anzivino said the fact Fleischfresser is no longer with the company doesn't matter because the contract was signed on behalf of the company, not an individual employee.
Honoring an agreement
During the original phone conversation with Michael Lukasik, Larsen offered to honor the 1995 costs for funeral services, such as staffing and embalming, but not those for merchandise, including the oak casket Julia wanted, the biggest ticket item. In 1995 that casket cost $2,995. Today, it is more than $5,000, nearly the entire 1995 funeral's cost. Larsen said he felt the compromise was a fair offer, especially because he had no idea what commitment Fleischfresser had made in his conversation with the Lukasiks.
He noted that in 1995 the company was young and still experiencing a learning curve. "Just like every business, they get better with time," said Larsen, whose company has an "A" rating with the Better Business Bureau.
After the Journal Sentinel contacted Larsen and the Wisconsin Division of Trade & Consumer Protection, Larsen changed his position and agreed to uphold the prices in the contract. He said he would do that if Julia Lukasik put the full 1995 amount, $5,151, into a third-party trust or insurance policy in the coming days.
Larsen's proposal would match the price, but with pre-payment as a stipulation. However, it would not match the contract Fleischfresser signed on behalf of Church and Chapel, which stated the amount was to be paid within 1 ½ months after the funeral.
Julia Lukasik turned down Larsen's offer.
"There was some concern dealing with Church and Chapel after what they did," Michael Lukasik said of his mother's concerns.
Instead, Lukasik spoke with Jim Sass, a family friend, at Max A. Sass & Sons Funeral Home.
Sass agreed to honor all the prices listed on the 1995 contract between Julia Lukasik and Church and Chapel Funeral Home. They have put an agreement in writing and won't have to pay until the time of the funeral.
Tips for consumers
Janet Jenkins, an administrator with the Wisconsin Department of Agriculture, Trade and Consumer Protection, advises:
• Shop around: "The high cost of funerals warrants careful shopping. Use price lists from funeral homes to choose exactly the services and products you want."
• Review your wishes: "Be sure to discuss your wishes and any arrangements you have made with survivors. Keep all related papers in a safe, accessible place. It is also a good idea to periodically review your arrangements to make sure they reflect your current situation and preferences."
• Consider your options: "Inflation may make the cost of a pre-arranged funeral greater than a trust balance, even with accrued interest. Consumers should consider other options for investing money and setting up provisions for its use at the time of death."
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