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HomeMy WebLinkAbout98-05796 ~ .<;) ~ It ~ ~ ~ ~ ~ c:t u ~ ~ ~ ) o ..... -I- It <:.. o ~ d - c . '-l ... t,} ~ ~ c::5 ~ ~ r ~ - .-" u ....., ~ r- I..c1 &. C)- ,'" <:: SWARTZ, CAMPBELL & DETWEILER By: Joel M. Flink, Esquire Identification No. 41200 1601 Market Street 34th Floor Philadclphi:l. PA 19103 (215) 564-5190 8T COMMERCIAL CORPORATION as assi gnee 0 f COURT OF COMMON PLEAS OF CUMBERLAND COUNTY CRAIG CONSUMER ELECTRONICS. INC. 41 st Floor, 300 South Grand A venue Los Angeles, CA 90071 Plaintiff TERM NO. 9f - S'79b C;u i I ~ v. RITE AID CORPORATION 30 Hunter Lane Camp Hill, PA 17011 Defendant. COMPLAINT BT Commercial Corporation, as assignee of Craig Consumer Electronics, Inc. (hereinafter referred to as "Plaintiff'), complaining Rite Aid Corporation (hereinafter referred to as "Defendant") alleges and say that: I. Plaintiff was at all times hereinafter mentioned a corporation duly incorporated in the State of Delaware with a place of business at the 41st Floor, 300 South Grand Avenue, Los Angeles, California 90071. 2. Based upon infommtion and belief, Defendant was, at ulltimes hereinafter mentioned, a corporation duly existing under the laws of the State ofPennsylvunia, with a principal place of ~" _..j.,,-';':';~ husiness atJO lIuntcr Lane. ('al1lpllill, PA 17011. 3. AlIlhc l1Iaterial cvents allcgcd herclII :!rosc in ('nlllhcrland ('ounty. Pennsylvania. 4. On or ahout I\ngnst 25, l'IIIS. ('raig ('onsulllcr /;Ieetronies. Inc. ("('('En), as assignor, agrccd 10 assign :!nd convcy all its rClllaining asscts including. hut not lilllitcd to :!ccounls rcccivables, to Pl:linliff, as agcnts for CC'E's Icndcrs. COUNTI (Accollnt Shltcd) 5. During 1995, J996and 191)7, Plaintiff sold goods to thc DcJcnd:1II1 and was sent invoiccs by Plaintiff dctailing the charges owcd by the Dclcndant for the cost of the said goods. 6. The Defendant did not dispute any of the charges set forth on the statemcnl of account. 7. DespilC Plaintiffs demand, Defendant has failed and refused to make the required payment of the amount due of $30,753.29. A true and correct copy of the demand letter dated December 17, 1997 is attached hereto as Exhibit "A". 8. Defendant has failed to make the payments required as and when due and there presently exists a debt in the amount of $30,753.29. A true and correct copy of the invoice is attached as Exhibit "B". COUNT II (Unjust Enrichment/Quantum Meruit) 9. Plaintiff repeats and rea lieges each of the allegations contained in the preceding paragraphs as if fully set forth herein. 10. Plaintiffhad a reasonable expectation of payment when it provided the goods set forth in "5 above. A . S . K Financial IlIsolvency Fillal/cial & Legal Serv;C'l's 2090 West 981h Slreel . Dloominglon, MinnelOla . 