 The Official NCALC Newsletter North Carolina Association of Launderers & Cleaners |
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The Official NCALC Newsletter North Carolina Association of Launderers & Cleaners |
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Carolina Clean '08 From the President's Desk Less Downtime = More Profit Bill Fisher Fights Perc Ban NCALC Mentorship Program Winter Board Meeting Report Can't Never Could Great No-Cost Idea 2007 Legislative/Regulatory Honor Roll CLAE Brings Industry Execs Together NCALC Scholarship Program NCALC/DLI Member Benefits Thanks to Our 2007 Business Partners DSCA Update Don't Get Fined Member Matters Legal Briefs Avoiding Lawsuits 2008 New Member Rewards Return to NCALC Homepage
I want to say how sorry we are to Carol for the fire that destroyed her cleaners in Oxford. The bible says that I will not put upon you more than you can bear. And also there is an old saying that what does not break you, only makes you stronger. It is our hope that you come back stronger and more determined than before. It also may be a wake up call for the rest of us to make sure that we are properly insured. The church that Keith and I were married in 25 years ago burned down this past summer and was also a total loss. Unfortunately Bethany Christian Church only had enough insurance coverage for about one half of what it will take to rebuild. Take a close look at the coverage you have and make sure you don't need an update. As our economy and housing industry has slowed, I urge you to remember what we especially in our association realize that quality and customer service is what sets us members of the NCALC apart from other cleaners. Our association is constantly trying to plant new ideas in your minds, trying to persuade you or convince you to give up antiquated ideas, and get CREATIVE about business, This is the day to change, to increase our business, to improve our business, to take control of our business and look forward to a great harvest. With that said mark your calendar now for the 2008 NCALC Convention at Atlantic Beach and take advantage of the networking opportunity as you spend a wonderful, relaxing weekend with the leaders of our industry and also attend educational seminars that can and will add to our bottom line. I look forward to seeing a lot of you at our winter board meeting in Myrtle Beach and urge all of you to get involved. I want to meet you and help you and know that you can help me do a better job as your President by letting us know your major concerns about our industry and your business. Our association is committed to you and all cleaners in our state. Also summer will be here before you know it and again I'm asking you to come up with some nice, distinctive items for our 2008 auction. Our Auction committee is working hard contacting you and organizing the best auction to date. I know that I have had several exciting items donated already and hope you amaze us with your efforts. In closing, I want to thank Sto and Connie for all their hard work and dedication to our association and I also want to thank each of you for making our association the best in our industry. It is a pleasure to serve as your President. Gloria Cowell, NCALC President Less Down Time = More Profit When our plants or machines are down, our productivity is lowered and we make less profit. We also have to stand at the counter and tell our customers that their clothes, that we promised are not ready! There is lots that we can do to reduce that down time, reduce stress, and keep our customers served on time and happy. One consultant in our business refers to the senses that we have and using them to determine what is happening in our plants. We use our eyes to see which machines are beginning to malfunction, then, we can repair them before they break down. Look at how the press heads go up or down to insure that they are functioning properly. We can use our ears to listen for air leaks, steam leaks, dry bearings or any unusual noises that the machines make, then repair them as soon as possible. One of the best ways to do this is after production is finished, walk around the plant listening for leaks before shutting down the air compressor and boiler. You might hear a malfunctioning valve or a leaking air hose. These are quick fixes that can save down time during the operational day. Some operators like to do this on a non-operational day or evening when there are no other noises. Dan Honeycutt of Plaza Cleaners in Chapel Hill refers to the boiler and air compressor as the heart and lungs of your plant. Without them, your whole plant is down for hours with employees standing pouting and waiting for you to get them repaired. The rare exceptions to this are diehards, like the author, who still has a manual press in each plant, but you get the idea. We have all had our plants down before and it is no fun. Redundancy is anther way to cut down time. We have started installing two feed water pumps on our condensate return tanks. We alternate use of them periodically to