"Windermere is the most poorly managed, unethical and predatory real estate company in America—thoroughly dishonest and incompetent. Ethical agents are growing more reluctant to show Windermere listings, and potentially expose their clients to such catastrophic jeopardy. WindermereWatch.com is an indispensable internet news and opinion resource that provides hard evidence why consumers, agents and prospective realty franchisees should avoid Windermere Real Estate at all costs."

A public service consumer advocate reporting clear, compelling evidence of America's most dangerous and unethical corporate predator, Windermere Real Estate. When your home is listed for sale by Windermere, the resulting commission will fund Windermere's predatory legal strategies against other Windermere customers damaged by unscrupulous Windermere brokers, agents and franchise owners. 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.

ABOUT WINDERMEREWATCH.COM CONTENT: Various image and editorial WindermereWatch.com content is protected from copyright infringement by 17 U.S.C. § 107, Non-Commercial Fair Use. Learn more about Fair Use here. ALL legal documents, pleadings, and case summaries presented on WindermereWatch.com have been collected from public resources available to everyone. Challenges to WindermereWatch.com and/or Windermere Victims' First Amendment speech rights will be vigorously defended. FOR PROOF THAT WINDERMERE INTIMIDATES, THREATENS AND SUBMITS FALSE STATEMENTS TO WEBSITE HOSTING COMPANIES, CLICK HERE. ATTENTION LEGAL COMMUNITY: REVIEW OF WINDERMERE GENERAL COUNSEL, PAUL S. DRAYNA.

WINDERMERE PROPERTY MANAGEMENT COMPLAINTS & REVIEWS HOMESTREET BANK REVIEW DEMCO LAW FIRM REVIEW SUING OR LITIGATING WITH WINDERMERE REAL ESTATE? CLICK HERE VESTUS FORECLOSURE GROUP REVIEW WINDERMERE MORTGAGE SERVICES REVIEW CW TITLE REVIEWS

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CLICK TO WINDERMERE OFFICE & PERSONNEL LISTINGS IN WASHINGTON OREGON CALIFORNIA

THE COMPLETE WINDERMERE WASHINGTON LITIGATION HISTORY in comprehensive listings of Windermere Real Estate lawsuits from KING and PIERCE and SNOHOMISH counties, and all Washington counties where Windermere cases have been filed: Benton Chelan Clallam Clark Columbia Cowlitz Franklin Grant Grays Harbor Island Jefferson Kitsap Kittitas Lewis Mason Pacific Pend Oreille San Juan Skagit Spokane Stevens Thurston Wahkiakum Walla Walla Whatcom Whitman Yakima

Download the complete Windermere litigation history from ALL Washington counties here.

 

 

WINDERMERE SERVICES PART OF GRAND JURY/FBI INVESTIGATION IN CALIFORNIA...

...A NOTICE OF MOTION AND MOTION FOR PROTECTIVE ORDER FILED IN THE PRECEDING WINDERMERE COACHELLA CASE ON JULY 11, 2011, STATES: "A GRAND JURY AND FBI INVESTIGATION HAVE BEEN INSTITUTED TO DISCOVER WHETHER ANY CRIMINAL WRONGDOING AROSE OUT OF PLAINTIFFS' ALLEGATIONS IN THIS CASE." CLICK TO THIS REPORT

Franchiser Windermere Services Company Files Breach of Contract Lawsuit against previous franchisees Lifestyles Services Corporation, Lifestyles Services Solana Beach/RSF Corp., MRJR, Inc., all formerly Windermere Exclusive Properties. STORY 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. NOTICE OF DISMISSAL BY COURT on 06/01/2012.

 

 

 

 

 

 

24 FORMER WINDERMERE CALIFORNIA OFFICES DROP THE WINDERMERE BRAND:

(1) Former Windermere Real Estate Bay Area, Berkeley, CA, office has become a Keller Williams Realty office.

(2, 3, 4 and 5) Former Windermere Real Estate Welcome Home, with locations in Castro Valley, Livermore, Pleasanton, and San Ramon, CA, have all become Prudential Real Estate Affiliates.

(6) Former proprietor of Windermere Silicon Valley Properties, Mountain View, CA, has moved to The Sereno Group.

(7) Windermere North State Properties, Redding, CA, has gone out of business.

(8 and 9) Former Windermere Dunnigan Realtors of Sacramento, CA, with locations in American River and Land Park has become Dunnigan Realtors.

(10 and 11) Former Windermere Pacific Coast Properties, CA, with locations in La Mesa and San Diego have joined the Sotheby’s International Realty Network.

(12) Former Windermere Property Professionals of Tracy, CA, have become RE/MAX Property Professionals.

(13) Former Windermere Placer County Properties of Auburn, CA, has become Gold Country Realty.

(14 and 15) The former Carlsbad Village Windermere Exclusive Properties has become Real Living Lifestyles Carlsbad Village; and the former Carlsbad Village Faire Windermere Exclusive Properties has become Real Living Lifestyles Carsbad Faire.

(16) Former Windermere Exclusive Properties Escondido has become Real Living Lifestyles Real Estate, Escondido.

(17) Former Windermere Exclusive Properties La Costa / Encinitas has become Real Living Lifestyles La Costa / Encinitas Real Estate.

(18) Former Windermere Exclusive Properties Rancho Bernardo has become Real Living Lifestyles Rancho Bernardo Real Estate.

(19) The former Windermere Exclusive Properties Rancho Santa Fe has become Real Living Lifestyles Rancho Santa Fe / Fairbanks Ranch Real Estate.

(20) Former Windermere Exclusive Properties San Diego — Carmel Valley / La Jolla has become Real Living Lifestyles Carmel Valley Real Estate.

(21) The former Windermere Exclusive Properties Solana Beach has become Real Living Lifestyles Solana Beach Real Estate.

(22) Internet predator and former Windermere Preferred Living of Brea, California, has gone out of business.

(23) Former Windermere Signature Properties of downtown San Diego, California, has dropped the Windermere brand and is now operating as Pacific Sotheby's International Realty.

(24) Former Windermere Yucca Valley, CA, has dropped the Windermere brand and is now Realty Professionals.

 

RE/MAX Files Registration Statement for Proposed Initial Public Offering: (Denver, CO) – RE/MAX, one of the world’s leading franchisors of real estate brokerage services, today announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of its common stock. MORE HERE

Windermere Real Estate Aberdeen, Washington, changes ownership to Travis and Jill Jelovich. CLICK HERE FOR DETAILS

DOORS CLOSED and OUT OF BUSINESS: WINDERMERE PREFERRED LIVING, BREA, CALIFORNIA, CLAIMS TO BE WINDERMERE "PREFERRED PROPERTIESTM" IN FALSE AND PREDATORY WEBSITE TAKE-DOWN LETTER, WHILE SIMULTANEOUSLY BEING SUED FOR USING THE "PREFERRED PROPERTIES" PHRASE.

 

THE FORMER WINDERMERE SIGNATURE PROPERTIES OF DOWNTOWN SAN DIEGO DROPS THE WINDERMERE BRAND AND BEGINS OPERATION WITH PACIFIC SOTHEBY'S INTERNATIONAL REALTY.

 

WINDERMERE REAL ESTATE ANNOUNCES A CHANGE OF OWNERSHIP FOR THE MOSES LAKE, WASHINGTON, OFFICE

Heather Adkinson and Barry Lawson (at left, respectively) take over as co-owners of Windermere Real Estate K-2 Realty. “We are excited to start this new chapter with Windermere,” comments Adkinson..." and “Our team is ready to share exceptional service, commitment to excellence, and high integrity with our community” notes Lawson."

Windermere Real Estate K-2 Realty is located at 2900 W Broadway, Moses Lake, WA, and currently houses 15 agents: April Adams, Heather Adkinson, Sierra Becken, Walt Bumgarner, Jane Doe, Sandy Eslick, Lisa Garmon, Lynn Garza, Tammy Garza, Lisa Hanley, Norman & Lisa Hanley, Jay Kincaid, Lois Kincaid, Ralph Kincaid, Barry Lawson, Susan McMillan, Vivian Richard, Denise Varney, Pat Wold. GET MORE INFO and THE GRANT COUNTY, WASHINGTON, WINDERMERE K2 LAWSUIT LISTINGS HERE.

 
 

 

 

CONSUMERS ARE URGED TO EXERCISE CAUTION IN THEIR SELECTION OF REAL ESTATE SERVICES...

What everyone who is currently doing business with Windermere Real Estate—or what anyone who is CONSIDERING doing business with Windermere Real Estate—should know about this predatory and consumer-abusive company:

In most cases, your home is the single biggest and most important investment you will ever make. Your ability to afford a home, and your home itself, are at the core of your happiness and human survival. If you can, just imagine for a moment what it would mean to lose your home; or what it would mean to lose the financial resources you’ve toiled so hard to earn—that allow you to own a home. This website is about the many individuals who have actually lost their homes or financial resources—or both—because they had the misfortune to deal with public predator Windermere Real Estate. And the cases presented here are only the ones we KNOW about—we’re finding more all the time. Please consider this next information VERY carefully, for how diligently you consider it may determine if you are willing to risk losing EVERYTHING you have ever worked for, including your home itself.

There are plenty of deceitful Realtors out there, Realtors who are willing to ruin your whole life just to make a buck. Have you ever thought about what might happen if something goes wrong with your home transaction? Most of the national brand real estate companies have policies in place to address agent or broker misconduct, but not Windermere Real Estate—it’s privately held by a single family, with no stockholders.

After all, your home is not a shirt from Macy’s you can return under a well-mandated return policy. It’s true that most home sales and purchases go smoothly, but have you ever asked yourself… “Who will be responsible if I end up with a crooked real estate agent who lies, or who doesn’t disclose something awful they know about the property I’m buying? Who will be responsible if I’m dealing with some agent who’s running a financial scam they’re not revealing? Who will be responsible if my agent is in cahoots with a dishonest seller, or is conspiring with an inspector who looks the other way at serious problems so the agent will recommend him again?”

The answer is, in most cases, it’s the franchise owner and/or the broker to whom the agent is licensed, that is responsible for agent malfeasance. And nobody would be willing to buy a Windermere franchise, or be a Windermere broker, if they’d actually end up being legally responsible for all the damage a dishonest Realtor will cause, because that damage is not done to a simple shirt from Macy’s that you can return: THAT DAMAGE IS DONE TO SOME INNOCENT AND UNSUSPECTING HUMAN BEING’S HOME, LIFE and FINANCIAL FUTURE.

If you're a buyer and some variety of agent misconduct has occurred, the subject property may not be habitable for various reasons, which will turn your life upside down, fast. There’s enormous money and emotional distress at stake. And there will be lawyers, lots of lawyers. Windermere Real Estate employs and profits on so many corrupt franchise owners, brokers and agents, that it maintains its own fulltime, in-house legal services, the Demco Law Firm. If you think for one moment that when your Windermere home deal goes bad, your Windermere broker or franchise owner is going to run over, apologize, and ask what they can do to help you, you’ve got another, very serious think coming. When your Windermere agent crosses over the Realtor code of ethics line, YOU AND YOUR HOME BECOME THE ENEMY.

That broker and/or franchise owner are legally on-the-hook for their agent’s misconduct, and the Windermere Legal War Machine will come down on you like a supersonic ton of bricks. If Windermere did not provide its franchise clients such hardcore legal resources, nobody would even BE a Windermere broker or franchise owner—the exposure is too great. And make no mistake, Windermere will do nothing—and spend nothing—to settle your problem amicably, no matter what indecency the agent or broker has committed. Windermere will force you to sue. Windermere's much-ballyhooed and heavily promoted commitment to "The highest ethical standards. Uncompromising honesty and integrity," is nothing but a marketing lie designed to induce business volume.

Windermere's Demco Law Firm is so unethical, so deceitful and intimidating, that it’s famous in law circles. Its 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 costly, 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—while your legal expenses will be coming out of your savings, retirement account, home equity or credit cards, if you even have those resources. And in the end, Windermere/Davis/Demco will try to coerce silence about your bad Windermere experience by forcing you into signing a legal "settlement" agreement that terminates your speech rights, so you can't ever tell anybody or inform the public about your Windermere debacle. When you sign, they'll let you out of the bogus lawsuit.

Don't be fooled when your particular local Windermere office says "Oh... OUR Windermere franchise doesn't work that way." Every Windermere franchise in every state pays a portion of every commission to franchise policy-maker Windermere Services Company, and its legal war chest. If you are dealing with Windermere Real Estate, you are unwittingly being duped into funding Windermere's financial genocide against other damaged Windermere customers.

If anything does indeed go wrong with your Windermere home transaction—like it has for so many—you may never recover. When these profoundly devastating problems occur, the resulting irreversible human toll of precious time, money and brutal emotional distress will forever ruin your life and future. If you are considering doing business with Windermere Real Estate, think VERY carefully about doing so.

REMEMBER: IF SOMETHING GOES WRONG WITH YOUR WINDERMERE DEAL, IT'S FAR EASIER—AND CHEAPER—FOR WINDERMERE LAWYERS TO STALL AND SLOWLY WASTE YOUR ENTIRE NET WORTH ON LITIGATION, THAN IT IS FOR WINDERMERE TO STEP UP AND MAKE YOU WHOLE.

 

WINDERMERE'S PRIVITY ARGUMENT

DO YOU HAVE A LEGAL DISPUTE WITH WINDERMERE REAL ESTATE? YOU MAY BE ABLE TO ADD FRANCHISER WINDERMERE SERVICES COMPANY TO YOUR COMPLAINT.

Franchiser Windermere Services Company prevailed in a motion in which it has admitted that it is in tradename privity with its Windermere network owner franchisees. (Access the motion here)

Are you suing or litigating against Windermere Real Estate? Are you the victim of a dishonest Windermere agent, broker, or franchise owner who is forcing you to sue to recover honest damages? Franchiser Windermere Services Company has prevailed in a motion in which it has admitted that it is in tradename privity with its franchisees, which may allow you to add  Windermere Services and/or the entire Windermere Real Estate Network of franchise owners to your complaint. Ask your lawyer. Read what follows here, then print out Windermere’s Motion for Partial Summary Judgment and take it to your legal counsel, or send your legal counsel the link to this story.

In King County Superior Court case number 05-2-34433 SEA, to dispose of a defendant’s counterclaims in their  defamation and trade libel lawsuit of intimidation brought against a buyer who publicized Windermere lies and its refusal to honor its public commitment to the “highest ethical standards, uncompromising honesty and integrity,” franchiser Windermere Services Company and franchisee broker Windermere Real Estate/Northeast—and their lawyer, Matthew Davis of Demco Law Firm—argued in a motion for partial summary judgment that “It is true that Windermere Services Company was not itself a party to the first lawsuit, but as the owner of the Windermere tradename, it is in privity with Windermere Real Estate/Northeast.”

Black’s Law Dictionary defines privity as:

privity (priv-e-tee) 1. The connection or relationship between two parties, each having a legally recognized interest in the same subject matter (such as a transaction, proceeding, or piece of property); mutuality of interest <privity of contract>

The court agreed with Windermere’s argument and granted its motion. But when it was clear Windermere would face a jury, it voluntarily dismissed its own lawsuit under CR 41, after first pressuring the defendant without success to be silent and sign away his protected speech rights.

While this writer is not an attorney or legal expert, and this news coverage is not intended in any way to be legal advice, it has been noted that privity works both ways, and suggested that the court’s ruling on Windermere tradename privity could be interpreted or construed to mean that Windermere Services Company shares automatic mutual liability for any harmful act or violation of law committed by any Windermere franchisee broker, because the parties share the same tradename; and/or that ALL Windermere Network franchisee brokers share automatic mutual liability for ANY OTHER Windermere Network franchisee broker’s harmful act or violation of law, through sharing the same tradename. When you are damaged by any Windermere broker or agent, the entire Windermere Network may now be mutually liable.

ALTERNATIVE SERVICE PROVIDERS:
• COLDWELL BANKER
• CENTURY 21
• JOHN L. SCOTT
• RE/MAX
• PRUDENTIAL
• KELLER WILLIAMS
• HELP-U-SELL
• ASSIST-2-SELL

 

_______________

 

 
Smart Consumer SideBar:
 
Read the FINANCIAL CRIMES ENFORCEMENT NETWORK REPORT...

"SUSPECTED MONEY LAUNDERING IN THE RESIDENTIAL REAL ESTATE INDUSTRY"

Courtesy of www.FinCEN.gov
Download this important info here.

AGGRESSIVE, HARDBALL LEGAL TACTICS:

WINDERMERE ABUSES THE LEGAL PROCESS THROUGH FILING FALSE AND MENDACIOUS LAWSUITS TO INTIMIDATE, BANKRUPT, SILENCE AND COERCE DAMAGED CUSTOMERS OUT OF THEIR CONSTITUTIONAL SPEECH RIGHTS

REALTY GIANT DEMANDS "DARK CLAUSE SETTLEMENT AGREEMENTS" THAT TERMINATE DAMAGED CUSTOMER SPEECH RIGHTS, BUT THEN RUNS AWAY AND VOLUNTARILY DISMISSES ITS OWN LAWSUIT WHEN VICTIMS WON'T SIGN...

As WindermereWatch proves, there are many Windermere victims—more all the time—and when those victims use the media to complain and warn others, franchiser Windermere Services Company and local franchise owners sue them for libel and defamation through specious lawsuits that are intended to intimidate and silence. Read one of the phony lawsuits here.

Then Windermere tries to coerce victims into signing a “dark clause settlement agreement” that permanently terminates their speech rights.

In the Mark and Carol DeCoursey case dark clause, Windermere even tried to dictate what the DeCourseys could say to other individuals in simple conversation: "The DeCourseys agree that they shall not communicate with any person about their dispute with Windermere unless asked, and if asked, will only state that they have resolved their claim to their satisfaction." Read the DeCoursey Case Dark Clause here.

And in another of its dark clauses, Windermere required "...that he will cease all efforts of any kind (c) to publicly state opinions or beliefs about Windermere Real Estate." Read the Kruger Case Dark Clause here.

