Managing your timber sale: Being sure you get paid as promised Ann Forest Burns, CF Bruce H. Williams Burns & Williams, Lawyers Seattle, WA January 31, 2004
Know what to expect How will you be paid Who will pay you How soon will you be paid
Written Contract Basics Name and address of parties Legal description of property to be harvested Term of contract Identify other parties involved in harvest Representations and warranties / indemnification Title, risk of loss, assignment Compensation Taxes and other costs Purchaser / Contractor operations Post harvest obligations / clean-up Penalties / venue / arbitration Performance security / insurance Exhibits Signatures
Before signing the contract Know who you’re dealing with Check references Talk to other landowners WFFA
Include in the contract Reporting frequency Documents to be included in reports Who is responsible for supplying documents Where do checks come from / how soon Mill split Consultant’s trust account Logging professional
During harvest Stay in touch Consulting forester Logging professional Know where your logs are going Log buyer Read the reports Compare the numbers Cash the checks
Signs of trouble Rumors of bankruptcy Slow payments Excuses Reports that don’t add up Phone calls that aren’t returned
Forestry liens Loggers liens Those who perform work of turning timber into logs, getting them to point of sale Includes “scalers, and bull cooks, and cooks, flunkeys and waiters in lumber camps” Stumpage liens Landowner who allows another to go on property and cut or remove timber
Stumpage liens Filed within 60 days of completion of work
Stumpage liens Filed within 60 days of completion of work Contents spelled out in statute Handout
Stumpage liens Filed within 60 days of completion of work Contents spelled out in statute Recorded in county where logs were cut Provide notice to logger, all purchasers
Stumpage liens Filed within 60 days of completion of work Contents spelled out in statute Recorded in county where logs were cut Enforced by lawsuit filed within eight months
Stumpage liens Filed within 60 days of completion of work Contents spelled out in statute Recorded in county where logs were cut Enforced by lawsuit filed within eight months Follows products cut from logs