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In a message dated 2/13/04 2:44:58 PM, Steve in Rhode Island writes:
HILLENBRAND INDUSTRIES ANNOUNCES AGREEMENT TO SELL FORETHOUGHT FINANCIAL SERVICES, INC. FOR TOTAL NOMINAL CONSIDERATION OF APPROXIMATELY $280 MILLION
Buyer is FFS Holdings, Inc., an entity organized by a group of financial services executives, led by Robert Devlin, former chairman, president and CEO of American General Corporation
BATESVILLE, IND., FEBRUARY 13, 2004 &endash;Hillenbrand Industries, Inc. (NYSE:HB), a leader in the health care and funeral services industries, announced today that it has reached a definitive agreement for the sale of its wholly-owned subsidiary, Forethought Financial Services, Inc. and its subsidiaries ("Forethought"), a specialty insurance holding company serving the pre-need financial services market, to FFS Holdings, Inc., an acquisition vehicle formed by The Devlin Group, LLC. Total nominal consideration for the transaction is expected to approximate $280 million, including certain Forethought assets retained by Hillenbrand. This excludes a dividend received by Hillenbrand in December 2003 from Forethought in the amount of approximately $29 million made in anticipation of the transaction. Last year, Forethought contributed approximately $347 million, or 17 percent, of Hillenbrand's $2.0 billion in total revenues.
Frederick W. Rockwood, President and Chief Executive Officer of Hillenbrand Industries, said, "Forethought over the years has delivered profitable growth. It has been, and remains, a great company comprised of great people. Despite that, there are several reasons we've announced the transaction at this time. First, managing a large insurance and financial services company is very different than managing companies that manufacture products and provide related services. Second, a financial services company is subject to a variety of outside influences, including exposure to financial market volatility &endash; and there have been times in the past that financial market volatility has masked Hillenbrand's operating results. Third, Forethought's strategic priorities and opportunities are inconsistent with those of Hillenbrand's &endash; thus separating Forethought from our other operating companies should allow management to better focus on achieving our strategic goals. It is for these reasons that our management, Board of Directors and outside advisors launched a comprehensive review of strategic alternatives and concluded that the best interests of our shareholders, customers and employees would be served by the sale of Forethought &endash; allowing us to focus our resources on future growth opportunities in the health care marketplace, and maintain our longstanding commitment to Batesville Casket Company."
Under the terms of the transaction, FFS Holdings, Inc., will acquire all of the common stock of Forethought and its subsidiaries for a combination of cash, seller financing, certain retained assets of Forethought and stock warrants. Hillenbrand will receive additional estimated cash proceeds in the transaction of between $48 and $53 million, provide seller financing in various forms with an estimated face value of $136 million, retain certain partnership assets of Forethought with an estimated value of between $90 and $95 million and receive warrants to acquire up to 5 percent of the common stock of FFS Holdings, Inc. This results in total nominal consideration of approximately $280 million, subject to adjustments. The seller financing will be subject to an estimated discount of between $30 and $35 million to reflect a market rate of return on the financing, which is expected to be recognized in future periods as accretion on the underlying financial instruments.
The transaction will result in a loss, which will also generate significant tax benefits. However, as a result of limitations on Hillenbrand's ability to utilize the resulting capital losses, tax benefits recognized in conjunction with the sale will initially be limited to ordinary losses. We expect to recognize a net loss on the divestiture of between $90 and $100 million, plus transaction fees and subject to adjustment for changes in the business between now and closing.
Stephen R. Lang, President and Chief Executive Officer of Forethought, said, "This is great news for our customers and employees. Under the umbrella of FFS Holdings, Inc., whose principals have significant expertise in financial services, we will have opportunities to further enhance the range and depth of our products and services to our customers and reach our full business potential. We will remain in Batesville and our focus will continue to be pre-need funeral planning products and services. We are excited by the prospect of working with the principals of FFS Holdings. Bob Devlin, Rod Hawes, Jr., Bill Berkley, Mike Poulos and Doug Schair represent some of the most experienced and successful insurance executives in the industry and we believe under their stewardship, Forethought will be able to continue to grow and provide its customers and consumers with excellent value. These individuals have worked with each other in various capacities for over 35 years."
Mr. Rockwood added. "Our decision to exit the financial services business does not diminish our 100 year-old commitment to funeral service. We are as focused as ever on providing innovative, high-value caskets and cremation products to funeral directors and their client families. Throughout the sale process of Forethought, it is important that customers of Forethought and Batesville Casket understand that we will honor each and every Forethought policy and all of our 'Total Casket Protection Program' commitments."
The investment banking firm of Keefe Bruyette & Woods, Inc. (KBW) and the law firm of LeBoeuf, Lamb, Greene & MacRae, L.L.P. advised Hillenbrand on the transaction. KBW issued a fairness opinion related to the transaction. The consummation of the transaction is subject to various conditions, including, financing, and regulatory and government approvals. The approvals include those of certain state insurance commissioners and the Office of Thrift Supervision. The transaction is anticipated to close in Hillenbrand's fiscal 2004 third quarter.
Forethought was organized by Hillenbrand Industries in 1985 to meet a growing customer demand for tax-advantaged, portable and competitive funeral planning products. Forethought serves funeral-planning professionals with marketing support for pre-arranged funeral services funded by life insurance policies and trust products. Its life insurance policies are offered by approximately 5,000 independent funeral home locations. In addition, Forethought manages an investment portfolio in excess of $3.3 billion that focuses on opportunities to enhance yield and improve credit quality while minimizing future risk. Forethought consists of the following subsidiaries: Forethought Life Insurance Company; Forethought Federal Savings Bank; Forethought Life Assurance Company; Arkansas National Life Assurance Company; and The Forethought Group, Inc.
Please take time to write your representative in Congress, recently the National Funeral Directors Association (a associaiton representing owners and managers in the funeral industry) helped convince congress to consider removing fair wage and hour protection from employees. What does this mean "YOU WILL NEVER EVER BE PAID OVERTIME". Please take time to click on the link below and write your representative in congress.
In a message dated 2/13/04 2:44:58 PM, Steve in Rhode Island writes:
PITTSBURGH, Feb. 13 /PRNewswire-FirstCall/ -- Matthews International Corporation (Nasdaq: MATW - News) announced today that David J. DeCarlo has been appointed Group President, Bronze and York Casket Divisions. In this role, Mr. DeCarlo will maintain direct responsibility as President, Bronze Division and will assume oversight responsibility for the York Casket business. Mr. DeCarlo has been a Director of the Company since 1987 and has been President, Bronze Division since 1993.
Joseph C. Bartolacci has been appointed Executive Vice President and President, York Casket Division. In this role, Mr. Bartolacci will assume direct responsibility for the York Casket business as well as continuing responsibility for European operations. Mr. Bartolacci joined the Company in 1997 as General Counsel and has been President, Matthews Europe since April 2002.
The Company also announced the resignation of Jonathan H. Maurer as President, York Casket Division. Mr. Maurer is leaving Matthews for a position with an unrelated company.
Matthews International Corporation, headquartered in Pittsburgh, Pennsylvania, is a designer, manufacturer and marketer principally of memorialization products, caskets and cremation equipment for the cemetery and funeral home industries, and custom made products which are used to identify people, places, products and events. The Company's products include cast bronze memorials and other memorialization products; caskets; bronze and aluminum architectural products; cremators and cremation-related products; mausoleums; printing plates, pre-press services, and imaging systems for the corrugated and flexible packaging industries; and marking equipment and consumables for identifying various consumer and industrial products, components and packaging containers.
