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HomeMy WebLinkAbout01-1606IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW AMERICAN GENERAL FINANCE, Plaintiff vs. JESSICA A. WILLIAMS Defendant INC. ) ) ACTION IN EQUITY ) 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 YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association Two Liberty Avenue Carlisle, PA 17013 717-249-3166 REIDENBACH & HENDERSON Herbert P. Henderson, II Attorney ID No: 56304 36 East King Street Lancaster, PA 17602 (717) 295-9159 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW AMERICAN GENERAL FINANCE, Plaintiff vs. JESSICA A. WILLIAMS, Defendant INC. CI-O1- /L,~L ~ ACTION IN EQUITY COMPLAI~TT IN REPLEVIN 1. Plaintiff herein is American General Finance, Inc., a retailer financial services with a current office located at 6 south Hanover Street, Carlisle, Cumberland County, Pennsylvania 17013. 2. Defendant herein is Jessica A. Williams, an adult individual currently residing at 5069 Ritter Road, Mechanicsburg, Pennsylvania 17055. 3. On or about December 2, 1999, Defendant entered into a Loan Agreement with Plaintiff whereby Plaintiff agreed to loan Defendant and for a total of $8,896.42. A true and correct copy of attached hereto, incorporated hereby by reference as forth at length, and marked Exhibit "A". 4. In order to secure repayment Defendant agreed to borrow $5,974.36 plus interest, the Note is though set of the loan, Defendant granted Plaintiff a security interest in her 1995 Volkswagen Jetta automobile, Vehicle Identification No. 3VWVB81HOSM066953, as evidenced by signing the enclosed Security Agreement (Chattel Mortgage), the same of which is attached hereto, incorporated herein by reference as though set forth at length, and marked Exhibit "B". 5. Plaintiff has a valid security interest in the automobile as evidenced by the document attached previously as Exhibit "B". 6. Defendant has defaulted under the contract by failing to make monthly payments when due. 7. Plaintiff believes, and therefore avers, that Defendant has possession of the automobile. 8. Defendant, despite knowing that she is in default, has failed to deliver possession of the automobile to Plaintiff. WHEREFORE, Plaintiff, A/aerican General Finance, Inc., demands judgment and possession together with reasonable attorney fees, interest and costs. Respectfully submitted, REIDENBACH & HENDERSON By: Herbert P. Henderson, II Attorneys for Plaintiff 36 East King Street Lancaster, PA 17602 (717) 295-9159 Attorney I.D. No. 56304 VERIFICATION Herbert P. Henderson, II, Esquire, hereby states that he is attorney for Plaintiff in this matter, that he is authorized to make this Verification, and that the statements made in the foregoing Civil Action in Replevin are true and correct to the best os his knowledge, information and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pacs Section 4904, relating to unsworn falsification to authorities. Dated: ACCOUNT NUMBER 13491998 BORROWER(B) NAME AND ADDRESS JESSICA A WILLIAMS 152 LAKE PT DR HARRISBURG, PA 17521 Date of No~ ~rst Payment DueDa~ TY~E DATE FINANCE CHARGE BEGINS TO ACCRUE NOTE IF DIFFERENT FROM DATE OF NOTE LENDER (WE, US, OUR) AMERICAN GENERAL FINANCE, 6 SOUTH HANOVER STREET CARLISLE, PA 17013 12/02/99 01/07/00 GENERAl. ·FINANGE INC. Other Payments Due on Same Date of Each Month. FinalPayment AmountofFirst Amountof Balloon AmountofMonthly TotalNumber Termof Due Date Payment Payment Payment of Payments Loan in Months 12/07/03 $ 201.42 SNONE $ 185.00 48 48 ITE[~IZATION OF AJ~OUNT FINANCED t. sNONE Premium to Life Insurance Co. (Joint Coverage) 10. Appraiser for Appraisal Fee .... SNONE 2.$ 157. 17 Premium to Life Insurance Co. (Sidgle Coverage) 11. Title Exam/Tifle Ins ........... sNONE 3. SNON~-~ Premium to Disability Insurance Co, (Joint Coverage) 12. Abstract Fee ................ SNONE 4. $ 351 . 64 Premium to Disability insurance Co. (Single Coverage) 13. paid on Prior Account w~th Lender sNONE 5.$ 29..~7 Premium to Property Insurance Co. $ 960.00 14, Amount Paid to you or on your 6. $ NONE Paid to Public Officials for Amount of Coverage behaff itemized below ~ 5086 · 11 Certificate of Title Fees 7. $ NONE Paid to Public Officials for Recording and Releasing Fees 8. $ NONE Premium lo Non-Filing Ins. Co, PAID TON/A PAID TON/A PAID TON/A s76.00 $5000.00 sN/A ToNON CR INS TO CUSTOMER CUST/CASTREK N/A g. $ 34 9 . 87 Premium to Involuntmy Unemp. Ins. Co. A.$ 150 . 00 Service Charge (Prepaid Finance Charge) SN~ .N/A B.$NONE Brokers F~e Prepaid FINANCE CHARGE $N/A __ N/A __ 5974.3_6 Amount Financed (Bum of lines I thru 14) (Paid to N/A ) SN/A N/A 2922.06 FINANCE CHARGE '--~-~ c.s 2772.06interest (Discount) $N/A N/A 8_8920 ' 99 % ANNUAL PERCENTAGE RATE D'$_6,4~ Total of Pa~,men. 16 ' 4 2 Ext'nded ~ir't Payment Due Dale Charg" :NN_-~AA _ NN/A/A NOTE $10.11 YOU In this Note the words, "you, yours, and your'' mean each and all who signed it as Borrower. The words, '~ve, us and our'' mean Lender (Creditor). PROMISE TO PAY: You agree to pay the Total of Payments shown which includes the Amount Financed and Charges (including a service charge equal to the lesser of $1.50 for each $50.00 not to exceed $150 and, if applicable, a brokers fee) to ·, maturify which have been precomputed at a rate authorized by law to yield the Annual Pementage Rate set forth assuming all payments are made as scheduled. If Line 16D above is filled in, then you have requested an extended first payment due date and have been charged the above amount. If this loan is a renewal of an earlier loan from us, and this renewal is within 4 months of the date of that earlier loan, then there will be no service charge on this loan if only the unpaid balance of the earlier loan is bain9' renewed. If an amount in excess of the unpaid balance of that eaifier loan is being renewed or refinanced, the service charge is calculated only upon the amount by which this load exceeds the unpaid balance of the earlier loan, after crediting the unpaid balance of such eariier loan with any refund of interest or discount that may have been due upon renewal or prepayment. FEATURE: [] Anytime after NA year(s) from the dele of this loan we can demaRd the full balance and you will have to pay DEMAND (if checked) the principal amount of the loan and all unpaid interest accrued to the day we make the demand. If we elect to exercise this option you will be given written notice of election at least 90 d~ys before paymen! in furl is due. It you fail to pay we will have the dght to exorcise any rights permitted under the Note, Mortgage or Deed of Trust that secures this loan. If we elect to exercise this option, and the Note carls for a prepayment penalty that would be due, there will be no prepayment penalty. DEFAULT, If you fail to make any required payment within 10 days of its due date, we may charge you I 1/2% per month of DEFERRAL the amouRt past due, but not less than $1.00. AND EXTENSION We may postpone or defer, for a number of months equal to the number of installments in default, the payment of CHARGES: any installment in default for 60 days or more on which no default charge has been collected, or any other installment if so requested and agreed. You further agree to pay a deferral charge equal to 1 1/2% per month on the amount deferred for the period of deferral, but in no event shall the deferral charge be less than $1.00 if the period of deferment is 10 days or more. If we agree with you to extend any payment to the end of the contract, we may charge an extension fee of I 1/2% of the unpaid ~rincipal balance. If any unpaid balance remains after maturity of this contract, that entire unpaid balance will be considered in default and subject to the 1 1/2% per month default charge on any amounts remaining unpaid after iudgment, you will pay interest at the highest judgment rate permitted by law, not to exceed 1 1/2% per month. BAD CHECK in the event any payment is made by check, draft or order and said check, draft or order is dishonored by reason CHARGE: of insufficient funds in or on deposit with the drawee, the holder hereon may charge a service charge not to exceed $ 20.00 , SIGNATURE: You have signed this Note on the Date of Note in the presence of the person(s) ideRtifljing themselves be/ow as witnesses. NOTICE: The following NOTICE applies if you were referred to us by a seller of consumer goods or services and a substantial portion of the proceeds of this loan is used for the purchase of consumer goods from that seller; NOTICE ANY HOLDER OF THIS CONSUltER CREDIT CONTRACT iS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT ACAINST THE SELLER OF (/CODS OR SERV'..CES O~3TAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NO/ EXCEED A~JIO~NTS PAID BY THE DEBTOR HEREUNDER. COPY RECEIVED: 'You acknowledge receipt of a completely filled-in copy of this Note and a copy of the Federal Disclosure Statement  · o1~ a separate sheet. 16.$ 18.$ Witness: Witness: (3-1-9g) PAA261 PENNSYLVANIA CONSUMER DISCOUNTCOMPANYACT SIGNATURE OF PRINCIPAL BORROWER k,S. (Seal) SIGNATURE OF OTHER BORROWER L,S. (Seal) SIGNATURE OF OTHER BORROWEB SEE REVERSE SIDE FOR ADDITIONAL INIPORTANT TERiViS JESSIC~ A WILLIAMS 152 LAKE PT DR HARRISBURG, PA 17521 SECUREDPARTY-MORTGAGEE ~cMERICAN GENERAL FINANCE, 6 SOUTH HANOVER STREET CARLISLE, PA 17013 INC. Date of Note First Payment and this Mtg Due Date 12/02/99 01/07/00 SECURITY AGREEMENT (CI~ATTEL MORTGAGE) Other Payments Due on Same Date of Each Month Final Payment Due Date 12/07/03 Amount of First Amount of Balloon Amount of Monthly Payment Payment Payment $ 201.42 $ NONE $ 185.00 Total Number Term of of Payments Loan in Months 48 48 ANNUAL PERCENTAGE RATE ~ FINANCE CHARGE ~ AMOUNT FINANCED TOTALOF PAYMENTS 20.99 %{ $ 2922.06 [ $ 5974.36 s 8896.42 KNow ALL MEN BY THESE PRESENTS that the below named Mortgagor(s) hereby mortgages and pledges to the Mortgagee hereinabove named, (a) that certain motor vehicle(s) described herein, together with all equipment and accessories thereunto now and hereafter attached and/or (b) the hereinafter described personal property, situated at the address where Mortgagor now resides, as set forth in the hereinafter mentioned promissory note, as security for the payment of a promissory note in the amount, date and terms stated above, subject to acceleration in time of payment in event of failure of Mortgagor to keep and perform certain conditions, provisions and stipulations therein and herein contained. Reference is hereby made to said promissory note now on file in the office of Mortgagee for the particular provisions thereof. This mortgage shall also secure any obligations given by Mortgagor to Mortgagee, and any future advances; and for any further indebtedness which shall hereafter be owing to Mortgagee by Mortgagor; it is contemplated by the parties hereto that future advances may be made which shall be secured by the herein described property and by virtue thereof this mortgage is given as security; and as security for