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HomeMy WebLinkAbout96-06030 , Complaint in this action for failure to comply with Rule 1024 of the rules of civil procedure, Respectfully submitted, {.?i/~ (/::- Allen C. Warshaw, Esq. Attorney !,D, No. 17145 Jeffrey P. Ouellet, Esq. Attorney I.D. No. 80170 DUANE, MORRIS & HECKSCHER LLP 305 North Front Street, 5th Floor P,O, Box 1003 Harrisburg, P A 17108-1003 (717) 237-5500 Date: '-II r~j CO Attomeys for Defendant Linda M. Mumma aIkla Linda M. Roth 111I0\017720.1 {;ERTIFICATE OF SERVICE On this 12th day of April, 2000, I, Sherry L. Weigel, a secretary with the law firm of Duane, Morris & Heckscher, LLP, hereby certifY that a true and correct copy of the foregoing PRELIMINARY OBJECTIONS TO COMPLAINT was served upon the following individual at his respective address by depositing the sanJe in the United States mail, first-class, postage prepaid, at Harrisburg, Pennsylvania. Christopher C. COMer, Esquire Mette, Evans & Woodside 340 I North Front Street P.O, Box 5950 Harrisburg, P A 17110-0950 xPlLOv\).A..- 'i. aJ OjF~LO Sherry L, Weige{J rf=L- 1100\41310.1 - c-. ~- (1'"; "" \.:-; ., . to-_. ~ -"-) .~ (- ~ ,") -~:: ~t.,! ~ _ 4"-~ :):>. l:": r.~ .- ..~;'j ,.... ,;.,' .'- -;,1; ('., VI .1>". fc"- ()~ ~; ',('6 1.1:" t)." . ~i 11- I" ~ ... II 0 ,;1 \.'J C) V "' l....w QrrlC[S Of DUANE, MORRIS flllECKSCIIER LLP 305 NORTH fRONT 5TRn:T, P 0_ BOX 1003 ~ It) ~ N .. .?- - 9~ - 5 ,~ .;t,; ~ CO) ";\liA ,~'.. N 'Srt,l I:~. t? ii:~ "'I F=' :.:: (l,l ~ C'l C1 en -,. - ~ c::; ~ "'- ~:') .~ ,_. N n (:::1 ;.,.1 ~6 ::: I ~, :'_i: +.;3" u... .' i~.1 (lll,"j " ';i- .:r . "/1.1 f.i" . :.1~) \L. - rf" '-' 'hrjj t"' l,-' ~ 1J fl.. ~ !:'~ ~ C1'l .;1 t1' U . .- ~. . . IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BARBARA McK. MUMMA, Plaintiff . . : ACTION IN EQUITY v. : NO, 96,6030 LINDA M. MUMMA NKlA, LINDA M. ROTH, Defendant REPLY TO NEW MATl'ER AND ~OUNTERCLAIM WITH NEW MATl'ER AND NOW, comes Plaintiff, Barbara McK. Mumrna, by her attorneys, Mette, Evans and Woodside, to file the following Reply to New Matter Counterclaim with New Matter: REPLY TO NEW MATTER 32. Admitted, 33. Admitted. 34. Admitted. 35, Adrnltted. 36, Denied. To the contrary, Plaintiff received only two stock certificates endorsed by Defendant, 37, Denied. To the contrary, Plaintiff, as an individual, possesses only the two stock certificates transferred to her by Defendant. The rernaining certificates are in the possession of Barbara McK. Murnrna as president of Boball. 38. Denied. To the contrary, Defendant has resisted and rejected reasonable requests that she endorse the rernaining certificates due Plaintiff. 39, Plaintiff is without knowledge or inforrnation sufficient to form a belief as to whether Defendant wil1"gladly" do anything. By way of further answer, Defendant has resisted and rejected reasonable requests that she endorse the rernaining certificates due Plaintiff, 40. Denied, To the contrary, Defendant has resisted and rejected reasonable requests that she endorse the rernaining certificates due Plaintiff. 41. Adrnitted. 42, Admitted, By way of further answer, by the terms of the Stock Purchase Agreernent ("Agreement"), Plaintiff was provided with the option of not ,2, averments are denied and strict proof is demanded at the tirne of trial, WHEREFORE, Plaintiff, Barbara McK. Murnrna, respectfully requests this Honorable Court enter an order in her favor as set forth in her Arnended Complaint against the Defendant. COUNTERCLAIMS COUNT I . SPECIFIC PERFORMANCE 56, The Plaintiff incorporates by reference all the allegations contained in the Amended Cornplaint and in her Reply to New Matter, 57, Denied. To the contrary, Plaintiff is in possession of two stock certificates issued in her narne, The remaining certificates are in the possession of Barbara McK. Mumma, as president of Boball. 58. Adrnitted that Plaintiff has paid for five certificates, It is denied that three have been endorsed. To the contrary, only two have been endorsed, 59, Denied. To the contrary, Plaintiff is in possession of two stock certificates issued in her narne. The remaining certificates are in the possession of ,5. COUNT III 62. The Plaintiff incorporates by reference all the allegations contained In paragraphs 56 through 61, above, the Amended Cornplaint, and in her Reply to New Matter, 63, Denied, To the contrary, Defendant has breached her contract with Plaintiff and Plaintiff is entitled under the facts and the law to request equitable relief via rescission and her alternative requests for restitution and unjust enrichment. 64, Denied. To the contrary, Defendant has breached her contract with Plaintiff and Plaintiff is entitled under the facts and the law to request equitable relief via rescission and her alternative requests for restitution and unjust enrichrnent, 65. The averrnents contained in paragraph 65 are conclusions of law to which no response is required, To the extent that a response is required, the averments are denied, the answer to paragraph 64 is incorporated herein, and strict proof is demanded at tirne of trial. -7, 66, The averrnents contained in paragraph 66 are conclusions of law to which no response is required. To the extent that a response is required, the averments are denied, the answer to paragraph 64 is incorporated herein, and strict proof is demanded at tirne of trial. 67. The averrnents contained in paragraph 67 are conclusions of law to which no response is required. To the extent that a response is required, the averrnents are denied, the answer to paragraph 64 is incorporated herein, and strict proof is demanded at tirne of trial. 68, The averrnents contained in paragraph 68 are conclusions of law to which no response is required, To the extent that a response is required, the averrnents are denied, the answer to paragraph 64 is incorporated herein, and strict proof is demanded at tirne of trial. WHEREFORE, Plaintiff respectfully requests that the Court disrniss Defendant's Counterclairn and enter judgment on behalf of Plaintiff as requested in her Arnended Complaint. NEW MATTER TO COUNTERCLAIM 69. The Plaintiff incorporates by reference all the allegations contained in .8. paragraphs 56 through 68, above, the Arnended Complaint, and in her Reply to New Matter, 70. Despite repeated requests, Defendant has refused reasonable dernands to endorse the remaining stock certificates paid for by Plaintiff. 71. Defendant has breached the Agreernent by failing to endorse the stock certificates. 72, Defendant has breached the Agreernent by offering her shares of Bobali, encurnbered by the Agreement, for sale to other mernbers of the Mumma family, 73, Defendant has breached the Agreernent by revoking the proxy granted to Plaintiff. 