In a message dated 1/18/04 10:53:37 AM, Steve in Kentucky writes:
VERSAILLES KENTUCKY - The dueling Clark family of Versailles ended yesterday with the sale of the Duell-Clark Funeral Chapel property to a company headed by David Clark, a member of the feuding family.
The company, 3000 Versailles Road LLC, purchased the Duell-Clark Funeral Chapel property in Versailles for $470,000 at auction in the Woodford County Court House, putting the future of the funeral business and its current operators, Don and Erika Clark, in question.
David Clark, 47, and his father, Dorsey Clark, 71, have been involved in a bitter battle against brother and son Don Clark, 41, for the past couple of years.
Among David Clark's business interests is Clark-Sunset Funeral Home, near the Woodford-Franklin County line.
In happier times, the three Clark men had worked together at Duell-Clark Funeral Chapel.
The feud apparently heated up after an agreement between David Clark and Don Clark, in which each brother would have an interest in each of the two funeral homes, fell apart.
The Duell-Clark Funeral Chapel property, owned by Dorsey Clark, a former longtime Woodford County coroner, was used as collateral for a loan, guaranteed by the three Clarks. The loan went into default, forcing the property to the auction block.
The only bidder against David Clark's company yesterday was Prestonsburg attorney Mickey McGuire, who is Don Clark's father-in-law.
McGuire said he bid on the property so that Don and Erika Clark, who live upstairs in the funeral home with their three children, could continue to operate the business.
"What this really boils down to ... is a family dispute," McGuire said after the sale. "It doesn't have anything to do with the bank. ... Each side has tried to use the bank to achieve their goals."
A small crowd, including family members and a few other people in the funeral business, gathered in the courthouse's front hallway to see David Clark bid against McGuire.
"It's been a long two years. I never thought it would come down to this," Don Clark said before the auction began.
"It's just a sad occasion," said Ed Noon, owner of Noon Mortuary Service in Lexington.
There were hugs and tears of sadness and joy when the auction was over.
"Well, it looks like you're back in business," a man in the crowd told Dorsey Clark.
"Funeral service is all about serving families. I don't understand why the Clarks can't get along and work together like a family," said Steve Ward, owner of Blackburn & Ward Funeral Home in Versailles and the current Woodford County coroner. "I have been in funeral service almost 30 years. I have never seen anything like the disagreement among the Clarks.
"There are a lot of people in this community that like Don Clark. He has been a fair competitor to me. He has serviced his families well, and we have gotten along without any major problems. If he is forced out of Versailles, my sympathy is with him, and I wish him luck in whatever endeavor he faces for himself, his wife and his children.
"I will not comment on Dorsey and David Clark."
Don and Erika Clark said they were going to explore their options.
They noted that the Duell-Clark real estate was sold and not the business itself. They also said they wanted people who have paid in advance for their funerals to be handled by Duell-Clark Funeral Chapel to know that their money is protected by law.
"We still own the business, Duell-Clark Funeral Chapel. The property that we're sitting on -- the successful bidder was David Clark, but he did not buy our business," Erika Clark said.
"I am hurt by the disagreements between me and my family," Don Clark said. "I think that they have caused not just a tragedy for me personally, but also for our entire community. It is disappointing that it has gotten to this point and could not be resolved before today."
Dorsey Clark and David Clark had no comment after yesterday's transaction.
Citizens Commerce National Bank of Versailles had been seeking $263,964.97, plus penalties and interest, from the Clarks for the loan against the funeral home property.
The money was loaned to 241 Rose Hill Avenue LLC, also known as Duell-Clark Funeral Chapel. The funeral business, but not the real estate from which it is operated, was sold several years ago. The loan from the bank was used to repurchase the business.
In December, there was a summary judgment in Woodford Circuit Court against David Clark and Dorsey Clark, and the court mandated the sale of the funeral home property.
There is still litigation pending between Don Clark and the bank.
In a message dated 1/16/04 5:13:17 PM, kmonfre@nfda.org writes:
For Immediate Release
Contacts: Fay Spano or Katie Monfre 800/228-6332
NFDA Offers Weekend Above & Beyond the Expected
Scholarship and Award Applications Now Being Accepted
Brookfield, Wis. &endash; The National Funeral Directors Association's (NFDA) Professional Women's Conference promises to offer attendees a weekend "Above & Beyond the Expected.""The event will be held April 16-19, 2004, at the Hilton Clearwater Beach Resort in Clearwater, Florida. This annual event offers women in funeral service a wonderful opportunity to network and explore pressing issues in their profession with their peers.
"As more women become funeral directors it is important to give them opportunities like this to network and share their unique perspectives," said NFDA Chief Executive Officer Christine Pepper. "The Professional Women's Conference is the premiere event at which women can hone critical skills and build a solid network with colleagues from across the country."
Bob Ash, the top rated speaker from NFDA's 2003 Leadership Conference, will address leadership by applying the enduring wisdom of one of the greatest leaders of all time, Mom! Other educational seminars offered during the three-day conference include building the skills necessary to provide families with more meaningful funerals, the ever-popular networking session, and a program on the role of DMORT in disasters.
In total, the Professional Women's Conference program is approved for 11 hours of credit by the Academy of Professional Funeral Service Practice and by most funeral service state boards. In addition to the educational seminars, this year's conference features a scholarship fundraising day trip to the Clearwater Marine Aquarium. This optional event is $115 per person.
Funds from last year's Scholarship Fund Day have been used to create a limited number of scholarships for this year's program through the Funeral Service Foundation (FSF). The scholarship funds the registration fee and provides a $250 travel stipend. Applicants must meet specific criteria to qualify. To obtain a scholarship application, please contact the FSF at 877/402-5900 or download a copy from the Funeral Service Foundation Website, http://www.funeralservicefoundation.org/scholarships/index.htm#pwc.
During the conference, an Initiative Award will be given to an exceptional woman who has made noteworthy professional contributions to funeral service. The ideal nominee is an enterprising woman who consistently takes the initiative to improve funeral service. Nomination forms are available by calling an NFDA Member Service Representative at 800/228-6332 or on NFDA's Website at http://www.nfda.org/page.php?pID=290.
The conference registration fee for NFDA members is $460 for the first person and $415 for each additional person registering from the same organization. The fee for licensed funeral directors that are not NFDA members is $610. Registration forms are available by calling an NFDA Member Service Representative at 800/228-6332 or on NFDA's Website at http://www.nfda.org/page.php?pID=290.
For more information about the conference please visit www.nfda.org or call an NFDA Member Service Representative at 800/228-6332.
NFDA is the leading funeral service association, serving more than 21,400 individual members who represent 12,486 funeral homes in the United States and other countries. From its headquarters in Brookfield, Wis., and its Advocacy Office in Washington, D.C., NFDA provides advocacy, education, information, products, programs and services to help members enhance the quality of service to families. For more information, visit www.nfda.org
NORTH CAROLINA FUNERAL DIRECTORS ASSOCIATION
919-876-7886 * 800-616-2332 * FAX: 919-876-5382
http://www.ncfda.org
E-LINE ¤ DATE: January 20, 2004
On January 20, 2004, the NC Court of Appeals ruled unanimously (3-0) in
favor of the NC Board of Funeral Service and in opposition to Crown
Memorial. (At issue in this case is defendant's pre-need sale of the ©¯Crown
Royal casket system.©÷ )
Below is the complete text of the Court of Appeals Ruling.
________________
NO. COA02-1562
NORTH CAROLINA COURT OF APPEALS
Filed: 20 January 2004
NORTH CAROLINA BOARD OF MORTUARY SCIENCE,
Plaintiff
v .