the performance by Mortgagor of each of the covenants and conditions set forth below: The conditions of this mortgage are as follows: To secure payment of all sums due hereunder and under any other obligation given by Mortgagor to Mortgagee, Mortgagor does hereby grant, convey and mortgage unto said Mortgagee the herein described property to have and to hold the same forever, provided that if said Mortgagor shall fully pay said Mortgagee all sums due in cash and shall keep and truly perform all agreements and covenants herein, this mortgage shall be void, otherwise to remain in full rome and effect. Mortgagor warrants that the title of said property is vested in Mortgagor free of ail liens and encumbrances. This chattel mortgage is given as security for money advanced. Mortgagor shall keep said property free from all attachments, executions, liens, taxes and encumbrances, shall not use the same nor permit it to be used illegally, for hire, or in any contest, and shall not remove the automobile from this state or remove the herein describe furniture from the'address where located on this date without the Mortgagee's wdtten permission. Neither loss of nor injury to said property shall relieve Mortgagor from his obligations hereunder. Mortgagee, or the holder of this mortgage, is expressly given the right to go on public or private property in enforcing any of Mortgagee's rights hereunder without the same in any manner constituting a trespass against the Mortgagor(s) herein; consent to such entering by Mortgagee on public or private property is expressly given by Mortgagor(s). The property described herein shall be at the Mortgagor's risk and Mortgagor shall procure and maintain for the term hereof insuranoe against all physical damage risks at Mortgagor's expense all in such form and for such amount as Mortgagee may legally require, the proceeds thereof to be payable to the Mortgagor and Mortgagee as their interests shall appear. In the event Mortgagor does not secure or maintain such insurance as Mortgagee may legally require to be in effect for the term hereof, the Mortgagee may declare this instrument in defauR or as creditor of the Mortgagor may pumhase such insurance effective from the beginning of the term hereof and at any time, and from time to time thereafter, although nothing herein contained shall impose upon the Mortgagee the duty so to do and Mortgagee may add the cost thereof to Mortgagor's indebtedness secured by this instrument; and the Mortgagor agrees to reimburse the Mortgagee for the actual cost of such insurance to the extent the same is not included in Mortgagor's indebtedness owing to Mortgagee, the amount of such reimbursement together with interest thereon at an annual percentage rate equivalent to that charged on Mortgagor's indebtedness to constitute an additional obligation of the Mortgagor hereunder and to be paid in equal installments over the term of the insurance. Nothing contained herein shall be construed to require you to obtain or maintain insurance on household goods. Mortgagors grant Mortgagee a security interest in any unearned premiums from any insurance Mortgagor has elected and purchased through Mortgagee in connection with this transaction which protects the account or collateral. Mortgagors grant Mortgagee the right, but not the obligation, to cancel such policies in the event of Mortgagor's default, subject to any applicable Eestrictions under state law. If Mortgagee cancels the insurance, any unearned premium will be credited to this account or refunded to Mortgagor. Mortgagors. where authorized by law hereby assign to the Mortgagee any moneys not in excess of the unpaid balance of indebtedness which this instrument secures which may become payable under such other insurance including return on unearned premiums, and directs any insurance company to make payment directly to Mortgagee to be applied fo said unpaid tbdebtedne$$ and hereby appo/nl$ Mortgagee as attorney-in-fact to endorse any draft. In the event of default under the terms of mis instrument, Mortgagee is authorized to cancel said insurance and credit any premium refuhd received against such unpaid indebtedness. All policies may be retained by Mortgagee. Any insurance collected by Mortgagee may be applied at Mortgagee's option to the repair and restoration of said property, or upon the indebtedness of Mortgagor. Mortgagor agrees to repay Mortgagee on demand any payment made by Mortgagee preserving or protecting the lien of this mortgage against attachments, executions, and other claims of lien, Modgagor shall pay all filing fees and state stamp taxes. Mortgagor authorizes the Mortgagee at Mortgagor's expense to execute and file on Mortgagor's behalf a financing statement or statements or continuations thereof necessary to protect our security interest in the Collateral. Description of Mortgaged Proper~¥ now located in or about Mortgagor's premises at the residence set forth above lin addition to the Motor Vehicle(s)], if any, described herein: AIl property listed as security in a certain Federal Disclosure Statement executed by and delivered to the Mortgagor(s) on even date. Year Make Model Body Type Vehicle identification No, N-U No. Cyls,/ 1995 VW JETTA 3VWVBS1HOSM066953 All of the covenants and obligations herein contained shall be considered joint and several covenants and obligations of each maker and co-maker hereof. IN WITNESS WHEREOF, the Mortgagor(s) have hereunto set their hands and seals on the day written above. ACCEPTED AMERICAN GENERAL FINANCE, INC. Name of Secured Party Its A t Secured Party (SEAL) Mortgagors LIABILITY INSURANCE COVERAGE FO,,R, EtODILY INJURY AND DAMAGE TO PROPERTY IS NOT INCLUDED. UN7051 (5-24-99) SecurityAgreement SHERIFF'S RETURN - CASE NO: 2001-01606 P COMMONWEALTH OF PENNSYLVA/qlA COUNTY OF CUMBERLAND NOT FOUND AMERICAN GENEP~AL FINANCE INC VS WILLIAMS JESSICA A R. Thomas Kline duly sworn according to law, inquiry for the within named defendant, WILLIAMS JESSICA A unable to COMPLAINT NOTICE locate Her EQUITY in his bailiwick. the within named DEFENDANT DEFT. NO LONGER RESIDES AT ADDRESS NOT FOUND AS PER JANET, ON 4/2/01 ,Sheriff or Deputy Sheriff, who being says, that he made a diligent search and DEFENDANT but was He therefore returns the , NOT FOUND , as to WILLIAMS JESSICA A STATED, RETURN Sheriff's Costs: Docketing 18.00 Service 7.44 Not Found Return 5.00 Surcharge 10.00 .00 40.44 So answ~_s: // / / Sheriff of Cumberland County KENNETH G. REIDENBACH II 0A/02/200Z Sworn and subscribed to before me this //~ day of ~ ~¥~! A.D. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION LAW AMERICAN GENERAL FINANCE, Plaintiff vs. JESSICA A. WILLIAMS Defendant INC. ACTION IN EQUITY 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 YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association Two Liberty Avenue Carlisle, PA 17013 717-249-3166 TRUE COPY FROM RECORD in T~¥ v4hen~ol, I t~l'e %into ~t my ~ REIDENBACH & HENDERSON BY: Herbert P. Henderson, II Attorney ID No: 56304 36 East King Street Lancaster, PA 17602 (717) 295-9159 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW AMERICAN GENERAL FINANCE, INC. Plaintiff vs. JESSICA A. WILLIAMS, Defendant CI-01- ACTION IN EQUITY COMPLAINT IN REPLEVIN 1. Plaintiff herein is American General Finance, Inc., a retailer financial services with a current office located at 6 south Hanover Street, Carlisle, Cumberland County, Pennsylvania 17013. 2. Defendant herein is Jessica A. Williams, an adult individual currently residing at 5069 Ritter Road, Mechanicsburg, Pennsylvania 17055. 3. On or about December 2, 1999, Defendant entered into a Loan Agreement with Plaintiff whereby Plaintiff agreed to loan Defendant and Defendant agreed to borrow $5,974.36 plus for a total of $8,896.42. A true and correct attached hereto, forth at length, interest, incorporated hereby by and marked Exhibit UA". copy of the Note is reference as though set 4. In order to secure repayment of the loan, Defendant granted Plaintiff a security interest in her 1995 Volkswagen Jetta automobile, Vehicle Identification No. 3VWVBS1HOSM066953, as evidenced by signing the enclosed Security Agreement (Chattel Mortgage), the same of which is attached hereto, incorporated herein by reference as though set forth at length, and marked Exhibit "B". 5. Plaintiff has a valid security interest in the automobile as evidenced by the document attached previously as Exhibit "B". 6. Defendant has defaulted under the contract by failing to make monthly payments when due. 7. Plaintiff believes, and therefore avers, that Defendant has possession of the automobile. 8. Defendant, despite knowing that she is in default, has failed to deliver possession of the automobile to Plaintiff. WHEREFORE, Plaintiff, American General Finance, Inc., demands judgment and possession together with reasonable attorney fees, interest and costs. Respectfully submitted, R~IDENBACH & HENDERSON By: ~ Herbert P. Henderson, II Attorneys for Plaintiff 36 East King Street Lancaster, PA 17602 (717) 295-9159 Attorney I.D. No. 56304 VERIFICATION Herbert P. Henderson, II, Esquire, hereby states that he is attorney for Plaintiff in this matter, that he is authorized to make this Verification, and that the statements made in the foregoing Civil Action in Replevin are true and correct to the best os his knowledge, information and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pacs Section 4904, relating to unsworn falsification to authorities. ACCOUNT NUMBER. TYPE DATE FINANCE CHARGE BEGINS TO ACCRUE I ~I~OT~. 13491998 H IF DIFFERENT FROM DATE OF NOTE I BORROWER(S) NAME AND ADDRESS LENDER ONE, US, OUR) JESSICA A WILLIAMS 152 LAKE PT DR HARRISBURG, PA 17521 Date of No~ First Payment Due Date 12/02/99 O1/07/00 AMERICAN GENERAL FINANCE, 6 SOUTH HANOVER STREET CARLISLE, PA 17013 ER[CAN FINANCE INC. Other Payments Final Payment Amount of First Due on Same Due Date Payment Date of Each Month. 12/07/03 $ 201,42 ITEmiZATION OF A~OUNT FINANCED 1. SNONE Piemium to Life ~nsurance Co. (Joint Coverage) 10. Appraiser for Appraisal Fee .... $~]~[~?~.__ PAID TO~/A g. $ 157,17 Premium to Life Insurance Co. (Sin[lie Coverage) 11. TiUe Exam/Title Ins ........... SNONE PAID TON/A 3. S NONE Premium to Disability Insurance Co. (Joint Coverage) 12. Abstract Fee ................ sNONE PAID ToN/A 4. $ _ ~L~3~. Premium to Disab[[it'f Insurance Co. (Single Coverage) 13. Paid on Prior Account with LenderSNONE 5. $ 29 , 57 Premium to P[operb/Insurance Co. $ 960 · 00 14. Amount Paid to you or on your $ 5086 · 11 9. $ NONE Paid to Public Officials for Amount of Coverage behalf itemized below ~, $ 76.00 -- Certificate of Title Fees SN_/.~ -- 7. $ NONE Paid to Public Officials to[ Recording and Releasing Fees $ 5000 · 00 9. sNONE Premium lO Non-Filing Ins. Co. sN/A 9. s 340.87 Premium to Involuntary Unemp. Ins. Co. A.$. 1_30.00 Service Charge (Prepaid Finance Charge) sN/A B,$NONE Brokers Fee Prepaid FINANCE CHARGE SN/A t5.s 5974,36 Amount Financed (Sum of lines 1 thru 14) (Paid to N/A ) SN/A ~6.