LA'¤.I·" UI°`l`·`I¤.`IE DF DUN 1*. *.'»·'[I.L1.·‘*II••aIhS
2 P. L`}. Bm. 53UE
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|’]muu: [623] E9?-=12] I
’* 1‘·‘a1x: [623] 32I-HU26
Fimuilz DUIII1IRI.v*¤·°IIII;I:LIIlL§:ilI'¤l'-E;!EIL!’.IT¤J`|l'.iI'Fl'_gt
5 A.Llur|1uy lbr Dc[*:n:Iu1|ls.·'i`I11u1|l•;:11;Iz1i1|m|1IH 1'v1uIlu;I1
. IN '1`IIE SUI’I§I·lIUR ·fI(}I.|R'I` UF THE S'l`A'l`FZ UF AIIIZIUNAI
'I IN Abel} IF`{}R'I`lII1Z C(]lJN'I`Y UF I‘•r|Al{ICUl’:\
E
9
H (T}EN'I'HRY 21 R.I;}:‘1L ES'I`.·‘¥I`I1Z } Cause Nu; {ZIV U3 2353-I°'HX~!JGC
‘ ‘* LTU1{l’{1|lA'l`IUN, 11 I}•:Imvau·c curpumiimy. } _
__ 1 } C·UUN'I`EI{CLAI['h*'IAN'I`S’ UI£.`IEC'l`lUN
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1 3 vb, Tl I*L.-·*II NTI FIIHQIOlIN'I`IE IIIIIQF
IIAIIYUSI-I 11. Wlutlugh Emu .m1·~:1~:w1·;n F *‘*‘********`** ****** *’*TT'******`***`*’*¤ ****·***°*
; Q I'vlU'I`L!s{}lI, hnnsbund and wifi; g
INTEU1{I'I`YASSUI{ANCE, INC. un )
ZL E Arixun:1 |ZOI`[]UI'&l Ijun., ]
. . J
[I D|3IE]'LLILL1'IIS. j
}
1 * Ihnryusln H. NlutI;1gI1 und JENNIFER }
lg I\*IU'I`Lz\{`}H, Inusbmnd and with; *'
IN'l`E·E&Il]'I`Y ASSLIIUINCE lN{Z.,:n1 g
1 *1 Arizunm curpurutiun, }
2 ** CIJLI11IL}I`CIELI1`|'I :1r1ls, I
, . )
'* *‘ ws. ]· Mssigrnutl E0 Hun. Dzwid (2, (TEIIHIJEJUII
,_ I
2; CEN'l`lIl?.\’ 21 IIILAL ES'I`A'I`II I
gg CUI%{I’U]lA'I`IUN, 11 Dclnuunru curpurzntiuu §
duing businuss in thc Status ut'A1·iz.u1u1; )
N I)OII.(S) I TH R{lUGI·I Illll, )
, ,. _ F
2 ~' ___ __ _Qq@,111ta:rI1»;—:li:I·gdu¤1ts. ___ _ _ )
2 E
[Eu.uuna.:y of pleading] - I
1 Dclbmlutils-CIn¤.uu·:ru;laniimu1Ls 1Jau‘;,·L|si1 and .lt..71`lE11`.l§C]' Niotlabgltl object to ptatutiitl
Cl.)LlI`ll·EI'l,iEIl111£iE11]I?tL tT1UllL`1·1`l Il]l' 2J1[U1'l'tE;\·'t:l-J IEEE E·H`lLl Lili.? 1'tFEISDIl{·1l§JlEI1HS:i UIIIIILE £11'l’1L1·LlI'1l. 5ll.â€:·I.|gi]lZ Ul'l•Lit‘!
3 lhs oircuinstanuo of this cass, uml tor this rsasoms sot ltmrth hsiow.
rt
i"t'II€.i\*I(}I`·L.*$tI\iI}l.li\fI OF I"UII'€`I`S ANI] .·‘\ll'l`l·l(`]RI'I`IIES
IT
{_; I. |..|11m:c1:ss:1t•v Litignliuxn.
_, This litigation was iristiaatod bv olainti1’tlcot11ttsr:l•s|l:ad.=111t [l`Il.51'UiLlil·L!1' ‘“C2 I "_§ lLJ5l`C1]SlITi}·'2
to ohtuiu that which it could have haul simplg.»· by oitgaging in tousonablu: riogotizntions with
it
dclicnidautt-oou11tsrulaiu1au1t [Itsru:ailo1· “Motlag_l1â€`|. but riztiisuzd to cio so. in isis `i9EJZ·’ i`\*'I{JllElE,l1 uml
9 . - . . . . . ,. . .
i`11SI`IlL‘}I1—1]t1TlI1L31`.lDl1l1 izdwards purchased a I.ii2I]ILII'_].’ 21 lraitshisz: tor H»25.UDU.UU. lhc itamzluso
' '~' tsrm was to be utilil Sc tomhsr Litt ZUUF. Motta =h and ti¢.Iwut+;ts svcmtuatl s lit u J autl Motla ·h,
» L- F P I h
1 1 as tho hrolosta c’s dssiwttatod l!J·1'UI·1UI', C-UI1l`lllllK1(l to do husitisss as a thutuhisso. l··`i·om l$l¥Jt€
D
12 through Eillli C21 and Motlagit oogugod iu iiisputos COI1LZ£.‘Z|`l'Ii1`lg thi: application oi’ro;·,·aity
13 pazmusrnts. advcrtisiris fates anal |`]Cl'.`II[]I`[1]£Ll`IGEZ SIF.l.I1{.i1II`tIF§. l"·lCiIi`IE1` party was salisiiocl with tho
prcrtturutuuoc ofthe othot pa:·t;w.
` *'= . .
Un ot about l_)L‘}CC1I`llJLi1' ETH, ZUUI, duo to ovsnts that had ootlnug to do with thc: Motlztgit-
lb CEI rolationship, Motlugi·i iiloci a psrsoital Cltaplor T bs11kruptuj·.* pcti Litt!1 and a ·Cl1aptot· ii
l 6 petition on bsl1uii` ot`i|tu:gtit;»‘ t_U¤:=;ausu: ha: b·.:liu:vi:·n.l. ot was lsu to tv».:t1i;~.··:, that he »,o·.iLti still
lj.- saivugc.: his itaitultisc I`l;"lEI.IIlZ1I1EllIlp with C21}.
13 ' Mrtqtnal daPendant-nennthxclalmant Intea;ity Hssuranua, Inn. has been ln
` Chapter ll bankxuptcy slnee Hwccmbey EHW, 20Ul. Tho debtor is now under the
_ nontzr-ol uf a |:‘:ar1i-:t··.u_JL‘t:gs c~;~¤.1;·;—ag»;io.1ritet1 ·. rgiatzas. ‘L'iio 11n¤:Le:.sligt¤c.ri attommy has
LQ not Dean onslnyad to xeptesaht the esvato, and dans net bollavs .hat he nas
autannlty tn “exesotso unhLto!" Gust -hs casa nn hctalf of Tatcgxlty.
Yl Navontheless, the pelnts and arguments maaa ni behalf of the Motlaqhs would
qsaetally apply tc In;eqELty as a separate Legal entity. Thats is nmthlng in
22 lf.?7·Z ZECULCL LTC! .FJ'|.'|.Q|£.]E;;il.. |,.lL:1L. l.|}.J·..J|.| t.|¤.·.: ·...lu:n.¤.y:. -:.;·»n*.i;·q[I :·.~·E nlm- ·»;¤»:=·l,:.·;°: :.‘iEiuLc.:.r‘-J.H-pn:·sse::=s`i:iJZ‘i 120 the 23 oEIlc;‘io`..].y ssl··tnai;i witzti [.·;‘o:;:o:na nt o·..h»sr¤st as aiattia a ;aei:L~,· to- thls liti g1a*;l<.¤h.
Ii is suggested that Lhls cotzt ls without inrisdlntlen to enter a jndgmsht
Eq of an awaao of a1:toi;·ticsp·.s* fuss a-;;a;i nmt Ihtusqgrri tig;.
,3 Ei ii b1c.*;L|.:.¤
{ _ 1t¤n1le~.·‘e<;l in be -;>·.»s·od 1‘c¤ya].|;g,.* 1;-aes, ;|T‘can·:l‘;ise €’n·::s, ElLl*.·'LE!flLj.‘;il1|·i| [fans anti
JU jrnznrest and lata cchazges; and Q3] to clestgoy L~·1oLlaqh‘ aiJj..l ity to 1T1.1l`1·£1';L<.>L`2
as a tmoiaoxaqc lt; a itiaictet azroa that ha plouoaxett but to ·.-.·hi¤:]1 C21 Ixari
gxahtoo as suossqnaxit Ixarichlse to a tiiotga-faso;··sct ii:·snohi.ses.
ISumma;·y_r of pleading] - Z4
1 `1`111i* Filing 1J1` 1111: [11:|it.i1.111s 1.1LZ11\·'1llL3L1 1110 I`!11.111111*t1|;110y 1.j1.1111:’s at1t011111t.1¤.= stay, 1111111:11
2 p1*0v0111s a11y* 01*001101* 11*0111 taking any ac-11011 at`th1:t*i11g, 1`1`1.C 1:stat1.: 111111*;}.-115 11111.1 until suah 00:111101*
3 1.}1'}l.1.11I1S an 0]'f.11:‘l` 1.}1`_l'11T111J1iili1"1.Y1l1`I 1,11.12 stay. `t1~l0twit|1st111111i11g, C21 . 111*1 01* ah0u1 1:U111`1.1·L1l`_}" 5., 211112,
I] y*i1.1lat1:11 thc stay by s1:1*~.1i11g 11111.111 ?*1»111tlag,11 a 1110111:1: 111- '1`01111i11ati1111 tL1·1`il11lS t`1*a111:|1is1: 1.t_|él`CC1I]C111..
*:11:0, 11.:111:1 1].1.1113Cl 1·`1:|::·1*ua1*y 5, 21.11.12 1il`0lTI C21 111:111 Estate C111p01*1tti01*11'J11t111 1<01*11ti:i1111 111 D.
5 11»10tlag.;|1 in E11l1ihi1 ‘*1·11" ELIIIIEXCC1 11a1*1-.:111. I1`11CI'Ct111§121', C21 1:-1:as011 1;1111111*1tt11i1:ati011 with 1'1·‘1(J·`1`12Ig1`1
li and 100111:11 1·11111t1ag,l1 0111 01 its i11t1:1*111:t-1111111:11 11:;*1111111*1; 11111.1 11ay111•s1*1t w1.:hsit1:.
