Our Story
Part III

We were paying not only the mortgage on The Cottage, we were also paying rent on a nearby four-bedroom home.  We had a financial motivation to get the work done quickly.

When we expressed our concerns to Bob Trustworthy in the Fall, he said the work would be completed by early December and we would be spending Christmas in our house.  We began to have our doubts about the move-in date, and feared our money would be exhausted.  We recalled that on June 8, 2004 meeting, Stickney laid out plans to help finance the project (Exhibit phs 9).

Paul discussed two different ways that more money could be obtained if the DeCourseys choose to go beyond $70,000.

To refinance the first and second with a new first and new second, or just a new first, based on the value of the home with the work being done to it.  Paul mentioned this would cost between $1,500 and $2,000, which should be closer to $1,500 of cost that would not be recuperated, if this approach were used.
—Transcript of June 8, 2004 meeting.  (Exhibit phs 9.)

72.  Stickney Refers Us To Rosanova

So in November, we called Stickney and explained our situation.  He expressed no surprise at the escalating costs or the slow progress, and of course he did not mention his relationship with TMC.  Instead, he recommended we visit Vince Rosanova, President of Redmond Mortgage in Issaquah, WA, for help with a construction loan. 

Vince told us we could get a loan to help us through construction, but the construction needed to be further along.  Meanwhile, he advised us to cash in some other assets.  He told us we could take the cash out of our IRAs for 60 days and pay the money back without penalty, and that we could take out loans against our life insurance policies.  We could pay off these debts as soon as the construction loan came through, Vince said.  We followed his program, taking out loans on our life insurance and cashing in our IRAs.

73.  Stickney, Trustworthy & Rosanova:  Old Friends

Vince asked us who was doing the renovation work, and we mentioned Trust Me Construction (footnote).  He said, “Oh, Bob Trustworthy is doing it for you?”  Later we mentioned Vince's name to Trustworthy, and found that Trustworthy knew Vince, too.  It seemed that Messrs. Stickney, Trustworthy, and Rosanova had all done business together in the past.  We now wonder if Redmond Mortgage is part of “the Stickney Team.”

We also wonder if Stickney receives any form of compensation from Redmond Mortgage for his referrals.  We note that federal law prohibits kickbacks and unearned fees to real estate agents pursuant to federally related mortgage loans.  (USC 12, Chapter 27, Section 2607.)  Apparently the practice of giving real estate agents kickbacks for such referrals was so widespread, the federal government had to step in.

74.  Promised December Deadline Missed

When it was obvious TMC would miss its early December deadline, Trustworthy maintained his savoir-faire.  We comforted ourselves by recalling that TMC had “long experience with home improvement work.” (Exhibit tmc 3, July 2 estimate.)  Surely TMC knew how long the work would take, and it would soon be done?  As the renovations continued, Trustworthy always assured us completion was imminent, and there was “no problem.”

We now understand that well-advised homeowners require contractors to provide them with renovation milestones: “By such and such a date, ABC will be done.  By such and such a date, XYZ will be done.”  We had no such guidelines, and had no yardstick against which to measure TMC progress.

75.  No Milestone Requirements Proved Deadly

Not advising us to require milestones was one of the great disservices Stickney performed, all the greater since he and his staff had known for years that Bob Trustworthy had trouble keeping a schedule.  Recall the experience of Bellevue construction attorney Mr. J.:  After firing Trustworthy, Mrs. J. phoned Stickney's office and was told “that Mr. Worthy's not completing a job on schedule was a common problem they had experienced.”  (Exhibit phs 7.)

In the situation Stickney designed for us, we simply paid what TMC wanted, when they wanted.  The payments were tied to nothing at all except a request for money.

We crossed the Rubicon in late December by paying TMC all we had originally anticipated in October.  When January 2005 came, it was obvious there was no way Carol could return to work.  The deeper we got into the quagmire, the less we could see a way out.

76.  The Clean-Up Squad

How could Carol go back to work, given what was happening at The Cottage?  After Oakes was promoted to general supervisor of TMC and was no longer foreman, Carol's daily visits of necessity included clean-up.  The site was regularly left a shambles.  Rubbish was thrown on top of building supplies, and vice versa:  One day Carol found that a newly purchased toilet tank had not been taken out of the carton and rubbish had been thrown on top of it.  When she examined it and rescued the toilet tank, the carton was ready to be picked up by the hauling crew.

At one stage, all working toilets were removed from the site, but the sewer holes were left open to collect debris.  Carol protected the openings with pieces of plywood or tape.  And the tile man had tiled the Hall bathroom, but not grouted between the tiles.  For weeks, construction debris fell in the spaces between the tiles.  We had to dig and vacuum out the debris, and seal the spaces up with tape.

We also cleaned up the floors in the upstairs hallway, and kitchen, dining room, and living room.  Staples had to be pulled from the sub-floor and globs of drywall mud had to be scraped up to prepare the floors for the installers from First Washington Hardwood Floors. Similarly, many days of clean-up were required to prepare the floors for the carpet installer.  Both jobs were significant and took at least three days each to complete.

77.  New Furnace and Ductwork Endangered

When drywall work started, we constantly reminded the TMC workers to use and change the filters on the new furnace to avoid clotting the newly installed ductwork from drywall dust.  We bought an economy-sized package of filters and presented them to foreman Oakes for the purpose.  But no matter how much we tried, we could not get them to do it.  After we moved in, our furnace installers told us the furnace and ducts were filled with drywall dust, and a housing inspector we hired to look over the house agreed.  The furnace and duct system was filthy from drywall dust, and the system would be damaged unless it was thoroughly cleaned.  We called in the heating company, and they cleaned the system for us.  It cost us $502.42.

78.  Kitchen Cabinet Catch 22

The kitchen cabinets proved a bellwether for the renovation schedule:  The cabinets could not be installed until the hardwood floors were installed, the hardwood floors could not be installed until the uneven flooring in the kitchen/dining room extension was fixed and until the drywall was complete.  Another hitch:  the cabinet company delayed the delivery of the cabinets, saying TMC had “credit problems.”  But TMC told us they had ordered the cabinets on a cash basis.  The matter was cleared up and the cabinets arrived on March 23, the last day charges for drywall labor appeared on the April 22 TMC statement (Exhibit tmc 8, page 11).  So despite all, the March 23 delivery of the kitchen cabinets did not delay the installation of the cabinets.

