HomeMy WebLinkAbout00-05209
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KEVIN B. ALLISON,
Plaintiff
v.
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
No. b-v . 5:109 ~ I............,
Civil Action - Equity
SCOTT D. BRIGGS and HEISS,
GIBBONS & COMPANY, INC.,
Defendants
NOTICE
YOU HAVE BEEN SUED IN COURT. If you wish to defend against the
claims set forth in the following pages, you must take action within twenty (20) days
after this Cornplaint and Notice are served, by entering a written appearance
personally or by attorney and filing in writing with the Court your defenses or
objections to the clairns set forth against you. You are warned that if you fail to do so
the case rnay proceed without you and ajudgment may be entered against you by the
Court without further notice for any money clairned in the Complaint or for any
other claim or relief requested by the Plaintill'(s). You may lose rnoney or property or
other rights irnportant 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.
Lawyer Referral Service
Curnberland County Bar Association
2 Liberty Avenue
Carlisle, PA 17013
(800) 990-9108
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NOTICIA
LE RAN DEMANDADO A USTED EN LA CORTE. Si usted quiere
defenderse de estas dernandas expuestas en las paginas siguientes, usted tiene viente
(20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe
presentar una apariencia escrita 0 en persona 0 por abogado y archivar en la corte en
forma escrita sus defensas 0 sus objeciones alas dernandas en contra de su persona.
Sea avisado que si usted no se defiende, la corte tornara medidas y puede entrar una
orden contra usted sin previo aviso 0 notificacion y por cualquier queja 0 alivio que es
pedido en la peticion de demanda. Usted puede perder dinero 0 sus propiedades 0
otros derechos importantes para usted.
LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTA. SI
NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE
PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A
LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA
A VERIGUAR DONDE SE PUEDE CONSEGUlR ASISTENCIA LEGAL.
Lawyer Referral Service
Cumberland County Bar Association
2 Liberty Avenue
Carlisle, PA 17013
(800) 990-9108
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KEVIN B. ALLISON,
Plaintiff
v.
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
No. brJ- SJ-oc, ~ I~
Civil Action - Equity
SCOTT D. BRIGGS and HEISS,
GIBBONS & COMPANY, INC.,
Defendants
COMPLAINT
AND NOW comes Plaintiff Kevin B. Allison, individually and as a shareholder
on behalf of Heiss, Gibbons & Company, Inc., through his counsel Mette, Evans &
Woodside and brings this Cornplaint, in support of which he avers as follows:
1. Plaintiff Kevin B. Allison is an adult individual residing at 80
Honeysuckle Drive, Mechanicsburg, P A, 17055.
2. Defendant Scott D. Briggs is an adult individual residing at 501
Springhouse Road, Camp Hill, PA, 17011.
3. Defendant Heiss, Gibbons & Cornpany, Inc. is a Pennsylvania
corporation with a principal business address of 7 East Main Street, Mechanicsburg,
P A and is engaged in the provision of consulting services to business clients in
unernployment cornpensation and related matters. The corporation is joined herein
as a necessary party to the shareholder derivative action contained at Count III
hereof.
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4. Allison and Briggs were the incorporators of Heiss, Gibbons &
Company, Inc.
5. Briggs owns 51% of the corporate shares in Heiss, Gibbons & Company,
Inc., while Allison owns 49% of such shares.
6. Briggs holds the office of President of Heiss, Gibbons & Cornpany, Inc.
and is a rnernber of the Board of Directors of the corporation.
7. Allison is not presently a director of Heiss, Gibbons & Cornpany, Inc.,
having been rernoved as a director by vote of Briggs at a prior shareholder's rneeting
in 1998. He continues to serve as Vice-President of the corporation.
8. Since before its incorporation in 1989 and continuing thereafter until
March 2000, Allison and Briggs have been jointly engaged in the rnanagement,
direction, and operation of the business affairs of Heiss, Gibbons & Cornpany, Inc.
9. On or about March 6, 2000 Briggs approached Allison and demanded
$250,000.00 in return for his shares in Heiss, Gibbons & Company, Inc., stating that
if Allison did not pay that price Briggs would sell his shares to unidentified third
parties.
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10. Allison expressed interest in acquiring Briggs' shares, but suggested
that they agree upon a certified public accountant to provide an opinion as to the
appropriate valuation of the business.
11. On March 27, 2000 Briggs did not appear for work at Heiss, Gibbons &
Company, Inc.'s office during norrnal working hours, but instead had left on the
desks of three key ernployees (but not Plaintiff) a letter stating that he was taking a
"30 day leave of absence from the day-to-day activities at Heiss, Gibbons & Cornpany,
Inc." to explore other business opportunities. Notwithstanding this assertion, Briggs
also purported to intend to rernain as President of Heiss, Gibbons & Cornpany, Inc.
and to rnake "policy" decisions on behalf of the cornpany. True and correct copies of
Briggs's letters are attached hereto collectively as Exhibit "A".
12. Upon information and belief, Briggs accepted a position of employment
with another cornpany and began working full-time for that company on or around
March 27, 2000.
13. Since March 27,2000, Briggs has not perforrned his usual duties on
behalf of Heiss, Gibbons & Cornpany, Inc.
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14. Briggs has abandoned his position of President of Heiss, Gibbons &
Company, Inc. by his absence.
15. Despite his lack of work perforrned on behalf of Heiss, Gibbons &
Cornpany, Inc., Briggs continued to receive cornpensation from Heiss, Gibbons &
Company, Inc. at the same rate of compensation as when he was performing duties
full-tirne through April 21, 2000 for salary and through May 15, 2000 for expenses.
16. Briggs' absence from the workplace has placed severe demands on the
rernaining ernployees to rnaintain and service the clients.
17. Briggs' absence from the workplace is disruptive to the orderly course of
business, and Briggs insists (over Plaintiff's objections and concerns about the proper
operation of the business and protection of its staff) on bringing prospective
purchasers of his stock to the corporation's place of business and interviewing the
ernployees.
