HomeMy WebLinkAbout09-1242w
e
Defendant.
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION -LAW
NO. d~`' 1~~1e~
COMPLAINT
Cpl ~~ ~ T.~~~r
JURY TRIAL DEMANDED
NOTICE TO DEFEND
RITE AID HDQTRS. CORP. and RITE AID
CORPORATION,
vs.
Plaintiff,
CREATIVE LABORATORIES, INC.,
d/b/a CREATIVE LABS,
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 YOUR LAWYER AT ONCE. IF
YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE
SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH
INFORMATION ABOUT HIRING A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE
ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES
THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A
REDUCED FEE OR NO FEE.
Cumberland County Bar Association
32 South Bedford Street
Carlisle, PA 17013
Telephone: (717) 249-3166
RITE AID HDQTRS. CORP. and RITE AID
CORPORATION, _
Plaintiff,
vs.
CREATIVE LABORATORIES, INC.,
d/b/a CREATIVE LABS
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION -LAW
NO. CIVIL TERM
COMPLAINT
Defendant. JURY TRIAL DEMANDED
COMPLAINT
Plaintiff Rite Aid HDQTRS. CORP. and Rite Aid Corporation (collectively
referred to herein as "Rite Aid"), by their undersigned attorneys, file this Complaint and allege as
follows:
PARTIES
1. Rite Aid Corporation is a Delaware corporation with its principal place of
business at 30 Hunter Lane, Camp Hill, Cumberland County, Pennsylvania 17011.
2. Rite Aid HDQTRS. CORP. is a Delawaze corporation with its principal
place of business at 30 Hunter Lane, Camp Hill, Cumberland County, Pennsylvania 17011 and is
the administrative contracting entity for Rite Aid Corporation.
3. On information and belief, defendant Creative Laboratories, Inc., d/b/a
Creative Labs ("Creative Labs") is a Minnesota corporation with a principal office at 1325
Eagandale Ct, #110, Eagan, MN 55121.
JURISDICTION
4. This court has jurisdiction pursuant to 42 Pa.C.S. §931(a).
5. Venue in this Court is proper because the cause of action azose in
Cumberland County, a transaction or occurrence took place out of which the cause of action
azose in Cumberland County and the parties' agreed that any disputes with respect to the parties'
Guazanteed Sales Agreement would be venued in the Court of Common Pleas of Cumberland
County.
RELEVANT FACTS
6. Rite Aid operates drug stores in multiple states and has its headquarters
and corporate offices in Cumberland County, Pennsylvania.
7. At all times relevant to this Complaint, Creative Labs was involved in the
distribution of sun Gaze products.
8. In 1999, Creative Labs became a new vendor at Rite Aid and began to sell
its products in Rite Aid stores. A true and correct copy of correspondence dated April 15, 1999,
from Creative Labs transmitting a Vendor From is attached as Exhibit A.
9. On June 4, 2007, Rite Aid completed its purchase of the Brooks and
Eckerd drugstore chains ("Brooks/Eckerd Acquisition")
10. In Mazch 2007, in connection with the Brooks/Eckerd Acquisition, Rite
Aid and Creative Labs entered into an Addendum to Rite Aid's Guazanteed Sales Agreement in
which Creative Labs guazanteed the sale of its product and agreed that Rite Aid could return any
unsold product to Creative Labs for cash payment. A true and correct copy of the Addendum to
Rite Aid's Guazanteed Sales Agreement is attached to this Complaint as Exhibit B. A true and
correct copy of the form of Rite Aid's Guaranteed Sales Agreement is attached to this Complaint
as Exhibit C.
11. Creative Labs also entered into a Rite Aid Returns Agreement providing a
method for the return of any damaged, defective, outdated or discontinued product. A true and
correct copy of the Rite Aid Returns Agreement is attached as Exhibit D.
-2-
12. In the Returns Agreement Creative Labs directed that Rite Aid should
scan and ship back to Creative Labs any unsaleable products.
13. In 2008, Rite Aid decided to discontinue the sale of Creative Labs'
products because of slow product sales.