79.  Bossa Nova with Rosanova

On or about February 10, at Paul Stickney's recommendation, we met with Vince Rosanova of Redmond Mortgage again.  We wanted the construction loan we had talked about earlier.  But now Vince told us there was no construction loan, only a new first mortgage and possibly a second based on the increased value of our house.  He said he could fill out the application for the first mortgage now.  He'd send the appraiser out right away.

Vince's appraiser made an appointment and walked through our very unfinished house on February 17 or 18.  Meanwhile, we began a run on our credit cards.

80.  The Quality of Paul Stickney's Help

Recall that Stickney, VP of Trust Me Construction; he must have seen our situation develop over the months. We were TMC's largest contract, and the contract of longest duration.  During that time, he did not say “Guys, you are getting up over your head.  What's going on with construction that costs are so high?  With what you owe, you may not be able to afford a conventional mortgage, and an ARM certainly does not meet your financial objectives . . .”

Instead, in February, Stickney prepared a report of sales of comparable houses in Redmond to help justify the highest possible appraisal for our house--and thus the highest possible mortgage amount. Stickney's comparable sales report was to be forwarded to Vince's appraiser.  No doubt about it:  The more mortgage money available to us, the more we could pay Trust Me Construction.

Stickney created a pdf (Acrobat Portable Document Format) file on February 22, 12:08 a.m., showing the results of his study (Exhibit phs 13).  Note the verbiage at the bottom of each page:  “Presented by:  Paul H Stickney / Windermere Real Estate S.C.A.”

Paul Stickney was using his real estate license, his Windermere resources, and MLS data when preparing his study of comparable sales.  He asked us for no additional money.  Apparently Stickney considered this service was covered by the consulting fee we paid him in June, 2004.  That would mean that Stickney was still our real estate agent and that all applicable codes and laws were applicable for the duration.

Stickney said he thought our house — finished, of course--would be worth $500,000.  We had only to wait for the appraiser's final walk-through to attest the renovations were complete for release of the funds.

Meanwhile, we tried to find other money.  The bank that held our current mortgage would not even send an appraiser out until renovations were complete and the approval process would start from that date.  We could not wait.  Our short-term loans were falling due.  We had to get the money through Redmond Mortgage.

(Note of March 4, 2007 — The more we review the documents surrounding Vince's ARM mortgage, the more questions we have.  Vince's appraiser finalized his Uniform Residential Appraisal Report on March 3, 2005, based on his February visit.  That report gave a substantially false picture of the state of the renovation work.  Yet on April 6, 2005, we went settlement, apparently on the basis of the March 3 appraisal.  At the settlement table, we were told we had three days to withdraw from the deal – that is, we had until close of business April 9.

On April 15, Vince's appraiser came to the house again ... even though substantial aspects of the renovations had still not been done or were incomplete, that visit apparently "released" the mortgage funds.  What was the nature of the April 15 visit?

What would have happened had Vince's appraiser given a truthful picture of the state of the house on April 15?  Would the April 6 settlement have been voided?  If so, why were we given three days to withdraw from the settlement, but the mortgage company given until April 15 to withdraw?  Why were they given nine (9) days to withdraw?)

81.  February 10 Is Proof Of The Pudding

On February 10, Bob Trustworthy and supervisor Peter Oakes met with us and delivered a generalized “cost breakdown” of expenses, assuring us that all renovations would be completed by the end of February.  See the February 10 projection at Exhibit tmc 7.

By that date, TMC could not possibly claim that our house offered them any new surprises, or that we had “changed our minds” about what we wanted, as some contractors are reputed to do.  How well TMC met its own February 10 projection provides the best possible independent evidence of TMC's performance.  Let's have a look.

Page 2 of the February 10 statement gives a list entitled “Left to Complete.”  The total bill for all improvements is given as $196,585.  The end of February was less than three weeks away.

The reality:  TMC worked in full force until April 11.  TMC did punch list items into May.  Yet many items promised on February 10 were left unfinished (e.g., the deck).  The bill?  It had ballooned to $211,165.53.

82.  The February 10 Kaleidoscope

While some of the line items on the February 10 statement are the same as in previous estimates, many are not.  Again, how does one compare the cost of two or three grocery carts when the items in each cart are different?

• For example, on February 10 there were no allowances for our direct payments to non-TMC contractors, and no line item for sales tax on labor.
• In previous estimates, “tilework” did not appear as a line item. Now “tilework” appeared, along with “stone” (even though TMC was not responsible for “stone.” We paid for “stone” by hiring a non-TMC mason to refurbish the fireplaces).  The estimate for tile work and stone was $15,000.
• Costs were not attributed to rooms and features, but to generalized activities:  Rough-in carpentry, walls and surfaces, etc.

TMC indicated we had already paid $128,768.  Recall that the October 12 estimate (corrected to reflect our direct payments to others) indicated the TMC work would be completed for $90,565.  Thus by February 10 we had already given TMC $38,203 more than the October estimate, and the house was nowhere near done.  No deck, no tile work, no functioning kitchen or bathrooms, no carpeting, drywall not finished, no doors or trim.

The February 10 statement showed we had $9,158 still owing for work done and $58,660 needed to finish the job.  If $58,660 was needed to finish, and we were already $9,158 behind, that meant we had to find another $67,818.  Let's see:  We had already given Trustworthy $38,203 more than we intended (see October 12 estimate). And now we had to give him another $67,818.  That meant we would have spend $106,021 more than we ever intended to pay to get our house back into livable shape.

83.  February Money Drain

In February 2005, we wrote four checks to Trust Me Construction.  The checks were written for the following amounts:

We felt shell-shocked, as if in a trance.  Sure, one of the checks — For $6,900-- covered the deposit for the kitchen cabinets, but what of the rest?  Carol called Bob Trustworthy and asked for receipts and logs.  Trustworthy promised to send printouts.  He said his records were 20 pages long, and even showed items that had been returned to suppliers.  The records never arrived.  To this day, we have not seen any original sales invoices or personnel timesheets for the work.  Nothing more arrived until the April 22 statement, when Trustworthy provided us with his own paper.

Thinking back over things, during the February money drain we acted like Patty Hearst, captured by the Symbionese Liberation Army, cooperating with her captors to commit a bank robbery.  But in practical terms, we had no choices.  What contractor will pick up a job with the house ripped apart and put it back together again over the half-done work of an another crew? If we had sacks of money and infinite time ... but we had neither.