CROWN MEMORIAL PARK, L.L.C.,
Defendant
Appeal by plaintiff from judgment entered 5 June 2002 by Judge Richard
D. Boner in Mecklenburg County Superior Court. Heard in the Court of Appeals
11 September 2003.
Allen and Pinnix, P.A., by M. Jackson Nichols and Angela Long Carter,
for plaintiff-appellant.
Erwin and Eleazer, P.A., by Fenton T. Erwin, Jr. and L. Holmes Eleazer,
Jr., for defendant-appellee.
CALABRIA, Judge.
The North Carolina Board of Mortuary Science (the ©¯Board©÷) appeals the
trial court's judgment finding portions of North Carolina's statutory
distinction regarding the pre-need (See footnote 1) sale of caskets to be
violative of the due process clause and the equal protection clause of the
Constitution of the United States and provisions of Article I, Sections 1
and 19 of the North Carolina Constitution. We reverse. The Board is an
entity created under the provisions of Chapter 90 of the North Carolina
General Statutes to regulate the practice of funeral service in North
Carolina. N.C. Gen. Stat. § 90- 210.18(b) (2001). The practice of funeral
service includes, in part, ©¯engaging in making arrangements for funeral
service, selling funeral supplies to the public or making financial
arrangements for the rendering of such services or the sale of such
supplies.©÷ N.C. Gen. Stat. § 90-210.20(k) (2001). While there is no
statutory definition for ©¯funeral supplies,©÷ the pre-need sale of caskets is
a sale of funeral supplies requiring licensure by the Board under N.C. Gen.
Stat. § 90-210.67(a) (2001), which states, in part, that ©¯any person who
offers to sell or sells a casket, to be furnished or delivered at a time
determinable by the death of the person whose body is to be disposed of in
the casket, shall first comply with the provisions of this Article.©÷
Crown Memorial Park, L.L.C. (©¯defendant©÷) is licensed by the North
Carolina Cemetery Commission created under the provisions of Article 9 of
Chapter 65 of the North Carolina General Statutes. Pursuant to its
licensure, defendant is authorized to sell cemetery merchandise; however,
what constitutes cemetery merchandise is also undefined in the statutes.
Defendant, a cemetery owner and operator, sells gravesites, crypts, urns,
markers, and niches. At issue in this case is defendant's pre-need sale of
the ©¯Crown Royal casket system.©÷ The Crown Royal casket system is comprised
of two caskets. The outer or presentation casket is decorative and used
during the wake, funeral service and committal service. The innercasket or
burial container is a polypropylene casket which holds the body of the
deceased. It is not visible when inserted in the presentation casket prior
to the wake and is removed after the committal service at the time of
burial. Thus, consumers purchase only the inner burial container by choosing
the Crown Royal casket system. By retaining and using the presentation
casket with multiple inner caskets, defendant is able to reduce costs yet
provide a decorative and attractive display until the deceased is buried.
Upon full payment of the system, a consumer may take possession of the inner
casket at any time but can only use the outer casket at the time of the
wake, presentation service, and committal service.
In May 2000, the Board filed suit contending, inter alia, defendant had
not secured a license from the Board and was, therefore, impermissibly
engaged in the sale of pre-need caskets by selling the Crown Royal casket
system. Defendant alleged and the trial court concluded that the restriction
of pre-need casket sales to licensed funeral establishments and their
employees was not rationally related to the State's interest in protecting
its citizens, impermissibly discriminated against defendant, and
unreasonably deprived defendant of the right to engage in business. The
trial court concluded portions of N.C. Gen. Stat. § 90- 210.67(a) were
unconstitutional because ©¯[t]here [was] no reasonable distinction between
the pre-need sale of caskets by licensed funeral establishments and the
pre-need sale of caskets by licensed cemeteries that are willing to be
licensed for pre-needsales and to submit to regulation of such sales.©÷ The
Board appeals.
I. Substantive Due Process
©¯Under North Carolina jurisprudence, state 'due process' is governed by
Section 19 of the Constitution of North Carolina, which provides that '[n]o
person shall be deprived of his life, liberty, or property, but by the law
of the land.'©÷ Meads v. N.C. Dep't of Agric., 349 N.C. 656, 671, 509 S.E.2d
165, 175 (1998) (quoting N.C. Const. art. I, § 19). Our Supreme Court often
considers the ©¯law of the land©÷ and ©¯due process of law©÷ to be synonymous.
(See footnote 2) Id.; A-S-P Assocs. v. City of Raleigh, 298 N.C. 207, 213,
258 S.E.2d 444, 448 (1979). The Board and defendant agree that the
challenged statutory provisions are purely economic regulations which ©¯need
only satisfy the rational basis level of scrutiny to withstand both the due
process and equal protection challenges.©÷ Clark v. Sanger Clinic, P.A., 142
N.C. App. 350, 358, 542 S.E.2d 668, 674 (2001). See also State ex rel.
Utilities Comm. v. Carolina Utility Cust. Assn., 336 N.C. 657, 681, 446
S.E.2d 332, 346 (1994); In Re Appeals of Timber Companies, 98 N.C. App. 412,
420, 391 S.E.2d 503, 508 (1990). ©¯[T]he two-fold constitutional inquiry
under both the North Carolina and United States Constitutions is the same:
(1) Does the regulation have a legitimate objective; and (2) if so, arethe
means chosen to implement that objective reasonable?©÷ Meads, 349 N.C. at
671, 509 S.E.2d at 175. Under the rational basis test, the law in question
is presumed to be constitutional. Affordable Care, Inc. v. N.C. State Bd. of
Dental Exam'rs, 153 N.C. App. 527, 536, 571 S.E.2d 52, 59 (2002); Barnhill
Sanitation Service v. Gaston County, 87 N.C. App. 532, 539, 362 S.E.2d 161,
166 (1987).
With regard to the first prong, the Board asserts that the government
has a legitimate interest in protecting consumers' funds and investments in
pre-need funeral merchandise from unfair and deceptive trade practices
within the funeral industry. Widespread abuses in the pricing of funeral
services and products in the funeral industry prompted the Federal Trade
Commission (©¯FTC©÷) to promulgate regulations in the early 1980's for
consumer protection against unfair and deceptive trade practices. See FTC
Funeral Industry Practices Rule, 16 C.F.R. § 453 (2003). Primarily, these
regulations addressed certain practices by funeral providers, including,
inter alia, ©¯bundling,©÷ or charging non-declinable fees, and requiring
consumers to purchase items they did not desire to buy. Id. Because part of
the Board's statutory duties is the enforcement of FTC regulations, see N.C.
Gen. Stat. § 90- 210.25(e)(1)(j) (2001), the Board asserts there is a
legitimate governmental interest sufficient to satisfy the first prong of
the rational basis test. We disagree.
The purpose of the FTC regulations was to promote the availability of
pricing information and prevent abusive practices by the funeral industry
including bundling and the charging ofimproper fees. FTC Funeral Industry
Practices Rule, 16 C.F.R. § 453. However, the Board cannot assert the
statutory language at issue enforces FTC regulations because those
regulations do not address and are not concerned with the funeral industry's
handling of funds paid by the consumer in pre-need sales. That interest is
sufficiently distinct from the purpose of the FTC regulations to disallow
the government's carte blanche justification of regulations concerning any
aspect of the funeral industry.
The Board asserts, in the alternative, that the risks presented to
consumers' funds for pre-need funeral merchandise sales justifies
governmental regulation. Our Supreme Court has held that a business may be
regulated where there is ©¯some 'distinguishing feature in the business
itself or in the manner in which it is ordinarily conducted, the . . .
probable consequence of which, if unregulated, is to produce substantial
injury to the public peace, health, or welfare.'©÷ Poor Richard's, Inc. v.