14. Despite guaranteeing the sale of its product and agreeing to accept, and
pay for, the return of unsold products, Creative Labs has refused to accept the return of its
product or provide cash payment to Rite Aid for the unsold product for which Rite Aid paid.
15. As of February 17, 2009, Creative Labs 's account reflects a $320,785.05
negative balance based on charges that Creative Labs agreed to including advertising allowances,
markdowns, unsaleable product and other vendor charges.
16. Additionally, Rite Aid is still holding $25,173.89 worth of product that it
seeks to return to Creative Labs.
17. As of the date of the. filing of this Complaint, Creative Labs is in breach of
its agreement with Rite Aid because it refuses to pay Rite Aid the negative account balance and
the cash payment for the unsold product.
18. As of the date of the filing of this Complaint, Creative Labs is in breach of
its agreement with Rite Aid because it refuses to accept the return of the unsold product.
COUNT 1
BREACH OF CONTRACT
Rite Aid vs. Creative Labs
19. Rite Aid incorporates the averments in paragraphs 1 through 18 above as
if fully set forth herein.
20. As noted above, Rite Aid and Creative Labs entered into an agreement
pursuant to which Creative Labs agreed to pay various vendor charges and guaranteed the sale of
its product.
-3-
21. As of February 17, 2009, Creative Labs has a negative account balance of
$320,785.05 and Rite Aid seeks to return $25,173.89 of additional product.
22. Despite repeated requests, Creative Labs refuses to pay the negative
account balance to Rite Aid or to accept and pay for the return of its product.
23. Rite Aid has performed all conditions precedent under all agreements
under the account.
24. Creative Labs is in breach of its contract with Rite Aid because it has
failed to pay the negative balance on its account and to accept and pay for the product that Rite
Aid seeks to return.
25. As of February 17, 2009, Rite Aid has suffered damages in excess of
$345,958.94 due to the breaches of Creative Labs .
WHEREFORE, Rite Aid requests judgment in an amount in excess of
$345,958.94, plus interest, costs and all other amounts deemed appropriate by the Court.
COUNT II
UNJUST ENRICHMENT
Rite Aid vs. Creative Labs
26. Rite Aid incorporates the averments in paragraphs 1 through 25 above as
if fully set forth herein.
27. In the event Creative Labs contends no contractual relationship exists, Rite
Aid is entitled to recover the outstanding amounts to prevent Creative Labs from being unjustly
enriched.
28. Rite Aid has a reasonable expectation to be paid the negative balance and
for the unsold product it is currently holding.
29. Rite Aid has no adequate remedy at law.
-4-
30. Rite Aid is entitled to collect the outstanding balance, plus interest, from
Creative Labs under the doctrine of unjust enrichment.
WHEREFORE, Rite Aid requests judgment in its favor and against Creative Labs
in an amount in excess of $345,958.94, plus interest, costs and all other amounts deemed
appropriate by the Court.
Respectfully submitted,
Date: Februazy 27, 2009 ~~~.~
Phone: 717.255.1155
Fax: 717.238.0575
Email: downeyb@pepperlaw.com
weber] g@pepperlaw.com
ian .Downey (PA 60327)
Justin G. Weber (PA 89266)
PEPPER HAMILTON LLP
Suite 200, 100 Market Street
P.O. Box 1181
Harrisburg, PA 17108-1181
Attorneys for Rite Aid Corporation and Rite
Aid HDQTRS. CORP.
-5-
~ti, e;+ A
30°k PCW
;' ~a~ ,
t4** SENT BY FAX **~
TO: Carrie ShefFler
Rite Aid
FROM: Don Kastning
BATE: April 15, 1999
SUBJECT: VENDOR FORM
Hi Carrie!
~N /
As you requested, attached is the completed Vendor Form.
Please call me rt you need any additional information.
Thank you!
