|
This is the story of what happened to us when we put our trust in a Windermere real estate agent. Paul H. Stickney has worked for Windermere for years. For years, Windermere has benefited from the commissions he has earned. But in this present matter, Windermere is silent. They don't want to talk to us about whether they approve of the way he did business with us. Windermere seems content to let him continue. Apparently, his activites and methods are sufficiently in accord with corporate policy and they have no problems. We don't think that's nice. We recommend our readers call Windermere and ask if they approve of the way Stickney did business with us. Our guess is that Windermere won't comment, saying the matter is "in litigation" and their lawyers have forbidden them to speak about it. Lawyers are handy that way. RCW 18.85.155 Our Story
| |||||||||||||||||
|
Trap: 1. A device for catching or holding animals, such as a net, pitfall, or a clamp like apparatus that springs shut suddenly. 2. Any stratagem or device for betraying, tricking, or exposing an unsuspecting person. — American Heritage Dictionary Entrapment: 1. To catch in or as if in a trap. 2. To lure into danger, difficulty, or self-incrimination. — American Heritage Dictionary Hostage: A person held for as a security for the fulfillment of certain terms. — American Heritage Dictionary Renovation trap: To give an affordable estimate on a renovation, get approval
from the customer, demolish much of the house and make it unlivable, bill for more than twice the estimate, and then
demand the house as collateral against the “outstanding” amount. Setting A Renovation Trap: Setting a renovation trap: A real estate agent uses a "friendly" construction company to convince customers they could afford to buy a house and remodel it to their liking. Relying on the contractor's estimate, they buy the house and fall into the trap. The construction company quickly makes the house unlivable, and then the cost of the work goes up, up, up. The customers later discovered that the real estate agent was Vice President of the construction company, and that the agent's brokers were actually referring the public to the company without disclosing the role of their agent. We are a one-income, middle-class couple with small savings and less retirement than most people our age. This story began early in 2004. We had recently moved into the State of Washington from Virginia. We rented a house, settled in, and hoped to buy an affordable home in the Seattle/Redmond area. But we found that prices were out of sight, forced higher by bidding wars among competing buyers. We saw ourselves on the verge of being squeezed out of home ownership. Hearing horror stories of shoddy workmanship in newly built “affordable” housing, we realized we might have to buy an older home and fix it up. Being newcomers, we didn’t know the Seattle area real estate, renovation, or construction scene. So we asked a well-known Windermere realtor, Paul Stickney, to guide us through the process.
If we bought a house that needed upgrades, we wanted to upgrade sensibly and not over-invest. Given the price of the house, how much would it cost to renovate to suit our needs? Was the package within our budget? Stickney described himself as a buyer’s agent, one who knew which upgrades were practical from the resale viewpoint. Stickney claimed he could provide the answers and had the real estate investment expertise we needed. Fiduciary: A person who stands in a special relation of trust, confidence, or responsibility in his obligations to others, as a company director or an agent of a principal. — American Heritage Dictionary Stickney became our real estate agent and our real estate investment counselor. He became our fiduciary. We put our trust in him. We paid him $6,300 for his services. Stickney lauded the work of a Sammamish contractor, Trust Me Construction (footnote). He told us he had seen TMC’s work over the years, and it was far superior and more reasonably priced than others, due to TMC’s uniquely skilled tradesmen and system of pricing. We asked TMC for, and received, initial bids. It all looked workable. So upon the advice of Paul Stickney, we hired TMC to work on our newly purchased house. By early October, the plans for the renovation were finalized. On October 12, the contractor developed an estimate on the final plans, which included these major features:
According to the estimate, when renovations were complete (and subtracting the expenses we picked up ourselves through direct payment to other contractors and suppliers), the contractor’s actual price would be: $90,565.27 (sales tax not included) We’d have to stretch to finance the work. That was possible: our daughter was now a young adult and no longer needed home schooling. And what better place to put your retirement money than real estate? So we decided to go ahead with that plan. Nine months later, we found ourselves on the brink of ruin. Various aspects of the renovations had either not been done, or done with such faulty workmanship they will have to be repaired or demolished and rebuilt. Major defects include:
Contractor’s bill for this work? $211,166 (sales tax not included) Add an estimated $8,000 unpaid sales tax on TMC labor to that $211,166 figure. And still we are not finished: The gutter subcontractor threatened to rip our gutters off because TMC had not paid him, and has since sent a collection agency after us. So add to the bottom line $1,116.95 to pay the gutter man, totalling $220,282.95, 243% of the original $90,565.27 bid. How did the price climb from $90,565 to $216,282.95 — and still no deck, oodles of repairs, an electric bathtub, etc? In part, due to cost overruns. Let’s look at some of the estimates and the final billing figures.