insure that they are in working order. When one goes down, we switch to the other pump. We then replace the one that is bad with only a few minutes down time, not hours. Some operators, like Lindley Smith of Sno White Cleaners in Greensboro, have two air compressors. When one goes down, he just switches to the other. Lindley also has a natural gas fired generator that automatically switches on when the power goes out. He once operated for days when all others were out with no electricity after the big winter storm eight years ago. You could arrange with an equipment rental shop to supply you with either a generator, air compressor, or even boiler when your are down. Sometimes, this is covered under your boiler and machinery policy. Also, some dry cleaners that have the room install two boilers, same principle. Most cleaners keep a good supply of spare parts. The old adage of "for the lack of a nail, a horse was lost" is certainly true in our business. Keeping the parts and tools on hand to keep you running makes all the sense in the world. This could be boiler sight glasses, handhold gaskets, or an extra feedwater pump. Extra fuses for the boards of your washers or conveyor controls are another example. Simple little things that cost very little can keep you running. An extra computer, printer, or even cash drawer for your point-of-sale system helps to prevent down time.Your distributor and service technicians can advise you on which parts you might want to keep on hand reducing down time. They know what the most frequent break down causes are and which parts can fix your problem. Also, get to know other cleaners in your area, especially those that have the same equipment as yours. They can be a source for emergency repairs until you can purchase the part and replace it. Many cleaners have helped each other, when one is down, by helping with either the cleaning or shirts for another cleaner until they can get going again. One innovative distributor offers a preventive maintenance service. The technicians schedule routine service and do the suggested repairs for the cleaner who may be too busy with other areas to do there own regular maintenance. This can catch weak areas of the equipment before they fail and causes down time. Mike Robbins once taught a preventive maintenance seminar at a NCALC convention. Mike's suggestion was to take each manual and list the suggested service items on a matrix or spreadsheet. This way you can keep up with the routine oiling, greasing, changing filters or whatever items and keep a written record of when the service is performed. This is just like keeping the service up on your vehicle, just more pieces of equipment. We can't always do what it takes to prevent down time, but maybe you can improve on your operation and reduce it. We wish you a smooth operational year and the most profitable ever! Ole' Mack DLI Testifies at New Jersey
Hearing Recognizing how crucial this hearing was, DLI and NEFA turned out in force, with key testimonies also being given by NEFA Executive Director Peter Blake and by Andy Tirpok, the DLI Director from Flemington, New Jersey. A very strong presence from the Korean drycleaning community also helped get the point across. The DEP's economically irresponisble
proposal calls for a complete ban on perc by 2020 with shorter
term requirements along the way, including: Joining DLI in support of the industry were HSIA, TCATA, NCA, and NJKDA who testified at the hearing, building a strong case against New Jersey's unwarranted proposed ban and accelerated phase-out of perc drycleaning. "The industry's testimony was well-coordinated and rebuked New Jersey DEP's reasoning from every angle-the science, the economic impact, the advances in drycleaning technology, even New Jersey's own data," Fisher said. "Unfortunately, this may not be about what's right or wrong, or what is common sense but more about politics. That doesn't mean we won't keep fighting for our members and the industry." The proposed New Jersey regulation requires that existing perc drycleaners located in residential buildings switch to an alternative, convert to a drop store or close by July 27, 2009. Full elimination of all perc drycleaning is to occur by December 31, 2020. The phase-out schedule New Jersey is proposing is even more aggressive than that proposed by California. The NJDEP is accepting written comments on the proposed rules until February 15. An overwhelming number of cleaners testified before the DEP's panel. Were they listening? NCALC Board and Committees
Meet
The Governmental Affairs Committee reported that although the Committee was successful in raising its goal of $30,000 to fund NCALC's Legislative/Regulatory activities in 2007, out of pocket expenses totaled $28,411.87. Although, the committee does not anticipate any extraordinary expenses in 2008, ongoing liaison with the DSCA Program and preparation for legislative action in 2009 to reauthorize the DSCA Program will create a need for additional funds in 2008. The committee has set a fund raising goal of $30,000 for 2008.
