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HomeMy WebLinkAbout99-01930 ,,','-. .. .') ~ .~ .~ ,I ~,' >~. 5. Defendant Schwinn Cycling and Fitness, Inc. bears successor liability for the negligence, strict liability and breach of warranty of its predecessor corporation, Schwinn Bicycle Company, as set forth at length below because: (a) Schwinn Cycling and Fitness, Inc. expressly or impliedly agreed to assume such obligation; (b) The transaction between the two companies amounted to a consolidation or merger; (c) Schwinn Cycling and Fitness, Inc. is merely a continuation of Schwinn Bicycle Company; (d) The transaction that resulted in the formation of Schwinn Cycling and Fitness, Inc. was fraudulently entered into by Schwinn Bicycle Company andlor its successor entities in order to escape liability; and/or (e) Schwinn Cycling and Fitness, Inc. acquired all or substantially all of the manufacturing assets of Schwinn Bicycle Company and undertook essentially the same manufacturing operation as Schwinn Bicycle Company. 6. Defendant Nauti-Lis, Inc. T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery is a Pennsylvania corporation engaged in the business of selling bicycles and cycling products. 7. Defendant Nauti-Lis, Inc. T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery maintains a retail store and a regular place of business in Lemoyne, Cumberland County, Pennsylvania. 2 8. Defendant Nauti-Lis, Inc., T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery is the legal successor to Bushey's Schwinn Cyclery, Inc. 9. Defendant Nauti-Lis, Inc., T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery bears successor liability for the negligence, strict liability and breach of warranty of its predecessor corporation, Bushey's Schwinn cyclery, Inc., as set forth at length below because: (a) Nauti-Lis, Inc. expressly or impliedly agreed to assume such obligation; (b) The transaction between the two companies amounted to a consolidation or merger; (c) Nauti-Lis, Inc. is merely a continuation of Bushey's Schwinn Cyclery, Inc.; (d) The transaction resulted in the formation of Nauti- Lis, Inc. was fraudulently entered into by Bushey's Schwinn Cyclery, Inc. and/or its successor entities in order to escape liability; and/or (e) Nauti-Lis, Inc., acquired all or substantially all of the assets of Bushey's Schwinn Cyclery, Inc. and undertook essentially the same business operation. 10. The facts and occurrences hereinafter related took place on or about December 27, 1995 at approximately 10: 50 a. m., in Taylor Eisenhauer's grandparents' home located at 2297 Fairfield Circle, State College, Pennsylvania. 3 11. At said time and place, the minor Plaintiff was turning one of the pedals a Schwinn Model #XR-6 exercise bicycle with his right hand when his hand slipped off of the pedal and became caught in the chain and sprocket assembly of the bicycle. 12. The fourth and fifth fingers of minor Plaintiff Taylor Eisenhauer's right hand were amputated by the chain and sprocket assembly of the Schwinn Model #XR-6 exercise bicycle. 13. The Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident did not have a chain guard or sprocket assembly guard on its left hand side. 14. The aforesaid Schwinn Model #XR-6 exercise bicycle had been designed, fabricated, produced, manufactured, assembled, sold, marketed, supplied, distributed and/or placed into the stream of commerce by Schwinn Bicycle Company. 15. The aforesaid Schwinn Model #XR-6 exercise bicycle had been designed, fabricated, produced, manufactured, assembled, sold, marketed, supplied, distributed and/or placed into the stream of commerce by Bushey's Schwinn Cyclery, Inc. 16. Prior to the aforesaid incident, no substantial change had been made to the Schwinn Model #XR-6 exercise bicycle from the condition that it was in when it was manufactured, assembled and sold by the Defendants and/or their predecessor companies. 17. As a direct and proximate result of the negligence and willful misconduct of the Defendants and/or their predecessor corporations, and as a direct result of the defective and unreasonably dangerous design of the Schwinn Model #XR-6 exercise 4 bicycle, Minor Plaintiff Taylor Eisenhauer auffered serious injuries including, but not limited to, the amputation of the fourth and fifth fingers of his right hand. COUNT I - NEGLIGENCB TAYLOR BISENHAUER, A MINOR, BY GBORGB W. BISENHAUBR AND DBBRA A. BISBNHAUER, HIS PARBHTS AND NATURlU. GUARDIANS v. SCII1fINN CYCLING AND FITNESS. INC. IS. Paragraphs 1 through 17 of this Complaint are incorporated herein by reference. 19. Plaintiff's injuries as alleged herein were a direct and proximate result of the negligence of Schwinn Bicycle Company as set forth in paragraphs 21 through 31 below. 20. As a direct and proximate result of the negligence of its predecessor corporation, Schwinn Bicycle Company, as set forth in paragraphs 21 through 31 below, Defendant Schwinn Cycling and Fitness, Inc. is liable to the minor Plaintiff for the injuries alleged herein. 21. Schwinn Bicycle Company designed, fabricated, manufactured, and/or assembled the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in such a fashion that the minor Plaintiff's fingers were able to be drawn into the sprocket assembly of the bicycle and amputated. 22. Schwinn Bicycle Company designed, fabricated, manufactured, and/or assembled the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in such a fashion that it did not contain a chain guard on the left hand side of the bicycle. 5 23. Schwinn Bicycle Company designed, fabricated, manufactured, and/or assembled the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in such a fashion that it did not contain a guard or similar dovice around the sprocket assembly on the left hand side of the bicycle. 24. Schwinn Bicycle Company designed, fabricated, manufactured, and/or assembled the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in such a fashion that the chain and sprocket assemblies were not completely encased so as to prevent inadvertent access. 25. Schwinn Bicycle Company designed, fabricated, manufactured, andlor assembled the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in such a fashion that the it did not contain a mechanism that would permit the pedals and chain of the exercise bicycle to become or remain stationary while the wheel of the exercise bicycle was in motion. 26. Schwinn Bicycle Company failed to provide adequate, reasonable and necessary safety devices on the Schwinn Model #XR-6 exercise bicycle to render the bicycle safe when used for its intended purpose. 27. Schwinn Bicycle Company failed to provide adequate warnings concerning the dangers associated with the exposed chain and sprocket assembly of the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident. 28. Schwinn Bicycle Company failed to inspect the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in 6 order to determine whether competence to ensure the foreseeable misusers. 29. Schwinn Bicycle Company failed to adequately inspect the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident so as to have discovered the dangerous condition presented by the absence of adequate warnings and/or one or more of the safety mechanisms described in paragraphs 21 through 27 above. 30. Schwinn Bicycle Company sold and/or otherwise placed into the stream of commerce the Schwinn Model IXR-6 exercise bicycle involved in the aforesaid incident despite the fact that it lacked adequate warnings and safety devices as described in paragraphs 21 through 27 above. 31. Schwinn Bicycle Company and Defendant Schwinn Cycling and Fitness, Inc., failed to recall the Schwinn Model IXR-6 exercise bicycle, or warn the Plaintiff of the potential dangers posed by the lack of the aforesaid safety mechanisms, despite the fact that it was aware, or should have been aware, of the dangerous condition it was designed with safety of foreseeable reasonable users and created by the defects set forth above. 32. As a direct and proximate result of the negligence of the Defendant and its predecessor corporation, Schwinn Bicycle Company, as set forth above, Plaintiff Taylor Eisenhauer suffered significant injuries including, but not limited to, the amputation of the fourth and fifth fingers of his right hand. 33. The Schwinn Model #XR-6 exercise bicycle involved in the 7 aforesaid incident displayed no warning or limitation concerning the use ot the bicycle on the basis of age, size or any other characteristic of the user. 34. Plaintiff was a foreseeable user of the Schwinn Model #XR-6 exercise bicycle. 35. Plaintiff was four years old at the time of the accident and therefore can not, as a matter of law, be charged with contributory negligence. 36. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 37. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has undergone, and in the future will undergo, great mental and physical pain and suffering, great inconvenience in carrying out his daily activities, and a loss of life's pleasures and enjoyment, and a claim is made therefor. 38. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has been, and in the future will be, subject to humiliation and ridicule, and claim is made therefor. 39. As a direct and proximate result of his injuries, minor Plaintiff Taylor Eisenhauer has sustained a loss of earning power and earning capacity, and claim is made therefor. 8 WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands jUdgment against Defendant Schwinn Cycling and Fitness, Inc. in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. CO~ II - NEGLIGENCE TAYLOR EISEHBAUBR, A MINOR, BY GEORGE .. EISBHRAUBR AND DEBRA A. EISENHAUER, HIS PARENTS AND NATURAL GUARDIANS v. NAUTI-LIS, INC. T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADOUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY 40. Paragraphs 1 through 17 of this Complaint are incorporated herein by reference. 41. The minor Plaintiff's injuries as alleged herein were a direct and proximate result of the negligence of BUShey'S Schwinn Cyc1ery, Inc. as set forth in paragraphs 43 through 52 below. 42. As a direct and proximate result of the negligence of its predecessor corporation, Bushey'S Schwinn Cyclery, Inc., as set forth in paragraphs 43 through 52 below, Defendant Nauti-Lis, Inc. T/D/B/A BUShey'S Cycling and Fitness Headquarters and T/D/B/A BUShey'S Schwinn Cyclery is liable to the minor Plaintiff for the injuries alleged herein. 43. BUShey'S Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, 9 fabricated, manufactured and/or assembled in such a fashion that the minor Plaintiff's fingers could be drawn into the sprocket assembly of the bicycle and amputated. 44. Bushey's Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn Moael #XR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, fabricated, manufactured and/or assembled in such a fashion that it did not contain a chain guard on the left hand side of the bicycle. 45. Bushey's Schwinn Cyc1ery, Inc. assembled, marketed and/or sold the Schwinn Model IXR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, fabricated, manufactured and/or assembled in such a fashion that it did not contain a guard or similar device around the sprocket assembly on the left hand side of the bicycle. 46. Bushey's Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn Model IXR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, fabricated, manufactured and/or assembled in such a fashion that the chain and sprocket assemblies were not completely encased so as to prevent inadvertent access. 47. Bushey's Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn Model IXR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, fabricated, manufactured and/or assembled in such a fashion that it 10 did not contain a mechanism that would permit the pedals and chain of the exercise bicycle to become or remain stationary while the wheel of the exercise bicycle wae in motion. 48. Bushey's Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn HOdel IXR-6 exercise bicycle involved in the accident despite the fact that it lacked adequate, reasonable and necessary safety devices to render it safe when used for its intended purpose. 49. Bushey's Schwinn Cyclery, Inc. failed to inspect the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in order to determine whether it was designed with reasonable competence to ensure the safety of foreseeable users and foreseeable misusers. 50. BUShey'S Schwinn Cyclery, Inc. failed to adequately inspect the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident so as to have discovered the dangerous condition presented by the absence of adequate warnings and/or one or more of the safety mechanisms described in paragraphs 42 through 47 above. 51. BUShey'S Schwinn Cyc1ery, Inc. and Defendant Nauti-Lis, Inc. t/d/b/a Bushey'S CYCling and Fitness Headquarters failed to recall the Schwinn Model #XR-6 exercise bicycle, or warn the Plaintiff of the potential dangers posed by the lack of the aforesaid safety mechanisms, despite the fact that it was aware, or should have been aware, of the dangerous condition created by the design defects set forth above. 11 52. Bushey's Schwinn Cyclery, Inc. failed to provide adequate warnings concerning the dangers associated with the exposed chain and sprocket assembly when it assembled, marketed and/or sold the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident. 53. As a direct and proximate result of the negligence of the Defendant and/or its predecessor corporation as set forth above, Plaintiff Taylor Eisenhauer suffered significant injuries including, but not limited to, the amputation of the fourth and fifth fingers of his right hand. 54. The Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident displayed no warning or limitation concerning the use of the bicycle on the basis of age, size or any other characteristic of the user. 55. Plaintiff was a foreseeable user of the Schwinn Model #XR-6 exercise bicycle. 56. Plaintiff was four years old at the time of the accident and therefore can not, as a matter of law, be charged with contributory negligence. 57. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 58. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has undergone, and in the future will undergo, great mental and physical pain and 12 suffering, great inconvenience in carrying out his daily activities, and a loss of life's pleasures and enjoyment, and a claim is made therefor. 59. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has been, and in the future will be, subject to humiliation and ridicule, and claim is made therefor. 60. As a direct and proximate result of his injuries, minor Plaintiff Taylor Eisenhauer has sustained a loss of earning power and earning capacity, and claim is made therefor. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands judgment against Defendant Nauti-Lis, Inc. T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey'S Schwinn Cyclery in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. COUNT III - STRICT LIABILITY TAYLOR EISENHAUER, A MINOR, BY GEORGE W. EISENHAUER AND DEBRA A. EISENHAUER, HIS PARENTS AND NATURAL GUARDIANS v. SCHWINN CYCLING AND FITNESS, INC. 61. Paragraphs 1 through 17 and Count I of this Complaint are incorporated herein by reference. 62. The Defendant Schwinn Cycling and Fitness, Inc. is strictly liable to the Plaintiff under the Restatement (Second) of 13 Torts, 5402(a), for the actions of its predecessor corporation, Schwinn Bicycle Company, which supplied a product, the Schwinn MOdel #XR-6 exercise bicycle, that was defective. 63. The Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident contained design, fabrication, manufacturing and/or assembly defects as set forth in paragraphs 21 through 27 of Count I, which are incorporated herein by reference. 64. The Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident was defective because it lacked adequate warnings about the foreseeable dangers associated with the exposed chain and sprocket assembly. 65. The Schwinn Model #XR-6 exercise bicycle contained or displayed no warning or limitation concerning the use of the bicycle on the basis of age, size or any other characteristic of the user. 66. As a direct and proximate result of the defective nature of the exercise bicycle as set forth above, Plaintiff Taylor Eisenhauer suffered significant injuries including, but not limited to, the amputation of two fingers on his right hand. 67. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 68. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has undergone, and in the future will undergo, great mental and physical pain and suffering, great 14 inconvenience in carrying out his daily activities, and a loss of life's pleasures and enjoyment, and claim is made therefor. 69. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has been, and in the future will be, subject to humiliation and ridicule, and claim is made therefor. 70. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has sustained a loss of earning potential and earning capacity, and claim is made therefor. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands judgment against Defendant Schwinn Cycling and Fitness, Inc. in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. COUNT IV - STRICT LIABILITY TAYLOR EISENHAUER, A MINOR, BY GEORGE W. EISENHAUER AND DEBRA A. EISENHAUER, HIS PARENTS AND NATURAL GUARDIANS v. NAUTI-LIS, INC. T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADOUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY 71. Paragraphs 1 through 17 and Counts I and II of this Complaint are incorporated herein by reference. 72. The Defendant Nauti-Lis, Inc. T/D/B/A Bushey'S cycling and Fitness Headquarters and T/D/B/A Bushey'S Schwinn Cyclery is strictly liable to the Plaintiff under the Restatement (Second) of Torts, S402(a), for the actions of its predecessor corporation, Bushey'S Schwinn Cyclery, Inc., which supplied a product, the Schwinn Model #XR-6 exercise bicycle, that was defective. 15 73. The Schwinn Model IXR-6 exercise bicycle involved in the aforesaid incident contained design, fabrication, manufacturing and/or assembly defects as set forth in paragraphs 21 through 27 of Count I, which are incorporated herein by reference. 74. The Schwinn Model IXR-6 exercise bicycle involved in the aforesaid incident was defective because it lackad adequate warnings about the foreseeable dangers associated with the exposed chain and sprocket assembly. 75. The Schwinn Model IXR-6 exercise bicycle displ..yed no warning or limitation concerning the use of the bicycle on the basis of age, size or any other characteristic of the user. 76. As a direct and proximate result of the defective nature of the exercise bicycle as set forth above, Plaintiff Taylor Eisenhauer suffered significant injuries including, but not limited to, the amputation of two fingers on his right hand. 77. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 78. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has undergone, and in the future will undergo, great mental and physical pain and sUffering, great inconvenience in carrying out his daily activities, and a loss of life's pleasures and enjoyment, and claim is made therefor. 16 79. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has been, and in the future will be, subject to humiliation and ridicule, and claim is made therefor. 80. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has sustained a loss of earning potential and earning capacity, and claim is made therefor. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands jUdgment against Defendant Nauti-Lis, Inc. T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of intere&t and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. CLAIM V - BREACH OF WARRANTY '1'Alt'LOR EISENHAUER, A MINOR, BY GEORGE W. EISENHAUER AND DEBRA A. EISENHAUER, HIS PARENTS AND NATURAL GUARDIANS v. SCHWINN CYCLING AND FITNESS, INC. S 1. Paragraphs 1 through 17 and Count I of this Complaint are incorporated herein by reference. 82. By promoting, selling, supplying and/or delivering the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident, the Defendant and/or Defendant's predecessor corporation expressly and/or impliedly warranted that the exercise bicycle was merchantable, fit and safe for the ordinary purposes for which it was sold. 17 . " , , 83. Defendant Schwinn Cycling and Fitnee8, Inc. and/or its predecessor corporation, Schwinn Bicycle Company, breached both express warranties and implied warranties of merchantability an6 fitness tor a particular purchase, as contained in Uniform Commercial Code as adopted by the Commonwealth of Pennsylvania in 13 Pa.C.S.A 51101, n USL., by delivering and/or supplying the Schwinn Model #XR-6 exercise bicycle in an unsafe, defective and unfit condition as described above. 84. The resulting injuries to the minor Plaintiff were the proximate result of said breach of warranties. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands judgment against Defendant Schwinn Cycling and Fitness, Inc. in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. CLAIM V - BREACH OF WARRANTY TAYLOR EISENHAUER, A MINOR, BY GEORGE W. EISENHAUER AND DEBRA A. EISENHAUER, HIS PARENTS AND NATURAL GUARDIANS v. NAUTI-LIS, INC. T/D/B/A BUSHEY'S CYCLING AND PITNESS HEADOUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY 85. Paragraphs 1 through 17 and Count II of this Complaint are incorporated herein by reference. 86. By promoting, selling, supplying and/or delivering the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident, the Defendant and/or Defendant's predecessor corporation 18 . .' . expressly andlor impliedly warranted that the exercise bicycle was merchantable, fit and safe for the ordinary purposes for which it was ~old. 87. Defendant Nauti-Lis, Inc. T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery andlor its predecessor corporation, Bushey's Schwinn Cyclery, Inc., breached both express warranties and implied warranties of merchantability and fitness for a particular purchase, as contained in Uniform Commercial Code as adopted by the Commonwealth of Pennsylvania in 13 Pa.c.S.A 51101, ~ ~, by delivering andlor supplying the Schwinn Model IXR-6 exercise bicycle in an unsafe, defective and unfit condition as described above. 88. The resulting injuries to the minor Plaintiff were the proximate result of said breach of warranties. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands jUdgment against Defendant Nauti-Lis, Inc. T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. ~ Dav d S. W~snesk1, Esqu~re I.D. NO. 58796 4503 North Front street Harrisburg, PA 17110 Counsel for Plaintiff(s) Dated: March 31, 1999 19 :>- ~ <=J 1-'.' Ir. i':: ~W9 c;:' ,':: (5 _.J.r _, :r- CJ:"7Z1 -~: 0: C'):~ ;,.'! (OJ:'':: u.J;J~ - :f~-.d aJ" ' -:'. ~~'J CL.. .f '-_ .,.~ .... x ~ (.:2 ~ a.. tJ..Jt.:j Lt. ...t (~n.. o CI'\ .5 en U ;:.) ~\~ I~r-\ ~ ~ p ~ '\. '<00 t , ct' ~ ..... l.j j ~ '" "( ~ /\ :~ ...", ....s '-S r{\ 0.., r- ('<;"\ 00 ~ . l:'- t ~ ~--l ~ "0' "< . .. . . . , .. .. - .. _. .~.. HAMBURG & GOLDEN, P . C . By: JAMES P. GOLDEN MICHELE M. ROVINSKY ALPA PATEL I.D. Nos. 32169, 66587, 75651 1601 Market Street, Suite 565 Philadelphia, FA 19103-1443 215-255-8590 Attorneys for Defendant Schwinn Cycling & Fitness Inc. TAYLOR EISENHAUER, A Minor, By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians COURT OF COMMON PLEAS CUMBERLAND COUNTY No. 99-1930 Civil v. SCHWINN CYCLING & FITNESS, INC., and NAUTI-LIS, INC" T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY, INC, ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter our appearance on behalf of defendant Schwinn Cycling & Fitness, Inc.' The correct name of this defendant is Schwinn Cycling & Fitness Inc, Date: April 16, 1999 ~ ,T P. GOLDEN MI ELE M, ROVINSKY ALPA PATEL HAMBURG & GOLDEN, P.C, Attorneys for Defendant Schwinn Cycling & Fitness Inc, CERTIFICATE OF SERVICE entry of appearance by regular mail to the fOllowing: I certify that on April 16, 1999, I served the foregoing David S, Wisneski Angino & Rovner, P.C. 4503 North Front Street Harrisburg, PA 17110 Attorney for Plaintiff Taylor Eisenhauer, by George W. Eisenhauer and Debra A. Eisenhauer. his parents Thomas J. Williams, Esquire Martson. Deardorff, Williams, & Otto 10 East High Street Carlisle, PA 17013 Attorney for Defendant Nauti-Lis, Inc. ~ ..... ..:I' (.:: U: (.-; 0: . N ) .' r'., , ) - '.1.1; c."':'" l . ..:.{ , l..:...... "-- ! '..> 'J.,' ,-)'- ,.~ en J C1 "- " -' , ,,, , ii': [:,. -, F ....:;. :~~) 1.1- 0" U cr. U \ Z ~S5 G711 '!'Z-? s ~r.. _ Dollwt rot Rastrlded Delivery Fee on 8l ....... Reca;po Sho>mg 10 - Whom & Del OeiYMd 'a-_Sh>onJ.""", oC 0IIe.&hb...1Adci.. g TOTALPostaoeH... 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Addressee's Address (Only If rsquestsd and I.. Is paid) l JI PSF pi .-..,.... , I I ! TAYLOR EISENHAUER, A Minor. By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians COURT OF COMMON PLEAS CUMBERLAND COUNTY No, 99-1930 Civil v. SCHWINN CYCLING & FITNESS, INC.. and NAUTI-LIS. INC., T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY, INC, ST:I:PULAT:I:ON POR EXTENSION OJ' TIME It is hereby stipulated between counsel for plaintiff, Taylor Eisenhauer, by his parents George W. and Debra A. Eisenhauer, and counsel for defendant, Schwinn Cycling & Fitness Inc. that Defendant Schwinn Cycling & Fitness Inc, will have an extension of time until June 1, 1999, to answer, plead or otherwise respond to the complaint. There have been no previous extensions of time, J~EN MICHELE M. ROVINSKY ALPA PATEL I.D. Nos. 32169. 66587, 75651 HAMBURG & GOLDEN. 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AM 1 WI' (.-.-t 1\4 :,_...,u,~ ,,\1 .fll.... ul.'O'~(W4'11flAr,\4 "1101" TAYLOR EISENHAUER, a Minor, by GEORGE W, EISENHAUER and DEBRA A. EISENHAUER, his PlIrcnts wId Natural GUlIrdillns, Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v, CIVIL ACTION. LAW NO, 99.1930 SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LIS, INC, TIDIBIA BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and TIDIBIA BUSHEY'S SCHWINN CYCLERY, INC., Defendants JURY TRIAL DEMANDED DF.FF.NDANT NAI1TI-I.IS.INC.'S ANSWF.R WITH NF.W MATTF.R ANn CROSS CLAIM TO PLAINTIFFS' COMPLAINT TO: TAYLOR EISENHAUER, a Minor, by GEORGE W, EISENHAUER and DEBRA A, EISENHAUER, Plaintiffs, by their attorney, DAVID S. WISNESKI, ESQUIRE YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER AND CROSS CLAIM WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAYBE ENTERED AGAINST YOU, TO: SCHWINN CYCLING & FITNESS, INC" Defendant, and its attorney, ALP A PATEL, ESQ, YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED CROSS CLAIM WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU, AND NOW, comes Defendant Nauti-Lis, Inc, by and through its attorneys, MARTS ON DEARDORFF WILLIAMS & OTTO, and avers as follows in Answer to Plaintiffs' Complaint: I. Denied, After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to Plaintiffs residence or date ofbirth, 2, Denied, After reasonable investigation, answering Defendllnt is without knowledge or information sufficient to form a belief as to the state of incorporation or license of Defendant Schwinn Cycling & Fitness, Inc, 3, Admitted, 4.5. Denied. Aller reasonable investigation, answering Defendant is without knowledge or infommtion sufficient to foml a belief as 10 Ihe relationship of Defendanl Schwinn Cycling & Fitness, Inc. witb Schwinn Bicycle Company. It is further denicd as a Icgal conclusion that requircs no answcr. 6.7. Denied. Defendant .Nauti-Lis, Inc. docs not do busincss as Bushcy's Schwinn Cyclery. 8.9. Denied as a lcgal conclusion. It is further dcnicd that Defcndant Nauti-Lis, Inc. is a Icgal successor to Bushcy's Schwinn Cyclery, Inc. 10- I 3. Denicd. Aller reasonable investigation, answcring Defendant is without knowledge or information sufficient to form a belief as to when or where any events took place. 14.15. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to fonn a bclicfas to thc manufacturer of the exercise bicycle referred to in Plaintiffs' Complaint. 16. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to fonn a belief as to the condition or changes of the exercise bicycle referred to in Plaintiffs' Complaint. 17. Denied as a conclusion oflaw. It is further denied that answering Defendant sold any product that was defective or unreasonably dangerous. COUNT I - NEGLIGENCE Tqylnr Fi~enhaller a Minor hy <1eor:ge W Ri~enhaller ami nehra A F.i~enhaller, his Parents and Natural Guardians v Schwinn Cycling and Fitness Ine 18.39. These allegations arc not directed to the answering Defendant. 2 COUNT II - N~:G1.1GENCE Taylor Eisenhauer, a Minor hy Georgc W. Eisenhauer and Debra A Eisenhauer... his Parents and Natural Guardians v. NauthLis.1nl:.l!dlhlll Bushcy.lCyclillll"nd Fitness Headquancrs and Ildlhlll Bushey's Sehwinn C:yclel)' r f f r ! . 40. Paragraphs 1-17 hcrcof arc incorporated hcrcin by reference thereto. 41. Denied as a conclusion of law. It is further denied that after reasonable investigation, answering Dcfendant is without knowledge or infonnation sufficicnl to fonn a belicf as to whcthcr the exercise bicycle rcferrcd to in the Plaintiffs' Complaint was sold and/or distributed by Bushey's Schwinn Cyclcry, Inc. 42. Denied as a conclusion oflaw. 43. Denied as a conclusion of law. It is further dcnied that after reasonable investigation, answering Defendant is without knowledge or infonnation sufficicntto fonn a belief as to whether the exercise bicycle referred to in the Plaintiffs' Complaint was sold and/or distributed by Bushey's Sehwinn Cyclery, Inc. It is further denied that any exercise bicycle was sold by Bushey's Schwinn Cyclery, Inc. that was defective or unreasonably dangerous. 44-46. Denied that any bicycle sold by Bushey's Schwinn Cyclery, Inc. did not contain a chain guard on the appropriate side of the bicycle. 47. . Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the type of pedal and chain mechanism on the exercise bicycle referred to in Plaintiffs' Complaint. 48. Denied. On infonnation received, Bushey's Schwinn Cyclery, Inc. did not sell any bicycle that was not safe for its intended purpose. 49. Denied. On infonnation received, Bushey's Schwinn Cyclery, Inc. sold only safe bicycles. 50. Denied. On infonnation received, Bushey's Schwinn Cyclery, Inc. did not sell any bicycle with a dangerous condition, inadequate warnings or anyone of the allcgations described in Paragraphs 42 through 47 of Plaintiffs' Complaint. 3 51. Denied. On infom13tion reecived, thcre was no rcason to recall any bicycle sold by Bushey's Schwinn Cyclcry, Inc. 52. Dcnied. On information rcceived, Bushcy's Schwinn Cyclcry, Inc. provided adequate warnings and instructions for all bicycles sold. 53. Denied. Allcr reasonable investigation, answering Dcfendant is without knowledge or infonnation sufficient to form a belief as to the injurics, ifany, suffered by the Plaintiff. 54. Denied. After reasonable investigation, answering Defendant is without knowledge or infonnation sufficient to form a belief as to warnings or limitations involved with the exercise bicycle referred to in Plaintiffs' Complaint. 55. Denied. If Plaintiff was a four year old boy, it is doubtful he would need to use an exercise bicycle. 56. Denied. Aller reasonable investigation, answering Defendant is without knowledge or infonnation sufficient to form a belief as to the age of Plaintiff. 57. Denied. Aller reasonable investigation, answering Defendant is without knowledge or infonnation sufficient to fonn a belief as to the medical expenses, if any, incurred by Plaintiff. 58. Denied. After reasonable investigation, answering Defendant is without knowledge or infonnation sufficient to fonn a belief as to the pain and suffering, or the like, ifany, suffered by Plaintiff. 59. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to fonn a belief as to the humiliation or ridicule, or the like, if any, suffered by the Plaintiff. 60. Denied. After reasonable investigation, answering Defendant is without knowledge or infonnation sufficient to form a belief as to the loss of earning capacity or power, if any, suffered by Plaintiff. WHEREFORE, Defendant Nauti-Lis, Inc. demands judgment against Plaintiff, plus costs. 4 COUNT III - STRICT I.IABILlTY Taylor Eisenhaucr, a Minor, b)!JJcorgc W. Eisenbauer and Debra A Eisenhaucr, his Paret1ls.llIlli.NalUraLGuanlians '/ Schwinn...Cy~ and Fitness.Jnc. 61- 70. Thesc ullcgations arc not dircctcd to thc answcring Dcfcndant. COUNT IV. STRICT LIABILITY Taylor Eisenhauer a Minor hy George W Eisenhauer and Dehra A Eisenhauer, his Parents and Natural Guardians v Nauti.[ is Ine tJdlb/a Rushey's Cycling and Fitness Headquarters and t/d/h/a Rushey's Schwinn CycleI)' 71. Paragraphs I through 17 and Counts I and II of this Answcr are incorporated hcrcin by reference thercto. 72. Denied as a conclusion of law. On infom13tion rcceivcd, it is further spccifically denied that any exercisc bicycle for which answering Defcndant is responsible was defcctive or unreasonably dangerous. 73. Denied. On information receivcd, it is dcnicd that any bicycle sold or distributed by answering Defendant was defective in its design or manufacture. 74. Denied. On information rcceivcd, it is denicd that any bicycle sold or distributcd by answering Defendant was defective as to its warnings. 75. Denied. All bicycles sold by answering Defendant contained appropriate wamings. 76. Denied. After reasonable investigation, answering Defcndant is without knowledge or information sufficient to form a belief as to the injury, if any, suffered by Plaintiff. 77. Denied. After rcasonable investigation, answering Dcfendant is without knowledge or infonnation sufficient to fonn a belief as to medical and rehabilitative expenses, if any, incurred by Plaintiff. 78. Denied. After reasonable i!1vestigation, answering Defendant is without knowledge or information sufficient to form a belief as to pain and suff~ring, and the like, ifany, suffered by Plaintiff. 5 NEW MATTER 89. Plaintiffs' action is barred by thc applicablc statutcs of limitations. 90. To the cxtcnt thc Plaintiffs claim sound in warranty, they arc barred for failure to give prompt and timely notice. 91. Thc product in qucstion may havc been misused, abused, mishandled, inadequately maintained and/or substantially modi lied. 92. If the Plaintiff suffcred the injuries alleged herein, which is denied, then recovery herein is barred by his assumption of the risk of such injuries. 93. If the Plaintiffsuffcrcd the injuries allegedly herein, which is denied, those injuries were the result of actions or inactions by other parties who answering Defendant has no control and whose conduct it is not responsible. 94. Answering Defendant was not in existence when the product in question was sold. 95. Answering Defendants gave no warranties, either expressed or implied to Plaintiffs. 96. The exercise bicycle referred to in Plaintiffs' Complaint was being put through unreasonable use at the time of the alleged injury that is the subject of this suit. 97. At the time of the injuries referred to in Plaintiffs' Complaint, the exercise bicycle in question was not in the same or a substantially similar condition as it was when it left the possession or control of the vendor, whoever that was. WHEREFORE, answering Defendant demands judgment against Plaintiffs. CROSS CLAIM PURSUANT TO PA. R.C.P. 2252(d) Nallti.[ is Ine, Defendant v Sehwinn Cyeling & Fitne.s [ne, Defendant 98. Plaintiffs' Complaint is incorporated herein by reference thereto solely for the purposes ofthis cross claim without admitting any of the allegations contained therein, except to the extent set forth in the answer herein being filed by Defendant Nauti-Lis, Inc. 99. Ifit is judicially detennined that Plaintiffs' avennents in their Complaint are true and CO!Tect and Plaintiffs are entitled to recover damages, then it is averred by Defendant Nauti-Lis, Inc. that Defendant Schwinn Cycling & Fitness, Inc. is solely responsible to Plaintiff, and, therefore, is 7 alone liable or liable over to Dcfcndant Nauti.Lis, Inc. for thc causc of action and any damagcs thai Plaintiffs declarcd in this suit on thc basis of avcnncnts found in Plaintiffs' Complaint and incorporatcd hcrcin by refcrence thercto. 100. Defendant Nauti-Lis, Inc.joins Defendant Schwinn Cycling & Fitncss, Inc. to protcct its right of contribution and indemnification (including their right to costs, expenses, fecs and attomcy's fecs) in the evcnt it is judicially detennined that said Defendant Schwinn Cycling & Fitncss, Inc. is jointly or scverally liable to the Plaintiffs, the existence of any liability on the part of Defendant Nauti-Lis, Inc. being cxpressly denied. WHEREFORE, Defendant Nauti-Lis, Inc. demands judgment against Defendant Schwinn Cycling & Fitness, Inc. for indemnification of all sums that may be adjudged against Defendant Nauti-Lis, Inc. in favor of Plaintiffs, as well as all costs, fees, expenses, and attomey's fees resulting from said action, or, in the alternative, Defendant Nauti.Lis, Inc. demands judgment against Defendant Schwinn Cycling & Fitness, Inc. for the appropriate part of the amount of damages and costs awarded to said Plaintiffs. CROSS CLAIM PURSUANT TO PA. R.C.P. 2252(d) Nallti~T.iSt Tnc nefendant v CieOl::ge W Eisenhauer and Debra A Risenh3uer, Additiona' Defendants 101. In the event it is judicially detennined that the exercise bicycle referred to in Plaintiffs' Complaint was defective and/or unreasonably dangerous, then Plaintiffs George W. Eisenhauer and Debra A. Eisenhauer, were negligent in their supervision of Plaintiff, Taylor Eisenhauer, were solely and are jointly responsible for any injuries suffered. 102. Ifit is judicially detennined that Plaintiffs' averments that the exercise bicycle was defective and/or unreasonably dangerous as true and correct, and Plaintiff is entitled to recover damages, then it is averred by Defendant Nauti.Lis, Inc. that Additional Defendants are solely responsible to Plaintiff, and, therefore, are alone liable or liable over to Defendant Nauti-Lis, Inc. for the cause of action and any damages that Plaintiff declared in this suit on the basis of avennents found in Plaintiffs' Complaint and incorporated hcrein by reference thereto. 8 . TO: PlaintlftB Taylor EiBenha.uer, A Hinor. By George W. Ehenhauer and Debra A. Eisenhauer, his Parents and Natural Cuardlana You are hereby notified to plead to the enclosed counterclaim within twenty (20) days from service h~reof, or ft default judgment may be entered against you. ~~lden. P.C. Attorney for Defendant Schwinn Cycling' Fitness Inc. HAMBURG & GOLDEN, P.C. By: JAMES P. GOLDEN MICHELE M. ROVINSKY ALPA PATEL I.D. Nos. 32169, 66587, 75651 1601 Market Street, Suite 565 Philadelphia, PA 19103-1443 215-255-8590 TAYLOR EISENHAUER, A Minor, By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians v. SCHWINN CYCLING & FITNESS, INC., and NAUTI-LIS, INC., T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY, INC. TO: Defendant Naut!-Lis. Inc., t/d/b/a Bushey'S Cycling and Fitness Headquarters and t/d/b/e Bushey'. Schwinn Cyclery, Inc. You are hereby notified to plead to the enclosed cro88clalm within twenty (20) days from service hereof. or a deCault jud~nt may be entered against you. ~ Halrllurg & Golden. P. C. Attorney for Defendant Schwinn Cycling & Fitness Inc. Attorneys for Defendant Schwinn Cycling & Fitness Inc. COURT OF COMMON PLEAS CUMBERLAND COUNTY No. 99-1930 civil ANSWER, NEW MATTER, NEW MATTER IN THE NATURE OF CROSSCLAIM PURSUANT TO PA. R. CIV. P. 2252(d) AND COUNTERCLAIM OF DEFENDANT SCHWINN CYCLING r. FITNESS INC. ANSWER 1. Denied. After reasonable investigation, Defendant Schwinn Cycling & Fitness Inc. ("SCF"), the correct name of defendant Schwinn Cycling and Fitness, Inc., is without knowledge or information sufficient to form a belief as to the truth of the allegations in this paragraph, and they are denied. 2. Admitted. 3. Denied as stated. SCF is engaged in the business of selling bicycles, fitness equipment and related products. SCF admits, on information and belief, that its products reach consumers in Cumberland County, Pennsylvania. By way of further response, the allegations in this paragraph constitute conclusions of law to which no response is required. 4. Denied. The allegations in this paragraph constitute conclusions of law to which no response is required. By way of further response, it is denied that SCF is the legal successor to Schwinn Bicycle Company. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. 5. (a)-(e) Denied. The allegations contained in paragraph 5 (a) through (el constitute conclusions of law to which no response is required. By way of further response, SCF is not a successor corporation of Schwinn Bicycle Company. SCF has never been involved in the manufacturing, designing, testing, formulating, selling, maintaining, leasing and/or distributing of the exercise bicycle, or any similar product, that forms the basis of the complaint. The Schwinn Bicycle Company Model XR-6 exercise 2 bicycle was produced by Schwinn Bicycle Company, a company that with eight of its affiliates filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code ("Bankruptcy Code") in 1992. After good faith, arms-length, negotiations, a predecessor of SCF purchased certain of the assets of Schwinn Bicycle Company, but under the Asset Purchase Agreement, which was confirmed by the Bankruptcy Court, Schwinn Bicycle Company retained all tort injury liabilities (irrespective of date of occurrence) and expressly assumed all such liabilities. SCF and its predecessor, Bicycle and Fitness Limited Partnership, were completely different entities from Schwinn Bicycle Company and had no relationship to Schwinn Bicycle Company. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. 6. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 6, and they are denied. 7. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 7, and they are denied. 8. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 8, and they are denied. 9. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 9, and they are denied. 3 10. Denied. After reasonable investigation, SCF is without knowledge or information sufficicnt to form a belief as to the truth of the allegations in paragraph 10, and they arc dcnicd. 11. Denied. After reasonable investigation, SCP is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph II, and they are denied. 12. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 12, and they are denied. 13. Denied. It is denied that the Schwinn Bicycle Company Model XR-6 involved in this incident did not contain a chain guard on the left side. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the remaining allegations in paragraph 13, and they are denied. 14. Admitted in part, denied in part. It is admitted that the Schwinn Bicycle Company Model XR-6 was sold by Schwinn Bicycle Company. SCF is without knowledge and information sufficient to form a belief as to the truth of whether Schwinn Bicycle Company designed, fabricated, produced, manufactured, assembled, marketed, supplied and/or distributed the Schwinn Bicycle Company Model XR-6 exercise bicycle. The remaining allegations in paragraph 14 constitute conclusions of law to which no response is required. 15. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 15 and they are denied. 4 16. Denied. SCF has never manufactured, assembled and sold Scwhinn Model XR-6 exercise bicycles. No predecessor company of SCF has ever manufactured, assembled and sold Scwhinn Model XR- 6 exercise bicycles. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the remaining allegations of paragraph 16, and they are denied. 17. Denied. After a reasonable investigation, SCF is without knOWledge and information sufficient to form a belief as to the truth of allegations in paragraph 17 concerning the alleged injuries suffered by minor plaintiff, Jared SChoenbrun, and they are denied. The remaining allegations of paragraph 17 constitute conclusions of law to which no response is required. COUNT I 18. SCF incorporated herein its responses to paragraphs 1 through 17 as if set forth in full. 19. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of plaintiff Taylor Eisenhauer's alleged injuries. The remaining allegations in paragraph 19 constitute conclusions of law to which no response is required. 20. Denied. SCF denies that Schwinn Bicycle Company is a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. The remaining allegations in paragraph 20 constitute conclusions of law to which no response is required. 5 21. Denied. The allegations in paragraph 21 constitute conclusions of law to which no response is required. and they are denied. 22. Denied. The Schwinn BicYCle Company Model XR-6 had a chain guard on the left side. 23. Denied. The Schwinn Bicycle Company Model XR-6 had a chain guard on the left side. 24. Denied. The Schwinn Bicycle Company Model XR-6 had a chain guard on the left side. 25. Denied. On information and belief. the Schwinn Bicycle Company Model XR-6 had a mechanism that would permit the pedals and chain of the exercise bicYCle to become or remain stationary while the wheel of the exercise bicycle was in motion. 26. Denied. The allegations in paragraph 26 constitute conclusions of law to which no response is required. and they are denied. By way of further response, SCF denies that the exercise bicycle was used for its intended purpose. 27. Denied. The allegations in paragraph 27 constitute conclusions of law to which no response is required. and they are denied. By way of further response, the exercise bicycle was intended to be used by adults, not children, and the bicycle'S brochure contained warnings as to dangers to children. 28. Denied. The allegations in paragraph 28 constitute conclusions of law to which no response is required, and they are denied. 29. Denied. The allegations in paragraph 29 constitute conclusions of law to which no response is required, and they are 6 denied. By way of further response, the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 30. Denied. The allegations in paragravh 30 constitute conclusions of law to which no response is required, and they are denied. By way of further response, the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 31. Denied. The allegations in paragraph 31 constitute conclusions of law to which no response is required. By way of further response, SCF has never been involved in the manufacturing, designing, testing, formulating, selling, maintaining, leasing, servicing, repairing and/or distributing of the exercise bicycle, or any similar product, that forms the basis of the complaint. 32. Denied. The allegations in paragraph 32 constitute conclusions of law to which no response is required. By way of further response, Schwinn Bicycle Company is not a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. 33. Denied. The exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 34. Denied. The exercise bicycle was intended to be used by adults, not children and, upon information and belief, the bicycle's brochure contained warnings as to dangers to children. 7 35. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of plaintiff Taylor Eisenhauer's age at the time of the alleged occurrence, and it is denied. The remaining allegations in paragraph 35 constituto conclusions of law to which no response is required. 36. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged injuries suffered and medical and rehabilitative expenses incurred by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 36 constitute conclusions of law to which no response is required. 37. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged physical and mental pain suffered by plaintiff Taylor Eisenhauer, inconvenience in carrying out his daily activities, and loss of life's pleasures and enjoyment, and they are denied. The remaining allegations in paragraph 37 constitute conclusions of law to which no response is required. 38. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged injuries, humiliation and ridicule suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 38 constitute conclusions of law to which no response is required. 39. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged injuries and loss of earning power and capacity suffered by 8 plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 39 constitute conclusions of law to which no response is required. WHEREFORE, Schwinn CYCling & Fitness Inc. demands that the court dismiss the complaint and enter judgment in its favor and against the plaintiffs George, Debra and Taylor Eisenhauer (the "Eisenhauers.), together with an award of costs and such other and further relief that the court deems just. COUNT II 40. - 60. SCF makes no answer to Count II as the allegations in these paragraphs are not directed to SCF. COt1N'1' II I 61. SCF incorporates herein its responses to paragraphs 1 through 60 as if set forth in full. 62. Denied. It is denied that Schwinn BicYCle Company is a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. SCF further denies that it, nor any of its predecessors, ever supplied the Schwinn Bicycle Company Model XR-6 exercise bicycle. The remaining allegations in paragraph 62 constitute conclusions of law to which no response is required. 63. Denied. The allegations in paragraph 63 constitute conclusions of law to which no response is required, and they are denied. By way of further response, SCF denies that it, nor any of its predecessors, ever designed, fabricated, manufactured and/or assembled the Schwinn Bicycle Company Model XR-6 exercise bicycle. 9 64. Denied. The allegations in paragraph 64 constitute conclusions of law to which no response is required, and they are denied. By way of further response. the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 65. Denied. The allegations in paragraph 65 constitute conclusions of law to which no response is required, and they are denied. By way of further response, the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 66. Denied. SCF is without knowledge and information sufficient to form a belief as to the alleged injuries suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 66 constitute conclusions of law to which no response is required. 67. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged injuries suffered and medical and rehabilitative expenses incurred by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 67 constitute conclusions of law to which no response is required. 68. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged physical and mental pain suffered by plaintiff Taylor Eisenhauer, inconvenience in carrying out his daily activities, and loss of life's pleasures and enjoyment, and they are denied. The 10 remaining allegations in paragraph 68 constitute conclusions of law to which no response is required. 69. Denied. SCF is without knowledge and information sufficient to fonn a belief as to the truth of the alleged injuries, humiliation and ridicule suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 69 constitute conclusions of law to which no response is required. 70. Denied. SCF is without knOWledge and information sufficient to fonn a belief as to the truth of the alleged injuries and loss of earning power and capacity suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 70 constitute conclusions of law to which no response is required. WHEREFORE, Schwinn cycling & Fitness Inc. demands that the court dismiss the complaint and enter judgment in its favor and against the Eisenhauers, together with an award of costs and such other and further relief that the court deems just. CLAIM IV 71. - 80. SCF makes no answer to Count IV as the allegations in these paragraphs are not directed to SCF. CLAIM V 81. SCF incorporates herein its responses to paragraphs 1 through 80 as if set forth in full. 82. Denied. It is denied that Schwinn Bicycle Company is a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any 11 manner. SCF further denies that it, nor any of its predecessors, ever sold, supplied and/or delivered the Schwinn Bicycle Company Model XR-6 exercise bicycle. The remaining allegations in paragraph 82 constitute conclusions of law to which no response is required, and they are denied. 83. Denied. It is denied that Schwinn Bicycle Company is a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. SCF further denies that it, nor any of its predecessors, ever delivere,l and/or supplied the Schwinn Bicycle Company Model XR-6 exercise bicycle. The remaining allegations in paragraph 83 constitute conclusions of law to which no response is required. 84. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged injuries suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations of paragraph 84 constitute conclusions of law to which no response is required. WHEREFORE, Schwinn Cycling & Fitness Inc. demands that the court dismiss the complaint and enter jUdgment in its favor and against the Eisenhauers, together with an award of costs and such other and further relief that the court deems just. CLAIM V (incorrectly numbered) 85 - 88. SCF makes no answer to Claim V (incorrectly numbered) as the allegations in these paragraphs are not directed to SCF. WHEREFORE, Schwinn Cycling & Fitness Inc. demands that the court dismiss the complaint and enter jUdgment in its favor 12 and against the Eisenhauers, together with an award of costs and such other and further relief that the court deems just. FIRST NEW MATTER NO SUCCESSOR LIABILITY 89. SCF incorporates herein its allegations in paragraphs 1-88 as if set forth in full. 90. SCF is engaged in the business of selling bicycles, fitness equipment and related products. SCF has never been involved in the manufacturing, designing, testing, formulating, selling, maintaining, leasing and/or distributing of the Schwinn Bicycle Company Model XR-6 exercise bicycle, or any similar product, that forms the basis of the complaint. Upon information and belief, the Schwinn Bicycle Company Model XR-6 exercise bicycle was produced by Schwinn Bicycle Company, a company that with eight of its affiliates filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code ("Bankruptcy Code") in 1992. A predecessor of SCF purchased certain of the assets of Schwinn Bicycle Company, but under the Asset Purchase Agreement, which was confirmed by the Bankruptcy Court, Schwinn Bicycle Company retained all tort injury liabilities (irrespective of date of occurrence) and expressly assumed all such liabilities. SCF and its predecessor, Bicycle and Fitness Limited Partnership, were completely different entities from Schwinn Bicycle Company and had no relationship to Schwinn Bicycle Company. 13 91. The transaction pursuant to which certain assets of Schwinn Bicycle Company were purchased specifically addressed the aSflwnption of certain liabilities by tl.e buyer, Bicycle and Fitness Limited Partnership, and the retention of certain liabilities by Schwinn Bicycle Company. The Assumption Agreement, which was approved by the Bankruptcy Court, provides: . . . Buyer [Bicycle and Fitness Limited Partnership] will not assume, undertake, accept or be bound by or responsible for, and Seller [Schwinn Bicycle Company] will be and remain liable for, .the fOllowing: All liabilities and obligations of Seller [Schwinn Bicycle Company] for death, personal injury, property damage or other damages based on any tort action; All liabilities and obligations of Seller [Schwinn Bicycle Company] to the extent reSUlting form [sic], caused by or arising out of, directly or indirectly, the conduct of the Business or ownership or lease of any of the Purchased Assets prior to the Closing or the Excluded Assets (including any properties or assets previously used in the Business) at any time inClUding without limitation product liability claims, warranty claims, claims for returns or allowances . . . * * * 92. The Bankruptcy Court, in its Order Approving the Purchase, approved the provisions of the Asset Purchase Agreement which provided that Bicycle and Fitness Limited Partnership would not assume any tort or product liability obligations of Schwinn Bicycle Company arising prior to the acquisition, January 20, 1993. The Bankruptcy Court further made the fOllowing findings of fact and conclusions of law as set forth in paragraph Q of its Order Approving the Purchase: The Buyer [Bicycle and Fitness Limited Partnership] is only buying the Purchased Assets 14 and is not a successor in interest to the Debtors [Schwinn Bicvcle Comnanvl, nor does the Buyer's [Schwinn Bicycle and Fitness Limited Partnership's] acquisition of the Purchased Assets reflect a continuity of the operations of the businesses of the Debtors [Schwinn Bicycle Company] . (Emphasis added.) 