74, As a result of these breaches, Plaintiff is entitled to rescission of the contract and the return of the rnonies paid to Defendant upon which payrnent, the stock certificates will be appropriately transferred to Defendant. WHEREFORE, Plaintiff respectfully requests that the Court disrniss Defendant's Counterclaim and enter judgrnent on behalf of Plaintiff as requested in ,9. By: -.. her Amended Cornplaint, Respectfully submitted, METTE, ~VANS & WOODSIDE / / 3401 North Front Street P.O, Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 Attorneys for Plaintiff Date: August 11, 2000 ,10- VERIFICATION I, BARBARA McK, MUMMA, have read the foregoing document and verify that the facts set forth therein are true and correct to the best of rny knowledge, Inforrnatlon and belief, To the extent that the foregoing document and/or its language Is that of counsel, I have relied upon counsel In making this Verification. I undel'lltand that any false statements rnade herein are subject to the penalties of 18 Pa. C.S,A. ~4904, relating to unsworn falsification to authorities, DATE: r - I" - ..-0 .J)/ ,JJ ,:t)a.;J ,.'(.il.<' h;'/ BARBARA McK. MUMMA CERTIFICATE OF SERVICE I hereby certify that I am this day serving a copy of the foregoing docurnel't upon the person(s) llnd in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of sarne in the United Stales Mail, Harrisburg, Pennsylvania, First Class Mail, postage prepaid, as follows: Allen C. Warshaw, Esquire 305 N Front Street Harrisburg, PA 17101 By: 3401 North Front Street P,O, Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 Attorneys for Plaintiff Date: August 11, 2000 .11- ~ '"', r: " j" .. ) 'C 11.10 -" I , , () ~ ~._- , " --'1 ., ft,! , I.. ).:j I_I, "j ;-'~ f," . " ,Jl1;, .;. ::.J " ( ", ,;.i,' u G.:l;. ~ 'i.. t~. . ~:j lL C) U CO> (.l . IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BARBARA McK. MUMMA, Plaintiff ACTION IN EQUITY v, NO, 96,6030 LINDA M. MUMMA A/KIA, LINDA M. ROTH, Defendant NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set Corth in the Collowing pages, you must take action within twenty (20) days aCter this Complaint and Notice are served, by entering Po written appearance personally or by attorney and filing in writing with the Court your deCenses or objections to the claims set Corth against you. You are warned that iC you Call to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice Cor any money claimed in the Complaint or Cor any other claim or relieC requested by the PlaintiCC(s). You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE, IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP, Court Adrninistrator 41h Floor Curnberland County Courthouse Carlisle, PA 17013 (717) 240-6200 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BARBARA McK. MUMMA, Plaintiff : ACTION IN EQUITY v, : NO, 96-6030 LINDA M. MUMMA NK/A, LINDA M. ROTH, Defendant NOTICIJ\ LE RAN DEMANDADO A USTED EN LA CORTE, Si usted quiere defenderse de estas dernandas expuestas en las paginas slguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted de be presentar una apariencia escrita 0 en persona 0 por abogado y archivar en la corte en forma escrita sus defensas 0 sus objeciones alas demand as en contra de su persona. Sea avisado que si usted no se defiende, la cort~ tomara medidas y puede entrar una orden contra usted sin previo aviso 0 notlficacion y por cualquier queja 0 alivio que es pedido en la peticion de demanda. Usted puede perder dinero 0 sUs propiedades 0 otros derechos irnportantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO INMEDlATAMENTA. SI NO TIENE ABOGADO 0 SI NO TIENE EL D1NERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CuYA D1RECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. Court Administrator 41h Floor Cumberland County Courthouse Carlisle, PA 17013 (717) 240-6200 : NO. 96-6030 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BARBARA McK. MUMMA, Plaintiff : ACTION IN EQUITY v. LINDA M. MUMMA NK/A, LINDA M. ROTH, Defendant AMENDED COMPLAINT AND NOW, comes Plaintiff, Barbara McK. Mumrna, by her attorneys, Mette, Evans and Woodside, to file the following Cornplalnt in Equity, and in support thereof avers as follows: 1. Plaintiff, Barbara McK. Mumrna, is an adult individual residing in Florida with a Pennsylvania mailing address of 845 Kiehl Drive, Lernoyne, Cumberland County, Pennsylvania. 2. Defendant, Linda M, Murnrna alk/a Linda M. Roth, is an adult individual residing at 512 Creekview Drive, Mechanicsburg, Cumberland County, Pennsylvania, -,;q.. 10, On or about October 1, 1991, Plaintiff paid Defendant another Sixty Thousand ($60,000,00) as the second of the ten (l0) payments. 11. On or about April 1, 1992, Plaintiff paid Defendant another Sixty Thousand ($60,000,00) as the third of the ten (10) payrnents. 12. On or about October 1, 1992, Plaintiff paid Defendant another Sixty Thousand ($60,000.00) as the fourth of the ten (l0) payrnents, 13. On or about April 1, 1993, Plaintiff paid Defendant another Sixty Thousand ($60,000.00) as the fifth of the ten (l0) payrnents. 14. Defendant has delivered stock certificates to Plaintiff representing only twenty (20%) percent of the Stock. 15. To date, Defendant has failed to deliver stock certificates or execute appropriate stock powers to Plaintiff to effect transfer of the thirty (30%) percent of the Stock, which Plaintiff purchased on or about April 1, 1992, October 1,1992, and April 1, 1993, - 4 - \;0:., 16, Despite repeated dernands, Defendant has refused and continues to refuse to execute documentation necessary to transfer Defendant's interest in Bobali for which Defendant has already been properly cornpensated under the express terms of the Agreement, 17, Prior to Defendant's material breach of the Agreernent as hereinabove set forth, Plaintiff performed all of her obligations under the Agreement by rnaking the five payments in a tirnely rnanner, 18, On or about October 28, 1996, Defendant tendered a written offer to Plaintiff and three other parties to sell the Stock not yet transferred to the first one who delivers to Defendant a certified check for Three Hundred Thousand ($300,000.00) Dollars, A true and correct copy of the offer is attached hereto and made a part hereof as Exhibit "B". 19, Upon information and belief, on one or rnore occasions beginning in July 1996, Defendant has attempted to exercise the voting rights transferred to Plaintiff under the express terrns of the Agreernent, irnproperly atternpting to influence the corporate decisions and actions of Hobali, -5- 24, Defendant's conduct liS IIforesllld COlllltltuteH the fundarnental and substantial breach which serves to defeat the very essence of the Agreernent and Plaintiff has been directly harrned by virtue of Defendant's conduct. 25. Equitable rescission will restore the pllrtles to their original positions. 