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HomeMy WebLinkAbout99-03479 (2)MORGAN PRODUCTS LTD., Plaintiff VS. FINITE MATTERS LTD., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99- 3`179 CIVIL TERM JURY TRIAL DEMANDED 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 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 A 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 OUR WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 Telephone: (717) 249-3166 MURGAN PRODUCTS LTD., ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff, vs. ) FINITE MATTERS LTD., ) NO 9 47 CIVIL TERM Defendant. JURY TRIAL DEMANDED COMPLAINT Plaintiff Morgan Products Ltd., by its attorneys, states as its complaint against defendant Finite Matters Ltd. as follows: I. Plaintiff Morgan Products Ltd. ("Morgan") is a domestic corporation which has its principal place of business in Virginia. The transactions and conduct described herein were with Morgan's sales and distribution division, Morgan Distribution, which is located at 303 Mulberry Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055. Morgan is in the business of the wholesale sale of doors, windows and other millwork to the residential and commercial building industry. 2. Defendant Finite Matters Ltd. ("Finite") is a domestic corporation with its principal place of business in Virginia. Finite is located at 2604 Fairground Road, Goochland, Virginia 23603-3101. Finite's president and registered agent, Benjamin Jefferson Slone III, is also located at 2604 Fairground Road, Goochland, Virginia 23603-3101. Finite is in the business of developing information management software and providing consulting services to commercial businesses such as Morgan. 3. Starting in the spring of 1997, Morgan entered into discussions with Finite for the design, development, and implementation of a computer based marketing and information publishing system for Morgan which would include a computerized product catalog, CD- rom and World Wide Web website. 4. Finite represented to Morgan that Finite had the capability and resources to design, develop, and implement a computer based marketing and information publishing system for Morgan. 5. Finite also represented to Morgan that Finite possessed the experience, expertise and knowledge to complete the design, development, and implementation of a computer based marketing and information publishing system for Morgan in a timely and cost efficient manner. 6. Morgan did not have a computer based marketing and information system when it began its discussions with Finite, and had little or no knowledge or expertise about these systems. 7. In the summer of 1997, Finite presented Morgan with an offer to design, develop, and present a prototype sample of the computer based marketing and information system ("prototype sample"). 8. Morgan accepted Finite's offer to create the prototype sample. 9. In January 1998, Finite completed the prototype sample. 10. Upon the completion of the prototype, Finite gave a presentation of how the computer based marketing and information system would work at Morgan's 1998 national sales conference in Tampa, Florida. 11. Finite invoiced, and Morgan paid, a total of $29,229 for the design, development, and presentation of the prototype sample. 2 12. Following Finite's presentation of the prototype sample and a further presentation of the prototype sample to Morgan at Morgan's offices in Mechanicsburg, Morgan requested and Finite offered to provide a timetable and quote of the cost to design, develop, and implement the computer based marketing and information publishing system for Morgan which was demonstrated in Tampa at Morgan's national sales conference. 13. On April 12, 1998, Finite sent to Morgan in Mechanicsburg the quote attached hereto as Exhibit A which set forth in detail the cost and promised timetable to develop and implement the complete computer based marketing and information system. Pursuant to this quote Finite agreed to complete the system, including project formulation, project design, database creation, catalog publishing, CD-ROM application, World Wide Website and interface with certain of Morgan's existing computer programs and systems for a total cost of $455,134.00. Finite also represented in the same document that it would complete the project on or before December 14, 1998, pursuant to a detailed timetable provided as part of the quote. 14. In undertaking the project on behalf of Morgan, Finite knew that Morgan would be relying almost exclusively on Finite's superior knowledge, experience and expertise and was expecting Finite to be completely honest and forthright in its dealings with Morgan. Morgan at all times relied upon Finite's representations regarding its experience, capabilities and integrity in its dealing with Finite. 15. Between April, 1998 and November, 1998, Finite undertook to complete the computerized marketing and information system for Morgan. During this same time period Finite began to suggest to Morgan that it needed more or additional computer enhancements for its marketing and information systems. Morgan considered these proposals but never authorized Finite to do any more than that which was presented as part of the original prototype sample Finite had developed and demonstrated in January, 1998. 16, Beginning in or about November, 1998, Morgan became extremely concerned about the progress and cost of the project because to that point nothing appeared to have been accomplished and Finite had begun to invoice Morgan for "extra" work which had never been authorized or approved. 17. In November, 1998, Morgan refused to pay any further invoices submitted by Finite and insisted that Finite provide it with a definitive date for the completion of the project and the exact cost to complete the project. 18. Finite failed to provide the requested time and cost information and instead continued to work on the project and continued to submit invoices to Morgan although it was not being paid. 19. The project was not completed by December 14, 1998 as Finite had promised, and by December, 1998 it was obvious to Morgan that Finite could not complete the project in any reasonable amount of time or for cost anywhere near the cost initially quoted. Morgan continued to insist on a firm date for the completion of the project and an exact cost but Finite failed and refused to provide them. 20. By February, 1999, after numerous attempts to obtain a firm date and cost for the completion of the project, Morgan instructed Finite to do no further work. By that time, Finite had submitted invoices totaling over $720,000.00 for a project that was nowhere near completion and for which Morgan had already paid more than $280,000.00. 21. To date Morgan has received no work product of any sort from Finite and has paid 4 over $280,000.00 for absolutely nothing useable or in use in Morgan's business, and no product covered in the April, 1998 proposal has been delivered to Morgan. COUNT I Common Law Fraud 22. Morgan incorporates and realleges paragraphs 1 through 21 above as paragraph 22 of this Count 1. 