Stone, 322 N.C. 61, 65, 366 S.E.2d 697, 699 (1988) (quoting State v. Harris,
216 N.C. 746, 758-59, 6 S.E.2d 854, 863 (1940)). Defendant sells pre-need
caskets by using a retail installment contract. Pre-need purchasers pay
either the entire amount in full or in installments. Where caskets are
delivered when needed instead of at the time of payment, the Board regulates
the sale as a pre-need sale. The Board asserts N.C. Gen. Stat. §
90-210.67(a) is justified to protect the consumer in such sales. The Board
contends this is so because ©¯any other approach puts the consumer at risk;
because, they don't have the merchandise.©÷ Generally, in installment
sales contracts, the time of performance is the time when the amount due and
owing is paid in full. However, in the installment sales contracts at issue
in the case sub judice, the actual time of performance awaits the death of
the beneficiary (See footnote 3) of the products and services to be
rendered. (See footnote 4) As a result, performance may be triggered
before, at, or years after the time the customer has paid the amount due in
full. Because of this inherent flux concerning when the beneficiary may die
(and, therefore, when the performance of the parties under the retail sales
contracts may occur), we find the pre-need sale of funeral merchandise
sufficiently distinct from other businesses to permit governmental
regulation. Moreover, we recognize the State's legitimate interest in
protecting the investments of its citizens who purchase expensive funeral
services and goods potentially years in advance of delivery. Accordingly,
the State may take reasonable measures to effectuate the protection of that
interest.
The remaining issue to be decided is whether the means implemented by
our Legislature is rationally related to achieving its legitimate interest.
The regulatory scheme applied to practitioners of funeral services includes
the following safeguards: (1) licensure pursuant to N.C. Gen. Stat. §
90-210.67(a); (2) deposit and application requirements for pre-need funeral
funds pursuant to N.C. Gen. Stat. § 90-210.61(a) (2001); (3) written,
Board-approved pre-need funeral merchandise contracts pursuant to N.C. Gen.
Stat. § 90-210.62 (2001); and (4) recordation and auditing requirements
pursuant to N.C. Gen. Stat. § 90-210.68 (2001). We find the protections
resulting from governmental oversight enabled by the recordation,
monitoring, and fund-handling requirements of this statutory scheme
sufficiently self-evident to obviate the need for further exposition or
analysis. Moreover, we note the protections extended to consumer funds on
pre-need funeral merchandise, secured by this commonly used licensing
scheme, are sufficiently beneficial when balanced against the resulting
burdens imposed on those wishing to engage in activities requiring licensure
to withstand scrutiny under the rational basis test. Poor Richard's, Inc.,
322 N.C. at 66, 366 S.E.2d at 700. Accordingly, we hold seeking to protect
pre-need consumer funds for funeral merchandise is a legitimate interest,
and the means chosen are rationally related to achieving that interest.
Defendant's remaining arguments challenge the statutory scheme on the
basis that it could be more comprehensive or better tailored to meet the
espoused goal. Alternatively, defendant contends these statutory
restrictions are premised upon an ulterior motive to protect licensed
funeral establishments from legitimate competition in an ©¯anti-consumer©÷
fashion. Both of these arguments fail. Regarding defendant's first remaining
argument, we note that, under the rational relation test, it is immaterial
whether this Court oran individual could devise a more precise or perfect
fit between the espoused goal and the means chosen to effectuate that goal.
Clark's Charlotte, Inc. v. Hunter, 261 N.C. 222, 229, 134 S.E.2d 364, 369
(1964). (See footnote 5) The two need only be reasonably related, and our
holding makes clear that they are. Regarding defendant's second remaining
argument, even if we interpret the surrounding circumstances as capable of
supporting defendant's assertion that there was an ulterior motivation so as
to make the statute otherwise unconstitutional, we would be constrained from
doing so. See Jacobs v. City of Asheville, 137 N.C. App. 441, 443, 528
S.E.2d 905, 907 (2000) (observing statutes enacted by the legislature are
presumed constitutional and will be upheld as such unless the party
challenging the legislation shows unmistakably, clearly, and positively that
it is unconstitutional); Smith v. Keator, 285 N.C. 530, 534, 206 S.E.2d 203,
206 (1974) (stating ©¯[w]here a statute . . . is susceptible to two
interpretations_one constitutional and one unconstitutional_the Court should
adopt the interpretation resulting in a finding of constitutionality©÷).
II. Equal Protection
When a governmental classification does not burden the exercise
of a fundamental right, or operate to the peculiar disadvantage of a suspect
class, [the equal protection clauses of the United States and North Carolina
Constitutions impose upon law-making bodies the requirement] that the
governmentalclassification bear some rational relationship to a conceivable
legitimate interest of government.
Barnhill Sanitation Service v. Gaston County, 87 N.C. App. 532, 539, 362
S.E.2d 161, 166 (1987) (citing State v. Greenwood, 280 N.C. 651, 656, 187
S.E.2d 8, 11-12 (1972); White v. Pate, 308 N.C. 759, 766-67, 304 S.E.2d 199,
204 (1983)). As our previous discussion makes clear, there is a rational
relationship between consumer protection and limiting the pre-need sale of
funeral merchandise to licensed funeral home directors for purposes of
monitoring how funds for such products and services are handled.
Accordingly, we hold the statutory language does not violate defendant's
equal protection rights. The judgment of the trial court is reversed.
Reversed.
Judges McGEE and HUNTER concur.
------------------------------------------------------------------------
Footnote: 1
Sales of funeral merchandise can be roughly categorized into two broad
categories: (1) at-need sales or sales upon the death of a decedent and (2)
pre-need sales which are connected ©¯with the final disposition of a dead
human body, to be furnished or delivered at a time determinable by the death
of the person whose body is to be disposed.©÷ N.C. Gen. Stat. § 90-210.60(5)
(2001). Only casket sales that are pre-need are governed by the Board.
------------------------------------------------------------------------
Footnote: 2
While synonymous and treated as such in this case, our Supreme Court
has clearly stated that ©¯Section 19 relief against unreasonable and
arbitrary state statutes [may be available] in circumstances where relief
might not be obtainable under the Fourteenth Amendment to the United States
Constitution[.]©÷ Meads, 349 N.C. at 671, 509 S.E.2d at 175 (citing Lowe v.
Tarble, 313 N.C. 460, 329 S.E.2d 648 (1985)).
------------------------------------------------------------------------
Footnote: 3
Beneficiary is intended to refer to the person for whose death the
services and products are to be provided.
------------------------------------------------------------------------
Footnote: 4
We are cognizant of defendant's claim that a purch aser of the Crown
Royal casket system is entitled to take possession of the inner casket upon
full payment; however, the system defendant sells includes not only
ownership of the inner casket, but also use of the outer casket, which
becomes available only from the time of the beneficiary's wake until the
time of the beneficiary's burial.
------------------------------------------------------------------------
Footnote: 5
We note the opinion in Hunter i s more expressly tailored to an equal
protection analysis; however, our Supreme Court made clear (by using the
analysis in the opinion to determine both the equal protection and due
process challenges) that the opinion was equally applicable to both.
In a message dated 1/20/04 5:53:31 AM, Richard in Florida writes:
West Virginia: An Elkview funeral home and its owner were sued by the Attorney General Darrell McGraw's office on Tuesday in efforts to seize $373,000 in advance contracts the business allegedly took without proper license.
Since 1994, Myers Funeral Home and the owner ignored licensing requirements on numerous occasions and continued to sell preneed funeral contracts, according to the attorney general's office. The funeral home also failed to disclose some contracts and advance payments to AG's office, Hedges said.
