[LTPC-disc] RE: LTPC Legal Issues

Wed, 28 May 2003 06:37:32 -0700

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Hey, Dennis, et al,

=20

Prior to my recent transition into insurance, I was a screenwriter.  As
such, I spent five years researching and writing "Class Action" (1991
release starring Gene Hackman for 20th Century Fox - Dir. Michael =
Apted).
Yes. the withholding of our renewal commissions for non-vested agents is =
a
classic class action suit. =20

=20

The intent of the contract stipulation was to encourage LTPC agents to
remain at the company for an extended period of time.  Now, the time =
left is
finite through no actions on our part.  Therefore, Cendant's decision to =
not
pay us for renewals we've earned and would have collected otherwise is =
bad
faith.=20

=20

I would be very interested in having a lawyer approach Cendant on this
point, although I'd much prefer a cash out of our future commissions now
rather than compensation down the line.  In this situation, a clean =
cut's
probably the best.

=20

Yours - Carolyn Shelby

=20

=20

  _____ =20

From: ltpc-disc-admin@ltpcalums.com =
[mailto:ltpc-disc-admin@ltpcalums.com]
On Behalf Of DPat54@aol.com
Sent: Wednesday, May 28, 2003 5:46 AM
To: doug.burg@wdn.com; ltpc-disc@ltpcalums.com

=20

Just thinking out loud.....

1.  Alabama, like most states, is an "Employment at Will" state.  =
Meaning:
You are employed only as long as your employer wants and needs you.  =
Unless
you are in a "Protected Class" (minority, handicapped, etc.).  Otherwise =
you
can be let-go at anytime, for no reason.

2.  The way Cendant/Progeny handled this whole thing tells me they had =
the
attorney's involved every step of the way.  Once they "discovered" that =
they
could make a lot more money by getting rid of the sales and support =
staff,
they could have done that immediately.... except for the legal
considerations.  It cost them a lot of money just to provide health
insurance during this sixty day period for 500 families.  So they were
listening to the attorneys when they decided to wait the 60 days.

3.  In corporate America today the only thing that matters to most =
companies
anymore is the cost of their stock.  It drives everything because it =
drives
the major part of the take home pay for the 15 or so guys at the top.  =
(It's
how they make tens of millions of dollars from stock options and =
bonus'.)
By eliminating the bulk of the overhead at LTPC, and yet retaining the =
bulk
of the revenue, Progeny, and therefore Cendant, achieved a small step
(relative to the BIG picture at Cendant) toward increasing their =
profits,
and therefore their stock prices, and therefore the take home pay for =
the 15
guys at the top.=20

Summary:  It made financial sense to do what they did.  So they =
consulted
the attorneys to minimize the legal exposure.  And they are not going to
voluntarily "give away" money.... 'cause that's why they did it to start
with.  So forget "negotiating" with them.  In my opinion they will only =
do
what they are forced to do.... by a judge and/or jury.

Even if you are against legal action... if they find that out then you =
have
lost !

In my opinion this is clearly a "class action" case.  A "class," by
definition, is a group of plaintiffs that were similarly treated by a
defendant.

We should get someone (an attorney) to tell us where in the U.S.  we =
have
the best chance of filing a suit... a get a jury that hates big =
companies.
And then go hire an attorney from that county (repeat: county) to write =
a
letter stating our demands.  And then be prepared to fight it out.... =
'cause
I'm thinking that Cendant already is.

But I can tell you that people come from all over the country to file =
these
type lawsuits in Barbour County, Alabama.  It is very "plaintiff =
friendly."
Do we have a LTPC rep in Barbour County, Alabama that could legitimately
claim they are being "wronged and damaged" ?

Dennis Patterson
Birmingham, AL

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<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>Hey, Dennis, et =
al,<o:p></o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>&nbsp;<o:p></o:p></span></font></p>

Prior to my recent transition into =
insurance,
I was a screenwriter.&nbsp; As such, I spent five years researching and =
writing
&#8220;Class Action&#8221; (1991 release starring Gene Hackman for =
20th
Century Fox &#8211; Dir. Michael Apted).&nbsp; Yes&#8230; the =
withholding of
our renewal commissions for non-vested agents is a classic class action =
suit.&nbsp;
<o:p></o:p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p></span></font></p>

The intent of the contract =
stipulation was
to encourage LTPC agents to remain at the company for an extended period =
of
time.&nbsp; Now, the time left is finite through no actions on our =
part.&nbsp;
Therefore, Cendant&#8217;s decision to not pay us for renewals =
we&#8217;ve
earned and would have collected otherwise is bad faith. =
<o:p></o:p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>I would be very interested in =
having a
lawyer approach Cendant on this point, although I&#8217;d much prefer a =
cash
out of our future commissions now rather than compensation down the =
line.&nbsp;
In this situation, a clean cut&#8217;s probably the =
best.<o:p></o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>Yours &#8211; Carolyn =
Shelby<o:p></o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p></span></font></p>

