My (Bob) Norwood Experience | Page 9 | FerrariChat

My (Bob) Norwood Experience

Discussion in 'Ferrari Discussion (not model specific)' started by Russ Gould, May 23, 2018.

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  1. Russ Gould

    Russ Gould Formula 3

    Nov 8, 2004
    1,073
    Chapter 9: A/C woes

    After my aborted test drive around the end of Sept I left Bob to work on putting in some seat belt anchors so I could safely drive the car, getting the motor to run properly, ensuring the brakes were good, and getting the a/c working. There was a small list of minor items that needed to be taken care of but I told Bob I would do these myself, as I had given him a limit of $50K on the project. I needed him to get the car to the point where I could safely drive it home and that was it. During this time he informed me that the motor would have to come out to put the valve timing back to spec. to fix the idle problem. I told him there was no money in the budget, the $50K was firm, and that if that was indeed the cause of the problem I would live with it until the next major at which time the valves would need adjustment anyway. So he could take that item off the list and work on the other items. (It wasn't until much later that he retracted the valve theory and advanced other theories as to why the idle was problematic, more on that later.)

    As far as the brake bias, I did some research and determined that there is indeed a proportioning valve in 308s and I even sent Bob a photo of the location of the valve, hoping that he could make a simple adjustment to deal with the imbalance problem. He did not respond so I assumed that was taken care of.

    He found one seat belt anchor (driver's side) but could not find the other side. I told him to leave it at that as I had found that DeLorean anchors would cross reference and there is an outfit (in TX) that specializes in DeLorean bits and they had them in stock. So that came off the list as well.

    That left the A/C. The motor that came with the car had it's a/c compressor intact and the guys had run all new a/c lines to the front of the car when they put the motor in. They also removed and replaced the dryer. I assume it would be a relatively simple matter to hook everything up, charge the system, and run it. Apparently not. Bob informed me that he replaced everything including the remaining hoses and the system was still not working, thus I would need a new compressor. I resigned myself to this final piece of bad news and told him to go ahead.

    In early November, almost a year after buying the car, Bob told me it was ready to go. I made plans to pick it up in the latter part of November in conjunction with a trip to DFW to meet my son who was in his final year in college and would be visiting for Christmas. The plan was to drive over, have my wife drive the Ranger back, and I would lead in the Ferrari so that if anything broke I would not be stranded.

    A couple of days before the planned trip, I received the final flurry of invoices. I gave them a cursory look and noted that there was labor mixed in with parts which made the calculation of the final settlement messy. Also I did not have revised copies of some of the earlier invoices that Bob promised to fix to address "errors" that I had brought to his attention. So I asked Bob to get all the invoices up to date, to scrub them for errors (as I had previously requested since there were some errors and questionable charges in the early invoices), to get his accountant to segregate the labor from the parts, and to have all the invoices ready when I got there so I could settle up. I checked the weather the night before and noted that it was supposed to rain, but clear up late in the day. So I emailed Bob to be sure that the wipers and lights were working as this would be a night drive.

    The next morning we set out, checkbook in hand. The weather got progressively worse the closer we got to Rockwall. By the time we hit I20 it was bucketing down. However we pressed on as the forecast called for clearing in the late afternoon. I had no idea that the real storm was just getting started.
     
  2. ATSAaron

    ATSAaron Formula 3
    Silver Subscribed

    Jun 1, 2004
    1,135
    Shady Shores, TX
    Full Name:
    Aaron Bunch
    Chapter 9 summary:

    Do all these things.

    Don't charge me.

    I think I know why the lawyer left.
     
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  3. Etcetera

    Etcetera Two Time F1 World Champ
    Silver Subscribed

    Dec 7, 2003
    23,967
    Full Name:
    C6H14O5
    What an epic headache for something that isn't a 308, a GTO, or a 355.
     
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  4. Russ Gould

    Russ Gould Formula 3

    Nov 8, 2004
    1,073
    Aaron's animus has returned I see.

    Actually, as you will see everyone got paid what they demanded, even if it shockingly exceeded the original estimates. I am not going to get into the lawyer matter other than to say I paid in advance in full. I, on the other hand, did not get what I paid for. Not in either case.