"They did obtain a license in 1991, but the problem was they kept letting it lapse," the AG's Office said. Funeral homes must pay $225 a year for a preneed license, he said.
After the attorney general's office investigated the business in 1994 and 2000, its owners failed to renew its certificate of authority and again ignored state warnings in 2003, according to a press release from AG's office. That prompted an audit that found 59 reported contracts and seven that were unreported, the AG said, adding that more might have gone unreported.
"It's not just a failure to submit applications," the AG's office said, "Their whole program of sales is suspect. We have to chase them down every couple of years."
Along with restitution for consumers harmed by the defendants' conduct, civil penalties and punitive damages, the suit seeks to prevent the funeral home from accepting prepayments and to seize all existing contracts and turn them over to licensed funeral homes, .
West Virginia Consumers who think their prepayments were mishandled should call the attorney general's consumer hotline at (800) 368-8808 or 558-8986.
ICFA WIRELESS January 20, 2004 Edition Vol. 5 No. 2
Federal Agencies Increase Funeral Trust, Outer Burial Receptacle Allowances for '04
FTC to Announce Top 10 Consumer Fraud Complaint Categories
ICFA NEWS
Annual Convention Offers 'How To' Ideas for Innovation
ICFA Expo Almost 90 Percent Sold Out!
Nashville Renaissance Near Sell Out
ICFA Sales Conference Reaches Largest Attendance in History
ICFAU Scholarship Applications Due February 6
Product of the Month: Preneed Sales Training Books by Eric Marmorek
---------------------------
INDUSTRY NEWS
---------------------------
FEDERAL AGENCIES INCREASE FUNERAL TRUST, OUTER BURIAL RECEPTACLE ALLOWANCES FOR '04
Two federal agencies, the Internal Revenue Service and the U.S. Department of
Veterans Affairs, have announced increases in the allowances for prepaid
funeral trusts and for the purchase of outer burial containers, respectively.
The IRS is required annually to adjust for inflation various dollar amounts
used to calculate taxable income. In 1997, a new section of the IRS code,
section 685, allowed trustees of certain trusts, known as "qualified funeral
trusts" or QFTs, to elect to pay any federal income tax in lieu of the
purchaser for earnings on amounts deposited into the trust by the purchaser.
When section 685 was first enacted through the efforts of the ICFA and other
industry groups, it limited the amounts placed into trust for purposes of the
trustee election to $7,000, but the amount was to be adjusted annually for
inflation. For amounts deposited during 2003, the maximum dollar amount per
beneficiary could not exceed $7,800 or a $100 increase from 2002. For 2004,
the IRS has increased the maximum amount by $200 for a total amount of $8,000
for this year. The IRS notice is contained in Rev. Proc. 2003-85, 2003-49
I.R.B.
The VA has announced an increase for the 2004 calendar year of its cash
allowance paid to veterans' survivors who privately purchase grave liners or
vaults for placement in national cemeteries in lieu of receptacles furnished
by the VA. The payment has increased to $154.91 for burials in national
cemeteries during this year. This amount is a small increase over the $153.15
paid for privately purchased receptacles for interments occurring last year.
---------------------------------------------------
FTC TO ANNOUNCE TOP 10 CONSUMER FRAUD COMPLAINT CATEGORIES
On January 22, the Federal Trade Commission is scheduled to announce its
third annual Consumer Sentinel State Trends Report, which includes the top 10
fraud categories for 2003. If the findings are similar to the previous year,
the FTC will claim more than 380,000 complaints, of which 218,000 involve
fraud and the remaining 161,000 complaints involve identity theft. An
analysis of the 2002 statistics indicates that 47 percent of the 218,000
fraud complaints involve Internet-related activities and the remaining 53
percent involve "other" types of fraud.
Types of complaints in the "other" category concern investments, multi-level
marketing/pyramids/chain letters, office supplies and services,
travel/vacation/timeshares, employment agencies/job counseling, charitable
solicitations, credit card issuing, real estate, scholarship/educational
grants, living trusts and viaticals, among other areas. It is significant
that no funeral-related complaints were reported.
The FTC Consumer Sentinel not only reflects complaints reported directly to
the agency but also includes complaints from more than 60 U.S. and Canadian
federal, state and non-governmental organizations. More information can be
found at the FTC web page at http://www.ftc.gov.
---------------------------------------------------
---------------------------------------------------
-------------------
ICFA NEWS
-------------------
ANNUAL CONVENTION OFFERS 'HOW TO' IDEAS FOR INNOVATION
Staid. Conservative. Rigid. Cemeteries and funeral homes are portrayed in
these terms time and time again. For firms that are looking for ways to break
out of this mold and try new, creative programs to meet their community's
needs, the ICFA 2004 Convention & Exposition, March 10-13 in Nashville,
Tennessee, will offer dozens of practical, proven solutions.
With the theme, "The Business of Innovation: Building the Future One Success
at a Time," this year's Convention will highlight pioneering cemetery and
funeral service practices from North America and abroad as well as thousands
of products and services available to help attendees anticipate and satisfy
the needs of the families they serve.
Just a few examples:
o In "Beyond Personalization: Developing a Sense of Showmanship," Funeral
Director Mark Krause will offer advice on how to "stage" ceremonies that
leave families saying "Wow, now that was a funeral!"
o In "Maximizing Your Cremation Opportunities," Richard Verrier and Jeff
Johnson will present creative disposition options and marketing techniques
designed to better meet the needs of families who choose cremation.
o In "Establishing a Foundation: Diversifying Resources for Your Cemetery,"
Michael Hutchinson, CCE, and Ed Holbrook will explain how developing an
historical foundation can generate income for special improvement and
community projects.
o In "Full Value, Full Price," Thom Winninger will share market research on
how firms can compete within their markets and generate customer loyalty
based on providing value rather than focusing on price.
o In "What's Right About Funeral Service," Todd Van Beck will take a look at
the marks funeral directors receive in the polls and offer advice on making
the most of community relations.
o In "Funeral Celebrant Training," Doug Manning and Glenda Stansbury will
show how using celebrants for funeral and graveside services can encourage
personalization and memorialization among those families who do not have
religious affiliations.
The deadline to receive the early registration discount and the hotel
Convention room rate is February 2. For a complete listing of Convention
educational sessions and to register, visit
http://www.icfa.org/ac04_earlyreg.htm or call 1-800-645-7700.
---------------------------------------------------
ICFA EXPO ALMOST 90 PERCENT SOLD OUT!
Cemetery and funeral home owners and managers will have an opportunity to
visit nearly 200 booths and table top exhibits showcasing thousands of
products and services designed to help them improve their operations during
the ICFA 2004 Exposition, March 10-12 at the Nashville Convention Center in
Nashville, Tennessee.
To date, 166 of the 184 booths and eight of the 15 table top exhibit spaces
have been claimed by exhibiting companies. Among the products to be displayed
are memorials, markers, caskets, urns, life insurance and financial products,
Internet services, maintenance equipment, vaults, cremation keepsakes and
many more.
To obtain an exhibitor's prospectus or an attendee's registration form, visit
http://www.icfa.org/ac04_earlyreg.htm or call 1-800-645-7700.
---------------------------------------------------
NASHVILLE RENAISSANCE NEAR SELL OUT
The ICFA Annual Convention headquarters hotel, the Nashville Renaissance, has
sold out of rooms outside of the ICFA's room block. This means that attendees
who make their reservations after the February 2 cutoff date cannot be
guaranteed a room or the special Convention rate.