Attachment
cc: File
1325 EayondalC Coui'c 6Began, MinrlegoC3 • 5512'1 Tel; f61c^1 66~•77gd • [600] 332-4352 Feuc: (B~2] 61a1-775:4
Id Wti6i : I 16661 SI 'add 66b9iS69I~£60IZ8Z868 'ON ~IVOHd
WO~Id
~.
Cr ~.ti u~e t.~ los
. ~ GUARAD~UM TO RITE AID'S
NTEED SA[,ES AGREEMENT
vendor ~„'~, eaKered .
and/or Rite Aid HDQ7R3. Corp. etoo • Ouaraattxd afar,
caraidiratfoa of Rhe Ald s ~ coUectiMefy "Ri4 m("GSA'~ with Rile Aid Capaation
eudar has
to Rite Aid ('"RRe Aid^) a~ qt to P~fuR cerlaie of V
greed drat m
U°Od +ad'ylaabk eonsid~,A~~ aaba basis as defiae~~ ~ dot stl of Va~~s gala of p~
'~' Vendor oleo acfogwbdRat and ~~ ~~ rester otwhich la ~~,~~~ b4 as weU as
IsdRsd 6y Vendor and
r+atait >~ Thedar rs awar+s. Rice Aid is ~~ a
P~'f+tcts being carry °g,~ ~~ ha na y~ioo w ~~S ~ BBL ~~ chain of
~+ rehil stares and ~, ~~ ~ -a<ail store that trite Aid is b ~ of. Veodor'a
P~ucb by Rios Ard fa ' t thin AddendurA. Vendor S b addN~pn to Rite Ald's
'~ Post-acquisition retail ators bees are ~a~w drat ail pact and firprns !>~q of
and is I By sijninp 6ebw Rite odor ~ d solo basis r defined in the GSA.
Aid and V ~M,
with ar ~ ~ °~r inb Wis Ayae~pK ~~ ~ °~ is ita p~ry~a
y other atf~ent rafaled to the ~ otf Sabo ~e dui if thu A ~ ~m~ive
to Rt d swill °ontrol. Vey ~ ~u die exi ~ . the terms ~ i° conflkt
P~-acquisition store bare, uQOa +od rafiaiey of i4 GSA with Riu,t,~~ ~~
Rite id HDQ~s, C ,
at~~, ~~~
Arint Name:
Dots: 3//7T~~ ~-1
Q~ .
~ fVerrdor>
~~t1 ~ -
t'rint Natrre; f 0, L .
Dots: S ~'~ :.5
-----,.
~v .s~
s~V
ALL-STATE ,.ECAL` 800-222~C' ]
RITE AID
GUARANTEED SALES AGREEMENT
Rite Aid will consider Vendor's product(s) for distribution and sale under the terms and
conditions set forth in this Agreement. In consideration of Rite Aid's agreement to review a new
entry into its mix, as well as in consideration of the mutual premises contained herein, the parties
agree as follows:
1. Vendor will guarantee the sale of Vendor's product(s) to Rite Aid at both Customer
Service Centers (i.e. distribution centers) and retail locations.
2. During the first one hundred twenty (120) days, or such other period as Rite Aid may
determine in its sole discretion (it being understood by Vendor that Rite Aid may
terminate this Agreement in its sole discretion at any time, for any reason whatsoever)
following the date if the Vendor's first delivery of product(s) to Rite Aid (the "Review
Period"), Vendor's account will be on a review status to permit Rite Aid to assess the
performance of the product(s). After the Review Period, Rite Aid will pay only for those
product(s) that aze actually sold, and Rite Aid's payment will be reduced by any and all
cash discounts or other debit amounts (including, but not limited to, advertising,
displays, mazkdowns and price protection) due to Rite Aid. If at the end of the Review
Period, Rite Aid determines, in its sole discretion, that the Vendor's product(s) is not
selling at an acceptable rate, then Rite Aid will have the right to (a) require Vendor to
review and modify Vendor's marketing plan to ensure future success and (b) extend the
due date of the original invoice submitted by Vendor. Rite Aid also has the right to
require a cash payment, as described in pazagraph (3) below. The foregoing rights are not
exclusive. At the end of the Review Period, Rite Aid may terminate this Agreement,
place the Vendor on Rite Aid's customary payment terms, or extend the Review Period as
Rite Aid, in its sole discretion, so desires.
