"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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Maria Kalafatich of Windermere Professional Partners, Tacoma, Sued for Negligent Misrepresentation, Fraud and Fraudulent Concealment, Rescission, Violation of the Washington Consumer Protection Act, Professional Negligence / Violation of RCW 18.86.030.
Leslie Walters of Windermere Commencement Associates, Tacoma, Sued for Professional Negligence / Violation of RCW 18.86.030.
Defendants Windermere Professional Partners LLC and Windermere Commencement Associates INC. Sued for Vicarious Liability Under RCW 18.85.155 as Liable for the Tortius Conduct of Defendants Kalafatich and Walters
Complaint filed on May 6, 2009, in Pierce County, Washington; Notice Of Settlement filed on February 10, 2011—21 months later. "Defendant Walters and Commencement Associates Inc. Summary Judgment Motion To Dismiss All Of Plaintiffs Claims" filed on July 22, 2010, denied on August 20, 2010.
Above L to R: Windermere Professional Partners' Maria Kalafatich, who states on her Windermere web page that "My clients appreciate my integrity..." Windermere Commencement Associates' Leslie Walters. Windermere Commencement Associates owners David Sinding and Dick Beeson. Windermere Professional Partners owner Michael Robinson. Both Kalafatich and Walters are still working for their respective Windermere offices.
IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON
IN AND FOR THE COUNTY OF PIERCE
ANDREA FIGUEIRA, a single person, and SILVER LEGACY VENTURES, INC., a British Columbia, Canada corporation,
Plaintiffs,
v.
MARIA KALAFATICH and JOHN DOE KALAFATICH, and their marital community, LESLIE WALTERS and JOHN DOE WALTERS, and their marital community, COMMENCEMENT ASSOCIATES INC. d.b.a. WINDERMERE/COMMENCEMENT ASSOCIATES, a Washington corporation, PROFESSIONAL PARTNERS, LLC d.b.a. WINDERMERE/PROFESSIONAL PARTNERS, a Washington limited liability company,
Defendants.
NO. 09 2 08671 6
COMPLAINT FOR DAMAGES OR RESCISSION
1. PARTIES AND JURISDICTION
1.1 Plaintiff ANDREA FIGUEIRA is a resident of Pierce County, Washington.
1.2 Plaintiff SILVER LEGACY VENTURES, INC. is a British Columbia, Canada corporation, closely owned by Plaintiff ANDREA FIGUEIRA and family members Armando Figueira, Donzilla Figueira, Amanda Figueira and Alicia Figueira.
1.3 Defendant MARIA KALAFATICH is a resident of Pierce County, Washington. MARIA and JOHN DOE KALAFATICH are a Washington marital community. All acts or omissions of MARIA KALAFATICH alleged herein were by or for the benefit of the marital community.
1.4 Defendant LESLIE WALTERS is a resident of Pierce County, Washington. LESLIE and JOHN DOE WALTERS are a Washington marital community. All acts or omissions of LESLIE WALTERS alleged herein were by or for the benefit of the marital community.
1.5 COMMENCEMENT ASSOCIATES INC. d.b.a. WINDERMERE/ COMMENCEMENT ASSOCIATES is a Washington corporation and real estate brokerage company.
1.6 PROFESSIONAL PARTNERS LLC d.b.a. WINDERMERE/ PROFESSIONAL PARTNERS is a Washington limited liability company and real estate brokerage company.
1.7 The residential condominium unit that is the subject of this action is in Pierce County, Washington, and is commonly known as Unit E303 of the Gold Pointe Condominiums, 3008 N. Narrows Drive, Tacoma, Washington. Gold Pointe Condominiums are hereinafter referred to as "the Project," and Unit E303 of the Project is hereinafter referred to "the Residence."
1.8 The conduct of Defendants which is the subject of this action occurred in Pierce County, Washington.
1.9 Jurisdiction and venue are properly laid in the Superior Court of the State of Washington in and for Pierce County.
11. FACTS
2.1 At all times material hereto, KALAFATICH was a licensed real estate salesperson in the State of Washington, and was employed by broker PROFESSIONAL PARTNERS LLC as a real estate agent.
2.2 At all times material hereto, WALTERS was a licensed real estate sales person in the State of Washington, and was employed by broker COMMENCEMENT ASSOCIATES INC. as a real estate agent.
2.3 Plaintiffs are citizens of Canada, and are unfamiliar with Washington real estate law and practice, both in general and as pertains to condominium unit sales.
