Free Statement of Material Facts - District Court of Connecticut - Connecticut

Case 3:02-cv-02272-AVC

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UNITED STATES DISTRICT COURT FOR THE DISTRICT OF CONNECTICUT CROWN THEATRES, LP, Plaintiff, VS. MILTON L. DALY, ET AL., Defendants. : : : : : : : : : CIVIL ACTION NO. 3:02-CV-2272 (AVC)

MAY 21, 2004

LOCAL RULE 56(a)2 STATEMENT OF DEFENDANTS MILTON L. DALY AND TAYLOR-LEIGH, INC. Pursuant to Local Rule 56(a)2, defendants Milton L. Daly and Taylor-Leigh, Inc. respond as follows to the Local Rule 56(a)1 Statement (dated April 30, 2004) that has been filed by the plaintiff: 1. 2. Admitted. Denied, in that it was Robert L. Beacher who negotiated on behalf of

plaintiff Crown Theatres in regard to all of the construction projects for the various theatre projects at issue in this case. (Deposition of Robert L. Beacher at 15, 37, 279.) Furthermore, while Milton Daly's duties included overseeing such construction projects and approving expenditures related thereto, he only approved such expenditures after they were first reviewed and approved by Beacher and, usually, by the plaintiff's architect, James Martino. (Deposition of Robert L. Beacher at 345, 346.)

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3. Admitted; however, Beacher had worked for Crown Theatres in this capacity long before Daly was hired. (Daly Deposition of 5/21/03 at 15; Deposition of Robert L. Beacher at 39, 305.) 4. Admitted as to the conduct of Beacher, but denied as to the conduct of

Milton Daly. Daly approved the invoices that were submitted by Beacher without any knowledge that they were "sham invoices." Daly believed that they were valid bills for construction services rendered, and nothing about them suggested otherwise. (Daly Deposition of 5/21/03 at 136, 141, 143; Deposition of Robert L. Beacher at 349, 351, 355, 357.) 5. Admitted, however, while Milton Daly now knows this to be the case, he

did not know this before this litigation. (Daly Deposition of 5/21/03 at 141.) 6. Admitted, however, while Milton Daly now knows this to be the case, he

did not know this before this litigation. (Daly Deposition of 5/21/03 at 141.) 7. Admitted, except for the last sentence which is denied in that Milton Daly

believed that the invoices were valid bills for construction services rendered, and nothing about them suggested otherwise. (Daly Deposition of 5/21/03 at 136, 141, 143; Deposition of Robert L. Beacher at 349, 351, 355, 357.) 8. Denied, in that Milton Daly believed that the money that he split 70/30

with Beacher was only the "profit" that Beacher and his companies made for doing actual work on the theatre projects. Daly believed that they were valid bills for

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construction services rendered, and nothing about them suggested otherwise. (Daly Deposition of 5/21/03 at 136, 141, 143; Deposition of Robert L. Beacher at 349, 351, 355, 357.) 9. Admitted as to the amounts of the payments that were made; however, as

stated above, Daly thought that these were all payments of legitimate invoices for work actually done by Beacher's companies. (Daly Deposition of 5/21/03 at 136, 141, 143; Deposition of Robert L. Beacher at 349, 351, 355, 357.) 10. 11. Denied. (See response to #9 above.) Denied, in that the materials supporting this allegation are the subject of a

Motion to Strike that is being filed simultaneously herewith. 12. Denied, in that the materials supporting this allegation are the subject of a

Motion to Strike that is being filed simultaneously herewith. 13. 14. Admitted. Admitted that Milton Daly approved payment of invoices that totalled at

least $6 million. Denied that his wife (defendant Anne Daly) "received" any of the $4.2 million. (See Anne Daly's Motion for Summary Judgment and Plaintiff's Cross-Motion for Summary Judgment and the Local Rule 56(a)1 and 2 Statements filed by defendant Anne Daly, and the Affidavit of Milton Daly, filed in connection thereto.) Admitted that Taylor-Leigh, Inc. performed no work for the plaintiff.

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15.

Admitted, but the agreement was to split Beacher's profits that were

generated by legitimate construction work that his companies performed for Crown Theatres. (Daly Deposition of 5/21/03 at 136, 141, 143; Deposition of Robert L. Beacher at 349, 351, 355, 357.) 16. herein. 17. See responses to #8 and #9 and #15 above, which the defendants See responses to #8 and to #15 above, which the defendants incorporate

incorporate herein. 18. Admitted only as to the claim of self-dealing by Milton Daly. (Daly

Deposition of 5/21/03 at 136, 139, 140, 141, 143; Deposition of Robert L. Beacher at 349, 351, 355, 357.) 19. Admitted. In fact, Milton Daly has offered to disgorge the benefits of the

self-dealing ($4.2 million) since this lawsuit began, which offers have not been acted upon by the plaintiff. (Daly Deposition of 5/21/03 at 137, 138, 139.)

Disputed Issues of Material Fact 1. 2. The nature of the arrangement between Milton Daly and Robert Beacher. The state of Milton Daly's knowledge regarding the payment applications

and invoices that were submitted by Beacher.

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3.

Whether Milton Daly and Taylor-Leigh, Inc. were knowingly involved in

Beacher's plan to cause the plaintiff to pay inflated prices for construction services that were rendered or to cause the plaintiff to pay for construction services that were not rendered. 4. Whether the 70/30 arrangement involved Beacher's expected profits from

construction work that was to be performed at a reasonable price.

DEFENDANTS, MILTON L. DALY and TAYLOR-LEIGH, INC.

By_______________________ Kerry M. Wisser of WEINSTEIN & WISSER, P.C. 29 South Main Street, Suite 207 West Hartford, CT 06107 Telephone No. (860) 561-2628 Facsimile No. (860) 521-6150 Federal Bar No. ct01205

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CERTIFICATION This is to certify that on the 20th day of May, 2004, a copy of the foregoing was served upon the following counsel of record by way of First Class Mail, postage prepaid: Harold James Pickerstein, Esquire Jodi Zils Gagne, Attorney Pepe & Hazard 30 Jelliff Lane Southport, CT 06890-4000 Craig C. Martin, Esquire Lawrence S. Schaner, Esquire Jenner & Block One IBM Plaza Chicago, IL 60611-7603 Mark Seiden, Esquire Marisa Lanza, Attorney Milber Makris Polusadis & Seiden, LLP 108 Corporate Park Drive, Suite 200 White Plains, NY 10604 Robert M. Frost, Jr., Esquire Zeldes, Needle & Cooper 1000 Lafayette Boulevard Bridgeport, CT 06601

___________________________ Kerry M. Wisser

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