And here’s more trouble: The electrical subcontractor has filed a lien on our property, alleging that TMC has not paid them. And ultimately, they filed a lawsuit, naming both TMC and us. Are you getting the picture? When we could not pay all that TMC demanded and feared a lien would be filed on our property, we tried to negotiate a settlement. But TMC’s president, Bob Trustworthy, wrote he “must insist” on having our house as collateral on the remaining amount owed. We wrote back saying we would not feel comfortable with that arrangement. We compared the October 12 estimates with the final bill, and Trustworthy discontinued the email exchange. Then we discovered that — at the time Paul Stickney recommended TMC to us, and at the time they started our job — they were not registered, insured, or bonded in the State of Washington. Months later, Trust Me Construction did register with the State. And guess who was listed as Trust Me Construction’s Vice President? But we’ve already told you the answer: The Vice President was none other than the man we hired to protect our interest: our fiduciary, Windermere agent Paul Stickney. Now we introduce another definition:
And recall that we also discovered the main Windermere brokers’ office in Redmond was also recommending Trust Me Construction — without mentioning one of their agents was an officer of the company. As you read, you will perhaps ask, “Why did you continue to pay the contractor after you realized he had overrun his estimate?” By the time we realized we were in trouble — to paraphrase the words of Shakespeare’s tragic figure Macbeth — We wade so deep in blood that going back (Act 3, Scene 4) By the time we realized we were in a trap, the trap had sprung. We were caught, we were hostages, and could see no way out. And as a result, we are on the brink of financial ruin. 3. Cost of Renovating the Renovations In October 2005, we asked a reputable renovation firm for a budget to get our house in the condition described in the October 12, 2004 estimate. The firm has asked for a budget in the neighborhood of $209,000 (plus sales tax. See Exhibit tmc 19) Upon information and belief, there have been other victims of the Stickney Team . . . 5. Locale and Cast of Characters
Now, please read the expanded version. Even in that, we have been forced to omit many details, with the realization that even the most patient readers have limits. Realize, too, that as the months passed, new facts emerge regarding condition of our house and the manner in which the Renovation Trap was set. If you don’t have time to read it all, DO read this one section: “February 10 Is Proof Of The Pudding.” Let us start our story from the beginning, but now with more detail. If you were not shopping for housing in early spring, 2004 in the Seattle area, you might not understand how the market was then. It was a seller’s market. Houses were selling at fantastic prices. Buyers competed for houses, outbidding each other. Some houses sold for tens of thousands of dollars above the listing price. Buyers were so competitive that many were waiving structural inspection and other contingencies to beat competitors. We heard horror stories of shoddy new construction, and didn’t want to live in a glorified shoebox on a postage-stamp parcel of land. We eventually realized we might have to consider buying an older home and updating it. In March 2004, we found one, a for-sale-by-owner (“FSBO”) at 8209 172nd Ave., NE, Redmond. Here is how it looked before our renovation. We had never bought a FSBO, nor had we any experience with renovation. While we intended to keep the house for years, we had to be practical. Mark is in software development and this was, and still is, a one-income family. Software is an unstable industry, subject to unexpected lay-offs. We wanted to make sure the cost of our upgrades would not outstrip the equity of the house, so if we needed to sell it unexpectedly, we would not lose our shirts. And we did not know the state and local building codes and regulations that would protect us throughout the construction process. 