Since I practice law in Washington I naturally looked at our state’s case law, but couldn’t find a case on point to answer my question. I expanded my search to other states and found two relevant cases, one in Illinois and the other in Missouri. In 2001, an Illinois’ court found that an employer has no protectible interest in an employee’s customers unless the employer can show the employee would not have had contact with the customers absent his association with the employer. Com-Co Ins. Agency, Inc. v. Service Ins. Agency Inc., 748 N.E.2d 298, *302 (2001). I interpret this to mean that in state of Illinois, that when an employee leaves their employer he or she can bring their clients with him as long as that person brought them to the company at the time they were hired. In addition to this Illinois case, I also found a Missouri case that held the exact opposite. Naegele v. Biomedical Systems Corp., 272 S.W.3d 385, *389 (2008).

So now the question remains, would the Washington court follow Illinois or Missouri? My opinion is that a Washington court would follow Illinois, and here’s why. The backbone of decisions regarding non-competes are that the agreement must be reasonable. In fact, a court in WA will not enforce a non-compete or a provision of the non-compete if it results in an unreasonable outcome. This would be the case if the state followed the Missouri case law. Think about it, in Missouri an employer can hire a salesperson, have them bring their clients to the company, terminate the employee right after the hire date, and prevent the employee from contacting the same clients that he or she brought to the Company. Sounds unreasonable to me, and I think the Washington courts would agree. Therefore, I believe that the Illinois holding discussed above would be adopted by a Washington court.

In the end of it all I guess my niece, i.e. the company, doesn’t get to keep something if it doesn’t belong to them in the first place. Sorry Bailey, but I’ll buy you some M & M’s to make up for it.

In this situation you have two options 1) turn down the sale or 2) sell on credit.  Assuming you chose the later, get a security interest.  This helpful tool will allow you to repossess the goods in the event your customer fails to pay the remaining balance.  In fact, assuming your security interest meets all the requirements, you can even get your goods back if the buyer files bankruptcy before paying off the debt.

Interested?  Well keep reading because you need to know a bit more before calling your local business attorney.

First, you should know how to create a security interest.  The requirements are:  1) obtaining a security agreement; 2) entering a transaction which involves consideration and 3) giving your buyer (debtor) rights to the goods.  The security agreement will usually be included in the contract and must reasonably describe the goods, be signed by the buyer (debtor) and be in writing or some other form of record.  Consideration is when there is an exchange between parties, i.e. goods for a promise to pay.  Finally, the buyer or debtor must have rights in the goods, meaning that buyer must have ownership rights.  Assuming these and a few other requirements are met you will have a valid security interest.

Having it is just half the fun.  To make sure you protect your interest you need to file it with the Department of Licensing.  Most of the time filing can be done at the DOL’s website.   http://www.dol.wa.gov/business/UCC/uccefees.html.  Filing is important because it protects your interest from other creditors who take a security interest in the goods you sold to the debtor.  If you’re the first person to file, you have priority and your interest will likely be protected.

Unfortunately all good things must come to an end, and security interests are no exception.  Your interest will expire in five years if it is not renewed, so make sure to note the expiration date on your calendar.

Remember, obtaining a security interest is one of the best ways to protect yourself as a creditor.  Now that you know what an interest is and how it can help you, give your local business attorney a call at 206-922-3506 and have him get the ball rolling.

If you have any questions, please feel free to contact me or post.

All the best!

Ryan

First, in the State of Washington, the legislature has passed RCW 19.142 to protect consumers in their dealings with health clubs.  Under this statute, if you’ve been a member to a health club for one year or more and you cancel your membership with 30 days written notice, then the health club cannot continue to withdraw money from your account.  If they do, the health club is likely in violation of 19.142.050(1).

In addition to violating RCW 19.142.050(1), the above situation also violates the Washington State Consumer Protection Act (CPA).  RCW 19.142.100 says that any violation of the Health Club statute is a violation of the CPA.  Under that statute an injured party can go to court and ask the judge to award:  1) the amount of money withdrawn from the account; 2) reasonable attorney’s fees and 3) treble damages equal to three times the actual damages, but not to exceed $10,000.00.

In addition to going to court, the conduct can also be reported to the Washington State Attorney General’s Office.  I assume that once the violation is reported the AG will investigate accordingly.  If you are looking for more info on how to report a violation please visit the following site.  http://www.atg.wa.gov/ConsumerIssues/HealthClubs/default.aspx#ViolationsOfTheLaw

Canceling a health club membership can be quite a challenge.  It’s also one of those problems everyone seems to run into, but no one seems to know what their rights are.  I hope that these situations quit happening to me, but if they don’t at least I am prepared to respond accordingly.

Hope you enjoyed this post and please let me know if you have any questions.

Ryan Pauley

My journey on this case began in April 2008, while I was volunteering at the Ronald A. Peterson law clinic.  At that time I was a third year law student finishing my legal education and preparing to study for the Washington State Bar Exam.  Needles to say, I had a lot of things on my mind at that time and wasn’t too eager to take on more responsibility.  However, after reviewing the facts of Shadeed’s case and speaking with him on a few occasions I knew that I had to do everything in my power to help Shadeed.

