Brandon Abbey on Behalf of Escrow.com has issued a statement in response to the recent departures of Andee Hill & 2 Other Employees, which quit last Friday to go a newly formed competitor EscrowHill.com which was announced on Monday morning.
Here is Mr. Abbey’s statement unedited (emphasis added):
“Escrow.com appreciates the inquiries and support it has recently received from its valued customers and friends. ”
” The company takes the confidential nature of its business very seriously, and we will use every means at our disposal to protect the proprietary information of our business and the earned confidence of our customers.”
” We understand that there are many choices in the marketplace, and we promise to continue our efforts to remain the most trusted and independently operated internet escrow service in the world.”
“Every employee at Escrow.com has executed and is subject to a Confidentiality, Non-Competition, Conflicting Employment, Assignment of Inventions, Trade Secrets of Others, and Non-Solicitation Agreement. ”
“We fully expect the terms of those agreements to be honored. ”
“The company is committed to maintaining the highest standards of confidence that our customers have entrusted to us. ”
“As Always, we intend to utilize every resource at our disposal in order to preserve and protect that trust.
“On behalf of all of the employees at Escrow.com, we thank you for your continued confidence, your business and your trust.”
So this is pretty interesting, seems like the ex-employees of escrow.com did sign a non-compete and other agreements with the Escrow.com which means we may not have heard the last on this issue.
Ohh, I love drama..
EscrowHill better have some good lawyers!
free advertising for escrowhill. does a non-compete extend to new zealand
“does a non-compete extend to new zealand”
…and how much money does anyone want to spend to find out.
http://www.icemiller.com/publication_detail/id/1962/index.aspx
“Surprisingly, courts have had few opportunities to address the particular issue of how the internet affects the reasonableness of a geographic scope within a non-compete provision.”
I thought non-competes were not valid in California.
Just 10 days ago I was talking about “Elbows flying” and here we are.
http://www.ricksblog.com/2013/11/rick-reviews-london-nyc-club-tattoo-sexy-web-others/
Here we go. This is the first act of UGLY. I did not dream it would be a biggie like this. But this is a biggie and everyone will have an opinion and that opinion may be the basis for business or not.
It won’t get any prettier from here. Many have millions at stake and a major ground shift is happening.
While poaching is nothing new, in a small industry like this I can not predict the fallout. It has the potential to burn as many bridges as it builds. Stay tuned!
Escrow.com is based in California and under California law non compete clauses are rarely enforced. Obviously Escrow Hill knew this or they wouldn’t flaunt the Hill name in the brand and add in the fact that EscrowHill is internationally based Escrow.com will have no chance at winning the case. Escrow.com knows this and will now attempt to smear her by releasing statements like this because it’s all they can do.
A client of mine recently had the opportunity to put the escrow.com terms of service and their domain holding agreement to the test.
In short summary, my client had purchased a domain name subject to a payment agreement, under which escrow.com took possession of the domain name during the payment term. Shortly after that, the seller received a higher offer and wanted to back out of the agreement. The seller had a bizarre interpretation of the escrow.com general terms as giving him the right to back out of the deal, notwithstanding the superseding specific terms of the domain holding agreement. Although escrow.com was holding the domain name, the seller believed that my client was somehow obligated to tell escrow.com to transfer the domain name back to the seller, simply because that is what the seller wanted. Needless to say, my client was satisfied with the deal, and did not do so.
Under the escrow.com terms, the entire affair was subject to arbitration in California, and so we proceeded to arbitration. We were curious to know the extent to which escrow.com would expend resources to participate in the arbitration and to provide its neutral position on the terms. As things turned out, escrow.com did indeed go the extra mile to appear and to provide its take on the domain holding agreement that, yes, it means that once escrow.com has taken possession of the name and performance of payment has begun, it is going to stay there unless the parties mutually agree to something else.
The arbitrator ruled in our favor and furthermore docked the seller for the entirety of costs and fees expended by my client, to the tune of somewhere north of $30K, which was deducted from the remaining payments due under the agreement.