Those who plan to attend the Convention, March 10-13 at the adjoining
Nashville Convention Center, are urged to make their reservations today by
calling 1-800-327-6618. ICFA attendees will receive a rate of $159 per night.
---------------------------------------------------
ICFA SALES CONFERENCE REACHES LARGEST ATTENDANCE IN HISTORY
The ICFA Sales Management & Marketing Conference last week in Las Vegas drew
399 attendees, the largest in the meeting's history. The Conference program
was developed by the ICFA Sales & Marketing Committee and led by Program
Co-Chairs Pat Downey, CCE, and Nicole Wiedeman.
The 2005 Sales Management & Marketing Conference is scheduled for January
13-14 in New Orleans, Louisiana.
---------------------------------------------------
ICFAU SCHOLARSHIP APPLICATIONS DUE FEBRUARY 6
The ICFA Women's Forum will present full scholarships to two selected
attendees at ICFA University, an intensive five-day educational program
focusing on specific areas of cemetery and funeral service management and
operations. The deadline to apply for the 2004 scholarship is February 6.
This year's ICFAU program will be held July 16-21 at the University of
Memphis in Memphis, Tennessee. Attendees can attend one of several "colleges"
covering areas such as funeral home management, cremation services, cemetery
grounds maintenance and operations and others.
This is the fourth year the Women's Forum has presented the scholarships,
which cover all registration fees, housing and meals. Winners are responsible
for their own travel expenses. This year's scholarship sponsors are: American
Cemetery Supply, BLP Bronze International, Christy Vault, Crematory
Manufacturing & Service, Doric Vaults, Ferno-Washington, Cold Spring Memorial
Group/Granit-Bronz/Private Estates, Matthews Bronze, Trigard and Wilbert
Funeral Service.
Additional information and a scholarship application can be obtained by
downloading it from the ICFA Web site at
http://www.icfa.org/pdf/icfau04_scholarship.pdf or by calling 1-800-645-7700.
---------------------------------------------------
PRODUCT OF THE MONTH: PRENEED SALES TRAINING BOOKS BY ERIC MARMOREK
For the month of January, the ICFA is offering savings on a set of three
classic books by Eric Marmorek, one of the founding fathers of preneed
marketing.
In "The Art of Getting an Interview," Marmorek discusses what to do once
you've segmented your market and located your sales prospects. You will learn
how to schedule qualified appointments, effective listening techniques, the
art of effective communication and how to interview.
"Tools and Techniques of Persuasion" is a must-have for every preneed sales
program, offering a realistic view of the role of persuasion in the ethical
and successful sale of cemetery property. Verbiage, actions and symbols are
all treated as components of effective persuasion. Included is a glossary of
specialized terms used by experienced sales counselors.
"The More Objections the Better," an ICFA best-seller, is a definitive
treasury of ideas, formulas and techniques for handling the objections
frequently encountered by preneed counselors. Three comprehensive sections
cover 295 responses to the most frequently raised objections to the
before-need purchase of memorial property and funeral arrangements.
Regular price for all three titles: $18; January Price: $10! (Shipping is
additional.) To order, call 1-800-645-7700.
---------------------------------------------------
---------------------------------------------------
AND MORE . . .
Owners, managers and superintendents of cemeteries of all types and sizes
will gather for the ICFA Cemetery Operations & Maintenance Conference, July
16-19 at the University of Memphis in Memphis, Tennessee. The conference is a
low-cost, high-content meeting offering 2.5 days of programming, including
"how to" presentations on a variety of cemetery operational issues, a tour of
a local cemetery and several networking events. The conference will be held
concurrently with the 2004 session of ICFA University, providing
unprecedented access to a wide variety of instructors and excellent
networking opportunities. For more information, visit
http://www.icfa.org/cem_op_2004_pr1.htm.
The ICFA and Gary O'Sullivan, CCE, have released two new preneed sales
training CDs. "The Fundamentals of the Sales Process" offers important
lessons on the eight fundamentals of selling, covering topics such as
prospecting, objections, closing, referrals, handling rejection and more.
"Selling on Purpose" helps counselors and sales managers define the greatest
motivational force of all -- their purpose. Topics include understanding the
difference between selling as just a job and as a career, ethical challenges,
the relationship between service and sales and more. The price per CD is $20
for ICFA members and $25 for non-members. To order, call 1-800-645-7700.
The ICFA has created a set of four brochures offering "Straight Answers to
Real Questions" for consumers. Cemeteries and funeral homes will find the
brochures an effective way to reach out to potential customers and educate
them about the importance of ceremony, memorialization and prearrangement.
The brochures cover "Cremation," "Cemeteries & Burial," "Funerals" and
"Advance Planning." The brochures are adapted from the Consumer Resources
section of the ICFA Web site at http://www.icfa.org/consumer.html . For
pricing information and to order, call 1-800-645-7700.
The ICFA and The Transaction Group of Chicago, Illinois, offer members a
credit card processing program with a special low discount rate of just 1.6
percent. This new benefit makes it less expensive for cemeteries, funeral
homes, memorial designers and related businesses to accommodate customers who
wish to pay via credit card. For more information, visit
http://www.thetransactiongroup.com/partners/icfa/ or call The Transaction
Group at 1-800-622-7705.
The ICFA News Page at http://www.icfa.org/newspage.htm takes you to sources
throughout the world for industry news and updates. It brings you the most
comprehensive selection of funeral service and cemetery news available
anywhere, along with frequently updated general news items related to
national and world events. The News Page reports the news before anyone else
and is the second most visited page on the ICFA Web site. Stop in each day
and you'll see why.
The ICFA Internet Expo at http://www.icfa.org/expo/index.html is the largest
online exposition in the cemetery and funeral service industry. Cemetery and
funeral home owners and operators will find more than 300 providers in over
100 product and service categories at the Expo. Exhibit space is provided as
a free, exclusive benefit to all ICFA supplier and professional members.
Check it out today!
Need a labor relations and employment law attorney? Check out ICFA's benefit
program offering free telephone legal consultations at
http://www.icfa.org/pepperman.htm .
---------------------------------------------------
International Cemetery and Funeral Association
1895 Preston White Drive, Suite 220
Reston, VA 20191
1-800-645-7700
(703) 391-8400
fax (703) 391-8416
http://www.icfa.org
We have an unusual situation for the ICFA Annual Convention in Nashville this
year. Not only is our room block close to selling out, but the hotel, aside
from our room block, is sold out. We even went online to try to make
independent reservations on the Renaissance Web site and at this time there
simply are no rooms available to the public.
It is very important to us that we can accommodate all the attendees that
want to come to our Convention and we need your help now. Please reserve
your rooms immediately from the hotel by calling 1-800-327-6618. If you help
us by making your reservations now, we have a better chance of negotiating
some extra rooms at an alternate location to accommodate our overflow.
As soon as you reserve your room, the hotel will notify us so we can secure
your Convention reservation immediately.
For additional information on the ICFA Convention & Exposition and to
download a registration form, visit http://www.icfa.org/ac04_earlyreg.htm or
call the ICFA at 1-800-645-7700.
Thank you for your help and see you in Nashville!
Joseph W. Budzinski
Internal Chief Operating Officer
International Cemetery and Funeral Association
Dear Friend of Foresight,
Although you missed our Hawaiian getaway, there is still time to get a way with earning 20 Continuing Education Credit hours in our Las Vegas (February 23-25) or Scottsdale (February 29-March 5) Winter Seminars!