3. If at any time Rite Aid determines in its sole discretion that Vendor's product(s)
performance continues to be unacceptable, Rite Aid will have the right to return at
Vendor's expense all unsold product(s) to Vendor's facility in return for Vendor's cash
payment to Rite Aid for any products for which Rite Aid has paid, but have not been sold.
Vendor's payment to Rite Aid shall be made (a) by wire transfer of immediately
available funds or certified check, and (b) no later than fifteen (15) days after Rite Aid
has returned the product(s). Vendor acknowledges and agrees that in the event that any of
Vendor's allowances aze funded with "free product" from Vendor, that "free product"
will be treated identically to product purchased from Vendor by Rite Aid. This
includes,but is not limited to, returns of this product to Vendor.
4. Upon settlement of Vendor's account, all outstanding invoices will be paid promptly, less
any and all cash discounts or other debit amounts due to Rite Aid.
Revised 10;22/2007
5. The terms and conditions of this Agreement are in addition to, and in no way limit, Rite
Aid's rights and remedies under Rite Aid's Vendor Profile, standard terms and conditions
or purchase orders. In the event of inconsistency between the terms and conditions of the
Agreement and any of the foregoing documents, this Agreement will govern.
6. The parties agree that Pennsylvania law governs this Agreement not withstanding its
conflicts of law provisions. Any lawsuit brought with regard to this Guazanteed Sales
Agreement will be venued in the Court of Common Pleas, Cumberland County,
Pennsylvania.
7. The parties specifically agree that 13 Pa. C.S.A. §2326 & 2327(b) aze inapplicable and
that Vendor will accept returned goods in their "as-is" condition.
8. All returns aze at risk of vendor.
9. Vendor can not assign any product covered by this Agreement to any third party without
the express written consent of a Vice President of Category Management.
Rite Aid is enthusiastic about the opportunity to distribute product(s) into the marketplace. Rite
Aid wishes you every success in your endeavor to provide a product that is unique. Please allow
Rite Aid to assist you in your distribution needs by arranging for a duly authorized officer to sign
and date this Agreement on behalf of your company, and return the executed letter to Rite Aid's
Merchandising Department.
Vendor:
By' Title:
Authorized Signature
Date:
Revised 10/22/2007
~Gxl~,b~f D
Jan 24 02 08:56a Janice Teschner !440)951-6499
p.l
Company Name:
~A
Contact Name: _ _ UO~J /~4 5~.,; -,4
Vendor Number: ~-~~'~~1J ~ ~ ~~~, e.~
Invoice Address'
CR:a~Jc G6.1
3z s .ocw..J,. cr
_Fi4~,~s, ,h,J. Si ]..J_
Shipping Address:
SAS ~
27" i Sr./ SS
l•.~~~+-. ~...y~l. SSi a~ i
Category Manager: /{~ .,
Associate Category Manager: 5usrs., B'Je -.s
TERMS OF AGREEMENT:
A. UrtsaleablQ Mkrchandise
1. Ail vendors wNl be charged the following processing fees for damaged, defective, outdated, and discontinued
goods. These fees are based on the findings from the Joint Industry Task Force
Study (JIR)•
DPC (Direct ProduetCost) 30.085
Post Damage 30.111
Ops through Scan: .101
50.297
2. All vendors must determine a method of disposition for their unsaleable products, Based on the
CODEJDESCRIPTIONS fisted below, the vendor representative will check (X) the method his/her company has
authorized Rite Aid to use. The additional charge, shown in () at the end of the description, will tie added to the
Charges above.