7. Windermere’s Paul H. Stickney: Outstanding Redmond Citizen We wanted someone who knew the ropes to keep us safe and holy. An acquaintance on the Board of Directors of the United Methodist Church in Redmond recommended Paul H. Stickney, a fellow member of the Board. Mr. Stickney, a Windermere real estate agent, advertises his CRS and GRI credentials on his business card. (Exhibit phs 1.) Both credentials, the Certified Residential Specialist (“CRS”) and the Graduate Realtor Institute (“GRI”) are awarded by the National Association of Realtors to proven real estate professionals. Stickney is an agent of Windermere Redmond, a branch office of Windermere Real Estate/ S.C.A., Inc. (Exhibits windermere 6.) That corporation is owned by Craig and Rosalie Shriner. (Exhibit windermere 1 and windermere 6.) Windermere Redmond’s offices are located at 16261 Redmond Way, Redmond WA, 98052. From all outward appearances, Paul Stickney is an upstanding and prominent Redmond citizen. 8. Windermere Owners Are Also Outstanding Citizens The Shriners' Windermere Real Estate/S.C.A. corporation not only owns Windermere Redmond, but also two other Windermere offices, both in Kirkland. One of those Kirkland offices serves as an art gallery for the community. A Windermere press release describes Craig and Rosalie as “long time art lovers and experienced real estate professionals,” and “Puget Sound real estate veterans,” and also describes the art gallery: With its lofty ceilings, well-appointed meeting rooms, ample gallery spaces, and a number of inviting seating arrangements, The Gallery at Windermere is a striking addition to Kirkland’s lively gallery district. Located at 16 Central Way, this new office is set among more than a dozen art galleries, outdoor sculptures, a premier performing arts center, a number of organizations devoted to the arts and culture. (Exhibit windermere 8) Certainly Windermere is a reputable firm, one in which the public can put confidence. Brokers in companies like Windermere know their reputations are at stake and are likely to insist their agents deal openly and honestly with the public. Certainly we felt we were in good hands 9. Stickney Fills Out MLS Form For “The Cottage” Stickney does not operate from the Windermere Redmond office, but out of his satellite “Stickney Team” office at 8105 166 Ave., NE in Redmond which is the official address of Paul H. Stickney Real Estate Services, Inc. We first met Stickney at this office early in April, 2004, where he counseled us and helped us write an offer on 8209 172nd Ave. NE, (hereinafter affectionately known as “The Cottage.”) Stickney used and MLS “Residential Real Estate Purchase and Sale Agreement” form and filled it out in his own hand. (See Exhibit phs 6). The house had never been renovated since it was built in 1969, and needed it. Again, please be reminded that Stickney told us he was experienced and qualified to advise us on home renovation and resale value. That was his specialty. Paul Stickney is a charming man. We soon would regard him as a family friend, and he would become a dinner guest in our home. We relied on him. That Mr. Stickney impressed other people, too, is evident from the five-star rating he received from a former customer. Very Impressive. I met Paul Stickney at an open house in 1995. When we could not reach agreement on a price with the sellers, we withdrew from negotiations, Stickney offered to help us find another house. He identified other possibilities through the Multiple Listing Service. Over the following weeks, we looked at many listings on the Web and drove around to dozens of them, eliminating many from the curb. We considered that Paul Stickney went about his business very efficiently. 10. Stickney Promotes Bob Trustworthy & Trust Me Construction (TMC) In April 2004, Stickney showed us a house in the Lake Hills district in Bellevue that was listed on the Multiple Listing Service. We liked the house and the lot but the house needed renovation. Would we be able to renovate within our budget, and would we get the money back when we sold? The cost of renovation was an integral part of our decision to make an offer to purchase. Stickney recommended we use Bob Trustworthy’s Trust Me Construction (“TMC”) to do the renovations. Stickney told us he had seen TMC products over the years; TMC was most cost-effective and they had a most outstanding group of specialists in the trades. “You’ll just LOVE Bob,” said Stickney of Mr. Trustworthy. In particular, he praised the TMC finish man. 11. Stickney’s TMC Was an Unregistered, Uninsured, Unbonded Contractor But Stickney neglected to tell us a few details: The outstanding TMC finish man was Stickney’s