The Trusteeship Committee reported that their annual review of the bylaws found no need for any changes and their review of the Association's finances found everything to be in order. They recommended that no changes be made in the placement of the Association's investments. They also recommended that members be constantly reminded of the Scholarship Program and the Mentorship Program in electronic communications. In other actions the Board approved NCALC's Affiliation Agreement with DLI which will govern our ongoing relationship through March 31, 2009, NCALC's Operational Budget for 2008, conducted the Annual Dues Review required by our Affiliation Agreement with DLI and their annual review of the executive director's performance. President Gloria Cowell officially appointed the Nominating Committee to recommend a slate of offices and directors to serve from the close of Carolina Clean '08 until the close of Carolina Clean 10. Anyone wishing to serve as an officer, director, or appointed committee member should contact President-Elect Simon Vick or Executive Director Sto Fox as soon as possible. A job will be found for any member who wishes to serve the Association. As is always the case more than
fifty men, women and children in attendance enjoyed the fellowship
and a couple of excellent meals together around the meeting. by Sto Fox Anytime anyone tried to use "can't" as an excuse for not performing, my dad, a former teacher and coach, used that phrase to suggest that they were already defeated by their attitude. Whether it was; we can't beat that team, can't solve this problem, can't find the time to write grandmother, or can't work any harder, that was always his retort. A couple of his other favorite sayings were "If at first you don't succeed try, try again," and "Where there's a will there's a way." My Dad faced a lot of obstacles to financial success in his life that were beyond his control. When he graduated from high school in 1930 there was no money to pay his college tuition. His father, a formerly a successful merchant, was facing bankruptcy because his customers couldn't pay their accounts. (The depression didn't just affect Wall Street). Dad was lucky, he was a talented athlete, and with the support of prominent local alumnus received a scholarship to play football at Wofford College which covered room, board and tuition. But there was no money for clothes so Dad joined the Army ROTC and wore his uniform to class every day. Young men did not dress like they do today in college. Coat and tie was the norm. To fill the gap for incidentals, off campus activities and dating he got a job carrying the campus mail. When he graduated in 1933 the depression was even worse. There weren't any jobs for new grads. The ranks of the military were full so, although he received his commission as a 2nd Lt., he could not go on active duty. Returning to his family in Dillon, S.C. he found a job stocking shelves in a grocery store for $2.50 a week. Subsequently he found employment in the Civilian Conservation Corps (CCC) where he helped build the Blue Ridge Parkway and with the replanting of coastal forest, doing manual labor and living in a tent. Finally in 1936, he found employment as a teacher and coach at a consolidated county high school in Blacksburg, S.C. By 1941, Dad had married my Mom, a local girl who had graduated from Furman University and taught in the local Jr. High School. He had become the principal of the high school where he also taught chemistry and math, ran the school store and coached all girl's and boy's athletics for the princely sum of $990.00 a year ($110.00/mo. for 10 months). Mom made $90.00 a month for 10 months so there was no income in July and August. Dad drove Coca-Cola truck during summer vacation to make ends meet although we lived with Mom's widowed mother. When the S.C. National Guard 30th Division was activated, Dad, a regular army 1st Lt. who had never been on active duty, applied for an open billet for a company commander and was accepted almost tripling his annual income to $2700.00. He spent the next five years on active duty including the last three in the South Pacific. Upon returning from the war, Dad decided a new career was in order if he planned to educate his only son. Mom's older brother, who had escaped military service due to his age, was a very successful laundryman in Burlington, N.C. Uncle Dennis saw the future potential for fast service and convenience afforded by the new non-flammable drycleaning solvent PERC and encourage Dad to take advantage of it. We moved to Greensboro so Dad could work with Uncle Dennis for a few months to get his feet wet, then he interned (worked in exchange for training) for three month's in a training plant in Charlotte where he learned to clean, spot and press. Unable to get shipment of a Perc machine, Dad hired a truck and two helpers, drove to Chicago and returned with a brand new Air Mor™ drycleaning machines and Fox Cleaners opened in downtown Greensboro in November 1947 as the first cleaners in North Carolina to offer Same Day Service and One Hour Cleaning on request. Business boomed. Dad worked ungodly hours, some nights he slept on a cot in the plant for a few hours and got up and kept going. Then in the early 50's the City of Greensboro decided that one way streets were the way to go. Suddenly, our location was not so convenient or accessible. Volume plummeted. Dad and Uncle Dennis put their heads together and came up with a plan. In 1953 we opened a 5000 sq. ft. Drycleaning & Family Laundry Plant on a major artery into town on the Northwest side of the city with a huge front parking lot which could accommodate 14 cars. In addition to retaining our downtown location as a drop store, Dad opened four dry stores in other parts of town offering same day service to feed our expanded productive capacity. Business boomed. I remember Dad's pride when statistics published in the local newspaper indicated that he was in the top 20% in income in the city in the early 60's. But competitors sprang up around