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<p class=3DMsoNormal><b><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font =
size=3D2
face=3DTahoma><span style=3D'font-size:10.0pt;font-family:Tahoma'>
ltpc-disc-admin@ltpcalums.com [mailto:ltpc-disc-admin@ltpcalums.com] =
<b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>DPat54@aol.com<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> <st1:date =
Year=3D"28" Day=3D"28"
Month=3D"5" ls=3D"trans" w:st=3D"on">Wednesday, <st1:date Year=3D"28" =
Day=3D"28" Month=3D"5"
 ls=3D"trans" w:st=3D"on">May 28, 2003</st1:date></st1:date><st1:time =
Minute=3D"46"
Hour=3D"5" w:st=3D"on"> 5:46 AM</st1:time><br>
<b><span style=3D'font-weight:bold'>To:</span></b> doug.burg@wdn.com;
ltpc-disc@ltpcalums.com</span></font><o:p></o:p></p>

</div>

<p class=3DMsoNormal><font size=3D3 face=3D"Times New Roman"><span =
style=3D'font-size:
12.0pt'><o:p>&nbsp;</o:p></span></font></p>

Just thinking out loud..... 
 
1.&nbsp; <st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Alabama</st1:place></st1:State>,
like most states, is an &quot;Employment at Will&quot; state.&nbsp; =
Meaning:
You are employed only as long as your employer wants and needs =
you.&nbsp;
Unless you are in a &quot;Protected Class&quot; (minority, handicapped,
etc.).&nbsp; Otherwise you can be let-go at anytime, for no reason. 
 
2.&nbsp; The way Cendant/Progeny handled this whole thing tells me they =
had the
attorney's involved every step of the way.&nbsp; Once they
&quot;discovered&quot; that they could make a lot more money by getting =
rid of
the sales and support staff, they could have done that immediately.... =
except
for the legal considerations.&nbsp; It cost them a lot of money just to =
provide
health insurance during this sixty day period for 500 families.&nbsp; So =
they
were listening to the attorneys when they decided to wait the 60 =
days. 
 
3.&nbsp; In corporate <st1:country-region w:st=3D"on"><st1:place =
w:st=3D"on">America</st1:place></st1:country-region>
today the only thing that matters to most companies anymore is the cost =
of
their stock.&nbsp; It drives everything because it drives the major part =
of the
take home pay for the 15 or so guys at the top.&nbsp; (It's how they =
make tens
of millions of dollars from stock options and bonus'.)&nbsp; By =
eliminating the
bulk of the overhead at LTPC, and yet retaining the bulk of the revenue,
Progeny, and therefore Cendant, achieved a small step (relative to the =
BIG
picture at Cendant) toward increasing their profits, and therefore their =
stock
prices, and therefore the take home pay for the 15 guys at the top. 
 
Summary:&nbsp; It made financial sense to do what they did.&nbsp; So =
they
consulted the attorneys to minimize the legal exposure.&nbsp; And they =
are not
going to voluntarily &quot;give away&quot; money.... 'cause that's why =
they did
it to start with.&nbsp; So forget &quot;negotiating&quot; with =
them.&nbsp; In
my opinion they will only do what they are forced to do.... by a judge =
and/or
jury. 
 
Even if you are against legal action... if they find that out then you =
have
lost ! 
 
In my opinion this is clearly a &quot;class action&quot; case.&nbsp; A
&quot;class,&quot; by definition, is a group of plaintiffs that were =
similarly
treated by a defendant. 
 
We should get someone (an attorney) to tell us where in the =
<st1:country-region
w:st=3D"on"><st1:place =
w:st=3D"on">U.S.</st1:place></st1:country-region>&nbsp; we
have the best chance of filing a suit... a get a jury that hates big
companies.&nbsp; And then go hire an attorney from that county (repeat: =
county)
to write a letter stating our demands.&nbsp; And then be prepared to =
fight it
out.... 'cause I'm thinking that Cendant already is. 
 
But I can tell you that people come from all over the country to file =
these
type lawsuits in <st1:place w:st=3D"on"><st1:City w:st=3D"on">Barbour =
County</st1:City>,
 <st1:State w:st=3D"on">Alabama</st1:State></st1:place>.&nbsp; It is =
very
&quot;plaintiff friendly.&quot;&nbsp; Do we have a LTPC rep in =
<st1:place
w:st=3D"on"><st1:City w:st=3D"on">Barbour County</st1:City>, <st1:State =
w:st=3D"on">Alabama</st1:State></st1:place>
that could legitimately claim they are being &quot;wronged and =
damaged&quot; ? 
 
Dennis Patterson 
<st1:place w:st=3D"on"><st1:City w:st=3D"on">Birmingham</st1:City>, =
<st1:State
 w:st=3D"on">AL</st1:State></st1:place><o:p></o:p>

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