2.4 On or about January 9, 2008, a preliminary intrusive investigation of the physical condition of the concealed common elements of several of the Project's seven buildings was performed at the request of the Board of Directors of Directors of the Project's owners' association (“the HOA"). The investigation uncovered concealed water intrusion and extensive concealed dry rot in the framing, sheathing and other common elements and limited common elements of the Project.
2.5 On or about March 18, 2008, the Board of Directors of the HOA resolved to call a special meeting of the association to seek authorization to proceed with litigation against the developer of the Project for the construction defects revealed in the investigation.
2.6 On or about May 22, 2008, KALAFATICH, as owner of the Residence, contracted with SILVER LEGACY VENTURES, INC. and ANDREA FlGUEIRA to sell the Residence to ANDREA FIGUEIRA for the sum of $200,000. A true and correct copy of the purchase and sale agreement is appended hereto as Exhibit A.
2.7 "WINDERMERE" is identified as the listing broker below KALAFATICH's signature on the purchase and sale agreement between KALAFATICH and Plaintiffs. On information and belief, KALAFATICH availed herself of certain real estate services from defendant PROFESSIONAL PARTNERS-LLC d.b.a. WINDERMERE/ PROFESSIONAL PARTNERS to facilitate the sale of the residence, including but not limited to MLS listing, forms, email address and fax services.
2.8 In negotiating the terms of the purchase and sale agreement with Plaintiffs, KALAFATICH prepared, signed, and provided to Plaintiffs a completed NWMLS Form No. 17 disclosure, dated January 30, 2008. A true and correct copy of that Form 17 disclosure is attached hereto as Exhibit B.
2.9 KALAFATICH supplied the completed Form 17 disclosure for the Plaintiff’s guidance, and knew or should have known that it would be used by Plaintiffs to guide them in making the decision to purchase the Residence.
2.10 The Form 17 disclosure provided by KALAFATICH to Plaintiffs states that there are no defects in the siding, decks, windows, walkways, exterior walls or other portions of the Project.
2.11 The Form 17 disclosure provided by KALAFATICH to Plaintiffs is inaccurate in that there are serious and systemic defects in the Project common elements as noted. These misrepresentations and omissions were material to Plaintiffs' decision to purchase the Residence, and the price paid for it.
2.12 The purchase and sale agreement between KALAFATICH and the Plaintiffs states, at paragraph 7 of the General Terms: "If Seller provides Buyer with a disclosure statement pursuant to RCW 64.06 (Form 17) and if, in Specific Term No. 9, the parties agree that Buyer will have a remedy for economic loss resulting from negligent errors, inaccuracies, or omissions in Form 17, then Buyer may bring an action in tort for negligent misrepresentation against Seller based upon the disclosures in Form 17."
2.13 The purchase and sale agreement between KALAFATICH and the Plaintiffs states, in Specific Term No. 9, that "Buyer will have a remedy for Seller's negligent errors, inaccuracies, or omissions in Form 17."
2.14 KALAFATICH failed to take reasonable measures to determine the truth or falsity of the representations she made in the Form 17 disclosure.
2.15 In the alternative, before May 22, 2008, KALAFATICH knew of the intrusive investigation and concealed defective conditions in the Project common elements and limited common elements. KALAFATICH negligently or intentionally did not update her Form 17 disclosure, or otherwise communicate this knowledge to Plaintiffs.
2.16 Also in the alternative, before May 22, 2008, KALAFATICH knew of the Board of Directors' intention to pursue litigation against the developer of the Project. KALAFATICH did not communicate this knowledge to Plaintiffs.
2.17 In the Purchase and sale agreement with Plaintiffs, KALAFATICH promised to procure a legally required Resale Certificate from the Board of Directors of HOA.
2.18 Such a Resale Certificate, if procured, would have disclosed the existence of concealed defects in the Project common elements and limited common elements.
2.19 Such a Resale Certificate, if procured, would have disclosed the intention of the Board of Directors of the HOA to prosecute litigation for concealed construction defects against the developer of the Project.
2.20 KALFATICH knew or should have known that a properly completed Resale Certificate would disclose to Plaintiffs both the existence of defects and the HOA's intention to prosecute litigation; however, KALAFATICH failed to procure the required Resale Certificate prior to closing of the sale of the Residence to Plaintiffs.