Dan Isard and Curt Rostad have teamed up again to deliver 20 hours of continuing education that will provide you with practical applications that you can immediately customize for your funeral home to help you achieve maximum business returns for you, your family, and your community. This year's seminar will feature the following topics:
~Expansion by Acquisition or Development
Planning for the Present and the Future
~Human Resource Matters
Employment Agreements, Employee
.......Handbooks and Procedures Manuals
~Employee Benefits That Work
Retirement Planning, Health Insurance Plans,
Bonus Plans, and Time-Off / Over-Time Policies
~Merchandise Techniques That Increase Your Profit
Show-Rooms, Consumer Spending Step Plan,
........CPL's, How to Chose Merchandise that Will Sell,
Vendor Deals, Inventory Turns, Consignment vs. Purchase
~The Methods to Make Your Preneed Program Profitable
Preneed Paradigms, How to Get More Sales,
........Insurance vs. Trusts, Creating Your Own. Insurance Company,
Managing Your Own Trust, How Many Preneed Sales-People to Hire
No matter which location you select, the twenty hours of Continuing Education topics remain the same, so you can't go wrong by choosing to attend one venue or another. In Arizona, seminars are conducted over five mornings with afternoons left open for your personal pursuits. In Las Vegas, we will cover all twenty hours of material in two full plus one half day.
Registration fee in Arizona includes Welcoming Reception for seminar registrants and their guests. The Embassy Suites Hotel serves a cooked-to-order breakfast in their dining room and we will have a continental breakfast in our seminar room for those who choose. Registration fee in Las Vegas includes Continental Breakfast for seminar registrants plus a lunch coupon.
We encourage you to join us at one of the two remaining seminar locations this winter. Dan promises fresh anecdotes and insights, and Curt can always be relied upon for providing the funeral director's perspective.
If you would like registration materials, please go to our web page www.f4sight.com and download the appropriate forms. If you would like me to mail or fax them to you please give me a call at 800-426-0165.
Cate Gordon
Seminar Coordinator
The Foresight Companies TM
6520 N. 7th Street
Suite 200
Phoenix, AZ 85014
Phone: 602 274-6464
Fax: 602 277-6722
cgordon@f4sight.com
NFDA Announces Professional Development Schedule
New Seminars Focus on Business Building & Technical Skills
Contacts: Fay Spano or Katie Monfre 800/228-6332
For Immediate Release
Brookfield, Wis. &endash; If your New Year's resolution includes discovering innovative ways to meet consumers ever-changing needs and enhancing your technical skills, then look no further than the National Funeral Directors Association (NFDA). NFDA's 2004 Professional Development programs offer top-notch skill-building opportunities and flexible programming on a full array of key funeral service topics.
"NFDA understands that the funeral homes we serve have a variety of educational needs and different levels of resources at their disposal," explains NFDA Chief Executive Officer Christine Pepper. "That's why NFDA covers a wide range of key topics through conferences, seminars, teleconferences, homestudy, and online learning throughout the year. This gives each funeral home an opportunity to find the ideal combination of educational opportunities to meet their business and training goals."
New Seminars Offer Focused Approach
This year, NFDA's seminars are covering two new important areas, Business Building and Technical Skills. NFDA's Business Building seminars address changes and trends in the profession and arm funeral directors with the necessary skills to be successful in the future.
"Exceptional Events: A New Frontier for Funeral Service" draws on similar strategies and tactics used by event planners to enhance a firm's level of service, regardless of if they are planning an extra-special event or something they do everyday. The Technical Skills seminar, "Embalming, Reconstructive Surgery and Cosmetology Techniques," features Vernie Fountain, Fountain National Academy of Professional Embalming Skills and John Sinatra, Ethereal Cosmetics. This seminar is an excellent opportunity for funeral directors to enhance their embalming expertise.
For the most up-to-date information on when and where both the Business Building and Technical Skills seminars will be available visit www.nfda.org/continuingeducation.php or contact an NFDA Member Service Representative at 800/228-6332.
NFDA's annual conferences offer an opportunity to take part in several days of seminars and workshops focusing on a specific area of interest. NFDA's conferences include:
Professional Women's Conference, Clearwater, Fla., April 16-19
Advocacy Summit, Washington, D.C., March 16-17
Leadership Conference, San Diego, Calif., July 25-28
Teleconferences Offer Cost Effective Alternative
NFDA's interactive teleconferences are simple to schedule, cost effective, and convenient for all-staff training. Each teleconference is approved for two hours of continuing education credits by the Academy of Professional Funeral Service Practice (APFSP) and most state boards. The 2004 NFDA Teleconference Schedule is as follows:
FTC Funeral Rule: 2004 Update &endash; March 4, 2004, 1-3 p.m. CST
Advanced Cost Savings for Small Businesses &endash; May 6, 2004, 1-3 p.m. CST
Handling EPA & OSHA Enforcement Issues: 2004 Update &endash; July 15, 2004, 1-3 p.m. CST
Advanced Cost Savings for Small Businesses &endash; September 9, 2004, 1-3 p.m. CST
OSHA: Communicable Diseases &endash; November 4, 2004, 1-3 p.m. CST
Teleconference registration information is available online at http://www.nfda.org/page.php?pID=82 or by calling an NFDA Member Services Representative at 800/228-6332.
Additional Professional Development programs may be added throughout the year. Visit NFDA's Website at www.nfda.org for the most current information.
NFDA is the leading funeral service association, serving more than 21,400 individual members who represent 12,486 funeral homes in the United States and other countries. From its headquarters in Brookfield, Wis., and its Advocacy Office in Washington, D.C., NFDA provides advocacy, education, information, products, programs and services to help members enhance the quality of service to families. For more information, visit www.nfda.org.
EDITORIAL COMMENT - NFDA has a beautiful facility in Brookfield, WI (just outside Milwaukee) I don't know why they don't take advantage of it for more stuff.
###
In a message dated 1/27/04 8:18:21 PM, Dean in Florida writes:
Interesting emails back and forth from a concerned party and Batesville
casket company:
==========================================================================
Date: Thu, 10 Jul 2003 13:35:07 -0700 (PDT)
From: "************************************>
Subject: Bill-To/Ship-To
To: mike.dibease@batesville.com, joe.weigel@batesville.com
Mr. Weigel and Mr. DiBease,
Thought you would find this interesting how A********* Memorial Centers,
Inc. uses the bill-to-ship-to method to aggravate Batesville customer
funeral homes by forcing them into ordering the casket they havent sold.
Why should a Batesville customer have to order a casket for another
funeral home that sells caskets online to the general public???
A************ Memorial Centers is NOT a funeral home but merely an
information call center to sell caskets online! A******** Memorial Centers
actually is an alternative low price funeral entity created by The ********
Family Funeral Home in Hollywood, Florida.
A********** MEMORIALCENTERS&r5=
A************* Memorial Centers does not have it's own chapel or free
standing funeral home like the ******** Family Establishment but rather an
information P.O. Box and some yellow page adds.
Why was this "non funeral establishment" type of setup given a
Batesville casket account?
Sales made from www.****************memorialcenters.com fall under a
Batesville account that was created for this non funeral establishment.
Batesville's policy clearly states that casket accounts were only
opened for licensed funeral directors operating Real Establishments and not
P.O. Box information centers that really are only selling caskets on the
internet and harassing funeral homes all over the country to do their BILL
TO SHIP TO's!
If you want this to stop, do away with this outdated and overly abused
system of billing!!
The following is a link to their site:
www.*****************memorialcenters.com
Batesvilles reply:
This message is not flagged. [ Flag Message - Mark as Unread ]
Date: Wed, 30 Jul 2003 09:53:37 -0700 (PDT)
From: "Zane Smith" <fundir1971@yahoo.com>
Subject: Re: Ship-To/Bill-To
To: Joe_Weigel@Batesville.com
Joe_Weigel@Batesville.com wrote:
I want to take this opportunity to address the misconceptions
you might have regarding A************** Memorial Center and our sales and delivery
policy.
