"We are committed to: The highest ethical standards. Uncompromising honesty and integrity." —The Windermere Mission Statement "In the real estate business somebody's word is very important. If you say you're going to do something, you've got to do it." —Windermere CEO Geoff Wood's Public Affirmation

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Windermere Bellevue Commons Associate Brokers Dick and Cecilia Pelascini’s Foreclosure Rescue Ripoff Scam

(Above L to R) Windermere Bellevue Commons Associate Broker Dick Pelascini and wife Cecilia Pelascini: Still generating commissions for Windermere.

 

Vila Pace-Knapp owned a home where she resided for many years, but eventually became delinquent on her payments, and started getting written notices of default and pending foreclosure that her home would be sold at an upcoming trustee’s sale. She sought to stave off the trustee’s sale through bankruptcy, but the bankruptcy court dismissed all of her petitions. The attempts at bankruptcy, however, did manage to postpone the scheduled trustee’s sale for many months, but the bankruptcy court’s final order of dismissal prevented her  from filing additional petitions.

At about the period of Pace-Knapp’s initial notices of foreclosure, Windermere Associate Broker Dick Pelascini, and Thomas Boboth of Pacific Shoreline Mortgage, individually approached her at her home. She knew neither of the men, but they were clearly aware of her pending foreclosure. They offered to collaborate with Pace-Knapp in an effort to save her home. Pelascini and Boboth each proffered business cards, identifying each respectively as a broker at a real estate company, and the president of a mortgage company. The pair visited many times over the ensuing weeks, continually offering to help her. Neither man ever stated they wanted to buy her house, or offer her a loan. Pace-Knapp declined their offers of help.

On an evening before the actual trustee’s sale, Pace-Knapp met Pelascini at his real estate office and signed a purchase and sale agreement for her home, a residential lease agreement, and an option to purchase the property from the Pelascinis, two years down the road. The documents were clearly labeled, but Pace-Kanpp did not read them, including the titles. She didn’t realize she’d sold her house to the Pelescinis until signing documents at the closing agent’s office, but still went ahead, and the trustee’s sale did not occur.

Pace-Knapp commenced living in the house under the new lease agreement with the Pelescinis for two and a half years, during which she paid the new owners rent. Then the Pelascinis declined to renew her lease a third time, and subsequently evicted her. She sued Dick and Cecilia Pelascini, Windermere Real Estate Bellevue Commons and Thomas Boboth and Pacific Shoreline Mortgage, for unconscionability, fraud, CPA violations, and intentional infliction of emotional distress. She also sought relief from the sale and attorney fees. The trial court found that Pelescinis were liable for fraud and CPA violations. It ordered rescission of the contract and attorney fees and costs under the Consumer Protection Act. In typical “stalling-the-damage-award-style,” Windermere and the Pelescinis moved for reconsideration, which the trial court denied, so they appealed.

 

The appeals court said, “The Pelascinis’ argument rests on the false premise that they ' …did help plaintiff save her house,' Simply stated, the point is that they saved her home for themselves so that they would not have to bid at the rescheduled trustee’s sale. The Pelascinis’ practice of preying on this and other vulnerable home owners on the eve of foreclosure is the type of practice likely to deceive future distressed owners in the same manner…. The trial court found that Pelascini and Boboth habitually work together to buy houses on the eve of foreclosure and that they did so in this case… essentially harassing her until she relented and accepted their offer to ‘help.’ …Pelascini and Boboth are likely to repeat this approach and have done so in the past.”

 

Both Cecilia and Dick Pelascini still work for Windermere. Here is the Court's opinion:

 

 

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

 

No. 59321-8-I

DIVISION ONE

UNPUBLISHED

FILED: March 17, 2008

 

VILA PACE-KNAPP,

Respondent,

v.

DICK PELASCINI and CECILIA
PELASCINI, husband and wife and their
martial community; WINDERMERE
REAL ESTATE/BELLEVUE
COMMONS, INC.; THOMAS BOBOTH;
and PACIFIC SHORELINE
MORTGAGE, INC.,

Appellants.

 

Cox, J. — A plaintiff claiming a violation of the Consumer Protection Act (CPA) must establish (1) an unfair or deceptive act or practice, (2) occurring in trade or commerce, (3) public interest impact, (4) injury to plaintiff in his or her business or property, and (5) causation.1 Here, the trial judge’s unchallenged findings of fact support its conclusion that Dick and Cecilia Pelascini, Thomas Boboth, and Pacific Shoreline Mortgage, Inc. (collectively, “the Pelascinis”) violated the act. However, the trial court’s determination that Vila Pace-Knapp was entitled to rescission for fraud in the inducement of a sale of her property cannot be sustained. We affirm in part, reverse in part, and remand for a determination of damages and attorney fees under the CPA.

 

1 Hangman Ridge Training Stables, Inc. v. Safeco Title Ins. Co., 105
Wn.2d 778, 780, 719 P.2d 531 (1986).

 

Pace-Knapp owned and resided in her home in Bellevue for many years. In early 2001, she became delinquent in making payments on the loan that was secured by her property. In June 2001, she received written notices of default and foreclosure indicating that her home would be sold at a trustee’s sale in the near future. She attempted to avoid foreclosure by filing for bankruptcy three times, but the bankruptcy court dismissed all of her petitions. The bankruptcy filings delayed the scheduled trustee’s sale from June to October 2001. In the final order of dismissal, the bankruptcy court prohibited her from filing additional petitions.