$ 2922,06 FINANCE CHARGE ~'~,~ C.$ 2772,06 In[crest (Discount) SN/A -- 17. 20.99 % ANNUAL PERCENTAGE RATE D.$ 16,42 Extended Fils( payro~nt Due Dme Che, rge SN /A 18.$ 8896 · 42 Total of Payments SN/A NOTE $10.11 Amount of BaBoon Amount o! Monthly Total Number Term of Payment Payment of Payments Loan in Months $ NONE S 185.00 48 48 TENON CR INS. TO CUSTOMER CUST/CARTREK N/A N/A N/A N/A _ N/^ N/A YOU In this Note the words, "you, yours, and your'' mean each and ali who signed it as Sorrower. The words, "we, us and our" mean Lender (Creditor). PROMISE TO PAY: You agree to pay the T~tal of Payments shown which includes the Amount Financed and Charges (including a service charge equal to the lesser Df $1.50 for each $50.00 not to exceed $150 and, if applicable, a brokers fee) to o. maturity which have been precomputed at a rate authorized by law to yield the Annual Percentage Rate set forth assuming all payments are made as scheduled. If Line 16D above is filled in, then you have requested an extended first payment due date and have been charged the above amount. If this loan is a renewal of an eadier loan from us, and this renewal is within 4 months of the date of that earlier loan, then there will be no service charge on this loan if only the unpaid balance of the eadier loan is being' renewed. If an amount in excess of the unpaid balance of that eadier loan is being renewed or refinanced, the service charge is calculated only upon the amount by which this loan exceeds the unpaid balance of the eadier loan, after crediting the unpaid balance of such eadier loan with any refund of interest or discount that may have been due upon renewal or prepayment. DEiVlAND FEATURE: ~ Anytime after NA year(s) from the date of this loan we can demand the full balance and you will have to pay (if checked) ~ principal amount of the loan and ali unpaid interest accrued to the day we make the demand. If we elect to exercise this option you will be given written notice of election at least 90 days before payment in full is due. If you fail to pay we will have the right to exorcise any rights permitted under the Note, Mortgage or Deed of Trust that secures this loan. If we etect to exercise this option, and the Note calls for a prepayment penalty that would be due, there will be no prepayment penalty. DEFAULT, if you fail to make any required payment within 10 days of its due date, we may charge you 1 1/2% per month of DEFERRAL the amount past due, but not less than $1.00. AND EXTENSION We may postpone or defer, for a number of months equal to the number of installments in default, the payment of CHARGES: any installment in default for 60 days or more on which no default charge has been collected, or any other installment if so requested and agreed. You further agree to pay a deferral charge equal to 1 1/2% per month on the amount deferred for the period of deferral, but in no event shall the deferral charge be less than $1.00 if the period of deferment is 10 days or more. If we agree with you to extend any payment to the end of the contract, we may charge an extension fee of I 1/2% of the unpaid ~rincipal balance. If any unpaid balance remains after maturity of this contract, that entire unpaid balance will be considered in default and subiect to the 1 1/2% per month default charge on any amounts remaining unpaid after judgment, you will pay interest at the highest judgment rate permitted by law, not to exceed I 1/2% per month. BAD CHECK In the event any payment is made by check, draft or order and said check, draft or order is dishonored by reason CHARGE: of insufficient funds in or on deposit with the drawee, the holder hereon may charge a service charge not to exceed $ 2~0.00 . SIGNATURE; You have signed this Note on Ihe Dale of Note in the presence of the person(s) identifying themselves below as witnesses. NOTICE; The following NOTICE applies if you were referred to us by a seller of consumer goods or services and a substantial portion of the proceeds of this loan is used for the purchase of consumer goods from that seller: NOTIC~ ANY HOLDER OF TI'liS CONSUb,/tER Ci'IEDIT CONTRACT IS SUBJECT TO ALL CLAiiVIS AND DEFENSES WitlCH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERV~ES O3TAINED WITll THE PROCEEDS HEREOF. RECOVERY HE~qEUNDF. R ElY THE DEBTOR SHALL NOT EXCEED AiVtOUNTS PAID BY THE Dk"BTOR H~LHEUNDER. CoPY RECEIVED: YoU acknowledge receipt of a completely filled-in copy o1' [his Note and a copy of the Federal Disclosure Statement · f .co a separate sheet. . SIC NAT U R[~'(~F'~RINC IPAL BORROWER Witness; Witness; L,S, (Seal; SIGNATURE OF OTHER BORROWER L.S. (Seal' SIGNATURE OF OTHER BORROWER SEE REVERSE SIDE FOR ADDITIONAL II~PORTANT TER~S {3-1-99) PAA261 PENNSYLVANIA CONSUMER DISCOUNT COMPANY ACT ACCOUNT NUMBER I TYPE DATE FINANCE CHARGE BEGINS TO A~CRUE 13491998 } H IF DIFFERENT FROM DATE OF NOTE MORTGAGOR(S) - DEBTOR(S) (NAMES & ADDRESS) JESSIC~'. A WILLIAMS 152 LAKE PT DR HAi{RISBURG, PA 17521 SECURED PARTY ~ MORTGAGEE AMERIC;~N GENERAL FINA/~CE, INC. 6 SOUTH HANOVER STREET CARLISLE, PA 17013 SECURITY AGREEMENT (CHATTEL MORTGAGE) Date of Note First Payment Other Payments Final Payment Amount of First Amount of Balloon Amount of Monthly Tota~ Number I Term of and this Mtg Due Date Due on Same Due Date Payment ~ Payment Payment of Payments Loan [n I Months DateofEach 12/07/03 $ 201.42 $ NONE $ 185.00 48 48 12/02/99 01/07/00 Month /~NNuAL PERCENTAGE RATE ~ FINANCE CHARGE I AMOUNT FINANCED TOTALOF PAYMENT~ 20.99 .~[ $ 2922.06 [ $ 5974.36 $ 8896.42 t KNOW ALL MEN BY THESE PRESENTS that the below named Mortgagor(s) hereby mortgages and pledges to the Mortgagee hereinabove named, (a) that certain motor vehicle(s) described herein, together with all equipment and accessories thereunto now and hereafter attached and/or (b) the hereinafter described personal property, situated at the address where Mortgagor now resides, as set forth in the hereinafter mentioned promissory note, as security for the payment of a promissory note in the amount, date and terms stated above, subiect to acceleration in time of payment in event of failure of Mortgagor to keep and pedorm certain conditions, provisions and stipulations therein and herein contained. Reference is hereby made to said promissonj note now on file in the office of Mortgagee for the particular provieions thereof. This mortgage shal[ aisc secure any obligations given by Mortgagor to Mortgagee, and any future advances', and for any further indebtedness which shall hereafter be owing to Mortgagee by Mortgagor; it is contemplated by the partiee hereto that future advances may be made which shail be secured by the herein described property and by virtue thereof this mortgage is given as security; and as security for the pedormance by Mortgagor of each of the covenants and conditions set forth below: The conditions of this mortgage are as follows: To secure payment of all sums due hereunder and under any other obligation given by Mortgagor to Mortgagee, Mortgagor does hereby grant, convey and mortgage unto said Mortgagee the herein described property to have and to hoid the same forever, provided that if said Mortgagor shall fully pay said Mortgagee all sums due in cash and shall keep and truly perform all agreements and covenants herein, this mortgage shall be void, otherwise to remain in full force and effect. Mortgagor warrants that the title of said property is vested in Mortgagor free of all liens and encumbrances. This chattel mortgage is given as security for money advanced. Mortgagor shall keep said property free from all attachments, executions, liens, laxes and encumbrances, shall not use the same nor permit it to be used illegally, for hire, or in any contest, and shall not remove the automobile from this state or remove the herein describe furniture from the'address where located on this date without the Mortgagee's written permission. Neither loss of nor injury to said property shall relieve Mortgagor from his obligations hereunder. Mortgagee, or the holder of this mortgage, is expressly given the right to go on public or private property in enforcing any of Mortgagee's rights hereunder without the same in any manner constituting a trespass against the Mortgagor(s) herein; consent to such entering by Mortgagee on public or private property is expressly given by Mortgagor(s). The property described herein shall be at the Mortgager's dsk and Mortgagor shall procure and maintain for the term hereof insurance against all physical damage risks at Mortgager's expense all in such form and for such amount as Mortgagee may legally require, the proceeds thereof to be payable to the Mortgagor and Mortgagee as their interests shall appear. In the event Mortgagor does not secure or maintain such insurance as Mortgagee may legally require to be in effect for the term hereof, the Mortgagee may declare this instrument in default or as creditor of the Mortgagor may purchase such insurance effective from the beginning of the term hereof and at any time, and from time to time thereafter, although nothing herein contained shall impose upon the Mortgagee the duty so to do and Mortgagee may add the cost thereof to Mortgager's indebtedness secured by this instrument; and the Mortgagor agrees to reimburse the Mortgagee for the actual cost of such insurance to the extent the same is not included in Mortgagees indebtedness owing to Mortgagee, the amount of such reimbursement together with interest thereon at an annual percentage rate equivalent to that charged on Mortgager's indebtedness to constitute an additional obligation of the Mortgagor hereunder and to be paid in equal installments over the term of the insurance. Nothing contained herein shall be construed to require you to obtain or maintain insurance on household goods. Mortgagors grant Mortgagee a security interest in any unearned premiums from any insurance Mortgagor has elected and purchased through Mortgagee in connection with this transaction which protects the account or collateral. Mortgagors grant Mortgagee the right, but not the obligation, to cancel such policies in the event of Mortgager's default, subject to any applicable r¢strictions under state law. If Mortgagee cancels the insurance, any unearned premium will be credited to this account or refunded to Mortgagor. Mortgagors, where authorized by law hereby assign to the Mortgagee any moneys not in excess of the unpaid balance of indebtednes~ which this inslrument secures which may become payable under such other insurance including return on unearned premiums, and directs an~ insurance company to make payment d(recl~y to Modgagee to be applfed to said unpatd indeblednes$ and hereby appoinls Mortgagee a~ attorney-in-fact to endorse any draft. [n the event of default under the terms of this instrument, Mortgagee is authorized to cancel said insurance and credit any premium refuhd received against such unpaid indebtedness. All policies may be retained by Mortgagee. Any insurance