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HomeMy WebLinkAbout99-07350 R. M. EGOLF & ASSOCIATES, INC., IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V NO. 99-7350 SIG ARMS, INC., CIVIL ACTION - LAW Defendant JURY TRIAL DEMANDED NOTICE OF FILING NOTICE OF REMOVAL To: The Honorable Curt Long Prothonotary Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 And Thomas J. Williams, Esquire Martson Deardorff Williams & Otto Ten East High Street Carlisle, PA 17013 Pursuant to 28 U.S.C. §1446(d), please be advised that a Notice of Removal of the above-captioned matter has been filed in the United States District Court for the Middle District of Pennsylvania. A copy of the Notice of Removal is attached hereto as Exhibit "A." Section 1446(d) directs that the Prothonotary shall effect the removal of this case and that the state court shall proceed no further unless and until the case is remanded. Respectfully submitted, ECKERT SEAMANS CHERIN & MELLOTT, LLC r Dated: January 4, 2000 Jame Esquire Supreme Ct. I.D. #21589 Barbara A. Zemlock, Esquire Supreme Ct. I.D. #58891 213 Market Street, Eighth Floor P.O. Box 1248 Harrisburg, PA 17108 (717) 237-6000 And of Counsel: Michael J. Lambert, Esquire Sheehan Phinney Bass & Green 1000 Elm Street Manchester, NH 03105-3701 (603) 668-0300 Attorneys for SIG Arms, Inc. Exhibit A IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA R. M. EGOLF & ASSOCIATES, INC., Plaintiff V. : NO. 2000-CV- SIG ARMS, INC., Defendant NOTICE OF REMOVAL Pursuant to 28 U.S.C. §§1332, 1441 and 1446(a), Defendant, SIG Arms, Inc., by and through its attorneys, Eckert Seamans Cherin & Mellott, LLC, and Sheehan Phinney Bass & Green, gives notice of the removal of this action from the Court of Common Pleas of Cumberland County, No. 99-7350, Civil Action - Law, to the United States District Court for the Middle District of Pennsylvania. Removal is based upon the following: On or about December 7, 1999, Plaintiff, R. M. Egolf & Associates, Inc. ("Egolf") filed a Complaint against Defendant, SIG Arms, Inc. ("SIG Arms") in the Court of Common Pleas of Cumberland County at No. 9977350, Civil Action - Law. 2. SIG Arms was served with a copy of the Complaint on December 15, 1999. 3. The Exhibit "1" attached to this Notice constitutes all process, pleadings and orders served to date upon Defendant in this action. 4. The Complaint of Egolf is divided into three separate Counts and, in each count, Plaintiff seeks monetary damages plus interest, docket costs, cost of collection and attorney's fees. Although Count I seeks damages in the amount of $9,000 plus interest, docket costs, costs of collection and attorney's fees, Counts II and III seek damages and related costs which are unliquidated but appear to seek overall monetary relief, when coupled with Count I, in an amount in excess of $75,000, exclusive of interest, costs and fees. 6. The sole Plaintiff named in the Complaint, Egolf, is identified in paragraph 1 as a Pennsylvania corporation and the sole Defendant, SIG Arms, identified in paragraph 2, is identified as a foreign corporation whose principal place of business is Exeter, New Hampshire. 7. By reason of the above, this action is a civil action over which this Court has jurisdiction pursuant to 28 U.S.C. §1332, and removal is proper pursuant to 28 U.S.C. §1441, in that: (a) The matter in controversy is a sum in excess of $75,000, exclusive of interest, costs and fees; and (b) This action is between citizens of two different states as required by 28 U.S.C. §1332(a)(1), 1332(c)(1) and 1441(b), in that the Plaintiff is a citizen of the Commonwealth of Pennsylvania and the Defendant is a resident of New Hampshire. 8. On this date, the Prothonotary of the Court of Common Pleas of Cumberland County and opposing counsel have been notified of the filing of this Notice, a copy of which is attached hereto and incorporated herein by reference as Exhibit "2." 