As you know, we sell and distribute our caskets to
state-licensed funeral professionals who operate state-licensed funeral
establishments. This policy reflects the relationship between Batesville
and our valued customers and is the backbone of our business philosophy.
It is our understanding that A************* Memorial Center operates
a funeral service facility, as well as a website. As you have noted,
A************* Memorial Center is associated with *********** Funeral Home. Boyd has
been a customer of Batesville Casket for a number of years. Apart from that
association with ************* Funeral Home, however, A ************* Memorial Center's
facility has been licensed by Florida's funeral board and is operated by a
funeral director licensed by the Florida funeral board. By satisfying these
criteria, A************* Memorial meets the requirements of our sales policy.
As for Batesville's ship-to bill-to policy, it has been our
standard practice to have the receiving funeral home call us to order the
casket. We will not deliver the casket in these situations unless the
receiving funeral home contacts us, instructs us to deliver the casket and
finally to bill the original (ordering) funeral home location. Among other
things, our ship-to bill-to policy ensures that we do not become a delivery
service for third party sellers who are not a licensed funeral home.
We welcome the opportunity to discuss this matter further with
you. Please don't hesitate to contact Mike DiBease or me should you have
further questions regarding our sales and delivery policy.
Joe Weigel
812/934-1610
Zane Replies:
Mr. Weigel,
Thank you for responding to the email that was sent to you and funeral
homes all across the country. Based on your response I would like to clear
up some misconceptions that you have about our letter. You seemed to have
avoided the real questions and given your canned corporate plausible
deniability speech instead.
A************* Memorial Centers as you stated is licensed in the state of
Florida as a funeral establishment.
However what we are trying to point out is that it is not truly an
existing brick and mortar establishment. There is no building, only a small
300+ square foot office that does not even reside on the ************* Family Funeral
Home property. A************* Memorial Centers was created by the Boyd Family
Funeral Home in an effort to sell low cost funerals and cremations under a
different entity separate from their long standing existing funeral home
establishment.
Yes, A************* Memorial Centers is a licensed funeral establishment,
but only on paper.
The A************* Memorial Centers website even shows a P.O. Box in Fl.
Is this where the Funeral Establishment exists? Don't think so!
The state of Florida has the funeral establishment address listed under one
of the actual B************* Funeral Home locations, which by the way does not have
any signs saying A************* Memorial Centers.
The two websites they operate have two separate prices for caskets all
while using a Batesville casket account purely to sell caskets on the
internet at EXTREMELY low prices.
http://www.a*************memorialcenters.com &
(Average Pricing Structure)
http://a*************memorialcenters.com
(Way below Average Prices)
They utilize the Ship-to/Bill-to as a way of getting their caskets
delivered nationwide using your own Batesville trucks. Contrary to your
statement "our policy ensures that we do not become a delivery service for
third party sellers" in fact that is what you have become.
Everyday they call funeral homes all across the country and use
Batesville's delivery policy to hold funeral directors hostage and force
them to call your warehouse to order caskets that the receiving funeral home
HAS NOT SOLD! Without your Ship-to/Bill-to policy they would never be able
to sell caskets at these prices or for that matter deliver them overnight
for free.
Why did the ************* Family Funeral Home not just use their existing
Batesville account to do Ship-to/Bill-to? Did anyone at Batesville ask this
question?
Another interesting piece of information is that the individual
answering the phone for these websites is not even a funeral director, but
rather the owner of another site http://*************stores.com that Batesville
had threatened with a lawsuit if they did not remove pictures of Batesville
caskets. Now they are doing business as http://*************casketstore.com,
which by the way claims to offer Batesville caskets at the guaranteed lowest
price in the country. Go ahead and call the two sites above. You will notice
that the person answering the phone is the same as the person answering
A ************* Memorial Centers website.
Even the person that calls funeral homes nationwide to have the
Ship-to/Bill-to take place does not even use his real name. When he calls a
funeral home to force them to order caskets he uses an alias. Why does he
not use his real name? Surely he should use his real name not Bob ************* !
His real name is Star *************, but I would think you already know that.
Is this what Batesville envisioned when they opened a casket account
for A************* Memorial Centers? I don't thinks so, but this is actually and
factually what is taking place.
As we continue to send out these emails I am sure funeral directors
nationwide will agree that the Ship-to/Bill-to policy is providing companies
like A************* Memorial Centers with the vehicle they need to operate
profitably while offering caskets at extremely below market prices.
It is very obvious what is taking place here. We don't seem to think
you really care about what your customers are being subjected to by A *************
Memorial Centers. Only time and the truth will tell.
If you need more information please reply and it will be provided to you.
MORE
I asked Batesville's Joe Weigel for a comment on the above, here is what he wrote back
John ? as we explained to Mr. ************* last summer, it is the policy of
Batesville Casket Company, Inc., to sell and deliver our caskets only to
funeral professionals who are state licensed and operate state licensed
funeral establishments, or, in the absence of state licensing requirements,
to full service funeral establishments offering both funeral goods and
funeral services in conformance with state law. The entity to which Mr.
************* refers in his correspondence regularly arranges funerals at this
facility and has been licensed by the Florida Funeral Board as a funeral
establishment and is operated by a funeral professional, also licensed by
the state.
Mr. ************* also takes issue with our ship to/bill to policy. This policy
has been set up so the receiving funeral home must call the CSC and place
the order. We do this to prevent fraudulent behavior by casket stores and
Internet sellers who represent themselves as a funeral home over the
telephone.
Of interest to your readers may be what has transpired since last July when
Mr. ************* and I exchanged correspondence. In February 2003, a lawsuit was
brought against Batesville and other funeral service companies for refusal
to sell funeral products to a non-licensed retail establishment. Last
month, the judge in the L&K Casket Sales v. Batesville Casket Company case
dismissed the case with prejudice. What this dismissal conveys is that the
judge found no basis for the case. Further, the judge found that our
policy of selling only to licensed funeral directors operating licensed
funeral homes does not violate Section 1 or 2 of the Sherman Act.
John, as you know, the Sherman Antitrust Act, based on the constitutional
power of Congress to regulate interstate commerce, declares illegal every
contract, combination (in the form of trust or otherwise), or conspiracy in
restraint of interstate and foreign trade.
This is a historic ruling since we believe it represents the first time a
judge has ruled that our policy of selling and distributing only to
licensed funeral directors who operate licensed funeral homes does not
violate the Sherman Antitrust Act. It also demonstrates the lengths to
which we go to remain consistent in our policy of selling only to licensed
funeral directors who operate licensed funeral homes. . . and how zealously
we defend this policy.
As always, John, we appreciate the opportunity to inform your readers of
what's happening at Batesville Casket.
Joe Weigel
Director of Communication
Batesville Casket Company
joe.weigel@batesville.com
In a message dated 1/30/04 7:05:39 PM, Judy in New Hampshire writes:
John after last weekends chat, we had a staff meeting and I convinced the staff: people do check our casket prices on the intnernet, our biggest surprise was a search on google! There we typed in the word CASKETS up comes our Favorite Batesville Caskets, we click on that and there it is an internet casket store, selling our caskets, at an eye opening price, we learn something every day thanks for keepping the chat going
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In a message dated 12/12/03 5:57:09 PM, Bill in Texas sends us:
http://www.ticz.com/homes/users/bob/On-A-Rock/On-A-Rock.htm
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In a message dated 11/25/03 12:06:36 AM, Mike Flynn in Boston Massachusetts sends us:
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Enduring the tests of time at the Lima Funeral Home
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