aloa.org May 2024 Keynotes 11 SPOTLIGHT LEGAL I N A RECENT COURT CASE, A dispute between two locksmiths — one an ALOA member and the other not — brought to light the potential pitfalls of longstanding verbal agreements in the locksmith industry. This case, adjudicated in the Circuit Court of Dane County, WI, underscores the importance of clear, documented agreements over verbal understandings, especially when it comes to the owner- ship and use of business assets. The member, a seasoned locksmith with over four decades of experience, found himself in a legal battle over the possession of several key-making machines and other equipment he had placed at the business premises of a friend. The member, who had operated as a mobile locksmith and occasionally collaborated with the friend, claimed that the equipment was loaned, not gifted, to the friend’s business for mutual benefit. The friend, on the other hand, contended that the equipment was a gift, integrating it into his business opera- tions over the years. The crux of the dispute revolved around the lack of formal documentation to substantiate the terms of their agree- ment. The member’s reliance on verbal agreements and the goodwill between the parties led to a complex legal challenge when the relationship soured. To deter- mine ownership and intent, the court had to meticulously examine evidence, including emails, repair invoices and the registration of the equipment. The Ruling The ruling favored the member, high- lighting a crucial lesson for professionals in the locksmith industry and beyond: the significance of maintaining clear, written records of business transactions, especially when it comes to the owner- ship and use of shared or loaned equip- ment. The judge’s decision underscored that while verbal agreements may hold weight, documented evidence provides a more reliable basis for resolving disputes. This case serves as a potent reminder of the potential negative outcomes of relying on informal agreements in business rela- tionships. It emphasizes the legal process’s role in adjudicating disputes based on the available evidence, often favoring parties with diligent record-keeping practices. For locksmiths and other professionals, the message is clear: Clear, written agreements and meticulous record-keeping are not just best practices but essential safeguards against future legal entanglements. Tom Ripp, ICPL, ICML, registered the WaunaKey trademark in September 1979 in Waunakee, WI. He has experience as a service technician sole proprietor, in-house locksmith and as man- ager of ADC Lock & Key. He’s a member of ALOA SPAI and serving a third term as North Central Regional Director. He’s active on ClearStar Security Network, has mentored several people and served as ILCP chairman of Institutional Locksmiths Association. Get It in Writing Tom Ripp, ICPL, ICML, discusses the legal implications of verbal agreements in the locksmith industry. Here is a Best key-making machine and other items from the dispute. Make sure you have formal written agreements when lending tools and equipment.