23. In order to induce Morgan to proceed with the computer based marketing and 1 information system project described above, Finite represented to Morgan that: a. Finite had the capability and resources to design, develop, and implement a computer based marketing and information publishing system for Morgan; b. Finite possessed the experience, expertise and knowledge to complete the design, development, and implementation of the computer based marketing and information publishing system for Morgan in a timely and cost efficient manner; and c. Finite possessed the ability to understand Morgan's needs and requirements for a computer based marketing and information publishing system, and that Finite had the ability to apply that knowledge and understanding to design, develop, and implement a system in a timely manner and cost effective manner that would satisfy Morgan's needs. 24. Finite's representations to Morgan were false and misleading, and Finite knew that its representations were false and misleading when made. 25. Morgan, a wholesaler of doors, windows and other millwork, was not experienced 5 and had no expertise in developing computer based marketing and information systems and had a right to rely on Finite's representations and it was reasonable for it to do so. 26. Finite, in a classic "bait and switch" maneuver, made its false representations to Morgan with the intent to induce Morgan to engage Finite's services and undertake the computer based marketing and information system project knowing that, once Morgan had expended considerable funds toward the completion of the project, Finite could take advantage of Morgan's inexperience and naivete in the area and hold Morgan hostage on a partially completed project and demand from Morgan considerably more money to complete the project. 27. As a direct and proximate consequence of Finite's conduct Morgan has been damaged in that it has paid over $280,000.00 for a computer based marketing and information system and has received nothing useable or in use in Morgan's business. In addition, Finite's failure to complete the project has delayed Morgan's publication of its price lists and has caused Morgan to lose potential business and profits. WHEREFORE, plaintiff Morgan Products Ltd. prays for the entry of a judgment in its favor and against defendant Finite Matters Ltd. for : a. actual and consequential damages in an amount not less than $280,000.00; b. lost profits; C. punitive damages; d. attorneys' fees; e. costs of suit; and f. such further or alternative relief as the Court deems just under the circumstances. COUNT 11 Breach of Contract 28. Morgan incorporates and realleges paragraphs 1 through 27 of Count I as 6 paragraph 28 of this Count II. 29. By reason of Finite's conduct described above, Finite breached its agreement to design, develop and implement a computer based marketing and information system in the time frame and for the cost represented to Morgan and Morgan has been damaged thereby. WHEREFORE, plaintiff Morgan Products Ltd. prays for the entry of a judgment in its favor and against defendant Finite Matters Ltd. for : a, actual and consequential damages in an amount not less than $280,000.00; b. lost profits; C. costs of suit; and d. such further or alternative relief as the Court deems just under the circumstances. COUNT III Recission 30. Morgan incorporates and realleges paragraphs I through 29 of Count II above as paragraph 30 of this Count III. 31. Finite made the above misrepresentations in order to induce Morgan to undertake and pay for the development of a computer based marketing and information system which Finite knew it could not produce in the time frame and for the price it quoted. 32. By reason of Finite's false representations Morgan was fraudulently induced to i undertake and pay for the development of the computer based marketing and information system I which Finite did not and never could deliver for the price and in the time frame it represented. 33. By reason of Finite's fraudulent inducement, Morgan has paid over $280,000.00 for a computer based marketing and information system which was never completed and which Morgan never received in whole or part. 7 WHEREFORE, plaintiff Morgan Products Ltd, prays for the entry of a judgment rescinding the agreement between the parties and requiring Finite to return to Morgan all monies it has paid in connection with the project to develop and implement a computer based marketing and information system, plus interest and its cost of suit. ADDAMS & RUNDLE By: / William A. Addams Supreme Court I.D. No. 06265 28 South Pitt Street P.O. Box 208 Carlisle, PA 17013 (717) 249-8300 NISEN & ELLIOTT Michael H. Moirano Robert B. Christie 200 West Adams Street Chicago, IL 606006 (312) 346-7800 8 VERIFICATION David Braun hereby verifies that the facts set forth in the foregoing Complaint are true and correct to the best of his knowledge, information and belief, and understands that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unswom falsifications. AWWA-_7 Date: - 3 - ?9 moil cxhlb:: P. JUN-03-1999 17 04 NISEN & ELLIOTT P.02/03 Morgan Distribut ion JE MIS I P Td % • mQm Ww y a hh 25.000 t7 N Marti 11 D 1 MWQ,Qo- •d Pr'•c17 I 1 I6 111 9 54,600.00 Pm •O TNltt 1 Ir•n a• N0116 0 $3.3m T•un 20220 M Whom a 6t .a0000 Project Temoll p N100 0 1 A ? ply#10004 5,0041 A mm.r + Den 6 IN06 • A JMH 0 W - Pre' N,10 rligi,\ ?.. 15 01404". Dftkzn 61 1 h 0 11 J 0 I 6a0 Pmrww" I? Awlsm • 606 t ee tt . •. n 62 IrOA T nkf•n K d A /17 T M 21 00 m1mbind Terrywo 1 Aodl?A)d • 1 T n 7! AppkWftnMC4R4WAm + o - kn I.oo 1 T••I 6 Mtn 0 mmw M t O 110jw. Do DDrd. T Mr 2s m • Pubfth 1 D • .. ... 000 r .. , JEUM >m n 00 libb/1748 Arnim =16-09 K' aar l 101 Nt 00 P am, Ox u• Ljmw d 00E ___4&M 31&WN + mom. t0'N 7 0 P 6. 1 T O O r" cmmOM 17.00 tl n0jams S&7 4Q,00 nt 56 Mlw "two DADMI 10. NwNO/W 1L41 0 sa.m.00 e n •n•r >d C?W* M ".00 a T D a 17 ao a Train If.md + m•r •+ 1 0100d coo am 1 .m 4 ji1 IN ' 17 1 0 .m m'wA a A q 6 l ?u 'n NFA rn•-err 40,0011 600d 'k. 96 01 N 0 1 r\¢."eutwiat tsw??n' as ' ry I tt S0 TM bn• 1 St Tram P?nti S-000 N Nev 0 ,400 00 I I __ Prva: A012" ?7 ft" 1 1 ., PWA DM•Y - JAN-03-1999 17:05 P.03/03 NISEN & ELLIOTT Morgan Distribution F i FICJMT? Mt1T 0.1 3c ymm Uomu 1 pmjs T"m 02 pro TNm 0.1 may 02 T 0.1 pro Ttwn 0.1 1.0 mww1A, Awl T90A1 . ae ' nrmwa6 rrops.?mM a mfr 0. Dab I Tww9dw 1 0 r Twnpw t Fm U r0.0 94 1.0 IOM /m0 0 . D0 pu ing TMUW1 b pro p 1.0 PMOW 0.t PAqW 02 • pmom t¢ ., CDPW SOM mLIMA 1. howwn w 1 00 hop to Pful mw CO 7 7 Pwo Od mN 1.0 rroprw?wnor0. Ptep'rllflwf rIq as to 0.5 NOOf?+mr t. ?mec:?pntns W4d m A suMwry h0' = - F9004 DMW . TOTAL P.03 o a T tx T h O o: r rc ct n v cn = ?ti Ca I SHERIFF'S RETURN U.S. CERTIFIED MAIL CASE NO: 1999-03479 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MORGAN PRODUCTS LTD VS. FINITE MATTERS LTD R. Thomas Kline Sheriff or Deputy Sheriff of CUMBERLAND County, Pennsylvania, who being duly sworn according to law, served the within named DEFENDANT, FINITE MATTERS LTD by United States Certified Mail postage prepaid, on the 10th _ day of June 1999 , at 8:00 HOURS, at 2604 FAIRGROUND ROAD GOOCHLAND, VA 23603-3101 a true and attested copy of the attached NOTICE AND COMPLAINT The returned receipt card was signed by SIGNATURE ILLEGIBLE on 6/17/1999. Sheriff's Costs: So answers: / Docketing 18.00 Cert. Mail 4,00 Affidavit s ice, 1 Surcharge 8.00 om ??