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Hillius v. 18 Paradise, LLP, Awaiting Decision on Motion to Dismiss in Washington State Supreme Court

Posted on: 13 Mar 2025

Following nearly 5 years of litigation in Whatcom County Superior Court and a trial in May 2024, the Hillius v. 18 Paradise, LLP case is now in front of the Washington State Supreme Court. Plaintiffs filed a notice of appeal to the State’s highest court in October 2024 and have further requested Direct Review, seeking to bypass the Court of Appeals to have the court review a slew of the trial court’s decisions on various grounds. Yet, the primary decision for which the Plaintiffs are seeking review is the trial court’s dismissal of the Plaintiffs’ Consumer Protection Act (“CPA”) claim against 18 Paradise and MJ Management on March 21, 2024 (see document 1 below) in addition to the trial court’s order of March 29, 2024, dismissing William “Mick” O’Bryan and Josh Williams from the case (see document 1 below). In the lead up to the trial, the CPA claim had been the heart of the Plaintiffs’ class action suit. After this loss, the Plaintiffs sought CR 54(b) certification of this decision on April 4, 2024 so that they could seek an immediate appeal (see document 1 below). Without the CPA claim, the trial went forward in May 2024, but the Plaintiffs did not file an appeal on their certified court decision. After filing their Notice of Appeal, but before filing their Statement of Grounds for Direct Review, MJ Management filed a Motion to Dismiss Plaintiffs’ appeal on the basis that the Statement of Grounds had been filed late (nearly 2 months according the appellate court rules); the appeal of the CR 54(b) certified CPA claim had not been timely appealed, and MJ Management’s judgment against Plaintiffs and Plaintiff’s Counsel for unpaid attorney’s fees and costs had also not been appealed timely (see document 1 below). In addition to the Motion to Dismiss, both MJ Management and the City of Lynden filed objections to Plaintiffs’ request for the Washington State Supreme Court to take review of this issue instead of the Court of Appeals. The parties have fully briefed these issues Motion to Dismiss (see documents 2, 3, and 4 below), Statement of Grounds (see documents 5, 6, and 7 below) and a hearing date has been set for April 1, 2025. The issues for the court are for the court to decide whether to grant MJ Management’s Motion to Dismiss and also to determine if they will take direct review of the Plaintiffs’ appeal. Possinger Law Group represented MJ Management, O’Bryan, and Williams in the Hillis v. 18 Paradise litigation through the trial and has continued to represent MJ Management in the appeal brought by the Plaintiffs before the Washington State Supreme Court. = = = = = References: 1_Order Dismissing CPA Claim, Order Dismissing O’Bryan and Williams, CR 54(b) Certification, MJ Management Judgment for Fees 2_MJ Management Motion to Dismiss 3_Plaintiffs’ Answer to Motion to Dismiss 4_MJ Management Reply 5_Plaintiffs’ Statement of Grounds 6_MJ Management Objection to Statement of Grounds 7_City of Lynden Objection to Statement of Grounds

MJ Management Continues Collection Efforts Post-Hillius

Posted on: 01 Mar 2025

Following the trial court’s Final Orders entered on September 11, 2024, which determined that the correct amount of the Homestead Joint Maintenance Fee was $36.00 per homeowner per month, the court authorized both 18 Paradise and MJ Management to communicate with homeowners. Consistent with the court’s final orders, MJ Management began efforts in early 2025 to settle accounts with Homestead homeowners who still had outstanding balances owed to the company during the period it operated under its Management and Lease Agreement with 18 Paradise. MJ Management engaged Possinger Law Group to assist with collecting these amounts due. Beginning in January, MJ Management (through Possinger Law Group) sent out notices for payment to these homeowners to settle their accounts. Fortunately, this process has moved forward smoothly, with a significant number of homeowners either paying the amounts still owing or otherwise settling their accounts with MJ Management. There have been some homeowners that have refused to pay the amounts owing. For those homeowners that have stated their refusal to pay, MJ Management authorized Possinger Law Group to initiate collection actions. The first of these collection actions, MJ Management, LLC v. Hoag (WCSC# 25-2-00161-37) is currently moving forward in Whatcom County Superior Court. There has been some confusion created within the community by those actively encouraging homeowners not to settle their accounts on the basis that they could end up paying double to both 18 Paradise and MJ Management. To resolve any remaining confusion, amounts owing to MJ Management only continue through May 31, 2023. Amounts owing from June 1, 2023, and after are to be sent to 18 Paradise. Following years of litigation, MJ Management is looking forward to having this chapter wrapped up in the coming months. Possinger Law Group represented MJ Management in the Hillis v. 18 Paradise litigation through the trial and has continued to represent MJ Management in the appeal brought by the Plaintiffs, which is now pending a Motion to Dismiss before the Washington Supreme Court.