This predatory legal tactic is known as abuse of process or malicious prosecution. When a victim refuses to sign, Windermere runs away and voluntarily dismisses its own lawsuit under Civil Rule 41—just before trial, after costing the victim years of distress and yet thousands more to defend against the false action.

In one example, franchisor Windermere Services Company served an outspoken victim a fallacious 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." Incredibly, Windermere implements both the aggression and arrogance to overtly and unabashedly order that a damaged customer it has falsely sued be unrepresented by counsel and resolve their dispute outside the very same legal system in which Windermere has brought suit against them.

In this day and age it all sounds so inconceivably Orwellian—but it's true.

"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

 

Montana Supreme Court Reverses the Partial Summary Judgment of Windermere Helena Broker Rick Ahmann's "Acquiron" Real Estate and Business Brokerage After Elderly Victim Seeks Damages of $4,635,485.51—Claims Unlawful Sale of Securities, Negligence and Fiduciary Breach

 

Above left: Windermere Helena Broker Rick Ahmann says on his Windermere web page, "With total focus on your goals, Rick and his team apply unique solutions to every situation, guiding you in the right direction to allow you to make informed and educated decisions regarding your most valuable investment."

"The examiner found that DBSI was running a Ponzi scheme."

1 Petitioner Billie L. Redding (Redding) asks this Court, pursuant to M. R. App. P. 14, to exercise supervisory control over the First Judicial District Court, Lewis and Clark County, and to conclude it was error for the District Court to grant partial summary judgment to Defendants Timothy Janiak; Anderson ZurMuehlen & Co., P.C.; Ray E. Petersen; and Rick Ahmann (collectively "AZ").

4 Acquiron was a subsidiary of Anderson, formed with Rick Ahmann (Ahmann), a real estate broker. Ray E. Petersen (Petersen), a CPA and former shareholder at Anderson, was Anderson's representative in Acquiron. Acquiron sold Tenants-In-Common investments (TICs) to clients of Anderson. A TIC investment is, generally speaking, a joint investment in real property, in this case commercial property, where each owner owns an undivided share of the property. The TICs involved in Redding's case were initially owned by DBSI Housing, Inc. (DBSI) or one of its hundreds of affiliates.2

11 After the colossal collapse of DBSI, Redding sued AZ in 20095 alleging: (1) unlawftil sale of securities; (2) negligence; (3) negligent misrepresentation; (4) breach of fiduciary duty; (5) breach of contract; and (6) tortious breach of the covenant of good faith and fair dealing. Redding sought damages in the amount of $4,635,485.51, plus additional amounts for punitive damages, emotional distress, loss of established course of life, and consequential damages.

DOWNLOAD A PDF COPY OF THE COURT'S OPINION HERE

A NOTICE OF SETTLEMENT WAS FILED ON JULY 5, 2012

DOWNLOAD A SYNOPSIS OF THE OPINION HERE

_______________________

FILED

July 6 2012

Ed Smith

CLERK OF THE SUPREME COURT

STATE OF MONTANA

 

 

IN THE SUPREME COURT OF THE STATE OF MONTANA

 

2012 MT 144A

_______________________________________

 

BILLIE L. REDDING,

Petitioner,

 

v.

 

MONTANA FIRST JUDICIAL DISTRICT COURT, THE HONORABLE DOROTHY McCARTER, Presiding,

 

Respondent.

 

______________________________________

 

 

ORIGINAL PROCEEDING:

 

Writ of Supervisory Control

In and For the County of Lewis & Clark, Cause No. ADV 09-649

Honorable Dorothy McCarter, Presiding Judge

 

 

COUNSEL OF RECORD:

 

For Petitioner:

Linda M. Deola (argued), Morrison, Mod & Sherwood, PLLP, Helena, MT

 

For Respondent:

P. Brad Condra (argued), G. Patrick HagEstad (argued), Milodragovich, Dale, Steinbrenner & Nygren, P.C., Missoula, MT

 

For Amicus:

Jesse Laslovich, Jameson C. Walker, Brett O'Neil, Office of the Commissioner of Securities and Insurance, Helena, MT

_____________________________________

 

 

Argued: April 25, 2012

Submitted: April 26, 2012

Decided: July 5, 2012

Amended: July 6,2012

 

 

Justice Michael E Wheat delivered the Opinion of the Court.

 

1 Petitioner Billie L. Redding (Redding) asks this Court, pursuant to M. R. App. P. 14, to exercise supervisory control over the First Judicial District Court, Lewis and Clark County, and to conclude it was error for the District Court to grant partial summary judgment to Defendants Timothy Janiak; Anderson ZurMuehlen & Co., P.C.; Ray E. Petersen; and Rick Ahmann (collectively "AZ").

 

BACKGROUND

 

2 For the purposes of this Opinion, the facts are not materially disputed. Redding is a 76 year old widow' with a high school education. Redding worked the majority of her adult life on family ranches. In 2004, Redding sold her ranch for approximately 3.3 million dollars. Seeking to avoid tax liability on the sale, and provide income for life for herself and her son, Redding sought advice from her accountant, Timothy Janiak (Janiak).

 

3 Janiak, a Certified Public Accountant (CPA), had been Redding's accountant for approximately 20 years and was a shareholder at the accounting firm Anderson ZurMuehlen & Co. ("Anderson"). Janiak assisted Redding in the sale of her ranch, and Redding sought his advice to invest the proceeds of the sale. To help Redding achieve her financial goals, Janiak steered Redding to a company called Anderson ZurMuehlen Real Estate and Business Brokerage, LLC, d/b/a Acquiron.

 

_________________________

1During the events leading up to the lawsuit, Redding was in her late 60s and early 70s.

           

 

4 Acquiron was a subsidiary of Anderson, formed with Rick Ahmann (Ahmann), a real estate broker. Ray E. Petersen (Petersen), a CPA and former shareholder at Anderson, was Anderson's representative in Acquiron. Acquiron sold Tenants-In-Common investments (TICs) to clients of Anderson. A TIC investment is, generally speaking, a joint investment in real property, in this case commercial property, where each owner owns an undivided share of the property. The TICs involved in Redding's case were initially owned by DBSI Housing, Inc. (DBSI) or one of its hundreds of affiliates.2

 

5 DBSI would acquire title to real property then sell the same property in shares to a number of investors. DBSI would then require the new owners to execute several agreements, including a lease agreement with DBSI in which the owners leased the property back to DBSI as "master tenant," and a TIC agreement with the other owners. The owners also assumed a pro rata share of the debt DBSI incurred in acquiring the real property.

 

6 DBSI, as "master tenant," would then lease the properties to commercial tenants, acting as a property manager for the owners. DBSI would pay the expenses of operating each property. According to the "NNN Plus Lease" summary provided by DBSI to potential investors, Redding and the other owners did not have to invest "the personal time and effort involved in operating the property and in dealing with multiple tenants."

 

________________________

2 In a statement made by DBSI through its bankruptcy attorneys, it acknowledges that it has "hundreds of companies" as affiliates. For simplicity, we will refer to DBS1 only, although several affiliated entities, including FOR 1031, are involved in this case.

 

Rather, as DBSI advertized, "the management responsibilities of the TICS will simply consist of dealing with the NNN PLUS Lessee and receiving and depositing a monthly lease payment from the Lessee."

 

7 In return for the owners' investment, DBSI promised a 6% - 7% per year rate of return on each owner's investment, with annual increases of approximately 3%. These promised returns were from the lease payments DBSI collected on the properties. DBSI would keep any profits above the promised rate of return to investors.

 

8 Ultimately, Redding purchased four DBSI TICs via 1031 exchanges in 2004.3 The 1031 exchanges allowed Redding to avoid tax liability on the sale of her ranch, and, in theory, the newly purchased properties would provide the income she sought. Redding's purchases were brokered by Acquiron. Using the proceeds of the ranch sale and other assets, Redding paid approximately $4.6 million for the properties, which includes approximately $2.2 million cash and $2.4 million of assumed debt on the properties.

 

9 DBSI's scheme collapsed and it stopped making payments to investors in 2008, and filed for bankruptcy. In response to petitions from the states of Idaho and Montana, the bankruptcy court appointed an examiner to investigate the finances of DBSI and its various affiliates. The examiner found that DBSI was running a Ponzi scheme.4

 

________________________

3A 1031 exchange is named after § 1031 of the Internal Revenue Code, or 26 U. S.C. § 103 1. This section allows, with some exceptions, an individual to avoid paying taxes on the sale of "property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind whidi is to be held either for productive use in a trade or business or for investment." 26 U.S.C. § 103 1 (a)(1).

 

4We have defined a Ponzi scheme as "a fraudulent investment arrangement in which returns to investors are not paid from any "profits" of an underlying business venture, but from monies obtained from later investors. The fraud consists of funneling proceeds received from new investors to previous investors in the guise of profits from the alleged business venture, thereby cultivating an illusion that a legitimate profit-making business opportunity exists

 

10 In a related complaint brought by the bankruptcy trustee against DBSI's Idaho attorneys, the trustee alleged that, "[i]n November 2008 ... [t]ens of thousands of [DBSI] investors learned that they had lost everything. The docket of the Bankruptcy Court is crowded with letters from individual investors telling of lost savings accumulated in some cases through the efforts of generations."

 

11 After the colossal collapse of DBSI, Redding sued AZ in 20095 alleging: (1) unlawftil sale of securities; (2) negligence; (3) negligent misrepresentation; (4) breach of fiduciary duty; (5) breach of contract; and (6) tortious breach of the covenant of good faith and fair dealing. Redding sought damages in the amount of $4,635,485.51, plus additional amounts for punitive damages, emotional distress, loss of established course of life, and consequential damages.

 

12 Redding moved for summary judgment on several issues, however the only issue relevant here is "[w]hether or not the DBSI TICs sold to [Redding] are securities under the Securities Act of Montana[.]" AZ also moved for summary judgment on the same issue. After briefing, the District Court found the DBSI TICs were not securities under Montana law. In an August 9, 2011, order, the District Court found that "Redding did not engage in a common enterprise," an essential element of an investment contract (i.e. a security), because she "did not share the risks of the investment with other investors

 

___________________________________

and inducing further investment. As a result of the absence of sufficient (or any) assets able to generate funds necessary to pay the promised returns, the success of such a scheme guarantees its demise because the operator must attract more and more funds, which thereby creates a greater need for funds to pay previous investors, all of which ultimately causes the scheme to collapse." Mosley v. American Express Financial Advisors, Inc., 20 10 MT 78, T 3 n. 1, 356 Mont. 27, 230 P.3d 479. DBSI denies it ran a Ponzi scheme.

 

5Her complaint was amended three times. These allegations are from the Third Amended Complaint.

 

 

because she agreed upon a contractually set return on her investment." The District Court stated the "keystone" of a common enterprise is "risk and fluctuation with the return on the investment." Because Redding "wanted 'zero risk[,]' " the District Court found the TICs were not securities under Montana law.

 

13 On September 23, 2011, Redding filed her Petition for Writ of Supervisory Control ("Petition"). AZ moved to stay the proceedings in District Court, pending the outcome of Redding's Petition. The District Court granted AZ's motion over Redding's objection. Redding's Petition presents one issue, we restate as follows:

 

14 Did the District Court err in holding that the TICs at issue are not securities under the Securities Act of Montana?

 

DISCUSSION

 

15 Before reaching the merits of Redding's Petition, we must determine whether the exercise of supervisory control is appropriate.

 

            A. Is Supervisory Control Appropriate?

 

16 By virtue of Article VII, Section 2(2) of the Montana Constitution, this Court has “general supervisory control over all other courts.” Stokes v. Montana Thirteenth Judicial District Court, 2011 MT 182, 5, 361 Mont. 279, 259 P.3d 754. Supervisory control is an extraordinary remedy, reserved for extraordinary circumstances. Stokes, T 5. We consider the propriety of supervisory control on a case-by-case basis. Stokes, 5.

 

17 Rule 14(3) of the Montana Rules of Appellate Procedure governs petitions for writs of supervisory control:

 

The supreme court has supervisory control over all other courts and may, on a case-by-case basis, supervise another court by way of a writ of supervisory control. Supervisory control is an extraordinary remedy and is sometimes justified when urgency or emergency factors exist making the normal appeal process inadequate, when the case involves purely legal questions, and when one or more of the following circumstances exist:

(a) The other court is proceeding under a mistake of law and is causing a gross injustice;

(b) Constitutional issues of state-widi importance are involved;

(c) The other court has granted or denied a motion for substitution of a judge in a criminal case.

 

18 “This Court will assume supervisory control of a district court to direct the course of litigation where the district court is proceeding based upon a mistake of law, which if uncorrected, would cause significant injustice for which an appeal is an inadequate remedy. Truman v. Montana Eleventh Judicial District Court, 2003 MT 91, 13, 315 Mont. 165, 68 P.3d 654. Judicial economy and inevitable procedural entanglements are appropriate reasons to exercise supervisory control where a mistake of law will affect virtually all aspects of the case: the costs, the course of discovery, settlement negotiations, and the trial itself. Truman, T15; Stokes, 6. In such cases, any verdict rendered would be "questionable" and would inevitably lead to further costs and litigation. Truman, 15.

 

19 Redding argues that supervisory control is appropriate because the District Court's order is a clear mistake of law, and is in direct conflict with the precedent of the United States Supreme Court and the opinions of the Montana Commissioner of Securities and Insurance, the Securities Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA) (formerly known as National Association of Securities Dealers (NASD)). If allowed to stand, Redding argues the ruling will create an “environment ripe for securities fraud” in Montana, and supervisory control is required to prevent significant injustice to Redding and all citizens of Montana.

 

20 AZ appeared for the District Court, and argues that supervisory control is inappropriate because the appeal process is an adequate remedy. At oral argument, AZ also argued that exercising supervisory control in this case will "open the floodgates" of interlocutory appeals and lead to the granting of innumerable petitions for writs of supervisory control.

 

21 We first address AZ's "floodgate" argument. AZ is simply incorrect, as this Court's publicly available statistics show.6 In 2011, 58 petitions for writs of supervisory control were filed; 7 were granted. The highest number of granted petitions for writs of supervisory control in recent years was 12 out of 50 in 2009. The lowest number (in the publicly available statistics) was 1 out of 33 in 2006. The floodgates have simply not opened. This argument is entirely without merit.

 

22 On the merits of Redding's petition, we find that exercising supervisory control is appropriate in this case. There appear to be no facts in dispute that are material to the contested legal issue—whether the TICs constitute securities under Montana law. Like Truman, Stokes, and other cases in which we have exercised supervisory control, this is an issue of law that drives how the case proceeds through trial. Resolution of the issue

 

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6These statistics are available to all members of the public here: These statistics are available to all members of the public here: http://courts.mt.gov/clerk/stats/default.mcpx. Simply click on the heading "Original Proceedings Detail — 2011.” Statistics for the years 2004-2010 are also available from this page.

 

will avoid the "costs and delay associated with the ftill re-trial almost certain to result if the district court's interpretation of the statute is set aside." Stokes, 8. If incorrect, the District Court's ruling would deny Redding, and others similarly situated7, the protections of the Securities Act of Montana. Redding's cause of action for unlawful sale of securities would be forfeited, along with the specific remedies that accompany such a claim, including rescission and damages allowable under the Act. This in turn would affect all aspects of Redding's remaining case. We conclude that the District Court's ruling would cause a significant injustice for which an appeal is an inadequate remedy, and that justice requires this Court to exercise supervisory control.

 

            B. Did the District Court err in holding that the TICs at issue are not securities under the Securities Act of Montana?

 

23 The Securities Act of Montana, § 30-10-101, MCA, et. seq. (the Act), regulates the sale of securities to the citizens of Montana. A primary goal of the Act is to "protect the investor, persons engaged in securities transactions, and the public interest[.]" Section 30-10-102(l), MCA. The Act is heavily based on its federal counterparts, the Securities Act of 1933 and the Securities Exchange Act of 1934. The fundamental purpose of those acts is "to eliminate serious abuses in a largely unregulated securities market." United Housing Foundation, Inc. v. Forman, 421 U.S. 837, 849 (1975).

 

24 The Act defines "security" quite broadly. Section 30-10-103(22), MCA; State v. Duncan, 181 Mont. 382, 393, 593 P.2d 1026, 1033 (1979). Such a broad definition is in

 

___________________________________

7According to the Montana Commissioner of Securities and Insurance, there are "at least eighty Montana [DBSI] investors with and [sic] aggregate investment of at least $32 million."

 

harmony with federal securities law, which recognizes "the virtually limitless scope of human ingenuity, especially in the creation of 'countless and variable schemes devised by those who seek the use of the money of others on the promise of profits[.]' " Reves v. Ernst & Young, 494 U.S. 56, 60-61 (1990). Congress "determined that the best way to achieve its goal of protecting investors was to define the term 'security' in sufficiently broad and general terms so as to ... encompass virtually any instrument that might be sold as an investment." Reves, 494 U.S. at 61 (internal citations and quotations omitted).

 

25 Under the Act, securities include "investment contract[s]." Section 30-10-103(22)(xii), MCA. Under Montana law, an "investment contract" is " 'an investment in a common venture premised on a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.' " Duncan, 181 Mont. at 392-93, 593 P.2d at 1032-33 (quoting Forman, 421 U.S. at 852). In order to be considered an investment contract (and thereby a security) under the Act, the following elements must be met:

 

1) an investment;

2) in a common venture;8

3) with reasonable expectation of profits;

4) derived through the entrepreneurial or managerial efforts of others.

 

Duncan, 181 Mont. at 392, 593 P.2d at 1032.

 

26 Only two elements are at issue in this case - common venture and entrepreneurial or managerial efforts of others. The parties do not dispute that Redding has satisfied both

 

_______________________________

8This element has also been referred to as "common enterprise."

           

 

the investment and reasonable expectation of profits elements. We address each of the disputed elements in turn.