    And in Bob's case "all things" came down to getting the a/c to work (and even that turned out to be somewhat of a headfake) and installing one seat belt anchor. He did nothing further on the brakes, and nothing further on the idle problem. He did invoice me plenty though, as you will see in the last and final chapter "Amnesia".
     
  5. Statler

    Statler F1 World Champ

    Jun 7, 2011
    17,389

    wait... you had an attorney but you're not going to include that part of the story?
     
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  6. AshAP

    AshAP Karting

    Apr 14, 2018
    142
    Full Name:
    Ash
    Russ you appear to have kept clear records of all the problems and timelines which would make you reliable in court. Although legal action is expensive and despite the fact that unfortunately there are very few lawyers in my experience that deserve any respect at all (although there are some) the feeling you get when you beat someone like Bob Norwood in court....you can’t really put a price on that level of satisfaction.


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  7. Russ Gould

    Russ Gould Formula 3

    Nov 8, 2004
    1,073
    Chapter 10: Amnesia

    We (my wife and I) arrived at Bob's shop mid afternoon and it was still raining. It had rained a lot, there was water on the floor of Bob's workshop. He and his guys were huddled around a bare 308 chassis which some other client was having built up as a GTO. Apparently said client had bought up a number of genuine GTO parts in Europe and wanted them incorporated into the car. I commented that I hoped he had more money than I.

    My car was nowhere to be seen. Bob advised me not to try to drive it in the wet .. he said he drove it that morning and the water was leaking down onto his arm, the windshield was fogging up (so much for RJ's heater), and I should plan to come back on a sunny day. Instead he invited me into his office to go over the invoices.

    The first thing I noticed was that the labor had not been segregated from the parts on the final set of invoices. That left us unable to make a simple adjustment to the labor billings, ie to split the overrun vs the original labor estimate as we had agreed. I also noted that there was no charge for a new compressor, something I was dreading. Bob told me that his friend fixed it for free. I did note that the invoices seemed excessive vs. the apparent progress on the car. But I did not say anything as by this time I was somewhat stunned by the whole situation and just wanted to get it over and done with.

    Bob then took the position that since I would be "happy at $50K", that the final amount exceeded that by a wide margin, so he thought that I should pay him a flat $60K. The amount per se did not shock me but I found the logic wanting. I thought we had an agreement and since I did not have final copies of the invoices, I thought we were going to make the calculation, settle up, and be done. I pointed out that we had an agreement as to how the overrun would be handled and that we needed to calculate the total that way. We started to sort through the invoices but since the labor, parts and other charges were not segregated we were getting nowhere and it became apparent that Bob had forgotten what the agreement was, despite the fact that it was his idea and that I had spelled out the formula twice in writing with the last two payments that I had made. I again wrote down the formula on the back of one of the invoices while my wife looked on. Bob was to get paid 100% of the parts, 100% of the outside services, the first $13325 of the labor, and 50% of the labor charge over $13325. I had no idea what that amounted to but fully intended to pay whatever the amount was. This all took some time and I had a flight to meet. Since I could not pick the car up that day (I didn't even see it), I asked Bob to have his accountant make the calculation and send me the final scrubbed invoices together with the total so I could settle up. I had to bring my son back to the airport in the first week of Jan so I could fetch the car that day.

    About a week later, Bob sent me a calculation that came to $48K plus minus. I told him that did not sound right (too low) and he should check it. In the same email I wrote out the formula again, as clearly as I could. A few days later he sent me a corrected demand for $50,350 as the final tally. Since I had paid $45K to date, I replied that I would pay the balance of $5,350. I actually waited a few days to see if Bob was going to take exception to that but he did not. So I wired the money.

    In the meantime, since he had the car, I asked him to quote me to upgrade the front brakes as a separate project, ie not subject to our agreement or my $50K limit. He normally puts Wilwood front brakes on his conversions and had all the bits to do the work. Why he had chosen to take a shortcut in my case was puzzling but water under the bridge. He provided me with a quote for give or take $2750. I did not respond as I thought he should have offered to credit the cost of the first failed attempt against that amount so I let it percolate for a while.