The Role of Arbitration in International Commercial Disputes

Posted on: 24 Feb 2025

International commercial arbitration has become the preferred method for resolving cross-border business disputes, offering businesses a neutral and enforceable way to settle disputes across jurisdictions. As globalization continues to increase the number of cross-border transactions, understanding how arbitration works in this context is critical for companies engaged in international trade. Why Arbitration is Preferred in International Disputes International arbitration is often chosen over litigation for several key reasons, one of the most important being neutrality. In cross-border disputes, parties may come from different legal systems, and neither party wants to be at a disadvantage by litigating in the other’s home courts. Arbitration allows for the appointment of neutral arbitrators, and the parties can agree on a neutral forum and governing law. Another major advantage of international arbitration is the enforceability of awards. Arbitration awards are enforceable in more than 160 countries under the New York Convention, a multilateral treaty that facilitates the recognition and enforcement of foreign arbitration awards. This is a crucial benefit compared to court judgments, which may not be enforceable in certain jurisdictions. For businesses, knowing that a favorable award can be enforced globally provides a significant degree of security when entering cross-border agreements. Moreover, international arbitration offers a degree of expertise and flexibility that national courts may not provide. Arbitrators can be selected based on their knowledge of the industry or the specific legal issues at hand, which can lead to more informed and commercially reasonable decisions. Additionally, parties can customize the arbitration process, agreeing on procedural rules, the language of arbitration, and even the location of the proceedings. This level of customization is particularly valuable in international disputes, where parties may come from vastly different legal, cultural, and commercial backgrounds. Key Institutions Governing International Arbitration Several leading arbitration institutions provide the framework and rules for international arbitration, with the most prominent being: • International Chamber of Commerce (ICC): Headquartered in Paris, the ICC’s International Court of Arbitration is one of the most widely used institutions for resolving international commercial disputes. It provides a set of arbitration rules and administers arbitrations, ensuring the process follows globally recognized standards. • London Court of International Arbitration (LCIA): Based in London, the LCIA is known for its efficient procedures and ability to handle complex disputes involving multiple legal systems. • International Centre for Dispute Resolution (ICDR): The ICDR is the international arm of the American Arbitration Association (AAA) and is frequently used in U.S.-related disputes. • Singapore International Arbitration Centre (SIAC): SIAC has rapidly gained a reputation as a leading arbitration center in Asia, particularly for disputes involving parties from East Asia and Southeast Asia. These institutions not only provide standardized rules but also offer administrative support to ensure that arbitrations are conducted fairly and efficiently. The choice of institution can significantly impact the arbitration process, from the appointment of arbitrators to the enforcement of awards. Challenges in International Arbitration While international arbitration offers significant benefits, it is not without challenges. One