CODFy DESCRIPTION 1JIR COST1
COPT Scan and disposition is left up to the discretion o1 Rife Aid (50.020)`
DONA Scan and donate (50.030)
DEST Scan and destroy (50.040)'
RoPr Scan, Had, Vendor ReviewiCenter Option (30.127) Off-Invoice Allowance
RDON Scan, Hold, Vendor Review, Donate (30,137) °~
ROES Scan, Hdd, Vendor Review, Destroy (x0.147)•
RTAK Scan, Hdd, Vendor Review, Take (50.174)
RSHP Scan, Nold, Vendor Review, Ship (30.186)
Note: All Vendor Review mercharndise will be hold for Z1 days after fnvoice date floc nevlew. At that time it
not reviewed, or it no decision has been provldod Dy the manutactunrr the product will ak disposed olst
tho dlscraUon o/ Ri(ie Aid
x SHBK Scan and ship back to vendor ($0.180)•
Open RA* LREQ~/IRED with this option) RAtt ZOO ~
RITE AID RETURNS AGREEMENT
E-Mail Address: __ I~AS~'n; -+~, n '~ /40L . [e n..
'Non-toxie/non-haza-dous msUerial oMy
Jan 24 02 08:56a Janice Teschner
t 4401 `J51 -Ei4J5
Rite Aid Returns Agreement
' ~ Page 2
3. Handling of hazardous materials will require each vendor to supply to Rite Aid Corporation, Material
Safety Oats Sheets (MSDSj before any such product is returned. Fees for handling hazardous
materials wilt be specific to each vendor and will be in addition to the above disposition tees. Failure
to provide MSDS may result in additional charges and possible tines.
4. All products will be billed at Rite Aids list cost + JIR billing (actors (DPC. Post Damage Handling,
Rec Charges, Disposition Charges) unless otherwise agreed to in writing by Rite Aid Corporation.
Vendor billing is not to exceed !30%ot Rlte Aid's list cost
B. Recall Merchandise = 'Please roll: The dippositions on paps 1 NOT apply to recalls. A
sepanb agreement MUST be tilled out for all recalls at the time the recall is being activated.
Thb allows a vendor to have a separate disposition on recalls than ihsy have on damaged
and outdated returns.
1. An Open RArk must be established between the vendor and the Category Manager prior to the
initiation of a recall.
2. All vendors will be charged the following fees for product designated as RECALL merchandise:
Ops through Scan 50.101
Disposition Charge $0 18l)
$0.281
3, Pallets shipped with returned goods wall be billed to the vendor at the cost of $6.50 per pallet.
Itemized pallet charges will also appear on a future invoice.
a. All shipments are prepaid by Rite Aid and will be added and detailed on a future invoice.
5. All CtlarKieS to policies must be in writing to Rite Aid Corporation. Approved policy changes will take
effect within 30 days toMowing their approval.
6. All vendors will agree to forward a copy of their current national policy regarding reclamation to be
reviewed by Rite Aid Corporation, This wiN be sent to:
Rite Aid Corporation
30 Mortar Lane
Camp HiN, PA 17011
Attention: Garry Busfr
The signatures below by the appropriate Category Manager of Rite Aid Corporation and the v
repre alive of said company denote their understanding and acceptance of the above
ent.
Signature (Verwor Repr tativej Oate afore (A prized try R8e ~ C ) Date
C~Pen~~/c x.465 Rite Aid Corporation
Company
p.2
VERIFICATION
Catherine Furtado signs this Verification on behalf of Rite Aid Corporation and
Rite Aid HDQTRS. CORP., and does hereby verify that the foregoing Complaint was prepazed
with the assistance and advice of counsel, and in reliance upon counsel's advice; that the
document, subject to inadvertent or undiscovered errors, is based upon and therefore limited by
the records and information still in existence, presently recollected and thus faz discovered in
preparation of this document; and that subject to the limitations set forth herein, the statements
contained in this document aze true and correct to the best of her knowledge, information and
belief. The language of the foregoing document is that of counsel.