    While all of this was up in the air, I went off to a trade show in Las Vegas. While I was there I asked Bob whether RJ would like to buy my old (black) Jeep as his Toyota had blown up. It seems RJ tried to do a valve job on his car and had crashed the valves. This would then provide enough cash so I could proceed with the brake job. Bob did not reply.

    When I got back from Vegas, I told Bob I had had a minor success there (I sold a Holland and Holland double rifle for $24K) so I had some cash and could swing the brake job. I expected him to reply "AOK, will do". But instead I got this email:

    "
    RUSS. as near as I can tell the total on your car is $78,360 and you have paid $50 k . I understand that 50 k is all that you wanted to spend on this car. The reality is this is a carpenter car and I should catch on to fact that no amount of estimating will get you to the bottom line. As I told you earlier I am willing to take a big hit on this deal. I am not willing to take a $ 38,360 hit. I am willing to settle for 10K which is a 28,360 loss to me..
    I Talked to my attorney about this issue and he said you need to keep the car. I told him that you had paid as promised on invoices and i needed the space for other jobs. He thought a note for the balance may work. Think about how you want to handle this. I am in a messy lawsuit on the previous carpenter car and we do not need to go there on your car.Thanks Bob "

    This was a shock to say the least. Apart from the fuzzy math, there was no reference to our agreement or any version of our agreement. And the grand total was now 3x the original estimate, and the mechanical and electrical work that Bob was supposed to do was hardly complete.

    I replied

    "Hello Bob,
    I can understand that you are not happy. Join the club.

    Early on, I could see the writing on the wall. I was ready to pull the plug but after you offered to split the labor overrun, I decided to proceed. Did you explain to your attorney that you were the one that offered to split the labor overrun on the car 50:50, which is exactly what we have done? Had you not made that offer, I would have stopped the work some time ago. I ate the parts overrun 100% even though you guys missed the fact that I would need to replace the entire rear suspension and the wheels when you drew up your estimate, as well as the need to replace the front brakes and a list of other unplanned parts that had to be replaced.

    I accepted your offer to split the labor overrun and documented this agreement in writing some time ago and have followed this formula since then. Had I known that the original estimates that you made after having a lot of time to look the car over, and which I assumed were thorough since you billed me for the time to draw them up, were going to be off by a factor of 3x, I would not have commenced the project at all. I would have parted out the car. It was only because your estimates seemed affordable that I commenced the work, and you seemed happy to have the work at the time, and to continue on the basis we agreed.

    Carpenter had nothing to do with this car as best I can tell. The bodywork was done by Wicked Autosports in LA or something to that effect. In any case the overruns had almost nothing to do with the bodywork. It was all mechanical and electrical and that was all "made by Ferrari". In my opinion, a good amount of the labor overrun was due to your guys doing work out of sequence and doing some of the work twice or three times. The only bodywork issues were the fitting of the rear quarter windows, and the alignment of the subframe with the rear wheel wells. Neither of these were a catastrophe.

    Subsequently, as a separate project, you offered to swap out the front brakes for the second time. We discussed the issue of brake balance before the first attempt to fix the brakes and it's a bit hard to swallow the fact that I now have to pay for a second set of front brakes because of a balance problem. Notwithstanding, I offered to pay for that in full. But as I am sure you can understand, if you are going to take the position that you are now taking, I am reluctant to do any further work on the car. From where I stand, the brake job could end up as a $7500 job and not a $2500 job as you quoted.

    It's too late now to try to rewrite the deal. We proceeded on the basis of that deal and we both have to live with it, for better or worse.

    I will come to pick up my car on Thursday, February 8th, and I consider the matter closed. I hoped to end it on a more positive note.

    Russ."