While paying two rents and watching the mortgage interest rates rise, both money and time were soon coming to a sudden stop.

We were like people who, having agreed to an airplane ride, realize in the air that the pilot is stark raving mad and the gas tank is almost empty.  Of course, they should not have boarded an airplane with a mad pilot, but hindsight is meaningless.  The one remaining strategy is to placate the pilot however possible, promising anything, to convince him to land at the earliest opportunity.

84.  Mixing Funds

We wondered if Trustworthy was supporting other projects with our money and failing to keep good records.  At the end of February, when all monies we could lay our hands on were utterly exhausted, Trustworthy agreed continue to work to complete renovations so we could get a new first mortgage. At this point, we had charged up credit cards and cashed in our IRAs and borrowed against our life insurance policies in the hope of paying it off worth Vince's mortgage. 

It was during that time that TMC supervisor Peter Oakes told us words to the effect:  “You carried us when we were in need, now we are carrying you.”  Did Trustworthy really expect us to do anything but say “Yes” to his offer?  We had no choice, the house was still unlivable, and we had a gun to our heads.

85.  Why Didn't We “Do Something”?

Look for a new contractor?  We hardly dared to breathe.  Had we thought of something to do, we would have done it.  From hindsight, surely there must have been something?  But even now, we wonder how many contractors would jump into the middle of a job without understanding the quality of work that had already been done?  From our present vantage point, such a contractor would have been crazy.

The TMC crew was consistently complaining that our house was out of plumb and the work was very difficult.  We blamed the house.  But according to the National Association of Homebuilders, dealing with out-of-plumb older structures is a routine part of remodeling.  See discussion in The White Cane Approach To Quality Renovation.  We now suspect the complaints about our house was merely an excuse for Worthy's typical failure to meet schedule.  Remember the experience of Bellevue attorney Mr. J., as acknowledged by the “Stickney team”?  (Exhibit phs 7.)

Rightly or wrongly, we perceived ourselves to be total captives, totally dependent on Trust Me Construction.

86.  On The Brink of Ruin

Early that winter, interest rates started to climb.  In order to hold down the rate Vince had promised, the house had to be completed.  If we lost that rate, we might not be able to pay the mortgage, and we might lose the house.  We felt we were at the brink of ruin.  Vince offered to have Redmond Mortgage pay for a lock-down on the mortgage rates promised to us, and did so.

It was during February that Carol began to suffer from the physical side effects of hyper-anxiety.  She was constantly wired, could not sleep, and was exhausted.  Her condition worsened during the next weeks.  During the early days of April, she was so badly off that she could not sleep at all.  Her heart was pounding and her metabolic system on a constant “go.”  She had to lie in bed utterly still, without moving a muscle.  By mid-April, she had lost 20 pounds.

87.  Tile Work from HELL

April 2005.  From February to mid-April we were in an absolute frenzy to get TMC to finish the work.  The appraiser for Vince's new mortgage was scheduled to visit early in April.  Our credit card situation was explosive.  We had saved one IRA, but Carol's was lost to the ever-hungry TMC and the IRS.  To add insult to injury we will now have to pay taxes on the IRA money.

Tile work was now on a critical path, but the TMC tile man (who was also the TMC carpet installer) repeatedly failed so show, came late, or left early.  We got down on our knees and begged him to show up until the job was finished.  Still his schedule was erratic.  We got so desperate we even grouted the tiled floor of the master bathroom ourselves.

We need to say a word about the tiles we chose, and our tiling philosophy.  “Simple things, done well,” was the philosophy.  For the most part, we chose economical Daltiles.  Daltiles were to cover most of the surface areas of all the bathrooms and kitchen backsplashes.  We also ordered economical floor tiles from Daltile in Seattle and wanted them on floors, kitchen counters, hearths, and some other surfaces. 

To add some drama, we also chose limited numbers of more expensive accent tiles to be used with the plainer Daltiles.  We decided upon accent pieces from Statements, Art Tile, Oregon Tile & Marble, Lucia Fort's Studio, etc.  Our records show we spent $1,097.32 from our own pocket on tiles.

88.  Unrecognizable Tile Charges

The April 22, 2005 TMC statement shows four purchases of Statements tile, but only one is recognizable:  The purchase for $442, which we recall as the amount charged for the glass liners for the kitchen backsplashes.  The other purchases for $302, $822, and $287 never took place with our knowledge.

89.  Photos Of Tilework From Hell

Now let us return to the tiling job at The Cottage.  TMC framed the window in the downstairs bathroom, and the TMC tile man had helped design the glass blocks to be used in that window.  He helped to define the size and position of the window based on the size of the glass blocks that he was going to use. Since the window was in the bath/shower stall, the window sill had to be tiled.  Of necessity, of course, the sill was designed to be canted at a slight angle (and finished with bullnose) so that water from the shower, splashing on the sill, would drain into the tub/shower stall and not sit on the sill and seep down behind the wall.  We purchased decorative tiles to accent the window, and provided a template to show how we wanted the decorative tiles placed.  See photo in Construction Defects, Section 8.

But when the time came to do the job, the TMC tile man left the job site once again, leaving his son and another young man to do the work.  Forget the subtleties of the canting and the bullnose!  Even the fundamentals were ignored.  They used no tile to cover the surface of the sill.  The raw, unprotected surface was left the way they found it.

Tiles on the wall bordering the glass block window had been cut into irregular, unmatched sections.  The edges of these sections were raw and unfinished, and protruded above the level of the sill.  Effectively, the unprotected surface on the sill was now in a trough created by the raw edges of the tile.  Had we turned the shower on, the water would have splashed on the sill and, instead of draining off, would have seeped downward and made its way behind the wall of the bath/shower stall.  Photos can be seen in Construction Defects, Section 8.

And with only three days left before the appraiser arrived, the tile man had removed the electric tile saw from the job site, indicating the job was finished.  We finally rebelled.  Even though Trustworthy's tile man was also Trustworthy's carpet installer and was scheduled to install the carpets, we were afraid of what else might go wrong if he and his helpers came back.  We told Trustworthy not to bring him into the house again, and we hired an independent carpet installer.