9. Because no other defendant is involved in this suit, all conditions precedent to removal have been effectuated. 10. SIG Arms, in effectuating this removal, specifically reserves and does not waive its right to assert any defenses, including but not limited to the defenses of lack of jurisdiction 2 over the person, improper venue, insufficiency of process, or insufficiency of service of process, failure to state a claim upon which relief may be granted, or failure to join a party indispensable under Rule 19, consistent with Fed. R. Civ. P. 12 and DiCesare-Engler Productions Inc. v. Mainman, Ltd., 421 F. Supp. 116 (W.D. Pa. 1976). WHEREFORE, Defendant, SIG Arms, respectfully removes this action from the Court of Common Pleas of Cumberland County to the United States District Court for the Middle District of Pennsylvania. Respectfully submitted, ECKERT SEAMANS CHERIN & MELLOTT, LLC James Ku t7), Esquire ?J Supreme t. I.D. #21589 Barbara A. Zemlock, Esquire Supreme Ct. I.D. #58891 213 Market Street, Eighth Floor P.O. Box 1248 Harrisburg, PA 17108 (717) 237-6000 And Of Counsel: Michael J. Lambert, Esquire Sheehan Phinney Bass & Green 1000 Elm Street Manchester, NH 03105-3701 (603) 668-0300 Attorneys for SIG Arms, Inc. Dated: January 4, 2000 1 F.1Fn SQATAF1LS% 111)0CM79701-c=Inds Owe4 OOAIM 09:19.19 AM RMW* IIA" 10:42:20AM 0970.0 R. M. EGOLF & ASSOCIATES, INC., Plaintiff V. SIG ARMS, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO.99- 7356 CIVIL ACTION - LAW 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 orby 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 Plaintiffs. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYERAT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO ORTELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP: Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 lug 0 Telephone (717) 249-3166 c: C.- . Ell, _ _ . • ? ni J 3L 1 a .1 -c . TRUE COPY FROM P-E-COIRD to TG3d to Q:8. I Nre arric ne m ham and I ? Co' q ?rfsst3r Fa. Thl ?/1 19 rMUIMATA9LLMEND00=9193am I Oemd. 11MO 115:0AM r.,titd IV06"104=AM R. M. EGOLF & ASSOCIATES, INC., : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 99- CIVIL ACTION - LAW SIG ARMS, INC., Defendant : JURY TRIAL DEMANDED COMPLAINT AND NOW, comes the Plaintiff; R. M. Egolf & Associates, .Inc., by and through its attorneys, MARTSON DEARDORFF WILLIAMS & OTTO, and avers as follows in support of its Complaint: 1. Plaintiffis aPenDsylvania corporation whose principal place oflousiness at 10 Ladnor Lane, Mt. Holly Springs, PA 17065. 2. Defendant is a foreign corporation whose principal place of business is at Corporate Park, Exeter, NH 03833. 3. At all times pertinent hereto, Defendant sold its products and employed distributors and sales representatives within the Commonwealth of Pennsylvania. 4. Defendant is in the business of manufacturing firearms which it sells through a network of representatives, the same being independent persons and/or entities who/which are typically paid on a commission basis. 5. At all times pertinent hereto, Plaintiff was a manufacturer's representative of Defendant. 6. By agreement between Plaintiff and Defendant, Plaintiff had the exclusive right to sell products manufactured by Defendant within the states of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, Pennsylvania, New York, New Jersey, Delaware and Maryland (hereinafter referred to as the "exclusive territory of Plaintiff'). 7. Pursuant to said oral agreement between Plaintiff and Defendant, Plaintiff was to receive a commission of all sales of Defendant's products made within the exclusive territory of Plaintiff. 8. The amount of Plaintiff's commission varied with the type of product, quantity sold and, sometimes, the identity of the buyers and whether the sale was made retail or wholesale. COUNTI SALES TO NEW YORK CITY POLICE DEPARTMENT 9. Paragraphs 1 through 8 hereof are incorporated herein by reference thereto. 