18. Briggs' insistence that the employees be available for visits from
prospective buyers of his stock has caused the employees to be unsure of their
continued ernployment.
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19. Since March 27,2000, Briggs has directed employees of Heiss, Gibbons
& Cornpany, Inc. to withhold information and/or rnislead clients and other third
parties regarding his true status with the cornpany.
20. Upon information and belief, since at least March 27, 2000, Briggs has
disclosed confidential information concerning Heiss, Gibbons & Cornpany, Inc. to
third parties to whom he is attempting to sell his interest in the corporation,
including proprietary financial inforrnation and information regarding ongoing
business relationships, and has done so without the consent of Allison or the clients
of Heiss, Gibbons & Cornpany, Inc.
21. Despite repeated requests and inquiries from Allison, Briggs has refused
to engage in reasonable discussions and negotiations regarding his desire to sell his
shares in the corporation to Allison.
COUNT I
KEVIN B. ALLISON v. SCOTT D. BRIGGS
PRELIMINARY AND PERMANENT INJUNCTION
22. The averments of paragraphs 1 through 21 above are incorporated by
reference as if fully set forth herein.
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22. The threatened action of Briggs in selling his rnajority interest in the
corporation to third parties with no existing ties to the corporation or experience in
managing its day to day affairs would cause immediate and irreparable harm to both
Allison as !l rninority shareholder and to the corporation, for which there exists no
adequate remedy at law.
23. The actions of Briggs to date in abandoning his duties and failing to use
his best efforts for the benefit of the corporation, as well as his oppressive conduct
toward Allison, violate fundamental fairness and require the intervention of this
Court to protect the interests of both Allison and the corporation, in the forrn of an
order enjoining Briggs from the sale of his corporate shares to third parties before
Allison has had a fair opportunity to purchase such shares at a reasonable appraised
value.
24. Greater harm would ensue frorn denial of the requested injunction than
from granting it.
25. Granting the requested injunction would restore the parties to the
status quo as it existed prior to the recent wrongful conduct of Briggs.
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WHEREFORE, Plaintiff Kevin B. Allison respectfully rnoves this Court to
enter an order preliminarily and permanently enjoining Defendant Scott D. Briggs
from selling or otherwise transferring his corporate shares in Heiss, Gibbons &
Cornpany, Inc. until such time as Allison has been afforded an opportunity to
purchase such shares at a reasonable appraised value, and to adjudicate the
abandonment of the position of President by the Defendant Scott D. Briggs. Also, the
Court is requested to issue an Order enjoining the Defendant from bringing
prospective purchasers to the corporation's place of business and interviewing the
ernployees.
COUNT II
KEVIN B. ALLISON. INDMDUALLY v. SCOTT D. BRIGGS
BREACH OF FIDUCIARY DUTY
26. The averments of paragraphs 1 through 25 above are incorporated
herein by reference as if fully set forth.
27. In the alternative to Count I above, if the requested injunction is denied,
Allison seeks damages for the dirninution in value to his shares as a result of Briggs's
fundamentally unfair and oppressive conduct as set forth above.
28. As the majority shareholder in Heiss, Gibbons & Company, Inc., Briggs
owes a duty of fiduciary duty to Allison as the minority shareholder.
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29. The acts and ornissions of Briggs as set forth above constitute breaches
of his fiduciary duty to Allison.
30. As a direct and proximate result of Briggs' breaches of fiduciary duty,
Allison has suffered and will suffer darnage in the nature of diminution in the value
of his shares in the corporation and losses of potential business opportunities, the
amount of which remains unliquidated but which exceeds $35,000.00.
WHEREFORE, Plaintiff Kevin B. Allison respectfully requests that this Court
enter judgment in his favor and against Defendant Scott D. Briggs in an amount
exceeding $35,000.00, together with pre-judgment interest, the costs of this action
and such other rernedies as this Court shall deern just.
COUNT III
KEVIN B. ALLISON v. SCOTT D. BRIGGS AND
HEISS. GIBBONS & COMPANY. INC.
SHAREHOLDER DERIVATIVE ACTION
31. The averrnents of paragraphs 1 through 30 are incorporated herein by
reference as if fully set forth.
32. As an officer and director of Heiss, Gibbons & Cornpany, Inc., Briggs
owes a fiduciary duty to the corporation and its shareholders to perforrn at all times
in the best interest of the corporation.
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33. By reason of the acts and ornissions set forth above, Briggs has breached
his fiduciary duties to the corporation.
34. Allison refrained from demanding action by the Board of Directors of
Heiss, Gibbons & Cornpany, Inc. to remedy the breaches of fiduciary duty by Briggs
only because such demand would have been futile given the fact that Briggs is
President and rnajority shareholder and has excluded Allison from the Board of
Directors, thereby exercising exclusive control of the Board of Directors of the
corporation.
35. AB a direct and proxirnate result of Briggs' breaches of fiduciary duty,
the corporation has suffered and will suffer damages including but not lirnited to
alienation of good will of existing clients, loss of business opportunities, over payment
of compensation to Briggs and dirninution to the value of the corporation.
36. The damages suffered by the corporation as set forth above are as yet
unliquidated but are in excess of $35,000.00.
WHEREFORE, Plaintiff Kevin B. Allison, in his capacity as a shareholder of
Heiss, Gibbons & Company, Inc. respectfully requests that this Court enter judgment
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in his favor and against Defendant Scott D. Briggs in an amount exceeding
$35,000.00, together with pre-judgment interest, the costs of this action and such
other rernedies as this Court shall deern just.
Respectfully subrnitted,
METTE, EVANS & WOODSIDE
rey A. Ernico, Esquire
Sup. Ct. J.D. No. 07981
Michael D. Reed, Esquire
Sup. Ct. J.D. No. 35193
3401 North Front Street
P.O. Box 5950
Harrisburg, PA 17110-0950
(717) 232-5000
Attorneys for Plaintiff
Kevin B. Allison
DATED: July 25, 2000
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VERIFICATION
I have read the foregoing document and hereby verify that it is true and
correct to the best of rny knowledge, information and belief.