major concern is the cost of the process. While arbitration is often perceived as less expensive than litigation, this is not always the case, particularly in international disputes. The involvement of multiple legal systems, extensive document production, and the selection of arbitrators with international expertise can drive up costs. Administrative fees from institutions like the ICC or LCIA can also add to the expense. Another issue is the fragmentation of legal systems. Although the New York Convention facilitates the enforcement of arbitration awards, differences in national legal systems can create complications. Some countries may be reluctant to enforce awards that conflict with local public policy or regulatory frameworks, and in certain cases, courts may intervene in arbitration proceedings more than expected, undermining the parties’ choice of arbitration as a neutral forum. Cultural differences can also pose challenges in international arbitration. Arbitrators and legal representatives from different cultural backgrounds may have different expectations regarding procedural fairness, communication styles, and decision-making processes. These differences can sometimes lead to misunderstandings or dissatisfaction with the outcome of the arbitration. Moreover, limited avenues for appeal can be a double-edged sword. While the finality of arbitration awards is often seen as an advantage due to the swift resolution of disputes, it also means that parties have fewer opportunities to challenge potentially flawed decisions. In international arbitration, where the stakes can be high, this lack of recourse can be particularly concerning for the party on the losing side. Recent Trends in International Arbitration Several trends have emerged in international arbitration as businesses and arbitration institutions seek to address some of the traditional challenges: • Increased Use of Technology: The COVID-19 pandemic accelerated the adoption of technology in arbitration, with virtual hearings and electronic filings becoming more common. These developments have made arbitration more accessible and reduced some of the logistical costs associated with in-person hearings. • Third-Party Funding: To manage the high costs of international arbitration, some parties are turning to third-party funding. In this model, an outside investor agrees to fund the arbitration in exchange for a share of any eventual award. This allows businesses, particularly smaller ones, to pursue legitimate claims without being burdened by the immediate costs of the arbitration process. • Greater Focus on Diversity: There has been a growing movement within the international arbitration community to promote diversity among arbitrators. Efforts to increase the representation of women, minorities, and arbitrators from various cultural backgrounds aim to ensure that arbitration panels reflect the diversity of the parties and disputes they handle. Conclusion International commercial arbitration continues to be the preferred method for resolving cross-border disputes, offering neutrality, enforceability, and flexibility that national courts often cannot provide. However, businesses must carefully weigh the potential costs and challenges, including the cultural and legal complexities inherent in international arbitration. By understanding the advantages and limitations, companies can better structure their arbitration agreements to protect their interests in an increasingly globalized economy. As arbitration evolves, embracing new trends and addressing its challenges will be critical to maintaining its status as the go-to mechanism for […]