It is understood that the statements herein aze made subject to the penalties of
18 Pa. C.S.A. § 4904 relating to unsworn falsification to authorities.
CATHERINE FU TADO
Date: February 23, 2009
3~~.\1
~-/J~.~
1
~C!
r-.~
r3 c.:~
ca
- ..n
_ -~'
:.%lJ
t
r~
~ ~
~'
~~
ff .~. , ~'
W
-}
--1
:.:t'r't
,'~
~7
~~
RITE AID HDQTRS. CORP. and RITE AID
CORPORATION,
Plaintiffs,
vs.
CREATIVE LABORATORIES, INC.,
d/b/a CREATIVE LABS
Defendant.
JURY TRIAL DEMANDED
RITE AID HDQTRS. CORP. AND RITE AID C'ORPORA`T'ION'S REPLY TO
CREATIVE LABORATORIES, INC., d/b/a CREATIVE LABS' NEW MATTER
Rite Aid HDQTRS. CORP. and Rite Aid Corporation ("Rite Aid"), by and
through their undersigned counsel, reply to Creative Laboratories, Inc. d/b/a Creative Labs' New
Matter as follows:
31. Admits in part and denies in part. Rite Aid admits only that the parties
entered into agreements including an Addendum to Rite Aid's Guaranteed Sales Agreement
("Addendum") and the Rite Aid Returns Agreement. By way of further response, the parties
also entered into a Guaranteed Sales Agreement that is referred to in the Addendum. Rite Aid
denies that it ever agreed to the terms of Creative Labs' Returned Good Policy ("RGP").
32. Denies. Creative Labs and Rite Aid entered into a Guaranteed Sales
Agreement. By way. of further response, the Addendum refers to the fact that Creative Labs
previously entered into a Guaranteed Sales Agreement.
33. Denies. The Guaranteed Sales Agreement and the Addendum do not
provide a time limitation for Rite Aid to return unsold product.
34. Denies. After reasonable investigation, Rite Aid is without knowledge or
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
CNIL ACTION -LAW
NO. p9-1242 CIVIL TERM
information sufficient to form a belief as to Creative Labs' policy or agreements with other
customers. By way of further response, Rite Aid did not agree to Creative Labs' RGP. Rite Aid
denies that Creative Labs provided a copy of the RGP to Rite Aid.
3S. Admits in part and denies in part. After reasonable investigation, Rite Aid
is without knowledge or information sufficient to form a belief as to other retailers with which
Creative Labs did business. By way of further response, Rite Aid admits that Creative Labs had
a business relationship with Brooks/Eckerd before Brooks/Eckerd was acquired by Rite Aid and
that Brooks/Eckerd offered certain of Creative Labs' products for sale in its stores.
36. Admits in part and denies in part. Rite Aid admits only that
Brooks/Eckerd returned product to Creative Labs. After a reasonable investigation, Rite Aid is
without knowledge or information sufficient to form a belief as to the truth of what Creative
Labs offered to Brooks/Eckerd. By way of further response, Rite Aid denies any allegation that
Creative Labs was not required to accept the return of unsold product and denies that the terms
of the alleged RGP applied to any product that Rite Aid sought to return. By way of still further
response, Creative Labs entered into the Addendum and agreed that purchases of its products
were on a guaranteed sales basis.
37. .Admits. Rite Aid admits that it purchased Brooks/Eckerd in 2007 and that
Creative Labs' representative, Don Kastning, executed the Addendum on behalf of Creative
Labs. Rite Aid also admits that it drafted the Addendum.
3$. Denies. Rite Aid denies that it ever agreed to the terms of Creative Labs'
RGP. To the contrary, Rite Aid and Creative Labs entered into a Guaranteed Sales Agreement as
referenced in the Addendum and in a form similar to which is attached to Rite Aid's complaint
as Exhibit C. Rite Aid denies that there was any time limitation for it to return and be paid for
any unsold product.
_~_
Y
39. Denies as stated. The Addendum is a writing which speaks for itself and
any allegation inconsistent with that writing is denied.
40. Denies. The Addendum is a writing which speaks for itself and any
allegation inconsistent with that writing is denied. By way of further response, the Addendum
applied to all past and future purchases of Creative Labs' product by Rite Aid. By way of still
further answer, Creative Labs knew that the Addendum applied to products purchased by Rite
Aid which included the product it acquired as a result of its acquisition of the Brooks/Eckerd
stores.