I understand that any false statements made herein are subject to the
penalties of 18 Pa. C.S.A. H904, relating to unsworn falsification to authorities.
DATE: 7-JS -00
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Ke n B. Allison
228957
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CONFlI'>l3NTlAL
March 27, 2000
Jeffrey L. Miller
Heiss, Gibbons & Company, Inc.
7 E. Main Street
Mechanicsburg, PA 17055
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Oear JeIT:
EJTective April J, 2000, I will be on a 30 day Leavc of Absence 1i'Ulllthe day-to-
day activities al 1 leiss, Gibbons & Company, Inc. I am going to explore an opportunity to
join a new start-up Internet-based business venture. If all-goes as planned, the business
willluunch sometime in May
Although I will not be involved in the day-to-day lunctions at the ofiice, I will
remain as President of the Company and will still make "policy" decisions, (i.e. Jefl"erson
Health System expansion, and Hershey Mcd.lGeisinger isslles. etc.). I will be stopping at
the office, or calling in, daily. You may place any mcssages on my e-mai!.
I regret that this l11essage is being given tu yuu via this lelter, but the timing is
such that initially, this is the way to do i1. I will cnntact each of you in the next lilw days
to talk with you individually, and privately, to try to answer allY questions you may have.
We arc not only business associates, hut also l1'iends, and I can assure you our friendship
will be a vital part of my decisions I makc over the next few weeks. As time goes on, I
wil I certainly keep you up-to-date as to what is going on.
I advised Kevin of my thinking at the beginning of March. I'm sure you've
noticed nul' efforts to make sure every tIling is taken care of and certainly it's been a long
time since my desk has been so clean. Kevin will also be exploring the possibility of
purchasing my intllrest in the Company. Again, you will be kept informed of any actioll
inlhis regard.
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Page 2of2
As you can see, this is a delicate issue, with many different possible ramifications,
so 1 expect this to remain confidential. (Any questions are to be addressed to me) Do not
volunteer any infomlation to clients, or friends, but if questioned. you may say that 1 am
on a "Leavc of Absence"; offer no other expblnutinn. Any breach of confidentiality will
be grounds for dismissal.
Again, Ict me reiterate that although I must do what I think is best for my family
and me, I will look out for your interests as well.
Vcry truly yours,
Scott D. Briggs
President
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File
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CONFIOHNTlAL
March 27, 2000
Lynda !-Ierr
I leiss, Gibbons & Company, Inc.
7 E. Main Street
Mechanicsburg, PA 17055
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Dear I.ynda:
Elfectivc April I, 2000, 1 will be on a 30 day Leave of Absence from the day-to-
day activities at J leiss, Gibhnns & Company, Inc. I am going to explore an opportunity to
join a new start-up Imernet-based business venture. If all goes us planned, the business
will launch sometimc in May.
Although I will not be involved in the day-ta-day functions at the oilice, I will
remain as Prcsidem nfthe Company and will still make "policy" decisions, (i.e. Jell'erson
Ilcalth System expansion, and HCl'shey Med.lGeisinger issues. etc.). I will be Slopping at
the oi1ico.. or calling in, daily. You may place any messages on my c-mail.
Il'egr~1that this message is being given to you via this letter, hut the timing is
such that initially, this is the way to do it. I will contact each of you in the next few days
to talk with you individually, and privately, to try to answer any questions you may havc.
We arc not only husiness associates, but also friends, and I can assure you our lriendship
will be a vital part of my decisions I make <lver the next few weeks. As lime gnes un, I
will certainly kecp you up-to-date as to what is going on
I advised Kevin army thinking at the beginning of March. I'm sure you've
nnticed our el1brts to mal<e sure everything is taken care orand certainly it's been a long
time since my desk has been so clean. Kevin will alsu be expl()ring the possibility of
purchasing my interest in the Cumpany. Again, YOII will be kept inlbrmed of any acti()n
in this regard.
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Page 2 of2
As you can see, this is a delicate issue, with many different possible ramifications.
so ( expect this to rcmain cllnfidential. (Any queb1ions are to be addressed to me) Do nOl
volunteer any infonnation to clients, or friends, but if questioned. you may say that I am
on a "Leave of Absenco"; om~r no other explanation. Any breach of confidentiality will
be grounds for dismissal.
Again, let me reiterate that although I must do what I think is best thr my family
and me, I will look out for your interests as well.
Very truly yours,
Scott D. Briggs
President
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File
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CONFIDENTIAL
Murch 27, 2000
Nancy Yocum-Kreincr
I leiss, Gibbons & Company, Inc.
7 E. Main Street
Mechanicsburg, PA 17055
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Dear Nancy:
Effective April I, 2000, I will be on a )0 day Leave ol" Ab~ence from the day-to-
day activilies at Heiss, Gibbons & Company, Inc. I am going to explore an opportunity to
join a new start-up Internet-based business venlure. If all goes as planned, the business
will launch sometime in May.
Although I will noL be involved in the day-tl).day funeti()n~ at the (lmCe, f will
remain as President. ofllle Company and will still make "policy" decisions, (i.e. Jefferson
Health System expansion, and I lershey Med.lUcisinger issues, etc.). I will be ~lupping at
the omce, or calling in, daily. You may place any message~ on my e-mail.
I regret Lhat this message is being given to you via this leller, hut the timing is
such that initially, this i~ the way to do it. I will contact each of you in the next few days
to talk with you individually, and privately, to try to answcr any questions you may have.
We are not only business associates, but also friends, and I can assure you our friendship
will be a vital part of my decisions I make over the ncxt few weeks. As time goes on, I
will cel'lainly keep you u.p-to-date as t\) what is going on.
I advised Kevin of my thinking at the beginning ol"March. I'm sure you've
noticed our efTorts to make sure everything is taken care ol"and certainly iI'S been a long
time since my desk has heen so clean. Kevin will also be exploring the possibility or
purchasing my interest in the Company. Again, you will be kept infhrmed of any action
in this regard.