As some of you might know, Shadeed was convicted under WA State’s three strikes law and sentenced to life without parole.  His first two strikes consisted of robbery in the second degree (a class B felony) and his third strike was attempted robbery in the second degree.  Although Shadeed was sentenced to life in prison, he didn’t stop living his life once he arrived.  Immediately following his sentence, he enrolled in educational classes and earned his GED through the prison’s educational program.  His passion for learning and education continued throughout his sentence and is as strong toady as it was fifteen years ago.

In addition to education, Shadeed also became an active member in drug and alcohol rehabilitation classes.  He learned to deal with his disease and helped other prisoners overcome the same problems that had led him to prison.  Today Shadeed is clean and sober and a model prisoner.

There is no question in my mind that Shadeed is ready for life on the outside.  He has the intelligence, family support, and passion to become a contributing member of society.  Further, once he is released he will likely be working with community groups to ensure that other young men don’t make the same mistakes he did.

Its very rare that an attorney gets to experience what I have experienced working with Shadeed.  I can only hope that my readers and Governor Gregoire are as supportive of his case as I have been over the last several months.

As always, your comments are welcomed.

Ryan

Second mortgage lenders will likely entertain this idea because it will probably be their only opportunity to recover payment on the loan.  A borrower who can’t make their second mortgage payment will likely either be forced into a foreclosure, short sale or bankruptcy.  If each of these cases, the second mortgage company will likely recover nothing.  Therefore, it is within the lender’s best interest to negotiate with the homeowner for cents on the dollar.

The only problem with this scenario is that the homeowner needs to have money to pay off the second.  However, if the homeowner has the funds, a payoff will provide short term relief and likely prove to be a sound long term investment.

The symptoms of whiplash will either be experienced immediately following the accident or several days later. The symptoms of whiplash include:
• Neck stiffness
• Injuries to muscles and ligaments
• Headache and dizziness
• Difficulty swallowing
• Abnormal shoulder or back pain
• Insomnia

For most patients, the symptoms of whiplash usually subside 2 to 4 weeks. If symptoms continue to worsen after 6 to 8 weeks, further x-rays and other treatment may be necessary such as surgical repair to the intervertebral discs.

Traditionally, whiplash has been treated using the following methods:
• Soft cervical collar
• Heat therapy
• Pain medications
• Muscle relaxants

Modern forms of whiplash treatment include chiropractic treatment and acupuncture.
• Chiropractic Treatment – Chiropractors, also known as doctors of chiropractic or chiropractic physicians, diagnose and treat patients with health problems of the musculoskeletal system and treat the effects of those problems on the nervous system and on general health. Many chiropractic treatments deal specifically with the spine and the manipulation of the spine.
• Acupuncture – acupuncture is an ancient system of healing, developed over thousands of years in Eastern countries such as China. It is a treatment in which fine needles are applied to specific acupuncture points, of which there are around 500 placed on the body, in order to relieve symptoms of both physical and psychological conditions. Acupuncture also encourages the body to heal itself and promotes well-being. Acupuncture has proved to be a particularly effective in relieving the neck pain and other symptoms associated with whiplash injuries. In some cases acupuncture has helped in the treatment of whiplash patients suffering long-term symptoms where conventional approaches showed little improvement.

The majority of my clients have had the greatest long term success with chiropractic treatment and physical therapy. However, it is best to consult with your primary care physician regarding the most effective way to treat your injuries.

If you have any questions about your whiplash claim, please feel free to contact me for a free consultation.

Ryan Pauley
Attorney at Law

Based on recent numbers, about half of the borrowers who modify their loans are going into foreclosure six months later. The reason, the loan modifications aren’t enough and/or the borrowers aren’t being adequately represented during the process.

To cure the situation, the Administration is trying to help struggling homeowners get their debt to income ratio below 31% by significantly lowering the interest rate on their current loan. A much needed step if you ask me.

However, what the Administration must also focus on is how to help those who are upside down in their homes (i.e. someone who owes more on their home than it is actually worth) and behind on their payments.

Homeowners must also make sure they are adequately represented during the modification process. As sad as it is, the same mortgage companies which put many of these borrowers into subprime loans are now trying to profit on loan modifications.

Borrowers should have an attorney review the loan documents before finalizing the modification. This will help ensure that the modified loan is more advantageous than the borrower’s current situation. In many situations, a lack of independent review is what caused borrowers to enter into subprime loans to begin with.

For loan modifications to work, two things need to happen. First, the programs currently offered must be more aggressive to help borrowers lower their DTI below 31% and they must be available to those who are upside down in their homes. Second, borrowers considering loan modifications must protect themselves and be informed consumers when entering into these transactions. http://www.dfi.wa.gov/consumers/education/home_loan/loan-modification.htm