This Washington
Judge Says BIAW Mishandled Membership Money
Quick (important) follow up to yesterday's story: Thurston County Superior Court Judge Carol Murphy ruled today in the battle between the Building Industry Association of Washington (BIAW) and five small businesses (representing 6,000 small businesses) who pay into BIAW’s workers’ comp fund.
Murphy said that the BIAW breached the trust of its members by mingling workers' comp money with its BIAW's own bank account, which funded BIAW's political activity. She's issued an injunction to stop the BIAW from co-mingling the money.
"It's a victory," says plaintiffs attorney Knoll Lowney, "The judge ruled that they breached the trust by taking about a half a million and co-mingling it with their own money—and treating it as their own."
The BIAW says Lowney is "delusional" if he thinks the judge's ruling is a victory for the plaintiffs. "She [the judge] wants us to set up a separate banking account," BIAW spokeswoman Erin Shannon tells PubliCola. "Big deal. We're happy to comply with that technical fix."
Shannon notes that the judge did not award any damages to the plaintiffs nor agree to any of the oversight demands Lowney made about the trust fund.
Lowney hinted that he would be appeal."Trust law does not allow trustees to breach the trust and not pay back the money, that's one issue I'm sure will be appealed."
Footnote: BIAW is the main funder—$500,000—behind I-1082, the initiative that would open up workers comp funds to private insurers.
Opponents of I-1082 contend that the BIAW wants to go with private insurers instead of the state program so they can continue to use the money as they please.
Murphy said that the BIAW breached the trust of its members by mingling workers' comp money with its BIAW's own bank account, which funded BIAW's political activity. She's issued an injunction to stop the BIAW from co-mingling the money.
"It's a victory," says plaintiffs attorney Knoll Lowney, "The judge ruled that they breached the trust by taking about a half a million and co-mingling it with their own money—and treating it as their own."
The BIAW says Lowney is "delusional" if he thinks the judge's ruling is a victory for the plaintiffs. "She [the judge] wants us to set up a separate banking account," BIAW spokeswoman Erin Shannon tells PubliCola. "Big deal. We're happy to comply with that technical fix."
Shannon notes that the judge did not award any damages to the plaintiffs nor agree to any of the oversight demands Lowney made about the trust fund.
Lowney hinted that he would be appeal."Trust law does not allow trustees to breach the trust and not pay back the money, that's one issue I'm sure will be appealed."
Footnote: BIAW is the main funder—$500,000—behind I-1082, the initiative that would open up workers comp funds to private insurers.
Opponents of I-1082 contend that the BIAW wants to go with private insurers instead of the state program so they can continue to use the money as they please.