10. Solely as a result of efforts by Plaintiff, a pistol manufactured by Defendant was selected for transition bytheNewYork City Police Department(hereinafter referred toas "NYPD") from revolvers to semi-automatic pistols. 11. Plaintiff agreed to the Defendant's request to reduce commissions from the normal $18.00 perpistol to $9.00 per pistol, with regard to this sale so as to make the price more appealing to NYPD officers. 12. NYPD bought approximately 3,000 P226 SIG pistols from Defendant. 13. Plaintiffwas never paid by Defendant for the first 1,000 model P226 SIG pistols that were delivered to NYPD. 14. Upon inquiry concerninghiscommission, Plaintiffwasadvised bythethen president of Defendant, C. Edward Rowe, that SIG Arms had closed the "books" for the previous year. 15. Plaintiffhasnever received compensation forthefirst1,000pistols soldtotheNYPD. 16. Such compensation should be in the amount of S9.00 per pistol. WHEREFORE, Plaindffdemandsjudgment against Defendant for the amount $9,000.00 plus interest, docket costs, and the cost of collection, including attorney's fees. COUNT II JERRY'S' PORTS CENTER 17. Paragraphs 1 through 16 hereof are incorporated herein by reference thereto. 18. One of the customers in Plaintiff s exclusive territory was Jerry's Sports Center. 19. Because of a relationship between the principals of Jerry's Sports Center and Mr. Boyd Metz, Jerry's Sports Center requested that Defendant appoint Mr. Metz as the manufacturer's representative for Jerry's Sports Center. 20. Because Jerry's Sports CenterwasinPlaintiff's exclusive territory,Defendant sought the approval of Plaintiff. 21. To induce Plaintiffs approval, Defendant's president, C. Edward Rowe, offered to pay Plaintiffa "consulting fee" through Defendant's Sniper Program equal to the commissions paid to Mr. Metz for sales of Defendant to the account of Jerry's Sports Center. This proposal was made in November of 1996 and Plaintiff received commissions from Defendant for the account ofJeny's Sports Center until January 1, 1997. 22. From January 1, 1997 to June 30, 1998, Plaintiff has not received any commissions forDcfeadant's products sold to the account of Jerry's Sports Center, nor has Plaintiff received any other compensation as promised by Mr. Rowe on behalf of Defendant and as more fully set forth above. 23. Mr. Rowe's employment with Defendant was tenninated in January of 1997. 24. Prior to January of 1997, Mr. Rowe was president and chief executive officer of Defendant, authorized to act as such on behalf of Defendant and authorized to enter into the Agreements referred to above. 25. PlaintiffandDefendant terminated theirrelationshipaspreviously described effective June 30, 1998. 26. Defendant owes Plaintiff for commissions payable to Defendant's manufacturer's representative for all sales of Defendant's products made to the account of Jerry's Sports Center from January 1, 1997 through June 30, 1998. 27. Plaintiff has repeatedly made demands for these commissions, but Defendant has failed and refused, and continues to fail and refuse, to pay said commission or any part of them. 28. Plaintiff is without knowledge or information sufficient to form a belief as to the exact amount ofthe commissions since he does not know the sales made byDefendant to the account of Jerry's Sports Center from January 1, 1997 through June 30, 1998. WHEREFORE, Plaintiff demands judgment against Defendant for the amount equal to all commission payable by Defendant for sales of Defendant's products made to the account of Jerry's Sports Center from January 1, 1997 through June 30, 1998, plus interest, docket costs, and cost of this suit, including reasonable attorney's fees. COUNT TII CARRERA-WERNER SALES CO. 29. Paragraphs 1 through 28 hereof are incorporated herein by reference. 30. In the Spring of 1998, George N. Schneider, who was then president and chief executive officer of Defendant, approached Plaintiff about the possible sale of his business to Carrera-Werner Sales Co. Mr. Schneider told Plaintiff that he had a long standing relationship with the principals of Carrera-Wemer Sales Co. and desired them to be Defendant's manufacturing representative within the then exclusive territory of Plaintiff. 