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Page 2 of2
As you can see, this is a delicate issue, with many different possible ramifications,
so I expect this to remain confidential. (Any questions are to be addressed to me) Do not
volunteer any informaliun to clients, or friends, but if questioned, you may say thaI r am
on a "Leave of Absenco"; olTer nil other explanat.iun. Any breach of confidentiality will
be grounds fllr dislllissal.
Again, let me reiterate that although I must. do what 1 think is best for my family
and me, I will look out for your interests as well.
V cry truly yours,
Scott D. Briggs
President
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Cc: Kevin Allison "
File
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KEVIN B. ALLISON,
Plaintiff,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY
COMMONWEALTH OF PENNSYLVANIA
v.
No. 00-5209 Equity Term
SCOTT D. BRIGGS and HEISS,
GIBBONS & COMPANY, INC.,
Defendants.
Civil Action -- Equity
NOTICE TO PLEAD
To: Jeffrey A. Ernico, Esquire, Michael D. Reed, Esquire, Mette, Evans & Woodside, 3401
North Front Street, Harrisburg, P A 17110, Attorneys for Plaintiff:
YOU ARE HEREBY NOTIFIED to file a written response to the enclosed answer with
new matter within twenty (20) days from service hereof or a judgment may be entered against
you.
JAMES, SMITH, DURKIN & CONNELLY, LLP
Dated: August 4, 2000
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Richard 1. Dahlen, Esquire
Attorney J.D. No. 83730
Post Office Box 650
Hershey, P A 17033-0650
717-533-3280
Attorneys for Defendant Scott D. Briggs
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KEVIN B. ALLISON,
Plaintiff,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY
COMMONWEALTH OF PENNSYL VANIA
v.
No. 00-5209 Equity Term
SCOTT D. BRIGGS and HEISS,
GIBBONS & COMPANY, INC.,
Defendants.
Civil Action -- Equity
ANSWER OF DEFENDANT SCOTT D. BRIGGS
The defendant Scott D. Briggs, by his counsel, James, Smith, Durkin & Connelly, LLP,
for his answer to the complaint herein, states that:
1. This defendant admits the allegations of the first paragraph of the complaint.
2. This defendant admits the allegations of the second paragraph of the complaint.
3. This defendant admits the allegations of the third paragraph of the complaint.
4. This defendant admits the allegations of the fourth paragraph of the complaint.
5. This defendant admits the allegations of the fifth paragraph of the complaint.
6. This defendant admits the allegations of the sixth paragraph of the complaint.
7. This defendant admits the allegations of the seventh paragraph of the complaint.
8. With respect to the allegations of the eighth paragraph of the complaint, this
defendant admits that since the incorporation of Heiss, Gibbons & Company, Inc. (hereinafter,
"HG&C") on December 29, 1989, both this defendant and the plaintiff have been officers and
employees of the firm; this defendant denies however, any allegations or implications suggesting
that their relative shares of ownership have been otherwise than admitted above (this defendant
fifty-one percent, the plaintiff forty-nine percent) or that their control of and contribution to the
firm have been equal.
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9. This defendant denies the allegations of the ninth paragraph of the complaint except
to state that, on March 6, 2000, this defendant informed the plaintiffthat he had received an offer
from a third-party to purchase this defendant's shares in HG&C and that he would give the
plaintiff the first opportunity to purchase those shares for $250,000, a figure derived from the
formula which had been acceptable to the plaintiff when he and this defendant originally
purchased the assets of the firm.
10. With respect to the allegations of the tenth paragraph of the complaint, this
defendant admits that, at some points in the extended and delayed discussions between this
defendant and the plaintiff, the plaintiff suggested the engagement of a certified public
accountant, with the intent that the accountant would provide a time-consuming and expensive
valuation ofHG&C; any remaining allegations of the paragraph are denied.
11. With respect to the allegations of the eleventh paragraph of the complaint, this
defendant admits that on March 27,2000, this defendant left on the desks ofHG&C's key
employees, with a copy to the plaintiff, the letters attached to the complaint as Exhibit A; further
answering, this defendant specifically denies the apparent implication that he was not fully
within his rights as president and majority shareholder in remaining as president, making policy
decisions for the company, and establishing his own working hours and leaves of absence; all
other allegations and implications of the paragraph are denied.
12. This defendant admits the allegations of the twelfth paragraph of the complaint.
13. With respect to the allegations ofthe thirteenth paragraph of the complaint, this
defendant admits that he has not since March 27, 2000, performed certain routine in-office duties
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formerly undertaken by him at HG&C but, further answering, states that he continues to direct
the policy of the fIrm and otherwise to act as its president and principal officer.
14. This defendant denies the allegation of the fourteenth paragraph of the complaint.
15. With respect to the allegations of the fifteenth paragraph of the complaint, this
defendant states that on May 15,2000, acting in his discretion as president ofHG&C, he drew
checks for his salary through April 21, 2000, and for reimbursement of expenses incurred
through May 15,2000; any remaining allegations and implications of the paragraph are denied.
16. This defendant denies the allegations of the sixteenth paragraph of the complaint.
17. With respect to the allegations of the seventeenth paragraph 0 the complaint, this
defendant denies that the introduction to the company of prospective purchasers of his shares has
in any manner disrupted the company's business; this defendant specifically denies the
implication of the paragraph that he is not fully within his rights in bringing such prospective
purchasers to his firm's place of business and interviewing its employees, and, further answering,
states that any disruption of the firm's business has been due to the intentional and malicious
conduct of the plaintiff in delaying appropriate consideration of changes in the ownership of
HG&C.
18. This defendant denies the allegations of the eighteenth paragraph of the complaint
and, further answering, states that he has taken all reasonable measures to reassure the employees
ofHG&C of their continued employment, as demonstrated in Exhibit A attached to the
complaint and in Exhibit E attached hereto.