collected by Mortgagee may be applied at Mortgagee's option to the repair and restoration of said property, or upon the indebtedness of Mortgagor. Mortgagor agrees to repay Mortgagee on demand any payment made by Mortgagee preserving or protecting the lien of this mortgage against attachments, executions, and other claims of lien, Mortgagor shall pay all filing fees and state stamp taxes. Mortgagor authorizes the Mortgagee at Mortgagor's expense to execute and file on Modgagor's behalf a financing statement or statements or continuations thereof necessary to protect our security interest in the Collateral. Description of Mortgaged Property now located in or about Mortgagor's premises at the residence set forth above [in addition to the Moto~ Vehicle(s)], if any, described herein: All property listed as security in a certain Federal Disclosure Statement executed by and delivered to the Mortgagor(s) on even date. Year Make Model Body Type Vehicle identification No. N-U No, Cyls. i995 VW JETTA 3V~qVBS1H0SM066953 All of the covenants and obligations herein contained shall be considered joint and several covenants and obligations of each maker an co-maker hereof. IN WITNESS WHEREOF, the Mortgagor(s) have hereunto set their hands and seals on the day written above. ACCEPTED AMERICAN GENERAL FINANCE, INC. Name of Secured Party Its A t Secured Party (SEAL Mortgagors LIABILITY INSURANCE COVERAGE FO,R,, BODILY IIq;JURY I AND DAIVIAGE TO PROPERTY IS NOT INCLUDED. UN7051 (5-24-99) Security Agreement IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW AME]LICAN GENERAL FINANCE, INC. VS. JESSICA A. WILLIAMS No. 01-1606 ACTION IN EQUITY PRAECIPE TO THE PROTHONOTARY: Please reinstate the Complaint docketed to number 01-1606. REIDENBACH & HENDERSON Herbert P. Henderson, II, Esquire Attorney tbr Plaintiff 36 East King Street Lancaster, PA 17602 (717) 295-9159 Attorney I.D. No. 56304 SHERIFF'S RETURN - CASE2001-01606 P COUNTY OF CUMBERLAND NOT FOUND AMERICAN GENERAL FINANCE INC VS WILLIAMS JESSICA A R. Thomas Kline duly sworn according to law, says, that he made a diligent inquiry for the within named defendant, DEFENDANT WILLIA~MS JESSICA A unable to locate Her COMPLAINT - REPLEVIN ,Sheriff or Deputy Sheriff, who being search and in his bailiwick. but was He therefore returns the the within named DEFENDANT NOT FOUND , as to , WILLIAMS JESSICA A DEFT DOES NOT WORK AT ADDRESS GIVEN RETURNED NOT FOUND AS PER ATTNY Sheriff's Costs: Docketing 18.00 Service 6.20 Affidavit .00 ~__R/Th~nAs Kline Surcharge 10.00 z /Shej~ff of Cumberland County Not Found 5.00 39.20 KE~H REIDENBACH 05/30/2001 Sworn and subscribed to before me this J~- day of ~Z6"~/ A.D. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION LAW AMERICAN GENERAL FINANCE, INC. ) Plaintiff ) vs. ) ~-01 - JESSICA A. WILLIAMS ) ACTION IN EQUITY Defendant ) 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 YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association Two Liberty Avenue Carlisle, PA 17013 717-249-3166 REIDENBACH & HENDERSON Herbert P. Henderson, II Attorney ID No: 56304 36 East King Street Lancaster, PA 17602 (717) 295-9159 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW AMERICAN GENERAL FINANCE, INC. ) Plaintiff ) ) vs. ) CI-01- ) JESSICA A. WILLIAMS, ) ACTION Defendant ) IN EQUITY COMPLAINT IN REPLEVIN t. Plaintiff herein is AJaerican General Finance, Inc., a retailer financial services with a current office located at 6 south Hanover Street, Carlisle, Curaberland County, Pennsylvania 17013. 2. Defendant herein is Jessica A. Williams, an adult individual currently residing at 5069 Ritter Road, Mechanicsburg, Pennsylvania 17055. 3. On or about December 2, 1999, Defendant entered into a Loan Agreement with Plaintiff whereby Plaintiff agreed to loan Defendant and Defendant agreed to borrow $5,974.36 plus interest, for a total of $8,896.42. A true and correct copy of the Note is attached hereto, incorporated hereby by reference as though set forth at length, and marked Exhibit "A". 4. In order to secure repayment of the loan, Defendant granted Plaintiff a security interest in her 1995 Volkswagen Jetta automobile, Vehicle Identification No. 3VWVBS1HOSM066953, as evidenced by signing the enclosed Security Agreement (Chattel Mortgage), the same of which is attached hereto, incorporated herein by reference as though set forth at length, and marked Exhibit "B". 5. Plaintiff has a valid security iuterest in the automobile as evidenced by the document attached previously as Exhibit "B". 6. Defendant has defaulted under the contract by failing to make monthly payments when due. 7. Plaintiff believes, and therefore avers, that Defendant has possession of the automobile. 8. Defendant, despite knowing that she is in default, has failed to deliver possession of the automobile to Plaintiff. WHEREFORE, Plaintiff, kmerican General Finance, Inc., demands judgment and possession together with reasonable attorney fees, interest and costs. Respectfully submitted, P.E IDENBACH & HENDERSON Herbert P. Henderson, II Attorneys for Plaintiff 36 East King Street Lancaster, PA 17602 (717) 295-9159 Attorney I.D. No. 56304 VERIFICATION Herbert P. Henderson, II, Esquire, hereby states that he is attorney for Plaintiff in this matter, that he is authorized to make this Verification, and that the statements made in the foregoing Civil Action in Replevin are true and correct to the best os his knowledge, information and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pacs Section 4904, relating to unsworn falsification to authorities. ACCOUNT NUMBER TYPE DATE FINANCE CBARGE BEGINS TO ACCRUE 13491998 ti IF DIFFERENT FROM DATE OF NOTE SORROWER(S) NAME AND ADDRESS LENDER (WE, US, OUR) 3ESSICA A WILLIAMS 152 LAKE PT DR HARRISBURG, PA 17521 Da~e of Note Firs~ Payment I Other Payments Due Date I Due on Same Date of Each 12/02/99 0-1/07/00 Month. ~OTE AMERICAN GENERAL FINANCE, INC. 6 SOUTH HANOVER STREET CARLISLE, PA 17013 GENERAL · FINANCE Final Payment Amount of First Due Dale Payment 12/07/03 $ 201.42 Amount of Balloon Amount of Monthly Total Number Term of Payment Payment of Paymenls Loan in Months $ NONE $ 185 . 00 48 48 t,$NON]~ Premium to Life Insurance Co. (Jolnt Coverage) 10. Appraiser for AppraisalFee .... $~F_~_~ PAiD TON/A ~. $ 1 5 7.1 7 Premium to Life Insurance Co. (Single Coverage) 11. Tige Exam/Title Ins ........... $ NONE PAID TON/A 3. $~ON~. Premium to Disability Insurance Co. (Joint Coverage) 12, Abstract Fee ................ sNONE PAID TON/A 4. $ -- ~L.~.~J~ ~ Premium to Oisabilibif Insurance Co. (Single Coverage) 13, Paid on Prior Account with Lender sNONE 5. $ 29.57 Premium to P~operh/Insurance Go. $ 960.0014. Amount Paid to you or on your $ 5086. i 1 behalf ~temized below 6. $ NONE Paid to Public OfliciaJs for Amounl OI Cove(age $ 00 Certificate of Title Fees 7, $ gONE Paid to Public Oflicials for Recording and Releasing Fees ~ sNJA B. $ NONE Plemium lo Non-Filing Ins. Co. $5000 · 00 9. $ ~ ZJ~J~LT_ Premium to Involuntary Unemp. Ins. Co. A.$ 1 ~ 0 · 0 0 Service Charge (Prepald Finance Charge) sN / A - SN/A B.$NONE Brokers Fee Plepaid FINANCE CHARGE SN~ t5.$ _5~74.36 Amount Financed (Sum et I~nes I thru 14) m.$ ~22.06FINANCECHARGE -' -- -I,,.-' c.$ 20.99 % ANNUAL PERCENTAGE RA'I'E D.s 18.$_ 8896 · 42 Total of Payments (Paid to N/A ) SN/A 2 7 7 2.0 6 [nte,est (Discount) SN~ 16.42 Extended First Payment Due Date Charge.$N/A NOTE $10.1 1 Witness; Witness: ooo t (3-1-99) TENON CR INS TO~_CUSTOMER CUST/CARTREK N/A N/A N/A N/A N/A N/A YOU In this Note the words, "you, yours, and your'' mean each and all who signed it as Borrower· The words, "we, us and our" mean Lender (Creditor)· PROMISE TO PAY: You agree to pay the Total of Payments shown which includes the Amount Financed and Charges (including a service charge equal to the lesser of $1.50 for each $50.00 not to exceed $150 and, if applicable, a brokers fee) to ., maturity which have been precomputed at a rate authorized by law to yield the Annual Percentage Rate set fodh assuming all payments are made as scheduled. If Line 16D above is filled in, then you have requested an extended first payment due date and have been charged the above amount, If this loan is a renewal of an eadier loan from us, and this renewal is within 4 months of the date of that eadier loan, then there will be no service charge on this loan if only thc unpaid balance of the eadier loan is being' renewed. If an amount in excess of the unpaid balance of that eadier loan is being renewed or refinanced, the service charge is calculaled only upon the amount by which this loan exceeds the unpaid balance of the eadier loan, after crediting the unpaid balance o( such eadier lean with any refund of interest or discount that may have been due upon renewal or prepayment. DEMAND FEATURE: [~] Anytime after NA year(s) from the date of this loan we can demand the full balance and you will have to pay (if checked) the principal amount of the loan and all unpaid interest accrued to the day we make the demand. If we elect to exercise this option you will be given written notice of election at least 90 d~ys before payment in full is due. If you fail to pay we will have tho right to exorcise any rights permitted under the Note, Modgage or Deed of Trust that secures this loan. If we elect [o exercise this option, and the Nolo calls for a prepayment penal(y (hat would be due, there will bo no prepayment penal~y. DEFAULT, if you fail to make any required payment within 10 days of ils due dale, we may charge you 1 1/2% per month of DEFERRAL the amount past due, but not less than $1.00, AND EXTENSION We may postpone or defer, for a number of months equal to the number of installments in default, the payment of CHARGES: any installment in default for 60 days or more on which no default charge has been collected, or any olher installment if so requested and agreed. You further agree to pay a deferral charge equal (o 1 1/2% per month on the amount deferred for the period of deferral, but in no event shall the deferral charge be less than $1.00 if the period of deferment is 10 days or more. if we agree with you to extend any payment to the end of the contract, we may charge an extension fee of I 1/2% of the unpaid ~rincipal balance. If any unpaid balance remains after maturity of this contract, that entire unpaid balance wilt be considered in default and subject to the 1 1/2% per month default charge on any amounts remaining unpaid after judgment, you will pay interest at the highest judgment rate permilted by law, not to exceed 1 1/2% per month. DAD CHECK In the event any payment is made by check, draft or order and said check, draft or order is dishonored by reason CHARGE: of insufficient funds in or on deposit with the drawee, the holder hereon may charge a service charge not to exceed $ 20.00_. SIGNATURE: You have signed this Note on the Date of Note in the presence of the person(s) identifying themselves below as NOTICE: The following NOTICE applies if you wore referred to us by a seller of