    I was out of the country for the last week of January and the first week of Feb. While I was there his lawyer sent me the attached letter.
    (continued in a separate post due to the 1000 character limit)
     

    Attached Files:

  8. Russ Gould

    Russ Gould Formula 3

    Nov 8, 2004
    1,073
    (continued)

    This was another shock. The goalpost had now been moved from $60K to $72K. It seems Bob did not have amnesia after all, he just had his own version of what we agreed that he failed to mention on any of the six occasions it was referenced and when you would think he would have brought it up (two face-to-face meetings one when the $14K invoice was presented, one when the job was done; three payments citing the formula that he accepted, and one email spelling it out in great detail after he sent me the $48K number.) Heck, he didn't even take exception to it when he himself applied the correct version of the formula to come up with the $50,350 final tally. But now that the bill was settled, Bob wanted more. Perhaps mentioning my minor trade show success was a mistake ... or perhaps the fact that another Fchat member paid another shop $60K for a similar conversion caused him to have "seller's remorse", if there is such a thing. Perhaps he is just forgetful.

    The day I got back to the USA, I emailed Bob asking for a meeting the following day to inspect the car and to go over the invoices. He denied my request, stating that the car was now in offsite storage. He told me to submit my questions regarding the invoices in writing, which I did in some detail. I received no substantive response other than a brief note blaming Carpenter and the car. His lawyer subsequently sent me another letter upping the demand to the full $78K plus storage fees and threatening to send the amount out for collections.

    In May of 2018, after considering my options, I showed up at Bob's premises as promised with a Bank of America cashier's check in hand. Instead of producing my car, Bob then hit me with a new demand for a legal release and told me to come back with cash as a "cashier's check can be cancelled". In other words I drove over 400 miles for nothing.

    So that brings us to today, almost a year after Bob made his offer to split the labor overrun. I don't have my car and have not seen my car since Sept 2017. I know the car has issues with the idle, the plugs fouling, the new battery is dead, the new brakes don't brake, the doors won't latch, the rear bonnet won't stay open, and the car has damage to my console, my louvers, my buttress and my spoiler. I don't know whether there are other issues with the work as I have not been able to inspect it. Bob has taken the position that he won't release my car or allow me or my agent to inspect it until I pay him in cash, and until I sign a release stating I won't sue him for any reason.

    I warned the readers early on that this would be a long, complicated saga. To those of you that have stuck with the story, I hope you found it informative and not too boring; to those of you who have expressed empathy, I offer my sincere thanks. To the one or two that found my story annoying, I can only say nobody held a gun to your head. The only gun in this story is the one being held to my head.

    I will let this rest for a while. If there are any developments, I will post them here.
     
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  9. carnutdallas

    carnutdallas Formula 3
    Rossa Subscribed

    Nov 11, 2010
    1,970
    Dallas Burbs
    Full Name:
    Rob
    At this point having read everything, read what you been through; the entirety of it all, just tell Bob to keep it. Seriously, move on. He will get his due if he operates this way. You will take a huge financial loss and have already done so. I say, move on. You will keep throwing good money after bad. You are great at another business and hobby. Work hard to make up the loss and don’t look back.

    It is hard for some to do that. I have learned that I make mistakes, sometimes expensive ones. I try to not repeat them and learn from them. As a 25 year business owner, auto collision repair, dealer and collector, I take my lumps and move on. He will never truly benefit. Just say keep it. Let him have the albatross. Any money gained from that will be tainted or cursed. You don’t need it or want it. It is automotive junk. You cannot “bet” your way out of it like people try and fail in Vegas. They die at the table and so will you.

    Don’t let the lawyers drain you too! Just say “forget about it...” Wipe your hands on your pants and go back to work finding money making opportunities in the areas you know how too. Seriously.

    All the best. -Rob




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  10. MellyVille

    MellyVille Rookie

    Jul 27, 2010
    11
    USA
    #210 MellyVille, Jun 24, 2018
    Last edited: Jun 24, 2018
    Call the police, say your car is stolen and tell them you know who has it.

    Or can they legally kidnap? So if I don’t pay an excessive and made up invoice from a child day care provider, can they kidnap my kid legally because a made up amount of money seems to be owed? The amount which was presented in the form of a cashiers check but denied, even though the total was set before and paid but changed etc? Can anyone make up stuff and say they legally owe such and such amount? Can they deny a legal form of payment and take further hostage of property because they don’t like the legal payment form presented? Does a release letter hold up if it is signed in blackmail circumstances?

