Suhanna Jens secured summary judgment against Tori Belle, an outcome that could affect numerous Washington-based distributors. This ruling stems from a class-action complaint alleging violations of Washington state law regarding non-compete agreements. Jens, a former distributor, initially received a $10,000 individual judgment in September, but the current ruling moves the broader class claim forward.
The class certified includes Tori Belle distributors in Washington who signed agreements after January 1, 2020. Jens filed her motion for summary judgment in late 2022. The aim was to resolve two key issues for separate proceedings: the exact number of independent contractors in Washington bound by non-compete clauses and whether any of them suffered damages beyond the statutory amounts requested. The motion asked the court to confirm factual allegations within Jens's complaint.
In a January 3rd order, the court affirmed several critical points. It found that Jens's earnings from Tori Belle never exceeded $250,000 annually during her tenure. The court also established that Tori Belle required Jens and all class members to sign non-competition covenants after January 1, 2020. These agreements prohibited distributors from competing with the company. Furthermore, the court confirmed that all class members earned less than $250,000 annually from Tori Belle.
The court determined that Tori Belle’s Independent Affiliate Agreement, Annie Agreement, and Amended Annie Agreement all contained noncompetition covenants as defined by Washington state law. Specifically, the agreements violated RCW 49.62.030. This statute prohibits requiring employees or independent contractors to agree to non-compete clauses without proper statutory compensation. Tori Belle allegedly failed to pay the required statutory amount to Jens and the class members after January 1, 2020. The court noted that "RCW" refers to the Revised Code of Washington, which compiles the state's permanent laws.
As a direct consequence of Tori Belle's violations, the court ruled that Jens and the class are entitled to relief under RCW 49.62.080(2). This section of Washington law dictates remedies for violations of non-compete statutes. The court also found that the plaintiff's counsel is entitled to reasonable attorneys' fees, expenses, and costs incurred during the proceedings, also per RCW 49.62.080(2).
An examination of RCW 49.62.080(2) reveals the potential damages. If a court finds a non-competition covenant to be in violation of the chapter, the offending party must pay the aggrieved person the greater of their actual damages or a statutory penalty of $5,000. This statutory penalty amount was adopted by the court. Consequently, Jens and each member of the class are each entitled to statutory damages of $5,000. Jens and the class are also entitled to their reasonable attorney fees and costs. The plaintiff and the class will submit a separate motion to the court to determine these amounts.