Free Declaration in Support - District Court of California - California


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Date: December 31, 1969
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State: California
Category: District Court of California
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Case 3:07-cv—O2748—I\/IHP Document 123 Filed O3/O3/2008 Page 1 of 4
1 RICHARD HARRINGTON (SBN 28099)
CHANDLER WOOD HARRINGTON & MAFFLY LLP
2 One Maritime Plaza, Fourth Floor
San Francisco, California 94111 3404
3 Telephone: 415 421 5484
Facsimile; 415 986 4874
4 Email: [email protected]
5 ROBERT CHARLES WARD (SBN 160824)
SHARTSIS FRIESE LLP
6 One Maritime Plaza, Eighteenth Floor
San Francisco, California 94111 3404
7 Telephone: 415 421 6500
Facsimile: 415 421 2922 I
8 Email: [email protected]
9 C. ANGELA DE LA HOUSAYE (SBN 144218)
BRENDAN J'. DOOLEY (SBN 162880)
10 KARYNE T. GHANTOUS (SBN 191309)
DE LA HOUSAYE & ASSOCIATES, ALC
11 1655 N. Main Street, Suite 395
Walnut Creek, California 94596
12 Telephone: (925) 944-3300
Facsimile: (925) 944-3343
1 3 Email: angela@,delahousayelaw.com
brendan@,delahousayelaw.com
14 i 15 Attorneys for Defendants
ANDREW VERITY AND CHRISTINA CHANG
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17 UNITED STATES DISTRICT COURT
18 NORTHERN DISTRICT OF CALIFORNIA
19
SAN FRANCISCO DIVISION
20
21 MARK LILLGE D/B/A CREATIVE ) Case No: C-07-02748 MHP
. MARKETING CONCEPTS, )
22 ) DECLARATION OF CHRISTINA CHANG IN
Plantiff, ) SUPPORT OF MOTION TO DISSOLVE
23 ) INJUCTION OR, IN THE ALTERNATIVE,
v_ ) INCREASE BOND AND FOR
24 ) PRELIMINARY INJUNCTION AGAINST
25 ANDREW VERITY AND CHRISTINA CHANG,) PLAINTIFF
Date: April 7, 2008
26 D€f°md3mS` i Time: 2:00 pm.
Dept; Courtroom I5, 18th Floor
27 Judge Hon. Marilyn H. Patel
28 Complaint F iled: May 25, 2007
I Trial Date: None Set

DECLARATION OF CHRISTINA CHANG IN SUPPORT OF MOTION TO DISSOLVE INJUCTION OR, IN THE
ALTERNATIVE, INCREASE BOND AND FOR PRELIMINARY INJUNCTION AGAINST PLAINTIFF

Case 3:07-cv—O2748—I\/IHP Document 123 Filed O3/O3/2008 Page 2 of 4
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2 I, CHRISTINA CHANG, declare as follows:
G I. I am a defendant in this action. I have personal knowledge of the facts set forth herein
2 and, if called as a witness, I could and would testify thereto under oath.
5 2. I was fired by Mark Lillge, as was my husband, Andrew Verity.
6 3. Andrew Verity and I did not plan our exit, lay the foundation for our new business, and
7 execute a surprise raid on customers and employees of CMC. We were fired on short notice and created
8 Branding Boulevard as the only way to obtain a replacement visa and remain in California with our
young son.
9 4. After Andrew Verity was fired, I continued working for CMC and remained to be CMC’s
10 best salesperson.
11 5. I had given Lillge my intention to stay at CMC to preserve both our immigration status
12 and ability to pay the mortgage. Unfortunately, within weeks, Lillge fired me also. Lillge demanded,
13 for the first time, that I sign a confidentiality agreement that included an illegal non-compete clause.
14 The timing of Lillge’s demand was not coincidental. Lillge had just tired and refused to pay my
15 husband Andrew Verity his deferred remuneration because he wanted to eliminate him as a potential
16 competitor. I was concerned that I was going to be fired despite signing and felt I could not agree to
17 severe restrictions on my ability to earn a living should Lillge terminate me. Lillge fired me on short
18 notice knowing that doing so created a dire immigration problem for Andrew Verity, myself and our
19 U.S.-born child. Indeed, Lillge responded to inquiries about me from customers by telling them that I
20 had been forced to return to Canada.
21 6. Lillge has claimed that the confidentiality agreement did not contain non-compete
22 provisions. This is factually incorrect. I was told to sign the document that contained a two year non-
23 compete clause, otherwise I would be fired. Later I was given another document, but they had already
24 told me I would be filed for not signing the first document
25 7. Lillge also emailed Michelle Chan of Wells Fargo that there is an injunction in place to
26 prevent us from doing business her. Because of CMC’s misinformation, Chan asked me to remove her
ji; from our mailing list, despite having initiated contact with us before the injunction.

DECLARATION OF CHRISTINA CHANG IN SUPPORT OF MOTION TO DISSOLVE INIUCTION OR, IN THE
ALTERNATIVE, INCREASE BOND AND FOR PRELIMINARY INJUNCTION AGAINST PLAINTIFF

Case 3:07-cv—O2748—I\/IHP Document 123 Filed O3/O3/2008 Page 3 of 4
1 8. Regarding our sales volumes: In 2006, at CMC, Andy Verity did $750,000 in sales and I
2 did $600,000 in the 7 1/2 months after I retumed from matemity, making my amiual sales rate around
3 $950,000. Our combined annual sales rate was therefore $1.7M at a gross margin in excess of 41%,
4 which would result in $700,000 of gross profits. A
5 9. At Branding Boulevard we achieved $600,000 in sales in our first 9 months in business,
6 making the a.nnual rate around $800,000 at around 36% gross margin, which would result in $288,000 of
7 annual gross profits. The differential in gross profits is between the ability to procure sale before and
8 after the Injunction is $412,000.00. Because 25% of our customers are not from CMC, the gross profit
9 figure related to former CMC customers was approximately $216,00000. Thus, the true result of the
10 Injunction is $484, 000.00 in lost gross profits per year. I am aware that some customers are leaving
11 CMC because of bad service, but not coming to us because of the restrictions they were told by CMC on
12 contacting Branding Boulevard.
13 I declare under penalty of perjury under the laws of the United States of America that the
14 foregoing is true and correct.
15 Executed this 3rd day of March 2008 at San Francisco, California.
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C CHRISTINA CHANG
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-3- Case No. C-07-02748 MHP ____
DECLARATION OF CHRISTINA CHANG IN SUPPORT OF MOTION TO DISSOLVE INJUCTION OR, IN THE
ALTERNATIVE, INCREASE BOND AND FOR PRELIMINARY IN IUNCTION AGAINST PLAINTIFF

Case 3:07-cv—O2748—I\/IHP Document 123 Filed O3/O3/2008 Page 4 of 4
l I hereby attest, pursuant to General Order 45, section X.B., that I have on file all holograph signatures
2 for any signatures indicated by a "conformed" signature (/S/) within this e-filed docmnent.
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DECLARATION OF CHRISTINA CHANG IN SUPPORT OF MOTION TO DISSOLVE INJUCTION OR, IN THE
ALTERNATIVE, INCREASE BOND AND FOR PRELIMINARY INIUNCTION AGAINST PLAINTIFF

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