26. In exchange for Plaintlfrs return of 20% of Defendant's Stock, Plaintiff Is entitled to the equitable rernedy of rescission of the Agreement and the return of $300,000 plus interest, the costs of this IIctlon and reasonable attorneys' fees. WHEREFORE, Plaintiff, Barbara McK. Mumma, respectfully prays for the following relief: (a) Rescission of the Agreement; (b) The return of $300,000 previously paid to the Defendant plus Interest, the costs of this action and reasonable attorneys' fees In exchange for Plalntlfrs return of 20% of Defundant's Stocki and (c) Such other and further equitable relief liS this Court deerns just and appropriate, .7. 30. Plaintiff has confcrrod a bellofit upon Dofendant by rnaking the three payments of Sixty Thousand ($110,000.00) Dollars ench on or about April 1, 1992, October 1, 1992, and Aprill,lI)ll:l. 31, If the Court doell not grllnt the relief sought by Plaintiff in Counts I or II above, Defendant will hllve been unjulltly enriched by the surn ofthe three payments for whloh Defendllnt flllled to dollver stock certificates or execute stock powers to effect trllnllfer of thllt thirty (:10%) percent of the Stock, in the amount of One Hundred Eighty Thousllnd ($1110,000,00) Dollars plus interest frorn each ofthe payment dates, rOllpecllvoly, WHEREFORE, If tho Court docs not grant the equitable relief sought in Counts lor II nbove, Plaintiff respectfully dernands: (II) thllt Pllllntiff be awarded rnonetary relief of One Hundred Elllhty Thousand ($180,000,00) Dollars phm Interellt from the date of each of the payrnents Identified in Pllragraphs 12-14 above; (b) thllt Plaintiff be IIwarded all other monetary relief for 1111 direct, Indirect and consequential darnages lIuffered by virtue of Defendant's wrongful actions; - 9 - - .~ ~I.. . :.. :'.~iI 'L'U,~'~~ll.e&1 Illlll II.! P.! ;. .' il-r.l.l'2 ...,..,... ....__...._1. ~l. Stoak Pufah... A;r..~~t C"arr. .~~.) i. ..4. .. of the lltb a., of ..bIU.ry, ~"1 bltW'ID Liftea M. loth, ,n tn4iTi4uI. 1..tdiD! It 1101 li.iA, aiGa' w.~, leth..al, Nlr,rlan4 JOl17 C"~ ama") laG '.r~.r. ~. ~mm., In individull r..iding It 1.8 X1.~1 Dri.., ~m ~, Pean.,lvanll 170.3 ("llia") . - ............IIA ~tnd. a..lr.. to ..11 to Kim, ao4 11m _llh.. to pu~oha'. from LiDda, III of LiDia'. rigbt, tltl. .ad ift'.~I.t in lo~,li Carpar.tion, . '~lr1.lni' ~uliGl" aor,olltioD C"lOb.ll") ift aon.id.~.tion for '800,000 w~lGb 11~ would PI' Lindl over I five ,.ar ,.rl04, .. ~r. ,.,'iaullll, 4..cri~14 in ihi. Agr...nt. 1. ....rtl"...."" lalla, Lind. henbf 1.11. to Kim, .04 1U,I'D blr.b1 'urah.... .rOrD :.184, III of LiDO". right, tit~. Ind int.r..t in loblli, .. .~n r1gbt., tltl. lAd i~t.r.lt or. r.fl.ot.4 on the ~o.' and ~oora. Of lob.li ("staat'), ~, ~.vma"~, ~ha total puroh... priOD C.pgzch... prlo.') ot tbe Stock i. .'00,000. Kin Ihlll mlk. ten (10) ..mi-annull paym.ntl to Lind. of "0,000 ..oh Oft APril 1 anO Ogtc~or 1 ot .aoh ~.Ir, commenoiftl CD .p~i~ ~, ~"~ (col1eatl..ly, the .pa;rmalltl") \lnt11 the enUre Pus-abll' ~do. ~e' beln pliO, 3, :arm. orh. il,= of '!'li. AVl:eollllnt (":an") .ball commence II 01 tbe dlt. of ..eeution of thil AI~..m.nt .nO .ball ramain in .ff.at: until III of tb. ~'rmentl hlV. ~8en nade ~ XlIII, c. ~1.~.'.~ n. .~~. ..~ .'fh~. ~ R~ftft~ .8~ .a~ ~r.fta.."..I!, ca) Linda will d.l1..r to ~iM .tca~ a.~tifia.t8', endor.ed for trlble.r, ".pr..lnting t.n (~o,) p.~a.nt oe the .took \lPO~ PI~nt b.r Xim of a,o,OOO o~'e.ch April 1 ao4 Qcto~.r ~ 4u~ing tbI Term, until III of the ,cook b.. bl.n t~ln.f'rrld to Kim under thil Ag~.emaDtJ tho Cir.t parm.nt .ha~l ~. mlde on or before APl:il 1, 1"1. 2:0.. 'ON! A"I....ns ASNN3..- :3. a. ~I :I.!I'X POl "cllO:~O le '151 '2:0 - . ,.. . ; .;.~'1t ;Jl 'N,..'~~P!5E'I->812!l) pI,. P.lI . .. .' (b) 10,,,il:"I'04'" aIlltbinv to t:~ aontl'try ao~t.i~.a i~ t~1 "r....nt ~lD41 Ihlll bl entltll! to rlcelve 111 41vl41J41 114 4Llt:l~utionl (CC11.atl'.17' .~l.trl~u'loD'.) witb IIIplot to ,be Itock DOt Oellvlre~ to Xim 1\ tbe time I.ab .~b D1I~rlbUtLoD 11 11141. (c) DIlrlJ\f tM '11m, 2.1114a e.r..' to eppolDt XiN (or ber IttorftlJWln-flat) proKf to votl III 01 tnl stock Dot ~ trlnlt,rraG to K1a accordin, '0 tnLa A,rl~at. lim anO ~iDdl evre. tbl\ KLa .blll ~'VI 'bl IU11 Yot~D' ,OWlr witb r.IP.ot to all DC tbl 'tOa~ 11~.a4r tranae.rrl4 to ~Lm uDdlr thil Alr,~D\. 5. '"p....III'.... I!I' .1_ 1H1l!l~"'l- ."'....11. .... 'I'III.Pl'I ".r........ U It In,. 1:111I eudlll U11 'hrll, the ...'o,UJ at tbl ClOIlllllllD .took of Ilne .Ln.tI~~l~, Inc. 11 101', a"L~t or tranlferre4 to a t" r4 tlrt" aDd .ucb ..~" ... ,~nt or trlna&lr lnclu4.. all or tbe eLghtl, titl. ,ad Lnter..tl of ~lftdl Lo lucb ItoOk, tben XiG .ha~l DOt >>e Oblivlt.4 to pUIC~II' the .took not 11rtld7 trl.lf,rJla ~ ~ind. to Kim unGe: tbl. ~gr.emeat. . i. ..,..r'I4..,,~ 1l!'''''''~' ':lIh ,.;nelllct Ihall lie hind1ng upon ana lnUJD ~o ~~e ~ln.ILt 01 thl hllrl. "Icutorl and l~mLn1.trltor' of xLm .nG ~ln~l. 'bil Afr..ment .blll not hi aaI1;DIII1... . 1. Lla.I!IA. Th. Itook wbiOb 110ft tL~ to tl.. i. in thl reoord nl~ of ~inA. .hll~ belr .n approprilt. ~.;ln5 rlferraG ~o tbL. Agt..ment. a. 089.pl'liftft ,._. hi. Agrl$ll\8nt .".11 be go"arnlO b1 the llWS Of 'bl CDMmQuw.11th of PlnAIJ1..nll .aG Ihll1 hI .nforcel~l. in eQul~ tbrO~;b ID .ctio. lor .,.ciII.O · performlnoe in ~h. court. 01 ,.nn'rl"lnil wl~h tba preYliling plrt7 to ~ IWlre.a III GOltl, earlD'../ laG eel.on.~le attorney.' ~..,. D tn'ZJIZll ~, XLa 1114 LillO' b..... ...cuteO tbS.1 A9reemeat II DC tbI dltl I~r.t abOYI wrlttea. ~~ ~~~~_L-> - 1'531 - 2 - COd "::>>NZ ..II."l~~nl5 ..II.SNN:S~- _~ ;1. :!. a: =6'U PW F03 nQ . 0 : ~ 0 t e '16 t 'e 0 exhibit B REVOCATION OF PROXY A/~ t;..4 NtI4"'C~ I. LINDA ROTH. ns the holder of certnin stock of BOBALI CORPORATION. n Pennsylvania business corporation ("Corporntion"). revoke any previous proxies. including but not limited to the proxy. dnted April 18. 1991. by which I nppointed Bnrbnra MCK. Mummn. as my proxy to allend any meeting of the shnreholders of the Corporntion and Wly continuntion or adjoummenttherof Wld to represent. vote such shnres. e [sic] consents. Wld otherwise act for me in the same manner Wld the same effect [IS if I were personally present. ~~~ Un . Mumma ~~-- ~ DATED y/er~ - - - '!!'--- "' CERTIFICATE OF SERVICE I hereby certify that I am this day serving a copy of the foregoing document upon the person{s) and In the manner Indicated below, which service satisfies the requirements of the Pennsylvani'il Rules of Civil Procedure, by depositing a copy of same In the United States Mail, Harrisburg, Pennsylvania, First Class Mail, postage prepaid, as follows: Allen C. Warshaw, Esquire 305 N Front Street Harrisburg, PA 17101 METTE, EVANS & WOODSIDE By: ~~ sup. Ct. I.D. No. #28980 Christopher C. Conner, Esquire Sup. Ct. I.D. #36407 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 Attorneys for Plaintiff Date: May 4, 2000 ~ ,.. ..... i-- ". ~., .. ~ i ..:~ Ulr.... ...:I t~ j . ~" .,- ~: ~~ u.. " ,- ~':... , .4; ."" ., ~. " , I 'I' rfL..l ) ., I" .. " " U w u .-. .. -~---- ~-. .._. [, t r -a.i 1$.. ('{ '7 ':t' r 0 C ~ III ;.- () VI a Cr l!) Ii> ,-; lJ) 0 lJ) . - -:r -:r \ UJQ. M ' ) ::,~ 0 . V'\ ) ~~. ~L: ._J~~ ~ \f1 ~ 3 ~ n.. -' ~~~ .!~ '-.