93. The Eisenhauers' claims against SCF based on the theory of successor liability are barred, in whole or in part, because (i) the Order Approving the Purchase approved the non- assumption of tort and product liability obligations by Bicycle and Fitness Limited Partnership and (ii) the Bankruptcy Court found and concluded as a matter of law that Bicycle and Fitness Limited Partnership is not a successor in interest to Schwinn Bicycle Company nor did the acquisition reflect a continuity of operations of Schwinn Bicycle Company. 94. The Eisenhauers' claims are barred, in whole or in part, because SCF is not successor in interest to Schwinn Bicycle Company under federal or state statutory or common law. SCF expressly did not assume any tort or product liability obligations of Schwinn Bicycle Company and Schwinn Bicycle Company expressly agreed to retain such liabilities. SCF' predecessor's, Bicycle and Fitness Limited Partnership, acquisition of certain of Schwinn Bicycle Company's assets did not establish a de facto merger or consolidation. SCF is not a continuation of Schwinn Bicycle Company. SCF does not own or operate any manufacturing facility formerly operated by Schwinn Bicycle Company nor has SCF continued the exercise bicycle product line of Schwinn Bic~'cle Company, 15 thereby precluding the imposition of product line liability on SCF. SECOND NEW HATTER CONTRIBUTORY NEGL%GENCE 95. The Eisenhauers' claims are barred, in whole or in part, by the contributory negligence of George and Debra Eisenhauer because, among other reasons, George and Debra. Eisenhauer failed to properly supervise minor plaintiff Taylor Eisenhauer when Taylor Eisenhauer was allegedly injured. 96. The Eisenhauers' claims are barred, in whole or in part, by the contributory negligence of Taylor Eisenhauer. 97. The Eisenhauers' claims are barred, in whole or in part, by the contributory negligence of co-defendant Nauti-Lis, Inc. t/d/b/a Bushey's Cycling and Fitness Headquarters and t/d/b/a Bushey's Schwinn Cyclery (collectively "Nauti-Lis"). 98. The Eisenhauers' claims are barred, in whole or in part, by the contributory negligence of third-parties over whom SCF had no control. THIRD NEW MATTER COMPARATIVE NEGLIGENCE 99. The Eisenhauers' claims are reduced, in whole or in part, by the doctrine of comparative negligence because, among other reasons, plaintiffs George and Debra Eisenhauer failed to properly supervise minor-plaintiff Taylor Eisenhauer at the home of third-party defendants Edward and Frances Eisenhauer when Taylor Eisenhauer was allegedly injured. 16 100. The Eisenhauers' claims are reduced, in whole or III part, by the negligence of Taylor Eisenhauer. 101. The Eisenhauers' claims are reduced, in whole or in part, by the negligence of co-defendant Nauti-Lis. 102. The Eisenhauers' claims are reduced, in wholo or in part, by the negligence of third-parties over whom SCF had no control. FOURTH NEW MATTER EXERCISE BICYCLE NOT USED FOR INTENDED PURPOSE 103. The Eisenhauers' claims are barred, in whole or in part, because the incident and damages, if any, were caused by the unintended, unauthorized and improper use of the exercise bicycle by minor plaintiff, Taylor Eisenhauer. The exercise bicycle was intended to be used by adults, not children and the bicycle's brochure contained warnings as to dangers to children. Plaintiffs George and Debra Eisenhauer, knew or had reason to know of the intended use and warnings with respect to it unauthorized use. Use of the product by Taylor Eisenhauer was the direct and proximate cause of Taylor Eisenhauer's injuries. FIFTH NEW MATTER ASSUMPTION OF RISK 104. The Eisenhauers' claims are barred, in whole or in part, by assumption of risk. 17 SXXTH NEW MATTER ABUSE. MXSUSE AND ALTERATXON OF PRODUCT 105. The Eisenhauers' claims are barred, in whole or in part, because the exercise bicycle was abused, altered, changed or tampered with subsequent to the manufacture, distribution and/or sale of the exercise bicycle. SEVENTH NEW MATTER FAX LURE TO FOLLOW XNSTRUCTXONS 106. The exercise bicycle contained printed instructions concerning its care. Plaintiffs George and Debra Eisenhauer failed to follow the instructions for the care of the exercise bicycle. Taylor Eisenhauer's alleged injuries would not have occurred if the George, Debra, Edward and Grace Eisenhauer followed such instructions concerning the care of the product. EXGHTH NEW MATTER CLAXMS BARRED BY OWN ACTIONS 107. The Eisenhauers' claims are barred, in whole or in part, by virtue of their own actions. 108. No action by SCF proximately caused the alleged injuries. NXNTH NEW MATTER NO WRONGFUL OR INTENTIONAL CONDUCT BY SCF 109. If the Eisenhauers suffered any damage or loss, such damage or loss was not caused by any wrongful or intentional conduct on the part of SCF. 18 TEN'l'H mr:W MATTER BARRED BY EOUITABLE DOCTRINES 110. The Eisenhauers' claims are barred, in whole or in part, by the doctrines of waiver, laches, estoppel, and unclean hands. ELEVENTH NEW MATTER COLLATERAL SOURCE 111. The Eisenhauers' claims are limited with respect to collateral sources. TWELFTH NEW MATTER NO STRICT LIABILITY 112. SCF denies that it is strictly liable in tort. THIRTEEN'l'H NEW MATTER CLAIMS CAUSED BY OTHERS 113. Any injuries or damages suffered by plaintiff Taylor Eisenhauer were caused by third person over which SCF had no control. FOURTEENTH NEW MATTER STATUTE OF LIMITATIONS 114. The Eisenhauers' action is barred by the applicable statute of limitations. WHEREFORE, Schwinn Cycling & Fitness Inc. demands that the court dismiss the complaint and enter jUdgment in its favor 19 'lIId tlgtlinst the Eisenhtluers, together with tin tlwtlrd of coato tlnd such oth~r tlnd further relief thtlt the court deems just. NJ:W MATTER IN THE NA'1'UIUI: OJ' A CROSSCLAIM AGAINST NAU'1'I-LIS, INC. '1'/D/B/A BUSHEY'S CYCLING AND J'I'1'NJ:SS HEADQUARTERS AND '1'/D/B/A BUSHEY'S SCHWINN CYCLERY, INC. ("NAU'1'I-LIS') PURSUANT '1'0 PI.. R. CIV. P. 2252ldl 115. SCF incorporates herein its allegations in paragraphs 1 through 113 as if set forth in full. 116. The Eisenhauers have sued defendant Nauti-Lis. Inc. t/d/b/a Bushey's Cycling and Fitness Headquarters and t/d/b/a Bushey's Schwinn Cyclery (collectively "Nauti-Lis") alleging liability to the Eisenhauers. 117. Defendant Nauti-Lis is solely liable to the Eisenhauers. 118. Defendant Nauti-Lis is liable over to the Eisenhauers for contribution and/or indemnity if SCF is found liable to the Eisenhauers. 119. Defendant Nauti-Lis is jointly and severally liable with SCF to the Eisenhauers. WHEREFORE, Defendant Schwinn cycling & Fitness Inc. demands judgment in its favor and against Nauti-Lis, Inc. t/d/b/a Bushey's Cycling and Fitness Headquarters and t/d/b/a Bushey's Schwinn Cyclery for all sums for which SCF might be found liable to the Eisenhauers, together with an award of costs and sucb other and further relief that the court deems just. 20 VI!:R%I'ICA'l'%ON I, JAMES P. GOLDEN, attorney for defendant Schwinn Cycling & Fitness Inc., verify that I am authorized to make this verification on behalf of Schwinn Cycling & Fitness Inc. I am making this verification pursuant to Pa. R. Civ. P. 1024(c) because Kevin Lamar, Senior Vice-President, Fitness Group, Schwinn Cycling & Fitness Inc., and any other employee of Schwinn cycling & Fitness Inc. who has knowledge or information, are outside the court's jurisdiction and a verification cannot be obtained in time for the filing of the answer, new matter, new matter in the nature of a crossclaim and counterclaim. I verify that the facts set forth in the foregoing answer, new matter, new matter in the nature of a crossclaim and counterclaim are true and correct to the best of my knowledge or information and belief. The sources of my knowledge or information are discussions I have had with Mr. Lamar and my review of various documents maintained by Schwinn Cycling & Fitness Inc. This verification is made subject to the penalties of 18 Pa. C. S. ~ 4904. ~D- WHEREFORE, Defendant Schwinn Cycling & Fitness Inc. demands judgment in its favor and against Nauti-Lis, Inc. for all sums for which SCF might be found liable to plaintiffs George, Debra and Taylor Eisenhauer, together with an award of costs and such other and further relief that the court jeems just. Date: 11t1Uf ;}.~ ItCf '1<7 J~~N MICH M. ROVINSKY ALPA PATEL I I. HAMBURG & GOLDEN, P.C. Attorneys for Defendant Schwinn Cycling & Fitness Inc. 2 ~ C:) ~-:. lf~ , '" , I.',! ':.,~' . , , -. ,") " ,-. ~, 0. l":"" .. : , 'L : - .. ) L :.) C , (..1'\ ,. , COMPLAINT 1. Schwinn Cycling & Fitness Inc. ("SCF") is a Delaware corporation that is licensed to conduct business in the Commonwealth of Pennsylvania. SCF is engaged in the business of selling bicycles, fitness equipment and related products. 2. On information and belief, minor plaintiff Taylor Eisenhauer, and his parents, George and Debra Eisenhauer are residents of the Commonwealth of Pennsylvania. 3. On information and belief, defendant Nauti-Lis, i r Inc. is a Pennsylvania corporation. 4. On information and belief, Edward Eisenhauer and Francis Eisenhauer, additional party defendants, are individual adult residents of the Commonwealth of pennsylvania, residing at 2297 Fairfield Circle, State College, Pennsylvania, 16801. George and Francis Eisenhauer are the grandparents of plaintiff Taylor Eisenhauer. 5. Plaintiff Taylok Eisenhauer, by and through his parents and natural guardians, George and Debra Eisenhauer, alleges that he sustained permanent injuries to his right hand on December 27, 1995, while he was turning one of the pedals of a Schwinn Bicycle Company Model XR-6 exercise bicycle with his right hand when it allegedly slipped off of the pedal and became caught in the chain and sprocket assembly of the bicycle. The alleged occurrence took place in the home of Taylor Eisenhauer's grandparents, additional party defendants, Edward and Francis Eisenhauer. 3 6. Plaintiffs Taylor, George and Debra Eisenhauer allege damages against defendants SCF and Nauti-Lis, Inc. through theories of successor liability, negligence, strict product liability and breach of warranty. A copy of the complaint is attached as Exhibit 1, 7. SCF has filed an answer, crossclaim and counterclaim, denying the claims. A copy of the answer, crossclaim and counterclaim is attached as Exhibit 2. 8. Nauti-Lis, Inc. has filed an answer, crossclaim and counterclaim, denying the claims. A copy of Nauti-Lis's answer, crossclaim and counterclaim is attached as Exhibit 3. 9. SCF has filed a reply to Nauti-Lis's crossclaim. A copy of SCF's reply to Nauti-Lis's crossclaim is attached as Exhibit 4. 10. Plaintiffs have filed a reply to Nauti-Lis's counterclaim. A copy of their reply is attached as Exhibit 5. COUNT I 11. SCF incorporates herein its allegations in paragraphs 1 through 8 as if set forth in full. 12. At the time of the occurrences alleged in the underlying lawsuit, the Schwinn Bicycle Company Model XR-6 exercise bicycle (the "exercise bicycle") was in the custody and possession of additional party defendants Edward and Francis Eisenhauer. The alleged occurrences in the underlying lawsuit took place in the home of additional party defendants Edward and Francis Eisenhauer. 4 r~ 13. The Schwinn Bicycle Company Model XR-6 exercise bicycle was intended to be used for exercise by adults and not for riding or play by children, and the exercise bicycle's brochure contained warnings as to dangers to children. 14. As instructed in the exercise bicycle brochure, children should not be left unattended with the exercise bicycle. rf the exercise bicycle is left unattended, the brochure provides instructions to tighten the pedal resistance control to lock the wheel and pedals so that they cannot be easily loosened by a small child. Additional party defendants, Edward and Francis Eisenhauer, kept the bicycle where it could be used by children without adult supervision. Additional party defendants Edward and Francis Eisenhauer left minor plaintiff Taylor Eisenhauer unattended with the exercise bicycle and failed to lock the wheel and pedals, contrary to the instructions in the exercise bicycle brochure. 15. Additional party defendants Edward and Francis Eisenhauer knew or should have known that children should not have been allowed access to the exercise bicycle because the exercise bicycle was not intended for use by children. 16. Upon information and belief, the exercise bicycle had originally been equipped with a chainguard or other protective device to enclose the sprocket and chain. Upon information and belief, additional party defendants Edward and Francis Eisenhauer abused, altered, removed, or tampered with the chainguard or other protective device on the exercise bicycle so that the sprocket and chain were no longer enclosed. 5 17. Additional party defendants Edward and Francis Eisenhauer knew or should have known that abusing, altering, removing or tampering with the chainguard or other protective device would have exposed the sprockets and chain on the exercise bicycle thereby creating a dangerous and unsafe condition for children. Notwithstanding the foregoing, additional party defendants Edward and Francis Eisenhauer allowed minor plaintiff, Taylor Eisenhauer, access to the exercise bicycle resulting in the alleged injuries. 18. Addi tional party defendants Edward and Francis Eisenhauer knew or should have known that the exercise bicycle was not intended for use by children. Notwithstanding the foregoing, Edward and Francis Eisenhauer allowed Taylor Eisenhauer access to the exercise bicycle resulting in the alleged injuries. 19. Additional party defendants Edward and Francis Eisenhauer's conduct constitutes negligence. 20. Additional party defendants Edward and Francis Eisenhauer are solely liable to plaintiffs. 21. Additional party defendants Edward and Francis Eisenhauer are liable over to SCF if SCF is found liable to plaintiffs. 22. Additional party defendants Edward and Francis Eisenhauer are jointly and severally liable with SCF to the plaintiffs. 6 WHEREFORE, Schwinn cycling & Fitness Inc. demands jUdgment in its favor and against Edward and Francis Eisenhauer for all sums for which SCF might be found liable to Taylor, George and Debra Eisenhauer, together with an award of costs and such other and further relief that the court deems just. Date: June 8, 1999 J$~DEN MICHELE M. ROVINSKY ALPA PATEL HAMBURG & GOLDEN, P.C. Attorneys for Defendant Schwinn Cycling & Fitness Inc. 7 TAYLOR EISENHAUER, A Minor, By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians, IN THE .COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 11- /q2D (l;;L Plaintiff . . CIVIL ACTION - LAW. f: ~r- ruri{ ?;:.IJ 6i~: -'- ~lJ ~. .C;o ~(~? ~ JURY TRIAL DEMANDED I \0 ~ \0 "'" ;g 5! , "'ill - :"9 d ." it'? :~ )~ ~ €5~ ~~ $! c =n ...; v. SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LIS, INC. T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY, 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 Complaint and Notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the plaintiff. 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 Administrator Fourth Floor Cumberland County Courthouse CarliSle, PA 17013 (717) 240-6200 147554/LES , , ~ TAYLOR EISENHAUER, A Minor, By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parent. and Natural Guardian., IN THE .COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA . . NO. 11- /q;0 ~ Plaintiff Y. . . CIVIL ACTION - LAW- e \0 ~ \0 ?ji'7i - .S] ;g 1 ~~ , :Ii ~6 - 0 :>, ~ ~. #] " c." <5~ ~ .. :on );! JURY TRIAL DEMANDED Q ~ I SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LIS, INC. T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY, 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 Complaint and Notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the plaintiff. 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 Administrator Fourth Floor CUmberland County Courthouse Carlisle, PA 17013 (717) 240-6200 147554/LES TAYLOR EISENHAUER, A Minor, By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians, Plaintiff v. SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LIS, INC. TIDIBIA BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and TIDIBIA BUSHEY'S SCHWINN CYCLERY, Defendants ., IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. : CIVIL ACTION - LAW . . : JURY TRIAL DEMANDED COMPLAINT 1. Plaintiff Taylor Eisenhauer, who was born on February 10, 1991, is a minor who resides with his parents and natural guardians, George W. Eisenhauer and Debra A. Eisenhauer, in Mechanicsburg, York County, Pennsylvania. 2. Defendant Schwinn Cycling and Fitness, Inc. is a Delaware corporation that is licensed to conduct business in the Commonwealth of Pennsylvania. 3. Defendant Schwinn CYCling and Fitness, Inc. designs and produces bicycles and cycling products that are marketed, sold, supplied and placed into the stream of commerce in such a manner that they reach consumers in the Commonwealth of Pennsylvania, including Cumberland County, Pennsylvania. 4. Defendant Schwinn Cycling and Fitness, Inc. is the legal successor to Schwinn Bicycle Company. 113547/CLERKl , . . . 5. O.t.ndant Schwinn Cyoling and Fitn..., Inc. b.ars succ..sor liability tor the negligence, strict liability and breach ot warranty ot its predecessor corporation, Schwinn Bicycle Company, as set torth at length below because: (a) Schwinn Cycling and Fitness, Inc. expressly or impliedly agreed to assume such obligation; . (b) The transaction between the two companies amounted to a consolidation or merger; fc) Schwinn Cycling and Fitness, Inc. is merely a continuation of Schwinn Bicycle Company; Cd) The transaction that resulted in the formation ot Schwinn Cycling and Fitness, Inc. was fraudulently entered into by Schwinn Bicycle Company andlor its successor entities in order to escape liability; andlor (e) Schwinn Cycling and Fitness, Inc. acquired all or substantially all of the manufacturing assets of Schwinn Bicycle Company and undertook essentially the same manufacturing operation as Schwinn Bicycle Company. 6. Defendant Nauti-Lis, Inc. TIDIBIA BUShey'S Cycling and Fitness Headquarters and T/D/B/A BUShey'S Schwinn Cyclery is a Pennsylvania corporation engaged in the business of selling bicycles and CYCling products. 7. Defendant Nauti-Lis, Inc. T/D/B/A Bushey'S Cycling and Fitness Headquarters and T/D/B/A BUShey'S Schwinn Cyclery maintains a retail store and a regular place of business in Lemoyne, Cumberland County, Pennsylvania. 2 . . 8. Defendant Nauti-Lis, Inc., T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery is the legal successor to Bushey's Schwinn Cyclery, Inc. 9. Defendant Nauti-Lis, Inc., T/D/B/A Bushey's cycling and Fitness Headquarters and T/D/B/A Bushey'S Schwinn Cyclery bears successor liability for the negligence, strict liability and breach of warranty of its predecessor corporation, Bushey's Schwinn Cyclery, Inc., as set forth at length below because: (a) Nauti-Lis, Inc. expressly or impliedly agreed to assume such obligation; (b) The transaction between the two companies amounted to a consolidation or merger; (c) Nauti-Lis, Inc. is merely a continuation of BUShey'S Schwinn Cyclery, Inc.; (d) The transaction resulted in the formation of Nauti- Lis, Inc. was fraudulently entered into by Bushey's Schwinn Cyclery, Inc. and/or its successor entities in order to escape liability; and/or (e) Nauti-Lis, Inc., acquired all or substantially all of the assets of BUShey'S Schwinn Cyclery, Inc. and undertook essentially the same business operation. 10. The facts and occurrences hereinafter related took place on or about December 27, 1995 at approximately 10:50 a.m., in Taylor Eisenhauer's grandparents' home located at 2297 Fairfield circle, State College, Pennsylvania. 3 ., r I , i i f 11. At said time and place, the minor Plaintiff was turning one of the pedals a Schwinn Model #XR-6 exercise bicycle with his right hand when his hand slipped off of the pedal and became caught in the chain and sprocket assembly of the bicycle. 12. The fourth and fifth fingers of minor Plaintiff Taylor Eisenhauer's right hand were amputated by the chain and sprocket assembly of the Schwinn Model IXR-6 exercise bicycle. 13. The Schwinn Model IXR-6 exercise bicycle involved in the aforesaid incident did not have a chain guard or sprocket assembly guard on its left hand side. 14. The aforesaid Schwinn Model #XR-6 exercise bicycle had been designed, fabricated, produced, manufactured, assembled, sold, marketed, supplied, distributed and/or placed into the stream of commerce by Schwinn Bicycle Company. 15. The aforesaid Schwinn Model IXR-6 exercise bicycle had been designed, fabricated, produced, manufactured, assembled, sold, marketed, supplied, distributed and/or placed into the stream of commerce by Bushey's Schwinn cyclery, Inc. 16. Prior to the aforesaid incident, no substantial change had been made to the Schwinn Model #XR-6 exercise bicycle from the condition that it was in when it was manufactured, assembled and sold by the Defendants and/or their predecessor companies. 17. As a direct and proximate result of the negligence and willful misconduct of the Defendants and/or their predecessor corporations, and as a direct result of the defective and unreasonably dangerous design of the Schwinn Model #XR-6 exercise 4 . . bicycle, Minor Plaintiff Taylor Eisenhauer suffered serious injuries including, but not limited to, the amputation of the fourth and fifth fingers of his right hand. COUXT I - WlGLIGENCB TAYLOR BISDlHAUBR, A KIIlOR, BY GBORGI .. BISBJlHAUBR AND DBBRA A. BISDlHAUBR, HIS PARZIl'l'S UD IlATlJRAL GUARDIMlS v. SCHWINN CYCLING AND FITNESS. INC. 18. Paragraphs 1 through 17 ot this Complaint are incorporated herein by reference. 19. Plaintiff's injuries as alleged herein were a direct and proximate result of the negligence of Schwinn Bicycle Company as set forth in paragraphs 21 through 31 below. 20. As II direct and proximate result of the negligence of its predecessor corporation, Schwinn Bicycle company, as set forth in paragraphs 21 through 31 below, Defendant Schwinn cycling and Fitness, Inc. is liable to the minor Plaintiff for the injuries alleged herein. 21. Schwinn Bicycle Company designed, fabricated, manufactured, and/or assembled the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in such a fashion that the minor Plaintiff's fingers were able to be drawn into the sprocket assembly of the bicycle and amputated. 22. Schwinn Bicycle Company designed, fabricated, manufactured, and/or assembled the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in such a fashion that it did not contain a chain guard on the left hand side of the bicycle. 5 23. Schwinn Bicycle Company designed, fabricated, manufactured, and/or assembled the Schwinn Model IXR-G exercise bicycle involved in the aforesaid incident in such a fashion that it did not contain a guard or similar device around tho sprocket assembly on the left hand side of the bicycle. 24. Schwinn Bicycle Company designed, fabricated, manufactur~d, and/or assombled the Schwinn Model IXR-G exercise bicycle involved in the aforesaid incident in such a fashion that the chain and sprocket assemblies were not completely encased so as to prevent inadvertent access. 25. Schwinn Bicycle Company designed, fabricated, manufactured, and/or assembled the Schwinn Hodel IXR-G exercise bicycle involved in the aforesaid incident in such a fashion that the it did not contain a mechanism that would permit the pedals and chain of the exercise bicycle to become or remain stationary while the wheel of the exercise bicycle was in motion. 2G. Schwinn Bicycle Company failed to provide adequate, reasonable and necessary safety devices on the Schwinn Model IXR-G exercise bicycle to render the bicycle safe when used for its intended purpose. 27. Schwinn Bicycle Company failed to provide adequate warnings concerning the dangers associated with the exposed chain and sprocket assembly of the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident. 28. Schwinn Bicycle Company failed to inspect the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident in 6 . designed with of foreseeable reasonable order to determine whether it was competence to ensure the safety foreseeable misusers. 29. Schwinn Bicycle company failed to adequately inspect the Schwinn Hodel #XR-6 exercise bicycle involved in the aforesaid incident so as to have discovered the dangerous condition presented by the absence of adequate warnings and/or one or more of the safety mechanisms described in paragraphs 21 through 27 above. 30. Schwinn Bicycle Company Bold and/or otherwise placed into the stream of commerce the Schwinn Hodel #XR-6 exercise bicycle involved in the aforesaid incident despite the fact that it lacked adequate warnings and safety devices as described in paragraphs 21 through 27 above. 31. Schwinn Bicycle Company and Defendant Schwinn cycling and Fitness, Inc., failed to recall the Schwinn Hodel #XR-6 exercise bicycle, or warn the Plaintiff of the potential dangers posed by the lack of the aforesaid safety mechanisms, despite the fact that it was aware, or should have been aware, of the dangerous condition users and created by the defects set forth above. 32. As a direct and proximate result of the negligence of the Defendant and its predecessor corporation, Schwinn Bicycle company, as set forth above, Plaintiff Taylor Eisenhauer suffered significant injuries including, but not limited to, the amputation of the fourth and fifth fingers of his right hand. 33. The Schwinn Model #XR-6 exercise bicycle involved in the .. ator.said incident displayed no warning or limitation concerning the use ot the bicycle on the basis ot age, size or any other characteristic ot the user. 34. Plaintitt was a foreseeable user of the Schwinn Model IXR-6 exercise bicycle. 35. Plaintitt was tour years old at the time ot the accident and there tore can not, as a matter of law, be charged with contributory negligence. 36. As a direct and proximate result ot the atoresaid injuries, minor Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 37. As a direct and proximate result of t.he aforesaid injuries, minor Plaintiff Taylor Eisenhauer has undergone, and in the future will undergo, great mental and physical pain and suffering, great inconvenience in carrying out his daily activities, and a loss of life's pleasures and enjoyment, and a claim is made therefor. 38. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has been, and in the future will be, subject to humiliation and ridicule, and claim is made therefor. 39. As a direct and proximate result of his injuries, minor Plaintiff Taylor Eisenhauer has sustained a loss of earning power and earning capacity, and claim is made therefor. 8 WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George w. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands judgment against Defandant Schwinn cycling and Fitness, Inc. in an amount in Elxcess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. COURT II - NEGLIGENCE TAYLOR EISBNJIAtJD, A KINOR, BY GEORGB W. IlISBIlHAUBR AND DEBRA A. EISBNJIAUER, HIS PAREH'l'S AND NATURAL GUARDI~S v. NAUTI-LIS, INC. T/D/B/A BUSHEY'S CYCLING AND PI'1'NBSS HEADOUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY 40. Paragraphs 1 through 17 of this Complaint are incorporated herein by reference. 