90.  “He's Going To Grind Those Down”

Bob Trustworthy came to inspect the tile work, but he brought only excuses.  When we pointed out the lack of bullnose and the raw tile edges, he said of those surfaces:  “He's going to grind those down . . .”

The hall bathroom also suffered.  The hole on the vanity counter was cut too small to accommodate the sink, and that tile also had to be “ground down” to provide a larger hole.  Moreover, the V-cap tiles around the edge of the vanity were set too close together, so that there was insufficient room for grouting, which has now begun to fall out.  Apparently not knowing how to finish the ends of the backsplash, whoever did the tile work left the work unfinished.

Oakes then jumped in, claiming he knew how to set tile.  He said he'd easily be able to tile the kitchen pass-through counter.  However, we arrived one Friday afternoon to find Oakes with three other workers discussing and measuring out the tiles.  Each was offering his opinion of what was to be done, and offering encouragement.  One worker, Marcus, was being sent to the garage to use a rented electric saw, cutting one tile at a time and then walking it up to the kitchen.

Saturday, Oakes came in by himself to set the tiles on counter with adhesive.  When we discovered what he was doing, we stopped him because he had used no cement board on the surface.  He'd used a red paint-on vapor barrier instead.  See photos in Construction Defects, Section 8.6.  Cement board is used on such a counter because it is extremely rigid and the tiles resting on it will not flex and crack; nor will the grout flex and crack.  Having seen what Oakes was doing, we knew he should do no more tiling at The Cottage.

91.  Carpeting

Bob Trustworthy's estimate was that carpeting certain rooms in our home with medium grade carpeting would cost $2,245, installed.  Worthy's tile man/carpet installer estimated we'd need 154.67 square yards of material, and that is how much Trustworthy ordered from Pro Floors in Bellevue.  Trustworthy also ordered padding that his installer suggested. We chose a medium grade carpet that cost $22.05 per square yard.  The bill for the padding and the carpet was $3,888.17.

Given that we refused to allow Trustworthy's tile man/carpet installer back in the house after the debacle in the downstairs bathroom, we had to hire an independent carpet installer.  We chose CVC Quality Floorcovering Installations of Issaquah.  The carpets were installed on or about April 13.  The installation bill came to $1022.37.  Thus the entire carpeting/padding/installation bill came to $4,910.54.

We now see that Trustworthy underestimated the cost of the carpeting job by $2,665.54.  Trustworthy told us he had lost touch with the price of carpeting, but also said we selected a higher grade than “medium.” 

On December 23, 2005, we called the Carpet Exchange in Seattle (1251 First Avenue South) and asked salesman Gary for a price range for medium grade carpeting without padding or installation.  The range was $18-30 per square yard.  So our carpeting, at $22.05, was certainly within the “medium” grade range.

92.  Surreptitious Attempt To Fix Kitchen Hump

We had requested a Formica counter-top on the kitchen counter adjacent to the sink, and were present in the Spring when Peter Oakes and another TMC employee laid the Formica down on the counter.  Several days later, a hump appeared on that counter just over the dishwasher, located at about the spot where the old kitchen structure met the new cantilevered extension.  We pointed this out to Peter Oakes and called Bob Trustworthy on the phone, frightened that the cantilever was moving.  We requested that the dishwasher be de-installed, that the underlying counter structure be examined, and that we be present during the process.  We lived literally five minute walking distance from The Cottage, and we all had cell phones.  A rendezvous should have been no problem.

But early the next Saturday morning, Bob Trustworthy and his workers went to The Cottage without notifying us, removed the dishwasher, and used a saws-all to cut the frame supporting the counter.  Then they pushed down on the hump.  Then they used an angle bracket to stabilize it all.  They reduced the size of the hump, but it did not disappear.  We saw the change the very next day, Sunday, and pulled the dishwasher out to see what they had done.

The following Monday Bob Trustworthy still had not called to tell us about his visit.  When Mark called him, he admitted he had visited The Cottage that Saturday but he did not call us because his wife was not feeling well that day.

And what is the explanation of the hump?  Why did it appear at the same spot the unstable extension meets the older structure?  TMC has no explanation.

93.  April Tornado

Vince's appraiser was due to come on April 1, but clearly the house was not ready.  Vince offered to pay for an extension of the agreed upon interest rate (a lock-in).  We had until April 15 — the appraiser must come by that date or we'd lose the package.  But what about the missing deck, and the many other items that would never be finished by April 15?  As push came to shove, Vince told us his appraiser would “work” with us — that he'd ignore the missing deck, etc.  When Carol expressed surprise at this business practice, Vince said the practice was not unusual in Washington renovation refinancing.

Meanwhile, TMC workers crashed around trying to finish the house, putting in doors and trim, etc.  Some of the doors we needed had not been ordered, including a fire door between the garage and downstairs hallway, and the door on the water heater closet.  Much of the second-hand trim, the “Felker” trim that TMC recommended, was damaged with nail holes, nicks, dents, and splinters. You can see photos in Construction Defects, Section 12, and further discussion of the Felker trim in The White Cane Approach To Quality Renovation.

Indeed, much of the trim was not the vertical grain (“VG”) fir we had been promised, and the color of the stain used on much of that trim did not match the stain on the doors.  Still, we dared not object.  We knew we MUST get the house in some kind of shape for the appraiser.  Even an appraiser with whom one could  “work” surely had limits!

At one point Bob Trustworthy told Mark that he, Trustworthy, had been roundly criticized for agreeing to continue to work on our house after our money was exhausted.  We wonder who might have criticized Trustworthy and encouraged him to abandon the job?  One might expect officers of the company would be most concerned at financial risk to TMC.  According to records, officers of the company at that time were Wally Trustworthy and Paul Stickney.

94.  Cart Before The Horse

Strangely enough, we were scheduled to sign the mortgage papers days before the appraiser did his final walk-through.  That is, we were scheduled to go to closing on April 6, and the appraiser was scheduled to examine the house on April 15.  Why would a bank agree to close on a deal without knowing if the house was worth the agreed-upon price?  That was only one topsy-turvy detail in a tornado.

95.  A Mortgage from Hell

On April 6, when we got to the escrow company we found the mortgage we'd been set up for was a 10-year Adjustable Rate Mortgage (ARM).  We did not want an ARM.  Why?  An ARM is a device whereby the bank agrees to accept low interest-only payments for five or ten years--in return for the reasonable assurance that at the end of that period, the interest rates will be sky high, you won't be able to get refinance, and the bank will get the property.