 

Around the time of the initial foreclosure notices, Pelascini and Boboth individually approached Pace-Knapp at her home. She did not know either of them, but they were aware of the pending foreclosure proceedings. They offered to work together to help her “save her home.” Each gave her a business card showing that they were, respectively, a broker at a real estate company and the president of a mortgage company. They visited her many times over the next few weeks and continually offered to help her. They never stated they wanted either to buy her house or to help her by offering her a loan. Throughout this period, she declined their offers of help.

 

The evening before the final rescheduled trustee’s sale, Pace-Knapp went to Pelascini’s real estate office and signed several documents: a purchase and sale agreement for her home, a residential lease agreement, and an option to purchase the property from the Pelascinis in two years. Although they were plainly labeled as such, she did not read any portion of the documents, including the titles. When Pace-Knapp signed further documents at the closing agent’s office, she first realized she had sold her house to the Pelascinis. Nevertheless, she proceeded with the sale. As a result of this transaction, the trustee’s sale did not proceed.

 

She lived in the house under lease agreements with the Pelascinis for two and a half years, during which time she paid rent to the new owners. She was evicted when the Pelascinis declined to renew her lease a third time.

 

Shortly thereafter, she commenced this action, alleging unconscionablility, fraud, CPA violations, and intentional infliction of emotional distress. She sought relief from the sale and/or damages as well as attorney fees.

 

At a bench trial, the trial court found that defendants’ representations led Pace-Knapp to reasonably believe they were planning a refinance of her home loan. The trial court also found her competent to enter into the contracts that she signed. Nevertheless, the trial court decided that the Pelascinis were liable for fraud in the inducement and CPA violations. It ordered rescission of the contract and attorney fees and costs under the CPA. It appears that the Pelascinis moved for reconsideration, which the trial court denied.

 

The Pelascinis appeal.

 

CONSUMER PROTECTION ACT

 

The Pelascinis argue that the trial court erred in concluding that they violated the Consumer Protection Act. Based on the unchallenged findings of fact and the relevant law, we disagree.

The elements of a private CPA claim are:

 

(1) unfair or deceptive act or practice; (2) occurring in trade or commerce; (3) public interest impact; (4) injury to plaintiff in his or her business or property; [and] (5) causation.[2]

We liberally construe the CPA to serve its beneficial purposes of protecting the public and fostering fair and honest competition.3

 

The Pelascinis do not challenge any of the trial court’s findings of fact. Therefore, they are verities on appeal.4 We review issues of law de novo.5 We draw reasonable inferences from the facts in favor of the trial court’s determination.6

Unfair or Deceptive Practice

 

Citing no case law, the Pelascinis argue that they did not engage in an unfair or deceptive practice. We disagree.

 

An act is unfair or deceptive if it had the capacity to deceive a substantial portion of the public.7 Proof of intent to deceive is not required.8 For example, a defendant engages in an unfair or deceptive practice if he or she sells a house

 

2 Hangman Ridge, 105 Wn.2d at 780.
3 RCW 19.86.920.
4 Perry v. Costco Wholesale, Inc., 123 Wn. App. 783, 792, 98 P.3d 1264
(2004).
5 Id.
6 Henry v. Bitar, 102 Wn. App. 137, 142, 5 P.3d 1277 (2000).
7 Hangman Ridge, 105 Wn.2d at 785.
8 Id.

 

with prior knowledge of a defect and fails to disclose that defect to the buyer.9 When the facts are not in dispute, we determine whether a practice was unfair or deceptive under the CPA as an issue of law.10

The Pelascinis’ argument rests on the false premise that they “did help plaintiff save her house.” The trial court found that Pace-Knapp reasonably interpreted the Pelascinis’ promises to mean that they would refinance her home, which means she would continue to own it. Taking the unchallenged findings as true, we conclude that the Pelascinis deceived Pace-Knapp when they promised her that they would help her “save” her home and implied that they would refinance her loan. Simply stated, the point is that they saved her home for themselves so that they would not have to bid at the rescheduled trustee’s sale. They did not help her save her home for her, as suggested. The Pelascinis’ practice of preying on this and other vulnerable home owners on the eve of foreclosure is the type of practice likely to deceive future distressed owners in the same manner.

 

In the Course of Trade or Commerce

 

The Pelascinis do not dispute that they were acting in the course of trade or commerce. Yet they argue that such a finding is incompatible with the trial court’s finding that Pace-Knapp thought they were acting as altruists — not in the course of their trade. In fact, the CPA applies to “every person who conducts

 

9 Burbo v. Harley C. Douglass, Inc., 125 Wn. App. 684, 700, 106 P.3d
258, review denied, 155 Wn.2d 1026 (2005).
10 Indoor Billboard/Washington, Inc. v. Integra Telecom of Washington,
Inc., 162 Wn.2d 59, 84, 170 P.3d 10, 22 (2007).

 

unfair or deceptive acts or practices in any trade or commerce.”11 And “[r]eal estate sales clearly constitute ‘trade’ or ‘commerce’ for purposes of [the CPA].”12 Thus, it is clear from the facts of this case that the Pelascinis were acting in the course of trade or commerce by purchasing real estate. The fact that they hid their commercial intent from Pace-Knapp does not contradict this finding.