 

            1. Common Venture

 

27 Commonality can be established several ways. Some courts use the horizontal commonality approach, while others use a form of vertical commonality. The federal circuit courts are currently split on which form of commonality is the best approach. We will discuss each below.

 

28 Horizontal commonality focuses on the relationship between the investors. It is "the 'pooling' of investors' funds as a result of which the individual investors share all the risks and benefits of the business enterprise." SEC v. ETS Payphones, Inc., 300 F.3d 1281, 1284 (11th Cir. 2002), rev’d on other grounds, SEC v. Edwards, 540 U.S. 389 (2004).9 The Third Circuit describes horizontal commonality as "pooling of investors' contributions and distribution of profits and losses on a pro-rata basis among investors." SEC v. Infinity Group Co., 212 F.3d 180, 188 (3rd Cir. 2000). The First Circuit has "endorsed" the suggestion that "Ponzi schemes typically satisfy the horizontal commonality standard." SEC v. SG, Ltd., 265 F.3d 42, 51 (1st Cir. 2001).

 

29 Vertical commonality focuses on the relationship between the investor and the promoter of the investment. It takes two forms - either broad or narrow. Broad vertical commonality requires "that the investors are dependent upon the expertise or efforts of

 

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9Contrary to AZ's assertion that the Eleventh Circuit has adopted the horizontal commonality approach, the very next paragraph of its opinion in ETS Payphones states "we are bound by precedent to apply a different test for commonality, 'broad vertical commonality.' " ETS Payphones, 300 F.3d at 1284.

 

 

the investment promoter for their returns." ETS Payphones, 300 F.3d at 1284. Narrow vertical commonality, as adopted by the Ninth Circuit, requires that "the fortunes of investors are interwoven with and dependent upon the efforts and success of those seeking the investment or third parties." Hector v. Wiens, 533 F.2d 429, 433 (9th Cir. 1976). Under narrow vertical commonality, "where an investor's avoidance of loss depends on the promoter's 'sound management and continued solvency,' a common enterprise exists." SEC v. Eurobond Exchange, Ltd., 13 F.3d 1334, 1340 (9th Cir. 1994).

 

30 The United States Supreme Court has not settled this split amongst the circuits. See Mordaunt v. Incomco, 469 U.S. 1115 (1985) (Burger, C.J., and White and Brennan, J.J., dissenting from denial of certiorari); SG, Ltd., 265 F.3d at 49 (discussing the "disarray as to the legal rules associated with the ascertainment of a common enterprise.").

 

31 Montana has not expressly adopted any of these tests for common venture. We have found that when income to the investors depends upon the "common enterprise" selling a final product, a common venture exists. Duncan, 181 Mont. at 391, 593 P.2d at 1032. In other words, the common venture element is met when return on an investment is dependent on the efforts of the "enterprise" to generate it. Duncan, 181 Mont. at 391, 593 P.2d at 1032. This appears to be broad vertical commonality.

 

32 This case requires us to adopt a method for determining what fulfills the common venture requirement. In doing so, we keep in mind that one of the foremost purposes of the Act is to protect the investing public. See Knowles v. State ex rel. Lindeen, 2009 MT 415, T 1, 353 Mont. 507, 222 P.3d 595. We also keep in mind the remedial purposes behind the Act, which require the Act to be broadly construed to effectuate its purpose. Duncan, 181 Mont. at 393, 593 P.3d at 1033. Finally, we again note the need for flexibility to address "the virtually limitless scope of human ingenuity" to devise ever more complex schemes of using others' money on the promise, many times an illusory one, of profits. Reves, 494 U.S. at 60-61.

 

33 With these premises in mind, we conclude that for the purposes of the Act, a common venture can be established by satisfying the elements of any of the above discussed methods - either horizontal, broad vertical, or narrow vertical commonality. This approach best satisfies the purposes of the Act and will allow for flexibility to address any manner of new-fangled schemes.

 

34 We now turn to the District Court's finding that no common venture existed "between Redding and DBSI." It found that "[e]xamining the three different methods of common enterprise [horizontal, and broad and narrow vertical commonality] reveals that the keystone is for risk and fluctuation with the return on the investment." Because Redding "did not share the risks of the investment with other investors because she agreed upon a contractually set return on her investment[,]" the District Court found horizontal commonality was not met. Vertical commonality was not met because the District Court found "Redding was set to collect a contractually agreed upon return whether it was a month in which DBSI collected an abundance of rent or a month with very little rent." In sum, because DBSI promised Redding a certain amount of income, no common venture existed, and therefore the TICs could not be securities.

 

35 The District Court's legal conclusions regarding common venture are in conflict with United States Supreme Court precedent and simply incorrect. In Edwards, the United States Supreme Court was tasked with deciding "whether a moneymaking scheme is excluded from the term 'investment contract' simply because the scheme offered a contractual entitlement to a fixed, rather than variable, return." Edwards, 540 U.S. at 391. The Court unanimously held that "an investment scheme promising a fixed rate of return can be an 'investment contract' and thus a 'security' subject to federal securities laws." Edwards, 540 U.S. at 397. Any other holding would allow "unscrupulous marketers of investments [to] evade the securities laws by picking a rate of return to promise." Edwards, 540 U.S. at 394-95. The Court also noted that "investments pitched as low-risk (such as those offering a 'guaranteed' fixed return) are particularly attractive to individuals more vulnerable to investment fraud, including older and less sophisticated investors." Edwards, 540 U.S. at 394. The District Court's reliance on a promised rate of return as dispositive of common venture (and thus dispositive of security) was error and must be reversed.

 

36 Contrary to the District Court's analysis, the "keystone" regarding common venture is not "risk and fluctuation with the return on the investment." It is the relationship between either the investors themselves (horizontal commonality) or the investors and the promoter or third parties (vertical commonality) that is crucial. For horizontal commonality, a court must consider whether (1) the investors' assets were "pooled," and (2) whether the investors shared in the profits and losses of the enterprise on a pro-rata basis (i.e. proportionate to each investor's contribution). SG, Inc., 265 F.3d at 50-5 1; Infinity Group, 212 F.3d at 188-89.

 

37 For broad vertical commonality, a court must consider whether the investors' profits (the return on investment)10 are dependent upon the expertise or efforts of the promoter. ETS Payphones, 300 F.3d at 1284. The thrust of this test is "that the investors have no desire to perform the chores necessary for a return[,]" but rather depend upon the efficacy of the promoter for the return on the investment. SEC v. Unique Financial Concepts, Inc., 196 F.3d 1195, 1199-1200 (1 Ith Cir. 1999).

 

¶38 Finally, for narrow vertical commonality, a court must consider whether the investors' fortunes are interwoven with and dependent upon the efforts and success of the promoter or a third party. Brodt v. Bache & Co., 595 F.2d 459, 460 (9th Cir. 1978); SEC v. Glenn W Turner Enterprises, Inc., 474 F.2d 476, 482 n. 7 (9th Cir. 1973) (emphasis added). Here, more is required than just a link between investor profits and the efforts of the promoter. Narrow vertical commonality requires the success or failure of the investor to be linked to the success or failure of the promoter - "there is no common enterprise unless there is some direct relation between the success or failure of the promoter and that of his investors." Mordaunt v. Incomco, 686 F.2d 815 (9th Cir. 1982), cert. denied,

 

________________________________________

10In Edwards, the United States Supreme Court made clear that profits under the "investment contract" analysis mean "the profits that investors seek on their investment, not the profits of the scheme in which they invest." Edwards, 540 U.S. at 394.

 

 

469 U.S. 1115 (1985). Neither vertical commonality approach requires pooling of investor funds or sharing of profits and losses on a pro-rata basis. Unique Financial Concepts, 196 F.3d at 1199 n. 4.

 

39 Turning to the present case, we conclude DBSI's TIC investment scheme was a common venture under any measure. We first analyze horizontal commonality, and find that both elements are present. There is no question here that investor funds were pooled. The resources of several investors, including Redding, were pooled to purchase a given property, and each investor owned a certain percentage of the property based upon the amount invested. There is also no question that the investors each shared in the profits and losses according to their contribution to the investment. If the investment made money, each investor received a rate of return (6% or 7% per year, plus an annual 3% increase) on their pro-rata share of the investment. Likewise, each investor stood to lose some or all of their pro-rata share of the investment should the venture fail. The fact that Redding was promised a certain percentage return and still owns her interest in some of the properties does not mean she stood to lose nothing. To conclude otherwise ignores the reality of what Redding and others who invested with DBSI face - some or all of their investments are now essentially worthless. These two things - the pooling of assets and the pro-rata sharing of profit or loss - are all that is required for horizontal commonality. SG, Inc., 265 F.3d at 50-51; Infinity Group, 212 F.3d at 188-89. DBSI's scheme meets both, thus there was a common venture. Additionally, we note that because DBSI was allegedly a Ponzi scheme, that alone may also satisfy horizontal commonality. SG, Ltd., 265 F.3d at 5 1.

 

40 We next analyze broad vertical commonality. Again, there is no question that investors' returns were dependent upon the expertise or efforts of DBSI. It is clear from the lease agreement that DBSI was to do all the "chores necessary for a return." Unique Financial Concepts, 196 F.3d at 1199-1200. Redding simply purchased her shares in the property, and indeed was required to lease the property back to DBSI as "master tenant" and property manager. She did not invest "the personal time and effort involved in operating the property and in dealing with multiple tenants." Redding and the other investors had no responsibility to generate any profit; that was DBSI's job as "master tenant." The investors gave DBSI money, and in return it was DBSI that promised to generate profit. It was up to DBSI to secure tenants for the property, and it was the rent generated from these tenants that provided the return to Redding and other investors. Without DBSI's effort and expertise renting and managing the property, the investors would get no return. Thus, broad vertical commonality is satisfied.

 

41 Finally, we analyze narrow vertical commonality. For essentially the same reasons broad vertical commonality exists, narrow vertical commonality also exists.11 It is obvious that there is a direct relation between the success or failure of DBSI and the success or failure of Redding and the other investors. If DBSI did not rent and manage

 

 

11We also note that once narrow vertical commonality is satisfied, it appears broad vertical commonality would also be satisfied in virtually every case. However the two are interrelated, one is not dependent on the other and either can satisfy the common venture element.

 

 

the property successfully, the investment would fail - the investors' avoidance of loss was dependent on DBSI's sound management and continued solvency. AZ acknowledges as much, stating "almost every lessee such as Redding is reliant upon the commercial lessor's [DBSI's] ability to manage the property." While AZ is correct that this alone does not make the TICs in question securities, it does satisfy narrow vertical commonality.

 

42 We conclude that the TICs in question were common ventures under any commonality analysis. Therefore, we proceed to analyze the fourth prong of the Duncan test - the entrepreneurial or managerial efforts of others.

 

            2. Entrepreneurial or Managerial Efforts of Others

 

43 Duncan requires that the profits expected in prong 3 of the test be "derived through the entrepreneurial or managerial efforts of others." Duncan, 181 Mont. at 392, 593 P.2d at 1032. This differs from the United States Supreme Court's Howey test, where the profits were to derive "solely from the efforts of the promoter or third party. SEC v. W.J Howey Co., 328 U.S. 293, 298-99 (1946). Montana has not required rigid conformity with the "solely" requirement. Indeed, "solely" was purposefully left out of our test. Duncan, 181 Mont. at 392, 593 P.2d at 1032 (discussing criticism of the requirement and the language used by the United States Supreme Court in Forman which "effectively deletes the strict 'solely' requirement from the test."). The Circuit Courts of Appeal have also declined to "give literal meaning to the word 'solely' in this context[.]" SG, Ltd., 265 F.3d at 55. Therefore, the requirement that profits be derived from the entrepreneurial or managerial efforts of others is generally satisfied so long as " 'the efforts made by those other than the investor are the undeniably significant ones, those essential managerial efforts which affect the failure or success of the enterprise.' " SG, Ltd., 265 F.3d at 55 (quoting Turner Enterprises, 474 F.2d at 482.).

 

44 Before we analyze this element, it must be noted that the TICs in question in Redding's case are "affiliate TICs" meaning that the investors purchased the property from DBSI and leased it back to DBSI, or a DBSI affiliate, who served as the "master tenant." These differ from "non-affiliate TICs" where investors purchase the property from a promoter then contract with a property or asset manager who is not the promoter, nor an affiliate of the promoter to operate the investment. In a non-affiliate TIC investment, the promoter's role ends upon the completion of the purchase. The "efforts of others" analysis for non-affiliate TICs may differ from the analysis here. See David Rich, Student Author, Betting the Farm: The TIC Turf War and "y TICs Constitute Investment Contracts Under Federal Securities Laws, I Wm. & Mary Bus. L. Rev. 451 (2010). Circuit Courts of Appeal have looked to both pre-purchase efforts (of the promoter) and post-purchase efforts (of the third party property or asset manager) to satisfy this prong of the Howey test, reaching differing conclusions. See SEC v. Life Partners, Inc., 87 F.3d 536 (D.C. Cir. 1996) (pre-purchase efforts alone will not suffice; absent substantial post-purchase efforts by promoter or a third party, this prong is not met), compare with SEC v. Mutual Benefits Corp., 408 F.3d 737 (11th Cir. 2005) (efforts of others may be satisfied by pre- or post-purchase efforts of the promoter or third party). Because DBSI was both the promoter and the property manager, we need not engage in this analysis.

 

45 The focus in this case is on the amount of control retained by Redding and the other investors and whether or not that control was illusory. Not surprisingly, the Circuit Courts of Appeal are split on this issue. The Eleventh and Fifth Circuits look to the written agreements between the parties. Albanese v. Florida National Bank of Orlando, 823 F.2d 408 (11th Cir. 1987); Williamson v. Tucker, 645 F.2d 404 (5th Cir. 1981). The Eleventh Circuit has found "the crucial inquiry is the amount of control that the investors retain under their written agreements." Albanese, 823 F.2d at 410 (citing Williamson, 645 F.2d at 423-24.). "If the investor retains the ability to control the profitability of his investment, the agreement is no security." Albanese, 823 F.2d at 410. However, even if the written agreement offers substantial control to the investor, if that control is illusory, the "efforts of others" element can still be met. Albanese, 823 F.2d at 412.

 

46 In contrast, the Second Circuit looks to the "reality of the parties' positions" and evaluates "whether 'the reasonable expectation was one of significant investor control.' " United States v. Leonard, 529 F.3d 83, 85 (2d Cir. 2008). If there is a reasonable expectation of significant investor control, the protection of securities laws is not needed. Leonard, 529 F.3d at 88. It is for the "passive investor" that the securities laws were enacted. Leonard, 529 F.3d at 88; SEC v. Aqua-Sonic Products Corp., 687 F.2d 577, 585 (2d Cir. 1982). Thus, despite what the written agreements say on their face, if the promoter sought out and expected passive investors, this element may be met. Aqua-Sonic, 687 F.2d at 5 84. Under this approach, " ' [w]hat matters more than the form of an investment scheme is the "economic reality" that it represents. The question is whether an investor, as a result of the investment agreement itself or the factual circumstances that surround it, is left unable to exercise meaningful control over his investment.' " Leonard, 529 F.3d at 90 (quoting Robinson v. Glynn, 349 F.3d 166, 170 (4th Cir. 2003)) (emphasis in Leonard).

 

47 The District Court did not make any findings on this issue because it concluded "DBSI providing essential managerial efforts is irrelevant because Redding did not invest in a common enterprise." However, the issue was briefed by the parties. Redding argued that this element was met. AZ argued that Redding could not meet this element because Redding retained the rights to (1) "terminate DBSI as the master tenant;" (2) "sell the property;" (3) re-enter "the leased premises for the purpose of making inspections, repairs, alterations or additions as the Tenant in Common group might deem necessary;" and (4) a "lien against DBSI for rent damages or other payments." Further, AZ argued that Redding was expected to "engage in conference calls, sign documentation and participate in assessing DBSI's performance as the Master Tenant." AZ argued that Redding exercised this control by participating in at least one conference call, and more importantly, terminating DBSI as "master tenant" on two properties. Finally, AZ argued that Redding did not look to DBSI to produce profits, but rather to the property itself.

 

48 We are not persuaded by AZ's arguments. We agree with the reasoning of the Second and Fourth Circuits, and we will look to the "economic reality" of the situation and the investor's ability to meaningfully control the investment. Leonard, 529 F.3d at 89-90; Robinson, 349 F.3d at 170. We will not confine this inquiry to a review of the organizational documents alone, but rather inquire into the amount of actual control the investor was expected to exercise in reality. Leonard, 529 F.3d 89-90. This approach best serves the purposes of the Act, and will allow for the flexibility required to adapt to the ever evolving schemes "devised by those who seek the use of the money of others on the promise of profits." Howey, 328 U.S. at 299. Again, the question is " 'whether [the] investor, as a result of the investment agreement itself or thefactual circumstances that surround it, is left unable to exercise meaningful control over his [or her] investment.' Leonard, 529 F.3d at 90 (quoting Robinson, 349 F.3d at 170) (emphasis in Leonard).

 

49 In Redding's case, we conclude that in reality DBSI sought out passive investors and that Redding, regardless of the rights she retained in the written agreements, was not expected to exercise any meaningful control over her investment, nor did she expect to exercise meaningful control over her investment: Indeed, AZ acknowledges that "Redding did not want to directly manage the day to day affairs of any property she would purchase." Nothing better illustrates Redding's lack of managerial control than the "NNN Plus Lease" summary, declaring that Redding and the other owners did not have to invest "the personal time and effort involved in operating the property and in dealing with multiple tenants." Rather, as DBSI advertized, "the management responsibilities of the TICs will simply consist of dealing with the NNN PLUS Lessee and receiving and depositing a monthly lease payment from the Lessee." Additionally, that Redding played no role in "shaping the organizational agreements" casts doubt as to whether she was expected to have significant control over the enterprise. Leonard, 529 F.3d at 90. Moreover, the parties do not dispute that, other than her ranch, Redding had no experience in owning and managing commercial properties. AZ does not point to any facts in the record that would suggest Redding's practical ability to take over and manage four large commercial properties. Leonard, 529 F.3d at 90. And while Redding and the other investors terminated DBSI as "master tenant" on two of the properties,12 it can hardly be said that the investors were expected to do so. The expectations were just the opposite - DBSI was to directly manage the day to day affairs of the property for Redding. That was the entire point of the written agreements between Redding and DBSI. Terminating DBSI once it was in default is not meaningful control of the property or the investment.