III. FIRST CAUSE OF ACTION: NEGLIGENT MISREPRESENTATION
3.1 Plaintiffs reallege and incorporate by reference paragraphs 1.1 through 2.20 above.
3.2 KALAFATICH was negligent in obtaining or communicating the false information contained in the Form 17 disclosure.
3.3 Plaintiffs justifiably relied on the false information supplied by KALAFATICH in the Form 17 disclosure.
3.4 The false information supplied by KALAFATICH proximately caused the Plaintiffs to suffer damage.
3.5 Accordingly, KALAFATICH is liable to Plaintiffs for negligent misrepresentation pursuant to the terms of Exhibit B to Plaintiffs in an amount to be determined at trial, plus attorney fees and expenses pursuant to Paragraph "q." thereof.
IV. SECOND CAUSE OF ACTION AGAINST DEFENDANT KALAFATICH: FRAUD AND FRAUDULENT CONCEALMENT
4.1 Plaintiffs reallege and incorporate by reference paragraphs 1.1 through 3.5 above.
4.2 KALAFATICH intended Plaintiffs to rely on her false representations and omissions of material fact in their decision to purchase the Residence, and the price paid for it.
4.3 Plaintiffs had a right to rely on KALAFATICH's false representations and omissions of material fact, and did so rely.
4.4 The false information supplied by KALAFATICH, and her omissions of material fact, have proximately caused the Plaintiffs to suffer damage.
4.5 Accordingly, KALAFATICH is liable to Plaintiffs for fraud and/or fraud in the inducement of the purchase and sale agreement in an amount to be determined at trial.
V. THIRD CAUSE OF ACTION: RESCISSION
5.1 Plaintiffs reallege and incorporate by reference paragraphs 1.1 through 4.5 above.
5.2 Pursuant to Paragraph "aa." of the purchase and sale agreement (Exhibit A) for the residence, KALAFATICH agreed to provide Plaintiffs with a Resale Certificate by June 11, 2008, and agreed that Plaintiffs would have 5 days after providing the Resale Certificate to rescind the sale.
5.3 KALAFATICH has breached Paragraph "aa." of the purchase and sale agreement.
5.4 By reason of this breach, and by reason of KALAFATICH's fraud and/or misrepresentation in inducement of the purchase and sale agreement, Plaintiffs are entitled, as an alternative to award of damages, to rescission of the sale of the Residence.
VI. FOURTH CAUSE OF ACTION AGAINST DEFENDANT KALAFATICH: VIOLATION OF CONSUMER PROTECTION ACT
6.1 Plaintiffs reallege and incorporate by reference paragraphs 1.1 through 5.4 above.
6.2 KALAFATICH knew or should have known that a resale certificate would disclose both defects in the Project and planned litigation, and negligently or intentionally failed to provide a resale certificate to Plaintiffs.
6.3 KALAFATICH conduct constituted an unfair or deceptive act or practice.
6.4 KALAFATICH's actions in this regard were committed in her practice as a licensed real estate agent.
6.5 KALAFATICH's actions occurred in trade or commerce, and have an impact on the public interest.
6.6 KALAFATICH's actions have proximately caused injury to Plaintiffs in their business or property.
6.7 Accordingly, pursuant to Svendsen v. Stock, 143 Wn.2d 546 (2001) and Bloor v. Fritz, 143 Wn. App. 718 (2008), KALAFATICH is liable to Plaintiffs for violation of the Washington Consumer Protection Act, RCW 19.86, et seq., in an amount to be determined at trial, treble damages up to the statutory limits, and reasonable attorney fees.
VII. F1FTH CAUSE OF ACTION AGAINST DEFENDANT KALAFATICH: PROFESSIONAL NEGLIGENCE / VIOLATION OF RCW 18.86.030
7.1 Plaintiffs reallege and incorporate by reference paragraphs 1.1 through 6.7 above.
7.2 KALAFATICH violated RCW 18.86.030 by failing to exercise reasonable skill and care in the sale of the Residence in that she failed to disclose defects and planned litigation by the HOA, both of which she knew or should have known about, and neither of which were apparent or readily ascertainable by Plaintiffs.
7.3 KALAFATICH further violated RCW 18.86.030 in that she failed to deal honestly and in good faith with Plaintiffs.
7.4 As a proximate result of KALAFATICH's violations of RCW 18.86.030, Plaintiffs have suffered damage.
7.5 Accordingly, KALAFATICH is liable to Plaintiffs for violation of RCW 18.86.030 in an amount to be determined at trial.