brother-in-law. He didn’t tell us that the TMC corporation, founded in 2001, had been dissolved. (Exhibit tmc 1.) But more importantly, Stickney neglected to tell us TMC was not registered, insured, and bonded as required by Washington state law. Trust Me Construction did not get registered and bonded until October 2004, six months after Stickney introduced us to the company. We now suspect Stickney knew about TMC’s lack of registration when he introduced us in April. Why? Because when Trust Me Construction did get its contractor’s registration, Paul Stickney was listed under the “Business Owner Information” and as TMC Vice President (Exhibit tmc 2). The Revised Code of Washington, RCW 18.235.130 (quoted below, in “36. What RCW Says About “Unprofessional Conduct”) prohibits a licensed professional such as Stickney from aiding or abetting an unlicensed person to practice when a license is required. But does RCW 18.235.130 also prohibit a licensed professional from aiding and abetting an unregistered business? We think it might — certainly we think it should. | |||||||||||||||||
|
12. A Bellevue Family’s Experience With Stickney Stickney also failed to mention one client’s experience with Bob Trustworthy’s work. In 2001, Stickney helped Bellevue attorney J. and his wife sell their house and buy another. The house Mr. & Mrs. J. wanted to buy needed renovation and had a hump in the kitchen floor. Mr. J. told Stickney if the hump could not be removed, they did not want to buy the house. Mr. & Mrs. J. were under a time constraint — they had to move out of their old house because the new owner was moving in. Thus the renovation of their new house had to be completed on schedule. Stickney recommended Bob Trustworthy, telling Mr. J. that Trustworthy did good work and could get the job done on time. Stickney promised Trustworthy would look at the hump. Stickney then reported back: Trustworthy said the hump could be removed. Mr. & Mrs. J. finalized the purchase of the house and hired Trustworthy. But after Trustworthy started work, Trustworthy told Mr. J. that the hump could not be removed: it was caused by a concrete stem wall. Soon after, Mr. J. fired Trustworthy because Trustworthy was not meeting the schedule to which he had agreed. Part of the problem, apparently, was that Trustworthy’s workers were coming late and leaving early (and billing for eight-hour days.) Mr. J. went on to discover many problems with the work Trustworthy had done, necessitating expensive repairs. (See attorney’s affidavit, Exhibit phs 7.) 13. Stickney Knows Trustworthy’s Record After Trustworthy was fired, Mrs. J. spoke to Stickney’s assistant, who told her Trustworthy commonly had problems keeping his schedule. The assistant’s remarks indicate that in the year 2001, Stickney already had sufficient experience with Trustworthy’s work to see a problem. How much more experience would Stickney have had in 2004? We also believe Stickney knew TMC was unregistered and unbonded when he introduced TMC to us. This is suggested by, for example, Stickney's suggestion that we pick up the Buiding Permit ourselves, as explained below. The Stickney/Trustworthy team engaged in certain behaviors in that transaction (circa 2001) that we would later see in our own transaction (circa 2004). Let’s look at one possibly relevant statute: The Revised Code of Washington states that disciplinary action can be taken against an agent, broker, associate broker, or real estate salesperson if they make false statements: RCW 18.85.230 Now, back to Lake Hills house, April, 2004. We met with Stickney and Trustworthy at the house. We discovered that Trustworthy, a retired industrial engineer, was an elderly man with a charming accent. Certainly an engineer with years of construction experience behind him, the quality of whose work was attested to by our trusted Windermere agent, was qualified to do the job, we thought. 