-0 6 % 21 S 19 9 9UNDLE Sworn and subscribe o before me this ,2/ day of j.... _ (-,) _ -)ln, rotnonoT-a i r:m ar „..i . _.._ ....? ..... q' J2 q tf a IV SENDER: I also wish to receive the $ N • ComploIgitems I and0r 2lot additional services. • CompleMtlorOs 3,40, and 4b. following services (for an d • Print your narhb and address on the reverse of this form so that we can return this OXtra fee): a 1 card to you • Attach lhie fort, to the fwnl of Its mailpiece, or on the back d space does not 1. ? Addressee's Address y Z •Wrmit Reoelpf Requested' on the mailpioce below the adlcle number. into'Return 2.0 Restricted Delivery r?I E • The Serum Receipt will show to whom the article was delivered and the date Consult postmaster for fee. o delivered. _ 0 3. Article Addressed to: 4a. Article N u mber f a l d J? ?Y ¢ n Finite Matters, Ltd. 4b. Service Type 5 E 2604 Fairground Rd ? Registered Certified Goch).'and, VA 23603-3101 ? Express Mail ? Insured ? Return Receipt for Merchandise ? COD y 7. Date of Deliv "; I C, e? E o i _ 5. Received By: (Print Name) 8. Addressee's Address (Only it equested m r and lee is paid) m 6. Sign. , . (Addresseo or Ageti(n ' x z 1 Cte, zti , 22 PS Form 3811, December 1994 Ic-w 14I+-o.?ev Domestic Return Receipt , - I First-Class Mail i - UNITED STATES POSTAL SERVICE ?I I Postage 8 Fees Paid 1 I ? USPS i Permit No. G•t0 , i • Print your name address and ZIP Code in this box • i DEPARTMENT CUtdBERLP,fll; . ?? ONE COURipl1?''"p13uA;YE I', CARLISLE ' i pg 111111 1 till I i w ?ti f \FILESIDATAFILfiW ENDOCW9994.PM. "I. Crested. 07107M 02 14.57 PM Revised. 07107M 0:.)X 45 PM 9594 1 MORGAN PRODUCTS LTD., Plaintiff V. FINITE MATTERS LTD., IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-3479 CIVIL ACTION-LAW Defendant : JURY TRIAL OF TWELVE DEMANDED TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Enter the appearance of MARTSON DEARDORFF WILLIAMS & OTTO on behalf of Defendant in the above matter. Defendant hereby demands a twelve juror jury trial in the above captioned action. MARTSON DEARDORFF WILLIAMS & OTTO By ?- i v George B. Faller, J Is( I.D. No. 49813 Ten East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Defendant Dated: July 7, 1999 CERTIFICAIR OF SERVICE I, Nichole L. Myers, an authorized agent for Martson Deardorff Williams & Otto, hereby certify that a copy of the foregoing Praecipe was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: William A. Addams, Esquire ADDAMS & RUNDLE 28 South Pitt Street Carlisle, PA 17013 Michael H. Moirano, Esquire Robert B. Christie, Esquire NISEN & ELLIOTT 200 West Adams Street Chicago, IL 60606 MARTSON DEARDORFF WILLIAMS & OTTO By _ iC 6t 4 Nichole L. Myers Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: July 7, 1999 L ? C) C I alt! Fl . 51 +) u rn yr MA?RTSON?¦ODE\EAARRRDD?ORFF/FF WILLIAMS & OTTO INI'ONAIAII,IXr?? AIMN:1 Y TEN EAST HICN STREET CARLISLE, PENNSYLVANIA 17013 MORGAN PRODUCTS LTD, Plaintiff V. FINITE MATTERS LTD, Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-3479 CIVIL TERM CIVIL ACTION-LAW DEFENDANT'S ANSWER WITH NEW MATTER AND COUNTERCLAIM TO: MORGAN PRODUCTS, LTD, Plaintiff, and their attorney, WILLIAM A. ADDAMS, ESQUIRE YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER AND COUNTERCLAIM WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU. AND NOW, comes Defendant Finite Matters Ltd. ("Finite"), by and its attorneys, CHRISTIAN & BARTON, LLP and MARTSON DEARDORFF WILLIAMS & OTTO and hereby and the Complaint of Morgan Products Ltd. ("Morgan") as follows: I. Finite admits the allegations of paragraph 1 upon information and belief. Finite affirmatively states that the transactions referred to in Morgan's Complaint did not occur exclusively in Cumberland County, Pennsylvania, and further states that meetings, presentations and other transactions between Morgan and Finite occurred in places other than Cumberland County, Pennsylvania, including transactions which occurred in Virginia. 2. Finite admits the allegations of paragraph 2. 3. Finite denies the allegations of paragraph 3. Finite affirmatively states that when Morgan first contacted Finite, in March of 1997, Morgan was interested in hiring Finite to develop software for a computerized product catalog only. This initial contact led to Morgan's request, in June, 1997 that Finite demonstrate a CD-ROM it had created for another client. In August, 1997 Morgan requested that Finite develop a Prototype Project to demonstrate that Finite understood Morgan's products and software needs. Morgan agreed in advance to pay Finite for development of the Prototype Project at Finite's customary hourly rate of $125. Based upon the successful completion of the Prototype Project, in November, 1997, Morgan next requested that Finite develop additional software proposals for presentation at Morgan's sales meeting in early 1998. Morganpaid Finite at its customary $125 hourly rate for the development of these proposals. Thereafter, in April, 1998, at Morgan's request, Finite submitted to Morgan it schedule of costs totaling $454,814.00 for development of software fora catalog, a CD-ROM application and a World Wide Website. 4. Finite admits the ollegations of paragraph 4. Finite affirmatively states that Morgan independently investigated Finite's ability to design and develop software suitable for its needs by requiring Finite to develop and present a Prototype Project, and by requiring Finite's presentation at the 1998 Morgan sides meeting, before Morgan hired Finite to undertake development of software for use in Morgan's operations, 5. In response to the allegations of paragraph 5, Finite states that in April, 1998 it presented to Morgan an esifnntle ofthe costs and line required to develop acatalog, DC-ROM and World Wide Wchsitc, which was entcient and reasonable, given the scope of the project envisioned at that time. 6. Afler reasonable investigation, Finite lacks sufficient information to admit or deny the allegations of paragraph (i, and therefore denies such allegations and requires proof of the allegations. 7. h, response to the allegations of paragraph 7, Finite incorporates by reference the relevant portions of its response to paragraph 3 set forth above. 8. In response to the allegations of paragraph 8, Finite incorporates by reference the relevant portions of its response to paragraph 3 set forth above. 9. ht response to the allegations of paragraph 9, Finite incorporates by reference the relevant portions of its response to paragraph 3 set forth above. 10. In response to the allegations of paragraph 10, Finite incorporates by reference the relevant portions of its response to paragraph 3 set forth above. 11. In response to the allegations of paragraph 11, Finite incorporates by reference the relevant portions of its response to paragraph 3 set forth above. 12. In response to the allegations of paragraph 12, Finite incorporates by reference the relevant portions of its response to paragraph 3 set forth above. 13. In response to the allegations of paragraph 13, Finite admits that the documents attached as Gahibil A to the Complaint are documents Finite created and sent to Morgan, in April, 1998, relating to the estimated cost and time required for development of the software applications which Morgan was requesting at that time. Finite denies any allegations of paragraph 13 which are inconsistent with the express terms of Exhibit A. Finite affirmatively states that the catalog, CD- ROM, and World Wide Website software applications which are the subject of Exhibit A do not accurately describe the scope of the work Morgan later requested that Finite perform. Finite states that following receipt of the April, 1998 estimate, Morgan repeatedly expanded the scope of work requested of Finite, beginning in May, 1998 and continuing until October, 1998, when Morgan requested that Finite implement an Enterprise Wide software project. 