31. As an inducement to obtaining Plaintiff's consent to the transfer of the exclusive territory of Plaintiff to Carrera-Wemer Sales Co., and in recognition of the fact that this would essentially put Plaintiff out of business, Defendant offered to guarantee that Plaintiff would receive an amount equal or greater to $150,000.00 from Carrera-Wemer Sales Co. paid over five years. 32. The said $150,000.00 was proposed to be paid to Plainti ff by Carrera-Wemer Sales Co. as a consulting fee. 33. As a result of the aforesaid assurance, Plaintiff entered into an Agreement with Carrera-Wemer Sales Co. wherein Plaintiff would receive a portion of the commissions Catrcra- Wemer Sales Co. received from Defendant for a period of five years, said commission not to exceed $30,000.00 per year. A true and correct copy of said Agreement is attached hereto and marked as Exhibit "A." 34. Pursuant to said Agreement, Exhibit "A," the payments are to be made on amonthly basis, one year in arrears, so that Plaintiff began receiving payments July 1, 1999 based on commissions received by Carrera-Wemer Sales Co. from Defendant during the period July 1, 1998 through June 30, 1999. 35. Beginning July, 1999, Plaintiff began receiving monthly payments from Catrera- Wemer Sales Co. in the amount of S1,749.48 which will equal $20,993.76 per year ending June 30, 2000, rather than the 530,000.00 promised by Defendant, a difference of 59,006.24 36. Plaintiff has demanded that Defendant make up the difference between what it actually received from Carrera-Wemer Sales Co. and $30,000.00 per year, but Defendant has failed and refused, and continues to fail and refuse, to make said payment. WHEREFORE, Plaintiff demands judgment against Defendant in the amounts: a. Equal to 59,006.24, plus interest, docket costs and costs of this litigation, including attorney's fees; and b. Additional amounts to be determined in subsequent years in the event Plaintiff receives less than $30,000.00 per year from Carrera-Wemer Sales Co. MARTSON DEARDOR.FF WILLIAMS & OTTO Ey VA '4 wa' Thomas J. Williams, Esquire T.D. No. 17512 Ten East High Street Carlisle, PA 17013-3093 (717) 243-3341 Attorneys for Plaintiff Date: December G, 1999 Richard M. Egolf, who is president oFR. M. Egolf & Aociates, Inc. and aalatowledges that he has the authority to execute this Verification In behulfof R. M.Egolf& Associates, Inc. cerdrres that the foregoing Complaint is based upon information which has be,m gathered by my counsel in the Preparation of the lnwsuit. TZte langnagc of this Com 1 I have read the document and to the extent that the Complaint is basedf cUpon ounsel and not my own. have given to MY counsel, it is true and correct to the best of my lrnowledge, into ro? n on wbii I belief. To the extent that the content of the Complaint is that of counsel. I have relied and making this Vecificatiom upon counsel in This statement and Verification are made subject to the penalties of 1 S pa. C.S. Sectlon 4904 relating to unswom falsitication to authorities, which provides that if I atelce knowingly *false averments, I maybe subject to criminal penalties. R_ M. Egolf & associates, Inc. Richard M. Egolf t.vssse.r,?snrcavwoa,,, w<,.,. ? R.M. EGOLF & ASSOCIATES, INC., Plaintiff Vs. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-7350 CIVIL ACTION - LAW SIG ARMS, INC., Defendant JURY TRIAL DEMANDED PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of James J. Kutz, Esquire and Eckert Seamans Cherin & Mellott, LLC as co-counsel for SIG Arms, Inc. Respectfully Submitted, Eckert Seamans Cherin & Mellott, LLC Jam {utz, Esq ' e Supreme Court I.D. #2 9 213 Market Street, 8 Floor P.O. Box 1248 Harrisburg, PA 17108 (717) 237-6000 And: . Michael J. Lambert, Esquire Sheehan Phinney Bass & Green 1000 Elm Street Manchester, NH 03105-3701 668-0300 Attorneys for SIG Arms, Inc. Dated: December 29 1999 CERTIFICATE OF SERVICE I, James J. Kutz, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage prepaid, addressed as follows: Thomas J. Williams, Esquire Martson Deardorff Williams & Otto 10 East High Street Carlisle, PA 17013 Jam . Kutz Dated: December 29 1999 MOM 2 R. M. EGOLF & ASSOCIATES, Plaintiff C CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 99-7350 SIG ARMS, INC., CIVIL ACTION -LAW Defendant JURY TRIAL DEMANDED NOTICE OF FILING NOTICE OF REMOVAL To: The Honorable Curt Long Prothonotary Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013-3387 And Thomas J. Williams, Esquire Martson Deardorff Williams & Otto Ten East High Street Carlisle, PA 17013 Pursuant to 28 U.S.C. §1446(d), please be advised that a Notice of Removal of the above-captioned matter has been filed in the United States District Court for the Middle District of Pennsylvania. A copy of the Notice of Removal is attached hereto as Exhibit "A." Section 1446(d) directs that the Prothonotary shall effect the removal of this case and that the state court shall proceed no further unless and until the case is remanded. Respectfully submitted, Dated: January 4, 2000 ECKERT SEAMANS CHERIN & MELLOTT, LLC Jam z, Esquire Supreme Ct. I.D. #21589 Barbara A. Zemlock, Esquire Supreme Ct. I.D. #58891 213 Market Street, Eighth Floor P.O. Box 1248 Harrisburg, PA 17108 (717) 237-6000 And Of Counsel: Michael J. Lambert, Esquire Sheehan Phinney Bass & Green 1000 Elm Street Manchester, NH 03105-3701 (603) 668-0300 Attorneys for SIG Arms, Inc. CERTIFICATE OF SERVICE I, Barbara A. Zemlock, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage prepaid, addressed as follows: Thomas J. Williams, Esquire Manson Deardorff Williams & Otto Ten East High Street Carlisle, PA 17013 f Bar ra A ei Dated: January 4, 2000 CERTIFICATE OF SERVICE I, Barbara A. Zemlock, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage prepaid, addressed as follows: Thomas J. Williams, Esquire Martson Deardorff Williams & Otto Ten East High Street Carlisle, PA 17013 r Gt Barba -r. Zemlock Dated: January 4, 2000 CERTIFICATE OF SERVICE I, Barbara A. Zemlock, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage prepaid, addressed as follows: Thomas J. Williams, Esquire Martson Deardorff Williams & Otto Ten East High Street Carlisle, PA 17013 Bar a A emlock Dated: January 4, 2000 R. M. EGOLF & ASSOCIATES, INC., Plaintiff V. SIG ARMS, INC., Defendant NO. 99- 7350 CIVIL ACTION - LAW JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE COMMONWEALTH OF PENNSYLVANIA ) COUNTY OF CUMBERLAND : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA SS. I hereby certify that a copy of the Complaint was mailed to Defendant SIG Arms, Inc. at Corporate Park, Exeter, NH 03833 on December 9, 1999 by certified mail, return receipt requested. Attached is the Post Office return receipt signed "Carley Pezard" and dated December 14, 1999. Also attached is a second Post Office return receipt signed "D. Montgomery" and dated December 15, 1999 as apparently the first card was signed in error. n b? h_ _ Thomas J. Willi as, Esquire Sworn to and subscribed before me this 30d day of December, 1999. ?- Notary Public NOtaflal Seal Tricla D. Ac enroacl. Notary Public Carlisle Sore, Cumberland County My :ommla2lon Erplres Oct. 23.2000 -'^ - - US Postal service Receipt for Certified Mail No Insurance Coverage Provided. Do MA use for Interlladenal Mall Sao reverse s1 Post 6 Posupe $ 5 ?J CerAAed Fee . U S,*" Dom IN Restricted Dam IN Return FlaWgSllowtiN to d Whom 8 Dade lkivere g M, Pillow ey ftft AWhot% S TOTAL geaFees 7Q703 also wish to receive the follow- t m+d pIF me CID t '• o SENDER: ing services (tor an extra lee): rT 0. €o J V fT rn-? t0 r > o m Dompata acme 3,4a. and 40. r rums end address a a the reverse at this farm so hou wo i O Dor'plel0 hems 1 Bnwor 2lof edd"-,--a t 0 Addressee's Address ] D y N p pr m you pAnacn Ws lotm to the from at the maefeow, arm IN Oarkit spacnot nflach yav' 2. 