 

50 Even were we to accept AZ's argument that Redding had the ability to control her investment via certain rights retained under the written agreements, a review of the documents themselves shows that any control Redding was granted under the documents was not meaningful, but was illusory. AZ makes much of the fact that Redding could terminate DBSI as "master tenant." However, the process to terminate DBSI was nearly impossible. Redding alone could not terminate DBSI. A majority vote of all the owners was required. Then, termination was "effective only when" DBSI was relieved from all obligations to the property and "indemnified by a majority in percentage ownership...

 

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12AZ acknowledges that Redding lost her interest in two of the properties.

           

 

against any and all claims, actions, costs, damages, liabilities, deficiencies or expenses" relating to the property. Additionally, to sell the property or hire a new property manager, a unanimous vote of all the owners was required. A TIC can have as many as 35 owners,13 none necessarily residing in the same geographic area, and any one owner could thwart the others' attempt to sell the property or hire a new property manager. This does not demonstrate that Redding had meaningful control over her investment. As for the right of re-entry and the right to a lien against DBSI, these rights do not evidence a meaningful right to control the profitability of her investment, nor does signing documents and participating in one conference call.

 

51 We conclude that the efforts made by DBSI are the undeniably significant ones - the essential managerial efforts which affect the failure or success of the enterprise. SG, Ltd., 265 F.3d at 55. The written documents themselves indicate that Redding was not expected to exercise any meaningful control over her investment, nor did AZ present evidence that she expected to exercise meaningful control over her investment. Because DBSI's efforts were the significant ones, Redding was dependent on DBSYs entrepreneurial and managerial efforts to generate profit. The final element of the Duncan test is met.

 

            3. Were the TICs Securities in 2004?

 

52 Finally, we address AZ's argument that the TICs were not securities in 2004. AZ argues repeatedly that a security "exists at the time it is sold or not at all," hence because

 

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13Rev. Proc. 2002-22, § 6.02, 2002-1 C.B. 733.

 

 

the TICs were not securities in 2004, they cannot be securities now. To support this argument, AZ states that "guidance from the IRS [Rev. Proc. 2002-22, 2002-1 C.B. 733] showed that these properties were not securities and there was no guidance from the SEC on the subject[J" AZ, however, has not shown that in 2004 the IRS, or anyone else, believed that TICs were not securities. Rev. Proc. 2002-22 simply provides guidance for TIC sponsors and owners to avoid having TICs classified as partnerships. It does not say TICs are not securities.

 

53 In fact, materials which AZ submitted in its Table of Appendices on appeal and upon which AZ relied for its contention that the TICs here were not securities in 2004, actually establish that these TICs would have been considered securities in 2004, under the circumstances presented here. The September 2004 Moffat Thomas opinion letter directed to FOR 1031 LLC (a DBSI affiliate), addressing the question of whether a TIC constituted a security under federal law as of 2004, was submitted to the District Court by AZ when it moved for summary judgment. The letter exhaustively analyzes the case law as of 2004 on the security question. Repeatedly, the opinion letter states that as long as the investor in question is experienced and knowledgeable in owning and operating developed income-producing property - and certain other factors are met - it can be assumed that the TICs are not securities. Summarizing Williamson v. Tucker, the opinion letter states:

 

[T]he [Williamson] court concluded the venture would not involve a security unless the plaintiffs could show that ... (2) the partner or venturer is so inexperienced or unknowledgeable in business affairs that he or she is incapable of intelligently exercising his or her partnership or venture powers; or (3) the partner or venturer is so dependent on some unique entrepreneurial or management ability of the promoter or manager that he or she cannot replace the manager of the enterprise or otherwise exercise meaningful partnership or venture powers." [Emphasis added.]

 

54 It is undisputed that Redding had no experience in or knowledge concerning the operation of developed income-producing property. Further, she had no meaningful partnership powers, as we explain in ¶¶ 49-51. Therefore, under the language lifted from AZ's tendered authority, it is clear that as of 2004, these circumstances would have compelled a finding that this transaction qualified as a security transaction. Further buttressing this conclusion is one of AZ's own experts, who was employed by "a major TIC sponsor who sold TICs as a security" in May of 2004, several months prior to the time Redding purchased her TICs. Given these facts, we do not accept AZ's argument that the TICs were not securities in 2004.

 

55 Our holding that the TICs are securities is based on the documents Redding reviewed and executed in 2004, the contents of which have not changed, and the facts and circumstances surrounding the transactions. The TICs Redding purchased were securities in 2004.

 

CONCLUSION

 

56 Based on the tests and principles of law discussed above, the TICs here are securities.

 

57 Therefore, IT IS HEREBY ORDERED that Redding's Petition for Writ of Supervisory Control is GRANTED.

 

58 IT IS FURTHER ORDERED that the District Court's August 9, 2011, Order granting partial summary judgment to AZ is REVERSED. We remand this case to the District Court for entry of partial summary judgment in favor of Redding on the question of whether the TICs sold to Redding are securities under the Securities Act of Montana, and for further proceedings consistent with this Opinion.

 

59 The Clerk of Court is directed to provide copies of this Opinion to all counsel of record; The Hon. Dorothy McCarter; and to Monica J. Lindeen, Montana Commissioner of Securities and Insurance.

 

/S/ MICHAEL E WHEAT

 

We Concur:

 

/S/ MIKE McGRATH

/S/ JAMES C. NELSON

/S/ BRIAN MORRIS

/S/ JIM RICE

 

 

CLICK BLUE TEXT LINKS TO

REPORTS & COURT CASES AS OF:

 

The Tragic and Predatory Social Conduct Shared by Windermere Real Estate and San Diego City Ex-Mayor Bob Filner: Subjecting Female Employees to an Abusive Work Environment.

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT—D.C. No. CV-98-01184-RSL

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

In Little v. Windermere Relocation, the Court stated: "In sum, taking the facts in the light most favorable to Little, because her [Windermere] 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[ ]."

 

john jacobi(Left to right) Windermere CEO Geoff Wood (far left) is listed as a Governing Person of Windermere Relocation. Peggy Scott (second from left), also a 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..." Windermere attorney Paul Stephen Drayna (third from left) is listed as the registered agent of RELO LLC, the 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 after she would not accept a pay cut, that she should "...clean out her desk."

SUPERIOR COURT OF CALIFORNIA, SAN DIEGO COUNTY—CASE NO: 37-2013-00058613-CU-OE-CTL

In Irene McCormack Jackson v City of San Diego; Robert ("Bob") Filner, Plaintiff Jackson's Complaint for Damages, Employment Discrimination and Sexual Harassment, alleges at ¶ 19 that her boss, San Diego Mayor Robert Filner (left), said to her in sum or substance, "you know you are beautiful. I have always loved you. Someday I know that you are going to marry me. I am so in love with you. Wouldn't it be great if you took off your panties and worked without them on?" Plaintiff was aghast and pushed him away. Defendant Filner then stated "Come on. Give me a kiss."

And Ms. Jackson further alleges at ¶ 35:"... (1) Plaintiff McCormack Jackson was an employee of Defendant City of San Diego; (2) Plaintiff McCormack Jackson was subjected to unwanted harassing conduct because she is a woman; (3) the harassing conduct was severe or pervasive; (4) a reasonable woman in Plaintiff McCormack Jackson's circumstances would have considered the work environment to be hostile or abusive; (5) Plaintiff McCormack Jackson considered the work environment to be hostile or abusive; (6) Defendant Filner participated in the harassing conduct;" READ THE ENTIRE COMPLAINT HERE

Guilty Plea to Criminal Charges: San Diego Ex-Mayor Bob Filner Pleads Guilty to Felony False Imprisonment and Battery In the same California Jurisdiction where Windermere Real Estate Operates its San Diego Windermere Homes & Estates Santaluz Franchise

San Diego Ex-Mayor Bob Filner pleaded guilty to a felony charge of false imprisonment by violence, fraud, menace and deceit, stemming from an incident where he forcibly overcame a woman's resistance at a fundraiser, violating her liberty. Filner also pleaded guilty about two misdemeanor counts of battery, one from an incident where he kissed a woman on the lips during one of his "Meet the Mayor" events; and another incident wherein Filner improperly touched a woman's posterior while posing for a photo.

Jackson v City of San Diego; Robert ("Bob") Filner Complaint here.

Defendant City of San Diego's Answer to Complaint here.

Defendant City of San Diego's Cross-Complaint Against Robert Filner here.

Jump to the Court's full Opinion for Little v. Windermere Relocation here.

Click to the Windermere Real Estate Santaluz San Diego page here

 

WINDERMERE AUBURN-BONNEY LAKE-LAKE TAPPS REVIEWS

SUPERIOR COURT, STATE OF WASHINGTON, FOR THE COUNTY OF PIERCE—CASE NO. 08-2-13824-6

FEMALE EMPLOYEE SUES WINDERMERE FOR HOSTILE WORK ENVIRONMENT...

Windermere Real Estate Auburn, Inc., sued by employee for Constructive Discharge, Hostile Work Environment, Negligence, Intentional Infliction of Emotional Distress and Civil Conspiracy in Pierce County, Washington, Complaint. Owner of Windermere Real Estate Auburn and Windermere Real Estate Lake Tapps, Thomas Tollen, sued for Civil Assault and Battery, Trespass, Invasion of Right to Privacy, Civil Stalking and other charges—Pleads guilty to related criminal counts.

...WINDERMERE FRANCHISE OWNER TELLS HER, "WE DON'T DATE, YOU DON'T HAVE A JOB!"

Complaint alleges Windermere Auburn and Lake Tapps owner, Thomas Tollen, told employee: "You're nothing without me! We don't date, you don't have a job! ... Tollen grabbed Clark and threw her against garbage cans. She fell. While she was lying on the ground Tollen kicked her at least ten times, yelling 'You're a piece of shit! You're nothing without me! You won't have a job!'"

OWNER OF WINDERMERE REAL ESTATE AUBURN AND WINDERMERE REAL ESTATE LAKE TAPPS, THOMAS TOLLEN, SUED FOR CIVIL ASSAULT AND BATTERY, TRESPASS, INVASION OF RIGHT TO PRIVACY, CIVIL STALKING AND OTHER CHARGES—PLEADS GUILTY TO RELATED CRIMINAL COUNTS

Complaint for Declaratory Relief, Damages and Foreclosure of Landlord's Lien against Windermere Real Estate/Auburn, Inc., and Windermere Real Estate/Cascades Group, Inc. Judgment for Plaintiff: $128,105,63, costs of $342.80 and attorney's fees of $7,420.00 CASE HERE

 

SUPERIOR COURT STATE OF WASHINGTON FOR THE COUNTY OF KING—CASE NO. 13-2-00452-6 KNT

COMPLAINT ALLEGES:

"In fact, the copy of the Repair Recommendations forwarded by Mr. Freed HAD BEEN MANIPULATED TO CONCEAL the portion of the repair recommendations which informed the Boyers that the drain field piping was collapsing and needed to be replaced." (Emphasis added.)

WINDERMERE BONNEY LAKE-LAKE TAPPS and OWNER / DESIGNATED BROKER KEN FREED (left), SUED FOR FRAUD, FRAUDULENT CONCEALMENT, BREACH OF FIDUCIARY DUTY, NEGLIGENT MISREPRESENTATION, BREACH OF CONTRACT, CPA VIOLATION and RESCISSION. Update 8/22/13: Plaintiffs' attorney files Stipulation for and order of dismissal of Freeds and Windermere Lake Tapps

 

WASHINGTON STATE COURT OF APPEALS, DIVISION 1—NOS. 58439-9-I, 58531-2-I

WINDERMERE AGENTS' ABUSE, UNDUE INFLUENCE and EXPLOITATION OF A VULNERABLE ADULT AT WINDERMERE ATTORNEY JOHN DEMCO'S SOUTH WHIDBEY ISLAND FREELAND WINDERMERE FRANCHISE: Windermere mother-and-daughter agents Saul and Gabelein take advantage of an elderly woman: “Emma has sold property to members of the Gabelein family for a fraction of its value, jeopardizing her ability to remain in her home for the remainder of her life." (Demco, Saul and Gabelein above.) READ THE COURT'S SHOCKING OPINION HERE.

 

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION II—NO. 35740-2-II

More Innocent and Unsuspecting Lives Ruined by the Cost of Chasing Windermere Through the Courts: Windermere Real Estate Allen & Associates Agent Lance Miller's Deliberate Non-Disclosure of Home's Prior Use as Pot Farm and Methamphetamine Laboratory

Eva and Eddie Bloor relocated to Longview, in Washington State, and purchased a home from Charmaine and Robert Fritz through Lance Miller at Windermere Real Estate/Allen & Associates, who served as dual agent for both parties. The Fritzes and Miller both opted to withhold their knowledge that the one-time rental property had been a site for marijuana farming and methamphetamine production. Windermere and Miller were cognizant of the property’s prior use because Windermere staff managed the rental home months earlier when a drug raid occurred, and they subsequently issued a notice of eviction on the tenants after learning of their illicit operation. Locals all herd the news, including the Fritzes, who conversed about it with others. (At left, Lance Miller of Windermere Allen & Associates.) CLICK TO THE COURT'S OPINION HERE.

 

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON—NO. 59321-8-I

WINDERMERE BELLEVUE COMMONS ASSOCIATE BROKER DICK PELASCINI'S FORECLOSURE RESCUE RIPOFF SCAM: "...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." CLICK HERE TO THE COURT'S OPINION.

 

STEALING COMPETITOR STRATEGY: IS PROMOTION THEFT THE WINDERMERE MARKETING PLAN?

 

U.S. DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA—CASE NO. EDCV-01242 JGB (OPx)

Coldwell Banker Sues Windermere Services Southern California for Lanham Act Trade Dress Infringement, Common Law Trade Dress Infringement, and Common Law Unfair Competition in Federal Complaint Alleging:

"23. On or about March 2013, Windermere's Counsel indicated that Windermere would take immediate steps to change the formatting of its WINDERMERE@HOME magazine to alleviate Coldwell. Banker's concerns of trade dress infringement. 24. As of the filing of this Complaint, Windermere has not taken any steps to change the formatting of its WINDERMERE@HOME magazine and continues to incorporate the VIEW Trade Dress in the WINDERMERE@H0ME magazine." DOWNLOAD THE COMPLAINT HERE

Similar lawsuit from another Windermere competitor: U.S.DISTRICT COURT—NO. SACV10-01589 JVS (ex): JOSEPH R. DEVILLE, BOB BENNION, BENNION & DEVILLE FINE HOMES [WINDERMERE COACHELLA VALLEY], A&L PARTNERS, ANDREA MARQUEZ, SUED FOR TRADEMARK INFRINGEMENT

Similar lawsuit: U.S. DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE—CIVIL ACTION NO. 12-cv-271: WINDERMERE REAL ESTATE COMPANY AND SEATTLE-WEDGWOOD BROKER, CARISSA TURBAK [SAFFEL], SUED FOR COPYRIGHT INFRINGEMENT, FALSE DESIGNATION OF ORIGIN AND UNFAIR COMPETITION—VIOLATION OF THE LANHAM ACT—BY FINITO SERVICES LLC, DBA SUNSPOT INNS, RESORTS & VACATION RENTALS

Similar lawsuit: U.S. DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT TACOMA—NO. CV-05401: WINDERMERE REAL ESTATE BAINBRIDGE ISLAND AND ASSOCIATE BROKER DEBBIE NITSCHE SUED FOR COPYRIGHT INFRINGEMENT, VIOLATION OF THE LANHAM ACT, AND UNFAIR COMPETITION.

 

WINDERMERE REAL ESTATE COACHELLA VALLEY / PALM SPRINGS / BENNION & DEVILLE FINE HOMES REVIEWS

 

PARALLEL PROCEEDINGS: WINDERMERE COACHELLA VALLEY/BENNION and DEVILLE FINE HOMES AGENT, PEGGY SHAMBAUGH, CHARGED IN CONCURRENT CIVIL AND CRIMINAL CASES

FEDERAL INDICTMENT No. CR 12 00441: Windermere Coachella Valley Indian Wells, Bennion & Deville Fine Homes Agent Peggy Anne Shambaugh and Husband, Attorney Gary Edward Kovall (left), Indicted on Federal Bribery, Conspiracy and Money Laundering Charges in Palms Springs Region Spotlight 29 Casino Kickback Scheme. Also named are Paul Phillip Bardos and David Alan Heslop. Click here to read or download a .pdf copy of the complete indictment.

COMPANION CIVIL CASE

SUPERIOR COURT OF CALIFORNIA, COUNTY OF RIVERSIDE—CASE NO. RIC10006101

Federally Indicted Windermere Coachella Valley Indian Wells Agent Peggy Shambaugh and Windermere Coachella Valley Owner Bob Deville, Charged by Spotlight 29 Casino Owner Indian Tribe with Breach of Fiduciary Duty and Professional Negligence; Windermere Coachella, Bob Deville and Windermere Services Charged with Unfair Trade Practices in $30 Million-Plus Deal—Complaint Alleges Windermere Services is an "Unlicensed Entity."

john jacobi(L to R: (1) Joseph R. "Bob" Deville and (2) Bob Bennion of Windermere Services Southern California, Bennion & Deville Fine Homes, Inc., and Windermere Real Estate Coachella Valley. (3) Peggy Shambaugh, Realtor at Windermere Real Estate Coachella Valley, Indian Wells office. (4) Current Windermere Services Company governing persons John W. Jacobi, (5) Geoffrey P. Wood, (6) Jill Jacobi-Wood, (7) John O'Brien "OB"Jacobi, (8) attorney Paul Drayna—WSBA# 26636.