    I do not live in the US, but things don’t work that way, at least not here.

    Also, just PI him, find out where your car is and take it. What, is he going to call the police? While you have written proof all is paid? Seems strange, but just do it. Be that badass

    Also, you should and could have pulled the plug earlier. Why trust the in your eyes incompetent work with more work? Being set on driving the car has cost you more than buying a flatbed trailer and hauling it yourself. Then brakes, ac, seatbelts, etc were no issue
     
  11. Smiles

    Smiles F1 World Champ
    Lifetime Rossa Owner

    Nov 20, 2003
    16,673
    Pittsburgh, PA
    Full Name:
    Matt F
    Don’t worry.

    Russ will start a separate thread in order to complain about that too.

    :)

    Matt
     
  12. PAUL500

    PAUL500 F1 Rookie

    Jun 23, 2013
    3,136
    #212 PAUL500, Jun 25, 2018
    Last edited: Jun 25, 2018
    I imagine you would complain a bit as well if you were $50k plus in the hole with nothing to show for it, even if you were naive to be at that point.

    Norwood reminds me a lot of the construction type guys I have dealt with a part of my job as a quantity surveyor. They guestimate a job, win it, realise they have underquoted and try to bump up the price of additional works to recover the lost costs.

    Case in point my neighbour wanted a large extension, had a budget of £100k at most. Lowest quote came back at £150k. He asked me to take a quick look as he had given up, a few tweaks here and there, change of spec to something more cost effective and went back to the lowest bidder. They came back at £92k. Did a fine job and even with genuine extra work he kept within budget and the contractor made a profit knowing he was being kept on a leash he then managed his own costs far better.
     
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  13. Aircon

    Aircon Ten Time F1 World Champ
    BANNED

    Jun 23, 2003
    100,524
    Melbourne, Australia
    Full Name:
    Peter
    I really don't think you should be a moderator around here.
     
  14. Nader

    Nader Formula Junior

    Feb 12, 2011
    990
    East of Seattle
    The car looks great. You are aching close to completion. Settle up, whatever it costs, then take it to a competent independent shop that can finish the job. To make this conglomeration of old Ferrari parts fit is not rocket science. Just nuts and bolts. And maybe a Sawzall.

    Instead, what it would've cost to finish this project, will just go to lawyers. A predictable outcome of two incompatible personalities clashing on a project.
     
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  15. rob lay

    rob lay Administrator
    Staff Member Admin Miami 2018 Owner Social Subscribed

    Dec 1, 2000
    63,963
    Southlake, TX
    Full Name:
    Rob Lay
    mods were users before they were mods and they are still users first. we can only really mess up if we use mod powers for personal things, long long time ago I've made those mistakes. ;)
     
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  16. Aircon

    Aircon Ten Time F1 World Champ
    BANNED

    Jun 23, 2003
    100,524
    Melbourne, Australia
    Full Name:
    Peter
    You still do!
     
  17. rob lay

    rob lay Administrator
    Staff Member Admin Miami 2018 Owner Social Subscribed

    Dec 1, 2000
    63,963
    Southlake, TX
    Full Name:
    Rob Lay
    bollocks!!! ;)
     
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  18. brian.s

    brian.s F1 Rookie
    Professional Ferrari Technician

    Nov 3, 2003
    3,809
    Midwest
    Full Name:
    Brian
    Many shops that do restoration and/or custom work will charge a flat rate for all actual time spent on the project, some will have the owner search out parts as they often are in touch with other shops/suppliers/owners of their particular vehicle. Any parts sourced in shop are marked up in addition to the labor involved.
     
  19. thorn

    thorn F1 Rookie
    Silver Subscribed

    Aug 7, 2012
    3,324
    Tallahassee, FL
    With any custom work - not just cars, but anything - it can be difficult to determine a firm quote. Fabricating/creating solutions for things can go sidewise, unforeseen things can pop up which require new costs and solutions. But that fact doesn't mean a shop isn't won't exploit this and padding the invoice, which appears to be exactly what happened with this project. It also doesn't mean you're doing competent work. If you've got the engine out, that's when you check all the valves. Not after you install the engine, and then need to remove the engine after you decide the valves need to be replaced. If you're doing things in the order of Stupid, that's your fault and not the client's responsibility to cover.