0 ReselGed Delivery o permit. rucl O awhile -polumpoaIR mw Ro um aeCBiplpmll snow to whwn the m0dltlo? belo* as ad W e n delivered. 3. A de dressed lo: umber I J " j O '& E Ty llL . DAru l pe C u red FL K f C ?Insured A orfLmi f- 7. D H OD ndiso ? COD aise " 4A f Complete items 1, 2, and 3. Also complete A. Received by (Preass Print Cre / / / III `?.T Item 4 If Restricted Delivery Is desired. ¦ Print your name and address on the reverse , gig to so that we can return the card to you, ant ¦ Attach this card to the back of the mailpiece, _ Addressee or on the front If space Permits. D. is delweryaddressdAI aan 17 Yes 1. Article Addressed lo: If YES, enter delivery address below: ? No Sl0ufm/-5 -n a. 'vice Type ,erefiod Mail ? Expross Mail Registered ? Return Receipt for Merchandise sured Mall ? C.O.D. 4. Restricted DaliWO (Extra Feo) ? Yes 2. Ankle mana.ao.u.nas I F 1000 nC Cn.m A ail clc.? R.M. EGOLF & ASSOCIATES, INC., Plaintiff Vs. SIG ARMS, INC., Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 99-7350 CIVIL ACTION -LAW JURY TRIAL DEMANDED PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of James J. Kutz, Esquire and Eckert Seamans Cherin & Mellott, LLC as co-counsel for SIG Arms, Inc. Respectfully Submitted, Eckert Seamans Cherin & Mellott, LLC Tjam utz, Esq i e rem e Court I.D. N2 9 213 Market Street, 8'h Floor P.O. Box 1248 Harrisburg, PA 17108 (717) 237-6000 And: Michael J. Lambert, Esquire Sheehan Phinney Bass & Green 1000 Elm Street Manchester, NH 03105-3701 668-0300 Attorneys for SIG Arms, Inc. Dated: December 29 1999 i v CERTIFICATE OF SERVICE I, James J. Kutz, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage prepaid, addressed as follows: Thomas J. Williams, Esquire Martson Deardorff Williams & Otto 10 East High Street Carlisle, PA 17013 Jam . Kutz Dated: December 29 1999 L0205402 rWILLIVATAMPGINIXI'M1970f'a M& CIGL[ [' JM)081939AM Rmsed I: MJ04220A>I "901 R. M. EGOLF & ASSOCIATES, INC., Plaintiff V. SIG ARMS, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99- 7396 CIVIL ACTION - LAW 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 ajudgment 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 Plaintiffs. 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 KELP: Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 Telephone (717) 249-3166 FMIMAVATAFILMLNDO 79703 canI QcxM 11010)ON.15 0AM Pevi,eJ IMON104230AM R. M. EGOLF & ASSOCIATES, INC., Plaintiff V. SIG ARMS, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 99- 73sL CIVIL ACTION - LAW JURY TRIAL DEMANDED COMPLAINT AND NOW, comes the Plaintiff, R. M. Egolf & Associates, Inc., by and through its attorneys, MARTSON DEARDORFF WILLIAMS & OTTO, and avers as follows in support of its Complaint: Plaintiff is a Pennsylvania corporation whose principal place ol'business at 10 Ladner Lane, Mt. Holly Springs, PA 17065. 2. Defendant is a foreign corporation whose principal place of business is at Corporate Park, Exeter, NH 03833. 3. At all times pertinent hereto, Defendant sold its products and employed distributors and sales representatives within the Commonwealth of Pennsylvania. 4. Defendant is in the business of manufacturing firearms which it sells through a network of representatives, the same being independent persons and/or entities who/which are typically paid on a commission basis. 5. At all times pertinent hereto, Plaintiff was a manufacturer's representative of Defendant. 6. By agreement between Plaintiff and Defendant, Plaintiff had the exclusive right to sell products manufactured by Defendant within the states of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, Pennsylvania, New York, New Jersey, Delaware and Maryland (hereinafter referred to as the "exclusive territory of Plaintiff'). 7. Pursuant to said oral agreement between Plaintiff and Defendant, Plaintiff was to receive a commission of all sales of Defendant's products made within the exclusive territory of Plaintiff. 