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19. With respect to the allegations of paragraph nineteen of the complaint, this
defendant denies that he has in any material respect directed the withholding of any material
misrepresentation or the material misleading of clients and third parties.
20. With respect to the allegations of the twentieth paragraph of the complaint, this
defendant denies that he has disclosed any confidential information ofHG&C to any third party,
denies that any proprietary information he has disclosed has caused or could reasonably be
expected to cause damage to HG&C, and states that all information disclosed during his efforts
to sell his interest in the firm has been disclosed subject to appropriate and adequate
confidentiality agreements binding upon the recipients of the information, which agreements
have been available to the plaintiff and to which agreements the plaintiff has raised no legitimate
objection; the remaining allegations and implications of the paragraph are denied.
21. This defendant denies the allegations of the twenty-first paragraph of the complaint.
22. The answers to the paragraphs cited in the twenty-second paragraph of the complaint
are contained hereinabove; no further answer is necessary.
22. (sic) To the extent that the second twenty-second paragraph of the complaint
contains factual allegations, those allegations are denied.
23. To the extent that the twenty-third paragraph ofthe complaint contains factual
allegations, this defendant denies those allegations.
24. This defendant denies the allegation of the twenty-fourth paragraph of the
complaint.
25. This defendant denies the allegations of the twenty-fifth paragraph of the complaint.
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26, The answers to the paragraphs cited in the twenty-sixth paragraph of the complaint
are contained hereinabove; no further answer is necessary.
27, With respect to the allegations of the twenty-seventh paragraph of the complaint,
this defendant denies that any aspect of his conduct has been "fundamentally unfair and
oppressive"; this defendant admits that the plaintiff seeks damages as an alternative to attainment
of his other objectives in bringing this lawsuit.
28. The twenty-eighth paragraph of the complaint states a legal conclusion to which no
answer is required.
29. This defendant denies the allegations of the twenty-ninth paragraph of the
complaint.
30. This defendant denies the allegations of the thirtieth paragraph of the complaint.
31. The answers to the paragraphs cited in the thirty-first paragraph of the complaint are
contained hereinabove; no further answer is necessary.
32. The thirty-second paragraph of the complain contains a legal conclusion to which no
answer is necessary.
33. This defendant denies the allegations of the thirty-third paragraph of the complaint.
34. With respect to the allegations of the thirty-fourth paragraph of the complaint this
defendant admits that since April 18, 1998, the plaintiff has not been a member of the board of
directors ofHG&C; denies that this defendant has had "exclusive control" of the board of
directors; and states that the plaintiff has failed on numerous available occasions to make specific
complaints, requests or suggestions to the board of directors concerning matters of which he now
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complains, thereby, to this defendant's damage, delaying consideration and potential correction
of those matters.
35. To the extent that the thirty-fifth paragraph of the complaint contains factual
allegations, this defendant denies those allegations.
36. This defendant denies the allegations of the thirty-sixth paragfaph of the complaint.
NEW MATTER -- LACHES AND UNCLEAN HANDS
37. This defendant informed the plaintiff on Monday, March 6, 2000, that he had
received from a third party, Geoffrey Moomaw (hereinaftef, "Moomaw"), an informal proposal
to purchase his shares in HG&C, but that he would give the plaintiff the fust opportunity to
pUfchase the shares, suggesting the price of $250,000, a figufe derived from the formula which
had been acceptable to the plaintiff when he and this defendant originally purchased the assets of
the firm; this defendant also provided the plaintiff with Moomaw's name and with the
infonnation that Moomaw might be interested in purchasing the plaintiffs shares as well; the
plaintiffthefeupon expressed an interest in the two alternatives of purchasing this defendant's
shares Of selling the entire company to Moomaw.
38. This defendant's proposal was restated in a letter sent to the plaintiff by certified
mail on March 20, 2000; a copy is attached hereto as Exhibit A.
39. This defendant advised HG&C's employees on March 27 of his plans and of the
plaint.iffs interest in purchasing his shares; a copy of the message was provided to the plaintiff
(who has attached it as Exhibit A to the complaint herein).
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defendant on Monday, June 26, announced to all of the HG&C staff, including the plaintiff, that
the principals of another prospective third-party purchaser, the Unemployment Tax Advisory
Corporation (hereinafter, "UT AC"), would be visiting the firm's offices to meet them on
Thursday, July 6, 2000; a copy of the message is attached hereto as Exhibit E.
46. The message of June 26 resulted in a meeting of this defendant, the plaintiff, and
their respective counsel on Wednesday, July 5, at which the parties engaged in full and
reasonable discussions and negotiations concerning all issues, including this defendant's desire to
sell his shares in HG&C to the plaintiff; as agreed during the meeting on July 5, the plaintiff met
with the principals ofUTAC on July 6.
47. After the meeting on July 6, the plaintiff agreed to arrange a further meting with the
principals ofUT AC to introduce them to the other members of HG&C's staff; he failed,
however, to arrange the meeting.
48. After this defendant was obliged to step in and arrange the meeting between the
UTAC principals and the HG&C staff for July 31, and after the plaintiffleamed of the
arrangement, but before the meeting could take place, the plaintiff commenced this action,
sending copies of the complaint herein to the principals ofUTEC.
49. The plaintiffs extended series of delays in negotiating with this defendant and his
commencement of this action are parts of an intentional pattern and practice calculated to prevent
this detendant from selling his interest in HG&C to any third party, forcing instead the
abandonment of his interest or its sale to the plaintiff at a price below its value.
50. The plaintiffs claims in this action are accordingly barred by the plaintiffs laches
and unclean hands.
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WHEREFORE, the defendant Scott D. Briggs prays judgment of this Court dismissing
the complaint, granting him his costs and disbursements herein, and granting such other relief as
justice may require.