41. The minor Plaintiff's injuries as alleged herein were a direct and proximate result of the negligence of Bushey'S Schwinn cyclery, Inc. as set forth in paragraphs 43 through 52 below. 42. As a direct and proximate result of the negligence of its predecessor corporation, BUShey'S Schwinn cyclery, Inc., as set forth in paragraphs 43 through 52 below, Defendant Nauti-Lis, Inc. T/D/B/A Bushey'S cycling and Fitness Headquarters and T/D/B/A Bushey'S Schwinn Cyclery is liable to the minor Plaintiff for the injuries alleged herein. 43. BUShey'S Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, 9 fabricated, manufactured and/or assembled in such a fashion that the minor Plaintiff's fingers could be drawn into the sprocket assembly of the bicycle and amputated. 44. Bushoy's Schwinn cyclery, Inc. assembled, marketed and/or sold the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, fabricate~ manufactured and/or assembled in such a fashion that it did' not contain a chain guard on the left hand side of the bicycle. 45. Bushey's Schwinn cyclery, Inc. assembled, marketed and/or sold the Schwinn MOdel #XR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, fabricated, manufactured and/or assembled in such a fashion that it did not contain a guard or similar device around the sprocket assembly on the left hand side of the bicycle. 46. Bushey's Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, fabricated, manufactured and/or assembled in such a fashion that the chain and sprocket assemblies were not completely encased so as to prevent inadvertent access. 47. Bushey's Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident despite the fact that the bicycle was designed, fabricated, manufactured and/or assembled in such a fashion that it 10 ., did not contain a mechanism that would pormit the pedals and chain ot the exercise bicycle to become or remain stationary while the wheel ot the exercise bicycle was in motion. 48. Bushey's Schwinn Cyclery, Inc. assembled, marketed and/or sold the Schwinn Model #XR-6 exercise bicycle involved in the accident despite the tact that it lacked adequate, reasonable and necessary .satety devices to render it sate when used tor its intended purpose. 49. Bushey'S Schwinn cyclery, Inc. tailed to inspect the Schwinn MOdel #XR-6 exercise bicycle involved in the aforesaid incident in order to determine whether it was designed with reasonable competence to ensure the safety of foreseeable users and foreseeable misusers. SO. Bushey's Schwinn CYclery, Inc. failed to adequately inspect the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident so as to have discovered the dangerous condition presented by the absence of adequate warnings and/or one or more of the safety mechanisms described in paragraphs 42 through 47 above. 51. Bushey's Schwinn Cyclery, Inc. and Defendant Nauti-Lis, Inc. t/d/b/a Bushey's cycling and Fitness Headquarters failed to recall the Schwinn Model #XR-6 exercise bicycle, or warn the Plaintiff of the potential dangers posed by the lack of the aforesaid safety mechanisms, despite the fact that it was aware, or should have been aware, of the dangerous condition created by the design defects set forth above. 11 ., 52. Bushey's Schwinn cyclery, Inc. tailed to provide adequate warnings concerning the dangers associated with the exposed chain and sprocket assembly when it assembled, marketed and/or sold the schwinn Hodel #XR-6 exerciss bicycle involved in the aforesaid incident. 53. As a direct and proximate result ot the negligence of the Defendant ~nd/or its predecessor corporation as set torth above, Plaintiff Taylor Eisenhauer suffered significant . injuries including, but not limited to, the amputation of the fourth and fifth fingers of his right hand. 54. The Schwinn Hodel #XR-6 exercise bicycle involved in the aforesaid incident displayed 'no warning or limitation concerning the use of the bicycle on the basis of age, size or any other characteristic of the user. 55. Plaintiff was a foreseeable user of the Schwinn Hodel #XR-6 exercise bicycle. 56. Plaintiff was four years old at the time of the accident and therefore can not, as a matter of law, be charged with contributory negligence. 57. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 58. As a direct and proximate result of the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has undergone, and in the future will undergo, great mental and physical pain and 12 sUffering, great inconvenience in carrying out his daily activities, and a loss of lite's pleasures and enjoyment, and a claim is made therefor. 59. As a direct and proximate result ot the aforesaid injuries, minor Plaintiff Taylor Eisenhauer has been, and in the future will be, subject to humiliation and ridicule, and claim is made therefor. 60. As a direct and proximate-result of his injuries, minor Plaintiff Taylor Eisenhauer has sustained a loss of earning power and earning capacity, and claim is made therefor. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands jUdgment against Defendant Nauti-Lis, Inc. T/D/B/A Bushey's cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. COUNT III - STRICT LIABILITY TAYLOR EISENHAUER, A KINOR, BY GEORGE W. EISENHAUER AND DEBRA A. EISENHAUER, HIS PARENTS AND NATllRAL GUARDIANS V. SCHWINN CYCLING AND FITNESS. INC. 61. Paragraphs 1 through 17 and Count I of this Complaint are incorporated herein by reference. 62. The Defendant Schwinn cycling and Fitness, Inc. is strictly liable to the Plaintiff under the Restatement (Second) of 13 . . .. Torts, 5402(a), for the actions of its predecessor corporation, Schwinn Bicycle company, which supplied a product, the Schwinn Model IXR-6 exercise bicycle, that was defective. 63. The Schwinn MOdel IXR-6 exercise bicycle involved in the aforesaid incident contained design, fabrication, manufacturing and/or assembly defects as set forth in paragraphs 21 through 27 of Count I, w~ich are incorporated herein by reference. 64. The Schwinn Model IXR-6 exercise bicycle involved in the aforesaid incident was defective because it lacked adequate warnings about the foreseeable dangers associated with the exposed chain and sprocket assembly. 65. The Schwinn Model IXR-6 exercise bicycle contained or displayed no warning or limitation concerning the use of the bicycle on the basis of age, size or any other characteristic of the user. 66. As a direct and proximate result of the defective nature of the exercise bicycle as set forth above, Plaintiff Taylor Eisenhauer suffered significant injuries inClUding, but not limited to, the amputation of two fingers on his right hand. 67. As a direct and proximate result o~ his injuries, Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 68. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has undergone, and in the future will undergo, great mental and physical pain and SUffering, great 14 , . ." Torts, 5402(a), for the actions of its predecessor corporation, Schwinn Bicycle Company, which supplied a product, the Schwinn Model #XR-6 exercise bicycle, that was defective. 63. The Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident contained design, fabrication, manufacturing and/or assembly defects as set forth in paragraphs 21 through 27 of Count I, wnich are incorporated herein by reference. 64. The Schwinn MOdel #XR-6 exercise bicycle involved in the aforesaid incident was defective because it lacked adequate warnings about the foreseeable dangers associated with the exposed chain and sprocket assembly. 65. The Schwinn Model #XR-6 exercise bicycle contained or displayed no warning or limitation concerning the use of the bicycle on the basis of age, size or any other characteristic of the user. 66. As a direct and proximate result of the defective nature of the exercise bicycle as set forth above, Plaintiff Taylor Eisenhauer suffered significant injuries including, but not limited to, the amputation of two fingers on his right hand. 67. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 68. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has undergone, and i.n the future will undergo, great mental and physical pain and suffering, great 14 I"' . inconvenience in carrying out his daily activities, and a loss of life's pleasures and enjoyment, and claim is made therefor. 69. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has been, and in the future will be, subject to humiliation and ridicule, and claim is made therefor. 70. As a direct and proximate result of his injuries, Plaintiff . Taylor Eisenhauer has sustained a loss of earning potential and earning capacity, and claim is made therefor. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands judgment against Defendant Schwinn Cycling and Fitness, Inc. in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exciusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. COUNT IV - STRICT LIABILITY TAYLOR EISENHAUER, A MINOR, BY GEORGE W. EISENHAUER AND DEBRA A. EISENHAUER, HIS PARENTS AND NATllRAL GUARDIANS v. NAUTI-LIS, INC. TIDIBIA BUSHEY'S CYCLING AND FITNESS HEADOUARTERS and TIDIBIA BUSHEY'S SCHWINN CYCLERY 71. Paragraphs 1 through 17 and Counts I and II of this complaint are incorporated herein by reference. 72. The Defendant Nauti-Lis, Inc. T/D/B/A Bushey'S Cycling and Fitness Headquarters and T/D/B/A Bushey'S Schwinn Cyclery is strictly liable to the Plaintiff under the Restatement (Second) of Torts, 5402 (a), for the actions of its predecessor corporation, Bushey'S Schwinn Cyclery, Inc., which supplied a product, the Schwinn Model #XR-6 exercise bicycie, that was defective. 15 73. The Schwinn Hodel IXR-6 exercise bicycle involved in the aforesaid incident contained design, fabrication, manufacturing and/or assembly defects as set forth in paragraphs 21 through 27 of Count I, which are incorporated herein by reference. 74. The Schwinn Hodel IXR-6 exercise bicycle involved in the aforesaid incident was defective because it lacked adequate warnings about the foreseeable dangers associated with the exposed chain and sprocket assembly. 75. The Schwinn Hodel #XR-6 exercise bicycle displayed no warning or limitation concerning the use of the bicycle on the basis of age, size or any other characteristic of the user. 76. As a direct and proximate result of the defective nature of the exercise bicycle as set forth above, Plaintiff Taylor Eisenhauer suffered significant injuries inClUding, but not limited to, the amputation of two fingers on his right hand. 77. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has incurred, and will in the future incur, medical and rehabilitative expenses, and claim is made therefor. 78. As a direct and proximate result of his injuries, Plaintiff Taylor Eisenhauer has undergone, and in the future will undergo, great mental and physical pain and suff.ering, great inconvenience in carrying out his daily activities, and a loss of life's pleasures and enjoyment, and claim is made therefor. 16 . .. I . . 79. As a direct and proximate result ot his injurie., Plaintift Taylor Eisenhauer has been, and in the tuture will be, subject to humiliation and ridicule, and claim i. made theretor. 80. As a direct and proximate result ot his injuries, Plaintitf Taylor Eisenhauer has sustained a loss ot earning potential and earning capacity, and claim is made theretor. WHEREFORE, Plaintift Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural quardians, demands jUdgment against Defendant Nauti-Lis, Inc. T/D/B/A Bushey's cycling and Fitness Headquarters and T/D/B/A Bushey'S Schwinn Cyclery in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. CLAIM V - BREACH OF WARRA!l'1'Y TAYLOR EISENHAUER, A MINOR, BY GEORGE W. EI8ENHAUER AND DEBRA A. EISENHAUER, HIS PARENTS AND NATtlRAL GUARDIANS v. SCHWINN CYCLING AND FITNESS. INC. 81. Paragraphs 1 through 17 and Count I of this Complaint are incorporated herein by reference. 82. By promoting, selling, supplying and/or delivering the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident, the Defendant and/or Defendant's predecessor corporation expressly and/or impliedly warranted that the exercise bicycle was merchantable, fit and safe for the ordinary purposes for which it was sold. 17 . . ., 83. Detendant Schwinn Cycling and Fitness, Inc. andlor its predecessor corporation, Schwinn Bicycle Company, breached both express warranties and implied warranties of merchantability and titness tor a particular purchase, as contained in Unitorm Commercial Code as adopted by the Commonwealth of Pennsylvania in 13 Pa.C.S.A 51101, .c.t JWL., by delivering andlor supplying the Schwinn Model #XR-6 exercise bicycle in an unsafe, defective and unfit condition as described above. 84. The resulting injuries to the minor Plaintiff were the proximate result of said breach of warranties. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands judgment against Defendant Schwinn Cycling and Fitness, Inc. in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. CLAIM V - BREACH OF WARRAlI'rY TAYLOR EISENHAUER, A MINOR, BY GEORGE W. EISENHAUER AND DEBRA A. EISENHAUER, HIS PARENTS AND NATURAL GUARDIANS v. NAUTI-LIS, INC. T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY 85. Paragraphs 1 through 17 and Count II of this Complaint are incorporated herein by reference. 86. By promoting, selling, supplying andlor delivering the Schwinn Model #XR-6 exercise bicycle involved in the aforesaid incident, the Defendant andlor Defendant's predecessor corporation 18 ,. , . . expressly andlor impliedly warranted that the exercise bicycle was merchantable, tit and sate tor the ordinary purposes for which it was sold. 87. Detendant Nauti-Lis, Inc. TIDIBIA Bushey's Cycling and Pitness Headquarters and TIDIBIA Bushey's Schwinn Cyclery andlor its predecessor corporation, Bushey's Schwinn Cyclery, Inc., breached Poth express warranties and implied warranties of merchantability and titness for a particular purchase, as contained in UnHorm commercial Code as adopted by the Commonwealth of Pennsylvania in 13 Pa.C.S.A 51101, ~ ~, by delivering andlor supplying the Schwinn Model #XR-6 exercise bicycle in an unsafe, defective and unfit condition as described above. BB. The resulting injuries to the minor Plaintiff ~ere the proximate result of said breach of warranties. WHEREFORE, Plaintiff Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, demands judgment against Defendant Nauti-Lis, Inc. TIDIBIA Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery in an amount in excess of Thirty-Five Thousand Dollars ($35,000), exclusive of interest and costs, and in excess of any jurisdictional amount requiring compulsory arbitration. Dav d S. W~snesk~, Esqu~re 1.D. NO. 5B796 4503 North Front Street Harrisburg, PA 17110 Counsel for Plaintiff(s) Dated: March 31, 1999 19 ,. . . VBRIFICATION We, George W. Eisenhauer and Debra A. Eisenhauer, verify that . the ~acts set forth in the foregoing Complaint are true and correct to the best of our knowledge, information, and belief. We understand that this verification is made subject to the provisions of 18 Pa.C.s. 54904, relating to unsworn falsification to authorities. 2J lvf:~ GeOr~iSenhauer UP.. to Q. ?:'A,..lO-UJ.A.. Debra A. Eisenhauer Date: 'j. ')0 . tlc; ANSWER 1. Denied. After reasonable investigation, Defendant Schwinn cycling & Fitness Inc. ("SCF"), the correct name of defendant Schwinn Cycling and Fitness, Inc., is without knowledge or information sufficient to form a belief as to the truth of the allegations in this paragraph, and they are denied. 2. Admitted. 3. Denied us stated. SCF is engaged in the business of selling bicycles, fitness equipment and related products. SCF admits, on information and belief, that its products reach consumers in Cumberland County, Pennsylvania. By way of further response, the allegations in this paragraph constitute conclusions of law to which no response is required. 4. Denied. The allegations in this paragraph constitute conclusions of law to which no response is required. By way of further response, it is denied that SCF is the legal successor to Schwinn Bicycle Company. SCF has never been affiliated or associated with Schwinn BicYCle Company in any manner. 5. (a)-(e) Denied. The allegations contained in paragraph 5 (a) through (e) constitute conclusions of law to which no response is required. By way of further response, SCF is not a successor corporation of Schwinn Bicycle Company. SCF has never been involved in the manufacturing, designing, testing, formulating, selling, maintaining, leasing and/or distributing of the exercise bicYCle, or any similar product, that forms the basis of the complaint. The Schwinn BicYCle Company Model XR-6 exercise 2 bicycle waD produced by Schwinn Bicycle Company, a company that with eight of its affiliates filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code ("Bankruptcy Code") in 1992. After good faith, arms-length, negotiations, a predecessor of SCF purchased certain of the assets of Schwinn Bicycle Company, but under the Asset Purchase Agreement, which was confirmed by the Bankruptcy Court, Schwinn BiCYCle Company retained all tort injury liabilities (irrespective of date of occurrence) and expressly assumed all such liabilities. SCF and its predecessor, BiCYCle and Fitness Limited Partnership, were compleLely different entities from Schwinn Bicycle Company and had no relationship to Schwinn Bicycle Company. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. 6. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 6, and they are denied. 7. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 7, and they are denied. 8. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 8, and they are denied. 9. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 9, and they are denied. 3 10. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 10, and they are denied. 11. Denied, After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph II, and they are denied. 12. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 12, and they are denied. 13. Denied. It is denied that the Schwinn Bicycle Company Model XR-6 involved in this incident did not contain a chain guard on the left side. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the remaining allegations in paragraph 13, and they are denied. 14. Admitted in part, denied in part. It is admitted that the Schwinn Bicycle Company Model XR-6 was sold by Schwinn Bicycle Company. SCF is without knowledge and information sufficient to form a belief as to the truth of whether Schwinn Bicycle Company designed, fabricated, produced, manufactured, assembled, marketed, supplied and/or distributed the Schwinn Bicycle Company Model XR-6 exercise bicycle. The remaining allegations in paragraph 14 constitute conclusions of law to which no response is required. 15. Denied. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the allegations in paragraph 15 and they are denied. 4 16. Denied. SCF has never manufactured, assembled and sold Scwhinn Model XR-6 exercise bicycles. No predecessor company of SCF has ever manufactured, assembled and sold Scwhinn Model XR- 6 exercise bicycles. After reasonable investigation, SCF is without knowledge or information sufficient to form a belief as to the truth of the remaining allegations of paragraph 16, and they are denied. 17. Denied. After a reasonable investigation, SCF is without knowledge and information sufficient to form a belief as to the truth of allegations in paragraph 17 concerning the alleged injuries suffered by minor plaintiff, Jared Schoenbrun, and they are denied. The remaining allegations of paragraph 17 constitute conclusions of law to which no response is required. COUN'l' X 18. SCF incorporated herein its responses to paragraphs 1 through 17 as if set forth in full. 19. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of plaintiff Taylor Eisenhauer's alleged injuries. The remaining allegations in paragraph 19 constitute conclusions of law to which no response is required. 20. Denied. SCF denies that Schwinn Bicycle Company is a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. The remaining allegations in paragraph 20 constitute conclusions of law to which no response is required. 5 21. Denied, The allegations in paragraph 21 constitute conclusions of law to which no response is required, and they are denied. 22. Denied, The Schwinn Bicycle Company Model XR-6 had a chain guard on the left side. 23. Denied. The Schwinn Bicycle Company Model XR-6 had a chain guard on the left side. 24. Denied. The Schwinn Bicycle Company Model XR-6 had a chain guard on the left side. 25. Denied. On information and belief, the Schwinn Bicycle Company Model XR-6 had a mechanism that would permit the pedals and chain of the exercise bicycle to become or remain stationary while the wheel of the exercise bicycle was in motion. 26. Denied. The allegations in paragraph 26 constitute conclusions of law to which no response is required, and they are denied. By way of further response, SCF denies that the exercise bicycle was used for its intended purpose. 27. Denied. The allegations in paragraph 27 constitute conclusions of law to which no response is required, and they are denied. By way of further response, the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 28. Denied. The allegations in paragraph 28 constitute conclusions of law to which no response is required, and they are denied. 29. Denied. The allegations in paragraph 29 constitute conclusions of law to which no response is required, and they are 6 denied. By way of further reDponse, the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 30. Denied, The allegations in paragraph 30 constitute conclusions of law to which no response is required, and they are denied, By way of further response, the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 31. Denied. The allegations in paragraph 31 constitute conclusions of law to which no response is required. By way of further response, SCF has never been involved in the manufacturing, designing, testing, formulating, selling, maintaining, leasing, servicing, repairing and/or distributing of the exercise bicycle, or any similar product, that forms the basis of the complaint. 32. Denied. The allegations in paragraph 32 constitute conclusions of law to which no response is required. By way of further response, Schwinn Bicycle Company is not a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. 33. Denied. The exercise bicycle was intended to be used by adults, not children, and the biCYCle'S brochure contained warnings 'as to dangers to children. 34. Denied. The exercise bicycle was intended to be used by adults, not children and, upon information and belief, the bicycle's brochure contained warnings as to dangers to children. 7 35. Denied. SCF is without Knowledge and information sufficient to form a belief as to the truth of plaintiff Taylor Eisenhauer'S age at the time of the alleged occurrence, and it is denied. The remaining allegations in paragraph 35 constitute conclusions of law to which no response is required. 36. Denied. SCF is without knOWledge and information sufficient to form a belief as to the truth of the alleged injuries suffered and medical and rehabilitative expenses incurred ~, plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 36 constitute conclusions of law to which no response is required. 37. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged physical and mental pain suffered by plaintiff Taylor Eisenhauer, inconvenience in carrying out his daily activities, and loss of life's pleasures and enjoyment, and they are denied. The remaining allegations in paragraph 37 constitute conclusions of law to which no response is required. 38. Denied. SCF is without knOWledge and information sufficient to form a belief as to the truth of the alleged injuries, humiliation and ridicule suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 38 constitute conclusions of law to which no response is required. 39. Denied. SCF is without knOWledge and information sufficient to form a belief as to the truth of the alleged injuries and loss of earning power and capacity suffered by 8 plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 39 constitute conclusions of law to which no response is required. WHEREFORE, Schwinn Cycling & Fitness Inc. demands that the court dismiss the complaint and enter jUdgment in its favor and against the plaintiffs George, Debra and Taylor Eisenhauer (the "Eisenhauers"), together with an award of costs and such other and further relief that the court deems just. COUN'l' IX 40. - 60. SCF makes no answer to Count II as the allegations in these paragraphs are not directed to SCF. COUN'l' :r n: 61. SCF incorporat~s herein its responses to paragraphs 1 through 60 as if set forth in full. 62. Denied. It is denied that Schwinn BicYCle Company is a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn BicYCle Company in any manner. SCF further denies that it, nor any of its predecessors, ever supplied the Schwinn Bicycle Company Model XR-6 exercise bicycle. The remaining allegations in paragraph 62 constitute conclusions of law to which no response is required. 63. Denied. The allegations in paragraph 63 constitute conclusions of law to which no response is required, and they are denied. By way of further response, SCF denies that it, nor any of its predecessors, ever designed, fabricated, manufactured and/or assembled the Schwinn BicYCle Company Model XR-6 exercise bicycle. 9 64. Denied. The allegations in paragraph 64 constitute conclusions of law to which no response is required, and they are denied. By way of further response, the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 65. Denied. The allegations in paragraph 65 constitute conclusions of law to which no response is required, and they are denied. By way of further response, the exercise bicycle was intended to be used by adults, not children, and the bicycle's brochure contained warnings as to dangers to children. 66. Denied. SCF is without knowledge and information sufficient to form a belief as to the alleged injuries suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 66 constitute conclusions of law to which no response is required. 67. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged injuries suffered and medical and rehabilitative expenses incurred by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 67 constitute conclusions of law to which no response is required. 68. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged physical and mental pain suffered by plaintiff Taylor Eisenhauer, inconvenience in carrying out his daily activities, and loss of life's pleasures and enjoyment, and they are denied. The 10 remaining allegations in paragraph 68 constitute conclusions of law to which no response is required. 69. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged injuries, humiliation and ridicule suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 69 constitute conclusions of law to which no response is required. 70. Denied. SCF is without knOWledge and information sufficient to form a belief as to the truth of the alleged injuries and loss of earning power and capacity suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations in paragraph 70 constitute conclusions of law to which no response is required. WHEREFORE, Schwinn CyCling & Fitness Inc. demands that the court dismiss the complaint and enter judgment in its favor and against the Eisenhauers, together with an award of costs and such other and further relief that the court deems just. CLAIM IV 71. - 80. SCF makes no answer to Count IV as the allegations in these paragraphs are not directed to SCF. CLAIM V 81. SCF incorporates herein its responses to paragraphs 1 through 80 as if set forth in full. 82. Denied. It is denied that Schwinn Bicycle Company is a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any 11 manner. SCF further denies that it, nor any of its predecessors, ever sold, supplied and/or delivered the Schwinn Bicycle Company Model XR-6 exercise bicycle, The remaining allegations in paragraph 82 constitute conclusions of law to which no response is required, and they are denied. 