 

Impact on the Public Interest

 

The Pelascinis also argue that their actions did not have an impact on the public interest. We again disagree. Plaintiffs must show an impact on the public interest from a private transaction based on an analysis of the following non-exclusive factors:

 

(1) Were the alleged acts committed in the course of defendant’s
business? (2) Did defendant advertise to the public in general?
(3) Did defendant actively solicit this particular plaintiff, indicating
potential solicitation of others? [and] (4) Did plaintiff and defendant
occupy unequal bargaining positions?[13]

 

For example, in Sign-O-Lite Signs, Inc. v. DeLaurenti Florists, Inc., this court determined that a public interest impact existed when a sign company solicited a store owner and deceptively convinced the owner to sign an agreement that required the owner to pay substantially more for a sign than she had orally agreed.14 This court held that there was a public interest impact because the company acted within the course of its business, actively solicited

 

11 Hangman Ridge, 105 Wn.2d at 785 (quoting Short v. Demopolis, 103
Wn.2d 52, 61, 691 P.2d 163 (1984)).
12 Edmonds v. John L. Scott Real Estate, Inc., 87 Wn. App. 834, 846, 942
P.2d 1072 (1997).
13 Hangman Ridge, 105 Wn.2d at 790-91.
14 64 Wn. App. 553, 825 P.2d 714 (1992).

 

the store owner, and routinely solicits other business.15

 

Similarly here, the trial court found that Pelascini and Boboth habitually work together to buy houses on the eve of foreclosure and that they did so in this case. They actively solicited Pace-Knapp by approaching her at home a number of times, offering to help her, and essentially harassing her until she relented and accepted their offer to “help.” The court found that although Pace-Knapp was able to contract, they are real estate professionals, while she “is an unsophisticated homeowner whose ability to reason clearly during this period was obviously impaired.”16 Finally, although the trial court did not make a finding that Pelascini and Boboth advertise to the public, the court concluded that this type of transaction has an adverse effect on the public interest because it has the potential for repetition and evidence in this case showed that Pelascini and Boboth have “engaged in this approach before.”17

 

Given these unchallenged factual findings, we conclude that Pace-Knapp satisfied the public interest element. Pelascini and Boboth are likely to repeat this approach and have done so in the past. Such a business practice impacts the public interest by targeting and harming vulnerable individuals.

 

Injury / Damages / Attorney Fees Below

 

 

The Pelascinis argue that Pace-Knapp was not injured by the transaction

 

15 Id. at 562-63.
16 Clerk’s Papers at 247 (Finding of Fact 14).
17 Clerk’s Papers at 250-51 (Conclusion of Law 5). Although this
statement was contained in a conclusion of law, the portion regarding
Appellants’ past practice is a finding of fact.

 

and that she has the burden to prove “actual damages.” They also argue that attorney fees were inappropriate because the court did not award damages under the act. Identical arguments were rejected by the supreme court in Mason v. Mortgage America, Inc.,18 and we reject them here.

 

In Mason, as in this case, the trial court had ordered rescission of the contract in question and also found a violation of the CPA. The supreme court reiterated that injury and damages under the CPA are distinct. The loss of title to real property is “obviously” an injury under the CPA because it is a diminution of money or property.19 Because each element of a CPA claim, including injury, was met in that case, the supreme court held that attorney fees and costs were appropriate, even though there were no money damages in light of the rescission.20

 

Here, Pace-Knapp was injured because she lost the equity in her home. There are, potentially, other damages to which she is entitled as well. Accordingly, attorney fees were proper because each element of the CPA was met.

 

Causation

 

Again citing no case law, the Pelascinis argue that Pace-Knapp did not prove causation because her own acts caused her alleged injury. We disagree. The issue of causation under the CPA is an issue of fact for the trial

 

18 114 Wn.2d 842, 792 P.2d 142 (1990).
19 Id. at 854-55.
20 Id. at 855.
21 Indoor Billboard, 162 Wn.2d at 84.

 

court.21 But the Pelascinis do not challenge any of the trial court’s findings of fact on appeal. The trial court found that Pace-Knapp was induced through fraud into selling her home and concluded that their actions were the cause of her injury.

 

The Pelascinis’ only possible challenge with regard to this element, then, is whether the trial court applied the proper law. Nothing in the record suggests that it did not.22 We will not presume otherwise.

 

CONTRACT RESCISSION

 

The Pelascinis raise several arguments regarding Pace-Knapp’s claim of fraud in the inducement and the trial court’s chosen remedy of rescission. We conclude that the remedy of rescission was not appropriate under the facts and law that control this case.

 

Fraud: Misrepresentation of Fact

 

The Pelascinis argue that the trial court erred in concluding that they made a misrepresentation of existing fact. We agree and hold that the trial court’s findings of fact do not support its conclusion of fraud.

 

To prevail on a claim of fraud, the plaintiff must prove with clear, cogent, and convincing evidence that the defendant made a material misrepresentation of existing fact.23 Fraud in the inducement is fraud that induces the transaction

 

21 Indoor Billboard, 162 Wn.2d at 84.
22 Neither the trial court briefs nor the prior dispositive motions were made part of the record on appeal.
23 The nine elements of fraud are: (1) a representation of existing fact, (2)that is material, (3) and false, (4) the speaker knows of its falsity, (5) intent to induce another to act, (6) ignorance of its falsity by the listener, (7) the latter’s

 

 

by misrepresentation of “motivating factors such as value, usefulness, age, or other characteristic of the property.”24 Misrepresentations include “half-truths calculated to deceive,” 25 and inferences from the words used.26 A promise of future performance is not a representation of existing fact.27

 

 

Here, the trial court specifically found that the Pelascinis had not made a
misrepresentation of existing fact, but rather that the misrepresentations “were in the nature of intentions.”28 Yet the court concluded that all elements of fraud in the inducement were met in part because Pace-Knapp relied on them to “do as they promised.”29 This was an error of law because promises of future performance are not representations of existing fact. Thus, there is no basis to conclude that fraud in the inducement exists here. Absent fraud, there is no basis for the remedy of rescission.

 

Waiver

 

 

Even if Pace-Knapp had proven the elements of fraud in the inducement, case law is clear that she waived her right to the remedy of rescission by her delay in bringing this action.