By his attorneys,
JAMES, SMITH, DURKIN & CONNELLY, LLP
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Richard 1. Dahlen, Esquire
Attorney J.D. No. 83730
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SUsan M. Kadel, Esquire
Attorney J.D. No. 44837
Post Office Box 650
Hershey, PA 17033
717-533-3280
Attorneys for Scott D. Briggs
Dated: August 4, 2000
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OO-~SULTANTS IN UNEMPLOYMENT COMPENOO~
Heiss, Gibbons & Company, Inc.
7 EAST MAIN STREET
sf; (/0 tJ
SCOTT D. BRIGGS
President
Mechanicsburg, Pa. 17D55
TELEPHONE: 717-691-8085
FAX: 717-691-8308
E-mail: heiss-gibbons@paonline.com
KEVIN B. ALLISON
Vice-President
March 16,2000
Mr. Kevin B. Allison
80 Honeysuckle Drive
Mechanicsburg, P A 17055
Dear Kevin:
On Monday, March 6, 2000, I offered you the opportunity to purchase my share
of ownership in Heiss, Gibbons & Company, Inc. for $250,000.
Upon receipt of a payment in the amount of $250,000, I will convey my shares of
stock to you.
If you have any questions you may contact me at my parent's 843-249-1038 or at
home 303-0570. Certainly we can lIIeet with someone from James, Smith & Durkin to
put an agreement in writing.
Very truly yours,
Scott D. Briggs
President
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POSITIVE CONTROLS INSURE SAVINGS IN UNEMPLOYMENT TAXES
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Scott & Helene
From: Scott & Helene <heissg@pa.net>
To: <kallison@heiss-gibbons.com>
Sent: Wednesday, April 26, 2000 10:56 PM
AJ:n1l16, 26()~
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Kevin,
It's up to you as to how we proceed. My original offer to you will be available until 5:00 pm, Monday. May 1,
2000.
After that, I will offer either just my share, or the whole business to interested parties. Obviously, you have the
right to sell your share to anyone you like, as well.
I currently have 3 parties interested in buying either the whole company, or just my share. E;ach of the parties
is interested in having a copy of a "Business Plan", and a projected "Budget" of income and expenses for
2000. Please prepare a "Business Plan" document and a "Budget" document and put a copy on my desk by
Tuesday, May 2,2000,
Another question that has come up is at what capacity is Heiss, Gibbons currently operating? How much
business can 4 people handle? Any thoughts?
With each of the parties I've talked to that are interested in buying the whole company, they would
expect/require you to stay on board, as well as Jeff, Nancy, and Lynda.
The first party interested in the whole company wants to meet with you and me at 5:00pm, Wed. May 3, 2000
at our office. Please confirm that you are available, and I will set it up,
I'm trying to schedule a meeting with the second party toward the end of next week, as well.
Also, provided you want to sell your share, if we're going to talk further with Geoff Moomaw, we should also
review what you and he discussed so we can negotiate with him.
Before we talk with anyone, we should talk ahead of time and make a list of what we would want out of
the deal.
If you have any questions, let me know.
Thanks,
Scott
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.9s,Scott
From:
Sent:
To:
Subject:
Briggs, Scott
Friday, April 28, 2000 10:50 AM
'kallison@heiss-gibbons.com'
Follow up to your 4/27 message
Good morning,
Please offer an acceptable target deadline date, ( I think an additional week is sufficient) I called an accountant on
Wednesday, and they said they could have information for me by next Wednesday. If you want, I will then postpone
meetings with anyone else until after that date. At some point, we have to determine if you are going to be acting as a
"buyer" or a "seller". I am certainly willing to entertain any counter offer rather than go through this process with other
people.
With regard to showing information to other people, I have had parties sign a confidentiality agreement, before providing
any information, I sent an agreement to Geoff Moomaw, but have not sent him any further information yet. I can wait to see
what you want to do. As he is in our "backyard", I am not anxious to send him any documents.
The Business plan can be an informal narrative of what lies ahead, and what we hope to do about it. At this point, I guess
I'm looking for you to write down some ideas or suggestions, and I will do likewise. After reviewing them, we can write up
something that looks decent.
With regard to a budget, I was thinking of looking at Mr. Kerr's year-end report, listing income & expenses, using that as a
format to estimate numbers for this year. For instance: Mr. O'Neal's costs are gone, a lot of the computer expenses
associated with upgrades are now behind us, etc. Again, I was looking for your input on this, and I think it would also be
beneficial to your decision making process as to what you want to do.
Let me know what you think.
Thanks,
Scott
Scott D. Briggs, Channel Manager
TuitionSource
sbriggs@TuitionSource.com
717/241-3185
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Scott & Helen~
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From:
To:
Sent:
SUbject:
Kevin,
What's new? What's up?
Longtime no talk. I left a message with Karen 5/14, an email to you 5/15,
and a message at the office 5/22. rm sure you're busy but...
If you are interested in buying my share, or if you are not interested in
buying my share, I want to know by 5:00 pm on 5/30/00. By this I mean I
need some type of initial offering, or a decline, in writing. I am not
saying that a deal must be complete by that time, but there must be some
type of offer, something to show we are moving forward on this issue.
In the meantime, I will make myself available to answer any questions you
may have. In do not hear from you, I will assume you are not interested,
and will proceed accordingly.
Later,
Scott
Scott D. Briggs, Alternative Channel Manager
CampusDoor
sbriggs@TuitionSource.com
717/241-3185
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From:
Sent:
To:
Subject:
Briggs, Scott
Friday, June 30, 2000 7:53 AM
'general@heiss-gibbons.com'
Visit from a potential buyer of Scott's share.
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~s,Scott
Good Morning,
A party interested in buying my share of HG is interested in meeting everyone.
Their plan is to keep everyone, including staying at the same place.
Suggested meeting date, next Thursday, July 6, 00. You may wish to be thinking of how you would explain the various
things you do, as part of HG's service to our clients. This will be an introductory meeting. I will come in to make sure my
desk is presentable and will get the boxes out the hallway.
If you have any questions, please let me know. Home number 303-0570.