83. Denied. It is denied that Schwinn Bicycle Company t I [ i f , I is a predecessor corporation of SCF. SCF has never been affiliated or associated with Schwinn Bicycle Company in any manner. SCF further denies that it, nor any of its predecessors, ever delivered and/or supplied the Schwinn Bicycle Company Model XR-6 exercise bicycle. The remaining allegations in paragraph 83 constitute conclusions of law to which no response is required. 84. Denied. SCF is without knowledge and information sufficient to form a belief as to the truth of the alleged injuries suffered by plaintiff Taylor Eisenhauer, and they are denied. The remaining allegations of paragraph 84 constitute conclusions of law to which no response is required. WHEREFORE, Schwinn Cycling & Fitness Inc. demands that the court dismiss the complaint and enter jUdgment in its favor and against the Eisenhauers, together with an award of costs and such other and further relief that the court deems just. CLAIM V (incorrectly numbered) 85 - 88. SCF makes no answer to Claim V (incorrectly numbered) as the allegations in these paragraphs are not directed to SCF. WHEREFORE, Schwinn CyCling & Fitness Inc. demands that the court dismiss the complaint and enter jUdgment in its favor 12 and against the Eisenhauers, together with an award of costs and such other and further relief that the court deems just. "IRST NEW HATTER NO SUCCESSOR LIABILITY 89. SCF incorporates herein' its allegations in paragraphs 1-88 as if set forth in full. 90. SCF is engaged in the business of selling bicycles, fitness equipment and related products. SCF has never been involved in the manufacturing, designing, testing, formulating, selling, maintaining, leasing and/or distributing of the Schwinn Bicycle Company Model XR-6 exercise bicycle, or any similar product, that forms the basis of the complaint. Upon information and belief, the Schwinn Bicycle Company Model XR-6 exercise bicycle was produced qy Schwinn Bicycle Company, a company that with eight of its affiliates filed vOluntary petitions for relief under Chapter 11 of Title 11 of the United States Code ("Bankruptcy Code") in 1992. A predecessor of SCF purchased certain of the assets of Schwinn Bicycle Company, but under the Asset Purchase Agreement, which was confirmed by the Bankruptcy Court, Schwinn Bicycle Company retained all tort injury liabilities (irrespective of date of occurrence) and expressly assumed all such liabilities. SCF and its predecessor, Bicycle and Fitness Limited Partnership, were completely different entities from Schwinn Bicycle Company and had no relationship to Schwinn BicYCle Company. 13 91. The transaction pursuant to which certain assets of Schwinn Bicycle Company were purchased specifically addressed the assumption of certain liabilities by the buyer, Bicycle and Fitness Limited Partnership, and the retention of certain liabilities by Schwinn Bicycle Company. The Assumption Agreement, which was approved by the Bankruptcy Court, provides: . . . Buyer [Bicycle and Fitness Limited Partnership] will not assume, undertake, accept or be bound by or responsible for, and Seller [Schwinn Bicycle Company] will be and remain liable for, .the following: All liabilities and obligations of Seller [Schwinn Bicycle Company] for death, personal injury, property damage or other damages based on any tort action; r I All liabilities and obligations of Seller [Schwinn Bicycle Company] to the extent resulting form [sic], caused by or arising out of, directly or indirectly, the conduct of the Business or ownership or lease of any of the Purchased Assets prior to the Closing or the Excluded Assets (including any properties or assets previously used in the Business) at any time including without limitation product liability claims, warranty claims, claims for returns or allowances . . . * * * 92. The Bankruptcy Court, in its Order Approving the Purchase, approved the provisions of the Asset Purchase Agreement which provided that Bicycle and Fitness Limited partnership would not assume any tort or product liability obligations of Schwinn Bicycle Company arising prior to the acquisition, January 20, 1993. The Bankruptcy Court further made the following findings of fact and conclusions of law as set forth in paragraph Q of its Order Approving the Purchase: The Buyer [Bicycle and Fitness Limited Partnership] is only buying the Purchased Assets 14 and is not a successor in interest to the Debtors (Schwinn Bicycle Comoany], nor does the Buyer's [Schwinn BiCYCle and Fitness Limited Partnership's] acquisition of the Purchased Assets reflect a continuity of the operations of the businesses of the Debtors [Schwinn Bicycle Company] . (Emphasis added.) 93. The Eisenhauers' claims against SCF based on the theory of SUccessor liability are barred, in whole or in part, because (i) the Order Approving the Purchase approved the non- assumption of tort and product liability obligations by Bicycle and Fitness Limited Partnership and (ii) the Bankruptcy Court found and concluded as a matter of law that Bicycle and Fitness Limited Partnership is not a successor in interest to Schwinn Bicycle Company nor did the acquisition reflect a continuity of operations of Schwinn BiCYCle Company. 94. The Eisenhauers' claims are barred, in whole or in part, because SCF is not successor in interest to Schwinn Bicycle Company under federal or state statutory or common law. SCF expressly did not assume any tort or product liability obligations of Schwinn BiCYCle Company and Schwinn Bicycle Company expressly agreed to retain such liabilities. SCF' predecessor's, Bicycle and Fitness Limited Partnership, acquisition of certai.n of Schwinn Bicycle Company's assets did not establish a de facto merger or consolidation. SCF is not a continuation of Schwinn Bicycle Company. SCF does not own or operate any manufacturing facility formerly operated by Schwinn BiCYCle Company nor has SCF continued the exercise bicycle product line of Schwinn Bicycle Company, 15 thereby precluding the imposition of product line liability on SCF. SECOND NEW MATTER CONTR7BUTORY NEGLIGENCE 95. The Eisenhauers' claims are barred, in whole or in part, by the contributory negligence of George and Debra Eisenhauer because, among other reasons, George and Debra. Eisenhauer failed to properly supervise minor plaintiff Taylor Eisenhauer when Taylor Eisenhauer was allegedly injured. 96. The Eisenhauers' claims are barred, in whole or in part, by the contributory negligence of Taylor Eisenhauer. 97. The Eisenhauers' claims are barred, in whole or in part, by the contributory negligence of co-defendant Nauti-Lis, Inc. t/d/b/a Bushey's Cycling and Fitness Headquarters and t/d/b/a Bushey's Schwinn Cyclery (collectively "Nauti-Lis") . 98. The Eisenhauers' claims are barred, in whole or in part, by the contributory negligence of third-parties over whom SCF had no control. TH7RD NEW MATTER COMPARATIVE NEGLIGENCE 99. The Eisenhauers' claims are reduced, in whole or in part, by the doctrine of comparative negligence because, among other reasons, plaintiffs George and Debra Eisenhauer failed to properly supervise minor-plaintiff Taylor Eisenhauer at the home of third-party defendants Edward and Frances Eisenhauer when Taylor Eisenhauer was allegedly injured. 16 100. The Eisenhauers' claims are reduced, in whole or in part, by the negligence of Taylor Eisenhauer. 101. The Eisenhauers' claims are reduced, in whole or in part, by the negligence of co-defendant Nauti-Lis. 102. The Eisenhauers' claims are reduced, in whole or in part, by the negligence of third-parties over whom SCF had no control. FOURTH NEW MATTER EXERCISE BICYCLE NOT USED FOR IN'l'ENDED PURPOSE 103. The Eisenhauers' claims are barred, in whole or in part, because the incident and damages, if any, were caused by the unintended, unauthorized and improper use of the exercise bicycle by minor plaintiff, Taylor Eisenhauer. The exercise bicycle was intended to be used by adults, not children and the bicycle's brochure contained warnings as to dangers to children. Plaintiffs George and Debra Eisenhauer, knew or had reason to know of the intended use and warnings with respect to it unauthorized use. Use of the product by Taylor Eisenhauer was the direct and proximate cause of Taylor Eisenhauer's injuries. FIFTH NEW MATTER ASSUMPTION OF RISK 104. The Eisenhauers' claims are barred, in whole or in part, by assumption of risk. 17 SIXTH NEW MATTER .' r ! I f- r 1" ABUSE. MISUSE AND ALTERATION OF PRODUCT 105. The Eisenhauers' claims are barred, in whole or in part, because the exercise bicycle was abused. altered, changed or tampered with subsequent to the manufacture, distribution and/or sale of the exercise bicycle. SEVENTH NEW MATTER FAILURE '1'0 FOLLOW INSTRUCTIONS 106. The exercise bicycle contained printed instructions concerning its care. Plaintiffs George and Debra Eisenhauer failed to follow the instructions for the care of the exercise bicycle. Taylor Eisenhauer's alleged injuries would not have occurred if the George, Debra, Edward and Grace Eisenhauer followed such instructions concerning the care of the product. EIGHTH NEW MATTER CLAIMS BARRED BY OWN ACTIONS 107. The Eisenhauers' claims are barred, in whole or in part. by virtue of their own actions. 108. No action by SCF proximately caused the alleged injuries. NINTH NEW MATTER NO WRONGFUL OR INTENTIONAL CONDUCT BY SCF 109. If the Eisenhauers suffered any damage or loss, such damage or loss was not caused by any wrongful or intentional conduct on the part of SCF. 18 TBH'l'H NEW MATTBR BARRED BY EOUITABLE DOCTRINES 110. The Eisenhauers' claims are barred. in whole or in part. by the doctrines of waiver, laches. estoppel, and unclean hands. ELEVEH'l'H NEW MATTER COLLATERAL SOURCE 111. The Eisenhauers' claims are limited with respect to collateral sources. 'l'WBLFTH NEW MATTER NO STRICT LIABI:LITY 112. SCF denies that it is strictly liable in tort. THI:RTEBH'l'H NEW MATTBR CLAI:MS CAUSED BY OTHBRS 113. Any injuries or damages suffered by plaintiff Taylor Eisenhauer were caused by third person over which SCF had no control. FOURTEBH'l'H NEW MATTBR STATUTB OF LIMITATI:ONS 114. The Eisenhauers' action is barred by the applicable statute of limitations. WHEREFORE, Schwinn cycling & Fitness Inc. demands that the court dismiss the complaint and enter judgment in its favor 19 and against the Eisenhauers. together with an award of costs and such other and further relief that the court deems just. NEW MATTBR IN '1'HB NA'J.'tJlU!: 01' A CROSS CLAIM AGAINST NAO'1'I -LIS, INC. '1' ID/DI A Dt7SHBY' S CYCLING AND I'I'l.'NESS HEADQt7AR'1'ERS AND '1'/D/D/A Bt7SHBY'S SCHWINN CYCLERY, INC. ("NAt7'1'I-LIS') Pt7RSt7AN'l.' '1'0 PI... R. CIV. P. 22521dl 115. SCF incorporates herein its allegations in paragraphs 1 through 113 as if set forth in full. 116. The Eisenhauers have sued defendant Nauti-Lis, Inc. t/d/b/a Bushey's Cycling and Fitness Headquarters and t/d/b/a Bushey's Schwinn Cyclery (collectively "Nauti-Lis') alleging liability to the Eisenhauers. 117. Defendant Nauti-Lis is solely liable to the Eisenhauers. 118. Defendant Nauti-Lis is liable over to the Eisenhauers for contribution and/or indemnity if SCF is found liable to the Eisenhauers. 119. Defendant Nauti-Lis is jointly and severally liable with SCF to the Eisenhauers. WHEREFORE, Defendant Schwinn Cycling & Fitness Inc. demands jUdgment in its favor and against Nauti-Lis. Inc. t/d/b/a Bushey's Cycling and Fitness Headquarters and t/d/b/a Bushey's Schwinn Cyclery for all sums for which SCF might be found liable to the Eisenhauers. together with an award of costs and such other and further relief that the court deems just. 20 COONTERCLAIM AGAINST GEORGE AND DEBRA EISENHAUER 120. SCF incorporates herein its allegations in paragraphs 1 through 118 as if set forth in full. 121. Plaintiffs George and Debra Eisenhauer knew or should have known that on or about December 27, 1995, Taylor Eisenhauer was playing in his grandparents' home where they kept an exercise bicycle. 122. Plaintiffs George and Debra Eisenhauer knew or should have known that the exercise bicycle was located in Taylor Eisenhauer's grandparents' home. 123. Plaintiffs George and Debra Eisenhauer knew or should have known that the exercise bicycle was intended to be used for riding by adults and that children should not be permitted to ride, or play near, at or with the exercise biCYCle without adult supervision. 124. Upon information and belief, neither plaintiffs George nor Debra Eisenhauer was present when Taylor Eisenhauer was allegedly injured. 125. Plaintiffs George and Debra Eisenhauer's conduct, described above, constitutes negligence. 126. Plaintiffs George and Debra Eisenhauer's conduct is the proximate cause of Taylor Eisenhauer's alleged injuries. 21 VERIFICATION I, JAMES p, GOLDEN, attorney for defendant Schwinn cycling & Fitness Inc., verify that I am authorized to make this verification on behalf of Schwinn Cycling & Fitness Inc. I am making this verification pursuant to Pa. R. Civ. P. l024(c) because Kevin Lamar, Senior Vice-President, Fitness Group, Schwinn Cycling & Fitness Inc., and any other employee of Schwinn Cycling & Fitness Inc. who has knowledge or information, are outside the court's jurisdiction and a verification cannot be obtained in time f.or the filing of the answer, new matter, new matter in the nature of a crossclaim and counterclaim. I verify that the facts set forth in the foregoing answer, new matter, new matter in the nature of a crossclaim and counterclaim are true and correct to the best of my knowledge or information and belief. The sources of my knowledge or information are discussions I have had with Mr. Lamar and my review of various documents maintained by Schwinn Cycling & Fitness Inc. This verification is made subject to the penalties of 18 Pa. C. S. ~ 4904. \ cD- . '\P11.1Na.\1A1tt..1'iJ01rrfL(lO(\IU,ANlI a..I O4IJ"""U UA" ..... OW,......,,, AN !OW... TAYLOR EISENHAUER, a Minor, by GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians, Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW NO. 99-1930 SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LIS, INC. TfDlBlA BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and TfDlBlA BUSHEY'S SCHWINN CYCLERY, INC., : Defendants JURY TRIAL DEMANDED DEFENDANT N AUTM .IS, INC.'S ANSWRR WITH NEW MA TIER AND CROSS CI .AIM TO PI.AINTIFFS' COMPI,AINT TO: TAYLOR EISENHAUER, a Minor, by GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, Plaintiffs, by their allomey, DAVID S. WISNESKI, ESQUIRE YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER AND CROSS CLAIM WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU. TO: SCHWINN CYCLING & FITNESS, INC., Defendant, and its allomey, ALP A PATEL, ESQ, YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED CROSS CLAIM WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU. AND NOW, comes Defendant Nauti-Lis, Inc. by and through its attorneys, MARTSON DEARDORFF WILLIAMS & OTTO, and avers as follows in Answer to Plaintiffs' Complaint: 1. Denied. After reasonable investigation, answering Defendant is without knowledge ~ or information sufficient to form a belief as to Plaintiffs residence or date of birth. ~ 2. Denied. After reasonable investigation, answering Defendant is without knowledge ~ or information sufficient to form a belief as to the state of incorporation or license of Defendant g Schwinn Cycling & Fitness, Inc. ~ 3. Admitted. 4-5. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the relationship of Defendant Schwinn Cycling & Fitness, Inc. with Schwinn Bicycle Company. It is further denied as a legal conclusion that requires no answer. 6-7. Denied. Defendant.Nauti-Lis, Inc. does not do busitiess as Bushey's Schwinn Cyclery. 8-9. Denied as a legal conclusion. It is further denied that Defendant Nauti-Lis, Inc. is a legal successor to Bushey's Schwinn Cyclery, Inc. 10-13. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to when or where any events took place. 14-15. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the manufacturer of the exercise bicycle referred to in Plaintiffs' Complaint. 16. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the condition or changes of the exercise bicycle referred to in Plaintiffs' Complaint. 17. Denied as a conclusion oflaw. It is further denied that answering Defendant sold any product that was defective or unreasonably dangerous. COUNT I - NEGLIGENCE T'lY1or Hi.enhauer, a Minol:, by George W Hi.enhaner and Dehra A Hi.enhaner, hi. Parent. and Natural Guardian. v Schwinn Cycling and Fit"".._ Tnc. 18-39. These allegations are not directed to the answering Defendant. COUNT II- NEGLIGENCE Taylor Hi.cohane!:, a Minor, hy Georgc W F.i.enhauer and Debra A Ri.enhauer:, hi. Parent. and Natural Gnardian. v Nauti-I.is.lnc. tldlb/a Bu.ht:Y's Cycling and Fitnc.. HeadquartcrR and tldlh/a Bu.ht:Y'. Schwinn C:yclery 40. Paragraphs 1-1'/ hereof are incorporated herein by reference thereto. 41. Denied as a conclusion oflaw. It is further denied that after reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to whether the exercise bicyclc referred to in the Plaintiffs' Complaint was sold and/or distributed by Bushey's Schwinn Cyclery, Inc. 42. Denied as a conclusion oflaw. 43. Denied as a conclusion oflaw. It is further denied that after reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to whether the exercise bicycle referred to in the Plaintiffs' Complaint was sold and/or distributed by Bushey's Schwinn Cyclery, Inc. It is further denied that any exercise bicycle was sold by Bushey's Schwinn Cyclery, Inc. that was defective or unreasonably dangerous. 44-46. Denied that any bicycle sold by Bushey's Schwinn Cyclery, Inc. did not contain a chain guard on the appropriate side of the bicycle. 47. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the type of pedal and chain mechanism on the exercise bicycle referred to in Plaintiffs' Complaint. 48. Denied. On information received, Bushey's Schwinn Cyclery, Inc. did not sell any bicycle that was not safe for its intended purpose. 49. Denied. On information received, Bushey's Schwinn Cyclery, Inc. sold only safe bicycles. SO. Denied. On information received, Bushey's Schwinn Cyclery, Inc. did not sell any bicycle with a dangerous condition, inadequate warnings or anyone of the allegations described in Paragraphs 42 through 47 of Plaintiffs' Complaint. 3 51. Denied. On information received, there WM no reMon to recall any bicycle sold by Bushey's Schwinn Cyclery, Inc. 52. Denied. On information received, Bushey's Schwinn Cyclery, Inc. provided adequate warnings and instructions for all bicycles sold. 53. Denied. After reasonablc investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the injuries, ifany, suffered by the Plaintiff. 54. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to warnings or limitations involved with the exereise bicycle referred to in Plaintiffs' Complaint. 55. Denied. If Plaintiff was a four year old boy, it is doubtful he would need to use an exercise bicycle. 56. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the age of Plaintiff. 57. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the medical expenses, if any, incurred by Plaintiff. 58. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the pain and suffering, or the like, if any, suffered by Plaintiff. 59. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form abelief as to the humiliation or ridicule, or the like, if any. suffered by the Plaintiff. 60. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the loss of earning capacity or power, if any, suffered by Plaintiff. WHEREFORE, Defendant Nauti-Lis, Inc. demands judgment against Plaintiff, plus costs. 4 COUNT III- STRICT LIABILITY Taylor Ri.enhauer, a Minor, hy George W Ri.enhaller and DebraA. Ri.enhanel:, hi. Parent. and Natural Guardians v Schwinn Cycling and Filnc.. Inc. 61-70. Thesc allegations arc not directed to thc answering Defendant. COUNT IV - STRICT LIABILITY Taylor Eisenhauer:, a Minor< hy George W Ri.enhaller and Dehra A Ei.enhauer:, hi. Parent. and Natural Gllardian. v Nanti.I.i., Inc t/rllh/a Bushey'. C'.,ycling and Fitne.. HeadquarterR and tldlh/a BII.hcy"s Schwinn C:ycletY 71. Paragraphs I through 17 and Counts I and II of this Answer are incorporated herein by reference thereto. 72. Denied as a conclusion of law. On information received, it is further specifically denied that any exercise bicycle for which answering Defendant is responsible was defective or unreasonably dangerous. 73. Denied. On information received, it is denied that any bicycle sold or distributed by answering Defendant was defective in its design or manufacture. 74. Denied. On information received, it is denied that any bicycle sold or distributed by answering Defendant was defective as to its warnings. 75. Denied. All bicycles sold by answering Defendant contained appropriate warnings. 76, Denied. . After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the injury, if any, suffered by Plaintiff. 77. Denied. After reasonable investigation, answering Defendant is without knowledge or information suflicientto form a belief as to medical and rehabilitative expenses, if any, incurred by Plaintiff. 78. Denied. After reasonable i!lvestigation, answering Defendant is without knowledge or information sufficient to form a belief as to pain and suffering, and the like, if any, suffered by Plaintiff. 5 79. Denied. After reasonable investigation, answering Defendant is without knowledge or information lufficicnt to form a bclief as to thc humiliation and ridicule, if any, suffered by Plaintiff. 80. Denied. After reasonable investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the loss of earnings or earning capacity, if any, suffered by Plaintiff. WHEREFORE, Defendant Nauti-Lis, Inc. demands judgement against Plaintiffs. COUNT V - BREACH OF WARRANTY T'lY1or Ri.enhaller, a Minor, hy George W Hi.enhaller and Debra A Ri.enhallel:, hi. Parent. and Nalllral Gllardia"" V Schwinn Cycling and Pitne.., Tnc 81-84. These allegations are not directed to the answering Defendant. COUNT V (SIC) BREACH OF WARRANTY T~lnr Ri';P.nh~ueJ:, a Minor by GeOl:ge W Risenhaller and neh", A Ri~p.nhal1err hi. Parent. and Natural Gllardian. v Nauti-J.i., Jnc tldlb/a RII.ht:Y'. C'.yc1ing and Fitne.. HeadqllarterR and tldlh/a BII.hey's Schwinn C:yclery 85. Paragraphs 1 through 17 and Count II hereof are incorporated herein by reference thereto. 86. Denied as a conclusion of law. It is further denied that any exercise bicycle sold by answering Defendant, or for which answering Defendant is responsible, was not fit and safe for its ordinary purposes. 87. Denied as a conclusion oflaw. It is further denied that answering Defendant sold or distributed any bicycle that was not merchantable or fit for the purpose intended. 88. Denied as a conclusion of law. WHEREFORE, Defendant Nauti-Lis, Inc. demands judgment against Plaintiffs. 6 NEW MATTER 89. Plaintiffs' action is barred by tho applicable statutes oflimitations. 90. To the extent the Plaintiffs claim sound in warranty, they are barred for failure to give prompt and timely notice. 91. The product in question may have been misused, abused, mishandled, inadequately maintained and/or substantially modified. 92. If the Plaintiff suffered the injuries alleged herein, which is denied, then recovery herein is barred by his assumption of the risk of such injuries. 93. If the Plaintiff suffered the injuries allegedly herein, which is denied, those injuries were the result of actions or inacliom by other parties who answering Defendant has no control and whose conduct it is not responsible. 94. Answering Defendant was not in existence when the product in question was sold. 95. Answering Defendants gave no warranties, either expressed or implied to Plaintiffs. 96. The exercise bicycle referred to in Plaintiffs' Complaint was being put through unreasonable use at the time of the alleged injury that is the subject of this suit. 97. At the time ofthe injuries referred to in Plaintiffs' Complaint, the exercise bicycle in question was not in the same or a substantially similar condition as it was when it left the possession or control ofthe vendor, whoever that was. WHEREFORE, answering Defendant demands judgment against Plaintiffs. CROSS CLAIM PURSUANT TO PA. R.C.P. 2252(d) Nauti-Li., Ync Defendant v Schwinn Cycling & Fitne.s, Ync , Defendant 98. Plaintiffs'. Complaint is incorporated herein by reference thereto solely for the purposes ofthis cross claim without admitting any of the allegations contained therein, except to the extent set forth in the answer herein being filed by Defendant Nauti-Lis, Inc. 99. Ifit is judicially determined that Plaintiffs' averments in their Complaint are true and correct and Plaintiffs are entitled to recover damages, then it is averred by Defendant Nauti-Lis, Inc. that Defendant Schwinn Cycling & Fitness, Inc. is solely responsible jo Plaintiff, and, therefore, is 7 alone liable or liable over to Defendant Nauti-Lis, Inc. for the cause of action and any damages that Plaintiffs declared in this suit on the basis of averments found in Plaintiffs' Complainl and incorporated herein by reference thereto. 100. Defendant Nauti-Lis, Inc.joins Defendant Sehwinn Cycling & Fitness,lnc. to protect its right of contribution and indemnification (including their right to costs, expenses, fees and attorney's fees) in the event it is judicially determined that said Defendant Schwinn Cycling & Fitness, Inc. is jointly or severally liable to the Plaintiffs, ihe existence of any liability on the part of Defendant Nauti-Lis, Inc. being expressly denied. WHEREFORE, Defendant Nauti-Lis, Inc. demands judgment against Defendant Schwinn Cycling & Fitness, Inc. for indemnification of all sums that may be adjudged against Defendant Nauti-Lis, Inc. in favor of Plaintiffs, as well as all costs, fees, expenses, and attorney's fees resulting from said action, or, in the alternative, Defendant Nauti-Lis, Inc. demands judgment against Defendant Schwinn Cycling & Fitness, Inc. for the appropriate part of the arnoant of damages and costs awarded to said Plaintiffs. CROSS CLAIM PURSUANT TO PA. R.C,P. 2252(d) Nallti..T .W!;! Tnc r nefenrlant v George W Risenh~lIer ann nehra A Risenhauerr Additional Defendant. 101. In the event it is judicially determined that the exercise bicycle referred to in Plaintiffs' Complaint was defective and/or unreasonably dangerous, then Plaintiffs George W. Eisenhauer and Debra A. Eisenhauer, were negligent in their supervision of Plaintiff, Taylor Eisenhauer, were solely and are jointly responsible for any injuries suffered. 102. If it is judicially determined that Plaintiffs' averments that the exercise bicycle was defective and/or unreasonably dangerous as true and correct, and Plaintiff is entitled to recover damages, then it is averred by Defendant Nauti-Lis, Inc. that Additional Defendants are solely responsible to Plaintiff, and, therefore, are alone liable or liable over to Defendant Nauti-Lis, Inc. for the cause of action and any damages that Plaintiff declared in this suit on the basis of averments found in Plaintiffs' Complaint and incorporated herein by reference thereto. 8 VERII"Ir.ATION Robcrt J. Lis, who is President ofNauti-Lis, Inc. and acknowledgco that he hao the authority to execute this Verification in behalf ofNauti-Lis, Inc. certifies that the foregoing Answer With New Maller and Cross Claim is based upon information which has been gathered by my counsel in the preparation of the lawsuit. The language of this Answer With New Maller and Crou Claim is that of counsel and not my own. I have read the document and to the extent that the Answer With New Maller and Cross Claim is based upon information which I havc given to my counsel, it is true and correct to the best of my knowledge, information and belief. To the extent that the content of the Answer With New Maller and Cross Claim is that of counsel, I have relied upon counsel in making this Verification. This statement and Verification are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities, which provides that if I make knowingly false averments, I may be subject to criminal penalties. Nauti-Lis,lnc. ROb~ 11 CERTIFICATF. OF SERVICE I, Tricia D. Eckenroad, an authorized agent for Martson, Deardorff, Williams & Olio, hereby certify that a copy of the foregoing Answer with New MaUer and Cross Claim was served this date by depositing same in the Post Office at Carlisle, P A, first class mail, postage prepaid, addressed as follows: David S. Wisneski, Esquire ANGINO & ROVNER, P,C. 4503 North Front Street Harrisburg, P A 1711 0-1708 Alpa Patel, Esquire HAMBURG & GOLDEN, P.C. 1601 Market Street, Suite 565 Philadelphia, PA 19103 MARTSON, DEARDORFF, WILLIAMS & OTTO ~. Q~ . By UVJ ncia D. Ecke oad . Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: May 7,1999 10 .'\ WHEREFORE, Defendant Schwinn Cycling & Fitness Inc. demands jUdgment in its favor and against Nauti-Lis, Inc. for all sums for which SCF might be found liable to plaintiffs George. Debra and Taylor Eisenhauer, together with an award of costs and such other and further relief that the court deems just. f I ..,. Date: 11<1Uf ,. ~ , tlle,,'7 J~ MICH M. ROVINSKY ALPA PATEL HAMBURG & GOLDEN. P. C . Attorneys for Defendant Schwinn Cycling & Fitness Inc. 2 . . ~ ~ '" ;:; . f i ~ ~ 92. Paragraph 92 of Defendant's New Matter states of conclusion of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in paragraph 92 of Defendant's New Matter are denied in accordance with Pa.R.C.P 1029(e). 93. Denied as stated. Plaintiff's injuries were solely a direct and proximate result of the negligence of the Defendants named in Plaintiff's complaint, all of whom are jointly and severally liable to Plaintiff for such injuries, The remaining averments in paragraph 93 of Defendant's New Matter are denied in accordance with Pa.R.C,p. 1029(e), 94. Denied. After reasonable investigation, Plaintiff is without knowledge or information sufficient to form a belief as to the date on which the answering Defendant came into existence. Regardless of whether answering Defendant was in existence when the property in question was sold, it is nonetheless legally liable as the successor corporation to the company that sold the exercise bicycle. 95. Denied in accordance with Pa,R,C,P. 1029(e), 96. Paragraph 96 of Defendant's New Matter states of conclusion of law to which no responsive pleading is required, To the extent that a response is deemed necessary, the averments contained in paragraph 96 of Defendant's New Matter are denied in accordance with Pa,R,C.P 1029(e). 2 CERTIFICATE OF SERVICE I certify that on June 10, 1999, I served the foregoing praecipe by regular mail to the following: David S. Wisneski Angino & Rovner, P.C. 4503 North Front Street Harrisburg, PA 17110 Attorney for Plaintiff Taylor Eisenhauer, by George W. Eisenhauer and Debra A. Eisenhauer, his parents Thomas J. Williams, Esquire Martson, Deardorff, Williams, & Otto 10 East High Street Carlisle, PA 17013 Attorney for Defendant Nauti-Lis, Inc. AL~ ,.,; i I . - .~--~ ~~ '" '. " :' , ' ',' .... . TAYLOR EISENHAUER, A Minor, By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardian., IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintift NO. 99 136 Civil '/'i 1'730 CIVIL ACTION - LAW v. SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LIS, INC. T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY, INC. Defendants JURY TRIAL DEMANDED PLAINTIPP'S REPLY TO NEW HATTER OF DEFENDANT SCHWINN CYCLING AND PITNESS. INC. AND NOW, comes the Plaintiff, Taylor Eisenhauer, a Minor, by George W. Eisenhauer and Debra A. Eisenhauer, his Parents and Natural Guardians, by and through his attorneys, Angino & Rovner, .,.. P.C., and hereby enters the following reply to the New Matters of Defendant Schwinn Cycling and Fitness, Inc.: FIRST NEW HATTER NO SUCCESSOR LIABILITY 89. No responsive pleading is required. To the extent that a response is deemed necessary, the allegations contained in Paragraphs 1-88 of Defendant's Answer, to the extent that they do not admit the corresponding allegations contained in Plaintiff's Complaint, are denied pursuant to Pa.R.C.p, 1029(e), 90. It is admitted that seF is engaged in the business of selling bicycles, fitness equipment, and related products and that the model XR-6 exercise bicycle involved in the incident was 1 produced by Schwinn Bicycle Company. The remaining averments and allegations contained in Paragraph 90 of Defendant's New Hatter are conclusions of law to which no responsive pleading is required. To the extent that a response is doomed necessary, all such allegations and averments are denied pursuant to Pa.R.c.p. 1029(e). By way of further response, SCF is the legal successor to Schwinn Bicycle Company for the reasons set forth in Plaintiff's Complaint, and it bears successor liability under Pennsylvania law for the incident that is the SUbject of this litigation. 91. Denied as stated. It is admitted only that the Assumption Agreement speaks for itself. Any inference or suggestion that the Assumption Agreement serves to shield Schwinn Cycling and Fitness, Inc,. from liability as a successor corporation in the instant action is specifically denied. The Bankruptcy Court and Appellate Court specifically held in the case of Benonis vs. Schwinn that, in a case such as this one, the Assumption Agreement does not serve to shield Schwinn Cycling and Fitness, Inc., from successor liability under Pennsylvania law. All remaining averments contained in Paragraph 91 of Defendant's New Matter are denied pursuant to Pa.R.C,P. 1029(e). 92. Denied as stated. It is admitted only that the Order Approving the Purchase speaks for itself, Any inference or suggestion that the Order Approving the Purchase serves to shield Schwinn Cycling and Fitness, Inc" from liability as a successor corporation in the instant action is specifically denied, The Bankruptcy Court and Appellate Court specifically held in the case 2 ot Benonis vs. Schwinn that, in a case such as this one, the Order Approving the Purchase does not serve to shield schwinn cycling and Fitness, Inc., trom successor liability under Pennsylvania law. All remaining averments contained in Paragraph 92 of Defendant's New Matter are denied pursuant to Pa.R.C.P. 1029(e). 93. Paragraph 93 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 93 of Defendant's New Matter are denied pursuant to Pa.R.C.P. 1029(e), By way of further response, the Bankruptcy Court and Appellate Court have specifically held in the case of Benonis vs. Schwinn, that claims such as the Eisenhauer's against SCF under the theory of successor liability are not barred, in whole or in part, under pennsylvania law. 94. paragraph 94 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in paragraph 94 of Defendant's New Matter are denied pursuant to Pa.R,C,P. 1029(e), SECOND NEW MATTER CONTRIBUTORY NEGLIGENCE 95. Paragraph 95 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 95 of Defendant's New Matter are denied pursuant to Pa,R.C,P. 1029(e). 3 96. Paragraph 96 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 96 of Defendant's New Matter are denied pursuant to Pa.R.C.p. 1029(e). By way of further response, the minor Plaintiff, Taylor Eisenhauer, was 4 years old at the time of the incident that is subject to this litigation, and therefore was incapable of contributory negligence under Pennsylvania law. 97. Paragraph 97 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 97 of Defendant's New Matter are denied pursuant to Pa.R.C.p. 1029(e), 98. Paragraph 98 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 98 of Defendant's New Matter are denied pursuant to Pa,R.C,p. 1029(e). THIRD NEW MATTER COMPARATIVE NEGLIGENCE 99. Paragraph 99 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 99 of Defendant's New Matter are denied. pursuant to Pa.R.C.p. 1029(e). 4 100. Paragraph 100 of Defendant's New Matter set. forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 100 of Defendant's New Matter are denied pursuant to Pa.R.C.p. 1029(e). By way of further response, the minor Plaintiff, Taylor Eisenhauer, was 4 years old at the time Of the incident that is subject to this litigation, and therefore was incapable of negligence, contributory negligence, or comparative negligence under Pennsylvania law. 101. Paragraph 101 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 101 of Defendant's New Matter are denied pursuant to Pa.R.C.p. 1029(e), 102. Paragraph 102 of Defendant's New ~Iatter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 102 of Defendant's New Matter are denied pursuant to Pa,R.C.p. 1029(e). FOURTH NEW MATTER EXERCISE BICYCLE NOT USED FOR INTENDED PURPOSE 103. Paragraph 103 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 103 of Defendant's New Matter are denied pursuant to Pa.R.C.P. 1029(e), 5 FIFTH NEW MATTER ASSUMPTION OF RISK 104. Paragraph 104 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 104 of Defendant's New Matter are denied pursuant to Pa.R.C.p. 1029(e). SIXTH NEW MATTER ABUSE. MISUSE AND ALTERATION OF PRODUCT 105. Denied pursuant to Pa.R.C.p. 1029(e). SEVENTH NEW MATTER FAILURE TO FOLLOW INSTRUCTIONS 106. Paragraph 106 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 106 of Defendant's New Matter are denied pursuant to Pa.R,C.p. 1029(e)_ EIGHTH NEW MATTER CLAIMS BARRED BY OWN ACTIONS 107. Paragraph 107 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 107 of Defendant's New Matter are denied pursuant to Pa,R.C.P. 1029(e). 108. Paragraph 108 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To 6 the extent that a response is deemed nec.esary, the averments contained in Paragraph 108 of Defendant's New Matter are denied pursuant to Pa.R.C.P. 1029(e). NINTH NEW MATTER NO WRONGFUL OR INTENTIONAL CONDUCT BY SCP 109. Paragraph 109 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 109 of Defendant's New Matter are denied pursuant to Pa.R.C.p. 1029(e). TENTH NEW MATTER BARRED BY EOUITABLE DOCTRINES 110. Paragraph 110 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 110 of Defendant's New Matter are denied pursuant to Pa.R.c.p. 1029(e), ELEVENTH NEW MATTER COLLATERAL SOURCE 111. Paragraph 111 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 111 of Defendant's New Matter are denied pursuant to Pa.R,C.P. 1029(e). 7 TWELFTH Nn HATTER NO STRICT LIABILITY 112. Paragraph 112 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required, To the extent that a response is deemed necessary, the avernents contained in Paragraph 112 of Defendant's New Matter are denied pursuant to Pa,R.C.p, 1029(e), THIRTEENTH NEW HATTER CLAIMS CAUSED BY OTHERS 113. Denied as stated. Plaintiff's injuries and damages were solely a direct and proximate result of the negligence of the Defendants named in Plaintiff's Complaint, all of whom are jointly and severally liable to Plaintiff for such injuries. It is denied that any party other than named Defendants caused Plaintiff's injuries and damages, FOURTEENTH NEW HATTER STATUTE OF LIMITATIONS 114. Paragraph 114 of Defendant's New Matter sets forth conclusions of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in Paragraph 114 of Defendant's New Matter are denied pursuant to Pa,R,C,p. 1029(e), 8 " .1 " CERTIrICATE or BERVICE I, Lois E. stauffer, an employee of the law firm of Angina' Rovner, P.C., hereby certify that a true and correct copy of the foregoing PLAINTIrr'B REPLY TO NEW KATTER or DUENDAMT BCRWIn CYCLING AHD rITNEBB, INC. was served upon the following persons by first-class United states mail, postage prepaid on June 15, 1999, as follows: f I l. ,- James P. Golden, Esquire Michele H. Rovinsky, Esquire Alpa Patel, Esquire HAMBURG & GOLDEN, P,C. 1601 Market street Philadelphia, PA 19103-1443 Counsel for Defendant Schwinn cycling & Fitness, Inc. Thomas J. Williams, Esquire HARTSON DEARDORFF WILLIAMS & OTTO Ten East High street carlisle, PA 17013 Counsel for Defendant Nauti-Lis, Inc., T/D/B/A Bushey's Cycling and Fitness Headquarters and T/D/B/A Bushey's Schwinn Cyclery, Inc. Charles B. Calkins, Esquire GRIFFITH STRICKLER LERMAN SOLYMOS & CALKINS 110 South Northern Way York, PA 17402 Counsel for Plaintiffs as to Cross Claims ~~ f. .~J~ Lois E. Stauffer v ~ ell ,. ". C': f ;<. III ~-} ,'..: (). r ' . '.. " (i j ~ - CI" ',', 1,1', lJ.,I;,/: ,- - ,'- 11.. t.:" ~. .j Co C"l C, III ~ a: ~ 0 2 0 ~ II: 0 0 oJ 0 W ;: ~ ... E ( > . :r 0 0 ...J >- ( . ~ 0\ III Z (!) . ~ 0 ~ ~ u >- Kl III '" oJ " >- '" X ~ ( W a: 0 III Z 2 >- m z 0 Z III Z 0 OJ 0:: >- d '" .J . 0 ~ . " '" ~ ... ~ '" ci 0 a: a: . < Z . ~ " m ( 0 III l'l ~ 0: ( :r :n : .- (.... , - .. c C.~) , , ,. -, , C.: - ., ;"d c ,~ ) , 0.' .1 ..' <.' , U HMfilLO' Al)lI!1lL(!. 19"nUG' JB'~!fltO 'ON ~~Oj ':lNl""'NOU'fNYl1NI.ll'l'!S:'11"'~ONOlSI^,OY""0]1~!nS""" IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA TAYLOR EISENHAUER, a Minor, by GEORGE W. EISENHAUER and DEBRA A. EISENHAUER. his Parents and Natural Guardians , 1.-:'. ! [, Plaintiff Civil Action-Law v. No. 99-1930 SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LlS, INC., tld/b/a BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and tldlb/a BUSHEY'S SCHWINN CYCLERY, INC. Defendants CERTIFICATE OF SERVICE AND NOW, this _ day of July, 1999, I, Charles B, Calkins, Esquire, a member of the firm of GRIFFITH, STRICKLER, LERMAN, SOL YMOS & CALKINS, Esquires, hereby certify that I have, this date, served a copy Plaintiffs' Reply to the Crossclaim ofNauti-lis, Inc, by United Slates Mail, addressed to the party or attorney of record as follows: Thomas J, Williams, Esquire Ten East High Street Carlisle, PA 17013 (Attorney for NAUTI-LIS, INC.) David S, Wisneski, Esquire ANGINO & ROVNER, P.C. 4503 N, Front Street Harrisburg, PA 17110-1708 James P. Golden, Esquire HAMBURG & GOLDEN, P.C, 1601 Market Street, Ste, 565 Philadelphia, PA 19103 (Attorneys for Schwinn Cycling and Fitness, Inc.) 3 .' and Debra A. Eisenhaueracted carefully, cautiously ,lawfully, prudently, and with due care under the circumstances, 123. Denied. It is specifically denied that Plaintiffs, George W. and Debra A. Eisenhauer knew or should have known that the exercise bicycle was intended to be used for riding by adults and that children should not be permitted to ride, or play near, at or with the exercise bicycle without adult supervision. On the contrary, it is averred that at all times relevant hereto Answering Plaintiffs, George W. and Debra A. Eisenhauer acted carefully, cautiously,lawfully, prudently, and with due care under the circumstances. 124. Denied. To the contrary, it is averred that both George W. and Debra A. Eisenhauer were present when Tyler was injured. 125. Denied. Itis specifically denied that Plaintiffs, George W. and Debra A. Eisenhauer's conduct, described above, constitutes negligence. On the contrary, it is averred that at all times relevant hereto Answering Plaintiffs, George W. and Debra A. Eisenhauer acted carefully, cautiously, lawfully, prudently, and with due care under the circumstances. 126. Denied. It is specifically denied that Plaintiffs, George W. and Debra A. Eisenhauer's conduct is the proximate cause of Taylor Eisenhauer's alleged injuries. On the contrary, it is averred that at aU times relevant hereto Answering Plaintiffs, George W. and Debra A. Eisenhauer acted carefully, cautiously, lawfuUy, prudently, and with due care under the circumstances. WHEREFORE, Answering Plaintiffs, George W. and Debra A. Eisenhauerdemandjudgment in their favor and against Schwinn Cycling and Fitness, Inc. with respect to their Counterclaim together with interest and cost of suit. 2 '.. ,-, I I'. I' ('.: , '. , . " f '.'- I CI> Li I l.' l) " <D a: '" 0 z 0 .. a: 0 0 , 0 W ;: ~ 6 ( > . x 0 .J l- e 0 . ~ C!I " Z C) . <D 0 '" ~ U I- Kl en ~ -' " >- ~ x >- ( w " 0 III Z Z '" Z 0 Z III Z 0 ijj a: I- ~ ~ .J . 0 .. w ~ ~ . ~ x .; 0 a: a: . e Z . ~ " ( al 5 III M ii: a: e x HM'tIlLO ',U"ftILO. '8-nlLO' ~1t!lItO :'ON WIIOJ '~"'I ''f'MlU'f'MtUNleU'tlS"1,W:lO NOlSwa It '''''l)Jlll'''l~ 11... TAYLOR EISENHAUER, A MInor By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, hIs Parents and Natural Guardians, PLAINTIFFS : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA , . : NO. 99-1930 Civil v, SCHWINN CYCLING & FITNESS, INC. : JURY TRIAL DEMANDED And NAUTI.L1S, Inc., T/D/B/A BUSHEY'S CYLCING AND FITNESS HEADQUARTERS and TIDIBIA BUSHEY'S SCHWINN CYCLERY, INC., DEFENDANTS v. EDWARD EISENHAUER and FRANCIS EISENHAUER, ADDITIONAL DEFENDANTS: ANSWER WITH NEW MATTER TO ADDITIONAL DEFENDANT COMPLAINT OF SCHWINN CYCLING & FITNESS. INC. AND NOW, comes the Additional Defendants, Edward Eisenhauer and Francis Eisenhauer, by and through their attorneys, NEALON & GOVER, P.C., and files the following Answer to Additional Party Complaint of Defendant Schwinn Cycling & Fitness, Inc.: 1. - 4. Admitted. 5. Denied pursuant to Pa.R.Civ.P. 1029(e). 6. -10. These paragraphs address pleadings that are set forth as part of the Additional Defendant Complaint filed by Schwinn and those pleadings speak for themselves. COUNT I 11. Paragraph 1 through 8 of Defendant's Answer to the Additional Defendant Complaint are incorporated herein by reference thereto. 12. It Is admitted that the exercise bicycle was in the home of Additional Party Defendants. Edward and Francis Eisenhauer. To the extent any additional response Is required, the remainder of the averment is denied pursuant to Pa.RClv,P. 1029(e). 13, - 22. Denied pursuant to Pa.RClv.P. 1029(e). WHEREFORE, Edward Eisenhauer and Francis Eisenhauer, respectfully request that the Complaint filed by Defendant, Schwinn Cycling & Fitness. Inc.. be dismissed with costs of this action. NEW MATTER AND CROSSCLAIM PURSUANT TO PA,R.CIV.P. 2252 23. Paragraph 1 through 22 of Defendant's Answer to the Additional Defendant Complaint are incorporated herein by reference thereto. 24. Additional Defendants Edward and Francis Eisenhauer incorporate herein by reference thereto the original Complaint of the Plaintiff in this action. 25. Additional Defendants deny their liability and assert that original Defendants are solely and exclusively liable for the cause of action as based in Plaintiffs' Complaint. 26. This action is brought solely to protect Additional Defendant's right for contribution and indemnity. RespectfUlly submitted, GOVER B~ '7Ai?/!A- Matthe R Gover, Esquire Attorney I.D. #47593 301 Market Street -- 9th Floor P,O. Box 865 Harrisburg, PA 171 08-0B65 (717) 232-9900 CERTIFICATE OF SERVICE I.... AND NOW, this I ','} day of July, 1999, I hereby certify that I have served the foregoing Answer with New Maller on the following by depositing a true and correct copy of same in the United States mails, postage prepaid, addressed to: James P. Golden, Esquire HAMBURG & GOLDEN, P.C. 1601 Market Street. Suite 565 Philadelphia, PA 19103-1443 Attorney for Defendant Schwinn Cycling & Fitness, Inc. David S. Wisneski, Esquire ANGINO & ROVNER, P.C. 4503 North Front Street Harrisburg, PA 17110 Attorney for Plaintiffs Thomas J. Williams, Esquire MARTSON, DEARDORFF, WILLIAMS & OTIO 10 East High Street Carlisle, PA 17013 Attorney for Defendant, Nauti-Lis, Inc. CERTIFICATE OF SERVICE I certify that on July 28, 1999, I served the foregoing I ! t t reply to new matter and crossclaim by regular mail to the following: David S. Wisneski Angino & Rovner, P.C. 4503 North Front Street Harrisburg, FA 17110 Charles B. Calkins Griffith, Strickler, Lerman, Solymos & Calkins 110 South Northern Way York, PA 17402 Attorneys for Plaintiff Taylor Eisenhauer, by George W. Eisenhauer and Debra A. Eisenhauer, his parents Thomas J. Williams, Esquire Martson, Deardorff, Williams, & Otto 10 East High Street Carlisle, PA 17013 Attorney for Defendant Nauti-Lis, Inc. Matthew R. Gover Nealon & Gover 301 Market Street, 9th Floor P.O. Box 865 Harrisburg, PA 17108 Attorney for Additional Defendants Edward and Francis Eisenhauer ~EL ,... CJ >- :r: ('v . .. , , .' .:-....: ". L ' . " . .; t' , C'> , C~~ : '" i. -, -J ;.:. li...-: I:~ ~:i J:..l... . 1.1_ 0-. ::j 0 u' U , HAMBURG & GOLDEN, P.C. By: JAMES P. GOLDEN MICHELE M. ROVINSKY ALPA PATEL I.D. Nos. 32169. 66587. 75651 1601 Market Street. Suite 565 Philadelphia. PA 19103-1443 215-255-8590 Attorneys for Defendant Schwinn Cycling & Fitness Inc. TAYLOR EISENHAUER, A Minor, By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians COURT OF COMMON PLEAS CUMBERLAND COUNTY No. 99-1930 Civil v. SCHWINN CYCLING & FITNESS, INC., and NAUTI-LIS, INC., T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY. INC. Defendants v. EDWARD EISENHAUER and FRANCIS EISENHAUER 2297 Fairfield Circle State College, PA 16801 Additional Party Defendants, PRAECIPE TO ATTACH VERIFICATION TO THE PROTHONOTARY: Kindly attach the attached verification of Kevin Lamar to the additional party complaint of defendant Schwinn cycling & Fitness Inc., which was filed on June 9, 1999. J~OLDEN MICHELE M. ROVINSKY ALPA PATEL Date: July 28, 1999 Attorneys for Defendant Schwinn Cycling & Fitness Inc. L i- , I f i" '; HAMBURG & GOLDEN, P.C. 2 ~~~ Cl .,... C~ t:-...: >-0 ~~ ~ ::") lL!'<': , , s-.: ;" .' -' .- l.:;' ..~~ ;~j (~.J ~- , 6.. C" r, L!_~ <" .-' , , -., >J 0: i ;::-, :' .- ;"- , u_ en :5 0 ".... 0 92. Paragraph 92 of Defendant's New Matter states of conclusion of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in paragraph 92 of Defendant's New Matter are denied in accordance with Pa,R.C.p 1029(e). 93. Denied as stated. Plaintiff's injuries were solely a direct and proximate result of the negligence of the Defendants named in Plaintiff's Complaint, all of whom are jointly and severally liable to Plaintiff for such injuries, The remaining averments in paragraph 93 of Defendant's New Matter are denied in accordance with Pa.R,C,p, 1029(e), 94. Denied, After reasonable investigation, Plaintiff is without knowledge or information sufficient to form a belief as to the date on which the answering Defend?ilt came into existence, Regardless of whether answering Defrmdant was in existence when the property in question was sold, it is nonetheless legally liable as the successor corporation to th'~ company that sold the exercise bicycle, 95. Denied in accordance w1th Pa,R.C.p. 1029(e), 96. Paragraph 96 of Defendant's New Matter states of conclusion of law to which no responsive pleading is required. To the extent that a response is deemed necessary, the averments contained in paragraph 96 of Defendant's New Matter are denied in accordance with Pa,R,C,p 1029(e), 2 .'. f.'- f'. }~ ;' //},' (:; , ,. ," " , l-; :~~. ., - , i. , " {".: c , I;' ... .... .> /. . . ( .' 0\ " .~ (': .> TA YLOR EISENIIAUER. A Minor. By GEORGE W. E1SENIIAUER and DEBRA A. EISENIIAUER, his Parents and Natural Guardians. IN TI IE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA PlainlifT ORIGINAL v, NO. 99-~ivil SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LIS, INC. T1D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY, INC.. Defendants CIVIL ACTION - LAW V. EDWARD EISENHAUER and FRANCIS EISENHAUER, Addilional Defendants JURYT~LDEMANDED CERTIFICATE OF SERVICE I, Lois E. Stauffer, an cmployee of the law firm of Angino & Rovner, P.c., hereby certify that a true and correct copy of the foregoing PLAINTIFFS' DEPOSITION NOTICE OF MR. ROBERT LIS was served upon the following persons by first-class United States mail, poslage prepaid on May 10, 2000, as follows: Michael E. Sacks, Esquire Michele Rovinsky. Esquire HAMBURG & GOLDEN, P.C. 160 I Market Street Philadelphia, PA 19103-1443 Counsel for Defendant Schwinn Cycling & Fitness, Inc. Thomas J. Williams, Esquire MARTSON DEARDORFF WILLIAMS & OTTO Ten East High Street Carlisle, P A 17013 Counsel for Defendant Nauti-Lis. Inc., TID/B/A Bushey's Cycling and Fitness Headquarters and TIDIB/A Bushey's Schwinn Cyclery, Inc. ~ ~~.-; )-. ( '. '" ~ : j ( 't. 2;,. ::1" w.. p lo. e> c.~ N C:L: :0.. r.d ,,- <::) '-., ) (.J r:: ;< !.- ~. ~ )-_i _' !~'.l ~ . " ::t!-:; .' I ,~_ . . '. . ----~"...- . ' ~ . . --. ... ,''''.' :~tt' . . . -,- r.~ ANGINO& ROVNER,P,C. 4503 NORTH FRONT STREET HARRISBURG. PA 17110 (717) 238-8791 JANZ ~.20'Oi/{ \ . . ' , .' " . " , , . . ': . .:~ . . , ,. , .' . TAYLOR EISENHAUER, A Minor. By GEORGE W. EISENHAUER ami DEBRA A. EISENHAUER, his Parcnts and Natural Guardians, IN TilE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA Plaintiff v. 111'30 NO. 99-H&Civil SCHWINN CYCLING AND FITNESS, INC., and NAUTI-LIS, INC. TIDIBIA BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and TlDIBIA BUSHEY'S SCHWINN CYCLERY.INC., Defcndants CIVIL ACTION - LAW v. EDWARD EISENHAUER and FRANCIS EISENHAUER, Additional Defcndants JURY TRIAL DEMANDED ORDER ANDNOW,lhis.;l't*'dayof 9'/JUA d/l'l' ,2001, a Pretrial Case Management Conference is scheduled for .J:{lddY, ,1';h,(/},W ..?~ dtJdl in (!,(""T7l-tlb'lA-/ 1/ .:tit.> A-01 dez.Q( c,'nc A. at Cl; (/V A.M. . f (/ BY THE COURT: J. rl\~JJ, t~ 1"4.01 O\'\k J. Wrillen discovery has hcen exchanged .lI1d answered hy the parties and is nearing completion. 4. The depositions of the panies and various witnesses have been completed. 5. PI;lintilT helieves that the only one other deposition. that of the corporate designcc for Defendant Schwinn. needs to he ohtained hclllre expert reports can he exchanged and the mallcr listed for trial. 6. Bccause there arc five allomeys involved in this casc. it is anticipatcd that it will be difficullto find a trialtenn convenient to counsels' schedules. 7. The Plaintiff is represented by David S. Wisneski, Esquire, Angino & Rovner, P.C., 4503 North front Street, Harrisburg, I' A 17110. 8. Dcfcndant. Schwinn Cycling & Fitness. Inc., is represented by Michael E. Sacks. Esquirc, Hamburg & Goldcn, P.c., 1601 Market Street. Philadclphia, P A 19103-1443. 9. Defendant, Nauti-Lis. Inc., is represented by Thomas 1. Williams. Esquire, Marlson, Deardorff, Williams & 0110. Ten East High Street, Carlisle. PA 17013. 10. Additional Defendants, Edward Eiscnhaller and Francis Eisenhauer, are represented by Mallhcw R. Gover. Esquire, Nealon & Gover. 301 Market Street, 9th Floor, Harrisburg, PA 17108-0865. 11. A cross-claim was filed against the Plaintiffs guardians, George and Debra Eisenhauer. They are represented by Charles B. Calkins, Esquire, Griffith, Strickler, Lcnnan, Solymos & Calkins, 110 South NOlthcm Way, York, PA 17402. 12. Court intervention is requested to estahlish deadlines for discovery and a definitive trial date, ifpossible. 'j.. I WiiEREFORE. it is respeelfully requested that the COUI1 schedule a Pretrial Case Management Conference involving all counsel of record. ANGINO & ROVNER. U David S. Isneski. Esquire J.D. No. 58796 4503 N. Front Street Harrisburg, PA 17110 (717) 238-6791 Counsel for Plaintiff L 1-- I I i Respectfully submitted. Date: January 1 S, 2001 ?,; " ,.. ~ N ~ Co; 81 It..JQ r)"i__ :c ~~: c.. of 9~ Cr\ :~ . C:)'~. b..... h" :e tn c: ~. -:t a.la,.-: -, ~. '" a 1.- 0 0 Discovcry, including the designation and deposition ofSchwinn's corporate designee, shull be complcted by June )0. 2Otll. All dispositive motions shall he filcd prior to July 31. 2001. Counsel will assume the rcsponsibility for listing thc motions lilr argumcnt prior to August 9, 200 I, for argument on August 29. 2001. The mailer is tcntativcly set for trial during the wcek of civil trials commencing Novembcr 5, 2001. Inasmuch as thc last day for sclling down causes for the November tcrm is September 17,2001. counsel should list the case for Novernber prior to Scptcmbcr 17, 2001. In the alternative, at the time summary judgment motions arc argued, counsel may request of the court an order listing the mailer for November. Should counsel be unablc to try the case in November, any request for continuance to January of 2002 will be liberally grantcd. Plaintiffs' expert reports will be exchanged prior to the last day of August, 2001. Defendants' expert reports shall be due no more than forty-five (45) days thereafter. [! f" It is understood that defendant Schwinn may file a rnotion to bifurcate the trial on the issue of corporate successor liability. All parties will be given the opportunity to respond to any such motion. February 23, 2001 i?!L ~\ f' -',y ,Y ~ ~({? 