Throughout the closing procedure, the closing officer repeated the warning term “foreclosure” again and again.  It was terrifying.  Did we dare object, there at the settlement table?  How could we?  We had nowhere else to go.

We signed the settlement papers.  By law, we had three days to withdraw from the deal.  Only two of those days were business days, but we did everything in our power to find alternative financing.  We could not.  For one thing, our debt ratio was too high.  We were locked into Vince's ARM.

Vince was in Hawaii at this time, and we recall panic-stricken calls to him.  We had never experienced mortgage loans made under these circumstances, but the upshot was that we had to let the ARM go through.  Even though it is a potential disaster for us, not taking it would have been even more of a disaster.

How many people will be losing their homes through the one-ARM(ed) bandit of a mortgage?

In ten years, we will be older and perhaps unemployable, a bad time to look for another mortgage at perhaps sky-high interest rates.  We saw ourselves in our dotage, being forced out of our home. We are now frightened of the future, frightened by the insecurity the ARM has introduced it to our lives.

During these weeks, it was obvious that Bob Trustworthy was expecting more money when we received the funds from the first mortgage.  But it was obvious to us we weren't going to be able to give him any.  We'd have to pay off our most pressing credit cards and other debts first.  He didn't specifically ask when we were going to pay him, and we didn't specifically tell him we weren't.

96.  Appraiser Makes His Final Visit

On April 15, at 2:50 p.m., Vince's appraiser walked through 8209 172nd Ave., NE.  In accordance with Vince's request, the appraiser ignored the missing deck and other problems.  He was of course oblivious to the fact the roof needed to be replaced, that it even violated Redmond code (see attached reports.) Based on the promised of completed renovations, including a deck, the appraiser determined the value was $475,000, $25,000 short of Stickney's prediction.  The appraisal triggered the release of funds

A few days after the money was released, Vince changed his mind about absorbing the extra payment to lock in the favorable interest rate.  On April 19, 2005, he asked for, and we wrote, a check to Redmond Mortgage for $445.

97.  Some April Chronology

April 10, 2005
The majority of the tools and apparatus of TMC was removed on April 10 in preparation for the carpet installation and the final finish on the hardwood floors.  On or about that time, TMC employees effectively disengaged from the job, with the exception of one or two persons who came to do some punch list items.

April 11-14, 2005
Non-TMC contractors came to finish the hardwood floors and install the carpets.

April 15, 2005
The appraiser came.  On the same day, Carol visited her doctor.  For weeks she'd been suffering from adrenal gland exhaustion. At this writing, she is still under medical care for that condition.

After the appraiser's visit, the money for the first mortgage came through, tens of thousands below what we had expected. Sadly, the money did not arrive before the 60 day grace period and Carol's IRA ran out.  Carol no longer has an IRA.  However, we did pay off some of those credit cards that were about to explode.  We also applied for a second mortgage.

98.  April's Bottom Line

Vince arranged a second mortgage for us, too.  The interest rate is 7.5%.  Later we learned that the holder of the first mortgage would have given us a second mortgage at 5.7%.

April 22, 2005 TMC Statement

On April 22, 2005, Trust Me Construction issued a statement of expenditures to date.  The total was $211,166.

Let's consider this: On October 12, 2004, TMC estimated their part in the renovation to cost $90,565.  On February 10, 2005, TMC estimated the bill for their work would be $196,585, including the deck and all the other promised features.  But by April 22, 2005 the bill stood at $211,166 with no deck, kitchen not tiled, no door on master bath or bedroom closets, no door between house and garage, and so on.  What would the charge have been had TMC completed the project?

We now know, of course, we were actually being left with a house full of defects so numerous and severe that a reputable remodeling company has requested a budget of approximately $200,000 for the repairs.  (See Construction Defects and Exhibit tmc 19 for the budget).

99.  Didn't We See The Problems?

In the Fall of 2004 we had few misgivings about TMC workmanship. Even back in April, when we saw the substandard tilework and finish work, we did not fully appreciate the problems we were to face.  But later, after we discovered the roof would have to be replaced, that the hall bathtub water was electrified, that the plumbing leaked, etc., the light began to dawn.  The full realization of the TMC quality of work came bit by bit, over the months since then.  The realization of other anomalies — such as no registration or bond — came even later.  See Construction Defects.

100.  Still Not Understanding, We Pay More

By April 22, 2005, we had already paid TMC $151,875.50.  Bob Trustworthy was complaining that he had not paid some of his suppliers, and we needed to pay him more money.  Still believing TMC could put a valid lien against our home (not true, as we later learned, because TMC had not given us a Notice to Customer) we paid TMC another $10,000.  Trustworthy complained that the carpet supplier had not been paid fully, so we gave Trustworthy a check for $1,943.17.

Then we picked up some doors that TMC had ordered from at Dunn Lumber, giving Dunn Lumber a check for $2,245.98.  We had to pay Lowe’s to install a fire door between the garage and the interior of the house.  Trust Me Construction should have paid for these materials and done the installation per the October 12, 2004 estimate. 

Then we've had to pay plumbers and electricians to come in and do emergency fixes . . . but that's another subject.

101.  Re-Enter Automated Home Solutions

See also Electrifying Charges

Recall that Paul Stickney recommended we use Automated Home Solutions to install structured wiring in our house.  Both Stickney and Trustworthy, on different occasions, told us that TMC had a special arrangement with AHS:  During renovations, they said, TMC hired AHS electricians, put them on the TMC payroll, and paid those electricians to install line voltage wiring in TMC jobs.  Bob Trustworthy confirmed that he was going to do that for the line voltage job in our house.

Stickney said that this arrangement meant lower costs for the homeowner.  We did not understand the intricacies of why this might be so, but took it on faith that the arrangement had worked well in the past.

But the reality was different.  After AHS had completed its work we discovered that, without our knowledge, TMC had hired AHS as a subcontractor.  We later discovered that TMC and AHS did not have a written contract, nor did AHS give TMC a written estimate for the work.  This was a verbal time and materials contract, with no cap on prices.  Consequently, prices for our line voltage wiring were free to go sky high — and they did.  On October 12, TMC estimated line voltage wiring in our house would cost $3,600, but the final tab for the work was a stunning

$18,087.53.