 

CONSOLIDATED WITH CASE ABOVE:

SUPERIOR COURT OF CALIFORNIA, RIVERSIDE COUNTY—N0. RIC 10019843

"..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." (emphasis added)

BENNION & DEVILLE FINE HOMES, DBA WINDERMERE REAL ESTATE COACHELLA VALLEY, SUED FOR CONSTRUCTIVE FRAUD AND OTHER CLAIMS, ALLEGING: "...10. As Plaintiff’s real estate broker, Windermere owed an affirmative obligation to Plaintiff to exercise the utmost care, integrity, honesty and loyalty to Plaintiff. Despite the recognition and acknowledgment of this relationship, Windermere never disclosed the fact that Heslop had a preexisting and ongoing financial arrangement with Windermere, through Shambaugh and her then boyfriend, now husband, Gary Kovall ("Kovall"), or the fact that the Tribe was paying substantially more than the market value for the Baseline Property..."

 

SUPERIOR COURT OF CALIFORNIA, COUNTY OF ORANGE—N0. 30-2009 00311045

Complaint alleges, " ...the purchase price was raised to $31 million, apparently to compensate for the reduction in the percentage of the commission to Windermere and Shambaugh." Nada L. Edwards, Gary E. Kovall, Robert A. Rosette, Rosette & Associates PC, Monteau & Peebles LLP, Fredericks & Peebles LLP, Fredericks Peebles & Morgan LLP, sued in case referencing Windermere Coachella Valley's Peggy Shambaugh, officially listed as an "Interested Party."

CASE UPDATE: Following his federal indictment on bribery and conspiracy charges, the Court has granted a stay of this civil action against Defendant Gary Kovall, based on his assertion of his Fifth Amendment right against self-incrimination.

 

SUPERIOR COURT OF CALIFORNIA, COUNTY OF RIVERSIDE: NOTICE OF ENTRY OF JUDGMENT—N0. INS1201085

"We are still experiencing cash flow issues...." —Windermere Controller Marie D. Wooten

JUDGMENT AGAINST BENNION & DEVILLE FINE HOMES INC., DBA WINDERMERE REAL ESTATE COACHELLA VALLEY, SUED FOR RENT PAID LATE AND UNPAID RENT: Documents in evidence state: "Late Fees which have accumulated for the last ten months total: $10,937.10... Rent has been delinquent January thru November. With the exception of a late fee paid for September... Please remit balance due of: $33,904.96 ..."

 

CALIFORNIA SUPERIOR COURT, RIVERSIDE COUNTY, INDIO BRANCH—CASE N0: INC 10005449

Windermere Real Estate Services Company, Windermere Coachella Valley Agent Charles Stewart Smith (left), Bennion & Deville Fine Homes Inc., dba Windermere Real Estate Coachella Valley, Sued for Breach of Implied Warranty of Fitness, Statutory Failure to Make Written Disclosures, Fraud: Fraudulent Concealment and Failure to Disclose, Fraud: Intentional Misrepresentation, Fraud: Negligent Misrepresentation, and Constructive Fraud.

Windermere Coachella agent Charles Stewart Smith says on his Windermere web page that he has "... a track record of proven sales and outstanding client service results."

Charles Stewart Smith review from the WindermereWatch e-mailbag: "...This guy is trouble. I interviewed him to sell my home. I researched his background after we met. I did not hire him. I learned that he does not use his real name Charles Smith. And the guy and his real estate partner Patrick Jordan were in foreclosure and did not notify the DRE. It turns out that there is a reason agents can't use nick names with out notifying clients. You don't find much under Stewart Smith."

 

CALIFORNIA SUPERIOR COURT OF, RIVERSIDE COUNTY—CASE N0: INC 1203722

Bennion & Deville Agent Scott Palermo (left), individually; Bennion & Deville Fine Homes, Inc. a California corporation, dba Windermere Real Estate Coachella Valley; Louise Hampton, individually; HLH Enterprises, Inc., a California corporation dba Prudential California Realty, sued for General Negligence.

 

U.S. DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA—CASE NO. EDCV-01242 JGB (OPx)

Coldwell Banker Sues Windermere Services Southern California for Lanham Act Trade Dress Infringement, Common Law Trade Dress Infringement, and Common Law Unfair Competition.

 

U.S. DISTRICT COURT NO. SACV10-01589 JVS (ex)

A&L Partners, Andrea Marquez, Joseph R. Deville, Bob Bennion, Bennion & Deville Fine Homes, Sued for Trademark Infringement.

 

SUPERIOR COURT OF CALIFORNIA, RIVERSIDE COUNTY, INDIO—CASE NO. INC 1204647

OOPS!!! WINDERMERE'S DAVID CARDEN AND DALE MAGUIRE (at left respectively); RE/MAX SPECIALISTS, BOB STALLINGS and PIERRE BALLARD; and SUBJECT PROPERTY OWNER RONNY THARPE, SUED BY SALES PROSPECT WHO FELL INTO OPEN, UNFENCED and ALMOST EMPTY SWIMMING POOL.

READ THE ANSWER OF DEFENDANTS BENNION & DEVIILE FINE HOMES, AGENTS CARDEN AND MAGUIRE HERE

 

SUPERIOR COURT STATE OF CALIFORNIA, COUNTY OF RIVERSIDE—NO. INC 1205192

Windermere Real Estate [Coachella Valley], Broker Chris Anderson DRE #01400606 and Agent Tony Otten DRE #01400038 (at left, respectively), Sued for Comparative Indemnity and Apportionment of Fault; and Total Equitable Indemnity, in Capitis Southeby's International Realty Cross-Complaint Alleging "...Windermere, Mr. Anderson, and Mr. Otten owed a duty of honest dealing to Plaintiff..."

DOWNLOAD THE SECOND AMENDED COMPLAINT IN THE CASE HERE; DOWNLOAD THE COMPLETE CROSS-COMPLAINT HERE.

Second Amended Cross-Complaint alleges: "...Stephen LoCascio and Michael Russell lived together as legally married spouses... the escrow under which Mr. LoCascio would buy the Subject Property was supposed to close on or about June 26, 2012... The Addendums allowed the buyer, Mr. LoCascio to rent the Subject Property and to take possession of the Subject Property, under the Addendums, on April 5, 2012, as a tenant, three months before the close of escrow... the truth was that Mr. LoCascio and Mr. Russell had no place to live...

While in sole possession of the Subject Property, Mr. LoCascio and Mr. Russell committed waste, in that inter alia they ripped large holes in the walls and ceiling, took down a wall, removed all the landscaping, including mature trees, either urinated or allowed their two dogs to urinate throughout the house on the carpeting, changed and damaged electrical wiring, damaged wallpaper, damaged the ceiling and custom made drapery, damaged the plumbing system,, and otherwise committed acts of destruction and waste to the Subject Property, physically rendering the house uninhabitable, and substantially lowering the fair market value...

...Mr. Anderson was the real estate broker and Mr. Otten the real estate agent for Mr. LoCascio and Mr. Russell... Windermere, Mr. Anderson, and Mr. Otten breached the duties owed to Plaintiff when they failed to disclose to Plaintiff that LoCascio/Russell's property has been foreclosed upon and that they did not have the finances to purchase Plaintiff's home..."

A customer of Andrea Turnage (left) from the now-defunct Windermere Real Estate, Indian Wells, California, says: "One of the worst experiences in real estate I've ever had..." and "...extremely unprofessional and unethical..." READ ANDREA'S REVIEW HERE

 

 

 

 

Aaron Shriner Seattle Real Estate Review: Former Owner / Managing Broker of the now defunct Windermere Real Estate SCA Redmond, Aaron Shriner, has become a Seattle Realogics Sotheby's International Realty Agent! Astute realty service consumers have the right to know Mr. Shriner's Windermere history before enlisting his services at Sotheby's:

CASE #1: Windermere SCA Redmond was proud home to certified Windermere swindler, Paul Stickney, officially adjudged by Washington courts (Click to the Court's Opinion here) as having a conflict of interest and failing to disclose it to his Windermere SCA clients. Download the $1,030,627.00 judgment against Windermere Real Estate SCA and Paul Stickney here.

CASE #2: Windermere Chairman John W. Jacobi's Washington Loan Company, Windermere Real Estate SCA Redmond and agent Christopher Judd, sued for Intentional Misrepresentation and other claims in alleged "...unlawful scheme to enrich themselves at the expense of plaintiffs and others..." Click to the full Complaint in the case here. (Shriner and Stickney at above left, respectively.)

 

 

Windermere City Group maintaining "...the highest ethical standards..."

Despite Two Washington State Criminal Counts for First Degree Theft in Realty Transactions, Windermere Spokane City Group Employed Accused Agent Ryan S. Bishop (left), and Exposed Unsuspecting Realty Service Consumers to Bishop's Predatory Ethics.

Shortly after John L. Scott, Spokane, terminated his employment for inappropriate conduct when his clients' transaction file was mysteriously not found by management, Spokane Realtor Ryan S. Bishop went to work the next three years at Windermere City Group, Spokane, and even continued working for Windermere City Group several months after Washington State officially charged Mr. Bishop with two counts of First Degree Theft in realty transactions.

Count #1 arose from the John L. Scott case “…by color and aid of deception, by means of failing to reveal essential information regarding a real estate transaction,” where Bishop allegedly manipulated loan documents to have himself paid an “assignment fee” of $196,435.00 from his clients' loan proceeds. The clients didn’t learn of the scheme until March of 2012, when they reviewed the complete and final HUD-1 Settlement Statement. Count #2 from the same case pertains to “...deception, by means of misappropriating rent money, with intent to deprive” the same clients of rent proceeds from the newly-purchased residence while they had yet to relocate and occupy it. Further, “…the defendant used his or her position of trust, confidence, or fiduciary responsibility to facilitate the commission of the current offense, as provided by 9,94A.535(3)(n).” 

Although the criminal charges were filed in Spokane Superior Court on October 1, 2012, records indicate that Bishop was still employed by Windermere City Group, Spokane, well into 2013. A total of two civil actions plus the aforementioned criminal charges were pending against Bishop during his employment at Windermere City Group, where owner Joe Garst (left) states on his Windermere web page, “I will represent your best interest and be attentive to your needs, maintain the highest ethical standards, and conduct myself with integrity and honesty.” Bishop's criminal trial is set for 02-03-2014 in Spokane, and his real estate license is now reported as “Delinquent" by DOL. Incredibly, Bishop is currently listed on Linkedin as an Adult Family Home Administrator at Legacy Gardens of Spokane Adult Family Home. DOWNLOAD THE COMPLETE RYAN S. BISHOP SPOKANE SUPERIOR NO. 12103480-1 CHARGING INFORMATION HERE

 

 

WINDERMERE EAST REVIEWS & WINDERMERE-VESTUS FORECLOSURE GROUP REVIEW & CASES

KING COUNTY SUPERIOR COURT OF WASHINGTON—CASE NO. 12-2-08537-4 SEA

March 13, 2012: Vestus LLC, Windermere Real Estate East, and "Investment Specialist & Foreclosure Expert" Christopher Hall, Sued for Negligent or Fraudulent Misrepresentation, Violation of Washington Real Estate Law, including Chapters 18.85 and 18.86 RCW, and Violation of the Washington State Consumer Protection Act, Chapter 19.86 RCW, in Complaint Alleging:

"9. The Defendants hold themselves out as experts in the purchase of foreclosing real property. Defendants provide training and information on purchasing foreclosing property, and facilitate the financing and acquisition of foreclosing properties. 10. Vestus advertises that it gathers "real time market data" on foreclosing properties, "mines" the data, physically drives to the properties in order to ensure the accurate analysis of each property, and rigorously and carefully analyses the information it has collected.... 18. Information readily available to real estate professionals, but not to the public, included agents' remarks that the foundation of the Property had settling issues. 19. The Defendants did not disclose the settling problems to McGrath."

DOWNLOAD THE FULL COMPLAINT HERE; OR READ IT ON THE VESTUS FORECLOSURE GROUP REVIEW PAGE HERE; JUMP TO THE DEFENDANTS' ANSWER HERE

CASE HISTORY

January 11, 2013: After Windermere/Demco's FIRST Summary Judgment Motion, Judge orders that Plaintiff's claims for Breach of Contract, Fraudulent Concealment, Negligent Misrepresentation, CPA and violation of RCW 18.86 agency statute will remain. Windermere Vestus Demco Motion for Partial Reconsideration is DENIED. Plaintiff files jury demand. Vestus Foreclosure Group, Windermere Real Estate East, and Christopher Hall to stand trial for Fraudulent Concealment and other charges on August 12, 2013.

June 21, 2013: Vestus, Windermere East, Christopher Hall and Demco lawyers lose big again. Court denies SECOND Motion for Summary Judgment. DOWNLOAD THE COMPLETE SECOND SUMARY JUDGMENT MOTION HERE; AND THE ORDER DENYING IT HERE

From Plaintiff's Response to Defendants' Second Motion for Summary Judgement: "Well before the April 7, 2011 meeting, Vestus acquired an Agent Detail Report on the Property. On March 13, 2011, Hugh Stewart, one of Vestus' principals, pulled the Agent Detail Report from the MLS site. Hall Dep 21-22. At about one third of the way down the page contains the words, "Partial Slope." At the bottom, in a section called "Agent Only Remarks," is "settling issues"... The Agent Detail Report is not available to the public. Hall, Dep 63-64 ("Can ordinary citizens go on the MLS site and get the agent remarks, the agent-only remarks?" "No; because it is agent-only remarks."). The Agent Detail Report for the Property WAS NOT IN the Auction Packet Vestus distributed on April 7,2011." (Emphasis added.)

July 22, 2013: Just 2 weeks before trial, a Stipulation and Order to Amend Complaint to Remove Claim and Parties has been filed with an Amended Complaint that removes Hall and the Fraudulent Concealment charge. The newly Amended Complaint names defendant parties as Vestus LLC, and Windermere Real Estate East, Inc., and states in part: "...Hall provided McGrath information and recommendations on properties... Information readily available to real estate professionals, but not to the public, included agents' remarks that the foundation of the Property had settling issues... Defendants did not disclose the settling problems to McGrath."

After Stipulation and Amended Complaint, Trial to Proceed against Vestus Foreclosure and Windermere East for Breach of Contract, Negligent Misrepresentation, violation of the Consumer Protection Act, and Breach of Statutory Duty, on August 12, 2013.

Plaintiff's Trial Brief: "Since the hearing on Vestus' motion, [Plaintiff] McGrath has notified Vestus' attorney that she intends to drop her claim for fraudulent concealment. She has decided to drop Christopher Hall as a defendant. She has filed a motion to amend to reflect these changes in a stipulation and order agreed upon by defendants' attorney." Plaintiff's Proposed Jury Instructions and Proposed Special Verdict Form

Defendants' Trial Brief: "...Vestus does not guarantee the accuracy or completeness of information it makes available..." Demco Doubles Down: Vestus/Windermere East Proposed Jury Instructions and Proposed Special Verdict Form. Defendants' Motions In Limine.

Pre-Trial Updates: Joint Statement of Evidence; Defendants' Admissible Docs Notice, ER 904; Mediation Compliance: "The mediation did not resolve the dispute." Joint Confirmation of Trial Readiness, also filed on July 22, states trial is estimated to take 5 days. Defendants' Notice of Admissible Docs, Evidence Rule 904; Notice of Mediation Compliance: "The mediation did not resolve the dispute."

August 8, 2013: Notice Of Settlement Filed.

 

SUPERIOR COURT STATE OF WASHINGTON, KING COUNTY—NO. 13-2-36032-2 SEA

Windermere Real Estate East and Agent Stephen C. Hender (left) Sued in Complaint Alleging Negligent Breach of Duty, Unauthorized Practice of Law, Violation of the Consumer Protection Act and Claim for Injunctive Relief, by Plaintiff Charging Irretrievable Loss of $100,000.00 Earnest Money Deposit to Steven D. Smith Construction of Redmond. MORE HERE

Complaint alleges: "...Plaintiffs' aforesaid irretrievable loss and legal forfeiture of Plaintiffs' aforesaid One Hundred Thousand ($100,000.00) Dollar earnest money deposit was proximately caused by Defendant Hender's aforesaid tortious conduct of practicing law in violation of RCW 2.48.170-190..." and "...Plaintiffs allege that the unauthorized practice of law tortious actions of Defendant Hender and related negligent supervision of Defendant Windermere East are of such nature that other consumers are likely to be harmed by the Defendants' joint and several ongoing and continued repetition of such unauthorized practice of law." DOWNLOAD THE FULL COMPLAINT

 

SUPERIOR COURT OF WASHINGTON FOR KING COUNTY—CASE NO. 07-2-08247-6 SEA

YOU NEVER KNOW WHAT A WINDERMERE EAST ASSOCIATE BROKER MIGHT BE DOING:

" Judgment is hereby entered in favor of Ivan G. Popchoi and Varvara M. Popchoi and against Csaba Kiss (left) in the total amount of $44,885,39, ... "On October 17, 2006, Melanie A. Leary, an attorney with the Demco Law Firm, P.S., sent Mr. Williams a written response to his October 6, 2006 letter. Ms. Leary advised Mr. Williams that she represented Mr. Kiss and relayed Mr. Kiss’s position that the Popchois were not entitled to the protection of the warranties provided by the Statutory Warranty deed executed by Mr. Kiss. Ms. Leary’s letter notified Mr. Williams that Mr. Kiss was “far more inclined to let a court decide” the Popchois’ warranty rights “than to spend money to settle” the Popchois warranty claim.”

 

SUPERIOR COURT STATE OF WASHINGTON, COUNTY OF SPOKANE—No. 13200611-6

"...so what if we are off $20,000 sometimes."