071 (Jr;- David S. Wisneski, Esquire Joseph Melillo, Esquire For the Plaintiffs Michael Sacks, Esquire For Schwinn Cycling and Fitness, Inc. TA YI.OR EISENHAUER. A Minor. By GEORGE W. EISENHAUER and DEBRA A. EISENIIAUER. his I'an:nls and Natural Guardians. Plaintiffs v. SCHWINN CYCLING AND FITNESS. INC.. and NAUTI-LlS. INC. TID/R/A BUSHEY'S CYCLING AND FtTNESS HEADQUARTERS and T1DIB/A BUSHEY'S SCHWINN CYCLERY. INC.. Dcfendants v. EDWARD EISENHAUER and FRANCIS EISENHAUER. Additional Defendants IN TIlE COURT OF COMMON PLEAS CUMBERLAND COUNTY. PENNSYLVANIA \c..~ NO. 99-~ Civil CIVIL ACTION - LA W JURY TRIAL DEMANDED PRAECIPE TO WITHDRAW/ENTER APPEARANCE Please withdraw the appearance of David S. Wisneski. Esquire as counsel of record for Plaintiff in this action. Dated: March 8, 2001 Respectfully.ubmillcd, Da id S. Wi neski, Esquire J.D. No. 58796 2040 Linglestown Road, Suite 303 Harrisburg. P A 17110 (717) 541-9205 Please enter thc appearance of Joseph M. Mclillo, Esquirc, as counsel of record on behalf of the Plaintiff in this malter. Datc: March 8, 2001 Respectfully submilled, ANGlNO & ROVNER, P.C. /\ (lfff/ Y)7. Q) JJ.;/I JOtfoP9 . Melillo, Esquire A omey J.D. No. 26211 4503 North Front Strcet Harrisburg, P A 17 I 10 (717) 238-6791 ,- \lJ ~ (.~ ~ : ~- 'J .- , , ,~ ..! ~.J ,. , '-'- 0: .:.~ ,-t); :)~ 0-. , CJ ';f') , N .'):;--; ,::;.- .. C>e "llIJ ....': roo- j.- , ::5 ~.) -:::0 U 1. Admitted, except that the subject XR-5 exerciser was manufactured by Schwinn Bicycle Company in 1976. 2. Admi tted . 3. Denien. It is denied thnt George Eisenhauer purchased the subject XR-5 in the early 1990s. On the contrary, George Eisenhauer testified that he purchased the subject XR-5 in approximately 1978 from an older couple in Camp Hill, Pennsylvania. p. 23) 4. Denied. It is denied that George Eisenhauer gave the exerciser to his mother. On the contrary, George (Deposition of George Eisenhauer at Eisenhauer testified that he loaned the exerciser to his mother, Frances Eisenhauer, in approximately June, 1995. 5. Admitted. 6. Admitted that defendant Nauti-Lis, Inc. entered into an asset purchase agreement with Bushey's Schwinn Cyclery, Inc., and that Nauti-Lis, Inc. continued in business at the same location. 7. Admitted. 8. SCF lacks information to either admit or deny the allegation in paragraph 8. 9. Admi tted. 10. Admitted. 2 11. Defendant SCF cannot determine whether the moving party, Nauti-Lis, Inc., is entitled to summary judgment r r I , , , I L based on the facts presented, and will respond in detail when Nauti-Lis, Inc. files its brief with the Court. 1/J1~lc~ E.L- JAMES P. GOLDEN MICHAEL E. SACKS HAMBURG & GOLDEN, P.C. 1601 Market Street, Suite 565 Philadelphia, PA 19103 (215) 255-8590 Counsel for Defendant Schwinn Cycling & Fitness Inc. 3 CERTIFICATE OF SERVICB i _ ;/ I certify that on July 17, 2001, I served the foregoing Answer to Nauti-Lis, Inc. 's Motion for Summary L Judgment, by regular mail to the following: Joseph Melillo, Esqure Angino & Rovner, P.C. 4503 North Front Street Harrisburg, PA 17110 Attorneys for Plaintiffs Charles B. Calkins Griffith, Strickler, Lerman, Solymos & Calkins 110 South Northern Way York, PA 17402 Attorney for Additional Defendants Edward and Frances Eisenhauer ~~~.u MICHAEL E. SACK Attorneys for Plaintiffs Thomas J. Williams, Esquire Martson, Deardorff, williams, & Otto 10 East High Street Carlisle, PA 17013 Attorney for Defendant Nauti-Lis, Inc. Matthew R. Gover Nealon & Gover 301 Market Street, 9th Floor P.O. Box 865 Harrisburg, PA 17108 lI'i'/1TED S1'ATES Bt\NKRlJPTCY COURT FO'R TIlE DiSiRtCT OF COLORADO ChiefSanlc.roptcy Jud~c Marcill S. Kricger ID':J":JO:Joo~~-/9JC CiviL T~ PIICI: 2 '4 Filla ' 'P.A:FO~O l. BOLTO:I. CLEM \ \A 18;~~1 u.s.~~.cov~T bUmoICt Of' Clll.OAAOO oJUL-\II-,,\ tG.ao F"ROH.Och"dnn Cya11na So I'll-nus. (Q(~: SCHWINN/G'! CORP. EINt:S2.20SS603, O~btor. ) ) ) ) -- ) SCh"N1NN CYCl.ING AND Fl'11'-F=.SS, INC., ) EIN#g4-1238790. ) Debtor, ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Bankruptcy ClUe No. OI~20292.SDB Cha;:ter 11 Ba.'\l:ruptcy Case No. .. 01.20293.5811 . C!::;:cc: 11 GT BICYCLES, INC., ElNII9S.35069S2. Debtor. llank..'Ilplcy C~se No. OI.10294.SBEl Ch:p!er t I romw A Y DISTRlBU'iiON, INC., ElN#43.1501l88, Debtor. B:tnkrJptCy Ca$~ No. 01.202950$89 Chllplcr 11 Ba.nkl1lpte}' Case No. Ol.20296.SBB Cha.pter il " IIEOB I1'<1lUSTRlES, INC., ElN//7S-2S28337, ~btoc. OT Blv1X, L.~C., ElNii9S-3809QS3, Deblor. Ban.lquplcy C",~e No. OI-2029i.$l:l1l Chllpte:" 11 Me No. BMW-1S JOINTLY ADMINISTERED CASE NO. Ol.2G:m.SllH NonCE A.""D ORDER Of AUTOMATIC STAY .- II-lIS MA TIER cnme before :he ColJrt on tt;e Debtors' Motion for R~~ining Ordor Wed July 16.2001.. Th.: Cout!, having reviewed the Motion ier ResL.-cini..,g Order and having coac!>JCte<1 a hcaring 011 July IS, 2001 on:he Motion for Resttainbg Order, DOES fiND as follows: j. The Dtbtcrs ~V~ filed petitiOl"oS for r<:o~~..uzetion \Ulcer Ch::tpte: ! 1 or the United st.....t~S Bnnknlptcy Ccd.~ (11 U.S.C. 9 iOI et ~q.) end intend to contLl""::; in t.\.:: mllr~~-:r!!er:t and possession of their respcclivc b~i..~es5es and proper"..i:S cU d~btots in possession p\.U's'J2.Zi.t tv sectio~.~ 1107 and 1103 of Ihe United St:lt~ Bnr.knlptcy Code. 2. Tnis Court, pUtS'JMt to 28 U.S.C. S 13:;4 =i 157, ha.s !xc!usivcjurisciction of nil of the property o[~ie Debtors, wherev.:r locac<:d~ nnd, plJl'Stl:lll1 to sectiol'.s 10S(a) a.."la 362 oflhe ~UL-sn-os 1s,a? PROH,Doh~lnn Cycllna A r-ILnoaa rD,~aaOa0048G . . Uniled SW~s D~luui'ICy'Codo,lhis CoUlt ~y ~.uc ""'1 ordcr,protcss or judgment as m~y b~ neeess3.t)' or Appropriate [0 clllT)' OUlthe provisions or thc Bank1'llplCY C~=. ., 3. The ~btors seck II "ftmininC onler" to suPllle~ent and enfOf\:C (1)1. provbiotlS ofsmioQ 362 oflhe Uniced Sa!cs B:uWuptcy Code. Requests fo: injec:tivc relief must be brought by way oran edvcrs:uy proceedinll in ilccord:lllce with Fcd.R.Ban.l(r'p. 7001(1), ThtU, the pc:ndin:: Mo~on for Res!r:Iiolng Order Is procedurally improper. Neverchelc::u, this Coun docs believe it is apPTopnnc: lIlId finds that cause has been shown to enter III order cl:lrifying thc n::tUN I:/'ld el(~nt cfthe automali. my imposed by the United ~tat=s Be.nl:ruptcy Codc. \1' IS THEREFORE ORDERED, ADJUDGED AND DECREED: t Tn~r, in aceorducc with II U.s.C. ~ 362(a) the tiling of Debtors' petitions under Chapter 11 oftl:e lI'nilcd StateS BaokruptC). Cc.de stays ~I persons lllld cnlilies from; :I. the cornmeiu:<!=nt or continuarion, includi:lg the isSllallce or el1lploymenl ofp:occss, of ajudil:ial, ad.'l\inistnllive, or othcr action or proee..-din:: ngair.sr. the DeotofS Th~ was or could have becn cOD'lmeoccd b<:fore the COnllnence::uenc oftbc ease Ullde<' the United States BankruplCY Code, or to recover a e~i:n as~t the ~"lor; That s.y~ b<:fo:e t.'1e eOll'llMneel!ler.l of the = under the Uni~d Sl!l<.$ Ba."lknIptc)" Code; b. the en{orcemenr, ngair.sr. :I,e I),,!::o:s or "!loinst prope:1y of the estate. of II judsmcnl obtained b<:fore the commeneem<:n: of the e~ u::der the Uciled States BankruPI"J' Code; . c. MY 3ct to obum POSSe$S10r. ofpror--'Y of me CSlllle or ofpropeny f(om ~l. estate ort.;> ~'(efCise control overp.o?"rt)r ofthc est!!te; d. any act to c:e3.:2, ~f~:, or tnfCl!Ce:!!lY lien ag.uilstproperty of the ':state; e. ""'y act lQ cceate, pede:: Of =-..fc~e.against prope:1y of the De910l'S any Hen to tile exte:tt that such lien secures 0. claim t~t :''''O$e h:fore t~e ';ommcn~:ncnt of the easo under the UlIiled Stales B"".krlip;ey Code; f. . "'Y iCI to eoUec!, assess, 0: =0\1\.':" a claim ngainst 4ie D.blO~ thaI arose lxfo:e th~ conu:!encemcnl ofth~ cas~ under the Un:r~:.! States Ba."tt.:ru.DtCY Cod:; g. lne setoff of a.....y dabl ov.1ng :0 The Deblors that a:o~ before tlle eommeneemenlofthe =: uncienhe UrJt:c Steles Ea."....._"Uptcy Code a~ainst arJY claim :lga!l'oSt Ille Deolors; a.,d h. th~ eommencement or conti~:.:atior. of a proceeding b-c::forc: t.t,e Untied 3t::cs Ta.,,< COtU1 con~:cir.g the DC!btors. 2 PIICE :J/4 .. ..~ ,< "'UL"'I~-.OI ,'G'07 PROH.Ooh\l'nn Cyol'nn & ".Ln... ID':J03D3D040G .' Unltecl Suucs B"llluuplcy'Code, this COUlt m3Y I~:ue UI'J order, process or judalllellllS m~y b.: neccss~ or appropriate to c:llT)' OUI the provisions of the BankruplCY C~e, ., 3. The D.lbtocs seck II "fUlrIl1ninC oree:" to suPlllement and enforee tile provUlons of seetioQ 362 orlhe Uniced 5l&!(S BlllIbuptcy Code, Rcquesu tor injuc:tiYll relief mUSI be brought by way ohll cdvecs:uy proceedlnc in accordance with Fcd.R.Bartl(r'p. 7001(1). Thus, the pendinC Mo~on for Restr.2lolog Order Is procedurally improper. Ncvenhclcss, this Coun docs b<:lieve it is Bpf>roprinca and finds that cause has been shoWn to enter Illl oreer cl:uifyinS the n::!u:c end ext.!nl orthe auto::;:'(c my imposed by the United ~lates Ba:lbuplcy Code, ' n'ls THEREFORE ORDERED, ADlUDOED AND DECREED: 1. Th~l. In aCCOr~ec wi~'t II U.s.C. ~ 362{a) the filing ofDeblOrs' petitions Wldtr Ch~ptcr 11 of the Unitecl StA!l:S Bankruptcy Code stays all pCfSOIU lllld cnlici". from: a. lbe tornme~=l or continuarion, includillg the iss=e or eruploymelll ofp:occss, of ajudic:iill, ;t(!minisTr.nivc, or other action or procc..'din:: ~air.st the DeblO" tho.! ms or could have becn commenced before lhe ea=ence:nenr oflh<; casc t:llder the United States Bankruptcy Code, or to rcco,cr a claUn asMnsl the Delnoro thalll..-o~ before tie eO=::ce:ner.t of the case under the UniU:d Sr!f~ Ba.'1krupIC)' Code; b. the enforcemen,. "gall's. l.'1e n..b~o!'S or agll!nst propeny of the estate. of a judGment oblaincd before the commencemec: ofth. cue ur.der the Uclted States BankruptC)' Codcj c. ~ny act 10 ohuin possession ofproper;y of the eS[3le or of property f,om ~le cstlltc or to exercise control over p.cpc:ly oftl:c estllte; d. My ael to c,e3.~, p<o.f::et, or e:Uorce l!!1Y lien aglU.,st propercy ofthee;ltatc; e. 3,'y act to CfCaCe, ped'cc:: or .....(0:0:. agai= proper;y of tile De\>tocs any Hen to Ille ex ten! that suell lien secures" cla:m I!::: 3."'05e bofore L~C ';ommc.'l~:ncnt of the C3.\ll under the United SfaleS Bi:I".kr",p,cy Code; r. . a.'l}' aCI to eoUec!, assess, or =oV\.':' a c!aim agaias. !.ic Debto~ thaI arose lxfore rh~ commencemenl of the cas~ under me Un!r::.! States Ba."'Lt.:ruptc)' Code; g. th~ seloff of:uo.y dco! owing to the Deblors thaI ~ose beio:e the commeOCer:1eOI of the =. undcrthe Unite': Sletes Bc."_~'Ilp:cy Coo. a;:ainst any claim :!.gair.st the Debtors; c."ld h. the eO!l'\r:l~!lcement or conti~t:atior. cf a proceeding ~fo" t.~ Untied St::!cs To..O( Court conct:cir.g: th~ Debtors. 2 PAr-I: 31'4 ~ . .' HAMBURG & GOLDEN, P.C. AnomeYI 1601 Markel Slreel, Suile 565 Philadelphia, PA 19103.1443 (215) 255.8590 Facsimile: (215) 255-8583 secksme C hamburg.golden.com James P. Golden Nell J. Hamburg Michele M. Rovinsky Michael E. Sacks Jane B. LaPorte JuHwon LCD Sena Singer July 20, 2001 Wrller's Direct Dial: 215.255.8591!. Prothonotary's Office Cumberland County Courthouse 1 Courthouse Square Carlisle. PA 17013 Re: Eisenhauer v. Schwinn Cycling & Fitness Inc. C.C.P. Cumberland County, No. 99-1930 civil Dear Sir or Madam: James Golden and I represent defendant Schwinn Cycling & Fitness Inc. in the above captioned matter. I am writing to inform you that Schwinn Cycling & Fitness Inc. has filed for bankruptcy protection, and that all litigation pending against it, including this case, is subject to an Automatic Stay pursuant to Section 352 of the United States Bankruptcy Code. I am enclosing a copy of the Notice and Order of Automatic Stay entered on July 18, 2001, by the United States Bankruptcy Court for the District of Colorado. Thank you for your attention to this matter. j4:IY, MICHAEL E. SACKS MES:clf Enclosure cc: The Honorable Kevin Hess (wi encl) Thomas J. Williams, Esquire (wi encl) Charles B. Calkins, Esquire (wi encl) Joseph Melillo, Esquire (wi encl) Matthew R. Gover, Esquire (wi encl) HAMBURG & GOLDEN, P.C. Attorneys 1601 Markol Slroet, Sullo 565 Philadelphia, PA 19103.1443 (215) 255.8590 Facsimile: (215) 255.8583 sacksme@hamburg.golden.com r: r" r , I r James P. Golden Nell J. Hamburg Michele M. Rovlnsky Michael E. Sacks Jane B. LaPorta JuHwon Lao Sona SIn90r July 20, 2001 WrtlOr'1 Direct Otal: 215.255.6596. Court Administrator Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013 Re: Eisenhauer v. Schwinn Cycling & Fitness Inc. C.C.P. Cumberland County. No. 99-1930 Civil Dear Sir or Madam: James Golden and I represent defendant Schwinn Cycling & Fitness Inc. in the above captioned matter. I am writing to inform you that Schwinn Cycling & Fitness Inc. has filed for bankruptcy protection, and that all litigation pending against it, including this case, is subject to an Automatic Stay pursuant to Section 362 of the United States Bankruptcy Code. I am enclosing a copy of the Notice and Order of Automatic Stay entered on July IS, 200l, by the United States Bankruptcy Court for the District of Colorado. Please note that a praecipe for oral argument was recently filed in this matter. Thank you for your cooperation. ~e,IY' MICHAEL E. SACKS MES:clf Enclosure cc: The Honorable Kevin Hess (wi encl) Thomas J. Williams, Esquire (wi encl) Charles B. Calkins, Esquire (wi encl) Joseph Melillo, Esquire (wi encl) Matthew R. Gover, Esquire (wi encl) +TAYLOR EISENHAUER, A Minor, By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians COURT OF COMMON PLEAS CUMBERLAND COUNTY No. 99-1930 civil v. SCHWINN CYCLING & FITNESS, INC., and NAUTI-LIS, INC., T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY, INC. v. EDWARD EISENHAUER and FRANCIS EISENHAUER 2297 Fairfield Circle State College, PA 16801 ORDER AND NOW, this 'Z. l' day of <;"'" , 200l, the Court issues the fOllowing Order: The attached Notice and Order of Automatic Stay issued by the United States Bankruptcy Court for the District of Colorado, indicates that Schwinn Cycling & Fitness Inc. has filed for reorganization under Chapter 11 of the United States Bankruptcy Code and is therefore subject to the automatic stay provisions of Section 362 of the Bankruptcy Code. Accordingly, this case is Stayed until further Order of the Court. The August 29, 2001, argument on motions for summary judgment is continued until further Order of Court. Pursuant to the joint suggestion of counsel, dispositive motions will be filed within 30 days following "JUL-IB-01 16.07 FROH.Sohw'nn Cygl '"0 & FILn... lDf~D~O~004DG . . PAce 41'4 2. This Ordor sl1l1llnol nffccl:he e~ccplicns 10 the autor:lloli~ l\iy c91114incd In seclion 362 of ;;:~.Uniled Stnles B4llkruptcy Code or The nlllt of cny p:uty in intckst to sede rtlie! from the 3ulomatic stay in 3ceortla:lCe with section 362(d) of the United Slales BAAkNptt;y Code. Dated this ~t of July, 2001. ElVTHJ;COURT: I ) /ltU~ .J.~'4'fJ M~ia S. Krieger, u Chief Judge, United Sl.I.lCI B&nlczuprcy COlin ~ " " 3 ,",'.". "'''-0;,'.' MDW&:6 IHU",,"TlUN' AlMa: . AllYtlf,:N.:Y TEN EAsT HJGH STREET CARLISLE, PENNSYLVANIA 17013 . . JUN 2 22001 *_. , f'fII.15n"l"nu 11()~Hj.\', 11(l(~'", ""~ r ..,1Jt (......N'll"...,III""....'."..., It.uw..l JIJ1UU' )tUO'" TAYLOR EISENHAUER, a Minor. by GEORGE W. EISENHAUER :md DEBRA A. EISENHAUER, his P:trcnts and Natural Guardi:tns, PI:tintiffs IN TilE COURT OF COMMON PLEAS OF CUMBERI.AND COUNTY. PENNSYLVANIA I I t , ~ v. CIVIL ACTION. LA W NO. 99-1930 SCHWINN CYCLING AND FITNESS. me., and NAUTI-LIS,INe. T/D/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and T/D/B/A BUSHEY'S SCHWINN CYCLERY,INe.. Defendants v. EDWARD EISENHAUER and FRANCIS EISENHAUER, Additional Defendants JURY TRIAL DEMANDED MOTION FOR SUMMARY JUDGMENT OF DEFENDANT NAUTI-L1S. INC. TO: TAYLOR EISENHAUER, a Minor, by GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians, Plaintiffs and their attorney, JOSEPH M. MELILLO, ESQUIRE and SCHWINN CYCLING AND FITNESS, INC., Defendant, and its attorney, MICHAEL E. SACKS, ESQUIRE and EDWARD EISENHAUER and FRANCIS EISENHAUER, Additional Defendants, and their attorney, MATTHEW R. GOVER, ESQUIRE YOU ARE HEREBY DIRECTED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED MOTION FOR SUMMARY JUDGMENT IN ACCORDANCE WITH Pa. R.C.P. 1035.2. AND NOW, Defendant Nauti-Lis, Inc. respectfully alleges the following: I. This products casc involves a Schwinn Model XR-5 exercise hicyclc, (hcrcinaftcr XR.5l, manulllcturcd by Schwinn Bicycle Company sometime in the early I 97lJs, and apparcntly wholcsalcd 10 Bnshcy's Schwinn Cyclcry, Inc" a rctail bicyclc storc, in LCllloync, Pcnnsylv(ll1ia (hcrcinaftcr "Bushcy's"). 2. On August 3, )976, Bushcy's sold this particuhlr XR-5 a to John Mcllcn, 321 Lamppost Lanc, COlInI' Hill, Pcnnsylvania, tclcphonc 737-lJ859, whosc whcrcabouts arc prcscntly unknown and who is bclicvcd to bc dcccascd. 3. Somctimc in thc carly I 990s, PlaintiffGcorgc Eiscnhaucr purclmscd this particular XR-5 uscd from a pcrson or pcrsons unknown, 4. Subscqucntly, PlaintiffGcorgc Eiscnhaucr gavc thc cxcrcisc bicyclc to his mothcr, Francis Eiscnhaucr, who kcpt it in hcr family room and uscd it two or thrcc timcs daily. 5. On Dcccmbcr 27, 1995, Plaintiff Taylor Eisenhaucr suffercd pennancnt physical injury as a result of playing with thc XR-5 at the homc of Additional Dcfcndants Francis and Edward Eisenhauer, Plaintiff Taylor's grandparents. 6. On Septcmbcr ] 8, 1991, Defcndant Nauti-Lis, Inc, (hcrcinaftcr "Nauti-Lis") purchased thc assets of Bushey's and continucd thc busincss of Bushcy's (It its cxisting location under the namc Bushey's Cycling and Fitness Hcadquartcrs, 7. Nauti-Lis and Bushcy's were unrclated corporations dcaling at arm's length. 8. On July] I, 1994, Bushey's went out of existence. 9. Plaintiffs' Complaint alleges that Defendant Nauti-Lis, Inc. is strictly liable to Plaintiffs under the Restatemcnt (Second) of Torts, * 402(a), for the actions of its predecessor corporation, Bushey's Schwinn Cyclcry, Inc., which initially sold thc XR-5, as a "successor" corporation. (Complainl at 72). 10. Depositions of all pm1ics and their principal witncsscs have becn completed. All discovery has been concluded. 11. For thc following reasons, and as more fully discussed in the forthcoming Brief, the undisputcd facts establish that Movants arc cntitled to Summary Judgment as a matter of law becausc: ,>. - ~ (0: c.,: ,- , . :.c) ,--, - .1 (. ,., ('. . .' , , ..... , ::3 C,) u . - .' .f M!2W&:6 II,. ',' - . Tf.N F.MT 1-IIGII STRf.ET CARI.ISU:. Pf.NNSYLVANIA 17013 Joseph M. Melillo, Esquire ANGINO & ROVNER, P.C. 4503 North Front Street Harrisburg, PA 17110-1708 '",',1."1",11.",111.."."1""111,,.1..,,.,,,11 MARTSON DF.ARDORFF WILI.IAMS & Orro MJ2W&lO "' . -' : . TEN EMr HIGII STRn.T CARLlSI.F.. PENNSYlVANI^ 17013 Charles B. Calkins, Esquire GRIFFITH, STRICKLER, LERMAN, SOL YMOS & CALKINS 110 South Northern Way York,PA 17402 1",111,,,1,1,,1111111,1.',11,,1 MARTSON DEARDORff WilLIAMS & OTTO MQW&:O II TEN EAST I-IIGII STJU:I;T CARI.ISl.F., Pf.NSSYLVANI,^ 17013 Michael E. Sacks, Esquire HAMBURG & GOLDEN, P,C. 1601 Market Streel, Suite 565 Philadelphia, PA 19103 1",11I,1","111I","11,,11,,1 . ,{ Mi2W&o .. - . 'f'F.N EAST BIGII STRrn CARWiU:, Pt:N:"lS\'I.VANIA 1701.i Malthcw R, Gover, Esquirc NEALON & GOVER 301 Markct Strcct - 9th Floor P.O. Box 865 Harrisburg, P A 17 J 08 1",11/",1",11/1",1"1",1/,, 'j - MAR'rSON /)""'K(}ORff WIII.IAM.' N 0 no ~tQW&:O II 'n:N F.A!H' 1-11(;11 STRIJ:1' CARI,ISl.F. f)f.NNS'r'L\'ANIA 17013 Thomas J. Williams. Esquire MARTSON DEARDORFF WILLIAMS & ono Ten East High Street Carlisle, PA 17013 1."111.,.111,.,,,,11.,11,1,,1.1 ...."....-......".:, b. The Liquidating Trust, successor to Schwinn Cycling , Fitness Inc. pursuant to the Confirmation Order of the Bankruptcy Court dated March 13, 2003: c. CNA/Columbia Casualty Company, the insurer for Schwinn Cycling' Fitness Inc. under Policy No. PCL 001476: d. Evanston Insurance Company and Investor's Insurance, insurer for Schwinn Cycling & Fitness Inc. under Policy No. GLP 1002923: e. Any person or entity that purchased assets of Schwinn Cycling & Fitness Inc. in the Bankruptcy Case, including Pacific Cycling, Inc., purchaser of Schwinn Cycling & Fitness Inc. 's Cycling Division, and Direct Focus, Inc., purchaser of Schwinn Cycling & Fitness Inc.'s Fitness Division: f. Nauti-Lis, Inc.: g. Donegal Companies, the insurer for Nauti-Lis, Inc. under Policy No. BOP OOl5789 022: h. George W. Eisenhauer and Debra A. Eisenhauer, as defendants: i. Horaoe Mann Insurance, the insurer for George W. Eisenhauer and Debra A. Eisenhauer under policy No. 37-000722839; j. Edward Eisenhauer and Francis Eisenhauer; k. Allstate Insurance, the insurer for Edward and Francis Eisenhauer under Policy No. 077115917, as well as the agents, servants, employees, volunteers, representatives, officers, directors, underwriters, attorneys, insurers, subsidiaries, divisions, successors, assigns, heirs, executors and administrators of each of them. 2 3. The parties agree as follows I a, CNA/Columbia Casualty Company, for itself, Schwinn Cycling & Fitness Inc., the Liquidating Trustee, Evanston Insurance Company and Investors Insurance, and any person or entity that purchased assets of Schwinn Cycling & Fitness Inc. in the Bankruptcy Case, including Pacific CYCling, Inc., purchaser of Schwinn Cycling & Fitness Inc.'s Cycling Division, and Direct Focus, Inc, purchaser of Schwinn Cycling & Fitness Inc.'s Fitness Division, will pay to Taylor Eisenhauer, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, the sum of $100,000, consisting of a check in the amount of $30,000, made payable to Angino & Rovner, P.C., and $70,000 invested in a structured settlement/annuity, payable in four consecutive annual payments to Taylor Eisenhauer, in the amount of $26,743.60 each, the first such payment being on February 10, 2013. b. Donegal Companies, for itself and Nauti-Lis, Inc., t/d/b/a Bushey's Cycling and Fitness Headquarters and t/d/b/a Bushey's Schwinn Cyclery, Inc., will pay to Taylor Eisenhauer, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, the sum of $10,000, by check made payable to Angino & Rovner, P.C.; c. Horace Mann insurance, for itself and for George W. Eisenhauer and Debra A. Eisenhauer as defendants, will pay to Taylor Eisenhauer, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, the sum of $7,500, by check made payable to Angino & Rovner, P.C.; 3 - - ... .... d. Allstate Insurance, for itself and for Francis Eisenhauer, will pay Taylor Eisenhauer, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians, the sum of $5,000, by check made payable to Angino & Rovner, P.C. 4. In consideration of the total payment of $122,500, as set forth in paragraph 3, the Releasors do hereby remise, release and forever discharge the Releasees from all actions and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments, claims and demands whatsoever, in law or in equity or admiralty, whether known or unknown, including, without limitation, claims for attorneys' fees, and including all claims for known or unknown injuries and damages sustained by Taylor Eisenhauer as a result of, or in any way related to the accident involving a Schwinn Bicycle Company XR-5 exerciser that occurred on December 27, 1995, (the "Subject Incident"), some or all of which is the subject of the civil action filed in the Court of COlnmon Pleas of Cumberland County, Pennsylvania, Case No. 99-1930, captioned "Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his Parents and Natural Guardians v. Schwinn Cycling and Fitness, Inc., and Nauti-Lis, Inc. t/d/b/a Bushey's Cycling and Fitness Headquarters and t/d/b/a Bushey's Schwinn Cyclery, Inc," (the "Cumberland County Case"), and which was also the sub:ject of a claim filed on behalf of "Taylor Eisenhauer, a minor, by George W. Eisenhauer and Debra A. Eisenhauer, his parents and natural guardians" in the Bankruptcy Case. 5. Upon payment of $52,500.00 to the Releasors, and proof of investment of $70,000.00 in an annuity as set forth in 4 paragraph 3, the Releasors shall file such pleadings as are necessary to terminate the Cumberland County Case with prejudice. 6. Re1easors represent that there are no other claims, demands or lawsuits of which they are aware, other than the CUmberland County Case and the claim filed in the Bankruptcy Case, relating to or in any way arising from the Subject Incident. Releasors further represent that they have not assigned to any other person or entity all or any portion of any claim that they had, may now have, or may in the future have against any of the Releasees arising in any way out of the Subject Incident. 7. If the Releasors assert any claim or demand, or commence any action against any person or entity arising in any way out of the Subject Incident, and such person or entity, or anyone acting on his or its behalf, asserts a direct or third party claim, or a claim for contribution or indemnity, against any of the Releasees, then Releasors shall indemnify and defend Releasees for all loss, damage and expense, including attorney's fees, from all such claims, demands or actions, including actions for contribution or indemnity, brought by any such person or entity or anyone acting on his or its behalf related to the Subject Incident. 8. The parties release all counterclaims, additional party claims, and cross-claims against one another asserting liability for the Subject Incident, including claims for contribution or indemnity, claims for attorneys' fees, costs and expenses relating in any way to or arising out of the Subject Incident. 9. Releasors have sole and complete responsibility, subject to court approval of the minor's settlement, for the lawful 5 distribution of the payments made by and on behalf of Releasees, including but not limited to sole and complete responsibility for satisfying any liens, subrogation interests or other claims arising from any payment of benefits, medical bills, loot wages or other consideration to or on behalf of Releasors. 10. Releasors represent that Taylor Eisenhauer's date of birth is February 10, 1991, and that his Social Security Number is 999-70-9956. If the age or sex of Taylor Eisenhauer is found to have been misstated, then the payments specified will be adjusted to the benefit provided by the original cost based upon correct information. II. Taylor Eisenhauer shall have the right, at any time during the term of this Settlement Agreement, provided the age of majority has been reached, to submit in writing a request to name, to revoke, or to change, a contingent payee to receive the balance of the payments due in the event of his death ("Contingent Payee"). This request will be reviewed and become effective when approved, except as to any payments made before such change was approved. Notice of such change will be made by CNA/Columbia Casualty Company and/or its assignee, in writing and furnished to the requestor. No such designation, revocation or change shall be effective unless in writing and delivered to CNA/Columbia Casualty Company and/or its assignee. The designation must be in a form acceptable to CNA/Columbia Casualty Company and/or its assignee before such payments are made. In the event of the death of Taylor Eisenhauer without having named a Contingent Payee, any payments due pursuant to the terms 6 of this Settlement Agreement and Release shall be made to the Estate of Taylor Eisenhauer. If a named Contingent Payee is not living at the time of Taylor Eisenhauer's death, all such payments will be made to the Estate of Taylor Eisenhauer. 