us. The City of Greensboro decided they needed to widen the road
in front of our plant by utilizing 27 feet of our parking lot
leaving us with room for maximum of four cars. The minimum wage
laws made dry stores marginal if not unprofitable. And a franchise
opened across the road on the right side of the street, with
a drive in window and giving back a silver dollar for every three
dollars you spent. Although our focus had always been on top
quality work and excellent customer service, our prices were
not out of line with our competitors, so we raised our prices
substantially, closed our drop stores, converted one of our cleaning
machines to process suede & leather and survived and prospered
until we lost the lease on our location. In order, to remain
accessible to our customer base we had to settle for a location
off the main thoroughfare that was only large enough for a call
office but did have a parking lot and a drive thru window. Unable
to find a suitable site for a combination plant and call office,
we now sublet our work to another quality plant across town and
have added residential route service. Things outside your control can
and will happen which can negatively affect your business profitability
and survival. Changes in traffic patterns, streets, etc. can
make your location less convenient or accessible to potential
customers; neighborhood demographics (i.e. income level) can
fall, competition can cut into your volume. In most cases you
cannot do anything about these changes. But you can change where
&/or how you do business. Great Alternative Use for
Your Car Alarm DLI SCHOOL OF DRYCLEANING
TECHNOLOGY 1 Week Course 2 Week Course 1 Week Course 2007 Legislative/Regulatory
Fund Honor Roll
CLAE Brings Industry Execs Together By Sto Fox
This year's conference was chaired by Chris Tebbs, Executive Director of IDC and the Alberta Textile Care Association and former head of the English equivalent of DLI. Also participating were: DLI CEO Bill Fisher, Coin Laundry Association Executive Director Brian Wallace, Textile Care Allied Trades Association Executive Director David Cotter, Steve Risotto, Executive Director of the Halogenated Solvents Industry Alliance, Richard Ehrenreich, Mid Atlantic Association of Cleaners, Carol Memberg, Pennsylvania and Delaware Cleaners Association, Barry McElveen, South Eastern Fabricare Association, Donne Eurich, Michigan Institute of Laundering & Drycleaning, David Field, Ohio Cleaners Association, Andy Stanley, Southwestern Drycleaners Association, Kenny Slatten, Western States Drycleaners & Launderers Association and me. Unfortunately some of our regulars were unable to attend this years conference due to budget restrictions or schedule conflicts such as NCA's "Brainstorming with the Best" in Mexico; however, our discussions were, as usual, lively and informative. The diverse nature of the group in terms of the geography of their membership (worldwide, national, regional, single state), business of their membership (suppliers, coin laundry owners/operators, cleaners and launders), and the broader scope the two executive directors who own and operate multi management firms that serve as executive directors and lobbyist to 20-25 associations from other industries, bring to the discussions is invaluable in obtaining a broader prospective and new ideas to improve your association's service to it's membership. The first topic of discussion
on our agenda is always "The State of the Industry".
On the drycleaning and laundering side the answer is the same
as it has been: Too many stores. Few plants are operating at
or near capacity. Plants don't close they change hands and entrepreneurs
continue to enter the industry and open additional plants in
pursuit of their fortune. The consensus was: The good news for North Carolina cleaners is that the two bright spots in the country according to our suppliers are the Southeast and Western States. These areas were rated as fair to good. All the rest were rated as poor to bad. My own experience in talking to our members across the state is that most had good to excellent years in 2007. Of course this is not the case in every town as local factors such as manufacturing plant closings in some smaller towns and the absence of large military populations in Fayetteville and Jacksonville due to Iraq and Afghanistan have certainly had an impact on business there. Although no studies have been done, it was the feeling of the group from talking with their individual members or customers that high end/high priced and lower end/one price cleaners seem to be fairing better than cleaners in between, who are the largest group by far. The reasons seem rather obvious. The high price cleaner is marketing quality and exclusivity while the true one price cleaner (i.e. any garment $1.50) is marketing price. The message from many of the cleaners in between is mixed: They normally change X but this week they are changing Y &/or the sign in the window touts 99¢ shirts. For many their biggest attraction is location, location, location and a drive thru window i.e. convenience. The bottom line is being in the
drycleaning and laundry business today is no guarantee of being
a millionaire or for that matter of being able to send your kids
to college or retire in comfort. A lot of good cleaners out there
are struggling and many are fighting for their business lives.