 

reliance on the truth of the representation, (8) her right to rely on it, and (9) consequent damage. Pedersen v. Bibioff, 64 Wn. App. 710, 723 n.10, 828 P.2d 1113 (1992).
24 Id. at 722.
25 Ikeda v. Curtis, 43 Wn.2d 449, 460, 261 P.2d 684 (1953); see also id.
(“A representation literally true is actionable if used to create an impression substantially false.”).
26 Restatement (Second) of Contracts § 159 (1981).
27 West Coast, Inc. v. Snohomish County, 112 Wn. App. 200, 206, 48
P.3d 997 (2002).
28 Clerk’s Papers at 249 (Conclusion of Law 3).
29 Clerk’s Papers at 250 (Conclusion of Law 4).

 

Even where a person has been defrauded, he or she may waive the right to seek rescission, or in certain circumstances, damages.30

 

Generally, a person wishing to avoid a contract has the choice either to continue performing under the contract and sue for damages or to promptly seek to rescind the contract.31 One who opts to rescind a contract for fraud “must act promptly after its discovery” in order to preserve the right to sue for rescission.32 If a party claiming to have been defrauded affirms the contract by entering into new “arrangements or engagements concerning the subject matter of the contract” after discovering the fraud, he has waived his right to sue for rescission.33 Waiving the right to sue for rescission merely by affirming the contract or delaying to seek rescission, however, does not necessarily bar the right to sue for damages.34

 

For example, in Johnson v. Brado, the purchasers of a home discovered after the sale that the house was not connected to the sewer, contrary to the seller’s previous promises.35 The buyers moved into the home and rejected the seller’s offer to pay for septic repair. The purchasers sued the seller approximately one year later. The court held that the buyers had waived their right to rescind the contract by moving into the house and affirming the

 

30 Owen v. Matz, 68 Wn.2d 374, 376-77, 413 P.2d 368 (1966).Salter v. Heiser, 39 Wn.2d 826, 831, 239 P.2d 327 (1951); Johnson v.
Brado, 56 Wn. App. 163, 165-66, 783 P.2d 92 (1989) (citing Weinstein v.
Sprecher, 2 Wn. App. 325, 330, 467 P.2d 890 (1970)).
32 Weitzman v. Bergstrom, 75 Wn.2d 693, 697, 453 P.2d 860 (1969).
33 Id.
34 Id.
35 56 Wn. App. 163, 783 P.2d 92 (1989).

 

 

contract.36 But they had not waived their right to sue for damages because no unequivocal act evinced their intention to do so.37

 

 

Here, Pace-Knapp waived the right to rescission by remaining in her house for more than two years and signing two lease agreements after she discovered that the Pelascinis purchased her property. Rescission was not an appropriate remedy after Pace-Knapp affirmed the agreement and allowed sufficient time to pass before attempting to repudiate it. Because we hold that Pace-Knapp did not prove the elements of fraud and that the remedy of rescission was not available to her, we need not address the Pelascinis’ additional arguments related to fraud.

 

 

ATTORNEY FEES

 

 

Citing to Sign-O-Lite Signs, Pace-Knapp seeks attorney fees as the substantially prevailing party on appeal under the CPA.38 She is entitled to such an award, both at trial and on appeal. We remand to the trial court to determine the amount of the fee award.39

 

We affirm the judgment to the extent of the CPA award and remand for the determination of damages and the amount of attorney fees on appeal. We reverse the fraud in the inducement determination.

 

36 Id. at 167.
37 Id.
38 64 Wn. App. at 568.
39 See RAP 18.1(i).

 

Cox, J.

 

WE CONCURR

Applewick, C.J.

Grosse, J.

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The Windermere Real Estate Relocation Rape Case:

Court Declares that Windermere "...condoned a rape by a business colleague..."

 

Editorial Preface: The incredibly violent and insidious psychological ramifications of rape, connected through an “abusive work environment” serves as an unfortunate yet credible subtext for the way in which Windermere Real Estate treats employees and damaged customers alike: Windermere’s application of aggressive, wasteful and mendacious litigation to stall and ruin innocent consumers, serves as the coercive metaphor of corporate power and arrogance: Windermere has no concern for the social damage it has done to people or communities. It cares only about how to manipulate the law and the courts to avoid any legal responsibility.

 

(Above L to R) Windermere CEO Geoff Wood (far left) is currently listed as a Governing Person of Windermere Relocation. Peggy Scott (second from left), also a current Governing Person of Windermere Relocation, "... did not give Little any advice about going to the police, and she did not conduct an investigation of Little's complaint or any follow-up interview with Little." Windermere General Counsel, attorney Paul Drayna (third from left) is listed as the registered agent of RELO LLC, the current entity name of Windermere Relocation. Windermere Founder John W. Jacobi (fourth from left) along with Gayle Glew (far right) are listed as Governing Persons of Windermere Relocation during the Little case. Glew told Ms. Little he did not want any "clouds in the office," and subsequently, after she would not accept a pay cut, that she should clean out her desk.

All citizens who abhor such treatment of women in the workplace should recall Maureen Little v. Windermere Relocation when choosing real estate services. WindermereWatch visitors will also want to read the United States District Court of Appeals Ninth Circuit's Order and Amended Opinion from the Little case.

 

Summarized and excerpted from a decision by the U.S. Court of Appeals

 

Maureen Little was employed by Windermere Relocation Services (“Windermere”) as a Corporate Services Manager, a position that required her “to develop an ongoing business relationship and relocation contacts with corporations in order to obtain corporate clients needing relocation services for their employees.” Until she was terminated, she received only positive feedback from her supervisors. Windermere’s records confirm that during the relevant period, Little had the best transaction closure record of all corporate managers by a large margin.