consumer 9ends or services and a substantial portion of the proceeds of this loan is used for the purchase of consumer goods from that seller: NC'FIDE ANY HOLDER OF THIS CONSU[AEH CFUE. DFF CONTRACT iS SUBJECT TO ALL. CLAIMS AND DEFENSES WHICH TtiE DFBTOR COULD ASSERT AGAINST THE SELLER OF ~OODS OR SEF[V~DES O,~TAINED WITH THE PROCEEDS HEllEOF. RECOVEHY HEREUNDER BY THE DEB'FOR SHALL NOr EXC~;;ED Ab;~OUNTS PAID [~Y THE DEBTOR HLHEUNDUH. COPY RECEIVED: You acknowledge receipt of a completely filled-in copy of [his Note and a copy of tt~e Federal Disclosure Statement · I .OQ a separate sheet. . SlaNATUREOF PRINOIPA BORRDW n L,S, SIGNATURE OF OTHER BORROWER L,S. (Seal) SIGNATURE OF OTHER BORROWER SEE REVERSE SIDE FOR ADDITIONAL I~PORTANT TER~S PAA2OI PENNSYLVAND% CONSUMER DISCOUNT COMPANY ACT ACCOUNT NUMBER I TYPE DATE FINANCE CHARGE BEGINS TO ACCRUE 13491998 I H F D FFERENT FROM DATE OF NOTE MORTGAGOR(S) - DEBTOR(S) (NAMES & ADDRESS) JESSICA A WILLIAMS 152 LAKE PT DR HARRISBURG, PA 17521 SECURED PARTY-MORTGAGEE AMERICAN GENERAL FINANCE, INC. 6 SOUTH HANOVER STREET CARLISLE, PA 17013 sECURITY AGREEMENT (C[qATTEL MORTGAGE) Date of Note First Payment Other Payments Final Paymentl Amount of First I Amount of Balloon Amount of Monthly Total Number Term of and this Mtg Due Date Due on Same Due Date Payment ~ Payment Payment of Payments Loan in Da[eof Each 12/07/03 $ 201.421 $ NONE $ 185.00 48 Months 12/02/99 01/07/00 Month 48 ANNUAL PERCENTAGE RATE ! FINANCE CHARGE ~ AMOUNT FINANCED TOTAL OF PAYMENTS 20.99 %[. $ 2922.06 ~ $ 5974.36 $ 8896.42 KNOW ALL MEN ~Y THESE PRESENTS that the below named Mortgagor(s) hereby mortgages and pledges to the Mortgagee hereinabove named, (a) that certain motor vehicle(s) described herein, together with a!l equipment and accessories thereunto now and hereafter attached and/or (b) the hereinafter described personal property, situated at the address where Mortgagor now resides, as set forth in the hereinafter mentioned promissory note, as security for the payment of a promissory note in the amount, date and terms stated above, subject to acceleration in time of paymenl in event of failure of Mortgagor to keep and pedorm certain conditions, provisions and stipulations therein and herein contained. Reference is hereby made to said promissory note now on file in the office of Mortgagee for the particular provisions thereof. This modgage shall also secure any obligations given by Mortgagor to Mortgagee, and any future advances; and for any further indebtedness which shall hereafter be owin9 to Mortgagee by Mortgagor; it is contemplaled by the parties hereto that future advances may be made which shall be secured by the herein described property and by virtue thereof this modgage is given as security; and as security for the performance by Mortgagor of each of the covenants and conditions set forth below: The conditions of this modgage are as follows: To secure paymcnt of all sums due hereunder and under any other obligation given by Mortgagor to Mortgagee, Mortgagor does hereby grant, convey and mortgage unto said Mortgagee the herein described property to have and to hold the same forever, providcd that if said Mortgagor shall fully pay said Mortgagee ali sums due in cash and shall keep and truly perform ail agreements and covenants herein, this mortgage shall be void, otherwise to remain in full force and effect. Modgagor warrants that the title of said property is vested in Mortgagor free of all liens and encumbrances. This chattel mortgage is given as security for money advanced. Mortgagor shall keep said property free from all attachments, executions, tiens, taxes and encumbrances, shall not use the same nor permit il to be used illegally, for hire, or in any contest, and shall not remove the automobile from this stale or remove the herein describe furniture from the'address where located on this date without the Mortgagee's written permission. Neither loss of nor injury to said propedy shall relieve Mortgagor from his obligations hereunder. Mortgagee, or the holder of this mortgage, is expressly given the right to go on public or private property in enforcing any of Mortgagee's rights hereunder without the same in any manner constituting a trespass agains[ the Mortgagor(s) herein; consent to such entering by Mortgagee on public or private property is expressly given by Mortgagor(s). The property described herein shall be at the Mortgager's risk and Mortgagor shall procure and maintain for the term hereof insurance against all physical damage risks at Mortgager's expense all in such form and for such amount as Mortgagee may legally require, the proceeds thereof to be payable to the Mortgagor and Mortgagee as their interests shall appear. In the event Mortgagor does not secure or maintain such insurance as Modgagee may legally require to be in effect for [he term hereof, the Mortgagee may declare this instrument in default or as creditor of the Mortgagor may purchase such insurance effective from the beginning of the term hereof and at any time, and from time to lime thereafter, although nothing herein contained shall impose upon the Modgagee the duty so to do and Mortgagee may add the cost thereof to Mortgager's indebtedness secured by this instrument; and the Mortgagor agrees to reimburse the Mortgagee for the actual cost of such insurance to the extent the same is not included in Mortgager's indebtedness owing 1o Mortgagee, the amount of such reJmburson',lent tOgothcr with interest thereon at an annual percentage rate equivalent to that charged on Mortgager's indebtedness to constitute an additional obligation of the Mortgagor hereunder and to be paid in equal installments over the term of the insurance. Nothing contained herein shall be construed to require you to obtain or maintain insurance on household goods. Mortgagors grant Mortgagee a security interest in any unearned premiums from any ~nsurance Modgagor has elected and purchased through Mortgagee in connection with this transaction which protects the account or collateral. Mortgagors grant Mortgagee the right, but not the obligation, to cancel such policies in the event of Mortgager's default, subject to any applicable rpstrictions under state law. If Mortgagee cancels the insurance, any unearned premium will be credited to this account or refunded to Mortgagor. Mortgagors, where authorized by law hereby assign to the Mortgagee any moneys not in excess of the unpaid balance of indebtedness which this instrument secures which may become payable under such other insurance including return on unearned premiums, and directs any insurance company lo make payment al(racily fo Mortgagee to be app/ied to said unpaid/hdeb/odnoss and hereby appoinls Moflgagoe as attorney-in-fact to endorse any draft. Irt the event of default under the terms of [his instrumcnt, Mortgagee is aulhorized to cancel said insurance and credit any premium ~;efuhd received against such unpaid indebtedness. All policies may be retained by Mortgagee, Any insurance collected by Mortgagee may be applied at Mortgagee's option to the repair and restoration of said properly, or upon the indebtedness of Mortgagor. Mortgagor agrees to repay Mortgagee on demand any payment made by Mortgagee preserving or protecting the lien of this mortgage against attachments, executions, and other claims of lien, Mortgagor shall pay all filing fees and state stamp taxes. Mortgagor authorizes the Mortgagee at Mortgager's expense to execute and file on Mortgager's behalf a financing statement or statements or continuations thereof necessary to protect our security interest in the Collateral. Description of Mortgaged Property now located in or about Mortgager's premises at the residence set forth above [in addition to the Motor Vehicle(s)), if any, described herein: All property listed as security in a certain Federal Disclosure Statement executed by and delivered to the Mortgagor(s) on even date. Year Make Model Body Type Vehicle Identification No. N-U No, Oyl~.] 1995 VW JETTA 3VWVBS1HOSM066953 All of the covenants and obligations herein contained shall be considered joint and several covenants and obligations of each maker and co-maker hereof. IN WITNESS WHEREOF, the Modgagor(s) have hereunto set their hands and seals on the day written above, ACCEPTED AMERICAN GENERAL FINANCE, INC. Name of Secured Party Its A t Secured Party (SEAL) Mortgagors LIABtLITY INSURANCE COVERAGE FOR BODILY IIq;JIJRY AND DAMAGE TO PROPERTY'"" S NOT NCLLfDE3. UN705t (5-24-99) Security Agreement Jack F. Hurley, Jr., Esquire Attorney I.D. No. 24414 Dean F. Piermattei, Esquire Attorney I.D. No. 53847 Timothy J. Nieman, Esquire Attorney I.D. No. 66042 RHOADS & SINON LLP One South Market Sq., 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 BAA HARRISBURG, INC., Plaintiff, SUSQUEHANNA AREA REGIONAL, AIRPORT AUTHORITY, Defendant. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION NO. 01-4097 EQ IN EQUITY MOTION TO DISMISS PLAINTIFF'S AMENDED MOTION FOR PRELIMINARY INJUNCTION NOW COMES, Susquehanna Area Regional Airport Authority ("SARAA"), by and through its undersigned counsel, and files this Motion to Dismiss BAA Harrisburg, Inc.'s Amended Motion for Preliminary Injunction, stating as follows: 1. Plaintiff BAA Harrisburg, Inc. ("BAAH") initiated this action on July 2, 2001. In its Complaint, BAAH alleges that SARAA improperly terminated the Agreement for Management, Operation and Maintenance of Harrisburg International Airport and Capital City Airport (the "Agreement") between the parties. 2. On July 2, 2001, this Court heard argument and created a record with respect to BAAH's Motion for Special Injunction. At that proceeding, counsel for SARAA introduced as "SARAA Exhibit 1" the Airport Operating Certificate issued by the FAA and currently in effect 394165.1 for the operation of the Harrisburg International Airport ("HIA"). Without a valid FAA Airport Operating Certificate, an entity, such as BAAH, is prohibited from operating an airport. See 14 C.F.R. §101. 3. In obvious recognition that it cannot operate the airport without a valid Airport Operating Certificate, on July 3, 2001, BAAH filed an Amended Motion for Preliminary Injunction. In this document, BAAH alleges that SARAA procured the FAA Airport Operating Certificate through "fraudulent representations to BAAH and concealment of its actions...", (Amended Motion for Preliminary Injunction, ~]36), and at the time that application was made, SARAA did not have sufficient employees to "perform safety, maintenance and operations" at the Airports, (Amended Motion for Preliminary Injunction, ¶44). By making such allegations, BAAH is necessarily asking this Court to determine whether the FAA Airport Operating Certificate was properly issued. 4. BAAH is now asking this Court to order SARAA to reverse a decision of the FAA and have the FAA issue an Airport Operating Certificate so that BAAH can operate the Airports. 