So who will survive and prosper
in today's market for drycleaning services? It would appear that
high end/high price cleaners will survive but there is a limited
market for those services in any geographic area and no significant
market in some areas. Only a small percentage of the population
has the disposable income to purchase the high fashion garments
that justify the cleaner's prices or are willing to and/or want
to patronize the highest price cleaner in town. For the most
part these "couture cleaners" have been in business
for many years and have established their reputation with the
fashion elite in much the same way that one or possibly two restaurants
or jewelers (not jewelry stores) have established themselves
as the place to go for special occasions or purchases. It's a
very small piece of the overall cleaning and laundering pie in
any market area. In order to survive and prosper these operations have to clean a lot of pieces. Since most of them collect for their services up front they don't lose any money from unclaimed orders and since most of them don't accept the responsibility for any failures in processing their claims are a minimum. Obviously, the demand for minimal spotting and finishing is far greater than the demand for high end/high price services but this market is subject to over saturation which would drastically affect individual operations profitability. The vast majority of cleaners price wise are somewhere between the one price, all pre-pay cleaners and the couture cleaners. We all know that our prices should be based on our cost to provide our services plus a reasonable return on our investment. This means that our business has enough money left over after paying, the rent, utilities, insurance, licenses, taxes, supplies and labor necessary to provide the services we offer to pay our mortgage, car payments, insurance, utilities, food, gasoline, clothes, send our kids to school and take vacation i.e. to make it worth while to be in business. Whereas customers expectations are defined by the prices changed at both extremes of the price structure, in the middle ground customer expectations are less clearly defined. Whereas for most people a higher price indicates a higher level of quality and service i.e. value, this is often not the reality in our industry. Some folks even believe that all drycleaning is the same regardless of price. The periodic "stain removal stings" run by local and network TV news in search of a story have unfortunately revealed the sad truth that a lot of cleaners do not remove simple stains the first time, and a significant number ruin the garment on subsequent tries. The obvious difficulty in finding a good cleaner gave birth to the Award of Excellence Program as a way for consumers to identify cleaners with the technical skill to remove common stains, who maintain their cleaning system(s) properly and are willing to display and adhere to a responsible customer service policy. If advertised this program has worked well for most of its participating cleaners. It is an excellent way to differentiate yourself from your competition. However, the bottom line is "You can't catch fish if there are no fish in the pond?" Have you checked your pond lately? Most people frequent a cleaner that is located within two miles of where they live or work. Regular users are people who wear drycleanable clothes on a daily basis. What kind of people live and work within 2 miles of your store? What Kind of bait are you fishing with? Is your store easy to get to for your potential customers? How convenient is it to do business with you? Do you have ample parking at your front door, in car service (drive-thru service), express bags, accept credit cards, monthly charge accounts, pick-up and delivery, same day service, alterations and repairs, extended hours of operation (i.e. open past 5:30 M-F, Sat. or even Sun.)? What message does the exterior and counter area of your store send to potential customers? Are your customer service personnel friendly, knowledgeable, accommodating, appreciative and professional in appearance? Is the quality of your work excellent (i.e. ready to wear)? Are orders ready when promised? DO YOUR POTENTIAL CUSTOMERS KNOW WHO YOU ARE, WHERE YOU ARE & WHAT YOU HAVE TO OFFER THAT THEY NEED? NCALC Scholarship Program As previously reported, the NCALC Board of Directors created a scholarship fund at its' spring meeting. The purpose of the program is two fold. · To provide an opportunity
for members and others to make a memorial contribution in honor