See Electrifying Charges for an analysis of AHS/TMC billing.

102.  AHS's Line Voltage Expertise?

It takes only a glance at the line voltage electrical defects (see Construction Defects, Section 4) to arrive at the conclusion that Automated Home Solutions (AHS) did not specialize in installing line voltage electrical wiring.

Had we known line voltage work was not their forte, we would have shopped for a line voltage specialty contractor ourselves. We might have found a contractor who would have charged us close to the October 12 estimate ($3,600) and who would have done work that met industry standards.

On the other hand, we asked a private investigator in February, 2006, to make inquiries with AHS General Manager Ellis on AHS's line voltage custom and estimation practices.  Ellis said, "We're licensed electricians, and do anything that has to do with electrical work. We upgrade service panels all the time."  He then went on to describe how he gave estimates for residential line voltage work.  (See Exhibit ahs 14.)

But if AHS does residential line voltage work regularly, what could be the excuse for what they did in our house?

103.  Unlicensed Electrical Work at The Cottage

As you read this, be aware that TMC had written into its proposals a fee for supervision and coordination. (See estimates at Exhibit tmc 3.)  The TMC on-site supervisor during much of our job (before being promoted to general supervisor of all TMC projects) was Peter Oakes.  As we have seen, Oakes had been cited in 2002 by the Department of Labor and Industries for working as an electrician without a license (Exhibit pfo 5).  Oakes's fines are still unpaid and have been sent to a collections agency.  (Exhibit pfo 5).  It is indeed ironic that Oakes was overseeing AHS's work, and that AHS (licensed electricians) allowed TMC to do any electrical work.

None of the TMC personnel who did electrical work on our house was a licensed electrician, nor was any a licensed apprentice.  Pages 13 and 14 of the April 22 TMC statement (Exhibit tmc 9) shows eight separate charges for TMC electrical labor, totaling $3,430.  Trustworthy stated the hourly wage for a skilled worker was $40 per hour, and for the laborer, $25 per hour.  (July 2 estimate, Exhibit tmc 3).  Thus TMC's own paperwork shows TMC performed at least 85.75 hours of unlicensed electrical work in our house.  We say unlicensed electrical work because we do not believe TMC workers spent 85.75 hours on manual labor, drilling through studs and helping to pull wires, etc. on a wide open house.

Remember Bob Trustworthy's $3,600 estimate for line voltage electrical work in the October 12, 2004 estimate?  (Exhibit tmc 3.)  How does that comport with the $5,559 he now claims for TMC electrical labor and materials (Exhibit tmc 9, pages 13 and 14), in addition to the $12,528.53 billed by AHS?  But let's leave cost questions aside for the moment and return to the prevailing issue.  AHS was the electrical contractor of record during our renovations.  Here are some indications that AHS was out of its depth in the line voltage field.

104.  AHS: Electrified Bathtub

After we moved in our house (May, 2005), two members of our household (Mark and our daughter) received electric shocks from the bathtub in the upstairs hall bath. We called in two licensed electricians who measured the voltage:  up to 110 volts.  (Exhibit ahs 10.)  The electricians told us:  “This is a life-threatening situation.”  Inside the electrical panel, they found a dedicated circuit that supplies power to the bathtub drain.  When the circuit is shut off, the water is no longer electrified.  See further discussion in Electrifying Charges.

105.  Live Wires Left Dangling

When AHS left the job, hot switches were hanging out of the wall without trim plates, a foot of power cable hung out the back of the house where a lantern was supposed to have been installed, and bare wires stuck out of the downstairs shower stall where a lighting fixture was supposed to have been installed.  Photos are available at Construction Defects, Section 4.

106.  AHS: Trim & Supplies

TMC's Peter Oakes and AHS electricians asked us to purchase the electrical trim, without specifying exactly what was needed.  We went through the house ourselves, estimating how many switches, sockets, and cover plates etc., to buy, and then went to Lowe’s to make the purchase.

On the first day, the AHS electricians surveyed the work and glanced at the boxes of trim.  To our knowledge, they did mot even count how many sockets, etc., had been purchased, but walked off the job shortly after arriving, saying insufficient trim had been purchased.  Carol expressed amazement to foreman Peter Oakes who was at the site, and Oakes explained we had been asked to buy the trim ourselves because we were getting such good prices from AHS.

Over the next few days, Carol was sent to buy more and more trim.  When AHS left the job site, we brought back used trim we'd purchased for hundreds of dollars of refunds.  (Exhibit ahs 6 for receipts.)

AHS brought some trim to The Cottage, but also charged us for trim and supplies purchased after all AHS work The Cottage house stopped.  That is, they charged us for materials destined for another job.  See Electrifying Charges.

In addition, TMC personnel charged us for 23 (twenty three) separate shopping trips to Home Depot, etc., to buy electrical supplies for the subcontractor during the course of the renovation, spending $2,240.  (Exhibit tmc 8.)

Compare $2,240 for supplies alone with the $3,600 for the entire electrical job in TMC's October 12, 2004 estimate.  (Exhibit tmc 3.) 

Given that information, it is natural to question whether all TMC electrical purchases were made for our job.  And it is also natural to wonder why professionals with “long experience” in “projects of this nature” would need 23 trips to do their shopping.

We suspect that practicing line voltage professionals don't manage their projects like AHS did. 

107.  AHS:  Attic Wires Not Bundled

Another signpost pointing to AHS's lack of line voltage experience is the state in which they left the wires in the attic.  A housing inspector we hired found the line voltage wires in the attic were spread loosely all over the joists of the attic instead of being bundled and fastened down according to industry standards. (See Construction Defects, Section 4)

108.  AHS: Gang Switch Arrangements

Another indicator that AHS was a novice at the line voltage game was the manner in which gang switches for lights were installed at the entrances to rooms throughout the house.  Professionals wiring a house arrange to have the switch that controls the overhead lighting closest to the entry point of the room, so that when a person enters the room he or she can have immediate light.

But in our house, AHS has arranged gang switches so that one has to grope around using the trial and error method to find the switch that controls the overheads.  This is true in the Hall bathroom, the rec. room, the downstairs bathroom, and the downstairs bedroom.  We also have some switches that don't seem to have any function, some lights not controlled by switches, and other anomalies.  See Construction Defects, Section 4

Honest to Pete, we felt like we were asked to micromanage the job.  Why should we be expected to tell electricians to place their right foot after their left while walking?