14. In response to the allegations of paragraph 14, Finite admits that Morgan requested that Finite apply its experience and expertise in software development in undertaking its work for Morgan. Finite denies the allegations of paragraph 14 insofar as they state or imply that Finite was not honest in its dealings with Morgan. 15. Finite denies the allegations of the first sentence of paragraph 15 insofar as Morgan intends to allege that the project undertaken by Finite between April and November, 1998 was limited to the catalog, CD-ROM and World Wide Website envisioned in the April, 1998 estimate. Finite affirmatively states that the software development project undertaken from April through November, 1998 at Morgan's request was far more comprehensive than the project described in the April 12,1998, estimate and, in fact, involved what Morgan and Finite referred to as the "Enterprise- Wide" project, embracing all of Morgan's information systems company-wide. Finite denies the remaining allegations contained in the second and third sentences of paragraph 15. 16. After reasonable investigation, Finite lacks sufficient information to admit or deny the allegations of paragraph 16 regarding Morgan's state of mind, and therefore denies the allegations and requires proof of these allegations. Finite affirmatively states that beginning with Finite's October, 1998 invoice, Morgan stopped paying Finite's monthly or semi-monthly invoices for work. completed. When Finite inquired about payment of invoices presented in October, 1998 and thereafter, Morgan never expressed any concern about the nature, scope or cost of the work being performed, and Morgan encouraged Finite to continue working and promised payment in full when Morgan's cash flow improved. 17. In response to the allegations of paragraph 17, Finite admits that Morgan stopped paying Finite's invoices beginning with the October 15, 1998 invoice. Finite denies that Morgan refused to pay any invoice, questioned Finite's work or requested information regarding a project completion date or total costs until February 1999. In fact, Morgan encouraged Finite to continue working from October 1998 until early February, 1999, and promised full payment when Morgan's cash flow improved. 18. In response to the allegations of paragraph 18, Finite admits that it continued to work on development of software for Morgan and continued to submit invoices to Morgan after Morgan's payments ceased, in October, 1998, because Morgan requested that Finite continue working and promised full payment. In fact, in December, 1998, Finite delivered to Morgan an Oracle data base and Morgan requested that Finite begin putting Morgan data into the Oracle data base. Finite denies any remaining allegations of paragraph I S. 19. In response to the allegations ofparagraph 19, Finite states that the project envisioned by the April 12, 1998 estimate with an estimated completion date in December, 1998 was expanded by Morgan in the summerand fall of 1998, and became an Enterprise-Wide software project, which involved a vastly increased scope of work and costs. Finite denies that the project envisioned by the April 12, 1998 estimate was the project being pursued by Morgan and Finite at year-end of 1998. Finite denies any remaining allegations of paragraph 19. 20. In response to the allegations of paragraph 20, Finite admits that in mid-February, Morgan, for the first time, instructed Finite to cease work and that invoices were sent for work performed. Despite its prior agreement to pay for the work it authorized and approved, Morgan has refused payment as set forth in Finite's counterclaim. 21. Finite denies the allegations of paragraph 21 and hereby incorporates by reference the answers to paragraph 20 and the averments of Finite's counterclaim. WHEREFORE, Finite Matters, Ltd. prays for entry of judgment in the amount of 8490,044.0.3, plus pre judgment interest, and the costs of this action. 1. CountI Common Law Fraud 22. In response to the allegations of paragraph 22, Finite incorporates by reference its responses to paragraphs I through 21 above. 23. Finite denies the allegations ofparagrapli 23. To the contrary, see the allegations set forth and the avemients of Finite's counterclaim. 24. Finite denies the allegations ofparagraph 24. To the contrary, see the allegations set forth and the averments of Finite's counterclaim. 25. Finite denies the allegations of paragraph 25. To the contrary, see the allegations set forth and the averments of Finite's counterclaim. 26. Finite denies the allegations of paragraph 26. To the contrary, see the allegations set forth and the averments of Finite's counterclaim. 27. Finite denies the allegations of paragraph 27. To the contrary, seethe allegations set forth and the averments of Finite's counterclaim. WHEREFORE, Finite Matters, Ltd, prays for entry of judgment in the amount of $490,044.03, plus pre judgment interest, and the costs of this action. Count li . Breach Of Contract 28. In response to the allegations of paragraph 28, Finite incorporates by reference it's responses to paragraphs 1 through 27 above. 29. Finite denies the allegations of paragraph 29. To the contrary, see the response to paragraphs 3 and 13 through 20 which are hereby incorporated by reference. WHEREFORE, Finite Matters, Ltd. prays for entry of judgment in the amount of $490,044.03, plus pre judgment interest, and the costs of this action. Count III Recision 30. In response to the allegations of paragraph 30, Finite incorporates by reference its responses to paragraphs 1 through 29 above. j 31. Finite denies the allegations of paragraph 31. To the contrary, see the response to paragraphs 3 and 13 through 20 which are hereby incorporated by reference. 32. Finite denies the allegations of paragraph 32. 33. Finite denies the allegations of paragraph 33. WHEREFORE, Finite Matters Ltd, moves for entry of an order denying all of the relief requested by Morgan Products Ltd., dismissing the Complaint with prejudice, and awarding Finite Matters Ltd. its costs and attorneys fees incurred in defense of the Complaint. New Matter 34. The averments of paragraphs 1 through 33 of this Answer are incorporated herein by reference. 35. Plaintiffs Complaint fails to state a cause of action upon which relief can be granted. 36. Plaintiffs Complaint fails to state a cause of action for attorneys fees. 37. Plaintiffs Complaint is barred by the doctrine of estoppel. 38. Plaintiff s Complaint is barred by impossibility of performance due to the actions of Plaintiff. 39. Plaintiffs Complaint is barred by collateral estoppel. 40. Plaintiffs Complaint is barred by res judicata. 41. Plaintiffs Complaint is barred by the statute of frauds. 42. Plaintiffs Complaint is barred by waiver. WHEREFORE, Finite Matters Ltd. moves for entry of an order denying all of the relief requested by Morgan Products Ltd., dismissing the Complaint with prejudice, and awarding Finite Matters Ltd. its costs and attorneys fees incurred in defense of the Complaint. Counterclaim 43. Finite Matters, Ltd. ("FML") is a Virginia corporation with its principal offices located in Goochland County. FML specializes in the design and development of software publishing applications for businesses. 