.·' 1'1·*lU[1£1gl1 Htttlglll 1:1 11€gU11ELLlLJ·It t.11`11.i5 1.¤1‘11l..1lc111:s witlt C21 .111101 Lcrlltillttcti L1.:- 111*11;:*1111: 111:.1
E l1usi111:ss 11111101* the C21 business L1l"·15S5. F\I11t11i11g_ l111]]p1.‘7l'lt;‘li.1 u11til .1E11.1l.,I11l'j’ 211113 '·N11GI1, witl10t1t 111*101
El 110111:1:, C21 *1111:1.1 f1'IUl11J11 11:11* 1'1‘J111.*E1`-l`f131[1`I 11115 stay in bath 1111; (2111111101 11 111*111 Chapt1:1* 1 1 1:as1:s. F11
_| U this ti1111: 1110tlagl1 haltt tht: 1:11:111:1 that 111*: had &I5S1gl'|1E1.1 11is 1111*011:st 111 thc: `1`1‘1:1I1C111SE HEFUEIIICII1 10
11is 1:01[101*ati011. 1-11: t111:1*1:1i.11*a 011111:0d1:11 1111: 111*111:1* 01* 1*0111:1 10 C21 in 1111;* Chaptar T casa. but
ll ll` (ID1`11`111|.lL11.1 10 001111:st 1111: 111*1101* i11 th1: Chaptcr 1 1 UHSE, 111111 1:011ti11u1:11 10 scat; a 111:_t111tiat1:1;l
1:1- s1:1tl1:11*11s11t 11*1111 C2 I. 501:, 10111:1* L11,llL$[1 1111111011 211, 21.11.13 1*1*011*1 1}. `·.‘11il1ia111s 111 K. 130111101, i11 lélxltihiit
Ls -CA-J 11111101100 1101*1:10. C21 100I1 1111 111.}l1Ul1 1.0 Ull11.J1LZ1..7 its 1..1.·1111·1·11:1 1·1;..;11ts atgaitial. M0tluE_t1 111*11.11- it
H 011tai1101t 1111: C11.? 01*111:1* 01`1‘1:Ii11tQ 1t1:spit1: thc 1111:1 that C21 00nti11u1:11 10 insist that 11·*10t1ag_11’s
15 []lll'|Z1·D[`l1i·1l 11ssig111111.:11t 11l` its CD1]11Z`Elt.Zl rights 10 l11t1:g_ri1y was iiwalid and wi1l10ut 1:0ns1:n1, 111111 that
_ l*1110t|agh was still tha ti*a111:11is1:1:. '1`his issue 111` I1a111:his1: 0w*111srsl1ip was 1101101* fully and 1*ai1*1y
ih litigatatl i11 11*11: haitluuptc-y pt*01:0·:11i11g,s 01011111:1 1.ZEL‘iL€.
â€1'1*11;: Chapttcr 1 1 111011011 *1*111 11:1101%:111111: 1111 1111* 111::111*ing in .11113.* 21.1113. C21 1'C1]1&J,11'IEt.1
1-E a1la111a11t 111 its *1*01*11sal 111 1'115g,Cl·1`111l.C with l‘·1110t111gl1. 11»*l11tlag,l1, Eliilillg as 110l:1t01*—i11—t111sssssi011, 1111:11 a
lg 1111.1Li1.111 Lu 1111110 1111: 1::111111: 1101.1:111 1111; l`r1.1.11.011is0 Ill_gI`i.T•Z1.*1'Fli.1I1l; 1'.'I€¢1Z1ZI].'1:1 thas 11101*1011 1*1.11 1u1i1sl;` 11.*111: 111;-11111
R U 1*11 tht: h1:a1·i1*1g_ C21 i11sist1:1,l that 11110111*1 ty |`1-11111011 it (1·l.‘!l`!1£5L1 0111111::1 t|11: 1i*a11011is1.: &J,gI`·E121`11CI1l] pay
I _ tha 1-1111:;.5011 k11'1'C1:11"11g1;‘13 111`1*0yatty 11.:1:11 in 1111*: a1110unt 1]1"i1iC15,1.]1i;l1.i,1i]'i-1 |`w11l0h, as a 1111:-;:01111011
A ahligatiun in 1:11111:1* 0as0 was 11is1*:11a1*g,1:11 as 111 1*111011agh when 11*1} 1:1:0-1:1111:11 l1is l;.:11£1l]L•'.*$1†T 11is1:11a1*g,1:
E2 in .111111: 21.11.12] but still i11sist1:1;1 1111 11l*1tai11i11g 1111: 01*111:1* 1iD·1' 1'€11E1`1115·|J. ‘1‘11h1:11 11111:1:11).* asl11:1.l hy 1111:
23 1:0111*1 what C21 w0t1|11 110 i1` 111C 111I1:g,011 a1*1*1:1u11g1:s 11*010 l;11*011g,l1t 0111*1*1;:111, 1:0u11s01 101* C21 51111.12-C1
211 that C21 w0u11.1 still t·.:1*111i11at1: 11`It.} 1’1a1*1:1:1111:11t.
gb 1`1*1ut111g11 1111.1-.10 0. 1:··1.1:si11·=;ss 1.i1.:uia11:111 111. 1111:.1 1.11*1111 111111: 110 w1:11.11cl 1‘1L1.VE' 1.1:1 t*1a·1i11c|_1.|is11 1l11s tr"?]
26 r01ati011s11ip ,1.111*011 C21’s i11t1a11sig1:111:1:; 11111 111: 1:011tinu1:11 10 1:1lJl1:‘1TIp1 10 110g0tiat1: a 1r1`t1t`1Il1`11.1_1|,1Hl
S1:tt11:111t:11t, giw.:11 111111. 11101*1: *11.11:11: still 01*1:1 11JL11` ytzars 1"1:111ait1i11g 111 11113 l§C1'1`1`1 13111111.1 1’•1g1··1:1:111c:111,
ES`I.`I.`II.I1Lbi:`l.Ij' Of pleading] · 3
1 uml Liltll Mottugit lmd i1`l\·'L‘}f:i[C·Li sttbstoiitiol zuttounts ot`mun¤;y in C21 ibatnotaiso EA.i.Z·LlLlI:i1°EiL`)11 costs,
at royulty and othor too poyxitonts, pnnohusos ot"p:·oduots und soryioos hom CEI ond its oI'iilint‘::s,
3 ond iuttndutod C21 logo produots, itiotttttiiig on oxpotisiyo outdoor iightod building, sign Ibr his
4 t1·l`liuo.
By Iotto1·ds.tod Ptttgust i3, EUG} [hotbn: tho Ui·do1· lor R.o1iot`wt1s ontorod in Ch. 11 ottso] htiotlogli
ii otibrod to divost und diso11g,t1g:; his CEI olililihtion ond busiuoss dross within ui‘:.:ttsot1t1bIo Iillilid,
i’ und ttsltod Iio1‘ u II]LI|11CEEI1'}* I,'Ei`f`I`li`I·lll`b§IJlllLZ1ti.Q ol` S`] E,5I'}t}.·t}U, buitsgg, :Jt1·o—ItoIt"oi` tht: Uljgilltti titutoltiso
7* cost. 5::::, tottor doloct ,·*1ug,t|st I5, ZIJKIE: Trout IJ. *t“¤·JHUi.tl`I'1§i· to bi. J.5o:ui:.u· in Ektiihit oo::o:.:::.1
ltoroto. This s::ttIot11::nt oI’tbr woo roiootod by· no:n·::sponso!
[I Botwoon U'•i.Zi.£.J·i`I|Id1' lo, 2t.tti3 t111:.| Noyoriihor 21**, 2[iti3, oounstxi Ibr tho purtios oxoliongod
__ IP soyorol lottors whioh sititply tiontoitstnito [I) Iviotloglfs dosiro to sottto thoir disputo amd {2} tZT2t’s
J intno·isig_onco. Soo, tottors i:1 Exhibit "A" onnoxod horoto.
Ll Hy tottor dutod i]o·::o:nbo1· l, 2Utt3 [soo Exhibit "Pt" tuutoxod hototo] i"w"iDiiI;1gi]iS t1tto1·n::y
V wus notiliod that u lawsuit hud boon Iitod ond tht-1t thong would bo, in loss thou 2¢|· hours, it hoatring,
13 on tho tssuo ot iiijttttotivo rotioti 1221 know au tho dino it tilod this lttwouit tlntt {1) Ixiotiugh would
1 _Q stipuhtto to tho 1·olioI` sought by injunotion, and {2) Ivtotlugit had ot’to:·od, zutd continood to ol’l1:1·,
_ I to sottlo ull claims botwoon tho portios tbr tho roosottobto sum ot`$ t2,5UU·.tJti.
I J I11 titot, ut tho ltcoring hiottoglt did stipuloto to tht: "I"l?tO und tilt ponnuoont iuit:n::tivo
l 6 1"L‘EiiEl`:*iU1.tg_i1i, snhjoot only to ta rouoost tbr tt rottsonohlo I.i1`t143 to nud:o tht: i1ooosso:·y oliautgos. Tho
H oourt ooooptod Mottttgiiis tu·g,uinonts ond sot oortuio timo limits tbr disorigttgoitiont with which
†$5 Iviotlugtt uompiioti.
]_g.J i1uw:.:yu1, C21 wu:. not sotisliocl. Knowing, t1·nut Motittgh wuz: u rooovorin; butmkrupt. und
E U knowing, that Intogrity wais undot Cfhztptor I 1 sttporyision in BttnI·;rupt:;y Court, it porsistod in
_ pursuiitg, ntonotory di.l1`I1EigCS which it know, or should Ituvo known, thttt Motlogli could not pay
El und oould not bo sutisiiod ii't`J·1]1 ztssots oI`]oto_u:‘ity. Soo, Iottor dotod Jtutuoiy 9, 2004 tiont K.
22 ijonnor to D. Wiltimiis oonoorning, o sottiotnoitt; proposol, in Exhibit ’â€.-*‘·t" oxmtzxod hoicoto. C21
23 i`Ltt'i.i1CI' know that it hod providoti no ii·un:;t·:iso sorvioos to Iviottttgtt during tho posI—p::tition
poriod, ond that iIli,i;‘g1`ii§}' ftssttrottoo Roattty, luo., dbd Coittttty 2I .·'i°i.SSLi1'&I11¤.ZI5 Routty did not oxist
Eb i1`1 tilt: CL;IItLl1`_}·' 21 'Cutputtttiutt .‘:»_}'¤lC111, i.uuiL1di11g, tiiuzso ports i.111;o11:.it:d for public: Ltooouu, ointco ut
26 Iottst liobruury 2titJ2 [_I·::1otta1g·,h’s hrokcntgo oc-tuully disau::|1::ur::d front tho pubtio ttoooss portion oI’
tho C2`t systom in EUG].