5. Without the proper FAA issued Airport Operating Certificate, BAAH cannot operate the Airports. Thus, even if this Court were to find that as a matter of state law that SARAA improperly terminated the Agreement - which it did not - BAAH cannot operate the Airports with out the FAA Airport Operating Certificate. Since this Court lacks jurisdiction to issue the Certificate or consider challenges to the issuance of the Certificate, BAAH's Motion must be dismissed. 2 6. This Court lacks jurisdiction to issue the Airport Operating Certificate necessary for BAAH to obtain the relief that it seeks. 7. The FAA, by issuing the Airport Operating Certificate to SARAA, has already determined that SAP, AA can safely operate the airport. 8. In its Amended Motion for Preliminary Injunction, BAAH suggests that the Airport Operating Certificate was improperly issued. To the extent Plaintiff seeks to challenge the method by which the Airport Operating Certificate was issued, such challenge must be made to the FAA, with judicial review by thc Federal Courts of Appeals, and not this Court since the FAA and Federal Courts are vested with exclusive jurisdiction in this area. 9. Federal law preempts conflicting state law with respect to airport and aviation safety. Since federal law preempts conflicting state law and regulation as it relates to aviation safety, this Court lacks the authority to issue any order contrary to the FAA's decision to issue the Airport Operating Certificate to SARAA, including, an order requiring SARAA to overturn the FAA's decision on who should operate the Airports. As such, BAAH's Amended Motion for Preliminary Injunction must be dismissed. 10. The irreparable harm alleged by BAAH either no longer exists, is outside the jurisdiction of this Court, or was waived by BAAH, and, as such, BAAH's Amended Motion for Preliminary Injunction should be dismissed. 11. Since federal law preempts conflicting state law on issues concerning airport and aviation safety and since all decisions concerning aviation safety, particularly questions concerning who can safely operate an airport, are lefl to the FAA, to be reviewed only by the Federal Courts of Appeals, this Court should decline to consider any issues related to airport or aviation safety and instead defer to the FAA and the Federal Courts of Appeals. 12. BAAH and SARAA have expressly agreed that neither party can recover consequential damages - such as alleged damages to reputation - in an action under the Agreement. See (Agreement, ¶24.04)? Since damages to reputation constitute indirect or consequential damages expressly precluded by the plain language of the contract between the parties, and, as a matter of law, BAAH cannot obtain injunctive relief on this basis. WHEREFORE, SARAA respectfully requests that this Court dismiss BAAH's Amended Motion for Preliminary Injunction on the alleged bases that the FAA improperly issued the airport operating certificate, aviation safety, and/or harm to BAAH's reputation or goodwill. RHOADS & S1NON LLP Date: Jack F. H~, Jr. Dean F~iermattei Timo~y J. Nieman One South Market Square P.O. Box 1146 Harrisburg, PA 17109 (717) 233-5731 Attorneys for Susquehanna Area Regional Airport Authority A copy of the Agreement is attached to BAAH's Amended Complaint as Exhibit "A". 4 CERTIFICATE OF SERVICE I hereby certify that on this ; ~ .P~day of ~,.~ ,2001, a true and correct copy of the foregoing Motion to Dismiss Plaintiff's Amended Motion for Preliminary Injunction was served by means of hand delivery upon the following: Donald Kaufman, Esquire McNees, Wallace and Nurick 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Salvia E. Gmbb, F. aquire, l.D.g'/5897 Jolm DeLo~nzo, F,~quire, LD.g'/2190 C~l~l~rl, IOa-man & Shipman, P.G P. O. Box 126g Hatt~ PA 17108-1268 (717) 234-4161 Attorneys for D*fendant (}UNN MOWERY INSURANCE GROUP, INC. FfI~A PENN PROPERTY AND CASUALTY, INC, AND OAUOHEN INSURANCE, INC. Plaintiffs, MARK T. REILLY, individually and REILLY INSURANCE GROUP, INC. COURT OF COMMON pLEAS CUMBERLAND, COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY NO. 01-3560 JURY TRIAL DEMANDED DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT AND NOW, comes Defendants, Mark Reilly and Reilly Insurance Group, Inc., by and through counsel, Goldberg, Katzman & Shipman, P.C., who file these Preliminary Objections to Plaintiffs' Complaint by respectfully stating the following: 1. Plaintiffs filed their Complalm on June 8, 2001. 2. Plaintiffs allege misleadingly and erroneously that ail emities, Gunn Mowery Insurance, Group, Inc. ("Gunn"), Penn Property and Casualty, Inc. ("Penn"), and Gaughen Insurance, Inc. C'Gaughen") are the same. (See Plaintiff's Complaint, attached hereto as Exhibit A, ¶l and 3). 3. Plaintiffs allege that the Defendant, Mark Reilly, has violated a valid Solicitor Agreement by engaging in the solicitation of Plaintiffs' clients. (See Exhibit A, ¶16). 4. Plaintiffs allege that they are entitled to an injunction and money damages for these actions. (See Exhibit A). 5. Plaintiffs have alleged the following causes of action against Defendants: Breach of Contract, Unlawful Conversion/Theft of Trade Secrets, Intentional Fraud/Misrepresentation, Breach of Fiduciary Duty, Tortious Interference with Contractual Relationships, Unfair TradeJUnfair Competition. COUNTS I AND m AS TO GAUGHEN INSURANCE, INC. Preliminary Objection for Lack of Capacity to Sue 6. The averments contained in Paragraphs 1 through 5 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 7. Pa. R.C.P. 1028(a) provides, in relevant part, "Preliminary objections may be filed by any party to any pleading and are limited to the following grounds: lack of capacity to sue... 10. Mowery. 11. Plaintiff, Gaughen, attempts to bring this action against the Defendants. Paragraph 1 of the Solicitor Agreement (the "Agreement")(Exhibit B) identifies the parties to the Agreement as Mark T. Reilly and Penn Property and Casualty Inc. Gaughen Insurance is a separate and distinct entity from Penn Property and Gunn The Agreement comains no reference to Gaughen. The Agreement contains no assignability provision. 12. The Complaint identifies Craughen as the "producing" ann of Gunn Mowery. (See Paragraph 3 of Complaint.) No such legal definition or description is recognized under 2 Pennsylvania corporate law. 13. Gaughen is a separate legal entity and not party to the contract and therefore, it is wholly without standing to bring an action for breach of the Agreement. WHEREFORE, Defendants respectfully request that this Honorable Court dismiss, with prejudice, Counts I and IH of Plaintiffs' Complaint with respect to Gaughen for lack of capacity to bring this suit. Preliminary Objection for Legal Insufficiency of a Pleading fDemurrer) 14. The averments contained in paragraphs 1 through 13 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 15. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: legal insufficiency of a pleading (demurrer)." 16. Plaintiff, Gaughen, attempts to bring this action against the Defendants. 17. Paragraph 1 of the Agreement identifies the parties to the Agreement as Mark T. Reilly and Penn Property and Casualty Inc. 18. Gaughen is a separate and distinct entity from Penn Property and Gunn Mowery. 19. Gaughen is a separate legal entity and not party to the contract and therefore, it is wholly without standing to bring an action for breach of the Agreement. WHEREFORE, Defendants respectfully request that this Honorable Court enter a Demurrer to Counts I and HI of Plaintiffs' Complaint with respect to Gaughen. In the alternative, Defendants respectfully request that this Honorable Court order Plaintiffs to file a more specific pleading with regard to this alleged cause of action. COUNTS I, H, HI, AND IV AS TO DEFENDANT REILLY INSURANCE GROUP, INC. Preliminary Objection for Lack of Capacity to Sue 20. The averments contained in Paragraphs 1 through 19 of Defendants' prelimina~ objections are incorporated herein as though set forth in their entirety. 21. Pa. R.C.P. 1028(a) provides, in relevant part, "Preliminary objections may be filed by any party to any pleading and are limited to the following grounds: lack of capacity to sue... 22. Group, Inc. 23. Plaimiffs attempt to bring this action against the Defendant, Reilly Insurance Paragraph 1 of the Agreement identifies the parties to the Agreement as Mark T. Reilly and Penn Property and Casualty Inc. 24. Reilly Insurance Group, Inc. is a separate and distinct entity from Mark Reilly and not party to any contract with Plaintiffs. 25. The Agreement contains no assignability provision. 26. All alleged conduct which is subject of these Counts is separate and distinct from Reilly Insurance Group, Inc. 27. Reilly Insurance Group, Inc. is a separate legal entity and not party to the contract and therefore, these Counts can not be sustained against it. WltlrREFORE, Defendants respectfully request that this Honorable Court dismiss, with prejudice, Counts I, II, III and IV of Plaintiffs' Complaint with respect to Reilly Insurance Group, Inc. for lack of capacity to bring this suit. Preliminary Objection for Legal Insufficiency of a Pleading/Demurrer~ 28. The averments contained in paragraphs 1 through 27 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 29. Pa.R.C.P. 1028(a)(4) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: legal insufficiency of a pleading (demurrer)." 30. Plaintiffs attempt to bring this action against the Defendant, Reilly Insurance Group, Inc. 31. Paragraph 1 of the Agreement identifies the parties to the Agreement as Mark T. Reilly and Penn Property and Casualty Inc. 32. Reilly Insurance Group, Inc. is a separate and distinct entity from Mark Reilly and not party to any contract with Plaintiffs. 33. The Agreement contains no assignability provision. 34. All alleged conduct which is subject of these Counts is separate and distinct from Reilly Insurance Group, Inc. 35. Reilly Insurance Group, Inc. is a separate legal entity and not party to the contract and therefore, these Counts can not be sustained against it. WHEREFORE, Defendants respectfully request that this Honorable Court enter a Demurrer to Counts I, II, III and IV of Plaintiffs' Complaint as to Reilly Insurance Group. In the alternative, Defendants respectfully request that this Honorable Court order Plaintiffs to file a more specific pleading with regard to this alleged cause of action. COUNT ! - BREACH OF CONTRACT Preliminary Objection for Legal Insufficiency of a Pleadina (Demurrer) 36. The averments contained in Paragraphs 1 through 35 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 37. Pa.R.C.P. 1028(a)(4) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: legal insufficiency of a pleading (demurrer)." 38. Plaintiffs fall to allege in their Complaint the elements necessary to state a prima facie case for Breach of Contract in Pennsylvania. Specifically, Plaintiff fails to allege which clients that Defendants have solicited. 