- ~!. - 'rn t;J} 'l9 I P' u.: L.'. -, ..:..,,;J r' ~ 1m ,., ,')0.. ll. UJ ,-) (.) ~'\ oJ i i I i : i I I I ! , ,,,p, -.l , IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA Barbara MeK. Mumma, Plaintiff . . : ACTION IN EQUITY : ANDATLAW v. . . : NO. qtJ.J. <->--o..~ t986 . . Linda M. Mumma a/kJa, Linda M. Roth. Defendant ..J- .!;'I,} C.(l.U:I~IJI"W 0aIVe: rv\ec ~I^NI"'!.13~liZ b' ~ WRIT OF SUMMONS TO THE ABOVE.NAMED DEFENDANT: YOU ARE NOTIFIED THAT THE ABOVE.NAMED PLAINTIFF HAS COMMENCED AN ACTION AGAINST YOU. YOU WILL BE REQUIRED TO DEFEND OR DEFAULT JUDGMENT MAY BE ENTERED. l () C iX(ll u{P/1U ( v Prothonotary Lu.dLk.f Date: Nov, \ ~,.\- I IqCfG By l ,.~( '. I~ n?V.ll(Il1t1.....() 0,,1.:1 , Deputy - 2 . . . IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BARBARA McK. MUMMA, Plaintiff : ACTION IN EQUITY v. : NO, 96-6030 LINDA M, MUMMA NKlA. LINDA M. ROTH. Defendant NOTICIA LE HAN DEMANDADO A USTED EN LA CORTE. SI usted qulere defenderse de estas demandas expuestas en las paglnas slgulentes, usted tlene vlente (20) dlas de plazo al partir de la fecha de la demanda y la notlflcaclon. Usted debe presentar una aparlencla escrlta 0 en persona 0 por abogado y archlvar en la corte en forma escrlta sus defensas 0 sus obJeclones alas demandas en contra de su persona. Sea avlsado que sl usted no se deflende, la corte tomara medldas y puede entrar una orden contra usted sin prevlo avlso 0 notlflcaclon y por cualquler queJa 0 alMo que es pedldo en la peticlon de demanda, Usted puede perder dlnero 0 sus propledades 0 otros derechos Importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTA. SI NO TIENE ABOGAOO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LlAME POR TELEFONO A LA OFICINA CUYA D1RECCION SE ENCUENTRA ESCRITA A1WO PARA A VERlGUAR OONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAl.. Court Administrator 41h Floor Cumberland County Courthouse Carlisle, PA 17013 (717) 240-6200 "The total purchase price ("Purchase Price") of the Stock Is $600,000. [Plaintiff) shall make ten (10) semi-annual payments to [Defendantl of $60,000 each on April 1 and October 1 of each year. commencing on April 1 , 1991 ... until the entire Purchase Price has been paid." 3, Boball Corporation (hereinafter referred to as "Boball") Is a business corporation organized under the laws of the Commonwealth of Pennsylvania, with a principal place of business at 10'13 Mumma Road, Wormleysburg, Cumberland County, Pennsylvania, 4, On or about February 15, 1991, Plaintiff and Defendant entered Into a stock purchase agreement (hereinafter the" Agreement") by the terms of which Plaintiff purchased all of Defendant's right, title and imerest in Boball (hereinafter the "Stock") for the sum of Six Hundred Thousand ($600.000,00) Dollars, A true and correct copy of the Agreement Is attached hereto and made a part hereof as Exhibit "A", 5, Paragraph 3 of the Agreement states the term of the Agreement as follows: "The term of this Agreement ("Term") shall commence as of the date of execution of this Agreement and shall remain In effect until all of the Payments have been made," 6, Paragraph 2 of the Agreement states the payment terms as follows: 7, Paragraph 4(a) of the Agreement states the terms of the Stock transfer as follows: ..2.. 13, On or about April I, 1993. Plaintiff paid Defendant another Sixty Thousand ($60,000,00) as the fifth of the ten (10) payments. 14, Defendant has delivered stock certificates to Plaintiff representing only twenty (20%) percent of the Stock. 15, Defendant has failed to deliver stock certificates or execute appropriate stock powers to Plaintiff to effect transfer of the thirty (30%) percent of the Stock, which Plaintiff purchased on or about April 1, 1992. October 1, 1992, and April 1 , 1993, 16. Despite repeated demands, Defendant has refused and continues to refuse to execute documentation necessary to transfer Defendant's Interest In Boball for which Defendant has already been properly compensated under the express terms of the Agreement, 17, At all times material and relevant. hereto, Plaintiff has always been, and now Is, ready, willing and able to perform all of her obligations under the Agreement. 18. On or about October 28, 1996, Defendant tendered a written offer to Plaintiff and three other parties to sell the Stock not yet transferred to the first one who -4- delivers to Defendant a certified check for Three Hundred Thousand ($300,000,OO) Dollars, A true and correct copy of the offer Is attached hereto and made a part hereof as Exhibit "B", 19, Upon Information and belief. on one or more occasions beginning In July 1996, Defendant has attempted to exercise the voting rights transferred to Plaintiff under the express terms of the Agreement, Improperly attempting to Influence the corporate decisions and actions of Boball. 20. Defendant's failure and refusal to transfer her Interest In Boball, as provIded under the express terms of the Agreement, and her Improper attempts to exercIse voting rIghts In Boball, have jeopardized Plalntilfs proper exercise of her voting rights and have cast a cloud on the corporate decisions and actions of the shareholders of Boball. 21. If Defendant does not transfer her right, title and Interest In Boball forthwith, Including but not limited to the thirty percent of the stock for which she has already received payment, PlalntllTwill suITer material and Irreparable harm as hereinafter set forth, -5- COUNT I SPECIFlC PERFORMANCE 22. Paragraphs I through 21 above are Incorporated by reference as though fully set forth, 23, Defendant has committed a material breach of the Agreement by failing and refusing to deliver stock certificates and/or appropriate stock powers to transfer 30% of the Stock for which Pl:.lntiff has already paid. 24. Upon information and belief. Defendant has committed a material b.'each of the Agreement by attempting to exercise voting rights in Boball, 25. Defendant has committed a material breach of the Agreement by tendering an offer to sell the Stock which has already been sold to Plaintiff pursuant to the Agreement between Plaintiff and Defendant. 26, Plaintiff has been directly harmed by virtue of Defendant's actions as aforesaid and she has no adequate remedy at law to resolve one or more of Defendant's wrongful actions, .6- WHEREFORE, Plaintiff demands: (a) that Defendant be ordered to specifically perform all of her obligations set forth in the Agreement; (b) that Plaintiff be declared and aqJudged the legal and equitable owner of the voting rights of all Stock as of February 15, 1991; (c) that Plaintiff be awarded monetary relieffor all direct, Indirect and consequential damages suffered by virtue of Defendant's wrongful actions; (d) that Plaintiff be awarded attorney's fees, the costs of this action, Interest on this Court's award and such other relief as this Court deems just. COUNT II REQUEST FOR DEClARATORY JUDGMENT AND INJUNCTIVE REUEF 27, Paragraphs 1 through 29 above are Incorporated by reference as though fully set forth. 