I Summary of pleading] - é
1 ll. }`[]|}“\ZiII]lB 1.1111
2 11111:11··11111 111111 1:111:11 1*111;·:111111 1:11111: 1111111 111111 s11111111ss 111 s11[1p11r1 1211311S 11111111111 1111 11111;11·111:ys’
.. `1`EEH. 1â€111u 1111 111 25131. 11·1`111·: 1?'1·11111:111111: F1g,1·1:1:1111:111, 111 11111: 43, 11·11v1111:s, 111 ¤31'11I1UIâ€Il 1111., 11m1:
J 1. P P 1 D P
__ *’·`1"1··1¤ 17*1 11.1·1:1e1111:111 11111111 13111 (ZC1·1]51.[`1lEL1 i1[_ZCUl'[11[`l|?; 1.1,1 1111: 1111.1.111 15151111:: $11111: 1.111 N13‘1‘•1·‘ .11.:1"1i1:y. . ." 1*111
111111:1* 11;:1111:11 briuhfbd 111 111151 1:115.1: 10 111111: 11111*1: 1:111311 1*111:111* J111;=11:y‘ 111.111111111y. 1·11Z1y·.11:yu1, 1111: 11111:11
J p1:1·111111111g 111 11111LJ1`1'1Cj.·'S? 11:1:1; 11w11111s 51313111 111 111: 1"[}E15UI'lH.1]1_}·` S1II1111.1.l` 111 1111: 1:111111;: 111’1‘»T1:·11-· .11:1*scy
6 111111 1*111;:111111, 111111 1111: 1*1111111 C111:1.111 (T111111 1J1’.FL[}[ZJLT&l.IS.
1 111 1}:111:1111 1:111111s, 1111111‘111:y11’ 11:111; 1;:11*111111-111ly 1111: 1`lt}1; 11:1:11111:111h11: by 111C |)1"13‘•1·`1.1111l1g. {11111;.1 111
1 13.11 111:111111 1:111:u111‘ by 11111111111;1 111 by 51`1;11|.11£12.f. 11111:1111 l’i|11:I111c 511:11.1. C11. 111. vlF1lL1lEI'I1lESS S111:’1·, 411
E] ILS. 2411, 25*1 [19751. 111111 1i·1111p11111111111 1s 1111111111 11s 111115 1`111111>1·11:1111 11.111.:* F1111C1 is f111111w1:11 by 1111:
1 N1|1111 1.Z11·1:1111, 1111:111 11:1111:11 111111 .¤1.11x111111. C11·:11 111 In r1: B1:rt11l11, 1*1111. .1'11Z.—1I4-l11£1T-l}I’I?I 19m Cir.
:1
1|.11'22.·"2l|·[I=1·1.
`I. QI. . . . . , , ,, . .
111 I11 rc 131-;1·1111z1., 1111.} 1*1111111 C111;1.111 1111 1111111:11 .1*1.11.5 _ 12-.:41 .1111.111 2lL·1_11i_1|1£1·‘\·V51I
t. I-"
1* 1* "A.|1.S. _' 12-3111.111 .111 11:111111-;:s, 111 1t1‘11111:111 1111. 1I111t
P 13* P
_ _. “|_i_|11 1111;.,1 1;1_11·111=·1;111r| 1-111111111 :1111:111Q 11111 (11`11 1;1.1{111‘&11ZE- €JL[!1'131é15 DI
"° implied. 1111: C-1L1·Lll`[ 11121}* 1111111111 1111.3 SIIUC-CHS1111 111111y 1·1:11s111111b11:
1 ,1 1:1.11·Ul'1â€IU}" f1:11s."’. . .
15 °"1`111: I11.1·1z111·111 1:1111111: l'·1.‘E£.l|.l1I`15S 1111111: 11111111 just [111;* 1:111s11:111:1: 111`
11112.71.JI11l'E`|·1.Z1Q..1"|1*Z1`1.`111"£7.I1'.!1·' 11. 1‘·'11.1:, 1rjU.f1.1"fZ. 3.13, 35 5, FEE 1*.21.1 15112. 61“1*·.F
f *5 {.11-*1i1’1f1,1("1111‘111111:y1’s IE1:11 1111: 11111. 11p[1111p11111.1: bk.1H1.:*1L1 1111 111c 1111:11:
1:111s111111:1: 01.1:1 11111111111;1 5011113*1-\·'1`1CI'LÂ¥ 1111111: 11111g,11111;111]â€}. T11 1111:
` '1' . . 1-
I ' 1:1;:1111*111y, 1111: 1:u11111111:1 H`IL1E·11 hc 11 SI.l1J';§11,11`I1l‘•fC [111:1111;1111: 115 1E111111.ZL11iJ·1`|.
1,, 6;1.111·r1’1.1· 11. .1111,1111·I11'1c 1‘1·'111’ '1' .1.Q'& 1.11.1;., 132 .11.1*1:. 5 2 51*. 5113, 1511?1' P. 211
` 11217, 1*1111* (15*1112,1 ·["§ 12·311`1.1111f1j [11pp111:s} 11s 11.Il11Q, 11s 1h1: 111111sc
LU 11I`111:111.1'111 [11 l(1I'L 151.111111 111.111 1::1151 11111 11..11 1111.: 1111:uu-11 c1‘1:` 1:111; UlJI111'lIC·1Z-H}
[1:111p1111s1s 111 1111: b1·1g,111111); su: 111110 1Ll1u111.1·1·1·11: 1C.`r1:11'11 C111;11.
23 11. C1.15: 1*11111ur 11; 1£`qr111]1. fQ.'11.ry1., 1‘?E1‘.¤11·iz. 155, I 6..1, H?'6 1*.211 .11 U1'},
11911 {11,11,11. .1994}.
Z1
yp “"1J•,·'h1;·1·1; -:1 1:·13r111·:1r_·1 r1·111l*:‘:1]y' 1*-2 :1 1111111|111 ]’111"1·E1Z11E-11115 111 11113 111311011.
. /. 1 . . 1 . ., .,
1.1111 11111 1111: U351Cf11`1{·l1 1111.11111 111 11, 1‘1:1;111.11:1·y 111 1]HI]1tIgC;‘H 111111111 1"·1.1{.t:1. §
2 3 12-311I .1111.1*1) 1s 1111]:1111}:1:1. 1T.`11.1·1111111y {.`111~11·1·:1*1: 111 1`111i:1111r1111.1· 11.
.'S111·111cr CO.*1'1`.P'1.Z11Cf1°11'1,g"|Z1:`·1‘.I1., 151E1’.:11·1z. 81, 83, F6.? 1**.211* 155, 15?
21 ·[}.f1_1'}LfJ.1I51;1Hr.E'1)j]. "|11 1111111y;>;111;·g, 11111; 111:111:, 1111: 1:111111 1;1111u111 1UU1C ID 1111:
111n111111·11:111111 111111111: 1.111`I1.]'|15 1111111111 1111111:1 1111111 1111: 1111:11: 11.11111 1:1f 1}'1·1;‘
Q 5 1111:111.1111g,s. [E111:11 1.111, 11110 1:111s11:111;-1: 111`11 lJ·[.1l11.1'£.11I1Q`11`11;1`1` 1'1'11:t1â€131}' 11111: 1111:
__ _ p1111111s w1111111 11‘111111:11.1s s11·1l1111g 1·1u1g,1: 111* u111:11 1)1`111;*1` dbbs 11111 1:11111-*1:11
A 1:11s11i11g 11.11111 111111 1:11111111ct C-1k11U1S.H.1[1i!1:Zf??£.S'1E_]1’.1Z1.1!'1°1d1r1‘.311Z1!I.fs', L.L.C.'. 11.
[Summary cf pleading] - 5
—' C.'11.1‘1erxl1·fc11f0r1. free., E95 zlrfz. 1*1*}, 1'J. (1 ,t’...¤1·1‘ 11;:, JJU {App.
{ BUUU). "
A
3 111 Re111|i111.1 v. Pantllserj 141 Ns]. 292 {HWS 1, 1he F~l11p11:111e {211111l efi\lew .lerse;l· sel1.l11w11
.1 the t5l..3.!1·d£I.l'{:l.$ E¤1=01·1.1ing the 5'U1·'&ll'{.l 1.11':11l‘1‘1r·r11sy11’ lbulit llI1dEl" E1 [E13 Slllllilllls SILIELIKC.
_._ “'l`l1e starting puhnl ln l1`WEl1â€Llil'l_Q, atte1·11eg,-·s’ lines is the
deler11·1h1all·1111 11l` lhe :;10£lK$Sl.F.l1`,†wl1lel1 equals the "n¤.1111be1‘ el` }111111‘s
s rease11al1ly expendell 111ulliplie1I by a I'L3i15U11{;1k}ll.‘3 l1e111·ly li'El[E‘3.â€
“l`
“ l.5{a] ealalegltes the "li1ete1·s le he eullsiclered ia clel·e1·111i1·1i1·1g the
Q rease11al1le11ess 11f11lee," wl1iehi11el11de the lbllewiag:
13 {1] the Lime and l11.b11r 1·equi1·e:.l. Lime 11·:1veIl·;·.· anrl rll‘lW1111lIy 1‘1‘l`Tl1c q11esli1.11‘15
i11v11l1»e1l. and the skill 1‘e1.1l1isilel•:1 pe1·l·i.11~111 the legal service p1·11pe1·l;l·;
1 il.
(2] the likelihtmd, ifapparetlt le lhe elleht, llnal tl1e aec-epla11ee ul`ll1e
li [1a1·li1:11lar empleyirneht will p111el11de E_}lll1C1' e111pl11j*111e11l by ll1el11wg.1e1‘;
1 T. ,, .... . . .
‘ 4 (.1} the lee eusl11111a1r1l]·.# £.5l`!El.L'gC[.l 111 the lULZEll1l}“ for s11111la1· legal se1·v11:es;_
Z|.=? _ _ _
{4} the a111e11111 lnvelvenl and 1l1e results ebl,a1r1ed;
l 5
5 the1i111eiimi1·atie11si111 esed l:1 the elie111;erl1 the ei1·eu111sla11ees;
l __ l?' Ill
lj
l_ {6} the 11atl11·e and le11gll1 11l'the p1·11li:ssl·;11121l 1·ela1ie11sl1ip with the elie11l;,
., Q {1*) the e:»1pe1·ie11ee, 1·ep11lalie11, and abilily el`ll·1e lawyer 01* lawyers
pe1‘il:11·111i11g the serviees;
1 El
(S) wllelher 1111.: fee is lised er e1111li11ge11l
z 1;
_ `*`l'l1ese ljl.1lt.ll§O]`5 must i11li,11·111 the eale11lalie11 el` the 1‘e11s·e11al:1le11ess 11l’ a lee
J L award in this and every ee1s<:."
22 3 _
lll. Atturrnevs ltees Llmlcr the Contract
?l . . . . . .
l’arl1g1*apl1 20, at page =l2 11lll1e l*1·a11el·¤1se Agie-e111e11l·, deals wlth alt111·11e;·,··s’ tees. lt sl111ul1|
be kept 111 1111111.1 that the agneemenl 13 a ee11l1·ael el a1ll1es1e11s. lake ll 111 leave lt, 111 whteh Mullagl
25 had 1111 aegetiati11g pawer. ll was d1·al`lecl hy C21 and 11111sl be slrielly ee11sl1·ue1;l agamsl the
2ii dlaller. The entire ag1·ee111er1l is se e1111sl:1·111:le1llI1a1 il imposes virlllally 110 speeilie £llrlll'l`l'lEJ,l.l\*C
[S·e.11:1111a:y ef p1.¤s1e.cij.:11g"I ··· Ll
1 ebligatiuns en C21. l*`lI1L`I1I`lg tt breach et tt speuitie written duty ur etaltgtitteii in ‘¤'l1IL.lr.'lIl_'|»"
2 itnpussiblu.