Vestus LLC and Windermere Spokane City Group agents Brian Sandusky and Aaron Cunningham (at left respectively) Sued in Class Action Complaint (Certification Pending) for Violation of the Consumer Protection Act, Alleging "...Vestus was not a licensed real estate brokerage firm." 10/18/2013: Previously litigated in lower court where plaintiff's claims were dismissed. Court awards summary judgment based on collateral estoppel.

Spokane Class Action against Windermere's Vestus Foreclosure alleges Plaintiff "...lost a significant amount of money... on her purchase of the Liberty Lake property based on the representations made by Vestus," and that Vestus Defendant Cunningham stated: "...so what if we are off $20,000 sometimes." Allegations further state that Cunningham told the Plaintiff that he requested another Vestus client bidder to refrain from bidding as a "favor" to the Plaintiff.

The Class Action Complaint's Prayer for Relief Includes: 4. That it be declared that Vestus' fee/compensation structure is unfair and/or deceptive in violation of Washington's Consumer Protection Act; 5. That the Court rescind the contracts between Defendant Vestus and Plaintiff and other similarly situated individuals; 6. That Defendant Vestus be held liable to Plaintiff and other similarly situated individuals for any commissions or fees paid pursuant to rescinded contracts."

July 17, 2013:Stipulation and Order of Dismissal of Certain Claims Against Defendants Sandusky and Cunningham: "...Plaintiff, and Defendants Sandusky and Cunningham, through their respective counsel of record and hereby stipulate and agree that all claims against Defendants Sandusky and Cunningham in § IV of Plaintiff's Complaint for Violations of Consumer Protection Act, including ¶¶ 4.1 - 4.8 thereunder, may be dismissed without prejudice and without costs. UPDATE 8/29/2013: Trial scheduled for Monday, August 14, 2014, at 9:00 a.m.

Download the complete Class Action Complaint here. Jump to the Vestus Answer here. September 9, 2013: Answer, Affirmative Defenses, Counterclaim and Cross-Claim of Defendants Sandusky and Cunningham. September 13, 2013: Defendant Vestus LLC's First Motion for Summary Judgement.

 

john jacobi REALTY PREDATOR and WINDERMERE CHAIRMAN (left) JOHN W. JACOBI'S HUGE and HORRIFIC LEGACY OF GREED, LOSS, DISTRESS and FINANCIAL RUIN FOR WASHINGTON STATE HOMEBUYERS: THE COMPLETE WINDERMERE WASHINGTON LITIGATION HISTORY in comprehensive listings of Windermere Real Estate lawsuits from KING and PIERCE and SNOHOMISH counties, and all Washington counties where Windermere cases have been filed:

Benton Chelan Clallam Clark Columbia Cowlitz Franklin Grant Grays Harbor Island Jefferson Kitsap Kittitas Lewis Mason Pacific Pend Oreille San Juan Skagit Spokane Stevens Thurston Wahkiakum Walla Walla Whatcom Whitman Yakima Download the complete Windermere litigation history from ALL Washington counties here.

 

IS HE AMERICA'S MOST UNETHICAL LAWYER? Lying to judges and knowingly filing false complaints and other fraudulent documents in their courts. Violating defendant civil rights and attempting to coerce illegal, unjust settlement agreements through intimidating emails, excessive legal expense and intentionally inflicted emotional distress. Running away and voluntarily dismissing his own company's phony and process-abusive lawsuits on the eve of trial. He'll even try deliberately subverting a previously demanded and paid jury proceeding by surreptitiously ordering a bench trial. Is Windermere General Counsel, Lying Lawyer and Legal Process Cheat, Paul Stephen Drayna (left), the nation's most obtuse, unscrupulous and dishonest corporate attorney?

 

"A good reputation is more valuable than money." —Publilius Syrus

ARE YOU CONSIDERING A WINDERMERE FRANCHISE? CONSIDER CAREFULLY: Does franchiser Windermere Services Company disclose the Windermere network's pervasive professional misconduct, countless lawsuits and vast PR troubles to renewing and prospective Windermere franchisees? Under Federal Trade Commission Rules, Part 436, Disclosure Requirements, any franchiser has a legal duty to disclose: "16 CFR 436.2 (5)(n) ...any fact, circumstance, or set of conditions which has a substantial likelihood of influencing a reasonable franchisee or a reasonable prospective franchisee in the making of a significant decision relating to a named franchise business or which has any significant financial impact on a franchisee or prospective franchisee."

 

WINDERMERE'S UNLAWFUL SALES OF LOW-GRADE SECURITIES:

 

SUPERIOR COURT OF WASHINGTON, COUNTY OF KING—CASE NO. 10-2-30838-5 SEA

Windermere Real Estate Northwest, Inc., Agent Howard Johnson, Broker and Branch Manager Loretta Larson, Sued for Violation of the Washington State Securities Act (WSSA), Negligence, Negligent Misrepresentation, Negligent Supervision (Against Windermere and Larson), Breach of Fiduciary Duty, Violation of Washington's Consumer Protection Act

(Above left to right) President April Kieburtz, Designated Broker and Owner, Windermere Real Estate/Northwest; the generic silhouette head of Steven Kieburtz, CEO and Owner, Windermere Real Estate/Northwest; and Loretta Larson, Manager and Broker, Windermere Real Estate/Northwest.

ALLEGATIONS FROM THE COMPLAINT: "19. Windermere and Larson were “control persons” of Johnson under the WSSA with respect to Simmons’ SCI investment, pursuant to RCW 21.20.430 and common law... 20. Windermere and Larson had the power to control Johnson’s offers or sales of products to the public and Larson was the branch manager, charged with monitoring and managing the activities of the agents and brokers affiliated with such branch, including Johnson... 21. In connection with the SCI investment, Johnson misrepresented material facts to Simmons or omitted to state material facts necessary to make Johnson’s other material representations, in light of the circumstances under which they were made, not misleading." Read the complete report here

Case Updates: MOTION REGARDING PRETRIAL MATTERS: Windermere Northwest argues that the Court should not allow expert testimony interpreting the Securities Act: "The Court Should Exclude Witnesses from the Department of Financial Institutions." Parties stipulate to trial on June 4, 2012. Notice of Settlement dated 6/1/2012 filed on 6/5/2012.

 

IN THE SUPREME COURT OF THE STATE OF MONTANA—2012 MT 144A

Montana Supreme Court Reverses the Partial Summary Judgment of Windermere Helena Broker Rick Ahmann's (left) "Acquiron" Real Estate and Business Brokerage After Elderly Victim Seeks Damages of $4,635,485.51, Claims Unlawful Sale of Securities, Negligence and Fiduciary Breach: "The examiner found that DBSI was running a Ponzi scheme."

 

 

Are you considering LISTING YOUR HOME with Windermere, or BUYING A HOME LISTED by Windermere? Despite Windermere's false promotion of "Uncompromising honesty and integrity," if anything goes wrong in your Windermere home deal, WINDERMERE WILL FORCE YOU TO SUE. Before you buy or sell with Windermere, focus on the risk of Windermere's well-documented history of unethical misconduct in home transactions:

 

WINDERMERE REDMOND REVIEW

 

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON—NO. 62912-3-I

PAUL STICKNEY WINDERMERE REAL ESTATE'S (A.K.A. STICKNEY TEAM) MILLION-DOLLAR FAILURE TO DISCLOSE A CONFLICT OF INTEREST: Plundering Paul Stickney (left) was officially adjudged by Washington courts as having a conflict of interest and failing to disclose it to his Windermere SCA clients—Mark and Carol DeCoursey—when he sold them a house in Redmond, Washington, and then recommended a remodeling company to the DeCourseys. But Stickney neglected to mention he was AN OWNER of the remodeling company he was recommending, which absolutely ruined their home. Stickney testified that he DID NOT KNOW he was named as the remodeling company's VP until AFTER the DeCoursey's lawsuit began. STORY HERE.

READ THE PAUL STICKNEY/WINDERMERE REDMOND SUPERSEDEAS APPEAL BOND HERE. READ THE WINDERMERE REDMOND SCA/PAUL STICKNEY $1,030,627.00 JUDGMENT HERE.

 

SNEAKY: When the Craig Shriner family's former Windermere Redmond office became Windermere Redmond/East, conflict-of-interest swindler Paul Stickney was deleted from its roster, his listings tendered in the name of Windermere Redmond East agent Patricia "Patty" Ennis (left). But Ms. Ennis' email address was listed as "stickneyteam@windermere.com," and her "Cell/Direct: (206) 954-6475" was Paul Stickney's number. CONSUMERS BEWARE. Jump to the Court's Opinion on Mr. Stickney here.

 

In King County Superior Case No. 13-2-17465-1 SEA, Stickney, who literally destroyed the home and finances of his Windermere Redmond SCA clients (story here), has been SUED FOR MONIES DUE AND OWING OF $5688.06 BY AMERICAN EXPRESS BANK. (Read the Amex Stickney Complaint here; and the Amex Motion for Default here.) Perhaps Predator Paul is tasting the same distress and disgrace that he and Windermere have provided to so many others.

After thoroughly wrecking his unsuspecting clients' lives for nearly six years, Windermere Redmond crook Stickney now whines to the court: "...Although innocent, I was found guilty of things I never did, by a jury that did not hear the other sides of the story at trial... Further, to add insult to injury, the on-line attacks have become supported by judicial credibility..." and "...I am now behind on my house payments, I owe money to the IRS, and I have four other debts that are in arrears. I have been paying on the debts until I could pay no more. This ordeal has exhausted my assets and I am barely hanging on." —Click here for Paul Stickney's complete response to Plaintiff American Express. Update: Amex Motion to Strike Stickney's Answer as "...immaterial or impertinent..." Order Granted on Motion to Strike Portions of Defendant's Answer. 9/26/2013 Order of Dismissal.

 

SUPERIOR COURT OF WASHINGTON STATE, KING COUNTY—CASE NO. 09-2-46671-8 SEA

Windermere Founder John W. Jacobi's Washington Loan Company, Craig and Rosalie Shriner's Windermere Real Estate S.C.A. Redmond, and its Agent Christopher Judd, Sued for Intentional Misrepresentation and Other Claims in Alleged "...unlawful scheme to enrich themselves at the expense of plaintiffs and others..."

john jacobi(Above, left to right) Governing Persons of the Washington Loan Company: 1) Windermere Founder John W. Jacobi is listed as President of the Washington Loan Company; 2) Kendra Vita, Manager of franchiser Windermere Services Company is listed as Secretary of the Washington Loan Company; 3) franchiser Windermere Services Company General Counsel, attorney Paul S. Drayna—WSBA #26636—is listed as Registered Agent of the Washington Loan Company; 4) Don Riley, Washington Loan Company manager; 5) Windermere Real Estate S.C.A. Redmond owner Craig Shriner; 6) Windermere Redmond SCA managing broker Aaron Shriner; 7) Windermere Redmond SCA agent Christopher Judd.

From Yahoo Reviews... Comments for Aaron Shriner—Windermere Real Estate: "This office represented the buyer of our home, the agent failed to communicate information in a timely manner, nearly missed several deadlines to extend the offer, and when we expressed our frustration to the broker, we were met with a condescending response, lacking even the semblance of an apology. Find another office to work with - the customer service in this office is VERY poor."

Typical Windermere Network Office Scams: A Windermere Redmond Review That Every Realty Service Consumer Should Read

 

COURT OF APPEALS DIVISION 1, STATE OF WASHINGTON—NO. 58533-9-I

THE GRUELING HUMAN TOLL OF CHASING WINDERMERE CROOKS THROUGH THE COURTS: $311,304.67 IN LEGAL FEES, 5 YEARS DISTRESSING LITIGATION, and DEMOLITION OF THE HOUSE TO BUILD A NEW ONE...

COURT SAYS WINDERMERE CAMANO ISLAND'S SONYA EPPIG "...DID NOT SO UNEQUIVOCALLY SET FORTH THE PERMITTING AND INSPECTION PROBLEMS..." and "...[WINDERMERE] CAMANO LEARNED ABOUT THE PERMITTING AND INSPECTION PROBLEMS BUT DID NOT INFORM THE RUEBELS."

(Left) Sonya Eppig, still producing commissions for Windermere Real Estate/CIR Owner, Marla Heagle, and for franchiser Windermere Services Company.

"...Eppig did not tell the Ruebels about the addendum Nelson prepared disclosing that the engineering work was not complete and that the building plans did not meet the UBC requirements. Instead, Eppig helped draft a revised addendum that did not so unequivocally set forth the permitting and inspection problems. And when Camano Realty listed the Hovis property for approximately two years, Camano learned about the permitting and inspection problems but did not inform the Ruebels....

... Eppig did not tell the Ruebels that the Building Department had suspended the building permit. Sometime after May 6, Eppig obtained some engineering information from Preview Realty and requested building plans from Hovis’ architect.... On May 7 or 8, Eppig sent the Ruebels an extension until May 15 for the feasibility study and assured them that there was no problem with complying with the Building Department's request for the engineering information.... Contrary to Eppig’s assurances, VanDuine testified that he told Eppig the engineering data she provided was inadequate...

...Rather than proceed with remodeling, the Ruebels decided it was less costly to demolish the house and build a new house."

 

 

PRUDENT LEGAL MANAGEMENT: Consider Adding Franchiser Windermere Services Company To Your Windermere Complaint... 

Attention Attorneys and Windermere Fraud Victims: Forced by outrageous ethical breach into suing a local Windermere franchise, broker or agent? Windermere advertises "The highest ethical standards. Uncompromising honesty and integrity," but in truth runs away from its own unethical misconduct and forces damaged Windermere fraud victims to sue and endure years of legal expense, distress and strategic delay. 

Opinions state that Franchiser Windermere Services Company has a bona fide legal fiduciary interest in every local Windermere office transaction because it gets money from those transactions: When local Windermere franchises are sued and Complaints name "Windermere Real Estate Services Company," as a party, franchiser Windermere Services claims it has been "erroneously sued" and aggressively seeks its own dismissal from the lawsuit—but don't let that happen. If you're forced to sue your local Windermere franchise, remember: Franchiser Windermere Services Company HAS ALREADY PROFITED on your unethical Windermere transaction through its local franchise, and it therefore shares potential liability for your damages and attorney fees.  

LEGAL PRECEDENT: Windermere Services Company has previously argued affirmatively in King County Superior Court No. 05-2-3443 SEA that it is in privity with its Windermere franchisees: In its duplicitous pleading to escape counterclaims, Windermere Services Company ACTUALLY PREVAILED in a Partial Summary Judgment Motion that states it is in "privity" with a Seattle Windermere franchisee because, "...as the owner of the Windermere tradename, it is in privity with Windermere Real Estate/Northeast." Privity is defined as: a.) A relation between parties that is held to be sufficiently close and direct to support a legal claim on behalf of or against another person with whom this relation exists. b.) A successive or mutual interest in or relationship to the same property. 

FOR MAXIMUM POSSIBLE RECOVERY, PRUDENT LEGAL MANAGEMENT DEMANDS WINDERMERE FRAUD VICTIMS and THEIR COUNSEL SHOULD CONSIDER ADDING FRANCHISER WINDERMERE SERVICES COMPANY TO ANY COMPLAINT THEY FILE.  Access Windermere Services Company's Partial Summary Judgment Privity Motion & Order here.

 

 

 

Franchiser Windermere Services Company suing

and competing against its own franchisees:

 

 

SUPERIOR COURT STATE OF WASHINGTON FOR KING COUNTY—CASE NO. 10-2-36192-8 SEA

THE SAGA OF WINDERMERE PUYALLUP CANYON ROAD (WPCR) IS A REALTY FRANCHISE OWNER'S ULTRA-NIGHTMARE: Franchiser Windermere Services Chairman "...Jacobi decided to open another Windermere office in the territory in which WPCR was operating."

SUPERIOR COURT STATE OF CALIFORNIA COUNTY OF SAN DIEGO—CASE NO. 37-2011-00089709-CU-BC-CTL

"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, [Windermere Services] 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."

 

Attention agents: Considering a business

association with Windermere Real Estate?

IN THE COURT OF APPEALS STATE OF WASHINGTON DIVISION 1—No. 65159-5: "In Retaliation Windermere Sought to Make the Litigation as Expensive and Time Consuming as Possible to Dissuade Mr. Rodriguez and other Agents from Asserting Claims against Windermere."

"The trial court's award of reasonable attorney's fees and costs to Mr. Rodriguez was both appropriate and necessary pursuant to Washington law and its public policies. A finding otherwise would have validated a unilateral fees clause and resulted in the precise inequity the statute intends to remedy. This Court should disregard Windermere's attempt to truncate the relevant contractual language and misconstrue the law, and affirm the trial court's award of attorney's fees award to Mr. Rodriguez. Likewise, the trial court's award of prejudgment interest at 18%, as the parties had agreed was the reasonable rate of interest between them, was correct and should be affirmed."

 

SUPERIOR COURT, STATE OF WASHINGTON, COUNTY OF SPOKANE—No. 13201539-5

Complaint Alleges: "Durheim and Groves told Solerno not to inform the [buyer] Mitchells of this fact."

Husband and Wife Windermere Spokane Agents Greg Durheim and Carol Groves (left) and Windermere Manito Spokane (Joseph K. Nichols, Windermere Manito Owner, 2nd from left) Sued for Breach of Contract, Breach of Statutory Duties and Negligent Misrepresentation in Complaint Alleging that Durheim and Groves Told Co-Defendant "...not to inform..." Plaintiffs that Mortgage Lender Would Not Agree to Partial Release of Property.

"Sometime in the fall of 2011, Solerno told Durheim and Groves that his mortgage lender would not agree to a partial release of his property and that the closing on the Solerno property could not happen. Durheim and Groves told Solerno not to inform the Mitchells of this fact." DOWNLOAD A COMPLETE COPY OF THE COMPLAINT HERE

Motion for default of defendants Windermere and Groves: " ...More than twenty (20) days have expired since service of process, and Defendants have failed to file or serve an Answer to Plaintiff's Complaint, and are now wholly in default... He told me that an Answer would be filed no later that May 29, 2013. May 29, 2013 has come and gone without any Answer having been filed or served."