Unlike the other managers, Little’s employment contract provided that Little would receive $2,000 monthly, plus a $1,000 monthly override and $250 per closed sale. The override was based on the assumption that Little would close four transactions per month, with a provision for rollover when she did not make the target. According to Windermere President Gayle Glew, the other managers had not received the $1,000 override.

One of Windermere’s clients was the Starbucks Corporation. Some time in 1997, Little performed some relocation services for Starbucks Human Resources Director, Dan Guerrero, on a contract basis, and she learned from him that Starbucks was dissatisfied with its primary relocation provider. Glew told Little that he would “do whatever it takes to get this account” and that Little should “do the best job she could.” Thus, little believed that, as part of her job, she was to build a business relationship with Guerrero to try and get the Starbucks account, and she had at least two business lunches with Guerrero toward this end.

On October 14, Little accepted Guerrero’s invitation to discuss the account at a restaurant. After eating dinner with Guerrero and having a couple of drinks, Little suddenly became ill and passed out. She awoke to find herself being raped by Guerrero in his car. She fought him off and jumped out of the car, but again she became violently ill. Guerrero put her back in the car and took her to his apartment, where he raped her again. Little fell asleep, and when she awoke he was raping her again. Afterward, he showered and drover her to her car.

Little was reluctant to tell anyone at Windermere about the rape because, in her own words, “I knew how important the Starbucks account was to Mr. Glew. Mr. Glew would ask me on a consistent basis the status of the account and I was afraid that if I told him about the rape, he would see me as an impediment to obtaining the Starbucks account.” This belief was reinforced when, a few days after the rape, Little reported the rape to Chris Delay, Director of Relocation Services (apparently not one of Little’s supervisors), and Delay advised her not to tell anyone in management. Little believed that Delay feared “what might happen to [Little] if [she] did tell.”

On October 23, about nine days after the rape, Little reported it to Peggy Scott, the Vice President of Operations, who was designated in Windermere’s Harassment Policy as a complaint-receiving manager. Little described Scott’s response:

She came out around the desk and I could tell she was upset and she just gave me a hug and said she wished there was something she could do. She didn't understand what I was going through. She asked me if I was in therapy. Then she proceeded to tell me she wouldn't say anything to [Glew] unless I proceeded to seek legal action [against Dan Guerrero].

 

Scott told Little that "[s]he thought it would be best that [Little] try to put it behind [her] and to keep working in therapy," and that she should discontinue working on the Starbucks account. She did not give Little any advice about going to the police, and she did not conduct an investigation of Little's complaint or any follow-up interview with Little. Scott testified in her deposition that, because the rape occurred outside the "working environment," she believed that it fell outside the scope of Windermere's Harassment Policy.

 

Despite Little's supposed removal from the Starbucks account, Glew continued to ask her about the status of the Starbucks account during the next six weeks. "[As of December 2,] Gayle was asking me questions about Starbucks ... a couple of times every month to see what the status was." Concerned by Glew's questions, Little told her immediate supervisor, Linda Bellisario, the Vice President of Sales and Marketing, on December 2, 1997, about the rape. Little had been reluctant to tell Bellisario because she "felt that [Bellisario] would immediately go to Gayle and Gayle would terminate my position.... I knew how much this account meant to him. He said he would do whatever it took to get this account." Bellisario told Little to inform Glew of the incident.

 

When Little told Glew of the rape, which, according to Glew, was the first he had heard of it, Glew's" immediate response was that he did not want to hear anything about it." He told Little that she would have to respond to his attorneys. Glew then informed her that he was restructuring her salary from $3,000 monthly to $2,000 monthly plus $250 per closed transaction. The pay reduction was effective immediately and non-negotiable. Bellisario, who was present at that portion of the meeting, appeared "surprised and upset" to Little.

 

Little found the pay cut unacceptable, and Glew told her to go home for two days to think it over "because he did not want any `clouds in the office.'" When Little still found the pay cut unacceptable two days later, Glew told her it would be best if she moved on and that she should clean out her desk.

 

Little brought suit against Windermere, alleging unlawful discrimination and retaliation in violation of Title VII, 42 U.S.C. § 2000e, and the Revised Code of Washington § 49.60; wrongful discharge in violation of public policy; and intentional, reckless, and/or negligent infliction of emotional distress. The district court granted summary judgment in favor of Windermere on all four claims.

 

Little appealed dismissal of her claims, and the appeals court reversed in part, and ruled:

 

In sum, taking the facts in the light most favorable to Little, because her employer effectively condoned a rape by a business colleague and its effects, Little was subjected to an abusive work environment that "detract[ed] from [her] job performance, discourage[d] [her] from remaining on the job, [and kept her] from advancing in [her] career[]."

 

Incredibly, Windermere asked for a rehearing, but "...the panel has voted to deny the petition for rehearing and to reject the suggestion for rehearing en banc.

 

________________________________

 

WINDERMERE: AMERICA'S PREDATORY REAL ESTATE ENTERPRISE

Consumer advocates, legal experts and elected lawmakers all agree that the American real estate industry demands greater regulation to protect consumers from the human disaster of real estate fraud perpetrated by unethical realtors employed at companies like Windermere Real Estate. Windermere manipulates our clogged, inundated courts and the justice system to stall, wear down and financially exhaust victimized consumers, many of whom are wiped-out by the cost of pursuing civil justice in a process where innocent victims must CHASE perpetrators of real estate fraud through the courts AFTER a fraudulent offense has been committed. Acts of fraud are so common and widespread throughout the Windermere real estate network, that the defense of real estate fraud has become has become just another bottomline expense on the Windermere balance sheet. And the litigation nightmare of real estate fraud can happen to anyone who deals with Windermere Real Estate. It could happen to you. Windermere is by far the most unethical, deceitful, and culturally toxic real estate company operating in the United States. Windermere knowingly, deliberately, and unabashedly profits on corrupt franchise owners, brokers and agents with proven histories of fraud and ethical misconduct, many of whom are profiled in the pages of WindermereWatch.com. Despite Windermere's well-documented assault on victim speech rights, more and more unconscionable cases of Windermere fraud continue emerging.