of a business associate, friend, or family member. An appropriate letter of acknowledgement will be sent to the donor as well as to the honoree. To date three contributions to the fund have been received totaling $150. NCALC members and supporters are encouraged to send in a $50 contribution in honor of a friend or loved one, living or deceased to help us get the scholarship program up and running and to remember the fund in lieu of flowers when an industry friend or associate passes away. Benefits Available Only to Members of NCALC/DLI Money Saving 2) UP TO 14% ON BANKCARD PROCESSING 3) Complete Coverage 3) FREE RETURN CHECK COLLECTION 4) CLAIMS & LOST CUSTOMERS PRICELESS · Upon request NCALC will pair you with an active or retired member to act as your mentor. Get in Compliance Now and Avoid Civil Penalties by Eric Swope The DSCA compliance inspectors are continuing outreach across the state. To date, 340 perc and petroleum facilities have received outreach visits. A common (and unfortunately reoccurring) compliance concern is that some cleaners are not utilizing DSCA's Perc Compliance Calendar. Inspectors have a copy of the calendar mail-out list to determine if a calendar was mailed for your facility and will ask you to present the calendar for review during the outreach visit. If you did not receive a calendar, please contact DSCA by email (eric.swope@ncmail.net), fax (919-733-4811) or telephone (919-508-8457) and provide the following contact information: (1) owner, (2) facility physical address, (3) facility phone number and (4) number of perc machines. If your facility does not receive mail at its physical address, please also provide the appropriate mailing address. The monthly recordkeeping pages of the calendar can also be printed from the DSCA website at www.ncdsca.org. As of January 31, 492 calendars had been mailed to 394 perc facilities. To date, DSCA inspectors have primarily performed educational outreach. However, we have begun follow-up inspections at facilities to determine if corrective actions outlined in letters sent to the cleaners following the outreach visits have been performed. If you receive a corrective action letter, you must respond to DSCA by the date indicated stating what actions you are taking to come into compliance. The next DSCA visit will be a complete inspection and any violations observed will be documented with a Notice of Violation and/or a Notice of Recommendation for Enforcement which includes a civil penalty assessment. A monetary penalty could be imposed for each violation; if you have several violations, the penalty amount could financially impact your business. As we have stated in the past, DSCA would prefer to find that cleaners are complying with the regulations to protect human health and the environment and avoid issuing penalties. It is your responsibility as the dry-cleaning business owner and operator to follow the DSCA MMPs, the air quality NESHAP rules and the hazardous waste regulations to ensure the environment is not negatively impacted by dry-cleaning operations. Please remember DSCA Minimum Management Practice (MMP) Rule #1: No dry-cleaning solvent, wastes containing dry-cleaning solvent, separator water, or contact water can be disposed in such a manner that it is discharged onto the land or into the waters of the state. Therefore, you must not dispose of wastes that contain perchloroethylene, n-propyl bromide, petroleum or high-flash hydrocarbon solvents into municipal sewer systems, storm drains, floor drains, septic tanks, dumpsters, boilers, sinks and toilets. For example, DSCA inspectors commonly observe the discharge of water containing solvent from the clothes press vacuum pump being discharged freely onto the floor or down a floor drain. This water potential contains dissolved solvents that have been extracted by the clothes press. Press vacuum pump water must be drummed or treated. There have been several facilities that have switched to n-propyl bromide (nPB) as a drop-in replacement for perc. DSCA only recommends the use of solvents that are compatible with the manufacturer's intended design of the dry-cleaning machine. We recommend that you contact the manufacturer of your machine to determine if the use of any alternative solvent as a drop-in replacement is appropriate. Also remember that the $10.00 per gallon solvent tax also applies to nPB and is required by law to be collected. If there is any change in the operational status of your store, please complete and mail the "Facility Status/Change of Ownership Notification" postcard found in the 2008 Perc Compliance Calendar. You must have all records and receipts on site at all times and accessible to inspectors. If you have a main office where invoices are routed, DSCA recommends that you retain the original receipt on site and make a legible photocopy for files at the main office. As a reminder, if your perc machine was installed on or prior to December 21, 2005, you must begin conducting monthly leak detection with a halogen leak detector in addition to the weekly/bimonthly perceptible leak detection. If you installed a machine after December 21, 2005, you should already be using a halogen detector to conduct the monthly leak check along with the weekly/bimonthly perceptible leak detection. If you have not obtained a halogen leak detector, check with your supplier or a heating/air conditioning supply store. EPA has not issued their final direct rule that will clarify the cross referencing of the 1993 and 2006 Perc Neshap