12. The parties acknowledge and agree that CNA/Columbia Casualty Company may make a Qualified Assignment within the meaning of Section l30(c) of the Internal Revenue Code of 1986, as amended, for its liability to make the periodic payments required in this Settlement Agreement and Release. Such Assignment, when made, shall be accepted by the Releasors and the Releasors' counsel without right of rejection and shal1 completely release and discharge Schwinn Cycling & Fitness Inc. and CNA/Columbia Casualty Company from the obligations contained in this Settlement Agreement and Release. Releasors recognize that, upon such an assignment, the Assignee shall be the sole obligor with respect to the obligations assigned, and that all releases that pertain to the liability of Schwinn Cycling & Fitness Inc. and/or CNA/Columbia Casualty Company are final, irrevocable and absolute. A Qualified Assignment, Release and Pledge Agreement is attached hereto as an addendum. Releasors represent that they are executing the Qualified Assignment, Release and Pledge Agreement, in the appropriate form, concurrent with the execution of this Settlement Agreement and Release. The Assignee, CNA Structured Settlements, Inc., shall fund the periodic payments by purchasing a "qualified funding asset" within the meaning of Section 130(d) of the Internal Revenue Code in the form of an annuity contract issued by Continental Assurance 7 ... Company, which will be an A-rated company or better by A.M. Best at the time of issuance. All rights of ownership and control of such annuity conLract will remain vested with the Assignee exclusively. The Assignee shull direct Continental Assurance Company to send the periodic payments directly to Taylor Eisenhauer or a named Contingent Payee. Such direction of payments shall be solely for the Assignee's convenience and shall not provide Taylor Eisenhauer or such named Contingent Payee with any rights of ownership or control over the uqualified funding assetU or against Continental Assurance Company. The Assignee's obligation for payment of the structured settlement payments shall be no greater than that of Schwinn Cycling & Fitness Inc., CNA/Colurnbia Casualty Company (whether by judgment or agreement) immediately preceding the assignment of the obligation for the structured settlement payments. 13. The payments under this Settlement Agreement constitute damages on account of personal injuries or sickness within the meaning of sections 104(a) and 130(c) of the Internal Revenue Code of 1986, as amended. The periodic payments required under Paragraph 3(a) shall be provided for and secured by an annuity contract with the Continental Assurance Company. 14. The obligation of Schwinn Cycling & Fitness Inc., CNA/Colurnbia Casualty Company, and/or Assignee to make each periodic payment shall be discharged upon the mailing of a valid check in the amount of such payment to the designated address of the payee. Releasors, Taylor Eisenhauer or the Contingent Payee shall be responsible for maintaining a current mailing address 8 with Continental Assurance Company at Post Office Box 87669, Chicago IL 60680-9995. Unless otherwise notified in writing, future periodic payments to Taylor Eisenhauer shall be mailed to 650 Billett Drive, Mechanicsburg, PA 17055. 15. Periodic payments under this Settlement Agreement and Release cannot be accelerated, deferred, increased or decreased by the Releasors, Taylor Eisenhauer or any Contingent Payee, and no part of the payments called for herein or any assets of Schwinn Cycling & Fitness Inc., CNA/Columbia Casualty Company or Assignee are to be subject to execution or any legal procese for any obligation in any manner, nor shall the Releasors, Taylor Eisenhauer or any Contingent Payee have the power to sell, mortgage, encumber or anticipate same, or any part thereof, by assignment or otherwise. Therefore, any purported assignment by the Releasors, Taylor Eisenhauer or any Contingent Payee shall be void and invalid; the assignee shall acquire no rights; and the nonassigning party shall not recognize any such purported assignment. 16. Each party hereto shall bear all attorney's fees, expenses and costs arising from the actions of its own counsel in connection with the Cumberland County Case, this Settlement Agreement and Release, the matters and documents referred to herein, and all related matters. 17. This Settlement Agreement and Release contains the entire agreement among the parties with regard to the matters set forth herein and shall be binding upon and inure to the benefit of the executors, administrators, personal representatives, heirs, 9 successors and assigns of each. Inconsistencies between this Settlement Agreement and Release and any other related settlement documents must be resolved prior to the initiation of the payments specified above. 18. The provisions of this Settlement and Agreement and Release shall remain confidential. The parties will not disclose any of the terms, other than to governmental taxing authorities, or to their lawyers, accountants or spouses. 19. Releasors acknowledge that they are represented by counsel, have carefully read this Settlement Agreement and Release before signing it, that the terms of this Settlement Agreement and Release have been explained by counsel, and that the terms are fully understood and voluntarily accepted. 20. This Settlement Agreement and Release is governed by the laws of the Commonwealth of Pennsylvania. 21. This Settlement Agreement and Release may be signed in counterparts. 22. All parties agree to cooperate fully and execute any supplementary documents and to take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement Agreement and Release. IN WITNESS WHEREOF, and intending to be legally bound hereby, I have executed this Settlement Agreement and Release this day of , 2003. 10 Qualified AssIgnment, Release, and Pledge Agreement Clalmant-8ecured Parly. Assignor: Asslgnee-Deblor; Annuity Issuer: Annuity (Policy No.): Effective Dale: Taylor EIsenhauer Columbia Casualty Company CNA Structured Selllemcnls, 'no. ConlM1enlal Assurance Company This Qualified Asslgnmen~ Release, and Pledge Agreement Is made and entered into by and among the parties hereto as of the ErfeclIve Date with reference 10 the foIJowfng facts: , II 1 A Claln\aill-Secullld Party has executed a settlement agreement or release dated . _ (the .SetlJement Agreement") which requires AssIgnor to make certain periodic payments to or for the benefit of Clainant-Secured Party as stated In Addendum No.1 of this Agreement (the 'Periodic Payments'), B. The parties d9$/re to effect a 'qualified assignment' Within the meaning and subject 10 the conditions of section 13O(c) of the Inlernal Revenue Code of 1986, as amended (the 'Code'). C. ~Ignee-Deblor desires 10 grant 10 Claimant- Sec;ured Party a security Inlarest 10 $:ure the liability being assumed by Assignee-Oebtor 10 make the Periodic Payments. NOW THEREFORE, In consideration of the foregoing and for other good and valuable conslderalion, the parties agree as follows: 1. Subject to qualification under section 130(c) of the Code, Assignor hereby assigns and AssIgne&- Deblor hereby assumes all of AssigllOl"s liability to make the Periodic Payments. Assignee-Debtor assumes no liability to make any other paymenl Claimant-Secured Party hereby accepts and consents to the assignment by Assignor and the assumption by Assignee-Oebtor of the liability to make the Periodic Payments, and upon the Effective Dale Clalmant-Sccured Party releases Assignor from all liability to make the Periodic Payments. 2. The Periodic Payments constilule damages on account of P8f'SOn8llnjury or sickness In a case Involving physical Injury or physical sickness within the ~ of sections 104(a) and 130(c) ~ the Code. : : 3. AssIgnee-Debtor's liability 10 make the Periodic Payments Is no greater than that of AssIgnor as delennlned imrnedialely prior to this Agreement None of lhe PeriodIc Payments may be acceleraled, deferred, lnaeased or decreased, anticipated, sold, assigned, Pledged, or encumbered by Clalmant-Secured Party. 4. The obligation assumed by Asslgnee-Oeblor to make each aJlP/lCable Periodic Payment shall be fulty discharged upon the mailing of a valld cI1eck or wire tra.'sfer of funds on or before the due date for SU:Ch Periodic Payment to the addreSs of reconl spec;qed by Clalmant-Secullld Party if S/JCh c:heck Is dUlY negotiated or such wire transferred funds are duly received, 5. ThIs Agreement shall be lJOVCmed by and inleipreted In accordance with the laws of the Slate of Illinois (wtthout giving effect to the cI1oIce- of-raw rules lhereol). 6. Asslgnee-Oeblor may fund lhe Periodic Payments by PUrchasing the Annuity from Annuity Issuer to 5elVe as a "qualifled fundIng asser wflh/n the meaning of section 13O(d) of the Code. All righls of ownership and control of the Annuity shall be and remaIn vested in Assignee-Debtor except as provided In paragraphs 11 and 12 oflhls Agreemenl 7. Assignec-Debtor may have Annuity Issuer send paymenls from the Annuity directly to the payee(s) specified in Addendum No.1. SUch direction of paymentahall be solely ror Asslgnoo-Debtof's the Annully to ClaJmant Secured PaIly upon convonlenoo and shall not JlIllVIde oxecu1lon or lhJs Aoreemenland receIpt by ClaIrnant~red Party or any payee with any AssIgnee Debtor or the Annuity Irom Annuity rfghts 01 Dwnershlp or control over the Annuity or Issuer. against Annuity /llIUCl'. 12. Assignee-Debtor shall have all rfghts olOWl'l8nlhlp 8. Asslgnae-Oobtof's liability 10 make the Periodic and control In II)e Annuity, Including the rfght to Poymonts shall oontlnuo wlthout diminution receive and retain aU benefits under tho Annuity, regardlo$a or any banJuuptcy or Insolvency 01 which are not Inconsistent with the security Inlerest AssIgnor. gronled under paragraph 11, and CIalmant- Secured PaIly shaU have no rfght lD antlclpato, 9. In lite avent lhat lite Selllement Agrccmentls sel~ assign" pledge, encumber, or otherwise declared lennlnaled by a court of competent llXerQse any rfght with respect 10 the Annuity, 80 Jurisdiction, the parties shall act In accordance with long as Asslgnee-llebtor has nol failed duo 10 the orcIenl 01 tha court; JlfOVided howo\lel' VIal Insolvency or bankruptcy to make any 01 lite nolhi'lg In lhls paragraph shall preclUde a party to Pel10dic Payments. " such a failure occura and Is this Agreement from appealing any Order Dr continuing, Clalmant.secured Party shall have all Judgmenl 01 a court. In the event thaI section or the rfghts and remedies 01 a secured party 130(0) 01 the Code has not been satisfied, (i) the under the law then In ellect In the Slato or Inlnols. assigMlent by Asslgnor to Assignee-Debtor 01 the The Jlnnulty will ooar the rollowlng legend: IIabl1Ity to make lite Periodic Paymen,ls 10 13, Clalmant~rec! PaIly desc:ribcd ill' paragraph 1 I orlhis Agreement'shall be of no lorce and effect, NOnCE (N) lite Asslgnee-Debtor shall be acting in the transaction as lite agent 01 the Assignor and the 'This annuity contract has been delivered to the Annuity shall be owned by AssIgnor which will posses.o;ion or Taylor Eisenhauer lor lite sole continue to havllllte liability to make the Periodic purpose or P8rfeclJng a lien and security interest of Payments to Clalmant-5ecured Party, (iii) such person in Ihis contract. Assignee-Debtor shall have no liability to make any Taylor Fosenhauer is not the owner or, and has no Periodic Payments to Claimanl-$eCUred Party, and ownership righls In, this conlract and may not (Iv) the parties hereto agree to cooperate in taking anticipate, sell, assign, pledge, encumber, or such actions as are reasonably necessary Dr ollterwlse use this conlract as any fonn or appropriate to achieve the foregoing. collateral. Please contact lite Issuer of this contract for further infonnation.' 10. This Agreement shall be binding upon the respective representatives, heirs, successors and 14. Assign~blor makes no representations with assigns of lite parties hereto and upon any person respect to ~ consequences of this Agreerpent or entity lliat may assert any right hereund~ or 10 or the adequ of lhe security Interest created any of the Periodic Paymenls. hereby. 11. Assignee-Debtor hereby pledges and grants to 15. Any notice to a party hereunder shall be in writing CIalmanl.secured Party a lien on and securitl and shall be deemed to have been given when Interest In all of Assignee-Debtor's rlgh~ title, and maRed to the par1y's address of record, interest in the Annuity and all paymenls there from In order to secure lite obligation of Asslgnee-Debtor lD make the Periodic Paymcnls, Asslgnee-Debtor and Claimant-5ecured Party shall notify Annuity Issuer 01 the lien created under this Agreement, and Assignee-Oebtor shall deliver 3. As a result, the instant case was initiatcd hy I'l1Iilllifls. allcging that Taylor's injurics wcre caused by defccts in the Schwinn cxcreise hieycle. and milking claim against Schwinn Cycles and Fitncss, Ine, and Nauti-l.is. Inc. tld/h/a Ilushcy's Cycling and Filness Ilcadquarters and tld!h!a Bushey's Schwinn Cycling. Inc, 4. I'laintilTs' theories of Ihlbility includcd causes of action lor strict product liability and for negligence in the fabrication and distrihution of a foreseellhly harmful product. 5. Both party Defendants asserted, in defense of this claim. that the pfOduct was not defective, and that in any evcnt they did not manufacture, distribute or sell thc pfOduct, butlhat predecessor corporations to which they were not successors were responsible. 6. As a result, the parties Defendant took the position that they were notliablc to thc Plaintiffs, 7. The Defendants did join, as additional Defendants. Taylor Eisenhauer's parcnts, George and Debra Eiser.hauer, and his grandparents, Edward Eisenhauer and Francis Eisenhaucr on theories of negligence for allowing Taylor unsupervised access to a foreseeably dangerous piece of cxcrcisc equipmcnt 8. Suil was initiatcd by Complaint in April of 1999, and the case's many issucs completely litigated IhfOugh written diseovcry, depositions, and ultimately the production of PlaintifTs' expert reports. 9. In a Case Management Order datcd Fcbmary 23,2001, thc Honorable Kcvin Hcss ordered that discovery be complctcd by Junc 30.2001, that dispositive motions be liIed by July 31, 2001, and that thc mattcr be tentatively set lor trial commcncing Novcmbcr 5. 200 I. 2670.J5.11J1\1~I\RT 2 IX. The mediator was presented with a report from Taylor's doctor. Randy Houck. M.D.. dated August 13, 199X, 19. In this report, Dr. Ilouek indieutes thut the loss of the small ullll ring lingers on the right hand, both umpututed at the I'll' joints, lmnslates to fi.lurteen (14%) percent impairment of the upper extremity or eight (8%) percent impuirment of the whole person, 20. A copy of Dr. I-louck's rcport is attached hereto us Exhibit "A" und recent photogmphs ofTuylor's hund ure attuched hereto as Exhibit "B." 21. Tuylor has been able to function normally in school and with outside uctivities, although the purtial loss of the fourth und fifth fingers docs impose some limitutions upon activity. 22. On or about Junuary 31. 1996, Plaintiffs George and Debra Eisenhuuer had enlered into a Power of Attorney and Fee Agreement with Angino & Rovner, P.C., a copy of which is attached hereto has Exhibit "c." 23. Pursuant to the Agreement, Angino & Rovner, P.C. would be entitled to u forty (40%) percent fee lor a settlement "shortly before trial and after the case had been lotally prepared. " 24. Pluintiffs' counsel had completed pre-trial activity in this case and it was ready to be listed for trial once the stay was lifted, and the Court had evaluated Nauli-Lis' outstanding motion. 25, Pursuant to the Fce Agreement, Angino & Rovner IS also entitled to reimbursement of litigation relatcd costs. 26. A printout of counsel Iitigution costs is attached hcrcto as Exhibit "D," and total $ 10,207.24. 2670.JS.IIJ:>'IMIRT 4 27. I (owcvcr. Occausc Ihc l'laintilr is a minor. Angino & Rovncr will rcducc ils fcc by $6.707.24.lcaving $70.000. cvcn. availahlc lilr thc minor Plaintiffs bcnclil. 28, As part of thc proposcd scl1lCl11cnt. thc Dclendants Imvc agrccd to purchasc a structurcd annuity lilr laylor's hcnclil worlh $70.000. A copy of thc proposcd annuity is aUachcd hcrcto as Exhibit "E." 29. That annuity guarantccs lilllr cqual paymcnts. in thc U1nount of $26.743.60. commcncing whcn Taylor rcachcs thc agc of22. and continuing for four consccutivc ycars. 30. Thc total projcctcd bcnclit is $106.974.40. 31. The annuity issucr is Conlinental Assurance Company. and the assignment company lor thc quotation is CNA Structurcd SCl1lcments. Inc. 32. George and Debra Eisenhaucr rcquest that the Court approve seulement on this structured annuity basis. 33. Additionally. the Defendants have requcsted that Plaintiffs sign a release of liability, and thcn discontinue the instant action, and Plainliffs request permission to execute the relevant documents. WHEREFORE. the Plaintiffs requcst that the Court issue an ordcr: (a) approving seulement in lhe amount of $122,500; (b) approving payment of counsel fees and reimbursemcnt of litigation costs to Angino & Rovner, P,C. in the amount 01'$52.500: (c) approve the purchase of an annuity with the remaining $70,000 lor the benelit of Taylor Eisenhaucr. pursuant to the annuity bcnelit quote auachcd to the Petition; 2670.'5.IVMt\.I\ln 5 ~~VI~,),... Ir-,....,"l'... .'.. , ~ EXHIBIT A . ......... _.".-< '*~.....f". ~ , \ ! I ~ I , ;';- "- . ~ \ II ( t . {.. " .--.. ," . -:l..-,'i ," I..,-~...... ",~.~" '"'.... ..~.., ,.~ 'l> . ","" T a;.'1' , ,,;\'~,.' " D:: o ..J > ~ D:: o ..J > ~ ~ .. . D:: o ..J > ~ D:: o ..J > ~ POWlA OF A"'ORN~ ANiJ FEE AGR~~M~NT Iv lignin; thIa A;mll\lnt, I Iw.llCIcnowlldg. tNt I Iw.1 hive lIllI.g.d the IIw firm of Anglno I RoVlllr, P.C., to repruent me lu.1 uncI.r 1hI fGlowlng t.nTlland condltlolll: 1. AnQIIlO . RoYTllr, P.C, IIIIY on my lour! behl" llcur. IIIIdICl!, work and oth.r IImIIIr racord., conduct en ~ltIon, negotlat., and "F'lCfI"'Y Itar1M Ig.11\I1 InYOM FIIpOllllbl. for my (ourllnjurll. end 101111 with rtIpICt to t:",s "oj: .l'......S f:..~ur - p~ c;..ltt . with fuD power IIId .uthorlty to ,ppllr on be"''' of 1hI undIralgned In Iny Court of rtcord or In eny Idmlnlltretlv. or oth.r proClldlng, to do .nd perfonn an end IYIty act and thing whlt.o.ver thet mlY be requl.lt. and 1IICI...ry to be done In COM.ctlon with thI above oIIlm a. fully a. 1hI uncI.relgned might or could do If perlOllllly prUtnt; her.by ratifying and confIrrnIng an that MId anoMtyt """ IIwfully do or QUlll0 be done therein by Y1nue of thII pow.r of attollllY, . 2. I lwellQrH to PlY Anglno . RoVlllr,P.C., eny out-of.pocklt 'lCpIfIIlI they Incur to llcur. record., .xptrtl, etc., ~UI a contlng.nt fft that II totally depend.nt upon 1hI1r obtaining monle. for me lUll II fonow.: AnDJnD It Rovner. P.. C. M~/U.) .. SanIImInt prior to IW1Ing .uft b. , lanl.m.nt fonowlng lult but prior 10 trill or arbltretlon c. Settlement or verdIct It trill or Irbltr.tlon, Iher trI.I, arbitration, or appe.l. or Ihonly beforl trial and aher the Clle hi, been totllly preplred d. If no-flult recovery or non-monetlry benefit. ReA (.500); NJR ,.450): other. '.400) per hour but not to exceed 40 % of the 10t.1 recovery of V11lue of benefit 30% 70% 35% 85% 40% 60% Settlement or VIIrdlct If for .ny raalon'l (we) negotllle directly or ,"gege other counsel to represent me (UI) f. Other cue. .. 20% 80% 3. In 1ha event that any aettlement Is mlde on I I1nIctured or deferred payment ba.Is, anomeya lhall be entitled to receive their percentlge based on the prllenl velue of the Itructured Imlement, " p.ld II I lump aum It thllIme of aettlement. I (wellllrH not to HttIe or di.CIIIS .ettlement of MV lourl cell without the written consent of Angtno . Rovner, P.C. ' 'By IIgnlng thIl Agreement, this J I d.y of ~"'n, ,'9'&:,1 (we).cknowledge tltIt I (w.) hlvl IUd, understood, and receIved I copy of lime and Illr.. wltiiTltIlIlT111 Ind COndltlolll. _llPAlj' _tL t,~,-L . ISEAU C\t"D. r:; . <:: M.J,..",-",- (SEAU Angina' aovner, '.C. n C""IlC'C'OUJITIIfO IWQIIrnR .. 'IIIA1ZD. 10/17/2001 rILl tftIItMA......... .... "04' ,..., I CLI&Ift'.................1 DAD I. orrlC&.........1 TYPI or CAlI...........1 IIIDQI1IJl, lIJlIUU ,/I alORGI PO. UrLOI. DKnNDUT1............., IClnftIOl CORPORATICII A1"I'OIUfIY 111I cuaa....... JKM f'ORIlUDD..............1 AMDRr:W IIID.LIY, 11OU11lI7 UJ'KJtRAL...............1 IPICIAL 1IO'n(.)........1 rORWARDER'. FBI _ 2U ---------------------------------------------------------------------------------------------------- ... nu:: EXPINSES ... DESCRIPTION DATIl QUANTITY UlIIT/PIUCK Al<<>1lHT ,....,. 'AX CllARGl8 (PER PMB) 4/27/U" H.OO 1.00 14.00 rAX CKARGl8 (PIR PAGB) 2/16/2000 4.00 1.00 4.00 rAX CBARG!8 (PER. PAGB) 2/U/2000 2.00 1.00 2.00 'AX CBAR.GES (PER. PAGE) 5/10/2000 c.oo 1.00 4.00 'AX CBARG!B (PER PAGE) 7/24/2000 3.00 1.00 3.00 'AX CBA.R.GlS (PER PAGE) 3/01/2001 3.00 1.00 3.00 'AX CBARGlS (PER. PAGE) 3/02/2001 3.00 1.00 3.00 'AX CIL\RGIS (PER. PAGE) 3/08/2001 1.00 1.00 1.00 'AX CBARG!S IPER. PAGE) '/20/2001 2.00 1.00 2.00 PAX CBARGBS (PER PAGB) 8130/2002 1.00 1.00 1.00 'AX CHARGES (PER. PAGB) 8/07/2003 20.00 1.00 20.00 FAX CHARGl8 (PER PAGE) 8/13/2003 12.00 1.00 12.00 PAX CHARGES (PER. PAGE) 51/18/2003 2.00 1.00 2.00 'AX CBARG!S (PER PAGZ) 9/25/2003 2.00 1.00 2.00 FAX CHARGES (PER. PAGE) 9/2"2003 2.00 1.00 2.00 PAX CBARC3S (PIR. PAGE) 10/051/2003 2.00 1.00 2.00 ------------ EXPEND 'l'YPB 'l'OTAL, 'AX CHARGKS (PER PAG!) 77.00 .. IHVES'I'IGA:t'ION TIMB EXPENSE 2105119" .50 70.00 35.00 TJlI 1NVJ!:S'l'.I~ION 'lIMB EXPENSB 3/12/1996 .25 70.00 17.50 TJ. INVES'l'.IGA:t'ION TIKI EXPENSB 5/20/1997 .25 70.00 17.50 TJ. IRVBS'l'IG.U'IOH TIM! BXPENSB 4/05/1"9 2.50 70.00 175.00 NAB 1NVES'I'IG.A:l'IOH 'rIMB BXPENSE 12/27/1999 .50 70.00 35.00 NAB INVBS'l'IGAT10N T1MB EXPENSB 12/28/1999 .75 70.00 52.50 NAB ------------ BXPENSB 'l'IPE wrALl INVESTIGATION TIKI EXPENSE 332.50 D. LIDLB - EXPENSES 512011'" 18.72 A. SIMMERS - EXPENSES 12/09119915 .50 AAtlno . ~.r, '.e. .. (UII~HMI II.lQt.fta .. rlLa ~............. "0" '1IIAa&D1 10/17/1001 '&aI. . a.r..,.................. .r'DIAUIa, (8)AQI rea 'fAYLClII ............................................................--...................................... OCWCIIII'D. llUCl . WlITLlW COMPlII'D. 1&.Ut1 . WlITLlW COICP~ .&Mel . WUTLlW I. lOU.a . &IP&IIIU WlDUD COPl. N. .ll"lI:a' . KUDla Oft . DPIII8U U'lW ra'/PUaLICArlOlll/Y1U .nuc . un.a IDDU 'l'D1 'ZOTAL. 11IYDT1GArJOII I..au LOIIO DlftlJIa LONa Dl''VoIIa IDNa Dlnuca LONa DI'DNCI LOIIO Dlll'Volla LONO DlanHCl IDDU T'DI '1'O'tl1.1 LOIIG DlftAJlQ P8arocOPlIS PllO'l'OCOPIZ8 P80'I'0C0PIU IUDD 'l'D1 'l"OtAL, PBO'l'OCOPIIS POST_ POST_ POST_ POll'rAllZ POST_ POST_ POST_ POS'l'AG1 IIPDSI 'l'I'P1 'l"Ot.\L1 P08'lAG:1 UPI UPS no EXPRESS UPS UPS IXPD'm 'nP1 'l'O'rAL1 PUROLA1'OR. 1/11/1"1 1/0'/UtI Jllt/l"l Sln/un 1/01111" U!2l/ltn 2/0'/2000 2/1S/2000 J/U/UOI c/lO/n" II/2s/nn 12!2s/nn 2/25/2000 3/13/2001 1010'/2001 10/0'/2001 10/0'/2001 10/0'/2001 3/03/1U8 5/21/19U 1/2'/2000 6/05/2000 1/2212001 4/18/2001 8/1312001 10/0ll/2003 12/21/19U 2/2'/2000 9/06/2000 7/17/2001 8/21/2002 41'.00 172.00 3,771.00 UI.II 1I.n IS.IO I.IS J.20 14.J2 '0.00 25.00 11.10 ....----- nc.u . 5.14 '.tI 1.00 3." I.CS 5.00 --..-..-- 23.33 . .2' 12'.75 .2' 43.00 .2' 'U.75 -.----.-.. 1,112.50 3.U .33 .33 .33 .34 .34 .34 US.t5 -----..---- 154.80 '.75 5.87 U.86 62.lt 14.11 --------- 136.78 . ............ SUB-'I'O'I'AL 2,311.34 .. ---------------------------------------------------------------------------------------------------- DESCRIPTION ... CHECK EXPENSES ... DATE CBECX' AMOUNT btLao , Ion.r, P.C'. .. CIoIalACCDUIITI. ItMIIfta .. ''',AAID. 10/1711001 'Ita 1fUHBD............. 'IOC' ..... J a.tllf'l'.................1 II'DDUD, ~ ro.. nn.cc -----.--...----....-....-..--------....-------..--....------...-----..-..----------- o7ODI, DALY , COtDltD' UIO('. 2121111" aon 10.00 IllALft INJ'ORMTIC* IDYlCl. 2121111.. 11014 n.lI UMJVD.JITY PIY.ICIM. 2121/U" unl 7.50 IICC 2/2I/U" Un? 2~.t1 DCIUGI PWI 3/11/11" una 225.00 PIOJ'I 01 CUMDRLAMD comrrr 3/J0/lft. nu. s..,o lIllIUn' fir C'11VW.W"1m OOUIITY 3/30/un nu, 100.00 CAPl'lOL con ID.VICI 1/02/1'" UU, 12.72 Kl1l'I PAINrDIG, laIC. '/lS/ln, 400.. 11.12 I"tAItZY .. HOIUtOM' 12/20/1n, uus soo.oo RDHJALDZ, lIAVIDSOfI' , USOC rile' Ul22/1tU UU3 1,000.00 CAPITOL con IDVIO 1/05/2000 .1511 12.72 UCOJmD SERVICES, lit'. 1/U/2000 4111. U.2' """= 2/02/2000 41'tl n.oo RZLlAIIU copy 8ZJtVICI 2/17/2000 4224' n..n ROYAL COUJt% UPOR1'1IfQ 4/12/2000 4300' 525.10 con CIHDJl, IRe. 7/18/2000 UU) ,,,.U CZH'l'RAL P!1OISTLVAltIA COUR:l' '/13/2000 4'205 130.20 KLP RBI'O~DlG, INC. 1/10/2001 UUl 115.21 CENTRAL PA COUJl:t' REPOR:rlNa 5/JO/2001 48U3 71." BUGlIII,ALBRIGB'l',J'OtIl'I " HADLB 7118/2001 U20t 4U.15 ROHlJALDI, DAVIDSOtf " ASSOC INC 8/15/2001 usn 707.50 CORN!:RS'1'Otf'B GRAPHICS , copy '/U/2001 UU4 3.11 ROHUALDI, DAVIDSOII " ASSOC INC '/U/2001 UU5 1,302.'0 ROKUALDI, DAVIDSON" ASSOC lHe 10/03/2001 50181 10.00 ANDERSON ASSOCIM'ZS PSYCBOLOCY 1/0'/2002 51230 '00.00 RUBIK ORmOPEDIC BORGERt, =. 10/0B/2003 58361 21.17 DODCLAB IAW OP'l'ICB 10/08/2003 5B3U 350.00 DOUGLAS IAW onIO 10/15/2003 suo 875.00 DOUGLAS LAW onICB 10/15/2003 59312 350.00.. ROMt1ALDI, CAVItlSOH " ASSOC lHe 10/17/2003 58524 32.68 ---.---- SUB_TOl'AL 1,955.60 .. ------ 'I'O'tAL EXPENSES 10,266.94 ... ------...-........-.....---...--------....------......------..-------...........---------------.....-------------------..---- ..... RECEIP'l'S ........... SOtlRCB PRO'l'JI OP ClDlB. co. SBD. OP CUHB. co. ....ON REl'. .. CASH RTN. IlA1'B 4/15/1999 4/15/1999 AMOONr 9.00 50.70 RECEIPTS'rO'rAL 59.70 .... -...----.....--.......-----..--------..--------------------...--------..-..-..---------..-----......--------------.....-....... . O~ING INVOICES. CUSTOMER NAJom INV' INV IlA1'B $BILLED $PAID IDI1ll ...........-. OU'I'STANDING INVOICE 'l'O'I'AL .O!) ..... >- <'> ?: ~;: ..ri .,. l':~': (~ ~.. ~-, ., ~ LoJ , ; >." ;:! ?' L- ,. -' :1: . "'-. >. , ,"",\ .OJ " , ,. t : ~) . ,f) (~; , ;~ ..-..,. l, , , ,.. .I (a i c:'. , 1:1.. r~ ::i: 'L- (" :;:;) {.J J U I ~ i.~. ) 'LI"Z c: 7 ) '2/J -.. TA YLOR EISENHAUER, a minor. by GEORGE W. EISENHAUER and DEBRA A. EISENHAUER. his parcnts and natural guardians, Plaintiffs IN TIlE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYI.V ANI A vs. 99-1930 CIVIL CIVIL ACTION -LAW SCHWINN CYCLING AND FITNESS, INC. and NAUTI-LlS, INC., TID/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and tld/b/a BUSHEY'S SCHWINN CYCf.ERY : INC., Defendants vs. EDWARD EISENHAUER and FRANCIS EISENHAUER, Additional Defendants JURY TRIAL DEMANDED IN RE: APPROVAL OF SEITLEMENT AND PROPOSED DISTRIBUTION OF PROCEEDS ORDER S. AND NOW, this day of November, 2003, hearing hereon is set for Friday, December 5, 2003, at 9:30 a.m. in Courtroom Number 4, Cumberland County Courthouse, Carlisle, P A, for the primary purpose of inquiring concerning expenses and counscl fees. See Gilmore v. Dondero, 582 A.2d 1106 (Pa,Super. 1990). BY THE COURT, r\~ LX ,,-~*-o.:> .~ \"\ \P ~;I'~J. TAYLOR EISENHAUER. ^ Minor. By GEORGE W. EISENHAUER and DEBRA A. EISENHAUER, his Parents and Natural Guardians, Plaintiffs v. SCHWINN CYCLING AND ITINESS, INC.. and NAUTI-LlS. INC. TID/B/A BUSHEY'S CYCLING AND FITNESS HEADQUARTERS and TID/B/A BUSHEY'S SCHWINN CYCLERY. INC.. Defendants v. EDWARD EISENHAUER and FRANCIS EISENHAUER, Additional Defendants IN TIlE COURT OF COMMON I'LEAS CUMBERLAND COUNTY. PENNSYLVANIA ~!,,~ ( i I i_ /930 NO. 99-HfJ Civil CIVIL ACTION - LAW JURY TRIAL DEMANDED PRAECIPE TO DISCONTINUE TO THE PROTHONOTARY: Please mark the above-captioned case satisfied, settled and discontinued with prejudice as to all claims. Date: May 4. 2004 Respectfully submitted. ANGINO & ROVNER, P.C. 1', ..,' -;A on :P7d..Il JOS~~J\~ Melillo. Esquire Attorney I.D. No. 26211 4503 North Front Street Harrisburg. PA 17110 (717) 238-6791 Attorney for Plaintiffs CERTIFICATE OF SERVICE AND NOW, this 4'h day of May, 2004, I, Robbie Tejehman Dunlap, an employee of the law linn of Angino & Rovner, P.C., hereby certify that a tnle and correct copy of the foregoing Praecipe to Discontinue was sent to the following counsel of record by placing same in the first class, United States mail, postage prepaid, at Harrisburg, Pennsylvania, addressed as follows: Michael E. Sacks, Esquire Michele Rovinsky, Esquire Hamburg & Golden, P.C. 1601 Market Street Philadelphia,PA 19103-1443 Charles B. Calkins, Esquire Griffith, Strickler, Lennan, Solymos & Calkins 110 South Northern Way York,PA 17402 Thomas J. Williams, Esquire Martson Deardorff Williams & Otto Ten East High Streel Carlisle, P A 17013 Andrew C. Lehman, Esquire Nealon & Gover 2411 North Front Street P.O. Box 865 Harrisburg,PA 17108-0865 ~~ ,(: )h" 'q/li/~ Ro bie Tejchman bunlap r::; 0 '- t,":, [, ~.. ,. (..~ ..:r ~s ~~: .-- r..(, ".. ..1....-. - ~-j ;t)~-= - (.) ,n , ; <,-,,:; I LLj''- ';"--UJ ,- .' -' u...-r :i.: '\.- r-= ..... "". ,J H. '-', 0 "-', u C'-.o