28. Plaintiff has been directly and materially harmed by virtue of Defendant's actions as aforesaid and Plaintiff has no adequate remedy at law to resolve one or more of Defendant's wrongful actions. -7 - WHEREFORE, Plaintiff demands: (a) that Defendant be ordered to specillcally perform all of her obligations set forth In the Agreement; (b) that Defendant be preliminarily and permanently el\lolned from exercising or altemptlng LO exercise voting rights In Boball during the term of the Agreement and from altemptlng to sell. encumber or otherwise transfer any Interest In Bobali during the term of the Agreement; (c) that Plaintiff be declared and al\judged the legal and equitable owner of the voting rights of all SLOck as of February 15, 1991; (d) that Plaintiff be awarded monetary relieffor all direct, Indirect and consequential damages suffered by virtue of Defendant's wrongful actions; (e) that Plalntlffbe awarded altorney's fees, the costs of this action, Interest on this Court's award and such other relief as this Court deems just. COUNT III UNJUST ENRICHMENf (IN THE ALTERNATIVE) 29. Paragraphs 1 through 28 above are Incorporated by reference as though fully set forth, .8- 30. Plaintiff has conferred a benefit upon Defendant by making the three payments of Sixty Thousand ($60,000,00) Dollars each on or about April 1, 1992, October 1, 1992, and April 1,1993. 31. If the Court does not grant the equitable relief sought by Plaintiff In Counts I and II above, Defendant will have been ul1lustly enriched by the sum of the three payments, for which Defendant failed to deliver stock certificates or execute stock powers to effect transfer of that thirty (30%) percent of the Stock, in the amount of One Hundred Eighty Thousand ($180,000.00) Dollars plus interest from each of the payment dates, respectively, WHEREFORE,lfthe Court does not grant the equitable relief sought In Counts I and II above, Plaintiff demands In the alternative: (a) that Plaintiff be awarded monetary relief In excess of One Hundred Eighty Thousand ($180,000,OO) Dollars plus Interest from the date of each of the payments identified in Paragraph 33 above; (b) that Plaintiff be awarded all other monetary relief for all direct, Indirect and consequential damages suffered by virtue of Defendant's wrongful actions; -0- (c) that Plaintiff be awarded attorney's fees. the cost.s of this action, Interest on this Court's award and such other relief as this Court deems just. Respectfully submitted, METrE, EVANS & WOODSIDE By: Christ her C, Conner, Esquire Sup, Ct, 1.0. #36407 3401 North Front Street P,O, Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 Attorneys for Plaintiff Date: lbll'!.\q~ Exhibit A - .':' 'e . :., :"~11 \i1'UIS;I~lorI~iI1H&4"1Z11) ".2 P.2 .' " .<<V'W ...,..,.... .,...~...--... Thi. 8toak Purah... AlI....nt (-AIr. ~I.t") 1. ..4. '1 of the l'~b da, of ..brUlr7, I'll ..tW'.D LinOI M. loth, 1ft indlvi4w.. 1..14int .t .aol al.lng aiOa. WI~, Betb.,d., Mlr711n4 30'.7 C-~ .0.-) aDd '.rbarl ~. MUmm., .n !AdiVi4ull 1..141ft; ., .., X1lhl Dri.., ~,Plan.rlYlnll 170.3 (MIIU".) . ........ .....II&C Lindl C..lr.. to ,'11 to xlm, .04 Klm wllh.. to purahl,1 Irom LiDOe, 111 af Ll..... ri,ht, tltl. .04 lnt.r.at ln lo~..l Corporltion, . 'eaDlpl..nil bUlioe., corlorat10n (-aob.l'") in oonliOar.tion for .'00,000 w~lob ~m .au 0 p.' LinlS' over · fiY. ,..r ,.rlod, .. ~r. ,lr"oul.r11 da.cribe4 ia thl. Aaraemen~, 1. ....~.."....ftlI .~. Zih14. hlnbf ..U' to Xlm, .'IU1 JU,1'Il b.rlb1 purch.... trOl'll Llftal III of LiaOs" right, t1'.' and In..r..t in IQb.ll, .. I~n r1gb", titl. IBIS iDtlr..t ar. I.flaatla on tn. book. .Dd reoord. Of JOb,li c-stook"). 2. ~.vma"~. 'hi totll purohla. prloa ('PuZcbl.a prlo.") ot tbl StOCk 11 .'00,000. ~ln Iblll makl ten Cl0) .ami-annuIl paym.ntl to Linda of ISO,oOO ..ob Oft A.r~l . anO Ogto~or · ot eaoh ,a.r, commenoin, OD .~rll ~, ~"1 (coll.ot1.l1Y, the "l'lIfllalltl") untU tha enUre P'Uwoblla ~a:1o, bll beal1 pllO. 3. ~. Thl tl~ of th~' A9r.l~nt ("Ia~.' .hall commlnce .. of ,be 41tl of ..Ioutlon af tbil Alrlemlnt .nO Ih.ll r~ln la .,ftot UQtil all of tbl .armentl have ~8.n I'IlIOe ~ Kim. c. !~~~.,.~ ft' .~~. ..~ ~'9h~. ~ I~ft~. .8~ .a~ ~~.'ft.~.J1..t!. (II) LLada will o,lL.lr to ~!~ .too~ cartificate', en4or.ed for trln.flr, rlpre.lntin; tin (10\) paro.nt or the .took upon 'Iymant ~ ~im of alo,ooo on'.ach April 1 1a4 octobar ~ 4urln; tbI '-rm, until all of thl .took ba. blan tZln.t.rrae ta 81m und.r tnil A;r..maat, tha firat plymant Ihlll b. ~I~ on cr beforl APrl~ 1, 1"1. ZOol .A..,....ns .A.SNN3d1- :J, :t, o. :e,!I'1Il 'D2 "0110:'1>016 '61 'Z:O 'ON % - . ; ...~~ 1;, 'NIU'~~111~564..g1l!fll fl.. P.i . 0' (b) lotwitbl'aD41Df aartbinv to tbl CODt~lrr oOAt.I~.4 in thil Agr....nt ~iDOI Iblll bl ontitll! to 'lOll.. all AlviOIDSt 114 41Itrl~~t'onl (ccl1acti.a17, .~iltrl~~tloDI.) with '....at to thl .tock DOt 0111vII04 to 11m It tbe t1me .Iob I~b Dtlt'lbutioD 11 ma~" (c) Durin; the ~.~, ~lp41 ..r... to appolnt Xl~ (or ber Illorner-1n-flot) pro., t~ .otl III 01 tha Stock Dot ~ tran...rrad to Xla accordinl ,a thi. A,rtemant. ILm InO ~lnda .vr.. tblt XL. ,hall hl.1 lh' f~11 votin, ,owar wLtb r.lpeot to III a. tbl l,aaM 11reldY tranleerred to ~Lft uD4ar tbi. A4r..d8Dt. 5, 1!l'.."...'P I!~ .1... MlIl-+w-..lww .~II~tr. t:e ~i.... ..rl!.......... %. It any tiNe aurin' 'ht Ter., the a.~arltJ of thl common etoak of .1fte .inetI-liDe, InC. il '014, a..ifDa4 or trlnlferre4 to I th rO tlrt" IDd luch 'Ill. al.igDment or trlnlCtr lBeluOe. all of tbe ri,~tl, tltle .D4 in,.rl.'1 a. ~lnd. in euoh ,tock, tb.n ~1. .h.ll not D. o~ll,ate. to pUIOhl.. the Itook BO~ I~rtld~ tr'Dlflr,.a ~ ~indl to lim undlr tbi. Avr.ement. ' i. ~~~ift9 ~".~t. ~bl1 ~;reement Ihall be hinding upon .n4 inure ~o ~h. ~.n.ei\ 01 tba hllr., ..acutor. In! .dminlatrltorl of Kim In4 Linda. ,bil A;re.ment abll1 not be 11I11!lnlble, . 1, ~Aa.ftA. ~bl Itook wbieb 1103 t'~ to ti.' i8 in the reoor4 Dime of ~1n4. Ib.~~ bill' .n IPProprilte ~e;'D5 r.terreo to thi. A9t.~.nt. I. orwArftiNl I.... 'hi. ,\;r.....nt eball be go..rnae !n- tbe llWI ot 'bl Commouwelltb of renAlrl..nil .DA Ibal1 ba enforceable in eQuit? tbrO~;b In lotion '01' .,.CillO · performano. in tb. Dourtl of fenn'llYlnil wi~ 'h. preYlil1ng 'Irt7 to ~ IWlr4.0 III ao,tl. ..p.n.... IDd ~el.on.ble attorneya' C.a.. III ~DZI. ~, lill 11\0 LinGI bin ...cute4 tb5.a A9reamen~ II o. ~ 41te r~r.\ Iboye vr5.tten, ~P ~~'f-~~ - 1631 - 3 - COe! '~N Z A"1....n.. ASNN:s.... .. '.~. ~~.&. pu ra" - ~ '.0' ,.' .. .", - - ~ . " ~. ''I' 0 t 6 . S t 'Z 0 E:vhlhlt A ....,."." ...., @ " . . . . 'Linda M. MlUII1rIa Sl:J err,biN lAM M"Ilani&.rburr. P'''lIS)lwznill 110SS ~(Q)~1f R!