3 l’arag_eipl1 EU pruvides that, "ShuulcI either party ineur atturt1eys’ tees iu urder ta eufuru
U the terms and eenditiuns ut` this agreement, iuuluding, pest—te1·n1 uuvenants, whetlter er nut a
_ legal autien is instituted, the party nut in detliult shall be entitled tu ruiu1I;1ursemeut uf suuh
LI &l,lI.U1'I1L;Ij"S-I fees tmd eests." Emphasis supplied.
E Muvant states, at page 3, line T u1`its Ivlemerandtuu, tltat, ‘°A1·izena law is elear that “[a]
" euntrautual previsiun ter atturneys’ tees will be entereed aueerthng tu its tertns." Read tugettter
H with the uuunteielaints, and uenstrued against the drailer, it is elear that the uuunterelaitns uuuld
9 net and did nut seek tu euihree the terms and euuditiuns ef the adhesiun enntraet, but rather
III were direeted at the "‘spirit" and "intent" efthe cuntraet. t·`tu·t11er, nuwever in de1'autt tvtetlagh
tl may have been. in his ubligatiuns tu CE] [a rnatter whiuh has nut been fully ur tairly litigated].
I 2 CEI has nut shewn the it was, er is, a party nut in default with regard tu its ubligatiens Lu
I3 Ivletlagh [a matter that has been put in issue by lTv'Ietlag,l1’s answer and ununteretaints, and whtun
H has never been fully and iitirly litigated],.
I5 Finally, the previsiun requires that the party net in default shall be entitled te
lll rehubursument u·l·`sueh attu·rr1eya’ tees and eeats. Ivluvant has HDI detrtenstratett that List ever
III paid uut—et¥-pueltet any ut' the atte·rneys’ tees that it seeks tu ruueyer.
la IV. Atturneys’ 1·`ees Lluder the Statute
lg Nlevattt has riglttly painted Out that an award uf att·erneys’ tees under A.l¥..S Q 13-
ml 341 .t}lt_A} is diseretiunary [alse under New Jersey law and Ninth Cireuit law, whiuh applies the
QI law efthe timruut ina diversity ease]. Fur purpuses efanttiyzirig the six laeters uited by l°'v`II*[.}\·`t.t[1Ii
22 eu page 5 uf its Ivieriterantlum, the eeunturulaitrts eannet be separated trurn the euntuxt et`Ci-2 I `s
Q3 uernplaint; tu du su wuuid require a eenulusien that sinee CEI reueived the injunetivu reliel’it
2 °I settght by stipulatiun at the beginning el` the Iitigatien, and ultitnately reueived nune ufthe
25 nteuutary eetnpensatiun it suught, then lvletlugli is the "prevailing party" nn plaintitfs uumptatut
E6 and sheuld be awarded atterueys’ Iiees tbr time spent in delending agtainet these elaints.
[Summary ef pleading} - T
1 '|`|11: p1·1:v111|111g, 111w 1.1:1:111s 111 bc 1I1111 11 is 111:1 11:11:1111.111 111 1111; 111:t1:111111111111111 111 "111·1;··:1111111_11
2 1111115*** 111111 111:1111.: 111`1‘1~1111111g11*s L}L1·|JI11·|31‘(.Z11li1`I'1§1 w1:1·1: sub111u1111111:1;11 11111j1111ic1111:11, 1111]*..3 1111:11: 1*111:1 111111
3 1111:51 11.11:11-: 111111111ss1:11 1111 111111111: 111`1:111111:111:1: 111`111:11111l ·L1E.l111·1:1gCS 111 1111: 1:11;1s•; 111"` 111111:1;11·b1y 111
‘1 Sll1`11LZ1CI`1[. I·111w1:v1:1·, 1111: 1:111111 1:1111 1:111:1‘1:1s1; 1111 111s1:1·1:111:11 111111 L¥{1L111]·' 111:1111:1;: 111 1111·111· 111* 11:1111111;
1* U111:11 p111‘1y 111:111 11s 111111 [SUSIE 111111 1L111]I·1'I`1C}·'1·11 11:1:-s l.1J1·IZ1LiI` 1111: 11111111111 1`HG15 1.~1`1111s 1:11111:.
11 |Q!1.] [‘1·’I1:1‘11111‘11:111s 1;I111111s. 1111; 1:11111111:1·1:11‘11111s 11-111:1: 11111*1111-111 CEI I`I'11}li1J·I15. 1`1.Q1·1` 1:u111111111·y
1 j1111g,1111;111 1:111 1111:11 1111:1111;, T111: w11;111g,s 1:11111p1111111:11 111 111:1:111·r1:11 11111*1111;, 1111: 111:11 y1:111·s 111'IvIu1111g,11`11
E "111:w b11s1111:ss" 1111 111111 111: 111111 1111 1:s1111111s]11:1.l 11111:11 1*1:1:-11111 1.111 g_1·1.11-11111 111 1:111·11111g,11, D1:.11111g1:s 111 11111
11 1'Ii11LI.l'C 111`1111111 1.11 11111111111111111 f.1`1Z`1Q1.11111“G [T|1'1J1]1i1·i 1:1111111:t 1:11: bLl]i:ZC1l1ElI11¤.·‘F:Z; 111 thc 11|:1111:11111: 1.1111:1 11111111
1U 11;::1:11*11 111` 1:11111111g_s, 1;sL11111111:s 1.1·1|[}1'U·1J3131L? 1111111 b1:1:1:»1111: 11111:1:11l11t1111:. I1.-11‘11I11gl1*s 1:11111111 11:1 1:s111L1I11111
1 1- 11111:11 111111111;:51:11 1111:1*1: 1111·L|11:1· i111p111r1:1l by 1I1s1:111·1:1·y 1`LI1i1`1gS 1.11` 1:1:1111; 111111 11111;:11-.*1:11 C21 111 w1111h11|11
1-V 11::1:-111·11s 111 51|1`I11i`.I.l'1}·' 1111111111;:11 b1·11k1:111g_1:s 11l'lJI1`I which 11 r1:11s111111bl1; llilllltlgti 1:s1111111t1: 11111;,111 1111111:
111 b1:1:11 1:s111b11s11cd. N111w1111s1111111i11g, 111-:: 1QE[1`I'11!1E111UI'1 by ':11.l]`1`I.l`1`111.1'}' _1111;Ig_1111;111 11111:11 11111 11:11111:1 111u
1-*1 1:11111111;111:111111111 111111-1111:1·11111i1111s 1111 11111111:s 11·1` 1111:1 u1111 1111bi111g,* 1111111:11 1111:11: 1`l1.}1.·’C1`1.1L1_1L11.111J1':11.*F.'}L1,
15 |Bj 11·1·.=111111111_1::1: 11|`1,11i1,=· *.;-11:1: 51:0111111 1 E`!.1JU\·`1$ 111111 ,1111:;:1:11111:1 111.
1 E 113] 112.1I`L1b1111p. 1$"1111111g1l 111111 11111111) 1111111:1;:1:1 p1:111111111l 111111 1:111*1:11;:1*1111: 111111111·u111c-11;s 1.11:11111;
11 11111:I (.1L|.I`1I1g 1111: 1:11111s1: 111*111111 |11ig11111111. 111 1111111L11111, 111: 11111111;:1 11111 111*1111; 1111 11 li1:1:11s1:11 11:111 @1111111:
1 11 b111111:1. S1111:u 111111-211115 1.-[1.1: 11:111 1:s1a11: 111111111:t 111111 1111111:1·g11111: L1 S·|3‘1J·E1`1$ 111;1w11w11r11 1`lC1jU‘;l·1.I1`I13l1K,
1 9 1‘1:1111|111·11;_ 111 EL s1:1·11;111s 114;‘L1Ll12}1Q1Cll1 111 11:111 1:s1111·; :-11111:11 111:111111],1 111111 1111: I:1111111:r‘s 1:¤:11111111s1s11:1111 1h1:1·1:11y
211 g1:111:1·111¤d, r111'1E11'C is 111111: 1:1111111:-1: 111111 111: 1:1111 g,1:111:11111: 1111111:11;:111 1111I1·C1S 111 s1111is1`j1* 11_111c31_1;,1111:111 111 1111:
11? 111111111111 111`1111111·1111:;·,*11’ 11:1:1; :111111;,111 by C21 1111 s1:1=·:1·111 111:1115. C21 1.111 1111: 111111:1 11111111 is 11 111115,1:
211 1:111·p11r11111:111. 111111 1111‘11111|]11 1111li11111;cd rus1:11111:1;s.
*11 [D] T11111|1111 U`11R1S111I`1Z- SQQQ By is111111111g 1111: 1:11111111;1·1:111i111s, C21 111-11:1s 11111111 p1··11111i11:11
211 1111111 111-:11;:1:1:-1 111 1111 1111: 1·1:l11:1` 1SlJL1g111. -1`1.L1·L’·¤'C`¤·’·L?1', 111 1:1111t1:111 1.1111.11G 1-111111b 1111g11111111, C21 11b1111111:1| 1111.
25 111_111111:1i111: 11:111:111 51)Llg1'11` by s11p11111111111; 11 111111:11t11 111111 11113,* 1I1111111g,1:s; EL1`Id, 11 1:1111-* 11‘1.’C111.11;EL1 1111
21:
[Suamuary cf pleading`] - E
ll &1wu.1'C1 U‘l`(.lEtI11E1gES 111;,11111111. il; |f1e1:u1.1:1I1: Mutluglt 11:11 :111111:1 in his 111.11111}-‘ 1,0 pr11·ve e1.:11111`11T111.t l11ss us il
1* 1:1111seq11e11ee 01`the elleged 111ise0111t11e1 0i` C21.
3 [E-| j,·‘ 0l`Lee111 Q11e . C21 11111 11111 prev11i1 011 111e 11111111.11e111i011 111`11.11g.· 110vei 11r
*1 e11111p1e11 11:11111 issues. lt prev111le1l pri [1111111}* beesuse it 111111 SLl|]1;}1'l1'.}l` 111111111:-1111 I`C5UI,lI1}L7L1: 111111
5 l.`1·£.¢t.Z1.tLlS·l.‘T it is s. lsrge c01·p11r111i1.111 e11se111·1ee11 111 lit 1111·111v11j11 1111110 [l\le1v Jersey], 11111:1 the 1111111 10
6 l’v10111.1gl1 01`1r11vel111g 10 1*~1ev·.· Jersey 1111111 F.Z£l‘Lll'lS€.`l., er 1:0 hire 1‘~1ev·: .lersey UULIITSIS11 10 1:01111001
1lise0verg,= 111111 1r1t.e1·vie·1v 111·l1eers 111111 e111]1l0yees vv11s pr111·11t11r1ve.