44. Upon information and belief, Morgan Products, Ltd. is a Delaware corporation with its principal office in Williamsburg, Virginia. Morgan manufactures and distributes fixtures and other construction materials to contractors and retailers. 45. Beginning in March, 1997, and continuing for several months thereafter, representatives of Morgan and FML engaged in discussions, via meetings, telephone conferences and correspondence, regarding software development services which FML could provide to Morgan in order to enhance Morgan's marketing and distribution system. 46. On or about June 5, 1997, FML gave Morgan a field demonstration of a CD-ROM it had created for another client, Hubbell Lighting, Inc. ("Hubbell"). Following the demonstration, Morgan indicated that it wanted FML to perform software development to aide Morgan's marketing efforts. 47. At a meeting on or about August 7, 1997, Morgan requested that FML develop a prototype project designed to demonstrate FML's understanding of Morgan's products and FML's ability to develop a system tailored to those products. Shortly thereafter, in accordance with Morgan's request, FML submitted a proposal for a "Prototype Project." FML provided a cost estimate that the Prototype Project would not exceed twenty-three thousand dollars ($23,000.00). 48. FML and Morgan continued discussions regarding the Prototype Project into September, 1997, at which point Morgan hired FML to proceed with the Prototype Project. The total amount billed for the project at FML's customary hourly rates was approximately twenty thousand dollars ($20,000.00), which Morgan paid in full. Morgan never expressed any dissatisfaction with the completed product or any dissatisfaction with the hourly rates or the course of dealing established during the Prototype Project. 49. Based on FML's successful completion of the Prototype Project, Morgan requested that FML give a presentation to Morgan's entire sales force at the 1998 annual meeting and requested that FML submit additional software development proposals to Morgan. FML billed Morgan at its customary hourly rate of $125 for the development of proposals and the presentation, which Morgan paid in full. Anticipating a continuing relationship with Morgan, FML reduced its customary hourly rates and agreed to charge Morgan $110 for the work of program developers and $100 for the work of non-programmers. 50. On or about April 12, 1998, FML submitted a schedule of costs for various projects requested by Morgan, totaling four hundred fifty four thousand eight hundred fourteen dollars ($454,814.00). The April 12, 1998 schedule included costs for development of a world wide web site, a catalog publishing application, a CD ROM application and for development of the related data base. 51. Morgan and FML continued discussions regarding services FML could provide for Morgan. Based on these discussions, Morgan requested that FML develop additional products, which were not included on the April 12, 1998 schedule of costs. Specifically, Morgan directed FML to develop a prototype "Field Application" to replace the CD-ROM Application envisioned by the April 12, 1998 schedule. Work performed on the "Field Application" was billed at the same agreed upon reduced hourly rates, was completed by July 1998, and was paid for in full by Morgan. Based on the successful completion of the prototype "Field Application," Morgan next instructed FML to develop a full-scale "Field Application." 52. In August 1998, Morgan further expanded the scope of FML's engagement to include an "Enterprise-Wide Project" which far exceeded the scope of the other projects discussed until that time. On or about August 17, 1998, Morgan's Michael Wertz provided FML with a document entitled "Vision Strategy And Business Process" outlining Morgan's goals for the future. This document specifically mentioned FML's role in developing Morgan's technological capabilities. Morgan requested that FML develop a proposal for an "Enterprise-Wide Project" based on the " Vision Strategy And Business Process" document. 53. Based on Morgan's "Vision Strategy And Business Process" document, FML submitted a proposal to Morgan entitled "Morgan Distribution Information Project Requirements Document," dated August 28, 1998, which quoted verbatim extensive portions of Morgan's "Vision Strategy And Business Process " document. The project outlined in the "Morgan Distribution Information Project Requirements Document" was referred to by Morgan and FML as the "Enterprise-Wide Project." 54. Morgan and FML met in August 1998, and several times in October, 1998, to discuss implementation of the "Enterprise-Wide Project." At a meeting on October G, 1998, David Braun, president of Morgan Distribution, a division of Morgan Products, authorized and directed FML to proceed with development of the "Enterprise-Wide Project." On or about November 2, 1998, FML, in conjunction with a subcontractor, Rockridge Consulting Services ("Rockridge"), submitted amore detailed outline of the "Enterprise-Wide Project". Afurther revised version ofthe"Enterprise-Wide Project" was submitted to Morgan in late November, 1998 and included a detailed estimate of the number of days required to complete each phase of the project. This information enabled Morgan to determine the anticipated expense of the project. 55. The Enterprise-Wide Project required FML to integrate the various marketing- oriented projects they had already begun into a system which interacted with all other aspects of Morgan's operations. Morgan, through David Braun, indicated that it wanted a software system which would enable management to analyze all aspects of the business, which would be accessible system-wide, and which would provide information for other projects previously discussed between FML and Morgan, including the catalog database publishing, a world-wide-web site, and the field application, as well as other Morgan information systems already in existence. 56. Morgan authorized FML to proceed with the "Enterprise-Wide Project" as outlined. On November 13, 1998, Morgan authorized FML's contractor Rockridge to purchase Oracle Corporation software for use in the "Enterprise-Wide Project." Morgan later authorized the purchase of additional third party software to support the project. In November, 1998, FML delivered a schedule of ongoing project costs for the remainder of 1998 to Morgan. Morgan accepted this information and made no comment regarding displeasure with the project's schedule, personnel, or costs. On December 15, 1998, FML and its contractor Rockridge met with Morgan and delivered and installed the catalog publishing database portion of the "Enterprise-Wide Project" on computers at Morgan's Mechanicsburg, PA location. This task included the installation of third party software from Oracle Corporation. 