Windermere is headquartered in Seattle, at franchiser Windermere Services Company. It was founded by John W. Jacobi, and he has kept the company a private, family-owned enterprise, eluding the transparency and ethical accountability required by stockholders. For decades, Windermere has harnessed the art of positive PR, affixing itself—however superficially—to community art events, the homeless, and even an annual college rowing competition which opens Seattle's boating season—the Windermere Cup—irresponsibly promoted by, and in conjunction with, the University of Washington. But those are the disingenuous and cynical sideshows created by an adept market manipulator, shown only briefly to the public, to obscure and obfuscate Windermere's true predatory nature.

FRANCHISER WINDERMERE SERVICES' MANAGEMENT TEAM AND DESIGNATED GOVERNING PEOPLE: EXPERTS IN MARKETING FRAUD, ABUSE OF THE LEGAL PROCESS, AND AT COERCING DAMAGED WINDERMERE CLIENTS INTO SILENCE BY SUPPRESSING THEIR SPEECH RIGHTS

The shameless greed and repugnant ethics of Seattle's Jacobi family, deliberately profiting on the loss and suffering of Windermere victims through commissions on the fraudulent home deals and unlawful misconduct of dishonest Windermere agents, brokers and franchise owners. Forget human decency, commercial reputation or social responsibility—it's all about the money.

Before turning the business over to his children and son-in-law, Windermere founder John W. Jacobi (left) simply ignored any complaints of fraud from Windermere victims, sending them straight to the lawyers. Yet despite claims of retirement, Jacobi is still indeed quite active at franchiser Windermere Services Company:

In Complaint 10-2-36192-8 SEA, filed in King County Superior Court on October 12, 2010, Windermere Services Company has sued former Windermere Puyallup Canyon Road owner Joe Maxwell for default on an “Unconditional Guaranty of Payment” promissory note. The Maxwell Answer and Counterclaims state that the “Plaintiff's [Windermere Services Company] claims are barred by Plaintiff’s fraud, duress, and unclean hands,” and alleges $4,000,000 in damages and violation of Washington's Franchise Investment Protection Act; and also that "The alleged Note and Guarantee are unconscionable and unenforceable." Maxwell's Counterclaims state "6. The WPCR Operating Agreement contains a provision granting Jacobi a special veto power which among other things, states that the company shall conduct its business and manage its affairs in accordance with the directions of Jacobi and all management decisions are subject to Jacobi’s review," and "13. In early 2006, WSC and Jacobi decided to open another WSC office in the territory in which WPCR was operating, despite the objections of Maxwell. As a result of the opening of this new WSC office, WPCR lost a significant number of its real estate agents and revenue that transferred to the new office in Graham, Washington," and "14. As a direct result of these actions taken by WSC and Jacobi, WPCR was left with a large debt burden and overhead, and WPCR’s revenue was significantly reduced... 22. On September 14, 2010, Maxwell heard from a real estate agent working at WPCR that the agent had received and email from WSC notifying him WPCR’s franchise had been terminated. This notice was sent to WPCR’s real estate agents before Maxwell learned of the termination of WPCR’s franchise." Read the complete report on this case here.

Jacobi's Washington Loan Company is also currently being sued for Intentional Misrepresentation—read that report here. And the Windermere affiliated service company, Commonwealth Land Title Company of Puget Sound, has recently been found negligent by a jury who awarded the third-party plaintiffs $1,190,000. Read the Commonwealth report here.

 

Current Governing Person and Windermere Services Company CEO Geoffrey P. Wood (left) is married to John W. Jacobi's daughter, Jill Jacobi-Wood. Wood is the chief architect of Windermere marketing fraud, inducing business volume through—among other fraudulent promotion—an express warranty of "The highest ethical standards. Uncompromising honesty and integrity." When called upon to honor his company's warranty, Wood instructs Demco lawyers—led by Matthew F. Davis–to sue vocal victims for libel and defamation. Wood is also a Governing Person of Windermere Relocation, the subject enterprise of Windermere's employee rape case. He was briefly a real estate sales person in 1994, but that license was CANCELLED in 1995, and Wood currently has no real estate license of any kind that WindermereWatch can find.

 

Governing Person Jill Jacobi-Wood (left), Windermere Services President, is a licensed real estate broker in Washington State, and as such is subject to the statutory condition of RCW 18.86.030 "(d) To deal honestly and in good faith." For her part in Windermere's marketing fraud and malfeasance, Jacobi-Wood's RE license should be cancelled by the Washington State DOL's real estate division. By promoting honesty and integrity—while in reality—she is suing and coercing Windermere victims to shutup about their Windermere experience, Jacobi-Wood is hardly dealing honestly and in good faith.

 

 

Governing Person John O'Brien "OB"Jacobi (left) is General Manager of franchiser Windermere Services Company and also has many Windermere realty brokerage offices. He's a licensed real estate broker who is also called upon by statutory law to "Deal honestly and in good faith." But John "OB" Jacobi instead promotes fraudulent claims of honesty and integrity, and falsely sues victims of Windermere misconduct for libel and defamation to intimidate them and coerce their silence. Then this junior Jacobi runs away and voluntarily dismisses his own mendacious lawsuit when a victim refuses to sign Windermere's dark clause settlement agreement that has cost the victimized party so much distress and money and to defend.