    True Story:

    I once worked for a company. We had a part-time employee we'll call Jimmy. He did all the odd jobs around the office, filing, sorting email, deliveries, washing the owner's car, picking up the owner's dry cleaning, etc. Every single thing Jimmy did was billed directly to a client, or in some cases, several clients. One day, we moved from an old office to a new one across town. For a week, Jimmy was filling the company van with equipment and boxes, and taking them to the new office. He was setting up new furniture, organizing everything, you get the idea.

    Jimmy spent about 50-60 hours helping to complete the office move, and every one of those hours was billed directly to a single client. The invoice didn't have a line-item for "Company Moved", of course. Instead, the owner added 5-8 hours to each of the 8 "real" projects on the invoice. So PROJECT X "took" 9 hours, not 5. Redoing a portion of PROJECT Y "took" 20 hours, not 14. Washing the owner's car? Same thing. Some client's bill for PROJECT Z went from 4 hours to 6 hours.

    BTW: Jimmy earned $10/hr. The shop rate was $40. That means we actually made $30 for every hour Jimmy worked.

    So. When I see all those "RJ: Heater Work" items on Russ' bill... yeah, I've seen that kind of billing before.
     
  20. Nader

    Nader Formula Junior

    Feb 12, 2011
    990
    East of Seattle
    I know being embroiled in this mess is stressful. I've been there to a smaller degree on several other car and motorcycle projects.

    To put things in perspective, remember that mega-thread not long ago by that poor guy who was building his dream multi car garage+house? Huge mistakes, million(s) over budget, financially wiping him out, then dying of cancer before it could be completed?

    Also, there are people out there happy to spend six-figures+ to fully restore comparatively boring cars. When you start a project out of passion, you'll never be happy if you're constantly counting receipts, hoping you could someday break even if you had to sell it...
     
  21. Dave rocks

    Dave rocks F1 World Champ
    BANNED

    Nov 23, 2012
    16,047
    Orchard Park, NY
    Full Name:
    Dave Lelonek
    No, Jimmy's pay is not his cost. And, other business burden applies to all hours such as the building over head, electrical, heat, etc.
     
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  22. thorn

    thorn F1 Rookie
    Silver Subscribed

    Aug 7, 2012
    3,324
    Tallahassee, FL
    Of course operating expenses - in the end - are paid by the clients. Those costs are factored into determining your shop rates, profit margins, etc. But the difference is how you structure your accounting, and how you bill those things. I'm confident you don't take your electric bill each month (let's say it's $900), and add $450 to a couple of your largest clients' invoices under "Parts Refinishing".

    Another (quicker) story: We had a large account who received 100s of hours in requested services. The client was incredibly involved in each and every project, the details, the revisions, etc. At the end of one year, he got an invoice for $160K. He called our owner and demanded a meeting. He flat-out said "There's no way you did $160K worth of work. I'm not paying more than $70K." Our owner did a few minutes of "But but but..." After seeing it was going nowhere, he accepted the $70k. That client is still a client, btw.

    When I first heard this, I couldn't believe we didn't force the issue and get our $160K. But once I learned about our accounting tricks, I completely understood why we didn't fight the issue: It was because a forensic audit of our books (which client would have demanded, and gotten) would have resulted in a lot of client lawsuits and possibly fraud charges.
     
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  23. yelcab

    yelcab F1 World Champ
    Consultant

    Nov 29, 2001
    13,550
    San Carlos, CA
    Full Name:
    Mitchell Le
    and you are still working for this company that billed fraudulently ?
     
  24. thorn

    thorn F1 Rookie
    Silver Subscribed

    Aug 7, 2012
    3,324
    Tallahassee, FL
    Oh, hell no.
     
  25. AshAP

    AshAP Karting

    Apr 14, 2018
    142
    Full Name:
    Ash
    Sounds disgraceful but I’m sure such practices are more widespread than we’d think.


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