Scott
Scott D. Briggs, Alternative Channel Manager
CantpusDoor
1501 Commerce Avenue
Carlisle, PA 17013
717-241-3185 V
717-241-3188 F
sbriggs@CampusDoor,com
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VERIFICATION
I, SCOTT D. BRIGGS, have read the foregoing document and hereby verifY that it is true
and correct to the best of my knowledge, information, and belief. I understand that any false
statements made herein are subject to the penalties of 18 Pa.C.S.A. 94904, relating to unsworn
falsification to authorities.
rO
SCOTT D. BRIGGS
Dated: August 2-, 2000
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KEVIN B. ALLISON,
Plaintiff,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY
COMMONWEALTH OF PENNSYLVANIA
v.
No. 00-5209 Equity Term
SCOTT D. BRIGGS and HEISS,
GIBBONS & COMPANY, INC.,
Defendants.
Civil Action -- Equity
CERTIFICATE OF SERVICE
I, RICHARD 1. DAHLEN, hereby certify that I have this day served the foregoing
answer of defendant Scott D. Briggs upon the plaintiff by causing a true and correct copy thereof
to be delivered in hand to his attorneys:
Jeffrey A. Ernico, Esquire
Michael D. Reed, Esquire
Mette, Evans & Woodside
3401 North Front Street
Harrisburg, P A 1711 0
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Richard 1. Dahlen, Esquire
Attorney J.D. No. 83730
Dated: August 4, 2000
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KEVIN B. ALLISON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
No. 00-5209 Equity Term
SCOTT D. BRIGGS and HEISS,
GIBBONS & COMPANY, INC.,
Defendants
Civil Action - Equity
REPLY TO NEW MATTER
37. Admitted in part and denied in part. It is admitted that, during a
conversation on Monday, March 6,2000, Defendant offered to sell his shares to
Plaintiff at the price of $250,000.00. The remaining averments of paragraph 37 are
specifically denied. To the contrary, Defendant did not inform Plaintiff that he had
received a proposal from Geoffrey Moomaw during the conversation in question, nor
did he advise Plaintiff that Moomaw might be interested in purchasing Plaintiff's
shares as well. By way of further answer, while it is admitted that Plaintiff expressed
an interest in purchasing Defendant's shares at a reasonable price to be determined,
he did not express an interest in selling the entire company and was not advised that
Moomaw was a potential purchaser of all shares in the company.
38. Admitted in part and denied in part. It is admitted that Exhibit "A" is a
true and correct copy of a letter dated March 16, 2000 from Defendant to Plaintiff.
The remaining averments of paragraph 38 are denied. The letter, being an
instrument in writing, speaks for itself. Therefore, to the extent that the averments
of paragraph 38 are inconsistent therewith, they are specifically denied. By way of
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further answer, the letter of March 16, 2000 did not restate the proposal alleged in
paragraph 37 of Defendant's new matter, since the proposal was not made in that
fashion on March 6, 2000.
39. Admitted in part and denied in part. It is admitted that on March 27,
Defendant communicated with HG&C's employees by means of a letter and that a
copy of that letter was attached to the complaint in this matter as Exhibit "A". The
remaining averments of paragraph 39 are denied. The letter of March 27, being an
instrument in writing, speaks for itself. Therefore, to the extent that the averments
of paragraph 39 are inconsistent therewith, they are specifically denied.
40. Admitted in part and denied in part. It is admitted that the message
attached to the new matter as Exhibit "B" was forwarded to Plaintiff on or about
April 26, 2000. The message, being an instrument in writing, speaks for itself.
Therefore, to the extent that the averments of paragraph 40 are inconsistent
therewith, they are specifically denied. It is further specifically denied that
Defendant had not received a response from the Plaintiff for over seven weeks. To
the contrary, Plaintiff and Defendant had numerous conversations during that period
as to the possibility of Plaintiff purchasing Defendant's shares and as to the method
for placing a fair value of those shares.
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41. Admitted in part and denied in part. It is admitted that Plaintiff's
response to the message of April 26 was to suggest that the shares in HG&C should
be appraised by an accountant. The characterization of that response as being
indirect is denied.
42. Admitted in part and denied in part. It is admitted that Exhibit "C" to the
new matter is a true and correct copy of the message forwarded from Defendant to
Plaintiff on or about April 28. The message, being an instrument in writing, speaks
for itself. Therefore, to the extent that the averments of paragraph 42 are
inconsistent therewith, they are specifically denied.
43. Admitted in part and denied in part. It is admitted that the message
attached to Defendant's new matter as Exhibit "D" is a true and correct copy of the
message forwarded by Defendant to Plaintiff on or about May 24. The message,
being an instrument in writing, speaks for itself. Therefore, to the extent that the
averments of paragraph 43 are inconsistent therewith, they are specifically denied. It
is further specifically denied that Plaintiff ignored Defendant's proposed deadlines.
Rather, Plaintiff continued to make atternpts to corne to an agreement with
Defendant on a fair method for valuation of the shares.
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44. Denied. It is specifically denied that Plaintiff's June 2 response was a
specific proposal to purchase the Defendant's shares for $34,547.00. To the contrary,
Plaintiff's June 2 response was conveyed in a letter which, being an instrument in
writing, speaks for itself. Plaintiff incorporates herein by reference his letter of June
2,2000 in response to the averments of paragraph 44.
45. Admitted in part and denied in part. It is admitted that the message
attached as Exhibit "E" to Defendant's new matter is a true and correct copy of a
message forwarded to all HG&C staff on or about June 26, 2000. The message, being
an instrument in writing, speaks for itself. Therefore, to the extent that the
averments of paragraph 45 are inconsistent therewith, they are specifically denied.
By way offurther answer, it is specifically denied that Defendant had not received a
serious response from the Plaintiff for over sixteen weeks since the original
discussion and four weeks since the last written request for a decision. To the
contrary, Plaintiff had continued to attempt to reach an agreement with Defendant
regarding a fair method for valuation of Defendant's shares.