~ Dlsnomltion ot ~Db.li Corner. elan ~tDck Octobar 28, 1996 CllTIrIID HAIL . lITUlM IZCEIIT alQUlSTED PERSONAL , CONFIDENTIAL Hra. larbara HcK. Muama 845 Kiehl Drha Lalloyna, PA 17043 H.. larbara KuIIIIa 129 S, Lawlabarry Iload Hachanicaburl, PA 17055 Lila HIIlIlI& Horllll, Eaq. 804 K1chtlan Avanua Lalloyna, PA 17043 Robart H. Hum.., II. Praaidant KIHlOI, Inll. 614 North Front Straae HarTlaburl, PA 17101 Dur 'lIII11y: For panonal rea,onl, J have decided to aaU m)' intareat in the Bobali Corporation "aa is' by tha pra.eneation of atollk powar. for ~ .hara. in 1l0b.U Corpora cion to tha first of you who would ba villing to clal1ver . oertified chack to ae in the &IIloune of POO. 000.00 during a thirty (30) clay period which would run until tha clo.a of budnau .t 4:00 p... on HOnda)'. Novallbar 25, 1996. At Chi. point, m)' de.ir. i. to maka tha.. ....t. availabl. to famlly ..mber. who are int.ra.t.d ln maximizing the v.lua of thalr lobali inv..ta.nt. Sinllarely, Lincla H. HUlIIIIla IUto CERTIFICATE OF SERVICE 1 hereby certify that 1 am this day serving a copy of the foregoing document upon the person(s) and In the manner Indicated below. which servicE' satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same In the United States Mall, Harrisburg. Pennsylvania, First Class Mall, postage prepaid, as follows: Unda M, Mumma a/kIa Unda M. Roth 512 Creekvlew Drive Mechanlcsburg, PA 17055 METI'E, EVANS & WOODSIDE By: Christo her C, Conner, Esquire Sup. Ct. I.D, #36407 3401 North Front Street P,O, Box 5950 Harrisburg, PA 1711 0-0950 (717) 232-5000 Attorneys for Plaintiff Date: October 13. 1999 ',- 01 -- i- 1..: '. .. j" .. .., , l',~ -( . ., i ... j (. , '" L r ,.. I. , ~ I L., I', (" ) () ,,~. . U ~ 6, Denied, By wny of further nnswcr. the uvcrments in I'urngruph Six (6) reference a writing which spenks for itself. und uny uvcnncnts to the contrury nre denicd, 7, Denied, By wny of further unswer. the uverments in I'nrugruph Seven (7) reference n writing which spcnks for itsell~ und nny uverments to the contrary ure denied, 8, Denied, By wny of furthcr unswer. the uvcrments in Pnrugraph Eight (8) rcfcrence a writing which spenks for itself, und nny averments to the contrnry ure denied, 9. Admiued in purt; denied in pnrt, It is admitted tlmt on or nbout April I, 1991. Plnintiff pnid Defendnnt Sixty Thousund ($60,OOO,OO) Dollnrs, It is denied thntthis wus "the first of the ten" pnyments for the Bobnli stock, 10, Admiued in pnrt; denied in pnrt, It is ndmilled that on or about October I, 1991, Plllintiffpnid DefendWlt Sixty 'l1lOUSWld ($60.000,OO) Dollnrs, It is denied that this was "the second of the ten" pnyments for the Bobnli stock, 11, Admilled in pnrt; denied in pnrt. It is ndmitted that on April I, 1992, PlnintilT paid Defendnnt Sixty Thousnnd ($60.000,OO) Dollars, It is denied thntthis was "the third of the ten" payments for the Bobali stock. 12. Admitted in pm; denied in purt. It is admilled tlmt on October 1, 1992, Plnintiff pnid Defendant Sixty Thousnnd ($60,OOO,OO) Dollnrs, It is denied tlmtthis was "the fourth of the ten" pnyments for the Bobnli stock, 13, Admiued in part, denied in pnrt, It is ndmitted that on April 1, 1993, Pluintiff paid Defendnnt Sixty Thousnnd ($60,000,00) Dollnrs, It is denied that this was "the fifth of the ten" pnyments of the Bobali stock, 14, Denied, Initinlly. Delcndnnt signed a single stock certificate, Certificate Five, tlmt cnnbled her interest to be divided into ten (I 0) sepurate and equal stock certificutes each representing -2- , . . " a .21489 shnrc interest in the corporntion, A truc nnd corrcct copy ofCcrtilicatc Fivc is attachcd to this Answer as Exhibit A, Of thc ten (IO) stock ccrtilicntes symbolizing ,21489 shnrcs cnch Dcfendant hns dclivcrcd thrce of those ccrtilicntcs. Ccrtilicntcs Six, Sevcn and Eight, representing thirty (30%) perecnt of the stock, A true nnd correct copy of Ccrtilicatcs Six. Scvcn and Eight nrc nttached to this Answer ns Exhibits B, C, nnd D, respectively, 15, Dcnied, Dcfendnnt h[lS repcntedly and consistently ollered to cndorsc to Plaintiffthc two additionnl stock certilicatcs, Certilicatcs Nine and Ten, reprcsenting twenty (20%) pcrcent of thc stock, for which pnyment hns been madc, or to cxccutc thc approprinte stock powcrs to transfer her interest. 16, Dcnied. It is denicd that Defcndnnt has refused and continucs to refusc to cxecute documentntion necessnry to transfcr Dcfendnnt's intcrcst in Bobnli lor which Dcfcndnnt hns bcen eompensnted under the Agrcement, 17, Dcnicd, It is dcnicd thnt Defcndant brcached thc Agreemcnt and that Plaintiff performed all of her obligntions under the Agreemcnt. By wny of further nnswer, the Agrecment wns terminntcd by mutunl ngreement of the pnrtics in 1993, 18, Admitted, 19, Denied, It is denied that Dcfendnnt hns in nny wny nllemptcd to excrcisc thc voting rights transferred to Plnintiffundcr the express terms ofthc Agrecmcnt or tlmt Defcndant impropcrly attempted to influencc the corporatc decisions and actions of Bobnli. 20, Admitted cxceptthc revocntion of proxy issucd by Dcfendunt to Plaintifl'related only to thosc sharcs which hnd not bccn trunslcrred to PlnintitT, 21, Admitted and denied. It is admilled tlmt Defendant hns failed and refused to trnnsfer thc pnrt of her intcrcst in Bobnli for which Plaintifr hnd not paid as of the tcrminntion of the - 3 - . . Agreement. It is denied that shc hns fnilcd or refuscd to turn over nny of her intcrcst in Bobnli to PlnintitT, To the contrary, shc hns trnnslcrred ,6467 shares of Bobali to PlnintitT, In further answer, DefendWlt rcmnins willing to takc whntcvcr nction is necessary to convey full title to PlaintitTofthe rcmaining stock for which PlnintilT hns paid, It is PlnintilT who has failed to tcnder the stock certificntes to DefendWlt so that she can take such actions, It is denied thnt Delcndnnts actions hnve confounded Plaintiffs proper exercise of her voting rights nnd cast n cloud on the corpornte decisions and nctions of the shareholders of Bobnli. The remaining allegations contnined in pnrngrsph twenty-one consist of legnl conclusions tlmt require no response, If. however, they nre deemed fnctunl, they are denied, 22, Denied, The nverments contnined in Pnragrnph Twenty-two (22) constitute conclusions of Inw to which no response is required under the Pennsylvnnin Rules of Civil Procedure. To the extent the nvcrments nre deemed factunl, they are denied, COUNT I 23, The responses in Pnrngrnphs One (l) through Twenty-two (22) are incorporated by reference as though fully set forth herein, 24, The averments contained in Pnrngrnph Twenty-four (24) are conclusions of Inw to which no response is required, To the extent the nverments are deemed fnctual, they are denied. 