39. Plaintiff also fails to specifically allege which clients/customers have chosen to place their business elsewhere, namely with Reilly Insurance Group, Inc. do to actions of the Defendants. 40. the contract. WHEREFORE, Defendants respectfully request that this Honorable Court enter a Demurrer to Count I of Plaintiffs' Complaint. In the alternative, Defendants respectfully request that this Honorable Court order Plaintiffs to file a more specific pleading with regard to this alleged cause of action. Preliminary Objection for Insufficient Specificity of a Pleading, 41. The averments contained in Paragraphs 1 through 40 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. Accordingly, by the terms of the alleged Agreement, there has not been a breach of 6 42. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: insufficient specificity ora pleading." 43. The above referenced Count does not contain sufficient specificity to apprize Defendants of which clients they alleged solicited. 44. It is not possible for Defendants to prepare a defense to such vague allegations. WI~EREFORE, Defendants respectfully request that this Honorable Court strike this Count fi.om Plaintiffs' Complaint, or in the alternative that Plaintiffs be required to file a more specific pleading with regard to these allegations. COUNT II- UNLAWFUL CONVERSION/THEFT OF TRADE SECRETS Preliminary Objection for Lack of Specificity of a Pleading, 45. The averments contained in Paragraphs 1 through 44 nfDefendants' preliminary objections are incorporated herein as though set forth in their entirety. 46. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: insufficient specificity of a pleading." 47. The above referenced Count does not contain sufficient specificity to apprize Defendants of specifically which trade secrets were converted or stolen. 48. Additionally, Plaintiffs admit in their complaint that they voluntarily gave information to Mr. Reilly which now they are claiming he stole. 49. While it is impossible for the Defendants to ascertain from the complaint whether the information that was voluntarily provided to Mr. Reilly is now the "trade secrets" that he alleged stole, Pennsylvania law requires that the complaining party take steps to safeguard their trade secrets. 50. 51. It is not possible for Defendants to prepare a defense to such vague allegations. Moreover, Defendants are required to object to such vague and ambiguous allegations or Plaintiff may be able to amend its cause of action after the statute of limitations has expired. See Conner v. Allegheny Gen, Hosp., 501 Pa. 306, 461 A.2d 600 (1983). WItEREFORE, Defendants respectfully request that this Honorable Court strike this Count from Plaintiffs' Complaint, or in the alternative that Plaimiffs be required to file a more specific pleading with regard to these allegations. Preliminary Objection for Legal Insufficiency of a Pleading (Demurrer) 52. The averments contained in Paragraphs 1 through 51 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 53. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading.and are limited to the following grounds: legal insufficiency of a pleading (demurrer)." 54. The above referenced Count does not contain sufficient specificity to apprize Defendants of specifically which trade secrets were converted or stolen. 55. Additionally, Plaintiffs admit in their complaint that they voluntarily gave information to Mr. Reilly which now they are claiming he stole. 56. While it is impossible for the Defendants to ascertain from the complaint whether the information that was voluntarily provided to Mr. Reilly is now the "trade secrets" that he alleged stole, Pennsylvania law requires that the complaining party take steps to safeguard their trade secrets. 57. It is not possible for Defendants to prepare a defense to such vague allegations. 58. Plaintifftherefore fails to demonstrate that they are entitled to the relief requested. WHEREFORE, Defendants respectfully request that this Honorable Court enter a Demurrer to Count II of Plaintiffs' Complaint. In the alternative, Defendants respectfully request that this Honorable Court order Plaintiffs to file a more specific pleading with regard to this alleged cause of action. COUNT m- INTENTIONAL FRAUD/MISREPRESENTATION Preliminary Objection for Legal Insufficiency of a Pleadin~ (Demurrer~ 59. The averments contained in paragraphs 1 through 58 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 60. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: legal insufficiency of a pleading (demurrer)." 61. Count III of Plaintiffs' Complaint purports to state a claim for fraud/misrepresentation. 62. A required element of a claim for fraud is that the maker of an alleged fraudulent statement intended to induce action by a recipient of an alleged representation. 63. Plaintiffs have failed or refused to allege that the Defendant intended to induce reliance by anyone on Defendants' alleged representations, or to specifically identify any person that Plaintiff intended to induce by his alleged representations. 64. contract. 65. Plaintiff generally states that the Defendant stated he would honor an invalid Such statements can not be fraudulent when later the Defendant learns that the 9 Plaintiffs are attempting to extort additional sums of money from him. 66. Plaintiffs have failed or refused to plead Plaintiffs' alleged fraud with particularity, as required by Pa. R.C.P. 1019(b). WHEREFORE, Defendants respectfully request that this Honorable Court enter a Demurrer to Count Ill of Plaintiffs' Complaint. In the alternative, Defendants respectfully request that this Honorable Court order Plaintiffs to file a more specific pleading with regard to this alleged cause of action. Preliminary Objection for Insufficient Soecificity of a Pleading 67. The averments contained in Paragraphs 1 through 66 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 68. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: insufficient specificity of a pleading." 69. The above referenced Count HI does not contain sufficient specificity to apprize Defendants the elements of this cause of action. 70. It is not possible for Defendants to prepare a defense to such vague allegations. 71. Moreover, Defendants are required to object to such vague and ambiguous allegations or Plaintiff may be able to amend its cause of action at~er the statute of limitations has expired. See Conner v. Allegheny Gen. Hosp~, 501 Pa. 306, 461 A.2d 600 (1983). WItEREFORE, Defendants respectfully request that this Honorable Court strike this Count from Plaintiffs' Complaint, or in the alternative that Plaintiffs be required to file a more specific pleading with regard to these allegations. 10 Preliminary Objection for Failure of Pleading to Conform to Law or Rule of Court 72. The averments contained in Paragraphs 1 through 71 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 73. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: failure of a pleading to conform to law or role of COUrt .... " 74. Count III consists of a claim of fraud. 75. Pa. R.C.P. 1019(b) requires "Averments of fraud or mistake shall be averred with particularity .... ' 76. Plaintiffs have failed to follow this role of court. WHEREFORE, Defendants respectfully request that this Honorable Court strike Count III from Plaintiffs' Complaint, or in the alternative that Plaintiffs be required to comply with the above role of court with regard to these allegations. COUNT IV - BREACH OF FIDUCIARY DUTY Preliminary Objection for Lack of Specificity of a Pleading 77. The averments contained in Paragraphs 1 through 76 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 78. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: insufficient specificity of a pleading." 79. The above referenced Count does not contain sufficient specificity to apprize Defendants of specifically which duty that he/they breached. 11 80. As stated above, Plaintiffs admit in their complaint that they voluntarily gave information to Mr. Reilly. 81. Plaintiffs later aver that this action was somehow improper. 82. While it is impossible for the Defendants to ascertain from the complaint whether these actions constitute his breach of fiduciary duty, such behavior does not constitute a breach of fiduciary duty. 83. It is not possible for Defendants to prepare a defense to such vague allegations. 84. Moreover, Defendants are required to object to such vague and ambiguous allegations or Plaintiffmay be able to amend its cause of action after the statute of limitations has expired. See Conner v. Allegheny Gen. Hosp., 501 Pa. 306, 461 A.2d 600 (1983). WltEREFORE, Defendants respectfully request that this Honorable Court strike Count IV from Plaintiffs' Complaint, or in the alternative that Plaintiffs be required to file a more specific pleading with regard to these allegations. Preliminary Objection for Legal Insufficiency of a Pleading [Demurrer) 85. The averments contained in Paragraphs 1 through 84 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 86. PaR.CP. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: legal insuffidency of a pleading (demurrer)." 87. The above referenced Count does not contain sufficient specificity to apprize Defendants of specifically how they allegedly breached a fiduciary duty. 88. Additionally, Plaintiffs fail to identify the duty allegedly breached. 89. The actions complained of in the Complaint, taken as a whole, do not constitute 12 breach of fiducia~ duty 90. Plalntifftherefore fails to demonstrate that it is entitled to, and indeed it is not entitled to, the relief sought. WHEREFORE, Defendants respectfully request that this Honorable Court enter a Demurrer to Count IV of Plaintiffs' Complaint. In the alternative, Defendants respectfully request that this Honorable Court order Plaintiffs to file a more specific pleading with regard to this alleged cause of action. COUNT V - TORTIOUS INTERFERENCE WITH CONTRACTUAL RELATIONS Preliminary Obiection for Legal Insufficiency of a Pleading ~Demurrer) 91. The averments contained in paragraphs I through 90 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 92. PaR. C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: legal insufficiency of a pleading (demurrer)." Count V purports to state a claim for tortious interference with contractual 93. relations. 94. The above referenced Count does not contain sufficient specificity to apprize Defendants of how they interfered with the Plaintiffs' business relationships, if any. 95. The Plaintiffs have failed to aver that Defendants, solicited "without a privilege to do so, induce[d] or otherwise purposely cause[d] a third person not to (a) perform a contract with [Plaimitt], or (b) enter into or continue a business relation with [Plaintiff]." Bid v. Philadelohia Elec. Co., 402 Pa. 297, 300-01,167 A.2d 472, 474 (1961). Plaintiff fails to show 13 that Defendants acted (1) for the purpose of causing this specific type of harm to Plaintiff, (2) that such act was unprivileged, and (3) that harm resulted therefrom. See id. 96. Indeed, the Plaintiffs' cannot show they had any comract with any person or entity which the Defendants alleged interfered with. 97. Plaintiff have failed or refused to identify one party that was allegedly interfered with. 98. Plaintiff fails to allege, identify or attach a copy of any specific contract with which Defendant has interfered. 