57. FML continued to send bi-monthly invoices to Morgan, and to keep Morgan apprised of FML's progress. The invoices included the fees and expenses of FML and its subcontractors. Over the next several months, FML conferred with and gave presentations to Morgan personnel regarding the Enterprise-Wide Project, the catalog database publishing, the field application and the world-wide-web site projects. These conferences included, but are not limited to, the following dates: August 29, 1998; September 29,1998; October 6,1998; October 15, 1998; October 26, 1998; November 2, 1998; December 15, 1998; January 6, 1999; January 13, 1999; February 1, 1999; February 4,1999; February 8,1999; February 24, 1999; and March 30, 1999. During the same time period, FML corresponded frequently with Morgan regarding the Enterprise-Wide Project. FML also provided updated proposals and schedules, reports, and written status documents to keep Morgan informed of schedule, costs, and status. On October 21, 1998 and November 11, 1998 respectively, FML provided Morgan an analysis of their AS 400 system and of their database software as part of the "Enterprise-Wide Project." On October 23,1998, FML provided Morgan the "Strategy Vision and Business Process Implementation" document for use in apresentation by Braun to Morgan's sales managers. On or before November 10, 1998, FML provided Morgan with revised catalog publishing and field application schedules. On November 11, 1998, FML provided Morgan with project cost estimates through January, 1999. On January 19, 1999, FML delivered detailed schedules and cost estimates for all working projects to Morgan personnel, including Braun. Morgan accepted all of this information and expressed no concern regarding project schedule, personnel, or costs. FML project status reports were transmitted via email to Morgan and attached to bi-weekly invoices on a periodic basis. 58. FML continued submitting bi-weekly invoices to Morgan, and Morgan continued to pay FML for its work on these various projects. In November, 1998, Morgan paid in full FML's invoices through October 15, 1998. Although FML continued to perform the work requested by Morgan and continued to submit invoices to Morgan bi-weekly, FML has not received payment for any work done by FML or its subcontractors after October 15, 1998. 59. In January, 1999, Morgan, through David Braun, assured FML that payment forwork performed after October 15, 1998 would be made. These assurances were repeated by Braun as late as February 4, 1999. In mid-February, 1999 Morgan reversed its course and refused to pay FML for its work performed after October 15, 1998, incorrectly claiming that project costs exceeded the estimates provided. 60. Morgan contracted with FML to provide computer programming services. The parties established a course of dealing in which Morgan periodically specified its requirements for computer software and authorized FML to perform the work necessary to fulfill Morgan's requirements. FML provided cost estimates arid charged Morgan for its services at established, agreed upon, hourly rates, billed on a bi-weekly basis, for which payment was due within 30 days. 61. Morgan currently owes FML four hundred ninety thousand, forty-four dollars and MAR 22 2000 13:31 FR CHRISTIAN-BARTON 804 697 4112 TO 39072714900005#1 P.02102 three cents ($490,044.03) for workperformed through February 1999. FML has made demand for payment and Morgan has refused payment. 62. Morgan has breached the patties' contract by failing to make payment on a timely basis for work performed by FM. WHEREFORE, Finite Matters Ltd. prays for entry of judgment in the amount of $490,044.03. Plus prryudgmeat interest, and the rusts of this action. CMUSTIAN & BARTON James E. VWZ Esquire 909 East Min Street, Suite 1200 Richmond, VA 23219-3095 (804) 697-4100 MARTS EARDORFF WLLTAMS 8t OTrO By Goo B. aller, Jr., Esquire T.D. Number 49613 'fen Past High Street Carlisle, PA 17013-3093 (717) 243-3341 Attorneys for Defendant Finite Matters, Ltd. Date: 3);Ll ILO ** TOTAL PAM.02 ** MAR 21 2000 15:05 FR CHRISTIAN BARTON 804 6974112 TO 3907271490000541 P.02i02 VERIFICATION James E. Moore, Esquire, of the firm of CHRISTIAN & BARTON, and George B. Faller, Jr., Esquire, of the firm of MARTSON DEARDORFF WILLIAMS & OTTO, attorneys for Defendant in the within action, certify that the statements made in the foregoing Answer with New Matter and Counterclaim are true and correct to the best of their knowledge, information and belief. They understand that false statements herein are made subject to the penalties of IS Fa. C.S. Section 4904 relating to unswom falsification to authorities. Jam ,.1 oore, Esquire George B. Faller, Jr., Esqui FWILE"ATAnUM..Epp,pp ng 1a ** TOTA1- PAGE.02 ** CERTIFICATE OF SERVICE 1, Nichole L. Myers, an authorized agent of Martson Deardorff Williams & Otto, hereby certify that a copy of the foregoing Answer with New Matter and Counterclaim was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: William A. Addams, Esquire ADDAMS & RUNDLE 28 South Pitt Street Carlisle, PA 17013-0208 MARTSON DEARDORFF WILLIAMS & OTTO By & Nichole L. Myers Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: vlac )I QO C?j 1:4: I,U u. cl ~) C) 0 MORGAN PRODUCTS LTD., Plaintiff, vs. FINITE MATTERS LTD., Defendant. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA No. 99-3479 CIVIL TERM CIVIL ACTION-LAW REPLY TO DEFENDANT'S ANSWER WITH NEW MATTER AND ANSWER TO COUNTERCLAIM Plaintiff Morgan Products Ltd. ("Morgan"), by its attorneys ADDAMS & RUNDLE and NISEN & ELLIOTT, states as its reply to defendant Finite Matters Ltd.'s ("Finite") answer with new matter and answer to its counterclaim as follows: Morgan Products Ltd.'s Answer to New Matter 34. Morgan admits to Paragraph 34, but by doing so, does not admit to any factual averments contained in Paragraphs I through 33 of Finite's Answer. 35. The conclusion of law alleged in Paragraph 35 of Finite's Answer is denied. 36. The conclusion of law alleged in Paragraph 36 of Finite's Answer is denied. 37. The conclusion of law alleged in Paragraph 37 of Finite's Answer is denied. 38. The conclusion of law alleged in Paragraph 38 of Finite's Answer is denied. 39. The conclusion of law alleged in Paragraph 39 of Finite's Answer is denied. 40. The conclusion of law alleged in Paragraph 40 of Finite's Answer is denied. 41. The conclusion of law alleged in Paragraph 41 of Finite's Answer is denied. 42. The conclusion of law alleged in Paragraph 42 of Finite's Answer is denied. M_orrean Products Ltd's Answer to Counterclaim 43. Morgan admits the allegations contained in the first sentence of Paragraph 43. After reasonable investigation, Morgan is without knowledge or information sufficient to form a belief as to the truth of the remaining factual averments contained in Paragraph 43, and thus denies the same. 44. Morgan admits the allegations contained in Paragraph 44, and states in the affirmative that Morgan is in the business of the wholesale sale of doors, windows, and other millwork to the residential and commercial building industry. 45. Morgan admits the allegations contained in Paragraph 45. 46. Morgan admits that Finite gave Morgan a demonstration on or about June 5, 1997 and after reasonable investigation, Morgan is without knowledge or information sufficient to form a belief as to the truth of the remaining allegations contained in the first sentence of Paragraph 46. Morgan denies the allegations contained in the second sentence of Paragraph 46. 47. Morgan denies the allegations contained in the first sentence of Paragraph 47 and states in the affirmative that Morgan requested Finite to submit an offer to design, develop, and present a prototype of a computer based marketing and information system for Morgan's consideration at an August 7, 1997 meeting. Morgan admits to the allegations contained in the second and third sentence of Paragraph 47. 