25, The averments contnined in Pnrngrnph Twenty-live (25) are conclusions of law to which no response is required, To the extent the nverments nre deemed fnctunl in nature, they are denied, 26, The averments contained in Paragraph Twenty-six (26) are conclusions of law to which no response is necessary, To the extent the averments nre deemed factual, they are denied. - 4 - 31, The overmcnts contnincd in l'orugruph Thirty-two (32) are conclusions of law to which no response is required, To the e,xtcntthc avenncnts are dccmcd filclual. thcy are dcnied, By wny of further answcr. Defendant is rcady. willing ond able to cxccute any documcntation ncccssnry for thc propcr trunsfer of all of the stock whieh P/ainlifl'has alrcady purchascd, WHEREFORE. DctendWlt respcclfidly requests thut this Court dismiss I'laintitl's Complaint with prejudicc and awnrd Dctendant costs. allomcy's fecs and any other such rclief as this Court dccms just and equitnblc, ~F,W MATTF,R ,32, In Fcbrunry. 1991, Dcfcndont owncd 2,1489 shares of the tcn outhorized shores of Bobali Corporation stock, 33, Thc remnining shares of Boboli Wcrc owned by the Estotc of Robert M, Mumma (1,4044 shares); Bnrbnra Mumma McClurc (2, 1489 shorcs), Robert M, Mumma, II (2,I489 shnres); and Lisa Mummn Morgnn (2,1489 sharcs). 34, The Agreement initially was to involve ten installments with ,21489 sharcs being tnmsferred to Plointiffwith ench paymcnt of Sixty Thousnnd ($60,OOO.OO) Dollnrs to Defendant on April I Wld Octobcr 1 ench ycar until paid in full in five years, 35, It is admilled thatl'/aintiffmade fivc pnyments totaling Thrce Hundred Thousond ($300,OOO,OO) Dollnrs to Defendant. 36, Three stock cenificotcs represcnting ,64467 sharcs of Boboli stock wcre trunsfcrrcd by Defelldantto Plointiff. 37, Thc two additional stock ccrtificatcs reprcsenting ,42978 sharcs of Bobali stock purchnsed by Plnintiff arc in I'lainlifl's posscssion, - 6. \ 38, I'lnintitf has failed at any time to present those two stock ccnificates to Defendant for D'lfendantto cntlorse liJr transfer to Pluintitl: 39. DefcndWlt gladly will endorse those two stock certificates to Plaintiff once they arc received, 40. Defendant has rcpeutcdly und consistently otlered to cndorse to Pluintiff the two udditionnl stock ccnificutes for which puymcnt has been mnde or to execute the uppropriute stock powers to transfer her interest. 41, The Stock Purchuse Agreement provides in I'nragruph Five (5) t1mt: Ifnt nny time during the Teml, the mnjority of the common stock of Nine Ninety-Nine, Inc,. is sold, nssigned or trunslerred to a third pnrty, nnd such sule, assignment or trunsfer includes nil of the rights, title nnd interests of Lindn [Defendnnt] in such stock. then Kim [Plnintitl] shnll not be obliguted to purchnse the stock not ulreudy tmnsferred by Lindu to Kim under this Agreement. (See Plaintiffs Complnint, Exhibit A), 42. On July 21, 1993, Nine-Ninety-Nine, Inc, was in fact sold. 43, After July of 1993, no payments related to the purchnse of the Bobuli stock were made by Plaintiff to Defendnnt. 44. The Inst payment received was on April I, 1993 from Pluintiffto Defendunt in the nmount of Sixty Thousnnd ($60,000,00) Dollurs, 45, The Agreement, by its tenns, contemplated ten (I 0) consecutive payments over the course of five yenrs, 46. After July of 1993, I'luintitl. and Defendnnt both orally ugrced to terminutc the Agreement. 47, Plaintiff's claims ure barred because Plaintitl. ubandoncd the contract and failed to make the payments as presl:ribed in the Agreement. - 7- 48. Plaintill's claims are burred b.:cause I'laintilT orally agreed to tcrminnte the Agreement. 49, I'laintill's c1uims ure burred by the upplicuble stutute of limitutions, 50, Plaintill'luils to stnte u c1uim upon which reliefcun be grunted, 5 I, Plulntill's c1uims ure burred by the Stntute of Frnllds, 52, Plaintill's claims ure burred becullse she fuiled to meet her obligution to mitigute dnmnges. 53. Plaintilfs c1nims ure bnrrcd by the doctrine of estoppel and/or wniver, 54, Plaintil1's claims nre barred by the doctrine orluchcs, nccord und sntisfnction nnd/or pnyment nnd relense, 55, Plaintil1's claims are bnrrcd by the doctrine of unclenn hands, WHEREFORE. Defcndnnt Linda M, Mumma n/k/n Linda M, Roth respectfully requests thnt this Court dismiss Plaintiffs Complnint nnd nwnrd Defendant costs, nllomey's fees and other such relief ns may be just nnd equitable, COUNTERCLAIMS COUNT I - SPECIFIC PERFORMANCE 56. Defendant incorporntcs by reference the allegations contnined in paragrnphs thirty- two (32) through fifty-five (55) above as if fully set forth herein, 57, Pluintill'has in her possession ten (10) stock certificut.:s, which represent n ,21489 interest in Bobali. 58. Ofthosc ten {I 0) stock certificates, I'luintifi'hns purchased five (5) certificntcs . three hnve been endorsed. two have not been endorsed. -ll. . 59. PlaintilT only paid lor five (5) of Dclemlant's stock certificates prior to termination of the Agreement, yet Pluintil1' retains all ten (10) uf Defendant's certificntes, WIIEREFORE, Delendmlt1.inda M, Mumma ulk/a Linda M, Roth respcclliJlly requests that this Court order I'laintil1'to MUIll to Delenduntthe live (5) stuck ccrtiliclItes which belung to Defcndnnt. COlJNT II - IIN,JlJST F.NIUCIIMF.NT 60, Delendnnt incorporutcs by reference the alleglltions contllined in parugmphs thirty- two (32) through fifty-ninc (59) lIbovc ns if fully set forth herein. 61. Plaintiff only pnid for live (5) of Delendant's stock ccrtificutes prior to termination of the Agreement. yet Plnintiff retnins all ten (10) of Defendant's certificntes, WHEREFORE. DefcndWlt Linda M, Mummn ulk/a Linda M, Roth rcspectfully requests that this Court order Plaintiff to return to Delendnnt the five (5) stock certificates which belong to Defendnnl. COUNT III 62, Defendnnt incorpomtes by rcfcrence the allegations contained in pnmgmphs thirty- two (32) through sixty-one (61) above ns if fully set forth herein. 63, Plaintiffs claims are without busis in Inw or fnct. 64, Plnintiffhas brought this action for the sole purpose of harassing Dcfendant. 65, Piaintiff hns brought this action in bad faith. 66, Plaintifl's conduct in commencing and muintaining this nction wns nnd is nrbitrary, vexatious nnd in bad faith, . l) - " ", . . . , VERIFICATION I, LINDA MUMMA, hereby depose and Slale thntl am Wl individual Defendant in this c[lSe; that 1 am nuthorized to muke this Verification on bchulf of myself; thntl hnve rend the foregoing ANSWER TO AMENDED COMPLAINT. NEW MATTER AND COUNTERCLAIM which hns been drnfted by my counsel. The fnctunl stutements contained therein are true and correct to the best of my information, knowledge and belief although the lungungc is thnt of my counsel and, to the extent that the content of the foregoing document is thnt of counsel. I have relied upon counsel in making this Verificntion, This statement is mnde subject to the penalties of 18 Pa, C,g,A. ~4904 relating to unsworn fnlsification to nuthorities. which provides thnt if 1 muke knowingly false statements, I may be subject to criminnl pennlties, Dated: ~3'C> , 2000 ./' ~~ '~-""'--._~*"'-~ . .~,....-~ Linda Mummn i ~ - l~,- ., . .- ........ .::: ._~ '. " 'I ~ " . , -r. t...'........IbW..rl.hlfl.. wtI...... JIl 1Il.lnwipll0lt .. I" 'HI .. UllIUr\IACllt. ,flail" cOIIstruM ulJloulb lilt, .." w"n,. hi II hdllCCH_" t.,ppllUblt,""_,,.tliat..l: UNCOII-..'