Defendants Windermere and Groves finally file an Answer on June 14, 2013: "...Windermere admits contacting Solernos at Plaintiff's request, to seek Solerno's participation in a boundary line adjustment but denies that the adjustment was to operate a commercial dog kennel."

 

 

WINDERMERE HIMLIE SHELTON REVIEW

SUPREME COURT OF THE STATE OF WASHINGTON EN BANC—No. 83660-4

Windermere Himlie Shelton Review: Nearly seven years litigation all the way to the Washington Supreme Court, and still going: Windermere's "The highest ethical standards. Uncompromising honesty and integrity," brings unsuspecting waterfront homebuyers...

An Interminable Windermere Himlie Legal Ordeal in Shelton, Mason County, Washington

"The Court of Appeals correctly reversed the trial court's dismissal of the Jackowskis' claims for breach of statutory fiduciary duties. The Court of Appeals also properly acknowledged that chapter 64.06 RCW does not bar common law rescission, and it properly reversed the trial court's dismissal of the Jackowskis' causes of action relating to fraud concerning the fill issue. For the reasons stated above, we affirm the Court of Appeals and remand to the trial court for further proceedings."

"The trial court permitted the Jackowskis to amend their complaint against Hawkins Poe and Johnson to include an allegation of failure to meet statutory duties under 18.86.050(1)(c) and against the Borchelts, Windermere Himlie, and Conklin for fraud and fraudulent concealment of cracks in the basement."

DOWNLOAD THE COMPLETE WASHINGTON SUPREME COURT'S OPINION HERE

(At left) Vince Himlie, owner and designated broker of Windermere Himlie, who states that he has been honored as "Realtor of the Year." And Windermere Himlie agent Jef Conklin, whose Windermere web page states, "Jef has the experience to make sure your transactions go as smoothly as possible," and "With Jef and Windermere in your corner you can`t help but come out a winner."

 

 

 

HOMESTREET BANK REVIEW • WINDERMERE MORTGAGE SERVICES SERIES LLC REVIEW

SUPERIOR COURT, WASHINGTON STATE, COUNTY OF PIERCE—Case No. 12-2-15705-2

Allegations against Homestreet Bank, Windermere Real Estate Services Company, Windermere Real Estate South, and Windermere Mortgage Services Series, LLC., all named as Cross-Claim Defendants:

john jacobi"WSC tracks loan and Title referrals by WRE office and individual agent. ... It is believed that WRE agents are generally ignorant that their "legal fund" is a profit center for the WRE office in which they work. ... 57. John Jacobi [left], majority owner of WSC is also 70% owner of voting shares of stock in WRE South."

"52. It was likely any suit against the Escrow Company would result in a counterclaim against WMSS South and WRE South. 53. Demco did not pursue any claim against the Escrow Company."JUMP TO THE COMPLETE CROSS-CLAIMS HERE

In response to Plaintiff Homestreet Bank's boilerplate Judicial Foreclosure Complaint against former Windermere Franchise Owner and Defendant Michael M. Ratcliffe, Ratcliffe's estranged wife, Co-Defendant and 3rd Party Plaintiff, Joyce M. Feeley, blows the lid off the Windermere / Homestreet partnership in her Answer, Counter-Claims and Cross-Claims, which in part allege:

"44. The WMIA fund runs a substantial surplus each year in excess of $500,000 that is distributed to the WRE office owners. 45. It is believed that WRE agents are generally ignorant that their "legal fund" is a profit center for the WRE office in which they work."

"...Mr. Bennion exerted substantial pressure through Windermere Mortgage Services Series and Mr. Ratcliffe to compel Ms. Feeley to return and re-sign the deed of trust without any qualifier."

1. VIOLATION OF FIDUCIARY DUTIES. Homestreet Bank violated its fiduciary duties when its agent, RICHARD BENNION, overstepped his role as a managing board member and assumed the role of the lender. Homestreet committed this violation when its agent, RICHARD BENNION, assumed the responsibility of making the final decision to fund the Milton property loan despite the numerous underwriting and processing shortcomings of that loan..." (Emphasis added.)

2. RESPA VIOLATIONS. Because WMSS and Homestreet Bank reimburse WSC and discrete WRE offices in relation to the volume of loans they refer, those payments CONSTITUTE AN IMPROPER KICKBACK in violation of CFR 3500.14. ..." (Emphasis added.)

3. CONSPIRACY TO COMMIT BRIBERY. Because WMSS, Homestreet Bank, and the other crossclaim defendants profited from unlawful bribery and the conspiracy to commit such acts, they have acted in violation of 18 U.S.C. 1962 (a) and (c). ..." (Emphasis added.)

DOWNLOAD JOYCE M. FEELEY'S ANSWER, COUNTER-CLAIMS and CROSS-CLAIMS HERE

 

GERACI v. HOMESTREET BANK: Is HomeStreet Bank a socially responsible financial institution?

 

 

SUPERIOR COURT OF WASHINGTON FOR KING COUNTY—No. 08-2-34857-1 SEA

$1,278,418.00 JUDGMENT DEBTOR—WINDERMERE AFFILIATED COMPANY COMMONWEALTH LAND TITLE COMPANY OF PUGET SOUND—IS NOW "CW TITLE" OF BELLEVUE AFTER A QUICKIE NAME CHANGE. SHOULD THE PUBLIC TRUST INCOMPETENT WINDERMERE SUBSIDIARY COMPANIES LIKE CW TITLE? Read the original Complaint in the case here. Read the Third-party Answer and Counterclaim here. Read the "$1,278,418.00 plus interest" Agreed Order against Defendant Commonwealth here.

As prior counsel to Plaintiff Seawest Investment, and then later as counsel for Defendant Commonwealth—IN THE VERY SAME CASE—Windermere-Demco lawyer Matthew F. Davis (left) is deposed as a WITNESS: Read his amazingly evasive and equivocal 80-page deposition in which he states, "I was not involved with this transaction at the time that it was negotiated. And as a result, I assumed that a disclosure statement was provided in connection with the initial contract formation... And it, because I was involved so much later than contract formation, IT SIMPLY DID NOT OCCUR TO ME AS A POSSIBILITY IT WOULD NOT HAVE BEEN PROVIDED." (Emphasis added.) Mr. Davis is also well-known for lying to the court and a defendant, and for abusing process through intimidation and coercion in another Windermere case.

 

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF IDAHO—CASE NO. 1:09-cv-00522-CWD

WINDERMERE REAL ESTATE/CAPITAL GROUP of BOISE, IDAHO, SUED FOR VIOLATION OF THE FAIR HOUSING ACT—TITLE VIII of the CIVIL RIGHTS ACT of 1968. WINDERMERE AGENT MARY LIESE ALLEGED TO HAVE TOLD AN IFHC TESTER, "WE PREFER PEOPLE 55 AND OVER."

 

Complaint Charges: "The Defendants have engaged in coercion, intimidation..." CASE UPDATE 07/19/2011: Stipulation of Dismissal filed by Intermountain Fair Housing Council. Defendants Steve Osburn and Mary Liese are now listed as employees at Windermere Boise—Access Realty.

 

U.S. DISTRICT COURT WESTERN DISTRICT OF WASHINGTON, SEATTLE—CIVIL ACTION NO. 12-cv-271

Windermere Real Estate Company and its Seattle-Wedgwood Office Broker, Carissa Turbak [Saffel], Sued for Copyright Infringement, False Designation of Origin and Unfair Competition—Violation of the Lanham Act—by Finito Services LLC, dba Sunspot Inns, Resorts & Vacation Rentals.

The Complaint Alleges: "Without the permission of Sunspot, Defendants selected, modified and published no fewer than 53 Sunspot photographs in their real estate marketing materials on multiple Internet websites..." Above left: Windermere Real Estate Company Owner John "OB" Jacobi; Windermere Real Estate Company Seattle-Wedgwood Broker Carissa Turbak Saffel.

 

WINDERMERE FRANCHISE OWNERS' BANKRUPTCY and TAX WARRANTS; MISCELLANEOUS WINDERMERE LEGAL, CREDITOR and DISCIPLINARY ACTIONS:

BK Petition of Windermere Real Estate Capital Group, Inc., Owner Steven Alan Osburn: Total Assets of Steven Alan Osburn (left) $25,804.12; Total Liabilities, $1,368,534.85. Creditor Holding Unsecured Nonpriority Claim, Windermere Services Company, $130,000.00. Download the Osburn Bankruptcy Petition here. Mr Osburn is currently a real estate agent at 43 Forty Three Degrees North Real Estate, Boise, Idaho; M2 Idaho, LLC. Osburn's Windermere Capital Group was sued for Violation of the Fair Housing Act.

 

BK Petitions of Windermere Real Estate Commencement Associates Owners Dick Beeson and David Sinding: Total Assets of (left) Richard E. Beeson—aka Dick Beeson—and Robin L. Beeson, $556,426.00; Total Liabilities, $2,795,696.00. Download the Beeson Bankruptcy Petition here. Petition States Beeson is Currently a Real Estate Broker at RE/MAX Professionals, Tacoma. Total Assets of (2nd from left) David C. Sinding, $482,600.00; Total Liabilities, $1,952,497.00.

 

STATE WARRANT FOR UNPAID TAXES #167188A: CATALYST COMMERCIAL PARTNERS INC (a corporation) WINDERMERE COMMERCIAL. Catalyst President Robert Regan (left) was "...Broker/Owner of Windermere Commercial/Metro and the Director of Commercial Real Estate for all of Windermere Real Estate throughout the Western United States..."

 

WINDERMERE REAL ESTATE BONNEY LAKE - LAKE TAPPS Owner Tom Tollen's Highmark Homes WARRANT NO. 13-00771-SC For Unpaid Construction Compliance Penalties, An Unregistered Contractor, Infraction No. NSLOD00507, Compliance Penalty, Interest, Filing Fees and Surcharges, $3070.00. Satisfaction of Warrant No. 13-00771-SC. Click to Windermere Bonney Lake - Lake Tapps lawsuits here.

 

 

WINDERMERE FEDERAL WAY REVIEW

U.S. DISTRICT COURT, WESTERN DISTRICT OF WASHINGTON AT SEATTLE—NO. C07-1808 JCC

WINDERMERE REAL ESTATE/WEST CAMPUS, FEDERAL WAY, WASHINGTON, AND ITS AGENT DAN DENNIS, SUED FOR BREACH OF CONTRACT, FRAUDULENT MISREPRESENTATION, UNJUST ENRICHMENT, AND NEGLIGENT MISREPRESENTATION.

Complaint alleges that “…Windermere Real Estate/West Campus, Inc. and Dan Dennis SUPPLIED FALSE INFORMATION to AMERCO in its business transaction…" (Above left and right) Windermere Defendant Dan Dennis, the generic silhouette head of John A. Tidwell, Manager, Owner and Designated Broker of Windermere West Campus.

 

SUPERIOR COURT, STATE OF WASHINGTON, COUNTY OF KING —CASE NO. 08-2-30394-2

Windermere Real Estate West Campus Federal Way; Agents Dan Dennis and Cheryl Crutcher Sued by Newport Village Condominium Owners Association for Misrepresentations and/or Omissions of Material Fact, Fraudulent Concealment, and Violation of the Consumer Protection Act.

(Above left to right) Windermere Real Estate/West Campus Federal Way Defendants Broker Dan Dennis and Salesperson Cheryl Crutcher. The generic silhouette of John A. Tidwell, Owner and Designated Broker of Windermere West Campus Federal Way. Complaint alleges "... intentionally and/or negligently  failed to disclose facts regarding known defects and physical hazards..."

 

SUPERIOR COURT STATE OF WASHINGTON, COUNTY OF PIERCE No. 09-2-08369-5

Tacoma, Gig Harbor, Federal Way Agent John Siridakis, Sued for Misrepresentation and Violation of RCW 18.86.030(1)(a)(b)(d).

The Complaint in part alleges: "...Defendant John Siridakis knew prior to closing that the City of University Place would not allow the property to be subdivided into additional building lots and knew that Plaintiff were [sic] making the purchase with the express understanding that such subdivision would be allowed..."

From the WindermereWatch e-mailbag: Selling a home the Windermere Way, through bullying female clients with threats, harassment and intimidation...

Windermere Tacoma, Gig Harbor, Federal Way West Campus Agent John Siridakis Review: "Trying to get me and my two young (age 6&7) "kicked out" of our house..."

"This is my third experience with four Windermere agents, three in Gig Harbor and one in Tacoma. These people truly have zero professionalism and worse than that, feel they are entitled to treat their clients as if we work for them not the other way around."

John Siridakis of Tacoma, Gig Harbor, and Windermere Federal Way West Campus, emails HIS OWN CLIENT, HIS OWN CLIENT'S LAWYER, AND HER EX-HUSBAND'S LAWYER to demand "...It is now VERY OBVIOUS that Mrs Seller feels as if she is going to not only Run the ship but steer it as well!..." and "...She needs to be removed from the property via the courts..." CLICK HERE FOR MORE DETAILS

 

 

ATTENTION AGENTS AND REALTY FRANCHISE OPERATORS: CONSIDERING A BUSINESS ASSOCIATION WITH WINDERMERE REAL ESTATE?

"In Retaliation Windermere Sought to Make the Litigation as Expensive and Time Consuming as Possible to Dissuade Mr. Rodriguez and other Agents from Asserting Claims against Windermere"

"On April 4, 2005, without explanation, Mr. Jacobsen terminated Mr. Rodriguez's agency with Windermere. CP 92. As part of the termination agreement, Mr. Jacobsen reviewed the files for five pending transactions and agreed that Mr. Rodriguez was entitled to one half of the listing commission on those transactions...

In November 2005, however, before the Brady transaction closed, Mr. Jacobsen unilaterally changed the commission disbursement form in a way that eliminated Mr. Rodriguez's share of the listing commission. CP 92; TE 14. Neither Mr. Jacobsen nor Ms. Thompson ever told Mr. Rodriguez of the change or that he would not receive his $16,800 share of the commission from the Brady transaction. CP 94." Windermere Wall Street's Richard "Jake" Jacobsen (shown left).

The peril in being a Windermere agent: Read ex-Windermere agent Roberto Rodriguez's respondent's brief here.

 

WINDERMERE'S PREDATORY and UNETHICAL FRANCHISING PRACTICES:

A REAL ESTATE FRANCHISE OWNER'S ULTRA-NIGHTMARE: "...Jacobi decided to open another Windermere office in the territory in which WPCR was operating..."

john jacobiThird Party Complaint Alleges, "Despite Jacobi's contractual obligation to personally guarantee WPCR obligations to Bank of America and demands by WPCR members to do so, Jacobi failed and refused to sign personal guarantees of these obligations," and "On September 14, 2010, Maxwell heard from a real estate agent working at WPCR that the agent had received an email from WSC [franchiser Windermere Services Co.] 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." (Windermere founder John Jacobi, left.)

PLEADINGS AND THE ENTIRE SAGA OF WINDERMERE PUYALLUP CANYON ROAD

WINDERMERE SERVICES COMPANY v. MAXWELL (FORMER WINDERMERE PCR OWNER) UPDATE: VOLUNTARY DISMISSAL OF CLAIMS FILED

WINDERMERE EAST SUES ITS OWN AGENT—DEFAULT JUDGMENT OF $76,535.47

 

WINDERMERE SERVICES LITIGATION with DISGRUNTLED FORMER FRANCHISEES

24 Former Windermere California Offices Drop the Windermere Brand

 

COMPLETE LIST OF PIERCE COUNTY, WASHINGTON, WINDERMERE CASES

 

 

PAUL STEPHAN DRAYNA, MATTHEW F. DAVIS REVIEWS; DAVISLEARY REVIEW; DEMCO LAW FIRM REVIEW:

DEALING WITH WINDERMERE-DEMCO LYING LAWYERS and LEGAL PROCESS CHEATS, PAUL STEPHEN DRAYNA and MATTHEW F. DAVIS?

DON'T EXPECT HONEST, AVERAGE LEGAL COMPETENCE—OR EVEN COMMON DECENCY: Opposing counsel and legal professionals should take note of Windermere Services Company and Demco Law Firm Lying Lawyers and Legal Process Cheats, Paul Stephen Drayna and Matthew F. Davis (shown left, respectively).

These two princes of process abuse file false, prevaricating lawsuits merely to intimidate Windermere victims, coerce unjust settlements, and bankrupt innocent defendants—then they run away and voluntarily dismiss their own action under CR41 just before trial when they fail at forcing an innocent defendant to sign away their speech rights. For proof, click here to read one of the Drayna/Davis/Windermere proposed "settlement" agreements that terminate speech rights, accompanied by Windermere's specious Trade Libel & Defamation Complaint and its CR41Voluntary Dismissal.

Holding lawyers in low esteem has become a national pastime, and absolutely craven characters like Drayna and Davis are just a couple of the many reasons why: They will lie to courts and opposing parties. They will file fallacious and erroneous documents with the court. They will email an opposing party telling them not to hire a lawyer when they have just served that party a lawsuit. They will call a judge's chambers and request more time without informing an opposing party. They'll even file an order for a bench trial when they know a jury trial has been demanded and paid for. Their poor reputations proceed them at court—and consequently—also reflect on those whom they represent before judges and courtroom personnel.

Windermere-Demco must often be compelled by courts to provide or participate in discovery—as in this example. For greater detail on Drayna-Davis misconduct—click here. information on Windermere Services Company's privity with franchises—click here.

 

 

 

SUPERIOR COURT, STATE OF WASHINGTON, COUNTY OF KING—CASE NO. 08-2-34857-1 SEA

Jury Finds Windermere's "Affiliated Service" Business, Commonwealth Land and Title Company of Puget Sound, Negligent, Awards Third-Party Plaintiffs $1,190,000.00...

...Don't risk a sloppy, incompetent home transaction, or a concealed Windermere agent/broker insider referral scam. Commonwealth Land and Title Company of Puget Sound changed its name to "CW Title" as of September 1, 2011: CW Title is just Commonwealth Land and Title Company of Puget Sound by another name. Don't Trust CW Title with your home!