48. Morgan admits the allegations contained in the first sentence of Paragraph 48 to the extent that Morgan accepted Finite's offer to design, develop, and present a prototype of a computer based marketing and information system for Morgan's consideration, and denies the allegations in Paragraph 48 to the extent that they conflict with the parties agreement concerning the Prototype Project. Morgan denies the remaining allegations contained in Paragraph 48 and states in the affirmative that Finite invoiced Morgan $29,229 for the design, development, and presentation of the Prototype Project and that Morgan paid that amount in full. 49. Morgan denies the first sentence of Paragraph 49, and states in the affirmative that the Prototype Project included a presentation of the project and that the Prototype Project was not completed until the presentation was made. After reasonable investigation, Morgan is without knowledge or information sufficient to form a belief as to the truth of the remaining allegations contained in Paragraph 49, and therefore denies the same. Morgan states in the affirmative that Finite invoiced Morgan $29,229 for the Prototype Project and that Morgan paid that amount in full. 50. Morgan admits to the allegations contained in Paragraph 50, and states in the affirmative that Finite's April 12, 1998 proposal represented that Finite would complete the project on or before December 14, 1998, and Morgan further states that it accepted Finite's April 12, 1998 proposal (the "April 12, 1998 Contract"). 51. Morgan admits that it held discussions with Finite regarding Finite's progress under the April 12, 1998 Contract and denies the remaining allegations contained in Paragraph 51. 52. Morgan admits the allegation contained in Paragraph 52 that it provided Finite with a copy of a Morgan document titled "Vision Strategy and Business Process" and the contents of that document speak for itself. Morgan denies the remaining allegations contained in Paragraph 52. 53. Morgan admits that from time to time Finite submitted additional proposals to Morgan and Morgan denies that it accepted any additional proposal subsequent to Finite's April 12, 1998 proposal, and Morgan denies the remaining allegations contained in Paragraph 53. 54. Morgan denies the allegations contained in Paragraph 54, and states in the affirmative that Morgan met with Finite several times in between April and November 1998 for the purpose of reviewing the status of Finite's progress under the April 12, 1998 Contract. 55. Morgan denies the allegations contained in Paragraph 55 to the extent that they conflict with the project Morgan authorized as a result of accepting Finite's April 12, 1998 proposal, and Morgan states in the affirmative that it never authorized Finite to perform any work outside of the scope of the April 12, 1998 Contract. 56. Morgan admits the allegation contained in Paragraph 56 that it agreed to the purchase of software sold by the Oracle Corporation, and affirmatively states that that purchase was made solely on Finite's representation that it could not complete its obligations under the April 12, 1998 Contract without that software. Morgan denies the remaining allegations contained in Paragraph 56, and states in the affirmative that Morgan never authorized Finite to perform any work outside of the scope of the April 12, 1998 Contract. 57. Morgan admits the allegation contained in Paragraph 57 that from time to time Morgan and Finite met regarding the status of Finite's progress of Finite's obligations under the April 12, 1998 Contract. Morgan denies the remaining allegations contained in Paragraph 57 and states in the affirmative that Morgan never authorized Finite to perform any work outside of the scope of the April 12, 1998 Contract. 58. Morgan admits the allegation contained in Paragraph 58 that Finite submitted a steam of invoices to Morgan totaling over $720,000 for a project that was nowhere near completion, and that Morgan paid Finite in full on all invoices through October 15, 1998. After reasonable investigation, Morgan is without knowledge or information sufficient to form a belief as to the truth concerning the work performed by Finite or its subcontractors, and therefore denies the same. Morgan admits that starting in November 1998 it refused to pay Finite on invoices submitted by Finite because Finite had invoiced Morgan for extra work that was never authorized or approved by Morgan and because Finite failed to provide any evidence that it would complete its obligations under the April 12, 1998 Contract by the agreed date of December 14, 1998. Morgan denies the remaining allegations contained in Paragraph 58, and states in the affirmative that Morgan never authorized Finite to perform any work outside of the scope of the April 12, 1998 Contract. 59. Morgan denies the allegations contained in Paragraph 59. 60. Morgan denies the allegations contained in Paragraph 60 to the extent that they conflict with the terms contained in April 12, 1998 Contract, and Morgan states in the affirmative that Morgan never authorized Finite to perform any work outside of the scope of the April 12, 1998 Contract. 61. Morgan denies the allegations contained in Paragraph 61, and states in the affirmative that no such amount is owed Finite. 62. Morgan denies the allegations contained in Paragraph 62, 63. Morgan denies all allegations that are not specifically admitted. NEW MATTER Finite's Counterclaim fails to state a cause of action upon which relief can be granted. 2. Finite's Counterclaim fails as a matter of law because Finite has failed to fully perform all of its obligations under the parties' April 12, 1998 Contract. 3. Finite's Counterclaim is barred by the statute of frauds. 4. Finite's claim for damages contained in its Counterclaim for purported contacts executed subsequent to the April 12, 1998 Contract are barred for failure to allege the necessary elements for the formation of contract. Finite's claims contained in its Counterclaim are barred for lack of consideration. 6. Finite's Counterclaim is barred by Finite's fraudulent conduct during the course of executing the April 12, 1998 Contract. Finite's Counterclaim is barred by Finite fraudulently inducing defendant Morgan Products, Ltd. to enter into the April 12, 1998 Contract. WHEREFORE, Morgan Products, Ltd. requests that the Court dismiss with prejudice Finite Matters, Ltd.'s Counterclaim, award Morgan Products, Ltd. its costs incurred in defending this matter, and award such further or alternative relief as the Court deems appropriate under the circumstances. MORGAN PRODUCTS LTD. By One of Its Attomeys William A. Addams ADDAMS & RUNDLE 28 South Pitt Street Carlisle, Pennsylvania 17013-0208 717-249-8300 Michael H. Moirano Robert B. Christie NISEN & ELLIOTT 200 West Adams street Chicago, Illinois 606006 312-346-7800 APR-20-2000 13'20 Nisen & Elliott 3123469316 P.02i02 YERIEKATION Robert B. Christie, of the law firm of Nisen & Elliott, attorney for the plaintiff Morgan Products, Ltd. in this action, certifies that the statements made in the foregoing Reply and Answer with New Matter are true and cornet to the best of his knowledge, information, and belicE He understands that false statements herein are made subject to the penalties of lg Pa,C.S. Section 4904 relating to unworn falsification to authorities. Rob Chnstte 7 TOTAL P.02 I?r w IN.