8. The amount of Plaintiff's commission varied with the type ofproduct, quantity sold and, sometimes, the identity of the buyers and whether the sale was made retail or wholesale. COUNTI SALES'1'O NEW YORK CITY POLICE DEPARTMENT 9. Paragraphs I through 8 hereof are incorporated herein by reference thereto. 10. Solely as a result of efforts by Plaintiff, a pistol manufactured by Defendant was selected for transition by lhcNew York City Police Department (hereinafterreferred to as "NYPD") from revolvers to semi atttontatic pistols. 11. Plaintiff agreed to the Defendant's request to reduce commissions from the normal $18.00 per pistol to $9.00 per pistol, with regard to this sale so as to make the price more appealing to NYPD officers. 12. NYPD bought approximately 3,000 P226 SIG pistols from Defendant. 13. Plaintiffwas never paid by Defendant for the first 1,000 model P226 SIG pistols that were delivered to NYPD. 14. Upon inquiry concerning his commission, Plainti ff was advised by the then president of Defendant, C. Edward Rowe, that SIG Arms had closed the "books" for the previous year. 15. Plaintiff has never received compensation for the first 1,000 pistols sold to the NYPD. 16. Such compensation should be in the amount of $9.00 per pistol. WHEREFORE, Plaintiff demands judgment against Defendant for the amount $9,000.00 plus interest, docket costs, and the cost of collection, including attorney's fees. COUNT II JERRY'S SPORTS CENTER 17. Paragraphs I through 16 hereof are incorporated herein by reference thereto. 18. One of the customers in Plaintiff's exclusive territory was Jerry's Sports Center. 19. Because of a relationship between the principals of Jerry's Sports Center and Mr. Boyd Metz, Jerry's Sports Center requested that Defendant appoint Mr. Mctz as the manufacturer's representative for Jerry's Sports Center. 20. BecauscJerry'sSports Centerwasin Plaintiffsexclusive territory, Dcfendantsought the approval of Plaintiff'. 21. To induce Plaintiffs approval, Defendant's president, C. Edward Rowe, offered to pay Plaintiff a "consulting fee" through Defendant's Sniper Program equal to the commissions paid to Mr. Metz for sales of Defendant to the account of Jerry's Sports Center. This proposal was made in November of 1996 and Plaintiff received commissions from Defendant for the account of Jerry's Sports Center until January 1, 1997. 22. From January 1, 1997 to June 30, 1998, Plaintiff has not received any commissions for Defendant's products sold to the account of Jerry's Sports Center, nor has Plaintiff received any other compensation as promised by Mr. Rowe on behalf of Defendant and as more fully set forth above. 23. Mr. Rowe's employment with Defendant was terminated in January of 1997. 24. Prior to January of 1997, Mr. Rowe was president and chief executive officer of Defendant, authorized to act as such on behalf of Defendant and authorized to enter into the Agreements referred to above. 25. Plaintiff and Defendant terminated their relationship as previously described effective June 30, 1998. 26. Defendant owes Plaintiff for commissions payable to Defendant's manufacturer's representative for all sales of Defendant's products made to the account of Jerry's Sports Center from January 1, 1997 through June 30, 1998. 27. Plaintiff has repeatedly made demands for these commissions, but Defendant has failed and refused, and continues to fail and refuse, to pay said commission or any part of them. 28. Plaintiff is without knowledge or information sufficient to form a belief as to the exact amount of the commissions since he does not know the sales made by Defendant to the account of Jerry's Sports Center from January 1, 1997 through June 30, 1998. WHEREFORE, Plaintiff demands judgment against Defendant for the amount equal to all commission payable by Defendant for sales of Defendant's products made to the account of Jerry's Sports Center from January 1, 1997 through June 30, 1998, plus interest, docket costs, and cost of this suit, including reasonable attorney's fees. COUNT 111 CARRERA-WERNER SALES CO. 29. Paragraphs I through 28 hereof are incorporated herein by reference. 