There were other problems with AHS line voltage performance.  We have compiled a list of defects in AHS's work product.  Construction Defects, Section 4.)

109.  TMC-AHS Business Arrangement Puzzles Experts

Since we discovered the line voltage problems, we have spoken to a number of experts who are frankly puzzled by the past working arrangement between TMC and AHS (as alleged by Paul Stickney and Bob Trustworthy).  They cannot understand why AHS would agree to putting their electricians on another company's payroll.  Nor can they see why high-voltage wiring in a house with open walls and an accessible attic and floors, would cost $18,488.  For overview of billing, see Electrifying Charges.

110.  Who's Got The $11,075?

Strangely, even though the electrical work started at the end of November 2004, AHS apparently did not crank out its first invoice to TMC until February 2005.  Why would an electrical contractor wait three months to send a first invoice?

Even stranger, by their own records, despite not being paid for work dating back to November 2004, the electricians from Automated Home Solutions continued to work on our house until April 11, 2005.  Is this credible?

Since moving in, we re-connected to a relative who is an electrician on the East Coast.  He assures us the industry standard is that electrical contractors bill promptly and regularly, and get paid promptly and regularly.  The rule is simple:  “No money, no work.”

While AHS states TMC paid them no money for their work, TMC claims it has paid AHS over $11,000.  And just when you think you've heard it all, we have more news:  The result of TMC's non-payment for the electrical work?  Automated Home Solutions has filed a lien on our property.  Read about it at Electrifying Charges.

111.  AHS Speaker Wires Buried By Drywall

You will recall we signed a separate contract with AHS to install low voltage wiring in our home:  telephone, video distribution (cable or satellite), CAT5 (Internet and custom control systems), home theater and surround sound system, and a distributed music system (consumer electronics to be selected and purchased separately).  During renovations, when the walls and ceilings were open, AHS installed the low voltage wiring system under TMC supervision.  The results?

AHS failed to install telephone wires in the spaced designated for the office and put the telephone wires in the home theatre wall.  Neither AHS nor TMC left us with a map showing where the distributed music speaker wires are located.  Moreover, the TMC dry wall team then drywalled over the speaker wires in the ceilings of the living room, kitchen, and the Master bedroom — rooms that were supposed to be on the distributed music system.  The downstairs bedroom was supposed to be on the system, too, but apparently no wiring at all was placed there.

When we asked Bob Trustworthy about the speaker wires being sealed behind the drywall, he assured us “We do it all the time.  That's how it's done.  It's easy to find those wires and cut holes in the drywall.”  But so far, the experts we have consulted have assured us that drywalling over speaker wires is not industry standard, it's a boo-boo.  Mud rings should have been used to protect the wires and mark their location.  Given that AHS has ignored our request for a diagram showing where the wires are located, we'll have to hire experts and equipment to locate them.  And given that AHS has apparently left the lower bedroom out of the distributed music system altogether, the system they sold us — possible and inexpensive when walls and ceilings were open — is now no longer cost effective.  “The moment has passed.  You'll have to design another system,” we've been told.

112.  May and June Chronology

May 10, 2005 Move-in Date
We moved out of our rental house and into 8209 on May 10, 2005.  Shortly thereafter, without announcement, the last of the TMC employees just stopped coming.

May 18, 2005.  Still erroneously believing TMC could file a valid lien against our house, Carol e-mailed Bob Trustworthy suggesting TMC sign a quitclaim deed with the DeCourseys in exchange for partial payment of what TMC says the DeCourseys still owe.  On May 19, Bob Trustworthy responded.  He suggested that we pay him $20,000 now and write him a one-year note for $20,000 with our house as collateral.  That was Beyond the Pale; even so, on May 24, Mark responded courteously to Trustworthy, reminding him of the initial estimate for the work.  Trustworthy discontinued the email exchange. (Exhibit tmc 9.)

June 30, 2005.  The man who installed the gutters sent a fax, threatening to come to our house and rip the gutters from the roof because TMC had not paid him.  D-day is July 6, he stated in his fax, but we talked him out of his ill-considered threat.

July 5, 2005.  We received a letter purportedly claiming a lien on our house.  The lien letter was originated by Construction Credit Corporation (CCC) on behalf of Automated Home Solutions.  It's a funny lien in a number of ways:  For starters, Automated Home Solutions has not even finished the work on the low voltage contract.  We discuss AHS's billing and the lien they filed on our property more fully in Electrifying Charges.

After we received the lien notice, Trustworthy called Mark and told him Lester has just fired Trustworthy's son, Wally.  Wally was fired because he was “too close to the TMC scene,” Trustworthy said.

At first we were perplexed.  Wally was fired because his Dad is Trustworthy? It didn't make sense.  But Trustworthy was not telling all.  It wasn't until August, 2005 we discovered that Wally was Secretary of TMC.  That was, perhaps, why Lester thought Wally was “too close” to TMC.

Later in July:  We visited a competent construction attorney and asked him to write the quitclaim deed Carol proposed in her e-mail to Trustworthy on May 18 (Exhibit tmc 9.)  After hearing some of the facts, the attorney jumped up and down and shouted:  “You don't owe them any more money!”  He then told us that professional drywall companies have teams of skilled tradesmen they send out — they can smooth drywall an entire house in just a mater of days.  He was outraged that our drywall bill was over $33,000.

Then we learned about the Notice To Customer and much, much more. We now understand TMC cannot file a lien on our house.

113.  Gas Leak, Anyone?

From time to time since we moved in (May, 2005) we thought we smelled gas when near our dual fuel range.  We had the windows open for much of the spring and summer, of course, and the smell was intermittent.  I attributed the gas smell to the occasional malfunction of the automatic lighters on the stovetop.  But by the end of August it was obvious there was a problem.  We called in a service company, and they told us the stove had not been installed properly.  We then called in our appliance dealer, who kindly offered to come and fix the problem.  They discovered the original installers (TMC) had not used any sealant (“pipe dope”) on the threads of the gas pipes, and that the installer (TMC) had caused a crimp in the flexible pipe at the back of the stove  Possibly the crimp was caused by shoving the range hard against the wall.  The service company assured us the gas leak was serious — we might have had an accumulation and an explosion in the house.  There were a few other problems with the installation, too.  For the full story, see Construction Defects, Section 10.