41. Admits in part and denies in part. Rite Aid admits only that it attempted to
return product to Creative Labs based on the Addendum. By way of further response, Creative
Labs signed a Non Go-Forward Inventory Disposition Form acknowledging that certain products
would not be included in inventory on a go-forward basis.
42. Admits. Rite Aids admits only that Creative Labs refused to accept the
return of unsold product,
43. Denies. This paragraph states a conclusion of law to which to no response
is required and accordingly it is denied.
44. Denies as stated. Creative Labs' negative account balance with Rite Aid
is composed of a variety of charges to which Creative Labs previously agreed but which it now
seeks to avoid, including accepting the return of, and paying for, unsold product.
45. Denies. This paragraph states a conclusion of law to which to no response
is required and accordingly it is denied.
46. Denies. Rite Aid denies that it is improperly seeking to collect any
promotional funding credit.
~3_
47. Denies. ~hhis paragraph states a conclusion of law to which no response is
required and accordingly it is denied.
48. Denies. This paragraph states a conclusion of law to which to response is
required and accordingly it is denied.
49. Denies. This paragraph states a conclusion of law to which to response is
required and accordingly it is denied.
WHEREFORE,, plaintiffs Rite Aid I-IDQTRS. Carp. and Rite Aid Corporation
respectfully request that the Court grant plaintiffs the relief requested in their complaint and enter
judgment against Creative Laboratories, Inc. d/b/a Creative Labs, and such other relief as this
Court deems appropriate.
~L.~
Date: September 2S, 2009 ri P. Downey (PA 60327)
ustin Cr. Weber (PA 89266)
PEPFER HAMILTQN Lt,P
Suite 200, 100 Market Street
P.D. Boy 1181
Harrisburg, PA 17108-11$1
Phone: 717.2SS.11 SS
Fax: 717.238.OS7S
Email: downeyb~a pepperlaw.com
weberjgcL~pepperlaw.com
Attorneys for Rite Aid Corporation and Rite
Aid HDQ`TRS. CORP.
~~}.
V C~RLFTCA'I'TON
Catherine Furlado sibms this Verification on behalf oti Ritc Aid HDQTRS. Corp.
and Rite Aid Co~~poration, and does hereby verily that the foregoing [teply to New Matter was
prepared with the assistance and advice of counsel, and in reliance upon counsel's advice; that
the document, subject to inadvertent or undiscovered errors, is bu.~ed upon. and therefore limited
by the records and information still inexistence, presently recollected and thus tar discovered in
prcl~aration of this document and that subject to the limitations set forth herein, the statements
contained in this document are true and correct to the best other lu~owledge, information and
belief. The lal~guuge of the foregoing document is that o1'counsel.
ft is understood that the statements herein are made subject to the penahies of
18 Pa. C.S.A. § 4904 relating to unswom falsification to authorities.
ATHERINE R1'ADO
CERTIFICATE OF SERVICE
I hereby certify that on September 25, 2009, I served a copy of the foregoing Rite
Aid HDQTRS. Corp. and Rite Aid Corporation's Reply to Creative Laboratories, Inc., dib/a
Creative Labs 'New Matter on counsel of record by United States mail, first class postage
prepaid, addressed as follaws~
Charles O. $eckley, II, Esquire
Beckley & Madden
212 North Third Street
P. O. Box 11998
Harrisburg, PA 17108-1998
Kevin llevore, Esquire
DeVore Law Office, P.A.
First National Bank Building
332 Minnesota Street, Suite W 1610
St. Paul, Minnesota 55101
X~
J sti U. Weber (PA 89266)
n l._ .. :,_ ...i.
~, ~f i .
~_~~' ~ ~._ ~ ~ ., _ _. ,_. ',~;, 1
~~''~~ „ ,~
R; ~.i~ a' Vri~~ 4~' ~ U
~E +~J '`~
,.~ ._