rule. The correction notice has been crafted and is awaiting final review. If there is any changes that have not been accounted for in the 2008 Perc Calendar, DSCA will update you in future NCALC newsletters once the correction notice is issued by EPA. Member Matters Carol Strother, Oxford Drycleaners, got a shock before first light on Christmas Day when she received a phone call from the mayor of Oxford notifying her that the main plant and laundrymat location was on fire. The building, equipment and customer goods were a total loss. Fortunately, no one was injured. Carol had adequate insurance including unlimited bailee, a drystore across town and a fellow NCALC member, Bayard & Kyle Crumpton, Nuway Cleaners in nearby Roxboro, who was ready willing and able to keep her in business. Martin Young, Young Cleaners in Concord and one of NCALC's DLI Certified instructors has been named by The American Drycleaner to replace retiring industry icon Norm Oehlke as their spotting columnist. Look for Martin's first article in the March issue. Billy Kincaid, Consolidated Laundry Equipment Company had to return to the hospital for more repairs following back surgery. We wish him a speedy recovery. Chris Edwards, ACW Management Corporation reports that he tore his ACL while skiing but the editor suspects it might have happened when he was expressing his frustration with the fortunes of Wake Forest basketball. GET WELL BIG FELLOW. Our sympathy to John Thomas, One Hour Cleaners, Laurinburg, in the recent loss of his sister. Also to John's daughter Terri Lemmond, One Hour Cleaners, Laurinburg, in the loss of her aunt. Our thoughts are also with Rick Kane, Poyner & Spruill whose sister, a middle school principal in Charlotte, was seriously injured in an automobile accident. At last report she has been moved our of intensive care and the prognosis is positive. Connie Sugg, NCALC intrepid Administrative Assistant, became a grandmother again on January 18, 2008, courtesy of oldest son Adam and his wife Heather who gave birth to a 5lb. 11oz. boy, Cash. CONGRATULATIONS TO THE FOLLOWING: Mary A. Wells, owner of One Hour Koretizing, Inc has been appointed by Commissioner of Insurance Jim Long to represent small business on North Carolina's Health Insurance Risk Pool. House Bill 265 establishes a health insurance pool from which high-risk individuals without access to group or public health coverage will be able to purchase individual health insurance on subsidized basis. Coverage under North Carolina Health Insurance will also be available to certain other individuals who lack access to group insurance. Rumor has it that the stork will be visiting Legal Briefs columnist Julie Hampton in March. Thank You Sto Fox
A Review of the Most Infamous Case of Costly Frivolous Litigation to Date: Pearson v. Chung a/k/a The Washington D.C. Drycleaners Case No doubt all of you have heard the story of the D.C. administrative law judge (hereinafter "Plaintiff") who sued his dry cleaners for $67 million, after they allegedly lost a pair of pants that he had taken to be altered. Among the Plaintiff's damages sought were $500,000 for mental anguish and $15,000 for costs to drive to a different dry cleaner. The absurdity of the case made it seem more like a fictional story rather than what it was, a real lawsuit that was tried in front of a judge and cost the Chungs who owned the dry cleaning business over a $100,000 to defend. The only triumph in the case was that justice prevailed; the Plaintiff recovered nothing and was ordered to pay the court costs the Chungs incurred in defending the case. Unfortunately, the Chungs have not yet realized any reimbursement of those costs, since , Plaintiff gave notice of his appeal from the ruling on August 14, 2007. The lawsuit highlighted the growing number of frivolous lawsuits within our country and raised many questions. For those within the dry cleaning industry as well as all small business owners, one question is whether a customer service promise or guarantee is worth the risk of exposure. It was the job of the judge in the Chungs' case to determine the effect of the guarantee. Specifically, the question was (1) whether a sign at the Chungs' business which stated, "satisfaction guaranteed" was a misrepresentation that caused the Plaintiff to be damaged and (2) whether the Chungs' behavior in not honoring the promise implied by the sign amounted to a violation of DC's consumer protection laws which carry fines for each day the law is violated. The Court ruled that "[a] reasonable consumer would not interpret 'Satisfaction Guaranteed' to mean that a merchant is required to satisfy a customer's unreasonable demands or to accede to demands that the merchant has reasonable grounds to dispute." While the judge reached a fair and equitable result in holding that the guarantee did not entitle the Plaintiff to the recourse he desired, this justice did not come cheaply for the Chungs, as they were forced to shell out thousands of dollars to defend the case. And despite the fact