The Impact of Mandatory Arbitration Clauses in Commercial Agreements

Posted on: 21 Feb 2025

Mandatory arbitration clauses are a common feature of both modern commercial and consumer agreements, requiring that disputes be resolved through arbitration rather than litigation. While these clauses are often portrayed as a means of avoiding the delays and costs associated with the courts, they have generated significant debate regarding fairness, particularly when one party has a stronger bargaining position. This article explores the implications of mandatory arbitration in the commercial context and discusses recent efforts to regulate its use. Why Businesses Include Mandatory Arbitration Clauses Many businesses include mandatory arbitration clauses in their contracts to reduce the uncertainty and potential exposure that comes with litigation. For companies with frequent or high-value contracts, litigation can be unpredictable, both in terms of cost and outcome. By contrast, arbitration is often seen as a way to exert more control over the process. It provides a faster, more confidential, and generally less formal means of resolving disputes, depending on the nature of the likely disputes in question. One of the primary motivations for using mandatory arbitration clauses is the avoidance of class action lawsuits. These clauses often prevent parties from joining collective legal actions, forcing each claimant to arbitrate individually. For large corporations, especially in consumer or employment settings, this can dramatically reduce the potential liabilities associated with widespread legal claims. By limiting claims to individual arbitration, businesses reduce the financial risks and importantly the public scrutiny that comes with class actions. For businesses particularly, the ability to select arbitrators with relevant expertise can also be a major advantage. In complex commercial disputes, arbitrators who understand the nuances of the industry can provide more informed decisions than generalist judges in the court system. The Concerns with Mandatory Arbitration Despite these advantages, mandatory arbitration clauses raise significant concerns, particularly regarding fairness and access to justice. One of the primary criticisms is that mandatory arbitration deprives weaker parties—such as small businesses, consumers, or employees—of the option to go to court. In contracts where one party has a stronger bargaining position or access to information, such as a large corporation, the weaker party often has little choice but to agree to the arbitration clause as a condition of the contract. There are legal critics that argue that this dynamic creates a power imbalance, as the party drafting the contract may have the resources and experience to navigate arbitration, while the weaker party may not. This is particularly concerning cases where arbitration is mandated in contracts between large corporations and small businesses or individuals, as these smaller parties often lack the financial means or legal expertise to adequately pursue their claims in arbitration. Another concern is repeat player bias. In industries where large companies frequently engage in arbitration, arbitrators may be more likely to side with these companies to secure future appointments. Unlike judges, arbitrators are paid by the parties and do not have the same institutional safeguards to ensure impartiality. This creates the perception, and sometimes the reality, that arbitration is skewed in favor of those who use it regularly. In addition, the asymmetry of information of a corporation that arbitrates with multiple parties has the advantage of knowing the status of all cases in arbitration, while the other party is limited in its knowledge of only the case it is involved in. Finally, the lack of transparency in arbitration raises public policy concerns. Arbitration proceedings are private, and awards are typically confidential. While this can benefit companies seeking to protect sensitive information, it also means that there is little oversight or accountability for decisions that may impact broader legal or societal issues. This contrasts with litigation, where court decisions are public, and legal precedents are established to guide future cases. Efforts to Regulate Mandatory Arbitration In response to growing concerns about the fairness of mandatory arbitration, there have been significant efforts at both the state and federal levels to regulate its use. Several legislative initiatives have aimed to eliminate mandatory arbitration clauses in employment, consumer, and antitrust disputes. There has been mounting pressure to limit the scope of arbitration in certain contexts. Other laws, such as the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, which passed in 2022, provide exemptions for specific types of claims, ensuring that victims of workplace harassment can pursue their claims in court. These legislative efforts highlight a growing recognition of the need for greater balance and fairness in arbitration agreements. Conclusion While mandatory arbitration offers advantages to businesses, particularly in terms of efficiency and predictability, it also raises important concerns about fairness and access to justice. As legislative and regulatory efforts to limit the use of mandatory arbitration gain momentum, companies must consider the ethical and legal implications of requiring arbitration in their contracts. Balancing efficiency with fairness will be essential as businesses navigate these evolving legal standards. Next Steps for Businesses If you have an issue related to arbitration, arbitration clauses contained in an agreement, or any questions about contract terms or other aspects of dispute resolution contact Possinger Law Group. = = = = = About Possinger Law Group, PLLC Founded in 2001, Possinger Law Group is a boutique law firm dedicated to elite levels of service to small and medium-sized businesses and the individuals that own them. When faced with serious problems, clients have reached out to Possinger Law Group to be a trusted advisor and advocate to be a guide through high conflict situations and complex legal challenges. In litigation matters, Possinger Law Group works with its clients to effectively resolve disputes, and when necessary, by being fiercely aggressive in litigation. Editor’s Note: This blog post, as well as any data and information provided are for informational purposes only. and is not intended to constitute legal advice and may not constitute the most up-to-date legal or other information. Readers of this article should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting based on information on […]