CW TITLE REVIEWS: "I'm still waiting to close on my property because of her lies."

Windermere's Commonwealth Land Title of Puget Sound—AKA CW Title—Sued for Slander of Title and CPA Violation: Dismissal Update

 

 

BAC HOME LOANS SERVICING, LP FKA COUNTRYWIDE HOME LOANS SERVICING LP, a Texas Limited Partnership; NORTHWEST TRUSTEE SERVICES CORPORATION, a Washington Corporation; COMMONWEALTH LAND AND TITLE OF PUGET SOUND, LLC, a Washington Limited Liability Company; FEDERAL HOME LOAN MORTGAGE CORPORATION, a United States Government Sponsored Enterprise, sued for Wrongful Foreclosure, Violation of the Consumer Protection Act, and other claims.

Complaint alleges: "This is a violation of the Trustee's duty of good faith as provided by statute and a violation of federal statutes."

 

 

IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON FOR SKAGIT COUNTY—CASE NO. 09-2-00178-5

CO-OWNER OF WINDERMERE MOUNT VERNON/SKAGIT VALLEY AND WINDERMERE ANACORTES PROPERTIES, NATE SCOTT; ALSO SALES MANAGER COLLEEN CRAIG, AND AGENT MEREDITH LAWS OF WINDERMERE ANACORTES PROPERTIES (left, respectively), SUED FOE FRAUD IN MYSTERIOUSLY APPEARING "2ND LISTING" CASE

 

 

DELIBERATELY AND KNOWINGLY CONCEALING TOXIC RAT INFESTATION IN A RUINED HOME DECEPTIVELY PAINTED-UP WITH FRESH "MARTHA STEWART COLORS," AND THEN LYING ABOUT IT, TOO. WINDERMERE REAL ESTATE NORTHEAST KIRKLAND'S INCREDIBLE PREDATORY LIARS, GEORGE RUDIGER AND JOAN WHITTAKER: THE WORST OF THE WINDERMERE WORST. (At left, George Rudiger and some of his concealed rats; lying Realtor Joan Whittaker photo unavailable.)

 

 

Current Windermere Real Estate Chino Hills King Realty Group Owner, Richard Michael King, had real estate license "...revoked; provided, however, a restricted real estate broker license shall be issued..." by Department of Real Estate, State of California, when previously operating as Century 21 King Realtors...

...From "In the Matter of the Accusation..." filed by the Department of Real Estate, State of California, June 11, 1998: "The overall conduct of Respondent KING [left], constitutes a failure on his part, as officer designated by a corporate broker licensee, responsible for the supervision and control over the activities conducted on behalf of MDR by its officers, managers and employees as necessary to secure full compliance with the provisions of the Real Estate Law including the supervision of the salespersons licensed to the corporation in the performance of acts for which a real estate license is required.

This conduct is cause for the suspension or revocation of the real estate license and license rights of KING pursuant to the provisions of Sections 10159.2 and 10177(d) of the Code." Mr. King's license was reinstated on August 13, 2002.

 

 

WINDERMERE AFFILIATED BUSINESS LAWSUITS & LITIGATION

U.S. DISTRICT COURT, NORTHERN ALABAMA SOUTHERN DIVISION, CIVIL ACTION NO. CV-09-1009-UNAS-IPJ

Windermere Affiliated Business OLD REPUBLIC HOME PROTECTION COMPANY SUED IN FEDERAL NATIONWIDE CLASS ACTION COMPLAINT alleging, "This case pertains to defendant's uniform, nationwide practice of charging home warranty premiums in connection with the settlement or closing of home mortgage loans in a manner that violates RESPA, specifically Section 8(a), which prohibits, among other things, the giving or accepting of fees in exchange for the referral of any "service involving a federally related mortgage loan" to "any person."

THE "AFFILIATED" BUSINESSES THAT PAY PUBLIC PREDATOR WINDERMERE REAL ESTATE, ITS EMPLOYEES AND/OR AGENTS—WHO HAVE A DIRECT OR INDIRECT OWNERSHIP INTEREST AND MAY RECEIVE A FINANCIAL BENEFIT—TO STEER HOME BUYERS AND SELLERS TO THEIR SPECIFIC SETTLEMENT SERVICES: Is it unethical?

WINDERMERE AGENTS and BROKERS COMPEL SELLERS and BUYERS TO SIGN A FORM: Windermere SoCal's "Affiliated Business Arrangement" in part states:

"This is to give you notice that Windermere Real Estate SoCal has a business relationship with Old Republic Home Warranty, GeoAssurance, Orange Coast Title Company, The Escrow Source, imortgage.com and Mortgage Capital Partners. Windermere Real Estate SoCal and/or certain owners, employees and/or agents of Windermere Real Estate have a direct or indirect ownership interest in Old Republic Home Warranty, GeoAssurance, Orange Coast Title Company, The Escrow Source, imortgage.com and Mortgage Capital Partners. Because of these relationships, this referral may provide a financial benefit to Windermere Real Estate SoCal, its employees and/or agents. DOWNLOAD A PDF COPY OF THE WINDERMERE SOCAL "AFFILIATED BUSINESS ARRANGEMENT" HERE

 

GERACI v. HOMESTREET BANK: Is HomeStreet Bank a socially responsible financial institution?

 

 

 

UNABASHED PROFIT ON WINDERMERE AGENTS and BROKERS WITH LEGALLY ADJUDICATED HISTORIES OF UNETHICAL MISCONDUCT, and EXPENSIVE, INTIMIDATING, PHONY LAWSUITS FILED TO TERMINATE THE SPEECH RIGHTS OF DAMAGED WINDERMERE FRAUD VICTIMS...

IS WINDERMERE REAL ESTATE ONE OF WASHINGTON'S MOST RESPECTED BRANDS?

john jacobiPUBLIC PREDATORS: Windermere Founder and Chairman, John W. Jacobi (left), and Windermere Services General Counsel, attorney and Jacobi yes-man, Paul Stephen Drayna—a University of Wisconsin Law School alumnus (right)—ruin damaged Windermere customers with marketing lies and the costly, mendacious lawsuits they file against defrauded Windermere victims who speak publicly.

Jacobi and Drayna falsely sue an outspoken party for trade libel and defamation, try to coerce the defendant into a "dark clause" settlement agreement through fear and intimidation, continue to prosecute the bogus action for years at enormous cost to the parties, then run away and voluntarily dismiss their own lawsuit under Civil Rule 41, just prior to trial, when the honest, innocent victim persists in refusing to sign away their speech rights. Is Windermere Real Estate one of Washington's most respected brands?

 

 

SUPERIOR COURT, WASHINGTON STATE, KING COUNTY—CASE NO. 11-2-35973-5 SEA

WINDERMERE BELLEVUE COMMONS "NOT MY PROBLEM" CASE UPDATE: PLAINTIFF ADDS REGALL CONSTRUCTION IN FIRST AMENDED COMPLAINT

Windermere Real Estate Bellevue Commons Sued for Unlawful Removal and Exclusion of Plaintiff from the Residence, Negligence, Breach of Statutory Duty, Conversion, and Violation of the Consumer Protection Act. Windermere Bellevue Commons Sales Associate Tony Ferrelli's Alleged Response when Informed of Plaintiff's Missing Personal Property was "Not my problem." The Windermere Bellevue Commons Answer here.

(Left to right) Windermere Bellevue Commons associate Tony Ferrelli, associate Marcus Crane, and Windermere Bellevue Commons owners Courtney Adams, and Amy Adams, whose Windermere web page states "I strongly believe that everyone should be treated with kindness, fairness, caring, and honesty." But does Ms. Adams' definition of honesty include informing the Bellevue Commons clients of Dick and Cecilia Pelascini about their violation of the consumer protection act?

 

 

 

SUPERIOR COURT, STATE OF WASHINGTON, COUNTY OF PIERCE—CASE NO. 09 2 08671 6

 

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.

 

 

(Left to right) : 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.

 

 

 

IN THE SUPERIOR COURT OF WASHINGTON FOR KING COUNTY—CASE NO. 08-2-42345-0 SEA

john jacobiWINDERMERE REAL ESTATE/WALL STREET—Where Windermere Founder John W. Jacobi is listed as Director—PROFITS ON LOAN-CON SCAMMER CHERYL JONET

Recently deceased Windermere Real Estate/Wall Street agent Cheryl Jonet was a judgment debtor and defendant in many legal actions involving lawsuits for mishandling earnest money, the breach of promissory note agreements, and unlawful detainer. Peter Doorish was selling a home in February of 2005, and Jonet was a buyer’s agent. Jonet represented her buyer as being a lawyer, when in reality, the buyer was in fact a clerical employee and the single mother of four children.

Jonet convinced Doorish to provide the buyer a $50,000 loan, with assurances that Windermere lawyers would generate the proper paperwork. But Jonet actually kept the Doorish loan for herself... (Shown left to right) Rich Gangnes is an owner and also the designated broker of Windermere Real Estate / Wall Street; Jake Jacobsen is the managing broker at Windermere Wall Street where both were on duty for the Doorish and Jonet cases; Windermere chairman and founder, John W. Jacobi. CLICK TO THE FULL REPORT HERE.

 

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT TACOMA—NO. CV-05401

 

Windermere Real Estate Bainbridge Island and Associate Broker Debbie Nitsche (left) Sued for Copyright Infringement, Violation of the Lanham Act, and Unfair Competition:

 

"Without permission of Plaintiff Lawrence, Defendants selected, modified and placed Plaintiff’s photograph as modified in the “Walkthrough Media” video... As part of their video and/or website services, Defendants Clark, Nohre and/or GraphicalData sold and distributed the video to various real estate agents, including without limitation, Debbie Nitsche..."

 

IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON COUNTY OF KING—CASE NO. 98-2-17607-5

 

Washington State Representative Marcie Maxwell is a Windermere Associate Broker who never revealed her knowledge of a home’s septic system defects:

 

Once again, Windermere escapes the legal responsibility for damages based not upon the merits of a case, but by exploiting our dysfunctional courts; and also through the disingenuous machinations and legal gymnastics of its ethically-challenged and crafty Demco counsel. (Left) Washington State Representative and Windermere Associate Broker, Marcie Maxwell. CLICK HERE TO THIS REPORT

 

Windermere Agent Recommends Rookie Inspector Who Misses Toxic Mold. (Left) Judy Bigelow, agent for Windermere Real Estate / West Sound, Silverdale. RCW 18.86.030: "Regardless of whether the licensee is an agent, a licensee owes to all parties to whom the licensee renders real estate brokerage services the following duties, which may not be waived: (a) To exercise reasonable skill and care; (b) To deal honestly and in good faith."

 

IN THE SUPERIOR COURT OF WASHINGTON IN AND FOR KING COUNTY—CASE NO. 07-2-17754-0 SEA

Windermere Real Estate Oak Tree and Broker Steve Laevastu Sued for Negligent Misrepresentation and Violation of the Consumer Protection Act. "Defendants Laevastu, on behalf of himself, Windermere and other defendants, misrepresented the history and quality of the Stationhouse to the current owners of Units A, B, and C prior to their purchase of a unit at Stationhouse. These buyers reasonably relied on the representations of Laevatsu and Windermere when they decided to purchase their units." (Left) Broker Steve Laevatsu of Windermere Real Estate / Oak Tree.

 

UNITED STATES SENATOR MARIA CANTWELL TAKES A WHOPPING $49,200 IN CAMPAIGN CONTRIBUTIONS FROM PUBLIC PREDATOR WINDERMERE REAL ESTATE! (Left) Senator Maria Cantwell, Democrat from Washington State, whose website says she "...is driven by her duty to serve the people..."

 

 

cate moyegregoirelucegranlyAfter Nearly 7 Years Producing Commissions for Windermere Services and Windermere Spokane Valley Owner Cate Moye, Convicted Robbery Felon and Shotgun-Shootout Windermere Agent, Nicholas Granly, Mysteriously Disappeared from the Windermere Roster—just as Owner Moye is Nominated for Vice Chair of Washington’s Real Estate Commission.

Did Ms. Moye ever advise ANY of her unsuspecting clients that Mr. Granly might be showing their homes—or grant them the opportunity to deny Windermere agent Granly access to their homes? (Shown left to right) Cate Moye, Owner Windermere Real Estate/Valley, Spokane; Washington State Governor Chris Gregoire; Washington State Department Of Licensing's Director Liz Luce; and Windermere Real Estate/Valley, Spokane's Agent Nicholas Granly.

 

 

BUYERS BEWARE: DON'T PURCHASE PROPERTIES BUILT BY BENNETT HOMES OF BELLEVUE

Bennett Homes (examples left) of Bellevue is Generating Commission Revenue for Public Predator Windermere Real Estate: FOR THEIR OWN PROTECTION, consumers are urged to refuse seeing—OR BUYING—Bennett Homes represented by Windermere Real Estate and Windermere Bellevue Commons. PROTECT YOUR RIGHT to ETHICAL CONDUCT in REAL ESTATE TRANSACTIONS.

 

National Real Estate Fraud Center—Windermere Real Estate Case Histories:

SOUND BUILT HOMES V. WINDERMERE REAL ESTATE SOUTH: "Accordingly, Sound Built is now entitled to a judgment against Windermere..."

 

"DUAL AGENCY IS PERILOUS" says Court. "...Windermere did not advise the Lunsfords that it would present the Thomas offer." LUNSFORD v. FRALEY

 

EARNEST MONEY FORFEITURE: Court rules "...plain language of RCW 64.04.005 does not allow substantial compliance..." CHRISP v. GOLL

 

Important Washington Real Estate Court Cases:

 

Svendsen v Stock: Washington Consumer Protection Act Applies to Real Estate Brokers

 

SOUND BUILT HOMES V. WINDERMERE REAL ESTATE SOUTH: "Accordingly, Sound Built is now entitled to a judgment against Windermere..."

 

"DUAL AGENCY IS PERILOUS" says Court. "...Windermere did not advise the Lunsfords that it would present the Thomas offer." LUNSFORD v. FRALEY

 

EARNEST MONEY FORFEITURE: Court rules "...plain language of RCW 64.04.005 does not allow substantial compliance..." CHRISP v. GOLL

 

An important message to University of Washington administrators, staff and regents about The Windermere Cup, social responsibility, and the University's relationship with John Wood Jacobi and Windermere Real Estate

 

 

 

PLEASANT BEACH VILLAGE, BAINBRIDGE ISLAND, WA, REVIEW:

PROSPECTIVE COMMERCIAL TENANTS of PLEASANT BEACH VILLAGE SHOULD BEWARE of FUNDING PUBLIC PREDATORS JOHN JACOBI and WINDERMERE REAL ESTATE with THEIR RENT PAYMENTS.

 

Bainbridge Island Architect Charlie Wenzlau and Tad Fairbank of Fairbank Construction help realty predator Jacobi on community lifestyle center.

john jacobi"Abandoned Lynwood Center Project "Blossom Hill" is now "Pleasant Beach Village" under the new ownership of John Jacobi, founder of Windermere Real Estate. Members of the Jacobi family have purchased the Blossom Hill development and are working with Jim Laws, Charlie Wenzlau and Tad Fairbank with the goal of turning the Lynwood Center neighborhood into a community lifestyle center.

We look forward to sharing regular updates about this project." (Above left to right) Windermere Founder John Jacobi, Windermere BI Owner Jim Laws, Pleasant Beach Village contact and Windermere Real Estate West Sound Owner/Managing Broker Carter Dotson.. “The completion of Pleasant Beach Village will solidify this neighborhood service center as a vibrant and expansive destination.” — Arnie Sturham, Owner, Treehouse Cafe

 

JUDGMENT DEBTOR WINDERMERE RELOCATION “…ABANDONED AND VACATED THE PREMISES” IN BREACH OF OFFICE LEASE,“…AMOUNT OF ALL DAMAGES IS $168,597.30…” In Complaint No. 09-2-12257-1 SEA, Filed in King County Superior Court on March 12, 2009, Plaintiff Legacy Partners in part states: "1. Defendant Windermere Relocation, Inc., is a Washington corporation, doing business in this state and county.... 5. Defendant leased the Premises from Plaintiff for the purpose of operating a commercial business. 6. Defendant has abandoned and vacated the Premises... The amount of all damages is $168,597,30, as detailed in Exhibit A.”

Filed October 27, 2009: ORDER AND JUDGMENT ON ANSWER OF GARNISHEE AND ORDER TO PAY.

 

• Welcome to WindermereWatch •

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. Is that the "Highest ethical standards. Uncompromising honesty and integrity?"

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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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.

john jacobiBefore 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 an 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—Case Update: Stipulation and Order for Dismissal. And the Windermere affiliated service company, Commonwealth Land Title Company of Puget Sound (recently re-named "CW Title") , has 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.

jill jacobi woodGoverning 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 only practicing marketing fraud at Windermere. As Windermere in-house counsel, Drayna oversees Windermere's predatory litigation strategy of deliberately abusing the legal 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. Drayna is also listed on the Board of Directors at Seattle Pro Musica, "a world of choral beauty," as being Pro Musica's Corporate Secretary and Legal Counsel. Pro Musica states as part of its mission "Respect/Integrity—a principle of respect and integrity in all our endeavors." So while Mr. Drayna is ruining lives by prosecuting costly, false and mendacious lawsuits that seek to intimidate Windermere victims and terminate their speech rights, he is also promoting "...a belief in the importance of music as a means of connection to each other and the community." Visitors to WindermereWatch.com and responsible citizens alike are urged to boycott Seattle Pro Musica concerts. Visit the boycott Seattle Pro Musica page by clicking here. Read a more in-depth review of Drayna's legal practice here.

 

WINDERMERE'S DEMCO LAW FIRM:

ESCHEWING ETHICS and DOING WHAT OTHER LAWYERS JUST WON'T DO

john demcoAttorney 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.

matthew davisWindermereWatch 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, 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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