114.  Illegal Bedroom And Bathroom

In November, we discovered that the downstairs bedroom and bathroom are “illegal” because Trustworthy had advised us that those rooms did not need a permit because the space existed already.

We hope we don't find any more flaws.

115.  What Is The Value of the Stickney Team Work?

We have been told that the principle of quantum meruit is sometimes applied to disputes over value of construction work.  Quantum merit (“as much as he deserves”) is based on the concept that no one who benefits from the labor and materials of others should be unjustly enriched.  How does quantum meruit apply to this matter?

If Windermere, Stickney, Trustworthy, and TMC now hold that the price for labor and materials was justified and TMC was qualified for the work, they must now admit they severely underbid the job, even knowing full well the limitations of our finances.  Quantum meruit cannot be applied to a case where the homeowners were clearly and deliberately entrapped.

On the other hand, let's look at quantum meruit from another viewpoint.  What is the fair market value of having a contractor wreck your house for more than ten months, incur extra rent and finance charges, force you to go into debt you would not have dreamed of taking on voluntarily, force you to cash an IRA, wreck your health, cause intense personal and familial suffering, and do so much damage that it may cost in the neighborhood of $200,000 to put the house right again?

116.  One Year Later, Stickney Is Still Doing It

On February 8, 2006, after not communicating with us for almost a year, Paul H. Stickney called Mark at work.  After an exchange of pleasantries, Stickney asked Mark to buy him some software at a discounted price.

After he made this request, Stickney began to chat.  He said he and Stickney Team associate Patty [Ennis] were "no longer on the TMC bandwagon," and that TMC needed a system for managing "changes from the base job" (i.e., change orders).

Stickney suggested he'd like to come over and see our house and said he'd bring a bottle of rare bourbon.  He said he wanted Mark to tell him about our "deal with Trustworthy," but that he did "not want to take sides."  As he has always done, Stickney gave the impression he was not part of TMC (i.e., "your deal with Trustworthy" and Stickney's reluctance to "take sides") and did not mention he is an officer in the TMC corporation (vice president).  He continued to conceal his vested interest in the company.

We noticed that after a year's silence, Stickney's call came only five days after we told Lester Ellis of Automated Home Solutions that AHS's lien claim was without foundation, and that Lester did not have a case. (Exhibit ahs 13.)

In a follow-up email exchange, Mark continued the dialogue about the software, but probed Stickney for details concerning Stickney's decision to get off "the TMC bandwagon."  Mark asked Stickney whether he had been told that change orders were the source of cost overruns on our job.

In a February 21 response, Stickney replied to Mark's question about the software, but ignored the question about TMC and their performance at The Cottage.

Mark wrote again, continuing the dialogue about the software but again probing Stickney on TMC.

Then, on February 22, 2006, Stickney wrote again.  He reversed his February 8 statement about not being on the TMC bandwagon.  In that email, Stickney stated:

• He is on "the TMC bandwagon and never did get off"
• The Stickney Team is still "using" Trust Me Construction.
• TMC (Trust Me Construction) is now doing business under the name "Trust Us Construction" (TUC)
• TMC "offer[s] the most value for the money"
• TMC "range estimates" produce accurate pricing projections

Stickney also stated that three kinds of changes happen during the larger jobs:

• Changes suggested by customers
• Changes suggested by TMC
• Changes "that became self evident that no one could have anticipated during the job process"

As we read Stickney's February 22 email, we notice the words, "We are using TMC," — and we wonder: how could a real estate agent "use" a contractor? Does the contractor help to sell properties by making renovation bids?  Certainly, that happened in our case, and in the case of the Bellevue attorney.

As of February 22, 2006, Trust Me Construction was not a registered contractor in the State of Washington, its registration having been suspended by Labor and Industries on October 1, 2005 (See Exhibit tmc 2.)

We also note that as of February 22, 2006, the Labor & Industries website contains no mention of Trust Us Construction as a registered contractor.

So, then, we conclude that as of February 22, 2006, on his own testimony, Windermere agent Paul H. Stickney was still promoting ("using") the services of an unregistered, unbonded contractor to his unsuspecting Windermere clients.  Here is the relevant text from Stickney's email:

Regarding Trustworthy, we actually are on the TMC bandwagon and never did get off. What I said was there were some larger jobs over the last couple years "evolved" after the initial job plan.

Specifically, TMC has done very well at outlining range estimates up front. As larger jobs progressed, three often occurred things:
-Changes suggested by customers as the job went along.
-Changes suggested by TMC as the job went along.
-Changes that became self evident that no one could have anticipated during the job process.

In and of themselves these things are fine. But what I felt happened was these changes were discussed, but not consistently put into writing as each one happened so the jobs "evolved" into larger scope without being clear on how much the evolution would cost.

In my experience, I never felt how much was charged for work was the issue. Rather, it was as the scope of work increased (with the best intentions of both parties) the costs were not clear till the end of the jobs.

Again, these are my thoughts. We are using TMC, now TUC - Trust Us Construction. In my opinion they offer the most value for the money. Recently I had the opportunity to shop a job with two other companies (who claimed to be competitive) and found they were 50% to 80% more expensive than HIS for the same work - interesting.

Would be happy to talk with you and Carol let's just set a time

(Exhibit phs 16)

117.  It's Not All Black

There is nothing wrong with our house that money can't fix.  In many respects, our remodeled house is a dazzling success.  Our design worked out beautifully.  Visitors walk in, look around, and say:  “This is beautiful!”

While the house was formerly dark and cramped, it is now airy, full of light and sky and sun and trees.  The windows we installed showcase wonderful slices of Washington's natural panorama.   Already our back yard is a sanctuary for birds and we delight in sitting down at our breakfast nook and watching our feathered friends eat and drink what we have left for them.

The other contractors we hired — the hardwood floor man, the carpet installer, the mason, the furnace and ducting company — worked out well.  Any problems on the job were addressed and handled.  They did the work we wanted.  The end products were great and no one went over budget.  We'd recommend those folks to anyone.

118.  Summing Up

Please read through the other articles on this web page, including Construction Defects, Electrifying Charges, The White Cane Approach To Quality Renovation, and the Table of Exhibits.  We have wasted as few words as possible.  If reading the evidence against them is onerous, it is only because the evidence is onerous.