The Rise of Arbitration in Commercial Contracts: Pros and Cons

Posted on: 18 Feb 2025

Arbitration has become an increasingly popular method of dispute resolution in commercial contracts, often included as a standard clause in agreements between businesses. Companies across industries, from construction to finance, have turned to arbitration to avoid the costs, delays, and unpredictability of litigation. However, while arbitration offers significant benefits, it also carries potential downsides that can impact both parties. The Benefits of Arbitration for Commercial Disputes One of the key reasons businesses choose arbitration is its efficiency. Unlike litigation, which can drag on for years due to court backlogs, procedural rules, and appeals, arbitration tends to be faster. Arbitration hearings can usually be scheduled sooner than court trials, and decisions, known as “awards,” are typically issued promptly after the hearing concludes. This time-saving factor can be critical in commercial settings where time is money, and prolonged disputes could harm business operations. Cost is another significant advantage. While arbitration is not always cheaper than litigation, particularly in complex cases with multiple arbitrators or extensive proceedings, it often involves fewer procedural steps. Discovery, the pretrial process of gathering evidence, is typically limited, and the hearings are more streamlined. This reduction in procedural complexity can translate into savings on legal fees, particularly for parties with substantial litigation budgets. Confidentiality is another key benefit in arbitration. For businesses involved in sensitive matters, such as intellectual property disputes, internal management issues, or competitive commercial practices, arbitration’s private nature can be invaluable. Arbitration hearings and awards are not typically made public, unlike court decisions, which are part of the public record. This privacy allows companies to resolve disputes without exposing proprietary information or risking reputational damage. Additionally, arbitration offers flexibility that is not available in court litigation. Parties in arbitration have a say in the rules of the process, such as selecting arbitrators with specific expertise in the commercial issue at hand, deciding on the governing law, and agreeing on procedural matters. This level of control can help tailor the arbitration process to the specific needs of the dispute. The Criticisms of Arbitration in the Commercial Context Despite its benefits, arbitration also has drawbacks, especially when considering the balance of power between commercial parties. One of the most significant criticisms is the lack of transparency. While confidentiality can be a benefit in certain cases, it can also prevent the development of consistent legal precedents and allow for potentially unfair decisions to be hidden from scrutiny. In cases involving larger, repeat players—such as corporations with substantial resources—arbitration decisions may disproportionately favor the party with more experience navigating the process as well as repeat players who take advantage of the informational asymmetry involving cases against multiple parties who cannot see the claims, issues, and outcomes available in the public records of similar cases. The finality of arbitration awards can be another concern. Arbitration decisions are generally binding and not subject to appeal, except on very narrow grounds, such as fraud or serious procedural misconduct. While this is intended to ensure efficiency, it can also lead to situations where an incorrect legal or factual conclusion cannot be challenged. In litigation, parties have the right to appeal to higher courts if they believe the decision was wrong, but arbitration provides far less opportunity for recourse. Another very real issue is cost unpredictability. While arbitration is often seen as cheaper than litigation, it can still become expensive. Arbitrators, especially in complex commercial disputes, command high fees, and the lack of procedural safeguards like fee waivers or cost-sharing mechanisms can place a financial burden on smaller parties, an issue that is particularly difficult for smaller business entities that are facing opponents with greater resources. Additionally, arbitration often involves administrative fees paid to institutions like the American Arbitration Association (AAA) or the International Chamber of Commerce (ICC), adding further costs to the use of arbitration as a dispute resolution mechanism. Conclusion In the commercial setting, arbitration offers many advantages, particularly in terms of speed, confidentiality, and flexibility. However, these benefits come with trade-offs, including concerns about fairness, lack of transparency, and the finality of awards. Businesses must carefully consider whether arbitration clauses should be included in their contracts and whether the advantages outweigh the risks in each commercial relationship. Understanding the potential benefits and drawbacks in advance of agreeing to any arbitration agreement will help businesses make informed decisions when structuring their dispute resolution processes. Next Steps for Businesses If you have an issue related to arbitration, arbitration clauses contained in an agreement, or any questions about contract terms or other aspects of dispute resolution contact Possinger Law Group. = = = = = About Possinger Law Group, PLLC Founded in 2001, Possinger Law Group is a boutique law firm dedicated to elite levels of service to small and medium-sized businesses and the individuals that own them. When faced with serious problems, clients have reached out to Possinger Law Group to be a trusted advisor and advocate to be a guide through high conflict situations and complex legal challenges. In litigation matters, Possinger Law Group works with its clients to effectively resolve disputes, and when necessary, by being fiercely aggressive in litigation. Editor’s Note: This blog post, as well as any data and information provided are for informational purposes only. and is not intended to constitute legal advice and may not constitute the most up-to-date legal or other information. Readers of this article should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting based on information on this article without first seeking legal advice from counsel in the relevant jurisdiction.