55431 (612) 881.6577. Fax (612) 881.6894 1.1lS Allgelts, San Diego. Orangt County, Minneapolis and Wasllington. D.C, TamPelenon - exl. 163 COlleeJion P.rolegal - Dcccmber 17, 1997 Charlene Rogvdcnhaber, AlP Ritc Aid Corporation P.O. Box 8431 Harrisburg. PA 17105 Re: Craig Consumer Eleetronics, Inc. ("Craig Consumer") Chapter 11 Case No. LA 97-39551-KM Noticc Of Intended Litigation And Settlement Offer Balance Due: $30,753,29 Our File No. CCERITOOI Send Check payable to Craig Consumer Trust Account and send to A.S.K Financial, Inc. P.O. Box 201631, Bloomington, MN 55420 1. Claim Amount: $30,753,29 1. Deadline for payment January 4, 1998 2. Prior To Suit Please Reply To: Tom Peterson, Collection Paralegal, 612-881-6577, ext. 163 Dear Rite Aid Corporation: This fmn has been retained by Craig Consumer and its secured lender, Bankers Trust Co., to collect the account obligation owed by your company. We are advised that the above claim is now due, owing and unpaid, and it appears that there is no legitimate basis for you to withhold payment. Please recognize that your rights of offset are limited by Section 553 of the Bankruptcy Code. A pre-petition debt owed by your company to Craig may only be offset by pre- petition claims. Likewise, a post-petition debt(for inventory purchased after the petition date), may only be offset by post-petition claims for eredit. The petition date for the Craig case is August 1, 1997. We have been instructed to file a lawsuit if this matter is not resolved within the next 14 days. Suit will be filed in the United States Bankruptey Court for the Central District Of *'" '* '* * Speciali:.i/lg in rile collee/iulI or purchase of obligations DIVed (0 ballkropr emilies. emphasiz.i1lg cOlllingeru fee based analysis mui recovery of avoidance power claims, DecomllS receivable and judgmems. In our 15tll Year of Business ~ (' " ;": 5: A'S'K FINANCIAl. California, Los Angeles Division. We have prepared the enclosed Drllfl Camp/lliDI, which will be filed and scrved if this malleI' is not rcsolvcd before Jllnullry 4, 1998. Litigation is cxpcnsivc f(lr both panics, and will most Iikcly rcsult in a judgmclll against you for the principal amount of this claim, intercst at thc lcgal judgcmelll rate or as prescribed in the aCCOUlH agrecment (whichever is grcatcr). Please do not ignore this leller. QUI' responsibility is to collect tJle account or explain the basis of any legitimate dispute. If your rccords reflcct prior payment of tJle statement charges or tJlat you have credits due for returns of some of the inventory reflected in the open invoice charges, please scnd proof of paymelH or that you returned goods for which you claim a credit. If you have some legitimate reason to not pay tJle bill, we will expcct to hear from you in writing with the particulars neccssary to evaluate your claim. If.we_do_nothearJi'oIlL}':QU. we will assume II ou do not intend to pay and we will take the action described above. \wp\forms\ar\ll\cce.hr Ene: Draft Complaint " ,. " ,. " ,. ,. .. " '" " '" " '" " " ,. '" ., .,. , ',' , ',' , '.' , 'n .. '" m ., o '" .. '" '" ". ,n .. '" '" " .. '" .. ." ,,, '" " '" .. ," '" '" " '" " ". ,. ". " ,. " " .. '" " \ '" ~\ '\ \ \ w .. ". , " " " ". ,. " " ,. " ." " ,. ,. ,.. ." ,. w ~ ~ ~ ~ ~ ~ o ,- ,. ~ m .. ,. .n ,. Ir, ,. '" 'n .. co w w ~ .. .. ,. ,. " w ~ ~ ~ ~ ~ ~ o o o " ,. .. ", " ,. ~ ~ ~ ,. ." ". 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Il.l ~ Z '<t' Z ....,< N 5 ~ ~ R U J::1 - I. t'-~ ~ !:2 tii - I'l :t ~ ~ ~ ~ ~ ~ p z; :::l ~ ~u ~ v. IN TI If: COURT OF COMMON PLEAS OF ClI.\IBERI.AND ('OUNTY, PENNSYL VANIA I' IIlIS/I,\rAIIlII,I'II(H '1M .'."I'M' 1 "I,,, ('.Ulf.1 III~. ',. '" ~l~" 1'\1 IIt'''t.1 I"~. -,N 1).1 ,., :' "\l .1.1' BT COMMERCIAL C'ORPORATION as ussigncc o/'CRAIG CONSUMER ELECTRONICS, INC. Plaintiff NO. n.57%-CIVIJ. 