Banking Law

In January, California appraiser Jeniffer Wertz sued Washington Mutual, alleging that she was removed from Wamu's "preferred appraisers" list, allegedly because she refused to knuckle under to a Wamu sales manager's demand that she change a neighborhood value classification on an appraisal from "declining" to "stable." In a subsequent post on another appraiser "whistleblower" lawsuit, this one against Countrywide, we speculated about such cases settling before trial, and the prospect that the facts might never be revealed in open court.

I wonder how many of these suits will settle before trial? I'd like to see the facts come out, publicly, but that's easy for me to say. I'm not footing the bill for, nor suffering the brain damage of, civil litigation in which I have a personal stake. My guess is that these suits will be settled, money will be paid, and confidentiality provisions will be incorporated into the settlement documents. That might be the cynic in me talking, however.

Unfortunately, the cynic in me proves prescient, again.

Appraisal Scoop has learned from Jeniffer Wertz that . . .

"The case has been settled to mutual satisfaction of the parties."

As is usually the case in these instances, that's about ALL that any of the parties can say.  I'm guessing that the amount of settlement and the terms of the agreement will be sealed by the court.

I don't fault Ms. Wertz for settling, for the reasons I set forth above. She showed gumption by filing the lawsuit in the first place, and making it public, where the main stream press and itsy, bitsy blogs like this one passed around the word that something might be rotten in Seattle. It's not her job to carry the entire appraisal industry on her back. It's her job to pursue a claim until she feels that she's been made whole for the damage done to her, or at least has been made as whole as she and her legal counsel reasonably conclude is possible under the circumstances (including the costs and risks of litigation).

Some appraisers saw it differently. In the comments box to the post on the settlement at Brian Davis' blog "Appraisal Scoop.com" that is linked to above, Jeniffer was vilified by certain commenters, including this gem:

This is an example of how easily money will turn a person with conviction, into a person of greed.

The only way for "appraisers" to have won, is for a full trial that ultimately ended in a ruling that stopped pressure on appraisers to write the report the commissioned client prefers.

Ms. Wertz commented that confidentiality obligations imposed upon her by the terms of the settlement agreement (a common restriction) prevented her from defending herself from such speculations, but that such allegations made her "heartbroken." My response to such unfounded snark might be to (a) ask the ignorant commenter how much he or she had laid on the line, reputationally or financially, in connection with Ms. Wertz's lawsuit, and (b) tell him to stick his opinion where the moon don't shine. Brian Davis and many other commenters rushed to Ms. Wertz's defense with more eloquence although no less force.

The cluelessness of some of the people you encounter in the blogosphere still has the ability to amaze me at times. Some people not only don't get it, they don't get it that they don't get. Perhaps the final word of the final commenter was correct: "Maybe those posting feeble attempts to discredit Jennifer Wertz are working for the enemy?" If so, they shot themselves in the groin.