 

 

Windermere Services Governing Person and attorney—WSBA# 26636—Paul Drayna (left) has even more stringent ethical requirements placed upon him through his collateral professions of Lawyer and Notary Public; and Drayna is also bound by the Model Rules of Professional Conduct. But Mr. Drayna is not just practicing marketing fraud at Windermere. As Windermere in-house counsel, Drayna oversees Windermere's legal strategy of abusing process by falsely suing victims for libel and defamation, and then attempting to intimidate and coerce those victims out of their speech rights and into Windermere's Dark Clause silence agreement. When victims WON'T sign the Windermere Dark Clause, Drayna runs away too, and voluntarily dismisses his own company's lawsuit under Civil Rule 41—but only after first costing the victim thousands to defend the phony lawsuit. Drayna is even copied on the mendacious, Demco-authored settlement documents meant to quash speech rights and be signed by Windermere victims.

 

WINDERMERE'S DEMCO LAW FIRM: ESCHEWING ETHICS and DOING WHAT OTHER LAWYERS JUST WON'T DO

 

Attorney and multi-office Windermere broker John Demco (left) is the ethically-elastic Windermere kingpin lawyer who operates Demco Law, Windermere’s in-house legal firm, whose primary job is to stall and outspend small fry consumers damaged by dishonest Windermere brokers, agents and franchise owners. When an innocent real estate consumer has the misfortune to suffer one of Windermere’s many bad apples, Demco Law Firm will refuse to settle the matter forthrightly, no matter what conspicuously unlawful or offensive conduct the agent or broker has committed. Demco and Windermere will force the aggrieved party to sue or swallow their damage and go away—standard Windermere operating procedure.

 

WindermereWatch has compiled voluminous evidence that Windermere-Demco attorney Matthew F. Davis (left), WSBA# 20939, is the kind of lawyer about which jokes are coined. Davis is franchiser Windermere Services' frontline bully—the guy in the legal trenches actually wrecking lives, making threats, and suing victims who speak out. When Shakespeare was recommending "The first thing we do, let's kill all the lawyers," in Henry the Sixth, Part 2, he was talking about egomaniacal lawyers like Matt Davis.

Attorney Matt Davis of Windermere's Demco Law Firm is so unethical, so deceitful and intimidating, that he's famous in law circles. As Windermere-Demco's lead attorney, Matthew F. Davis is renown for his dishonesty, dubious legal tactics, lack of decency and disrespect for the rules of professional conduct. He will do absolutely anything to win—without regard for truth or justice. He will lie to courts and opposing parties. He will file fallacious and erroneous documents with the court. He will email opposing parties telling them not to hire a lawyer when he has just served them a lawsuit. He will call a judge's chambers and request more time without informing the opposing party. He will file orders for a bench trial when he knows a jury trial has been demanded and paid for. He will trick, stall, coerce, menace and threaten. He will invent and extend mendacious Windermere litigation and abuse the legal process for no other reason than to exhaust an opponent’s pocketbook. If he can, he will get YOUR attorney to quit—a favorite tactic.

Windermere, Davis and Demco Law will push a $5 cat poop case all the way to the state supreme court just to avoid paying damages—because it’s all in the Windermere operating budget. And in the end, Windermere and Davis will try to coerce silence about your Windermere experience by trying to make you sign a "settlement" agreement that terminates your speech rights, so you can't ever inform the public about your Windermere debacle. What if you DON'T sign that you'll shut up, and then SPEAK UP instead? Windermere-Demco's Matt Davis will sue you for libel and defamation, then run away and dismiss his own lawsuit on the eve of trial—because after all—you're telling the truth.

Windermere's Clear and Overt Marketing Fraud:

"THE HIGHEST ETHICAL STANDARDS. UNCOMPROMISING HONESTY AND INTEGRITY."

—The Windermere Real Estate Mission Statement

Windermere widely promotes its deceptive express warranty in sales documents and on the internet which states "We are committed to... The highest ethical standards. Uncompromising honesty and integrity." In other Windermere promotion, like the Puget Sound Business Journal, Windermere CEO Geoff Wood is quoted as saying "In the real estate business somebody's word is very important. If you say you're going to do something, you've got to do it." The article goes on to say, "Geoff oversees marketing, legal, financial and internet development services throughout the Windermere network..." Mr. Wood claims absolute dominion over both Windermere legal and internet strategy, making him chief architect of Windermere marketing fraud.

Effective reportage can be harsh in recounting facts, but it must be said in consideration of all the Windermere victims profiled here who truly sought Windermere's vaunted honesty and integrity, that Windermere Services CEO Geoffrey P. Wood is simply lying when he states his company's utterly false and fraudulent commitment to honesty and integrity. He both lies and deceives again when he says that "In the real estate business somebody's word is very important. If you say you're going to do something, you've got to do it." Wood clearly doesn't do what he says he's going to do—be committed to uncompromising honesty and integrity. Wood himself is indeed IN the real estate business and his word is absolutely no good at all. He sues victims of Windermere misconduct for trade libel and defamation to shut them up, and then he tries to use the legal system to suppress victims' speech rights when they ask him to actually perform on the warranty he promotes. As this website proves, Mr. Wood does anything BUT what he says he's gonna do. Far from providing victimized Windermere customers a commitment to high ethical standards, honesty and integrity, Wood and Windermere run away and hide behind their lawyers when innocent consumers are ruined by their Windermere experience.