30. In the Spring of 1998, George N. Schneider, who was then president and chief executive officer of Defendant, approached Plaintiff about the possible sale of his business to Carrera-Wemer Sales Co. Mr. Schneider told Plaintiff that he had a long standing relationship with the principals of Camera-Wemer Sales Co. and desired them to be Defendant's manufacturing representative within the then exclusive territory of Plaintiff. 31. As an inducement to obtaining Plaintiff's consent to the transfer of the exclusive territory of Plaintiff to Carrera-Wemer Sales Co., and in recognition of the fact that this would essentially put Plaintiff out of business, Defendant offered to guarantee that Plaintiff would receive an amount equal or greater to $150,000.00 from Carrera-Wcmer Sales Co. paid over five years. 32. The said $150,000.00 was proposed to be paid to Plaintiff by Cancra-Werner Sales Co. as a consulting fee. 33. As a result of the aforesaid assurance, Plaintiff entered into an Agreement with Carrera-Wemer Sales Co. wherein Plaintiff would receive a portion of the commissions Carrcra- Wemer Sales Co. received from Defendant for a period of five years, said commission not to exceed $30,000.00 per year. A true and correct copy of said Agreement is attached hereto and marked as Exhibit "A." 34. Pursuant to said Agreement, Exhibit "A," the payments are to be made on a monthly basis, one year in arrears, so that Plaintiff began receiving payments July 1, 1999 based on commissions received by Carrera-Werner Sales Co. from Defendant during the period July 1, 1998 through June 30, 1999. 35. Beginning July, 1999, Plaintiff began receiving monthly payments from Carrera- Wemer Sales Co. in the amount of $1,749.48 which will equal $20,993.76 per year ending June 30, 2000, rather than the $30,000.00 promised by Defendant, a difference of $9,006.24 36. Plaintiff has demanded that Defendant make up the difference between what it actually received from Carrera-Wcmer Sales Co, and 530,000.00 per year, but Defendant has failed and refused, and continues to fail and refuse, to make said payment. WHEREFORE, Plaintiff demands judgment against Defendant in the amounts: s interest, docket costs and costs of this litigation, . Equal to $9,006.24, plu a including attorney's fees; and b. Additional amounts to be determined in subsequent years in the event Plaintiff receives less than $30,000.00 per year from Carrera-Werner Sales Co. MARTSON DEARDORFF WILLIAMS & OTTO 13 Y Thomas J. Will , Esquire I.D. No. 17512 Ten East High Street Carlisle, PA 17013-3093 (717) 243-3341 Attorneys for Plaintiff Date: December (1, 1999 VERMCAIL M Richard M. Egolf, who is President of R. M. Egolf& Associares, Inc. and ae;mowleclges that he has the authority to execute this Verification inbehalfof R. M. Egolf& Associates, Inc, certifies that the forcgoing Complaint is based upon information which has been gathered by my counsel in the preparation of the lawsuit. The language of this Complaint is that of counsol and not my own, I have read the document and to the extent that the Complaint is based upon information which I have given to my counsel, it is true and correct to the best of my knowledge, inforrnation and belief. To the extent that the content of the Complaint 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 unswom falsification to authorities, which provides that if r make knowingly false averments, I may be subject to criminal penalties. R. M. Egolf & Associates, Inc. Ric and M. Egolf vv7Smwrwxcw4vd,cvr,nw..,w ? R. M. EGOLF & ASSOCIATES, INC. VS. SIG ARMS, INC. IN THE COURT OF COMMON PLEAS OF NO. 99-7350 CIVIL TERM CIVIL ACTION -LAW ?_(u,0C)-1(-3 UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYI Please acknowledge receipt of this case by signing and dating this document. RECORD RECEIVED: Date /,?,/ /fin