14. Stickney Promotes Suspended Contractor Peter Oakes Stickney arranged a second estimate on the Lake Hills renovation. A man named Peter Oakes met Mark at the house. Stickney did not give Oakes the build up he had given Trustworthy, and told Mark nothing about Oakes. Unlike the charming Trustworthy, Oakes appeared frowning and taciturn. Coincidentally, Oakes’s estimate for the Lake Hills house was within 10 percent of Trustworthy’s. Stickney cited this coincidence as evidence both were competent contractors. The effect of Oakes’s visit was to make the charming Trustworthy look so much more attractive to work with than the grumpy Oakes. But like Trustworthy, Oakes was not a legally registered contractor when Stickney promoted him to us. Oakes’s contractor’s registration had been suspended by the State of Washington Department of Labor and Industries. According to information given to us by L&I’s Office of Specialty Compliance on January 6, 2006, Oakes’s suspension dated from August 3, 2003 when his insurance expired. (Exhibit pfo 3). 15. Oakes Being Sued by Customer We didn’t know it at the time, but in January, 2003, a dissatisfied customer filed suit against Peter Oakes. According to the court documents, the plaintiff’s attorney stated: Homeowner was guaranteed on more than one occasion that the project would take six weeks from start to finish. He was fired at week # 17. (Exhibit pfo 4, Complaint & Summons) In part, Peter Oakes responded he’d never even heard of a remodeling job that did not go over budget and behind schedule. He told the court: If there has ever been a remodel project that has fallen on line financially and timing, I would like to know of it. In the common tongue, this principle might be paraphrased as “We remodeling contractors always make promises we can’t keep.” When Stickney introduced us to Oakes, the suit was still on-going, but ultimately, in June 2004, a judge awarded Oakes’s $12,000 bond to Oakes’s dissatisfied customer. (Exhibit pfo 4, Order Granting Presentation of Judgment) In July, 2006, the Department of Labor and Industries interviewed Bob Trustworthy, who told L&I (according the L&I report) that Mr. Stickney's housing inspector had highly recommended Peter Oakes to him. 16. Oakes, Unlicensed Electrician and Uncertified Plumber Again, we didn’t know it in April 2004 when we met Oakes, but on October 7 and October 8, 2002, the State of Washington Department of Labor and Industries cited Oakes for working as an electrician without an electrician’s license (Citation No. E39227) and working as a plumber without a plumber’s journeyman/training card (Citation No. P 4231). The fines imposed were $500 and $250 respectively. (Exhibit pfo 5) 17. Prepare To Meet Oakes Again Trustworthy/Oakes coincidences did not end in April at the Lake Hills house. In July, 2004, we met Oakes again, doing the framing in the basement of the house in Redmond which we eventually bought. It would be under Oakes’s watch as TMC foreman and supervisor that our renovations would be done. (See Construction Defects.) 18. We Write An Offer On Lake Hills House But let us return to the Lake Hills transaction. Upon the basis of the two estimates Stickney arranged for us, we decided we could afford the Lake Hills house and we wrote an offer on it. Based on Stickney’s glowing and repeated recommendations of Trustworthy and our joint meeting with Trustworthy and Stickney, we decided we would use Bob Trustworthy’s company to do the renovations. From our present vantage point, we can see how the Stickney/Trustworthy relationship might work: Trustworthy gives Stickney ”affordable” renovation estimates, and those estimates help Stickney sell the house. Stickney and Windermere earn a real estate commission, and Trustworthy/Stickney get a renovation contract. One hand washes the other — who can object? 19. Stickney Not Licensed To Sell Construction Services The next step in the purchase was a structural inspection. Stickney was present during the inspection. Several times when the inspector pointed up flaws, Stickney interjected “We can fix that!” Had we been less trusting we might have questioned Stickney’s use of the pronoun “we.” From our present vantage point, we understand that Stickney’s use of “we” signified he was part of the TMC company, or put another way, TMC was part of the “Stickney Team.” While we believed he was operating as our licensed real estate agent, Stickney was in also doing the work of a salesman, selling the contracting services of the unlicensed and unbonded Trust Me Construction. 20. What Does RCW Say About Unlicensed Practice? By strict reading of the law, surely Stickney and Trustworthy were all engaging in “unlicensed practice.” RCW 18.235.010 And RCW 18.27.020 states it is a misdemeanor to do such work without being registered. RCW 18.27.020 Washington law requires the offenders to be prosecuted. RCW 18.27.020 And each day a person works without a required registered, a separate offense is committed. RCW 18.27.200 We knew nothing of these pertinent facts or laws of course, and we did not realize what was going on around us. We were relying upon Stickney to clue us in . . . 