'ID{J',,! CIVIL ACTION-LAW RITE AID CORPORATION, Defendant JUR Y TRIAL OF lWEI. VE DEMANDED l'RAECll'l.: TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Enter the appcarancc of MARTSON DEARDORFF WILLIAMS & OTTO on bchalf of Defendant in the above mutter. Dcfcndant hereby dcm,uuls a twelve juror jury triul in the above captioncd action. MARTSO~JEARD,RRFF WILLIAMS & OTTO ~L j/!, , ~, By ~ ,. Gcorg B."Faller, Jr., -squire 1.0. No. 49813 Ten Eust High Strcet Carlisle, PA 17013 (717) 243-3341 ~N DEARDORFF WILLIAMS & OTTO Bh~ h ~~Q. ~ Thomas G. Collins, Esquire J.D. Number 75896 Ten East High Street Carlisle, P A 170 I 3-3093 (717) 243-3341 Attomeys for Dcfcndant Dated: October 29, 1998 _. ._-. -:-:-;;".,. ',- Lt. r i ~: ","J , I , 11,: (.. ~ r~.. ~,. 'I l;:.. " , - , C')I , , C:. ) (.1' , Ii' c."J / f:"!ll 0- , ",I I 1- : '- , _I::'" f":". C; II. e':> ~.:J U ':" L' i I ! . .", ~ ~ l(j . ; ~ I~ P 15 ~ I .J ~ . ! ! 1< ~ :Q 0- " '<l' ~ ~ ~~t ~ - '" . 8 !:i ..-: "( > ~ g w - '" ~ " 6 ~ li.l ~ ~ ~Q~ :3 ~ :.. N ! ; o V') !;! r::::- " I U J: z - ~ Cl ~ ~ ~ z b '" ::r: ~ III 6::E~ ~ ~ . 7. ~ I ~ ~ 3 ~ ~ ~ " . '0 - ~ ~ ~ ~ 7. o! ~ .l; 1:: 0( ~u ~ .... 1'111\11\1\111'1,1"11111""""1'<'1,':,,, l.,~....., l....n ..~...~, I. ~\I kn"r.1 I" \'1 'j~ I" 1~ Ii \\1 ~l~' I BT COMMERCIAL ('ORPORATIO:-i as assigncc ofC'RAI(j ('O:-iSUMER ELECTRONIC'S,INC. Plaintiff l:-i Till; ('OURT OF ('OMMO:-i PLEAS OF ClI~lIlERLAN() ('OllNTY, PENNSYLVANIA v. NO. IJS-57'i6-CIVIL TERM CIVIL i\('TION-LA W RITE AID CORPORATION, Dcfcndant JURY TRIAL OF TWELVE DEMANDED DEHNDA..,[~llliLL.'JllIIARLOllJECTI0l'/SiO "I.A I NI1E.E'.S_COl\J.l!LAlNI I. Plaintiff's Complaint was filed on or about October 9, 1998 and allcgcs that Plaintiff is owed a certain sum ofmoncy for goods sold by Plaintiff to thc Dcfcndant. 2. Paragraphs 13-15 of Plaintiffs Complaint as well as paragraph 2 of the Praycr for Relief contain allegations conccming attomcys fccs. 3. Attomeys fccs arc not recovcrable in a brcaeh of contract action. 4. Attorneys fces arc not recovcrable undcr the general principal of Pcnnsylvania law unless thcrc is express contractual authority to do so or cxprcss statutory authority. 5. Plaintiffs Complaint does not plead any express statutory authority or exprcss contractual authority to recover altomcys fees. WHEREFORE, Defendant requests that this Court strike paragraphs 13, 14 and 15 of Plaintiffs Complaint and paragraph 2 of Plaintiffs Prayer for Relief. MARTSON DEJ1?1~ WILLIAMS & OTTO BY~'V~ orge B. Faller, Jr., EsqUIre I. D. Number 49813 Ten East High Street Carlisle. P A 17013-3093 (717) 243-3341 Altomeys for Defendant Date: October 30, 1998 CERTll'ICA'l"E. OF SERVICE I, Nichole I.. Myc'rs, an authori/cd agcnt or Martson Deardorrr Williams & Otto, hcrchy ccrtify that a copy orthc riJrcgoing Dclcndanl's Prcliminary Objcctions to PI.lintilrs Complaint was served this date by dcpositing samc in the Post Orticc at Carlislc, PA, lirst class mail, postage prcpaid, addrcsscd as follows: Drcw Salaman, Esquirc Joel M. Flink, Esquirc SWARTZ, CAMPBELL & DETWEILER 160 I Market Street, 34th Floor Philadelphia, PA 19103-2316 MARTSON DEARDORFF WILLIAMS & OTTO , . ,.. I) I By W'lid '(, I I/i, i,: Nicholc L. Myers .J Ten East High Street Carlisle, P A 17013 (717) 243-3341 Dated: October 30, 1998 bllsincss al 30 l/inllcr I.alll" ( 'aml' II i II. I'cllllsyhania 170 II. .1. I\lIlhl' matl'rial elellts alkped hl'rl'in aro.", ill ('lIl11hl'r1alld ('OlllHy. i'l'llIlsyl\'allia. ,I. On or abollt "\UplI.'1 25. 