E [F] Q§1&g,_lit11:et 1J1· 1i 1.,1111.;,1111011 01*111111 [1[l1Lll`t3 is e1·1L1·e111ely 11r1e~si11e11. 1""1
9 t111.11e11is01· is gGt"1C1'E11l}·' It p0v11er1i1l e0rper1.1t1e11. lt sells lr1111e11ises l1.1l1'1.C l'1'J1'1'11 0F1111hes11111
N l:`lg,l'E$EI1`IDI`1lLS 1vl11:1·e 111e 11111*1:-l111se1· hes 110 111111011 bet 10 11111.1: 11 01· leeve 11; 1.111110s1 11t1=v11g1·s 1111: 11.:111111
ll 111111 1;0111111i011s 1‘11`111e L1]_g,J'.'C¢l11U1`11 11re 11011·11eg111i11|;11e. C21 h11s reservecl 10 itsel1`ple11111·;1,= p0··.ve1· 111
12 1er111i11111e the l1·1111el11se EtQl'GGlTlB1'1/[ v1·11l10111 e0111pe11s11t11111 lt] the 1i1111el11see, thus ere111ir1g, se
13 e11vir11111111er11 111’1111i111i1i11ti11r1 111111 111;-11111esee1·1e1;-. 1*11111* 11'2IDC1`l15E}1$ 111110 r111ses 11 1eg.111111111e l1`l1lLl.L11` 111‘
1*1 1lisp111e v·1i1|1 tl1e 1r1111el1is01· risks 111111111;, his 1i·1111el11se, 11111:1 risks bei11g,l111111e11 11110 lJUl.1I`[ 111 litigste
15 111g,11i11st 1111 11pp011e11t with 11ug,elg,·‘ greater 1·es=;111rees. 1’1·11e1.ie111ly spesl1i11g, Ivâ€101111g1·1 11111 11111 1111ve
16 seeess 10 C21 erupleyees 111 New Jersey. l·'11r1l1e1·, 111: ieetlzed 111111 111111 111;1e111111 ID e11pr011e11 1111111111
11 11ss0ei111es 1111111 51111 11111.1 C21 Lies v110u|11je0p11r111z1111‘l1ei1· C21 eereers i1·'1111:v gave 1es1ir111111311
*5 t11v0r1111le ID him. '1`he 1·e11l estate e0111111111·11t;·,1 is well-1:1111r1e·::1;e11. 1*111 11110111 0·1`11L1111·111:ys’ tees
11* egsinst lv1111l11g_t1 will l1e1:0111e l1110v1·11 ll'1 111111 1;11r11111111111;11 111111 will he seen 11s 1:11111111ve 111111 will
EU 11e1111i11:ly serve 11s 11 1.l1s1111:e111ive IO 111111 ether C21 1l1'E1[1lj1`11S|3 1111111er v1·|111 believes he 111.111 Lt
21 leg,1tir1111te e0r11pl111111 E·,l.§,1.l1I'tE1l C21 111111 111011111 seek leg,111 1·1:111·ess.
22
23 CDNCLUSILIN
2* Rule 13111}, F.1{.C.l’., 1;Le11ls 1111111 e11111p11|s0rv e011111er1:l111111s. *11111011 C21 111s11g,111e1i1his
2 5 lit1g11ti011, 1'vl01111g,l1 wss ·L7UlIl1)C11LiL1 10 essert 1111*;,* 11111.1 1.111 1:1111111s 1111111;-1:111l1;l be GECITIBLI 111 srise 11111
26 01`his 11·11r1s11eti0r1s 1:-11111 C21, er Zl§1J1"1.¢'•1·'·l}1' be b11r1·1:d 1111111 _[`J|..'1l'Sl.ti[lQ. l`11L1I1't. 'l"11e 1·ees01111t11e11ess 01` 1111:
|_S'|.JlJZ|.L1lZI.EIj_F` 0f pleedingf. - F}
" 00111·11c1*0l11111·1s, 111111 1110 1111r011s011111110110ss 01`·LZ21’s 110110110 1110 00111011s11·111011 1.1;,- 1111: L`11101; 111111,
2 1111111111;, [;1101»1111c11 011 11s sc1101110 10 huvc 1110 0-01.1111*c1*0111i111s 1100101011 111 '00 p1*11p01*1y 0I’ 11»l01111,g_11’s
3 C1111p1c1* 2 0s11110, wl1011 11#l01|11g11 1014111*11cd 10 1110 111111k1*11p10y 00011, 1*00].1011011 l1`1|.! c11s0 111`ld 11011011
*1 1110 111111100 10 1.1111111d011 11*10 1:11111111;, C21 0000111011 11111:1 01001101.1 [11LI 11111111110111110111. W11011 C21 11-1011
5 10 1101;,0110.10 11 s111*10p1111011s 1011-1;:1111 [1010111100 01*' 1110 010111*11: 110111 1110 1.I`LlS1iL`J($, I`v101111g|1 1-·.·11s *1010011
U 10 011j0c1 111 011011 c0111*111111.1 1{1E1`1`IE.1.1`1·1] EIIHL1. 1111011011 1’•.·'111G1] 1110 00111*1 s01. 1*11; 1110 110011110, C21 11111.I
F1 11·101|11g11 11:010 1111*} 01111-* 111111101s. 1111111110 1*01110011 10 001110 1111111 1~.·101111E,11 110101-0 Bling 11-0 011110 1`01
11 1S1?.,51`111.1.111, C21 111011 bid $1 :'i,|.1·L11).11L1 1*0 [1Ll1`C1lE1&1B 111G 0|:1i111s 111 1:111111<111p10;·1 0001*1 1_1·1’101;111g11 \'11·'UI1
1* LI10 110011011 111.111 15,21}1.1.UU1. 111 111111 01`111-;0|1’1l1is is 0111101100 01* C21’s 111111 1111111111 [110s00111i11g_ 1111s
`·';' 00sc. ,1Â¥1.|s0. C21 w11s 1L1'1C 0111y* “1;1c111101â€' 10 0101 1J.ppBEJ,1" 111 1v1011111111‘s C1111111c1- 11 011110 |.·Il"|.•1..1.
U c0111111111111j1 011110110 01101*;,1 01*1011 11111111: by 111011:10,}*110 |1|0 E1 1'1$1`1·I'g&I[|1L91111iUI] }'11&1.l`11.U· 011101*,1;,0 Z1il'U11’l
12 1;11111k11101:0;1»*;, C21 11100 1`11011 1110 111011011 10 IC1`[11.l\·'C 1··.#l01|11gl1 11s 1101;11111—111-110ss0ss1011 111111 1111110 21
13 1.2-1,151*} 11*0:1100 011;+11111100, 1:11112.1 10 11111.10 1110 0-ssc c0111101*101.1 ITDITI l§i1111p1;01 1 1 111 11`I11111,1101 T. ‘1'110-110 111-0
" 4 1`11E111§1.*T1'5 01` 1:01111 1*0001*11. C21 1.1*110 1101 1101111; 111 1111;,* 1.111111 11*11-11 000111 111*01001; 11111* 1111010111 11; 111113.1
1 1* 1111110 111111 as El1Z.3I'151j111J1" 111’1111.1-:111*11;,1, 101.11 111 1:1.1.1.1 wss 0:01111110 tlglliflbil such 1111010111 1111 1110 1111111010us
1*1 1111111000 111`110s1111;·,*111g, 1x·’1111111g11`s 1111.`]1.11I.}" 10 110101*111 11g,11111s1 1;J21`s 011111*110 01- 1110s·.:1.1110 11111
1 U(}ll1'11CfU1111[I15 111 111111 01100.
7*11 1111110110 01`w011·;111g 1111111 11 1100111011 1`1*1111c11is0 10 1011111111111110 11 10 11.]."111·}‘13.11Zf1*`·-1g*..*3[1C1‘.'E1.1L11'1g
W 0111115* 111111 11011111 110 El 110001*11 10 C21. 11 t11}1.lg111. 10 110511*01* 1.1110;.1111;,- EIILL.1 11111-0 MUt1ug11 0111 111` 1.110
2 U 1011I 0s1111.c '111.1si110ss.
21 .1ii1.}l' 111l 01` 11].12* 1'1.1·1'CgU1Iâ€Ig, 1“CE·,l5ll1'1E1, 1*110 001111 0111111111 01101cis0 1111 1.111·1·CI`1tL1UI1I1.11 L1U1`l}·' 1111 11111111*d
22 0*1`111101110g,»s’ 100s 10 C1JL11l11'].·' 21 C01p111‘01*1011.
23 U111011 111111 2“d 11111* 01`F0b1*11111*g1, 2001.
21 *111.11 C1FF1C 1311QT-I~11_E'1 1}1@
211
E6 B1: 111
D011 P. ‘1‘1*'111i11111s
[E1:111.1.111€1J:"y uf pleading] — 1.1.1
1
2 L`}R1G1`NAL c:¤1`L11•;: [131'*5gU111g
A 111ccI n:1+.:utr0111cully this Em clay
`° 1.}1`1:G1'!I’L12`|L'}', 211·U?, wi1l1:
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Uuitcd Status Distric-l Court
5 District 01* Ar1z::·m1
401 WcsL ‘·.’·.*`us111r1gtc>11 Sm:w:1
6 P11ULE1`I1K, AZ S500}
I? COPY 01* '1`1·lE 1—`OREU1NG
S 111:111011 un 1·`Ltb1*¤.11u‘y Bm, EUG? 10:
Q 11:111 Uawid (1. 'CEJ,1`I1[J1J·B11
11.5. 1}is1·ri:;1 Cmurh.
1 0 Suudm 1`Jay U"f.Z¤1mur l1.S. Cuu1·tl1uusc, 51.+:. hz}
·
12 1¢1r:vin J. 13·01111¤:1‘. Esq.
] 3 l*'1:r111c111u1·u Lrzug, 1*.CL.
30113 N. Ccmrul Ava:.
1·¤1 Suite EGM}!