21. We Base Offers On Renovation Costs For each substantial flaw in the house that would cost serious money to fix — -a furnace that had to be replaced, cast iron plumbing that had to be replaced, siding that needed replacement, a roof at the end of its life — we asked the seller to compensate by lowering the price. Once, when Stickney was out of town, his assistant, Patty Ennis, made one of the counter-offers. Finally, a pest inspector found Norway rats were frequenting the garage. Despite Stickney’s recommendation (“We can fix that!”), we refused to go through with the sale. We were not only turned off by the rats, but also worried about what else might be wrong with the house that we would discover only after purchase. During one of these negotiations, Stickney suggested that the seller should NOT lower the price. Instead, he should put the sum in escrow for the renovation work. In that way, the amount of the mortgage would not be reduced by a lowered price. The escrow company would then release the “mortgage” funds to Trust Me Construction. This seemed an unusual practice to us, but we shrugged. No doubt about it — we were inexperienced with real estate/renovation financing. 22. We Shop With Windermere And Stickney On another occasion we wanted to write a contract on a house listed on the MLS in Union Hill, Redmond. But Stickney told us that the house had septic and drainage problems and the purchase would be unwise. Those problems might be expensive or impossible to handle, he said. The next house we tried to buy was situated in Bellevue, a few blocks off 156th Avenue, SE. We discovered it with Stickney’s help, listed on the MLS. We loved that house. It needed no renovation. We wrote a contract, but Stickney told us that our offer was beaten by another buyer who waived even the financing contingency. Desperate, and now exhausted, we reconsidered the house at 8209 172nd Ave. N.E. in Redmond. On Stickney’s recommendation, we met with Bob Trustworthy and Stickney at the house to consider how much renovation would cost before we made our offer, to see if we could afford the project, and protect ourselves against over-investing. Remember, Stickney said his field expertise encompassed exactly this subject. 24. Stickney Writes TMC Estimates In His Own Hand That meeting took place in the week prior to May 20. In his own hand, Stickney jotted down rough range estimates for renovation and the estimated value of the house at the completion of renovation. (Exhibit phs 8.) We now realize that Trustworthy — had he had a contractor’s registration — should have been writing down the estimates, not Stickney. Why was our fiduciary advisor making bids on behalf of the contractor? We don't believe Stickney's real estate license authorizes him to make bids on behalf of an unregistered contractor. (See RCW 18.27.020 as quoted above.) A real estate agent/advisor and fiduciary might have advised us to get bids from at least three different contractors and check out their references, but not Stickney. Amazing what you realize after the horse has left the barn. And since we've spoken about our experiences, many people knowledgeable in the field of home renovations have referred us the The Labor and Industries booklet, "Hiring a Contractor or Remodeler: What you should know." It is very hard to believe Stickney was not familiar with this booklet, given his boasts of being a specialist in real estate renovations. Had he referred us to the publication or given us a copy, we might have avoided many of the pitfalls he led us into. Recently, we entered the phrase "how to hire a contractor" in the Google Internet search engine and got more than 15,000 hits. Those hits included ThisOldHouse.com, eHow.com, OldHouseWeb.com, USNews.com, HomeTips.com, Learnthat.com, and DoItYourself.com, and many of those included valuable advice that was sorely missing from Paul Stickney's presentation. But now back to the house on 172nd Ave. Northeast. Based on the estimated cost of desired renovations, we decided to renew our offer. Stickney again helped us, using the same form Stickney used for the first offer. The second offer was tendered on May 20, 2004. 