-, MORGAN PRODUCTS LTD., Plaintiff V. FINITE MATTERS LTD., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 99-3479 CIVIL TERM ORDER OF COURT AND NOW, this (ity of June, 2000, upon consideration of Plaintiff's Motion To Compel, a Rule is hereby issued upon Defendant to show cause why the relief requested should not be granted. RULE RETURNABLE within 20 days of service. BY THE COURT, William A. Addams, Esq. 28 South Pitt Street P.O. Box 208 Carlisle, PA 17013 Attorney for Plaintiff George B. Faller, Jr., Esq. Ten East High Street Carlisle, PA 17013 Attorney for Defendant y Oler, Jr.,- J. o Z0 0 05 :rc _ -'ADDAIIFS & RUNDLE AT RNEYB AT LA I' . O V 28 SOUTH P{TT 3YtiEET j ? ` r JUN' s " G? , CARLISLE, PENNSYLVANIA 17019 TELEPHONE (717) 2AB$300 ?, . a MORGAN PRODUCTS LTD., IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA VS. NO. 99-3479 CIVIL TERM FINITE MATTERS LTD., Defendant JURY TRIAL DEMANDED ORDER OF COURT AND NOW, this day of June, 2000, in consideration of the within Motion to compel, the Defendant, Finite Matters, LTD. is hereby ordered to answer the Plaintiff's interrogatories in accordance with Pa. R.C.P. 4006 and to respond to the request for production of documents in accordance with Pa. R.C.P. 4009.12 within thirty (30) days of service of this Order or be subject to sanctions as provided in Pa. R.C.P. 4019. By the Court Distribution: William A. Addams, Esquire Attorney for Plaintiffs George B. Faller, Jr., Esquire Attorney for Defendants MORGAN PRODUCTS LTD., Plaintiff Vs. FINITE MATTERS LTD., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-3479 CIVIL TERM JURY TRIAL DEMANDED MOTION TO COMPEL AND NOW, comes the Plaintiff, Morgan Products LTD., by its attorneys, Addams & Rundle, and moves your Honorable Court to issue an order to compel the Defendant to respond to discovery requests, and in support thereof asserts the following: 1. This action arises out of a dispute involving a contract which required Defendant Finite Matters to design, develop and implement a computer based marketing and information publishing system for Plaintiff Morgan Products LTD at its place of business in Mechanicsburg. 2. The Defendant's office and principal place of business is in Virginia. 3. On November 18, 1999 the Plaintiff served interrogatories and a request for production of documents on the Defendant to develop facts including the identity of witnesses, expert witnesses and other items regarding the Defendant's performance of the contract. 4. The Defendant has failed to answer the interrogatories and request for production, and has filed no objection and has requested no extension of time. 5. On February 28, 2000 counsel for the Plaintiff sent the letter attached as Exhibit "A" to Defendant's counsel requesting its response to the discovery requests. There was no reply to the letter. 6. The Plaintiff requires the information requested to prepare for trial. WHEREFORE, the Plaintiffs moves your Honorable Court to issue an order to compel the Defendant to answer the interrogatories in accordance with Pa. R.C.P. 4006 and to respond to the request for production of documents in accordance with Pa. R.C.P. 4009.12, or suffer sanctions as provided in Pa. R.C.P. 4019. Respectfully submitted, ADDAMS & RUNDLE By: Willk-m A. Addams Supreme Court I.D. No. 06265 28 South Pitt Street P.O. Box 208 Carlisle, PA 17013 (717) 249-8300 Attorneys for Plaintiff ? A FEB-28-2000 11:15 PAUL r. OCRSOSI COWARO I. MOELLCR ANTHONY PACKARD MARKF. CAENOCR MICHAEL J. DALLY JOHN FOSTER LCOCM JOHN N. KNCAFSEY MICHACLH. MOIRANO ROBERT O. APOOLCTON WILLIAM O. OALJOA, JR.- KENNETH J. ROJC THOMAS Y. MOCAULEY HELEN M. JCH8CN NMLNAN A. WALKER DANIEL F. OAW80N MICHAEL J. PAYLIOCK Writtr'E Dircci NO N'umbor (696.2S30) Nisen & Elliott LAW OFFICES , NISEN & ELLIOTT 6UITC 11600 400 WCCT ADAMS STREET CHICAGO, ILLINOIS 00606 (J 1 C1340.1600 FAA 9319) 346-03 10 February 28, 2000 SENT VIA FACSIMILE (717-243-1850) & U.S. MAIL George R Faller, Jr., Esq. MARTSON DEARDORFF WILLIAMS & OTTO Ten East high Street Carlisle, Pennsylvania 17013 Re: Morgan Products Ltd v Finite Matters Ltd, Case No. 99-3479 Dear Mr. Faller: 31234693:6 P.02:02 ROBERT B. CHRISTIE --JENNIFER ¦. CROMHCCCKC DONALD 6 rROCNLRC THOMASN.JVrrERNYRUCM BRENDAN J. KCLLY MANY RODE C. MANCNR BRADLEY S. MCCANN ORIAN 0. PROCTOR PETER 6, ROCSCR BRIAN C. KELLY Or COUNSEL DONALD C. SHINE -ALSO AOMITTCO IN rLORIOA --ALSO AOMITTED IN OCOIN) A In July 1999, Morgan Savo Finite additional time to file its answer in the above referenced matter so the parties could attempt to resolve their differences through alternative dispute resolution. However, attempts to settle this matter, through mediation or otherwise, have not been successful. Furthermore, I have no knowledge of any on going discussions toward that end. Accordingly, Morgan requests Finite to file its answer in the above referenced matter and respond to Morgan's discovery requests, which were served on Finite on or about November 16, 1999, within twenty days (on or before March 20, 2000). Very truly yours, Robot B. Christie -J'-- cc: William A. Addams, Esq. (717-249-6154) I d_: p y. f ' I r i TOTAL P.02 CERTIFICATE OF SERVICE AND NOW, this 15th day of June, 2000, I, William A. Addams, of Addams & Rundle, attorneys for Plaintiffs, hereby certify that I have served a copy of the Motion to Compel by mailing a copy of the same by United States mail, postage prepaid, addressed as follows: George B. Faller, Jr., Esquire Martson, Deardorff, Williams & Otto Ten East High Street Carlisle, PA 17013 41 v C 1= 1?'Ll G (} LAwOFfICC• Of MICHAEL J. I-IANr•T • AI'"rORN1E\'S F• COIIINSl:L1"0115 AT LAW 19 I1NUxmwoon Avi NWI 'S1111'1 •106 CAIMS11. PA 17013-91-12 717.249.5373 1Ax 717.219.0457 wwW.11AN1'11A\V111kM.COM MORGAN PRODUCTS LTD, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA V. : NO. 99-3479 CIVIL TERM FINITE MATTERS LTD, Defendant : JURY TRIAL DEMANDED PRAECIPE Sir: Please withdraw the appearance of Addams & Rundle and enter the appearance of the Law Office of Michael J. Hanft for the Plaintiff. LAW OFFICE OF MICHAEL J. HANFT By: ?w!i' William' ,k. Addams Attorney I.D. No. 06265 19 Brookwood Avenue, Suite 106 Carlisle, PA 17013 (717) 249-5373 TO: Curtis R. Long, Prothonotary DATE: April 18, 2001 FWVtt lbldaU'iim lxK\\\VOa. NV.IV'ruci?x Kl*1 CERTIFICATE OF SERVICE AND NOW, this 18th day of April, 2001, I, Mary M. Price, hereby certify that I have this day served a copy of the Praccipe to withdraw and enter appearance by mailing a copy of the same by United States mail, postage prepaid, addressed as follows: George B. Faller, Jr., Esquire MARTSON, DEARDORFF, WILLIAMS & OTTO Ten East High Street Carlisle, PA 17013 i :.' ,: ? „- .. _ , ,- .._ .-; MORGAN PRODUCTS LTD VS FINITE MATTERS LTD STATEMENT OF INTENTION TO PROCEED To the Court: Morgan Products Ltd intends to proceed with the above captioned matter. Date: October 4, 2004 William A. Addams Attorney for Morgan-Prodaets Ltd >. cr; Co rJ ?::_ tt.lfl N _') _. a_ }x, Z t=- : C Ln_ -T ? J tV - AS OF 3- IS-- aO'D-7 CASE# , 9qq - 3 y ? 9 HAS BEEN SCANNED. ALL EARLIER FILINGS TO THIS CASE HAVE BEEN MICROFILMED. Commonwealth of Pennsylvania County of Cumberland 1V1UEgd1l FEUUUCLS, LLU. in me t-ourt or t-ommon ideas of Cumberland County Pennsylvania Plaintiff No 99-3479 Civil Term Vs. Finite Matters Ltd. Civil Action Law Jury Trial Demanded Defendant Praecie TO THE PROTHONOTARY OF SAID COURT: Please mark this action and counterclaim settled and discontinued with prejudice, each party to bear its own costs and fees. Date: .Eabfttai`y , 2007 William A. Addams A orney for Plaintiff i G ge B. Faller, Jr. Attorney for Defen ant and Counterclaim Plaintiff Frt fir, ?33 Ul C? rv w