.....b..'....... UNI'CM,MINACI-. Cull_hall ulldtf UN un _p .M"" \M .......... (CVIl) (MIllOl) nUN -n"" I...." w,,1I nail'" ..n,,'Ulli, Un,r"", IlIft."....... Alt 1M Nt ..I...h . ..ael ISla") A"IIItNI.'tw"itt"". .,, .h. II. vull tMu11l not -. nl, ....,.1111. ~t;i!!;~;};1J/en7d(odd1}t:ll,uVfi~I'f'rm~ I I ~al nu ~UW ,.~~enkd' ~ ./&, .aJtt~jt.. <&u'~nk ~n,u/ i~l: .M M~ ~Je,~tWXl&;~ ,amd,lttute- fl1/a pfl/tr"llC 'I ~ II f7 fft@t1te~ : ,l kAa~~..J~!7%aMJ',Q~l/~/~~~.adA:w'1tamU l'l!i ~~l'O<<Pw~/k$~t'etl~~Mw,e;l/&~~' 11~1 'Pfi,nM.. -1.9_ .;> i i I ~ Ji.tftM1W~ ~. < , -;-/_"/'....../;::.> l ,- 4 -7___ Barbara McK, Mumma ( c lll,I.llnifl. ....riIl......... Illf.lltllt...",.. III th,IKI" 'IIi, Ctr1lkt". ,11111'" COllllnl'." "IOllt" th., .," ."n.. Nt ill'"" KCOf"~1 " IPphca~' I..... "'........: 1'" COllI-II ............. UN,'GI" IIIIN ACT- C......iN IINff 'I" I'" -.~pt.'., \tit ,lIti"tltI (Cull) (_'''11) J TIM -II...' I....... WI'" Ii,,,,.. .."".ulu, Ufll'Ofm GIIlI 'I IllUI..t Ad .....'.11.."..""'... (StaU) U.illeNl.......'... ...., 'I.... Ind '''0111'' lot Nt \JIt ,bowl hi' i, ~~1i?l;~i;./:;!~I'~fd(~)t,n~Ptt,efl',.me/<r I I ( i~l H~ ~,u/!.uJ.eJlkd A/, .the .lueI(U,jt <&tt~cn~' 'TJ,uI ill ~ ~ A'ete#,r -L'tUi'fJ<<ltfty ,aJ)/.JlttUU. fl7U!.n/!/INJlr 1.11 .fft/iJt1I.e~ · it ~ kAaIt.iAi/~..JO,;tfll/ntd'.QIl/.IA'(Y~qf:~-,,'tdiil ,/UN"U .1('. ~,&"ta"im/~tlfYA:pIlJQf''''t~"dl''u,''p"v../w/..ffY/t te")lIj~. I " fl)41"_",, ~~,,< ~ .~,.::":fz i~ l \ C':'$~ rt~l 'LJ G)'_ .. .... ~ 'f~' " ...-' ~~ ~~ . .};... .~ ~,' ":.' , '1 '~ ~,~ ~"-J 41 ~~ ", Z J] $ ", ... o ~~ ~ ~ " ~. 41 ~,~ ' \: ~ to.. ~ ~Q ~ ~ . < ~<:! , ~ 8 ~~ ~ . ~~... -~ ."'l> ,0 I~ I ~ ~ ;:: .~ iii ~~ ~> o "'l> " ,0.. " " l:d ~ .. ca:: " ~ ' ~ III o ~ \: o ~o.. ~. t.l -.;: ~ . - '$ ~ Q : U~... ~~ ~~~ ~ ; ~ '- c:l ~ ~ ~i]~-J o .." . c:l ~ ~~ < ~(Jl~j 8 ~ ~ "~ ~I ~'lJ 0 0 o i.. 0 ..:..~ \+.1,,- ~ +-0 .... ~ ~";:i B,~ ~ ~~ 0\ f;1 <Xl ~,,"'ti!; .,. ~ '~..t:::~'" .J:: ~ A! . < - N "" ,J::~S"'~ -.7-.1 ..\ [l ~" -. ~ -~ ' ~ l+= \;~~~~ r '-8 ) ~~~~" .~ , ,~ ~ ~ "':E~ 'K '., ,~ ':::r ~ ~ \i'- ... ,l9 ~ ~~S~: '. \," ~~i ~~ ,,~, .(t~~~ "\~ ~:~ ,>. jy .._~ ~~ IJ.I. . (",I' ,"" t~ . ,~< , "It" 0'.)', w.:; l:'i'!' C> '" l~ t.: .#~ :."':) .1'" r) ~__; :~) ~'~ 'l--:J ,'-,-. ., (~-, .J;:; -:.'in ::? tl.. "'i i) u.. C c..; , I', I...' 0:.> l:'_' ;, - . II' -- . - LAW OF'F1C[S OF' DU~~~~R~~F~~~; .lC~;~~S;~~~O;LP HARRISBURG, PA 17108-1003 ; i . .. Sheri~f'G Costs. Docketing Serviae Affidavit Surcharge 18.00 3.27 .00 2.00 So answ~ a ~-? . 'l.-~ ~ R' .....vrr=:-~;=r.ff------ . ames R.I....n., w..er.... SHF.RIFF'S RETURN - REGULAR f~ CAS~ NOI 1~~n-0G030 p C0I1110NWF.Al.TIl m" PF:NNSYI.VANIA. COUNTY OF CUI1BERLAND n!llU1JL!3J\.MAJIA J'!!!!< VS. l1JJJI.lLLl.INIMJt F:T_,~I" , " TII10THY REITZ _,__.....1 Sheriff or Deputy Sheriff of CUI1BERLAND County, Pennsylvania, who being duly sworn according to law, says, the wi thin WRIT OF SIJI1110NS wa. .erved upon _n!JJ!tlA LINDA tLALlSiAJ.XNDA 11 ROTH the defendant, at ~~~ HOURS, on the ~ day of November 19~~ at ~12 CR~f~P.W DRIVE IffiG.HAlUCSBURG.. PA-1.'li!.~~___,u . CUI1BER1.AND County, Penn.ylvania, by handing to LINDA 11 I1UI1I1A a true and attestlrd oopy of the ...W.H,lT__QL1?Vtl!'!.PNS ".- and at the same time directing ~.~ attention to the contents thereof. ~~~.~7 "ETTE, EVANS & WOODSIDE 11/07/1996 ____~ ~~ by rf:. . . epu y ti e Sworn and subscribed to before me this ;J 1M' day of >1oV:!..~~.- 19-"~ A. D. n. <~ O. nk~i-, LP}f2~ /1 prot.honotary' "" -". ~ ~.~~ N 1-'. i.; '.~1..-1": ,'-, ~JJ. ( ) ~..-: r:J~,' \;... :~l~ I " ;,.- ('.' . Y1 .,' ,'-. .1' ,hG1 , _J ',' ::::J -;10... -, ,j ,,' :3 ,". l::l U . . . BARBARA McK, MUMMA Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLV ANlA v. : NO, 96-6030 LINDA M, MUMMA. NKlA, LINDA M. ROTH, Defendnnts REPLY OF DEFENDANT LINDA M, MUMMA TO PLAINTIFF BARBARA MeK. MUMMA'S NEW MATfER AND NOW, Linda M. Roth, by nnd through her nUomeys, Duane, Morris & Heckscher LLP, files the following Reply to Plaintiffs New MaUer. 69, The Defendnnt incorporates by reference all of the averments in Pnrngrnphs 32 through 68 of her New Mnller nnd all the respor.ses to Plaintiff s nllegntions contnincd in DefendWlt's Answer. 70. It is denied that Defendnnt h[lS refused re[lSonable demWlds to endorse the remnining Stock Certificates paid for by Plnintiff. To the contrary, the Defendnnt h[lS been. and remnins. willing to endorse the remnining Stock Certificntes that Plnintiff h[lS pnid for, 71, Thll averments in Parngraph Seventy-one (71) nre conclusions of Inw to which no response is required pursunntto the Pennsylvnnia Rules of Civil Procedure, To the extent the nverments are deemed fnctual. they nre denied, . , 72, The averments in Pnrngraph Seventy-two (72) are conclusions of law to which no response is reqaired pursunntto the Pennsylvanin Rules of Civil Procedure, To the extent the averments nre deemed factual. they are denied. 73, The averments in Pnragrnph Seventy-three (73) nre conclusions of law to which no response is required pursunnt to the Pennsylvnnia Rules of Civil Procedure, To the extent the averments are deemed factual, they nre denied. 74, The averments in Parngrnph Seventy-four (74) nre conclusions of law to which no response is required pursunnt to the Pennsylvnnin Rules of Civil Procedure. To the extent the averments nre deemed fnctual. they nre denied. Respectfully submilled, ~ e~()t;f All ,nrs w. Esq, Attorney I,D, No, 17145 Jeffrey p, Ouellet, Esq, Attorney I,D. No, SOl70 DUANE, MORRIS & HECKSCHER LLP 305 North Front Street. 5th Floor P,O, Box 1003 Hnrrisburg. P A 17108-1003 (717) 237-5500 Date:~ HDG\6I00'.t.1 Attorneys for Defendant Linda M, Mumma alk/n Linda M, Roth .2- . VERIFICATION I. LINDA M, MUMMA. hereby depose and stnte thntl am an individual Dcfcndant in this Cllse; thnt I nm authorized to mnke this Verificntion on behlllf of myself; that I hllve rend the foregoing REPLY OF DEFENDANT LINDA M. ROTH TO PLAINTIFF BARBARA MCK. MUMMA'S NEW MATTER which h[lS been drafted by my counscl. The fnctual stntements contnined thercin nre true nnd correct to the best of my informntion, knowledge and bclief although the Innguage is thnt of my counsel nnd, to the extent that the content of the foregoing document is thnt of counsel. I hnve relied upon counsel in mnking this Verificntion, This statement is made subject to the pennlties of 18 Pa, C,S,A, ~4904 relnting to unsworn falsificntion to authorities. which provides that if I mnke knowingly fnlse statements. I mny be subject to criminal pennlties. Dnted: 06.2000 '~.F'" ~_I~.__~r'~-e"-e'"-"~ Lindn M, Mumma -3- t,: ~.,' t~. lJ..... I~Jr;.:; I. ,; ,I ti- '. " . . '-, - ' r-' tr. f:: .;: -:1'7" ,","" .C);;~ l:.": '...,);";.. ")~' c:. ;.j;:! C" 1.t'CIl /::!,.~ tj,~ "') ,jJ .....;.~ S o c:'; <~ :;,) "" '::l ~....) . . , LAW OFFICES OF' DUANE, MORRIS 8 HECKSCHER LLP 30~ NORTH f'R;"NT STRiCT. P Q. 80le 1003 HARRISBURG, PA 17108-1003 .' .