25. We Pay Paul H. Stickney, CRS, Windermere Real Estate Agent The offer was soon accepted, and — since the house was a FSBO — we paid Stickney $6,300 for his services to us throughout the process. (See Stickney’s bill at Exhibit phs 10.) That transaction went by certified check to the closing company, which issued a check to Stickney and recorded the transaction on the HUD-1 form. Looking back, we see that the HUD-1 form states the check was issued to "Paul H. Stickney Real Estate Services, Inc." We had never heard of "Paul H. Stickney Real Estate Services, Inc." until after the closing. Stickney's bill states: The following services were performed by Paul H. Stickney, CRS, Windermere Real Estate on behalf of Mark & Carol DeCoursey regarding the home at 8209 172nd Ave., NE. . . . Provided comprehensive overview of costs associated with major cosmetic and some structural improvements to the subject home so DeCoursey could compare value when finished to other homes seen in the market place that were updated, because this home was unacceptable to DeCourseys in as is condition. The description of Stickney’s services ends with these words: Please remit payment to: This was the first we had ever heard of that corporation. Seeing those words, some people reading this story (and not familiar with real estate law) have wondered which corporation Stickney was representing while he worked as our real estate agent. Could Stickney have been working for himself and not Windermere? But in the opening words of his bill, Stickney describes himself as "Paul H. Stickney, CRS, Windermere Real Estate." And the Revised Code of Washington, 18.85.155, reminds us that, "Responsibility for any salesperson, associate broker or branch manager in conduct covered by this chapter shall rest with the broker to which such licensees shall be licensed." We did not question Stickney about his request. We were under the impression then, as we are now, that the Windermere borkerage knew about, shared in, and endorsed this exhange of money for services. See the Washington Secretary of State printout for the registration of that corporation. (Exhibit phs 4.) 26. Paul H. Stickney: Washington Real Estate Licensee Paul Stickney was operating as a Windermere real estate agent when he worked with us throughout the entire process. From when we first met him in April 2004, he researched listings, helped shop for properties and advised us on price, advised us on the remodeling potential of various houses and their resulting value, submitted purchase offers, told us of the negotiating abilities he could bring to the transaction, designed and managed our strategies, and with his own hand, filled out our offer for sale for the FSBO at 8209 172nd Ave., NE using the Northwest Multiple Listing Service form to do so. And in February, 2005, Stickney used the MLS service to assist us and Vince’s appraiser to arrange a new first mortgage for our renovated house (see below). Consider what Stickney did during this time. He was working as a real estate agent. The Revised Code of Washington is clear. RCW 18.86.010 In the following clauses, the key phrase is “either directly or indirectly.” Stickney was negotiating “indirectly” — through us — for the purchase of 8209, and using the reputation and facilities of his Windermere broker to do it. He was rewarded by — in the language of RCW 18.85.010 — “other compensations;” the other compensation being the $6,300 we paid him for his services. (Exhibit phs 10.) RCW 18.85.010 A wag might raise this question: If Stickney was not operating as a licensed real estate agent during his relationship with us, what was he doing? Was he impersonating a licensed real estate agent? Or was he operating as an unlicensed real estate agent? 