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15
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22
23
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EXHIBIT A
= ,*:1 ‘ ‘ "‘._
1::115 0 11111/4--1 ·
FI0aI Estats C0rp0rat10r1
`I G1:1r115.1111&1 D11111:
I-'0rsi·p1.101111.1. N0·11·.· 001001* 0?05»1
E1·1.1s1r10ss {EJ?3} 4215—0'1’00
Fax {0}*0} 400-0011
F0h~111111v 5, 2002
1’1£.R.SU1‘·i1\L 13: CON F [1JEI\1’t‘ {AL
lZ}111j,111s11 B 1v1011ag11
CE1~1'1"U1Â¥LY 21 Assur111100 R011111;
11117*5 ‘1.1···'. Indian S0110111 110011
G0011}10111, AZ 1153315
110: 1**10111.2tEJ 01`T01111i1111ti0n 0f CEZ*~1TL11?.‘f 21@ 111;*1.11 1:.stat0 F111111;-11100 .1*1;,1 001110111 (1,110
“P1g1‘00111011t") #2210100001
[10111 1v11.M011ag11:
111 S01110111111:1 01` 2001 1.1.11: advis011 FULL 111111 }·'D1.1 1111:10 111 1.105;.1.111 011110 1011110 0f 11111 111111v0-1011:r0111:0d
Ag,101:11·10111 `1'1Z][' 0p01·ati111·; 110111111 1110 111i11i11111111 UI'1|Z1`?.111l1g st111111a111s. W'0 sp00iH1:1111y 1101011 0111 right
t0 t01111i11a10 1101.11 .1*1g,1·01—:1110111 in 1110 0110111 51011 1111101.1 10 0010 1110 d01`ault 0n 111 L101`010 D000111h01· 31,
2001. 1 1111110 110011 a11vis0c1 that 11011 1011111111 in 110111011 01310111* Agn:01110111 1.151 y0u 1121110 1101 101111;:11100
1110 vi0111ti011s 101}:10110011 111 said 101101 11111:1, 11.11 a 1*0111111 1-1'1lE11'01L.'¤1`, 3111111 P1g1·001110nt is h0r0by t0rmin11t011
01`11:1:tiv0 1·`011ru11rg 19, 21102.
'1`1-:1111i11111i011 is h11s0d 110011 1111: 11111111*0 0111*1‘11t11:11is00 10 [101101111 its 0h1igati011s 11111,101 tht: Ag,100m0nt
as 1`01101vs1
{1.111bp01·11gr11p11 ITF) H111 1110 1:1:1;:111 1·,101:111t111ut101: 01 F1'H1`1C1'115Cl$ 1111111 111:1011* 11-IE 11"11I1111"1u‘1I1
U1Z|·C1`1,11Q111g s1a1111a111s s0t 11:11th in 111is S11h11a1‘ag1·ap11 F, 1:1`1tIâ€lC1'11SCC 111111 00 1101111011 111 1.1-01111;
s01ti11g 1111111 such 1;10110i01111y 11111.1 at Lh0 01111011 01` F111n1:11is01, F1a111:11is00 11111;: 110 [11110011 011
{1100011011 f0r a p01·i0d 01` 11.01 10ss than 111100 [3) 1110111110 1'lD1' 1111110 than six (0) 11111:11hs. lt`
s110I1 0011010110;,1 is 1101 001101:10d within said p10h111i011111·j,1 [1·C1'.`1D1.1, 1*111u011is01 11111v, at its
01111011, t0r111i111111: this !tg1‘01:1110111. T110 111i11i111111:11 0p0r11ti11g sta11d1111:1 10q11i11—:s that
Ft11111;11is01-1 $111111, in 01101;: six 111} 111011111 001:11111, 0051111111-ig, W1111 11. 1:1;a1"1;1nE_1_ pmnr 11s1111:11ish011
by F111111:11is01, 111ai11tai11 a 1101111110 0f 1:10s0d 1JL1H`1I`1L¢SS 011 which s0r1·‘i01—: 10011 11av0 001.:11 1:111111
$0111010111 10 p1·01;1u1:0 1`€;i‘··`L`!1`11•.1E (101 pu1·p0s0s 01`d0t01111i11i11g 00111100 1`01:s) 01101 1111011 [1011011
01111111 10 1101 10ss 1111111 1111y 1101*00111 150%) 0i` 1110 11110101;,0 101:011110 [101 pu1110s1:s 01`
110t01111i1·1i11g 110111100 1000) g0111:1·010c1 by 1111 t1a111:11is00s 0v01 su011 si11 {15) 1'1`1Ul'11Z1`t`[Zl·€1.`11]|·1|.1:11'1 1110
0111110 1110111 CDIIHC11 01 111 SLLLZ11 1100;,1001110 1.11-00 as Fr1:1110hi 1:111- 1111111 1011110111111111 0s1a1:11is11 110111
111T1€.*10 1.11116.11
A (3001111111 [2001;:0:111
For the period from .iuly 1, Zlltll to December 31, 2{.l1Jl your otiicc revenues were $@1,420.50. The
average revenue generated by all Franchisees in your local oouncil was tE¢lbt·§,o9¢I.*Jo during that
same period. This malres your revenues 12.89% ofthe average, which fails to meet Ccmury 21’s
minimum operating standards.
T o date your account balances are as follows:
Unbilled Closedi“Unpaid Transactions: $5 6Ll3.?l
Audit liindings Billed to Date: l$25,425.’F5
l*·~lational Advertising Farid Contributions: ii 1,967.04
Minimum Royalty Fees Billed to Date; Sl3,=¤l2?..6·L`r
Promissory Note: S 3,l·¢l5.¢l·l5
Finance Charge: til 3,69â€.l.—45
Non-Sttlllcietit Fund Charger l l.36l`l.3E}
'l'{]TAL: $46,906.69
Please remit a check tor the entire balance to the attention of Sue Skidmore, Vice President of
Operations upon receipt oftliis letter.
We reserve our right under the Agreement to conduct a post termination audit of your records. its a
result of this audit, additional amounts may be due lor ltlational Advertising Fund (NAP)
contributions and service tees, and in that event, an additional invoice will be forwarded.
For your ready reterenee, l have enclosed the procedures set forth in your Agreement which you are
required to follow immediately alter termination ofthe Franchise. We will be conducting a post
termination site inspection in the next several weeks to determine if you have complied fully with
these obligations. Please be advised that failure to do so will be met with swift legal action by
Ccniluijr 21. "1"l1z1rn.l{ _y'o·Lt lu Lt·i;l.vt‘u:‘.i¤B {01* yuur inrtittetllute ¤:rJ0p·3r;1tl¤T¤I‘l,
Sincerely,
Century 21 Real Estate Corpomticn
J" » -. `
];L,·’.·1 _,l·*f {in.?
Jolin Kornfeind
Senior Vice President of
lirancliise Sales ai; 1·*td1‘r1inistration
ee. Jake btanton
Dale Grrter
Kim Link
Cheryl Defaolis
Sue Skidmore
Chai leur: Al;.·l.t·:.·o-el
Legal File
13. l*‘l·tUC1EllUI·*LI£S AF'1'1·iZR 'l`ERlltillN.·\Tl[}N
lslpett terrrtiiiatiert, (inc-lutling expiratien, assigrunerrt, er transfer} el? this rirgreerrrerrt Fer tmy rcasett
lranelusee shall cease te be an autherized CEl¤i'l'UI~tY 21 iiarrehisee and shall de all ef the
fullewrng acts a.rtd things, each et` wlticb shall survive the terminatien ul* this rlrgreement and shall
rerrram an engeing ebligatien el` liranchisee:
A. Fremptly pay liranehiser all srrrrrs then raving lium l`·`r·anchisee tu liranchiser, the Nrtl-`·'
and lu l~'ranr;lrrsee’s Brelter Cerrtteil, il" any. Premptly pay Francltiser all srrtns then ewing iinnt
Francbisec te Fnutcliisur, il·'any.
B. Pay te 1irttrtrtlt·isr‘t·|’ the six percent (6%} service lee, plus the twe percent (2%) NAF
centributien, based upetr tlte grass revenue ultimately received trem any transaetten in prucesa na ral?
the date el` terminatien and the sis percent (6**/rr) service lee, plus the twe percertt (2%) NAP
eentribatiert, based rrpen the grass revenue ultimately received item any rcierral sent te er received
litem any ether CEl\l'1'UTtY 21 eflice prier te the date el`t.erminatien, said srrtn te be paid premptly
aprte r·at—.nipt ef such revenue by liranclrisee. .a.dditienally, Franc-hisee shall pay liranchiser the sir
percent [6%} service lee, plus the twe percent [2%] NAB cutrtribrrtien eased rrperr tl-re gvrtsa
revenues ultimately received |`ren·r the clesing cf any transactietr ecerrtring alter terrnitratien hereef,
but the listing fer whielt was initially preeured by Franchisee during the time litaneltisee was
nperating the Franctdse r,rrtrler this Agreement.
ln the event that Franetttser shall exercise irs r-ight under 1-tamgrrrplr Q1`) rtf this Agreentent ie
req_uit‘e a tixed menthly 1‘~l.·‘it..F cenlributien payrnent, Ernrtehisee shall pay te Franchiser a pre—ra.ta
pnrtiun el` its l‘~l.a..F eentributien ebligatien lier the mertth in which Franchisee is terrninated, in
additien te any service fees te be paid pursuant te this Paragraph 1E.
C. Irt1.r.1n:eli.—.tt·e-ly- and pet·ma11r=rrtly t‘list;0t'1I.it1t,l.e The LISU Ol`- all CENI-l"l.ll{Y Zi iidttfks,
including, but net limited te, the preprietary marlt “CEN'1'LlRY 21**, all similar names and nrartrs,
and any natne er marlr eentaining the desigrintien *°CENâ€1`l.lR"1* 21**, "CEN'1`URrY**, **21** er any
ether name, desigrtatierr er marlt, er similar celers er lettering indicating er tending te indicate that
liranclrisce is at ever was an nutberized CENTURY 21 ftarnchisee. Fer purpeses ef this
saeparagraplt tttfl, CE,t*~l`"l'i.l`R"t' 21 lvlarlrs shall incltrde any demain name, eleetrenic mail address,
ttniversal reseuree leeater, internet er ether etectrentc ncrwrnlr addr-ess er- idenrtttar ttsetrl by
Franchisee which eentains reference te "‘CE[*~lTL|RY 2l,*` “CEl‘»l'1'lJR‘r'," "2l’* er ‘*C—2l** therein. ll`
llranehisce is a cerpnratien er partnership and “CEl`~l'l`U1i‘r' 21** is a part et` Franchisee’s eerperate
er partnersl·dp name, er if Franchisee adapted att assunted cr lictitieus name (er its equivalent)
centairring "CEl\l'l`Ul*t‘r’ 21**, Fr-anchisee agrees te immediately cause its gcverning decuments,
audfer its assumed er tietitieus narrre rtuemaenra, andvter r·egterr~atintt, te be amended te delete beth
the werd “CE-N'1`Lil?.‘r’** and the numerals **21** and te previde Franchiser with decuntentatierr that
such chrurges have been made. l·'u.rtltertnere, Ftanclrrisee shall net prcrnete er advertise the fact that
the Erm was fernrerly a lrancldsee er aitiliate uftlte CENTURY El urgarrizatien.
D. Ptt.1trrlrtly·deati·e_y, rrr- arueenrler tn Franchiser, all statienery, letterheads, farms, manuals,
printed matter·, lihrrs, beelts, cassettes, videetapes, licensed settware and advertising cenratrrlng
CEN'1`Uli'Jii' 21 ls-larlrs, inclrrding, but net limited tc, the pruprietary mark; “CE-NTl1R‘i’ 21**, er any
similar nanics nr inarlcs cr dcsignaticn nr mark indicating nr tcnding tn indicatc that l·`ranchiscc is nr
was an authcrizccd CF`:l‘~l"l`LtltY 21 iianchiscc and prcunptty rcrnrn tn Ftuticliiaul any sqnlpl-nant
lcascrl ctr isnt ln lirancliiscc.