that the judge ultimately ordered the Plaintiff to reimburse the Chungs for their costs, the order does not include "attorney's fees", which comprise the majority of the Chungs' real expenses. The judge has said that she'll consider ordering payment of the attorney's fees, but even if the Plaintiff is ordered to pay such fees, whether the Chungs will ultimately collect them is another question. There are lessons to be learned in every case, and the Chungs' case is no different. First, every party in a lawsuit feels very strongly about his or her own case and position, but should keep in mind that while he or she may ultimately prevail on principle, it may be very costly, particularly if the other party is litigious and determined, as was the Plaintiff in the Chungs' case. In other words and as lawyers commonly say, "you may win the battle but lose the war," so for the sake of your business, settlement should always be considered. Secondly, parties should keep in mind that it's generally easier to settle a disputed matter and keep your costs and fees down by comprising in the earlier stages of litigation. At some point, both parties have too much time, money, and emotional energy invested to justify an easy compromise. In the case of the Chungs, the Plaintiff, who represented himself and did not incur legal fees, was simply determined to move forward, regardless, and there was little the Chungs could do to stop the litigation. This fact brings me to my last suggestion: because you do not know the background of all of your customers, you must remain alert and wary of how you choose to represent yourself to them. This means carefully reviewing your policies and guarantees, and asking yourself whether they are reasonable, whether they are carried out routinely, fairly, and without regard to the background of the customer, and whether they are truly worthwhile to your business. Does the customer satisfaction promise hanging on your wall bring in new business or keep old customers coming back, or is it your customer service and general reputation for such regardless of the signage that keeps your business growing? Additionally, as mentioned in prior articles, I would encourage you to keep records of incidents with customers and also, keep your insurance up to date and informed of any and all claims, so as to keep your costs down, should you ultimately end up the victim of a frivolous suit. If you are served with a lawsuit and your insurance company refuses to handle your defense, you will need to seek the help of an attorney. Although individuals, like the Plaintiff in the Chungs' case, can represent themselves pro se, corporate entities facing lawsuits in North Carolina, with the exception of small claims suits, must have an attorney represent them. See Lexis Nexis v. Travishan Corp., 155 N.C. App. 205 (2002). Julie Hampton is a litigation attorney in the Raleigh office of Poyner & Spruill LLP. JOIN NOW! NCALC'S NEW MEMBER REWARDS WORTH MORE THAN $2000.00 · A PLANT ENVIRONMENTAL
COMPLIANCE INSPECTION In order to qualify as a new member you or your cleaners cannot have been a member of NCALC/DLI in the past year and you must pay your annual dues in the correct dues category in full with your membership application. |
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VP
of Membership Bayard Crumpton reported that although our membership
declined slightly at the end of 2007, follow-up with lost members
in January indicated that most had already or would soon be sending
in their renewal checks. The New Member Rewards Program will
continue and an active telephone contact program with existing
and potential members is planned in 2008. The Board approved
the committees recommendation that 2008 Honary Memberships be
conferred on Senator Tony Rand; Representatives Pryor Gibson,
Maggie Jeffus, and Alice Underhill of the N.C. Legislature; Edyth
McKinney & Tony Pendola of the NC DENR Small Business Environmental
Assistance Program and Dr. Nancy Cassell of N.C. State University.
The
Member Services Committee suggested that NCALC provide information
to the membership that will help them to understand their credit
card processor's statement's and compare their current cost with
the Association's program through PPC. Fall Finishing and customer
Service Seminars were well attended and well received. Plans
call for a finishing seminar in Asheville as soon as a date can
be arranged with Sandra Haralson. Carol Memberg, Barbara Harvey,
Bill Fisher and Kenny Slatten have been lined up for the Convention
so far. The Committee recommended more emphasis on membership
benefits in the Newsletter.
A
Cleaner World
The
2nd weekend in January each year a group of Executive Directors
of associations made up of companies and individuals involved
in the cleaning and laundry industry (thus the name Cleaning
and laundry Association Executives or CLAE) meet for two days
of round table discussions about our industry, our associations
and how to do a better job for our members.
A Review of an Infamous, Costly Case