VIII. SIXTH CAUSE OF ACTION AGAINST DEFENDANT WALTERS: PROFESSIONAL NEGLIGENCE / VIOLATION OF RCW 18.86.030
8.1 Plaintiffs reallege and incorporate by reference paragraphs 1.1 through 7.5 above.
8.2 WALTERS violated RCW 18.86.030 by failing to exercise reasonable skill and care in the sale of the Residence in that she failed to ensure that Plaintiffs were provided with a duly executed Resale Certificate from the Board of Directors of the HOA, which would have disclosed defects and planned litigation by the HOA.
8.3 WALTERS further violated RCW 18.86.030 by failing to require or recommend that KALAFATICH be required to supply an updated Form 17 disclosure statement.
8.4 As a proximate result of WALTERS' violation of RCW 18.86.030, Plaintiffs have suffered damage.
8.5 Accordingly, WALTERS is liable to Plaintiffs for violation of RCW 18.86.030 in an amount to be determined at trial.
IX. SEVENTH CAUSE OF ACTION AGAINST DEFENDANTS PROFESSIONAL PARTNERS LLC AND COMMENCEMENT ASSOCIATES INC.: VICARIOUS LIABILITY
9.1 Plaintiffs reallege and incorporate by reference paragraphs 1.1 through 8.5 above.
9.2 The tortious conduct of defendants KALATAFICH and WALTERS occurred within the course and scope of their employment as real estate sales persons for PROFESSIONAL PARTNERS LLC and COMMENCEMENT ASSOCIATES INC., or as actual or ostensible agents thereof.
9.3 Under RCW 18.85.155, as employers and as principals, defendants PROFESSIONAL PARTNERS LLC and COMMENCEMENT ASSOCIATES INC. are each, respectively, liable for the tortious conduct of defendants KALATAFICH and WALTERS.
9.4 Accordingly, PROFESSIONAL PARTNERS LLC and/or COMMENCEMENT ASSOCIATES INC. are liable to Plaintiffs in an amount to be determined at trial.
PRAYER FOR RELIEF
WHEREFORE, Plaintiffs pray for relief as follows:
1. For judgment for damages against defendant KALAFATICH for negligent misrepresentation and/or fraud and/or fraudulent concealment, and/or professional negligence;
2. Alternatively, for rescission of the sale of the Residence;
3. For judgment for damages and civil penalty against KALATAFICH for violation of Washington's Consumer Protection Act;
4. For an award of attorney fees and expenses against KALATAFICH pursuant to statute and contract;
5. For judgment for damages against WALTERS for professional negligence;
6. For judgment for damages and award of attorney fees against PROFESSIONAL PARTNERS LLC and COMMENCEMENT ASSOCIATES INC. according to proof;
7. For such other and further relief as the court deems just and equitable.
DATED this 13th day of March, 2009.
LEVIN & STEIN
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Leonard Flanagan, WSBA No. 2066
Justin Sudweeks, WSBA No. 28755
Daniel S. Houser, WSBA No. 32327
Attorneys for Plaintiffs
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• WINDERMERE SUED FOR UNFAIR TRADE PRACTICES •
Bennion & Deville Fine Homes, Windermere Real Estate Coachella Valley and Realtor Peggy Shambaugh, sued for Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Breach of Fiduciary Duty and Professional Negligence in $30 million-plus deal. Windermere Services sued for Breach of Fiduciary Duty, Professional Negligence and Unfair Trade Practices. Complaint alleges Windermere Services is an "unlicensed entity."
ALLEGATIONS FROM THE COMPLAINT: "Windermere Coachella was and is licensed by the State of California as a real estate broker, doing business as a real estate broker and operating an unlawful franchise arrangement with defendant Windermere Real Estate Services Company ("Windermere Services") from which both Windermere Coachella and Windermere Services have unlawfully split over a million dollars in commissions from real estate transactions within the State of California."
"(d) Windermere Coachella's unlawfully sharing real estate commissions with Windermere Services, an unlicensed entity, on not only the Echo Trail property transaction but also, on information and belief, various other real estate transactions with consumers other than Plaintiffs throughout the State of California, all in violation of California law. 66. On information and belief, Windermere Coachella (and its owner, operator, manager and alter ego Deville) and Windermere Services engaged in the above-mentioned acts for the purpose of injuring Plaintiffs and other prospective purchasers of real property similarly situated. By virtue of the conduct alleged herein, there is a likelihood of actual and pernicious confusion and an unfair and inequitable advantage for any real estate broker employing the aforementioned business model or device, and based on the unlawful, unfair and fraudulent practices of these Defendants, a permanent injunction should issue to prevent these Defendants from engaging in such unlawful and fraudulent conduct and restitution should be ordered from these Defendants of all unlawful commissions derived from the real estate transactions involving Plaintiffs."