46. Admitted in part and denied in part. It is admitted that the parties and
their respective counsel met on Wednesday, July 5 and engaged in discussions and
negotiations concerning issues relating to Defendant's proposal to sell his shares in
the corporation. It is further admitted that, as agreed during the meeting on July 5,
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the Plaintiff met with the principals ofUTAC on July 6. The remaining averments of
paragraph 46 are specifically denied. It is specifically denied that the meeting of July
5 was a direct result of the Defendant's June 26 message. To the contrary, the
meeting was an attempt to resolve issues which had been in discussion between
Plaintiff and Defendant since March 6, 2000. With regard to the characterizations of
the discussions and negotiations occurring at the meeting on July 5, any such
discussions and negotiations were engaged in as part of settlement negotiations and
the substance of such discussions and negotiations is therefore inadmissible as
evidence in these proceedings.
47. Denied. It is specifically denied that Plaintiff agreed to arrange a further
meeting with the principals of UTAC to introduce them to the other members of
HG&C staff, and it is further specifically denied that he failed to arrange such a
meeting, since he had not agreed to do so and had no duty to arrange such a meeting.
48. Admitted in part and denied in part. It is admitted that Plaintiff
commenced this action before July 31 and that Plaintiff's counsel forwarded a copy of
the complaint to the principals ofUTAC. The remaining averments of paragraph 48
are specifically denied. It is specifically denied that Defendant was obliged to step in
and arrange the meeting between UTAC principals and the HG&C staff. To the
contrary, there was no such obligation.
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49. The averments of paragraph 49 constitute conclusions of law to which no
response is required under the Pennsylvania Rules of Civil Procedure. To the extent
that a response is deemed to be required, the averments of paragraph 49 are
specifically denied. It is specifically denied that Plaintiff engaged in any delay with
regard to his negotiations with Defendant. It is further denied that the
commencement of this action was calculated to prevent Defendant from selling his
interest in HG&C to any third party or to force the abandonment of his interest or its
sale to the Plaintiff at a price below its value. It is further denied that there was any
intentional pattern or practice as alleged in paragraph 49 of Defendant's new matter.
To the contrary, Plaintiff at all times has simply attempted to negotiate with
Defendant regarding a fair method for the valuation of Defendant's shares.
50. The averments of paragraph 50 constitute conclusions of law to which no
response is required under the Pennsylvania Rules of Civil Procedure. To the extent
that a response is deemed required, it is specifically denied that Plaintiff's claims in
this action are barred by laches or unclean hands. To the contrary, Plaintiff cannot
be charged with laches or unclean hands based upon his continuing attempt to
negotiate with Defendant to achieve a fair method for valuation of a valuation for
Defendant's shares. By way of further answer, Defendant has himself been the cause
of the delays of which he complains by failing to agree to the reasonable step of
obtaining a valuation opinion from an independent accountant.
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WHEREFORE, Plaintiff respectfully requests this Court to dismiss
Defendant's new matter and to enter judgment in favor of the Plaintiff and against
Defendants in accordance with the prayers for relief contained in the complaint in
this matter.
Respectfully submitted,
By:
METTE, EVANS & WOODSIDE
/n;L/dJ~_
Michael D. Reed, Esquire
Sup. Ct. I.D. No. 35193
Jeffrey A. Ernico, Esquire
Sup. Ct. I.D. No. 07981
3401 North Front Street
P.O. Box 5950
Harrisburg, P A 17110-0950
(717) 232-5000
Attorneys for Plaintiff
Kevin B. Allison
DATED: '8~.I../~Q
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VERIFICATION
I have read the foregoing document and hereby verify that it is true and correct to
the best of my knowledge, information and belief.
I understand that any false statements made herein are subject to the penalties of 18
Pa. C.S.A. ~4904, relating to unsworn falsification to authorities.
DATE:~)'3J()D
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CERTIFICATE OF SERVICE
I certify that I am this day serving a copy of the foregoing document upon the persons
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
Mail, Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows:
Richard L. Dahlen, Esquire
Susan M. Kadel, Esquire
James, Smith, Durkin & Connelly, LLP
P. O. Box 650
Hershey, PA 17033
By:
METTE, EVANS & WOODSIDE
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Michael D. Reed, Esquire
Sup. Ct. J.D. No. 35193
Jeffrey A. Ernico, Esquire
Sup. Ct. J.D. No. 07981
3401 North Front Street
P.O. Box 5950
Harrisburg, PA 17110-0950
(717) 232-5000
Attorneys for Plaintiff
Kevin B. Allison
DATED:-e;~~~o
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KEVIN B. ALLISON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLANDCOUNTY,PENNSYLVAN~
v.
No. 00-5209 Equity Term
SCOTT D. BRIGGS and HEISS,
GIBBONS & COMPANY, INC.,
Defendants
Civil Action - Equity
PRAECIPE FOR DISCONTINUANCE
TO THE PROTHONOTARY:
Kindly mark the above-captioned matter settled, discontinued and ended with
prejudice.
Respectfully submitted,
By:
ii4;;Z
ichael D. Reed, Esquire
Sup. Ct. LD. No. 35193
3401 North Front Street
P.O. Box 5950
Harrisburg, PA 17110-0950
(717) 232-5000
Attorneys for Plaintiff
Kevin B. Allison
DATED: December 29, 2000
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CERTIFICATE OF SERVICE
I certify that I am this day serving a copy of the foregoing document upon the
persons 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 Mail, Harrisburg, Pennsylvania, with first-class postage, prepaid, as
follows:
Richard L. Dahlen, Esquire
James, Srnith, Durkin & Connelly, LLP
P. O. Box 650
Hershey, PA 17033
By:
METTE, EVANS & WOODSIDE
!lL&.~
Sup. Ct. I.D. No. 35193
3401 North Front Street
P.O. Box 5950
Harrisburg, PA 17110-0950
(717) 232-5000
Attorneys for Plaintiff
Kevin B. Allison
DATED: December 29,2000
237029
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