1')IIS. ('r,lip ('OIl,uIIIl'r /.kctrollics. IlIe. ,"('('1:"). as assignor, agrccd tll assign and conwy all its remaillinp aSSl'ls illcllldinp. hilt 1I0t Iimitl'd to accollllls rcccivables. tol'l:lintil'C as apents fill. ('( 'E's Icnders. COUNT I (Accllunt S':lIcd) 5. Dllrinp )1)1)5, 11)9(, alld 11)1)7. I'lailllilfsofd goods to thc Dclendant and lI'as selll invoices by I'laintifTdetailing thc ehargcs oll'cd by thc Dclendantfilr thc costorlhc said goods. 6. Thc Dc/endalll did not displltc any or thc charges sct lilrth on thc statcment or account. 7. Despitc I'lailllitrs demand. Dcfendant has "lilcd and rclilscd to makc thc rcqllircd payment or the amount due or $30.753.29. i\ truc and corrccl copy or the demand Icttcr datcd Dcccmber 17, 1997, is attached hereto as Exhibit "A". 8. Delendant has Illilcd to make the paymellls rcquired as and whcn due and therc presently exists a debt in thc amoul1l or $30.753.29. A truc and eorl'cct copy or the invoice is attached as Exhibit "/l". COUNT" (Unjust Enrichment/Quantum Meruit) 9. PlaintilTrepeats and rcalleges each or the allegations contained in the preceding paragraphs as ir filily sct lill'lh herein. 10. PlaintilThad a rcasonablc expcelation orpaymclll when it provided the goods set rorth 2 n.. in ~:5 ahovl', II. I Jclcndant h:" rlwiv~d thl' hcndit ul' the l!uuds it rccl'ivcd I'rum thl' PlaintilT :md wuuld he uujustly ~nriclll'd il'pcrmitted tu rctaiu said llL'nelit withuut paying Plaintiff. 12. I'h~ valu~ ul' said h~nelit is l'qual tu th~ amuunt chargcd hy thc Plaintiff 1,,1' th~ goods idcntilicd ahovc. al1llPlaintil'1' has hc~n damagcd hy IlcICndaut's rel'usaltu pay il,r said hcnclit in an amoulll cqual to thc amount ul'said hcnclit. WIIEREFORE, PlaintilTpra)'s thc cuurt as 1"llows: I. That Plaintiff havc and recover 01' Dcfcndant a judgmcnt il,r thc tolal amuunt 01' $30,753.2'1 rcprescnting stalementol'account ehargcs. statutory int~rcst: and , Thc costs 01' liling this action: and 3. Such oth~r rclicl' as thc court shall dcems proper. SWARTZ. CAMPBELL & DETWEILER Date: ~ - ) <.; _ .''1 By: :?,' M. FLINK. ESQUIRE /~ ltilication No. 41200 60 I Market Strcct 34th Floor Philadelphia. p A 19103 (215) 564-5190 Attorncys lur Plaintiff 3 "'" EXHIBIT A ,"'" Tom relerson - eXI. 163 Colleclion p...legal A . S . K Financial II/solvency Finane/IIi & Legal Services 2090 Well 981h Slreel ' Dloominglon, Minnesola . 55431 (612) 881.6577' F.x (612) 881-6894 Los Angelts. San Diego, Orange County, Minneapolis and Washing/on, D.C, December 17, 1997 Charlene Rogvdenhaber, A/P Rite Aid Corporation P,O. Box 8431 Harrisburg, PA 17105 Re: Craig Consumer Electronics, Inc. ("Craig Consumer") Chapter 11 Case No. LA 97-39551-KM Notice Of Intended Litigation And Settlement Offer Balanee Due: $30,753.29 Our File No. CCERlTOOl Send Check payable to Craig Consumer Trust Account and send to A.S.K Financial, Inc. P.O. Box 201631, Bloomington, MN 55420 1. Claim Amount: $30,753,29 1. Deadline for payment