The upshot of all this is that when you are considering an escrow service, you do want to be mindful of the relevant dispute provisions, and to consider how and where you want to wind up having to deal with a dispute that might arise under the escrow agreement, and whether the escrow service is willing to stand behind the terms of their escrow agreement.
Just 10 days ago I was talking about “Elbows flying” and here we are.
This is the first act of UGLY. I did not dream it would be a biggie like this. But this is a biggie and everyone will have an opinion and that opinion may be the basis for business or not.
It won’t get any prettier from here. Many have millions at stake and a major ground shift is happening.
While poaching is nothing new, in a small industry like this I can not predict the fallout. It has the potential to burn as many bridges as it builds. Stay tuned!
lets say hypothetically these guys offer a 40% discount over what we are used to paying.
well as the saying goes – it is not a return ON investment – it is return OF your investment – meaning you actually get paid.
So to save $100 on a $20K transaction – well I will pass –
So the real thing is what better services will they offer – and how long will it take the pure term brand Escrow.com to catch up.
No client database means starting from zero. I wish them all the best.
“No client database means starting from zero. I wish them all the best.”
That’s hilarious. She was a major player in building this company since 1999 and you think she doesn’t have a copy of the client database? Her Mom has a copy, her Dad has a copy even her Dog has a copy. Do you think McNair is investing in thin air. Come On!! She is still going through the Escrow.com files as we speak while sitting in a chair at her house. They probably don’t know how to lock her out because she probably implemented the security. LOL
Build a business in order to sell it to a bank like Chase or USBank.
Escrow services go well beyond our private little Idaho.
Will Escrow.com or Agreed.com really be getting into the home mortgage / car loan business – that is where both of those are going IMO – simply because of the domain names.
I do not see it with EscrowHill.com- for that I will take my CapitolHill.com 🙂
It is not just domains, it is artwork, vehicles, high end ticket items, which are being sold online, and worldwide. There are online pawn shops now as well, transaction volume is continuing to increase, and now was the perfect time to get in.
As for non compete in regards to the domain industry, there are big holders who do a majority of the larger sales, this knowledge is not on paper, and can be easily used against them. Swaying those users takes a lot of personal connection, and touch. I think this person was representing Escrow.com, at the not so recent TRAFFIC show, so I am sure escrow.com is in shock and awe over this recent departure.
Many people work with someone for a few years, and feel they can do it bigger or better, or want to be their own boss, it is the American Dream, or in this case New Zealand, which is a beautiful place if you ever have a chance to visit.
i would like to see a new paypal.com competitor more so than another escrow company. seems to me Escrow.com, Agreed.com, Sedo.com is enough. In Receiving smaller, immediate payments then price would matter to me , maybe 1-1.25% instead of 3.5%.
page howe
Rick gets my vote for Drama Queen Blogger of the Year!!!
@Page – It’s called Google Wallet.
Regarding the escrow alternatives, last time I checked, competition is an integral part of the American financial system, aka, Capitalism.
Sometimes you follow the candy store, sometimes you follow the candy maker. It’s all about customer choices based on user experience, efficiency and cost.
EscrowHill.com is like the new gTLDs…
it’s a website for fun, not made for real business.
no matter what, people will still do business with escrow.com just because it’s domain name is so strong!
I would do business with bad reputation Flowers.com rather than good reputation FlowersHill.com
Good Luck!!!
I wonder if a UDRP Action might be in order?
@Howard
A UDRP for using the word ESCROW for facilitating buyer/seller transactions, WOW
Your statement pretty much sums up what is wrong with this country, I see no reason why are not allowed to use a dictionary word, for performing a service that is pretty clear cut.
@todd, I don’t know the lady or anyone that went with her, but, I haven’t said they don’t have the database…did I? I don’t see a lawsuit as hilarious as all roads will lead to that point. Anyway, good luck to them (again).
#1. Rick used the term poaching.