27. Windermere Supports the “Stickney Team” Paul H. Stickney Real Estate Services Inc. is listed on a number of search engines on the Net. “Paul H. Stickney Real Estate Services Inc. 8105 166th Avenue, NE, Suite 100, Redmond,” is listed in the DexOnline.com Greater Eastside Yellow Pages (2004-June, 2005), under Real Estate. Stickney’s listing can be found on pg. 624, and the Windermere Redmond listing appears in the following column, on pg. 465 (Exhibit windermere 7). Redmond is a small town, and Stickney did his business from his “Stickney Team” office just a few blocks from the Shriners’ Windermere Redmond office. The Windermere Redmond web page directs Windermere customers to Stickney’s email address as stickneyteam@windermere.com, (Exhibit phs 2) indicating the Shriners’ corporation endorsed the “Stickney Team” by allowing the corporate domain name “windermere.com” to be associated with it. Certainly the owners of Windermere Redmond’s corporation, Craig and Rosalie Shriner, must have known of Stickney’s company. Stickney’s manager, Ken Bacon, and broker Mike Connolly, also should have known. 28. Windermere Responsible For Stickney’s Activities Stickney has been working for the Shriners’ corporation for years, and they have benefited from the commissions he earned doing business at his office. Stickney features the Windermere logo on his webpage. (Exhibit phs 5.) The Shriners and their brokers should have known about Stickney’s real estate business practice. RCW 18.85.155 See also RCW 18.86.100. It is clear that Stickney’s broker is imputed with the knowledge of Paul Stickney. What does “impute” mean? Impute: 1. To ascribe (a crime or a fault) to another. 2. To attribute to a cause or source. 3. To attribute (wickedness or merit) to a person as transmitted by another. — American Heritage Dictionary RCW 18.86.100(2) The Multiple Listing Service is a cooperative between brokers. When Stickney was finding houses for us to inspect, and when he was using the MLS service to research comparable housing sales to justify the amount of a new mortgage on our renovated house, he was using his brokers’ resources and acting under their auspices. | |||||||||||||||||
|
29. Windermere Recommended TMC Curious to know if the Shriners’ office at Redmond Windermere also recommended Trust Me Construction, Carol called that office on August 5, 2005. She spoke to Windermere agent Amy Armstrong, and asked if TMC was on their list of recommended contractors. Amy assured Carol that TMC was indeed on the Windermere’s list. However, Ms. Armstrong did not mention that a Windermere agent (Stickney) was an officer of the company. (See sworn statement of Carol DeCoursey, Exhibit windermere 3.) Months later, Carol asked a licensed private detective to verify that TMC recommendation: In November, 2005, by means of an office visit and follow-up email exchanges, Amy Armstrong verified that TMC had been on Windermere’s referral list. See sworn statement of Leigh Hearon Investigative Services at Exhibit windermere 2.) For a list of construction defects our home suffered at the hands of this Windermere-recommended contractor, see Construction Defects. Windermere Real Estate/S.C.A., Inc. obviously did not use due diligence when recommending Trust Me Construction, Inc. The Better Business Bureau opened a report on Trust Me Construction in June, 2003, and listed TMC as a “window cleaning” service. That report is available on the BBB web page as we write. (Exhibit windermere 3a.) Window cleaning service? To customers seeking a reliable construction company, why would Windermere promote a window cleaning service? The answer is obvious: Windermere did not take even the elementary, precautionary step of checking with BBB before recommending members of the public use Paul Stickney's company, and thus Windermere was unaware of TMC's classification as a window cleaning service. 30. “Quod approbo non reprobo” “Quod approbo non reprobo” means “I cannot approve and reject at the same time. I cannot take the benefit of an instrument, and at the same time repudiate it.” (Black’s Law Dictionary.) When Stickney does good, it’s fair that the Shriners and Windermere should experience the economic consequences. When Stickney doesn’t do good, surely it’s fair the Shriners and Windermere also experience the economic consequences? For years, TMC has be part and parcel of Stickney's real estate selling strategy. And for years, Windermere Real Estate/ S.C.A., Inc. has benefited in sales commissions. See affadavit of Bellevue attorney J., which documents that this practice already had a history in 2001. It was Stickney’s affiliation with Windermere that recommended his probity and integrity to us. 31. Agents Must Deal Honestly And In Good Faith The Revised Code of Washington stipulates that a licensee (a broker, associate broker, etc.) must deal honestly and in good faith, with reasonable skill and care: RCW 18.86.030 — to Part II —
|