January 4, 1998 2. Prior To Suit Please Reply To: Tom Peterson, Collection Paralegal, 612-881-6577, ext. 163 Dear Rite Aid Corporation: This finn has been retained by Craig Consumer and its secured lender, Bankers Trust Co., to collect the account obligation owed by your company. We are advised that the above claim is now due, owing and unpaid, and it appears that there is no legitimate basis for you to withhold payment. Please recognize that your rights of offset are limited by Section 553 of the Bankruptcy Code. A pre-petition debt owed by your company to Craig may only be offset by pre- petition claims. Likewise, a post-petition debt(for inventory purchased after the petition date), may only be offset by post-petition claims for credit. The petition date for the Craig case is August I, 1997. We have been instrueted to file a lawsuit if this mailer is not resolved within the next 14 days. Suit will be filed in the United States Bankruptcy Court for the Central District Of .~**.:** Specializing ill the co/leclioll or purchase of obligations owed to bankrupt entities, emphasizing comingem fee based llnalysis alld recovery of avoidance power claims, aCCOlllllS receivable and judgmems. III our 15rlz Year of Business ., ~ u . ~ ~ ." ." 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" ;; ~ ~ ~ ~ ~ ~ ~ ., ~ " ~ m " :; W ~ ~ ., ." ." " '. :;: ;; " " ,- ~ ~ 5 ~ " - 0 - " - C 0 " 0 ., C " , ., " " ." ~., " C 0 " , " , ., , , ., " " " " " 2 ." ~ ~ n ." " " 0 C 0 0 0 . 3 " ~ '. ~ " 0 0 ~ " ~ " ;; .. " 0 ., 0 ~ " " " 0 ~ rr " " " ~ ~ " ~ , 0 " 0 " c " ,. 0 " n , 0 " " ." " ." ., " " " c ~ :: ~ ~ " " ., ., ~ " " " ~ ~ " - . '., .. ., " " ., ., " " " " " ') ~ , '1 ~ ., " - -. " :;: - ." ~ " . " , , " " '" ., . ~ , ,. , 0"'1 ,. :; " . , ,. , " .' ., , ." .. . ,. " .. .. " ,. ....'1l 'n ~ S ~ '. " .U " - " '~ . " ~ , ;; .. ~ " ~ .. - " n g " .. ~ ., .,. oO 2 n " , ~ ;: a .3 , ., ., " .. " , '. D '.j " . " SWARTZ. ('AMI'IIFI.l. 8:. I>1:T\\'I'lI.I'I{ By: .loci M. I'link. /:squirc /dclllilication Nil. .11200 I (,0 I Markct Strect. J,lth 1'1001' Philadclphia,PA 1'110.1 (215) 5(,4-51'10 aud A'S'K I'INANCIAl. 4040 N ico/s Road Eagan. MN 55122 (651 )40(,-1)(,(,5 AIlOl'l1cys Illr BT Commcrcial Corporation. as assigncc or Craig Consumer Ueetronics. Inc. COtIRl OF COMMON Pl.EAS OF CUMBERLAND COUNTY BT Commcrcial Corporation. as assigncc of Craig Consumer Elcctronies, Inc. Case No. '18-57% Plaintifr vs. Ritc Aid Corporation Dcfcndant. STlPIJLATION OF I>ISMISSAL III Commcrcial Corporation. as assignec or Craig Consumer Elcetronics. lne. and Rite Aid Corporation stipulate through their undcrsigncd rcprescntatives that the above-entitled aetion may be dismissed on the merits with prcjudice with cach party bcaring its own costs, expenses and allorncys' fccs. '. " 1 lated: Novemher 4. 11)1)1) . (' .L/ 1'- / SW, T.CI MI'III:I.L & lWIWUI.ER lIy: {,cl M. Flink. Esquirc Id ti Iication No.4 1200 I 10 I Market Strect. 34th Floor Philadelphia. I' A 19 I 03 (215) 56-1-5190 and A'S.K FINANCIAl. 4040 Nicols Road Eagan. MN 551 n (651) 406-'1665 Attorneys 1(11' Plaintiff ,. (/ #tt - ~ ~'" .1 ---,) /. . /f;:/'. ~ /,.2?/ eorge II. Fallcr. .II'.. Es ldentilieation No. 49X I Tcn East Iligh Strcet Carlisle.I'A 17013-)093 (717) 24)-))4 I Allorneys fill' Defenda11l 2