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Ex-employee finds legal way out of paying judgment


ex-condo-employee.jpegOur condo association won a judgment against our ex-employee because we didn't feel she should have been paid to work 3 years ago.

The judge awarded us the wages we paid her, and now she claims rebate of wages is unlawful, and set off the court judgment by deducting the court judgment from funds she claims we owe her. She also filed a 1099c with the IRS cancelling the amount of the court judgment.

What we didn't know is that she registered her name as an Entity prior to signing the employment contract.

We were able to, with some luck, garnish her boyfriend's wages under common law (for WA state) after she gave notice of the debt setoff.

Our condo attorney won't touch it the situation, the attorney that presented the case said she has no legal standing in court or no rights to set off debt, because the judge said she can't work for pay.

As a homeowner, this is the first time I have heard about this only because they sent the wage garnishment information to my address, and have now lied and said that it was signed for.

Can we levy a special assessment to remedy the situation, or should we prepare for the worst. This person has a UCC-1 financing statement on our association, we still owe over 100,000, including late fees on work outside of her contract and $30k+ in wages.

She has threatened to file in court, and we don't know what to do. Is it common to have wages deemed conversion of funds and ordered to be returned? Can I be held liable by the actons of the officers since I am on the board of directors?

Answers (3)

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