E. lmnicdiatcly tuid pcrmancntly discniitinuc all advc1·tising as a tIEN`1`LTRY 21 Iranchiscs,
including, hut nnt limitcd tn, thc innucdiatc rcrnnval cnf all signs frcm l·`ranchiscc‘s nllicc which
CUIlIEH1`1 l1'1t;* CENTURY 21 1‘·rInr1c.s cr u1;hcl· idantifying n1ark‘~=, and this irrltrlticllults 1‘El’1itJ“•t'£il 1"1'lJl1`l l‘l.l1‘»'
prnpcrty thcn listcd far salc cr lcasc c·1` all signs nr sign pusts using CJEl*t'1`URY 21`E lidarks cr ntlicr
idcntilfying marks cr cclurs, including, hut nat liniitcd tn, thc yard sign pnst and crass arm, and any
yard sign nr nthcr sign using cnlurs andtur a ccnllguraticn similar tn any CE1~5'1`Li1~l‘r' 21 yard sign,
all c·1" which liianciiiscc acltnnwlcrlgcs ccnstitut prcpr·icta.ry nnclc di-css itcms nt` 1·`ranc1iis·i.n· and
wlllsi-l Flsnshlsss has mt nssrl at raw timc irt thc past in husincss prinr lc 1`·`1anchiscc’s afiiliatinn
with thc CE1\E'1`l.11`·L"r' 21 crganizaliun. ]l`l:'|l'E1lflUl].lSt';‘t‘J fails tc rcrrnwc thc ntticc signs within tc11(1l})
days allcr Lhc c1’li=:ctivc data nf thc tcrminatinn nf this Plgrccmcnt, Franchiscc hcrchy grants
liranchiscr Lhc right tn cntcr ttpnn1*rancliiscc’s prcmiscs and rcmrwc all "CE1`~iTU[€."i’ 2l" signs and
all nthcr indicia cf any aliiiiatinni hy liranchiscc with mc C13`1*i'l`L|1{‘r' 21 nrganinaticn. Franchiscc
shall hc ubligatcd tn rcimhursc liranclnscr far thc cnst ni` rcmnval, stnragc and dispcsitinn nli said
signs and nthcr rnatciials. lf Fnnicliiscc tails tc claim said signs tual island lnntsrlats nsnnawsst by
Franchisnr within lin-: {5} days atitcr thcir rcnnwal, Franchisnr shall haw: thc right tc scll cr
cthcrwisc dispnss nt` said signs rnnl nslatcd matciials, in its sclc discrcticn, and Franchisnr may
nctain thc prncccds, if any, linm any salc cr cthcr dispcsal, tn thc cxtcnt ncccssary tc cllsct thc casts
nt` rcni·:;wa1, stcragc and dispcsiticn cf said signs and lclatcd ntatcrials and tn cffsct any cthcr
&JJ.‘t1Dtl1’tl.&l D1' Ubltgalibhs limi Frarluliisisc may Lhcn awa Frnnchis:·:~r_. rw any n1·`its .sLtbsldlli.t‘l•·25 tJ1‘
atiiliatcs.
F. hlnncdialcly and l:`n~rct·*cr ccasc and dcsist frnm using thc CE1*~1'1`UTl‘r'2l Systcm,
including, but nut liniitcd ic, npcrating manuals, training manuals, salcs manuals and aids, listing
{limits und lmulw, sidsrarticiaig nrirl prr1tI1t'illlJ1‘1£,'tl. 1'1`1El.l,·EI'lt1lS, EIIU] all I1‘E|.Elt'c‘ SCCI`UlL El11l.l CUIll.ll]·El1llL*tl Ellld
p1·c·prictat·y tnatcrial dclivcrcrl tn Franchiscc ptusnant tn this Agrcciiicnt.
G. At thc cptinn ni` Franchisnr, rcturn thc Pda? Manual and upcrating manuals and scll all
nr part nl" thc training manuals, listing hacks, listing films, salas training casscrtcs, farms nr
hrnchurcs nn hand which cnntain CEN"[URY 21 lvlarlas nr which arc part nf thc CEl*~l'1`U1{‘r’ 21
Sy stcm tn liranchisnr at cnst.
H. 1'-{cfiain frnrn clning anything which wnnld inclicatc that liranchiscc is nr cvcr was an
authcrizcd CE1‘~I"l`l.l1'{"f 21 ilnnchiscc.
I. lvlalinatn all hunks, rccnrda and rcpuits 1-squirnrl hy Franchisnr nursuanl tc Patragthph 11
hcrcnf fnr a pcrind nf ncl lcss than thrcc (3) ycars aiicr thc tcnninaticn nf this ngrccmcnt and allcw
Franchisur tn nialrc tinal inspcctinrt and audit Dl`i?1't11'1C-l1:1SEU’S bucks and rcccrds during ncrmal
hnsincss hnurs within said thrcc {3} ycar pcricd Ihr thc purpcsc nfvcrifying that all scrvicc lccs,
NAP ccntrihuticns and nthcr apprnpriatc arncunts ha. hccn paid as rcqnircd hcicin.
.1. Prnmptly canccl and discnntiuuc usa ul` thc tclcphnnc nunihctts} which scrvcd
[·'ranchiscc’s Plpprcwcd Lccaticn at thc tiinc cl`tcrminati·nn and rlclctc Franchiscc’s CE1*~L'i`1..l1i.‘{ 21
listing in the Yellew Pegcs end amy ether directery. liramchisee shell be deemed te hsse gmnted te
Frericltiser, pursuent te the 1e1‘iI1S ef this Agreement, at pewer et ntterncy with 11111 eutherlay ter
Frencliiser te camccl, lcrniitiete, atssign, discentinue er tarlte any amd ell lewthl nctien with respect te
the telephene nnrnberts) which serves Frsu1ehisee’s ritppresed Lecetien, ine-ludirig, witheut
lirnitetien, the pewcr te tatke such steps ais in the epinien ef iirauichiser mary be necessatry te delete
Fre.nchisee`s CE1\1'l`Ul{Y 21 listing er edsertising in the Yellew Paiges amd eny ether directeries end
tt} tuuttiitnte nity crtlier listing, which irrdientee that Frcuiehisee is er- was stfiilinled with the
CI3l*~lTUR‘:t'2l ergenizaitien. Fl`i]I1Gil..lSEC shell indemnity end held hsrmless eech such telephene
cenipatny, directery publisher acid ether persen er entity sgaiinst ell cests, dauneges, etterncys’ fees.
ezapenses amd liebilities which mary be incurred er sustained in eenncetien with er es e result ef amy
ectien telten in relience en the lbrcgeing pewer ef etterney. Netwsidmstnnding the fbregeing,
1·`r·r1na_·.l-time shell he Hee rn centinue cse ef the telcnhene number1[s) which served l`·'renchisee’s
Appresed Lecetien att die time ef termineticn, presided d_;1;a;t, such terrninaitien eccurs by reesen ef'
the expiretien ef' this Agreeinerit en the Expiretien Dete er upen eerly termhiaitien ef diis
Agreement, ether then by reesen ef at breech ef this Agreement hy l`·'rencl1isee. ln such events,
within femteen (I4) deys efthe tenninetien daite, Frsnclrisee shell be rcetaired te cleerly indicete in
ell respects, including ell telephene directeries, deatebeses end dircctery essistnnce, es well es
stetienery end sigtiege, th:-it ill he er she is nc lenger tt L?1;;1\1 1 L.l1tl' il Fraanenisee er pain e1'1l1e
CEl‘¤1"l`Ul?.Y 21 System upen terminattien ef this Agrcenienl.
K. lmmcdietely e.nd perrntuiently ceuse ell eliicers, ernpleyees, end ether rkfiilietes [es
defined in Peraigreph Smfiil} te diseentlnue the wearing ef erareer eppatrel in the distinetise
CHN LUl·i.Y Jl gtjtlil COlU1` Ul' t1.[1_y tttiptuul i111.1i1,.nting ei; tending te indicate that the Framclricee- ic HT
ssais en eutheriaaed CJLNTURY 21 Frenchisee, rand premptly te destrey e1·st1rrender te Frenchiser rail
such career npperel.
L. lirenchisee eclqnewledges than during the term el` this a¤1.g1·eernent end etter its
temtinsrien, tea-]-rieh shell it-iratnite expivstien, where there hats been ne subsequent anssigrunent er
ttenslizr), liratnchiser shell, es is hereinafter specified, husc the right te access amd use [i`} ell
infermetien presided by Frnnchisee le Frnnehiser pnrsuent te their sectien ef the CE.l*~1Tl.Jl{‘1'21
P &`P Mnnuel, Cette el’Cendnct, entitled "1~teper1ir1g", which specifieelly includes arll items therein
included under the eetegeries entitled “1"·teper·ti1ig", °‘l·?.eel Estete Tinrrsectieii lnibrnietien", end
"Listing ]1`Ii`iJ*i'1'Il1.'ii[l·C}1`l.,ii es well es eny ether Reperting item er cetegery which they lierchiaafter bc
aidepted in the P de l" lslsnuailg (ii} :111 infermetien presttted by rretichisee te I“re.nchiser cetituhacti in
these i`e1·ms er reperts lanewn es Cemrnissien Disbursement rlautlrerizattiens 1Q"CDF·a°s") er Seles
Reperts t"Sl{’s“’]1, amd in such ether eperetienel repcrts es Frautehiser niey frem time te time request
lieni l`·'rau1ehisee; end (iii] ell inibrinartien presided by lirencliisee te Frnnchiser rcgatrditig
etuellmcnt e1’Frs.nchisee’s custemers er clients in the CEl‘~1'l`UllY 21 Preferred Client Club {which,
[U1` putpuece ul` Illia S·1,1.1,apm‘ngt‘n1¤l1 ISL, shell include earch ether c1ien.tJ'a:ticta.arr1·er eerntaiel prngrn1·1·1{;s)
es mey hereafter be edepted by Frenchiser end). The i.[l.l:`O1'111tlliDI1 referred te in (i), (ii) end 1[iii]1,
ebese, shell hereinetlcr be referred te, cellectisely, ats ‘*the Client lntbnnetienâ€. Tite Client
l.r1.t`errnetien mary be used by Fratnchiser during the tenn et' this Agreentent fer business purpeses
which shell include, but shell net be limited te, public reletiens, edsettising end startisiicail
eempileriene, insesiigaaiinns nnri reselntiens nfensteiner er client cemeleints, end euadity stu·sey. In
atdditien, Fratnchiser sharll hesc the right, upen tenninetien, te centinue te use the Client h1fermetien
ais hctcinebese specihctl, end te rnadte the Client Infeirnetien esariluble tc ether CENTURYEI
lhuicliisecs tbr sucli purposes cs Frsncliisor, in its sole nod ubsolute discretion, deems appropriate.
ln atldition, sind not in litnitaition ol` Llte above, upon terxniriutlori, Fieoieliisoe shell be deemed tu lirwe
ttssigiied all of its CEl*~I"l`LlR’I' 21 P1·eli=:rred Client Club enrollments to l`·'rc.ncl1iscr, which is liercbgr
authorized to desi with scid enrollments in such nmnner as it docnis zlppropricte. Upon termination,
the names of Frnnchisce und F1`LlI'lClLl5BClS soles nssociattes will be deleted from Preferred Client
Club rnuilings.