Above L to R: Joseph R. "Bob" Deville and Bob Bennion of Windermere Services Southern California and
Bennion & Deville Fine Homes, Inc., Coachella Valley, California; and Peggy Shambaugh,
Realtor at Windermere Real Estate Coachella Valley, Indian Wells office.
FULL REPORT AND COMPLAINT HERE
Defendants Respond with Twenty-Six Affirmative Defenses in the
ANSWER OF PEGGY SHAMBAUGH, BENNION & DEVILLE FINE HOMES, INC., dba WINDERMERE REAL ESTATE COACHELLA VALLEY, WINDERMERE REAL ESTATE SERVICES COMPANY, and JOSEPH R. DEVILLE TO PLAINTIFFS' SECOND AMENDED COMPLAINT
READ THEIR ANSWER HERE
• AND IN ANOTHER CASE •
Bennion & Deville Fine Homes, doing business as Windermere Real Estate Coachella Valley, sued for Breach of Contract, Breach of Fiduciary Duty, Constructive Fraud, Breach of the Implied Covenant of Good Faith and Fair Dealing, and Unfair Trade Practices: "...Plaintiff discovered that the Baseline Property's fair market value, at the time Plaintiff purchased it, was only $80,000, or $230,000 less than Plaintiff had paid for it, on the advice of Windermere."
FULL REPORT AND COMPLAINT HERE
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Franchiser Windermere Services Company Files Breach of Contract Lawsuit against Lifestyles Services, all formerly Windermere Exclusive Properties. Windermere Services' Complaint states in part:
"Plaintiffs are informed and believe that defendants contend that the plaintiffs, in protecting their rights under the Franchise Agreements in light of defendants’ defaults, have somehow unlawfully interfered with defendants’ rights under the respective Franchise Agreements alleged in this Complaint. Plaintiffs dispute any such contention and allege that they have at all times acted properly and in accordance with the express terms of the Franchise Agreements and California law."
FULL REPORT AND COMPLAINT HERE
WINDERMERE SERVICES COUNTERSUED FOR TRADE LIBEL AND VIOLATION OF THE CALIFORNIA UNFAIR/UNLAWFUL COMPETITION LAW: Cross-Complaint filed by former Windermere Exclusive Properties franchisees alleges, "Cross-Defendants [Windermere Real Estate Services Company and Windermere Services Southern California] Engage in a Scheme to Disrupt and Destroy Cross-Complainants' Current Businesses and Future Business Endeavors"
ALLEGATIONS FROM THE CROSS-COMPLAINT: "17. From the time that the Cross-Complainants exercised their contractual right to terminate the Franchise License Agreement, and while Cross-Complainants were still operating as Windermere franchisees, Cross-Defendants engaged in a pattern of unlawful and predatory acts designed to specifically harm Cross-Complainants and destroy their businesses as Windermere franchisees and their future business endeavors. 18. Namely, Windermere SoCal actively solicited Cross-Complainants' agents and managers and did, in fact, hire some of these individuals away from Cross-Complainants. This act is specifically prohibited by Windermere. These newly retained agents and managers were hired away to work at a Windermere franchise that is owned or operated by Windermere SoCal and which was located 1/2 of a block across the street from one of Cross-Complainants' Windermere franchises."
REPORT AND CROSS-COMPLAINT HERE
SIMILAR CASE OF INTEREST: Maxwell Answer and Counterclaims allege: “Plaintiff's [Windermere Services] claims are barred by Plaintiff’s fraud, duress, and unclean hands.” $4,000,000 in Damages and Violation of Washington Franchise Investment Protection Act alleged: "16. After WPCR opened the Tacoma office as agreed, Jacobi and WSC agreed to the opening of another WSC franchise located only blocks away from WPCR’s Tacoma office. This was done without the knowledge or consent of Maxwell." and... "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 THIS REPORT HERE
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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.
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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 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 visit more websites about Windermere's predatory business conduct, like windermere-victims.com, windermere-gallery.com, and renovationtrap.com.
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