If you have a LLC or corporation registered with the Washington Secretary of State, be aware of scams and misleading letters. Scammers have been increasing their efforts, especially against new business owners. These hoaxes suggest you are required to pay for certificates, posters, or other documentation, when in fact, the state requires no such documentation or you are being overcharged to receive it. The Secretary of State posts information on many of these scams on its webpage. For example, the most recent grift purports to inform business owners they need to pay for a Certificate of...Read More

Each district court in Washington State has a small claims division that provides an avenue for parties to resolve small monetary disputes.  This division is generally referred to as small claims court.  Small claims court utilizes a very streamlined process so that parties can resolve small disputes without having to spend extensive time and money in pursuit of judicial relief.

Effective July 28, 2019, the jurisdictional limit for small claims court has increased from $5,000 to $10,000 in all cases brought by “natural persons”, otherwise better known as human beings, while all other parties (i.e....Read More

On January 1, 2020, Washington state’s new graduated real estate excise tax takes effect.  The excise tax (aka transfer tax) is paid upon closing the sale of real property.  The amount of tax changes depending on the value of the sold property.  The existing excise tax is a flat 1.28%.

The new excise tax is graduated, meaning the percentage increases on defined tranches of sale proceeds as the sale price increases.  Below is a list of the graduated tax brackets based on sale price, and the new excise tax rate assigned to each bracket.  The increases...Read More

Today the Seattle Office of Labor Standards (OLS) announced a settlement with Leadpoint Business Services (Leadpoint) as the largest in the agency’s history. Leadpoint is an Arizona based staffing company that provided workers for two waste recycling facilities in Seattle. The OLS settlement requires Leadpoint to pay $686,202.00 in backpay, interest, and liquidated damages to 358 current and former workers. Leadpoint unlawfully paid these employees at the small employer minimum wage rate instead of at the higher large employer rate under Seattle’s Minimum Wage Ordinance (MWO).

The MWO assigns higher wage rates to employers with 501...Read More

The Washington Supreme Court’s recent decision in Banowsky v. Backstrom, No. 96200-6, 2019 WL 3333172, -- P.3d – (Wn. July 25, 2019), clarifies the interplay between two seemingly conflicting Civil Rules for Courts of Limited Jurisdiction (“CRLJ”)—CRLJ 14A(b) and CRLJ 12(h)(3)—in a matter improperly (but in good faith) filed in Washington State District Court.  Reversing the Court of Appeals, the Supreme Court held CRLJ 14A(b) both authorized and obligated the District Court to transfer the matter to the Superior Court of Washington, despite the District Court lacking subject matter jurisdiction from the moment the case was...Read More

Businesses have life cycles: birth (formation), life (operation), and death (liquidation and winding up). Many business owners form a limited liability company (“LLC”) by filing a Certificate of Formation, but fail to complete the necessary structuring of the LLC to maximize the benefits of LLC. When utilized properly, the flexibility the LLC offers coupled with its liability shield makes it superior in some cases to other entities. However, when not properly considered, an LLC can cause disastrous consequences to its owners and the business itself.

Take the time to draft an “operating” agreement (aka...Read More

What is IFCA?

Washington’s Insurance Fair Conduct Act (“IFCA” or the “Act”) took effect in 2007 to protect insureds against unfair practices by insurance companies.  IFCA provides protections and remedies to insurance policyholders upon an unreasonable denial of a claim for coverage or for payment of benefits.  Additionally, IFCA establishes a statutory scheme to ensure the fair handling of policyholder claims, and sets forth consequences in the event insurance companies violate the Act.

IFCA Violations

Codified under RCW 48.30 along with several sections from Washington’s Administrative Code (“WAC”), IFCA contains numerous provisions regulating the insurance industry....Read More

Washington State is known as the “Evergreen State” for a reason – our majestic evergreen trees are abundant, and we value them.  In the Timber Trespass Statute (codified at RCW 64.12.030), Washington’s legislature has created an effective tool for landowners seeking redress for the unauthorized removal of their trees (whether timber, ornamental trees, or shrubs).

The Timber Trespass Statute creates liability:

[w]henever any person shall cut down, girdle, or otherwise injure, or carry off any tree, including a Christmas tree as defined in *RCW 76.48.020, timber, or shrub on the land of another person, or on the...Read More

A homestead exemption protects homeowners and the equity in their homes from judgment creditors seeking to collect on unsecured debts.  Pursuant to RCW 6.13.010, a “homestead” is real or personal property that the owner uses as a residence.  Washington allows for these homesteads to be protected for up to $125,000 of a home’s value.  In the event that a judgement creditor seeks to collect on unsecured debt, per RCW 6.13.090, a lien is placed on the value of a homestead that exceeds the $125,000 exemption.  Persons residing within a homestead need not complete any documentation to ensure the...Read More

What is Earnest Money?

In the purchase of real estate, it is common for a buyer to put down a deposit called earnest money. This deposit is made to a seller to represent the buyer’s good faith towards buying the real property at issue.  Earnest money is typically held in an escrow account until closing, at which time the deposit will be applied as down payment towards the purchase of the property.

Earnest Money as Damages

Many disputes over the purchase of real estate center around entitlement to earnest money in the event of breach of...Read More