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-.1*;-.,C‘¤"i.1.l J. ].i·u11n¤1, Esq. ` `
1‘T1.}I1.'1`1C]11·D1'E C1-nig. _ _ {11
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Mr. Mutlugh. iu ucc-u1·dz111um: with pmcudurcs 111*1110 z'I'1.I.'i2.·El11.1El];.i1$])1,1T[1'1!Cf1iZ (.11- 1{cail kiszailu, 1112:.1 E1
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. Suits: 241]
Guudynar AZ 8533 EI·-1252
Phunn: E§23.?.Hi".42*I'1
. Fu.-.. unnnznrasnu
E4]milZDUI'|J1I(1¤.'INE“iCtl115@DZi§lElf.UEQ|
Website: 'nltp:Hi1rm.s.lil11:111Jw.C¤1111d1¤1vi||i¤l11s1'
Pago 2 _
Koala tiormor
1Ttt.I1L:h.i:sor, by its autliorizotl roproaontatiuo {Ql11ris:1_j.t "|`ttrint1, tu ttUtLDlT|[1iiSi‘l_'l;i'lt.> `lZ1'tlI1tSiQI3fiIJ1`i1i1I1S*E?ii`I
to his sololy-ownoti corporation. Tho corporation is oporating as am Employing Roni Eslato
Brokor andor Doparbnont otiltoat listato Lioonso No. CC·5·l)t~l92¤1t]ttIt.l. Furthor, I mn onuloso a `
pago lrom tho Etllfll U.S. lnoomo 'l'ax Roturn liar an S Corporation [tntogrity Assurtn1oo,lno.`|
Wilioil iiSi5 this Coitlttty Zi iII'Ettâ€ttJl‘1.i&.to Agrootttoril as tht: uuuibor uno doprooiairdo assol;. Finally, I
will point mit that all paymonts mario to Contnry 21 Corporation roquirod by tho ftanohiso
agroornont hayo boon mario by tho corporation, and aoooptotl as snob by Contury 21. In my
opinion that is suftioiont basis for listing tho agroomont as proporty ol'mo oorporation, mid this
should hayo boon tlono at tho iZJt}f;,i111'I.iI1g-{Ti" this oaso. -
Wo havo briofly disoussod somo of t.ho problonis that hayo impairotl my oliont‘s ability to grow
];`IiS iJ'I.tt-L‘iI1CS';i I.Wt31' Hilo l.E.t';tl t:tC‘·it;‘¤l’11i `_'§·'G£\1'Ei·, 1lâ€ItJlLl(i.i1'lg tilts 1itiit11‘t;.= u.i`Cout1.|1·y 21 to proirido support_,
thoir omission of my olionfs basinoss adciross antlfor phono nnmbor hom its atlas otworldwirlo
Contury 21 i`mnohisos, thas diyorting potontial olionts away liom him and to a oompoting
tranohisoo, and tho disolosaro ofoontitioritial tinanoial inlhrrnation to a t.:ompotirig‘lrat1ol1isoo, ‘
who has usod this il'IiQi]1'1`t]E.Ll.iDI1 to my oliont's dotrimont. To this day, this iraaohisoo is oontaoting
IICW l’BF.t1 €B|,EtlJ.': 2tgBt'tIS WIIEJ limit: oaootntoni uurrtraota with any olionty dutri HIJITIE. ttiiwiltl i,i'tt£il`
roal ostato orluoalions sabsiriizod hy my oliont, and inlorming thom of my oliont's iiraaioial
probloms tbr tho purposo ol'inrluoing thorn to rptit my oliont and to work for his ·ti·a.uohiso.
`Notwitlistanding tho forogoing nogatiyo histoiy, it is my oliont's host husinoss jitrlgriiont that his
morgaaiaatioa plan in tory rmtnh tlapondant on rotaining tho Contury 21 assooiation. lt is our
intont to porsuado tho Bartkruptoy Court to maintain tho injtmotion in otfoot to allow tho bttsinoss
a thir ohanoo to suooooti. Ufoonrso, this rotptinos tho oooporation ol’Contnry 21 to ful till its
obligations of support and atlvortising.
Contury 2l has boon in violation otitho automatic stay sinoo i.'it‘3bI'LItI1']p', 2tJtl2, lt is our hopo that
wo can nogotiato a roasonablo agroomont whoroby Contnry 2t will oolitlnao for a loaaomttsto
poriod [ot` ono yoar] to allow my oliont a lair ohanoo to grow his businoss to tho oatont
nooossary to l`alt`ill at toast tho mininnun roquiroinonls ot`Contuty El. I intontl to lilo a motion to .
aooopt tho litnioliiso agroomont as an oxooutory oontraot. To tho oatortt that this roquiros my oliont
i to pay all oontraot arroaragos and provitlo adoquato assunmoo that it will oontinao to fulfill its .
obligations unrtor tho agrooniont, wo aro proparod to do ao, suiriorgl In tho rswoat that wo will raiso
tho issno that my oliont has sul`to1·oti tlamagos as a diroot oonsoctnonoo ol`aots and omissions of
Conttny El oorporation, and that htimoss roqnitos somo amount oforodit against any halanoo
owoti to Corittuy El. l·'urlhor, Contury 21, by its own act, hlookoni my oliont tiom its inlornot
paymont proooss, amd dolototl amy montion of my oliont*s liranohiso tlrom its wobsito. No -
ttltt.1rtla,Livo ruoans. u'l?ptt_y111·t>n1, was oi'list·.;—:.i by f`lt-rtluty Yi l, which tttiatl`t1ttl't.li},t' t‘t2l`Llsoti to
aoltnowlotlgo tho oiristont ol`tho lianohiso. i
Pug: 3
Kevin Bnxuicr - `
Wu imvc \’r'il.i1iZ|1'tl\j'»'Il from pursuing tlicsz: n·mttc:1·s in 111:: Clmaptm 1* nasa, amd impl: 1.hnt wc can _
nbtniu Sunni: iuxiiuubiu 4;1g1'CB1I11;11I iinm Clciitinry 2l [mib;-c the April hunring dmc. We wuuld lik:
in prnuuud with Lhc nznrgiuiizuiiun plan with Century El Cni·pun11ini1's usscnt und cunpurntinn.
_ 'rhlmk ymi wry 1I1I.1•i.}i1fO1' wnr cunsidumtinri. n I
Sinwuncly, _ ‘
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Dun P. Williams
uu: Dm"}; ush Mutlugli l
111::: 3~2B-29003 I
LAW OFFICE OF DON P. WILLIAMS
S 1616 N. L1T1;H1=1E1u1;1 F1¤.¤1¤
Surrzz 240
GDGDYEIAR, AZ. BE133B·~12SB
A11g11E1l U, ZUU3
DeEi1-·e11:d us email 111111el·u11e1dtu:
KBDNNER[;iJFGLAW.e¤1]g
Keviyi ]3·1me1‘, Esq.
I-'ICIJHEIIIUIE {Imig,
BUU3 N. ·lT."er1t1“·11! Ave.
Suite EGUU
Phueriix, PLZ. SSULE-2913
Re: Sel1Ieme11tl’1‘u1ws11l fer TCI.'1I1I[1H`lil1l`I Ulrllltllllilhiliié
Deux l{e1-·in:
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just 11:1111;:, lluwe eu1·1e1111e11 wilh my elie1:1c1u1d he prupuues Line tbllc11=·:i11;._1:
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amd 1111: pe1·li;1r111zmeu ur lack uf perlb1·11u1.1u;e Tb1e1‘e0l`by I;.:|:‘I1[I.ll`}* L;1. Framelwleee will 111111111 11·;·
public .st11l1‘:1ueuls, uml CI]: w1·i1;Le11 ClI3lI'I|T1CI`ltH.l Ee C.Ter11,11ry 21 Luc. F1·e1u:l1isee will 111111:11;;:-112,1:
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replace amd 1‘CI11U‘L*'C exieluu; 111-];:11:11110 signs.
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muy Iuwu, 11·1el11di11g e|:1ims lbr Lmpuid i`l'£·1|`1UhlI;iI;? lees auul CL}l1II]}i5SlUTI5 :1|11:;;,j,11g 1:1wed 111
l·`1w1el1i:;11:·r by virlue ul` du: le1·m:s sind lLJO]`llIIl`l¢JI'IS 1::l`tI1e l*'11u·11:l1iee ;`}5.}:—§I`UUI]1E5IH,, amd relum lu
I·1‘n11u-tdsee 1111: :111111 uf $lE,5Uu.1L‘·1J, 1·.1h.i1-l1 1-11-111111111: renresuiliu 1‘111e—}1ull?11l`I]1e ITEIIICIIISE lize paid
by II'I;lI'IC[]ISLi¤C.
Pleuse auivise me us 11111111 uu p11ssil1leil"1b_is1 pxupesul ie 11eeepl11I¤le ln Ci3I1lLl.['_'y'2], _
birseerely,
» T3.r:1¢·.'F’. '1#*1="£I,Li.;`1:¢·,1..·:
I Dun P. Wllllzarile
111:: lJ111 yu1=I1 ryfuilugln
FIIUIIDZ G23.34·1.TB*15 F»1n·.11i1: D1:111ald.'[email protected] Fax: *l.ElI1B.2E?’.3513
BUSINESS LAW A COMMERCIAL E. RESIDENTIAL REAL ESTATE LAW
Law Oiwtoaa
FENNEMORIE CRAIG
a i>tztii·‘us;·stut~titt. LZOl{l“LJt{A`I'lf}N
Kavm .1. BDNNEH ¤|’l’|GlE5_||“li
IJiraotFI1utta: touzzl ata-asm F’l‘¤GENl>¢.TLlG'¤1Ul¤.
otm.1 Fax: waz] ata-tiara m¤Gat.Ea,a.2;LtMooLM, NE
Kmunrlanggrcla wl UU"' CILJDD NDT%'|'E I ·GEHTI%.·**~.L .·\\.·' ENUM
autta zauu
Pt-|oar~iix.aRtzomn attatz-zata
at-iowa: tnu2ta1·=J-aauu
Fax; taaztaw-aaaa
'Ci]'f.tl`|f`!il"lF!T `l ft, EUG]
Don `P. Wiiliarris
_ Law Ulliaa ol'Do11 P. Williants
` lt':i`l6 N. Litalttlaltl lload - `
Hnrita Efll}
iiootlytzttt, ESEEB
Ro: Cantury 21 Asaurariaa
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