John W. Jacobi, Geoff Wood, his wife Jill Jacobi-Wood, and governing cohorts John O'brien "OB" Jacobi and attorney Paul Drayna have gone to the absolute ends of the earth in stonewalling, ignoring, denying and fleeing any and all responsibility for Windermere wrongdoing and misconduct. When called upon by victimized Windermere consumers to make good on its warranty of honesty and integrity, Windermere even states in legal pleadings that Windermere agents are NOT agents of Windermere at all—but independent contractors. As the legally-designated Governing People and top managers of the Windermere empire who drive policy, ethics and market promotion, it demands repeating that John W, Jacobi, Geoff Wood, Jill Jacobi-Wood, John OB Jacobi and attorney Paul Drayna are all clearly lying when they promise high ethical standards and uncompromising honesty to the public and consumers of real estate services.

Protect your life, home, family and future by cancelling or not renewing your Windermere listing. Don't risk doing business with Windermere Real Estate, the brand built on lies, fraud and ruined lives. Refuse to fund public predator Windermere Real Estate with commission from the sale of your home.

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Is WindermereWatch.com of social benefit to consumers and the public? You decide:

Windermere Real Estate is one of our country’s largest real estate companies and widely promotes a fraudulent express warranty that states “We are committed to... The highest ethical standards. Uncompromising honesty and integrity.” The definition of an express warranty from Black's Law Dictionary is: "A warranty created by the overt words or actions of the seller. • Under the UCC, an express warranty is created by any of the following: (1) an affirmation of fact or promise made by the seller to the buyer relating to the goods that becomes the basis of the bargain."

But when customers are victimized by dishonest Windermere brokers and agents, and complain in writing through legal counsel to franchiser Windermere Services Company, it is absolutely silent in the face of clear and convincing evidence, and forces the customer to sue or go away. In many cases, unsuspecting consumer lives are thrown into complete chaos through costly litigation; and also because the subject homes may actually be uninhabitable or unserviceable for reasons about which Windermere knew and had a legal obligation to disclose—but did not. For some victims, the long and expensive litigation forced upon them even results in bankruptcy and homelessness. Despite their clear evidence, many victims go on to lose in court because they can't afford attorneys or have no legal experience, and Windermere exploits those impediments to endless advantage—lives, homes, and personal finances are ruined forever. And Windermere expects those victims to just go away without their lives and homes, merely for buying a house through Windermere Real Estate, innocently.

Although such irrefutable evidence of Windermere broker/agent misconduct has been presented to franchiser Windermere Services Company, it knowingly continues collecting commissions from dishonest agents and brokers by deliberately passing them on to other unwitting consumers. Just one example is Windermere S.C.A. Redmond's Paul Stickney, who received a $522,200 court judgment for not disclosing a conflict of interest, but is still producing commissions for his Windermere SCA franchise, and Windermere Services Company. Is that the "Highest ethical standards. Uncompromising honesty and integrity?" You may want to search and visit more websites about Windermere's predatory business conduct.

When victims use the media to report their Windermere experiences honestly, Windermere sues them for libel and defamation through false lawsuits to intimidate, silence, and hush bad PR—read one of those lawsuits here. It then tries to coerce victims into signing a “dark clause settlement agreement” that permanently terminates their speech rights—read some of those "settlement" agreements here. Through an expensive and emotionally distressing roller coaster ride with Windermere's nasty Demco lawyers, a victim of Windermere fraud is told they will be taken all the way to trial on trumped-up libel and defamation charges, and if they don't sign the dark clause, their life and future will be ruined. When a victim persists in refusing to sign, Windermere voluntarily dismisses its own lawsuit under Civil Rule 41, just before trial, after costing the victim years and yet thousands more to defend against the false action. This predatory legal tactic is known as abuse of process or malicious prosecution. In one example cited below, franchiser Windermere Services Company served an outspoken victim a lawsuit for libel and defamation, and then immediately sent them an email instructing that they "...need not hire an attorney," and further stating, “…we will try to resolve this directly and outside the legal system.”

Every Windermere office in every state is legally tied to franchiser Windermere Services Company's fraudulent express warranty, false advertising, predatory conduct and policies through privity and its pecuniary franchise agreement. Some legal observers believe that Windermere's conduct has RICO and Civil Rights violation implications. If you have recently purchased a Windermere franchise without having been disclosed Windermere's falling brand value, PR decline, and its adverse website problems, click here for its duty of disclosure under Federal Trade Commission rules. Proof that Windermere Services Company knew about WindermereWatch.com in March of 2007 is in this document.

Windermere Real Estate is a textbook corporate predator who operates franchises in Washington State, Oregon, California, Arizona, Nevada, Utah, Idaho, Montana, Hawaii and British Columbia. Windermere repeatedly makes the false claim that it has offices in Wyoming, but it does not. If you’re buying or selling property through ANY Windermere office, a percentage from your transaction will be used by franchiser Windermere Services Company to silence and financially ruin innocent parties who’ve encountered Windermere fraud. Windermere won't pay legitimate damages or acknowledge wrongdoing, and will stall settlement of cases all the way to state supreme courts, a legal strategy that Windermere routinely employs to bankrupt victims and exhaust their resources.

We believe the information presented here is of profound social benefit to consumers and the community, and we are dedicated to providing it.

THROUGH FEES AND COMMISSIONS PAID TO FRANCHISER WINDERMERE SERVICES COMPANY, EVERY WINDERMERE NETWORK OFFICE IN EVERY STATE IS AN ENTHUSIASTIC PARTNER AND KNOWING ACCESSORY TO WINDERMERE MARKETING FRAUD AND ITS PREDATORY POLICIES

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