That is what Gregg McNair is doing by financing the departure of Andee Hill and two other employees.
Remember in 2010 Tessa Holcomb left Sedo to work for PPX/DomainAdvisors.com now Igloo. Did Mr. McNair encourage her/poach her from Sedo?
How come no one is calling him out for his actions, because he is involved with a charity so that makes his hiring practices okay?
If this guy is talking to your employees, you might want to be concerned.
#2. Good for escrow.com. They should be aggressive if they believe to have a legal right to enforce a non-competition agreement and a UDRP if necessary.
#3. Is Andee Hill licensed to offer escrow services in all 50 US states? I doubt it.
#4. She goes to New Zealand? Are there a lot of potential escrow clients in New Zealand? I doubt it. So, did she go there for legal protection and/or lack of regulatory laws?
This story is just getting started.
PS, Gregg McNair’s domain company PPX International Group is apparently out of business.
As seen in news stories, the company used PPX.com and/or PPXI.com.
Neither are resolving and both have whois privacy protection.
Non compete clauses, trade secrets, confidentially agreements are one thing.
However, talking about filing a UDRP for a domain just because it includes the word “Escrow” is absurd. It is a generic word with a generic usage. No one party can claim exclusive use over that.
The term has been used in business far before Escrow.com even existed.
Brad
So Rob –
I was signed up but not able to attend this last TRAFFIC – but I have always looked at TRAFFIC as new ways to make money because I am the biggest student around.
Clearly, Rob, GGG actions might raise a brow or two – but on the other side, networking leads to new ideas and new deals – this is how agreed.com and Escrow(whatever).com have been created.
I am a big proponent of right work – as we are here in Colorado. So as far as GGG Methods of poaching – he would likely be the first to admit to it – because he can – and there is nothing wrong with it – because can. But the real story here is – does Andee Hill qualify as someone to be poached from another company for a business model that looks to be a rather uphill battle.
Bri
@Joao
“I haven’t said they don’t have the database…did I?”
sorry for calling you out but yes you did and here is the quote below and the reason I thought it was funny is because we all know very well that she got every bit of information should could compile before she left.
“No client database means starting from zero. I wish them all the best.”
“I wonder if a UDRP Action might be in order?”
I don’t buy into that one.
Like I told you the other day partner, everyone just does what is in their own best self interest and nothing will change that.
Period the end.
Nobody can control the reaction or the discussion or the freedom of other people. 50% might see it one way, 50% might see it another. I think most can see each side in this equation. The good and the bad. The hurt feelings or feelings of betrayal vs the need to prosper and do better.
I think this one was just such a big surprise since Andee seemed to be the face of Escrow.com. As a business owner I can only imagine the emotions. I have been on both sides of these so I think the word “Gut Wrenching” comes to mind and is the most fitting.
The chips will fall where they fall and folks will vote with their wallets. Friends will disagree. There won’t be any clear lines drawn. I guess we all get to watch how it plays out. The future tells all.
Escrow.com vs. EscrowHill.com
hmmmm…no brainer…Escrow.com wins!!!
Good Luck
@Todd, an Escrow service is all about Trust and Safety. I repeat that I don’t know anyone that left Escrow.com (so no emotions attached), but how can anyone Trust a service that starts its life with what appears to be a stolen database? I wouldn’t, but that’s me.
I hope that integrity rises and nothing happens at that level, but if it does, Escrow.com has the means and justification to start an ugly lawsuit. The web is all about reputation so if they have one, that coming soon page might gather a good number of emails, but not been able to use the multi million Escrow.com database it’s a pain.
Bottom line is, they can use it but they shouldn’t and if they have the so called Escrow integrity…they have a DB but they don’t. I hope I’ve explained it better.
Best,
Joao
For all you folks speculating on non-compete clauses… this is California, does not apply.
It would if the person were an actual partner in the business, but then we likely would not be having this discussion. Otherwise, in CA, no dice on non-competes. Period.