99. Failure to attach a copy of any such contract is in violation of Pa. R.C.P. 10190). WHEREFORE, Defendants respectfully request that this Honorable Court enter a Demurrer to Count V of Plaintiffs' Complaint. In the alternative, Defendants respectfully request that this Honorable Court order Plaintiffs to file a more specific pleading with regard to this alleged cause of action. Preliminary Objection for Insufficient Specificity of a Pleadin~ 100. The averments contained in Paragraphs 1 through 99 of Defendants' prelimina~ objections are incorporated herein as though set forth in their entirety. 101. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: insufficient specificity of a pleading." 102. The above referenced Count does not contain sufficient specificity to apprize Defendants of how they interfered with the Plaintiffs' business relationships, if any. 103. The Plaintiffs have failed to aver that Defendants, solicited "without a privilege to do so, induce[d] or otherwise purposely cause[d] a third person not to (a) perform a contract 14 with [plaintiff], or (b) enter into or continue a business relation with [Plaintiff]." Birl v. Philadelphia Elec. Co, 402 Pa. 297, 300-01, 167 A.2d 472, 474 (1961). Plaintiff fails to show that Defendants acted (1) for the purpose of causing this specific type of harm to Plaintiff, (2) that such act was unprivileged, and (3) that harm resulted therefrom. See id. 104. Indeed, the Plaintiffs' cannot show they had any contract with any person or entity which the Defendants alleged interfered with. 105. Plaintiff have failed or refused to identify one party that was allegedly interfered with. 106. Plaintiff fails to allege, identify or attach a copy of any specific contract with which Defendant has interfered. 107. It is not possible for Defendants to prepare a defense to such vague allegations. 108. Moreover, Defendants are required to object to such vague and ambiguous allegations or Plaintiff may be able to amend its cause of action after the statute of limitations has expired. See Conner v. Allegheny Gen. Hosp., 501 Pa. 306, 461 A.2d 600 (1983). WIiEREFORE, Defendants respectfully request that this Honorable Court strike this Count from Plaintiffs' Complaint, or in the alternative that Plaintiffs be required to file a more specific pleading with regard to these allegations. COUNT VI - UNFAIR TRADE/UNFAIR COMPETITION Preliminary Objection for Legal Insufficiency of a Pleading CDemurrer] 109. The averments contained in paragraphs 1 through 108 of Defendants' pre'hminary objections are incorporated herein as though set forth in their entirety. 15 110. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: legal insuffidency of a pleading (demurrer)." Count VI purports to state a claim for unfair trade and competition. The above referenced Count does not contain sufficient averments to allege a 111. 112. cause of action. 113. The Plaintiffs have failed to aver any meaningful cause of action that is recognized under Pennsylvania law. WHEREFORE, Defendants respectfully request that this Honorable Court enter a Demurrer to Count VI of Plaintiffs' Complaint. In the alternative, Defendants respectfully request that this Honorable Court order Plaintiffs to file a more specific pleading with regard to this alleged cause of action. Preliminary Objection for Insufficient Specificity of a Pleading 114. The averments contained in Paragraphs 1 through 113 of Defendauts' preliminary objections are incorporated herein as though set forth in their entirety. 115. Pa.R.C.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: insufficient specificity of a pleading." 116. The above referenced Paragraphs do not contain sufficient specificity to apprize Defendants of how they competed unfairly. 117. Plaintiffs fail to allege or identify any specific unfair trade practice. 118. It is not possible for Defendants to prepare a defense to such vague allegations. WHEREFORE, Defendants respectfully request that this Honorable Court strike this Count from Plaintiffs' Complaint, or in the alternative that Plaintiffs be required to file a more 16 specific pleading with regard to these allegations. ALL COUNTS Preliminary Objection for Lack of Jurisdiction and Improper Venue 119. The averments contained in Paragraphs 1 through 118 of Defendants' preliminary objections are incorporated herein as though set forth in their entirety. 120. Pa. KC.P. 1028(a) states, "Preliminary Objections may be filed by any party to any pleading and are limited to the following grounds: lack of jurisdiction.., improper venue.,." 121. The Agreement which is the basis for Plaintiffs' Claims contains an arbitration clause in Paragraph 11 therein. 122. In as much as any of the Counts in the Plaintiffs' Complaint involve causes of actions not excluded pursuant to Paragraph 11 of the Agreement, these causes must be determined by arbitration. WHEREFORE, Defendants respectfully request that this Honorable Court strike the Complaint for lack of jurisdiction and improper venue. 17 Date: 6~000.1 Respectfully submitted, GOLDBERG, KATZMAN & SHIPMAN, P.C. Jo~orenzo, Esqu'~~-~ I.D[~. 72190 Steven E. Grubb, Esquire I.D. No. 75897 320 Market Street P.O. Box 1268 Harrisburg, PA 17108-1268 Telephone: (717) 234-4161 Attorneys for Defendants 18 CERTIFICATE OF SERVICE On this 13th day of July, 2001, I certify that a copy of the foregoing DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT was served upon the following counsel of record for Plaintiff by placing the same in the United States mail, first class, postage prepaid, addressed as follows: Charles E. Haddick, Jr., Esquire Marshall & Haddick, P.C. 20 South 36th Street Camp Hill, PA 17011 GOLDBERG, KATZMAN & SHIPMAN, P.C. Ely ,,~~ ID #72190 320 Market Street Post Office Box 1268 Harrisburg, PA 17108-1268 (717) 234-4161 Attorneys for Defendants EXHIBIT "A" GUNN MOWERY INSURANCE GROUP, INC. F/K/A PENN PROPERTY AND CASUALTY, INC. AND GAUGHEN INSURANCE, INC. 1023 Mumma Road Camp Hill, PA 17011-0900 Plaintiffs MARK T. REILLY, individually 815 Surrey Court Camp Hill, PA 17011 and REILLY INSURANCE GROUP, INC. 3901 North Front Street Harrisburg, PA 17110 Defendants COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNA. CIVIL ACTION - EQUITY JURY TRIAL DEMANDED COMPLAINT AND NOW, come Plaintiffs, Gunn Mowery Insurance Group, Inc., f/Ida Penn Property and Casualty, Inc.; and Gaughen Insurance, Inc., by and through their counsel, Marshall & Haddick, P.C., by Charles E. Haddick, Jr., Esquire, and aver the following: TRUE COPY FROM RECORD Iff Te~tlflXNly wnere0f, I here unto set my hano and tim_ ~ of said C. xx~ at Carlisle. ~, BACKGROUND THE PARTIES 1. Plaintiffs, Gunn Mowery Insurance Group, Inc., f/k/a Penn Property and Casualty, Inc.; and Gaughen Insurance, Inc. (hereinafter "Gunn Mowery" and "Gaughen"), are Pennsylvania corporations with a principal address as 1023 Mumma Road, Camp Hill, Cumberland County, Pennsylvania 17011-0900. 2. Gunn Mowery and Gaughen are in the business of selling and marketing insurance and other financial services products. 3. At all times material hereto, Gaughen served as a producing arm of Gunn Mowery, and all insurance business which is the subject of this complaint was ultimately marketed through Gunn Mowery. 4. Defendant, Mark T. Reilly (hereinafter referred to as "Reilly"), is an adult individual residing at 815 Surrey Court, Camp Hill, Cumberland County, Pennsylvania 17011. 5. Defendant, Reilly Insurance Group, Inc. (hereinafter referred to as "RIG"), is a Pennsylvania corporation with a principle place of business at 3901 North Front Street, Harrisburg, Dauphin County, Pennsylvania 17110. 6. Defendants, Mark T. Reilly and RIG, are engaged in the insurance and financial services business as a direct competitor of the Plaintiffs. THE AGREEMENT 7. On or about August 26, 1992, Gunn Mowery, formerly known as Penn Property and Casualty, Inc., entered into a valid, written contract under whose terms Plaintiff hired Mark T. Reilly as a solicitor. A copy of said Solicitor Agreement is attached hereto and marked as "Exhibit A". 8. Pursuant to the Agreement, All property and casualty insurance business, including renewals, produced by the Solicitor during the continuation of this agreement shall be written through the Agency and if brokered, it shall be done only in the name of the Agency, and only with the Agency's written consent. See Solicitor Agreement @ ¶3 9. Also pursuant to the Agreement, All business produced by the Solicitor may be coded or otherwise identified to indicate its source of production, however, notwithstanding such identification, all such business, including the expiration data and all files and records in connection therewith, shall be the exclusive property of the Agency and shall continue to be so after the termination of this agreement, however caused, and the Solicitor hereby waives and releases all claims of right or ownership thereto and covenants that he shall not make or retain copies of such property. See Solicitor Agreement @ ¶4 (emphasis added). 10. Under the Agreement, "all correspondence shall be carried on in the Agency's name..." See Solicitor Agreement at ¶5. 11. The Agreement also provides, The Solicitor agrees that all information governing the insurance of the Agency's customers (inclusive of those accounts produced by See Solicitor 12. the Solicitor) including expiration data in connection therewith is confidential information and will be treated by him as such, and that both during and after the term of this contract, however it may be terminated, he will not, directly or indirectly, make use of such information or any other confidential information concerning the Agency's business for his own benefit, nor divulge such information to any other parties not duly entitled thereto nor retain or create any lists of the Agency's customers for his own personal use nor reveal the same to any other party. Agreement at ¶9. The Agreement further states, In recognition of the fact that the Agency is engaged in a personal service business involving personal relationships with its customers, the success of which business is due to continuation of such personal relationships, the Solicitor does hereby covenant and agree as follows: (a) The Solicitor covenants that he will not for a period of three (3) years, after termination of his employment with the Agency, directly or indirectly, solicit or accept any insurance business of any nature from any of the insurance accounts of the Agency, nor will he for a period of three years, directly or indirectly, assist or be employed by any other party in soliciting or accepting any insurance business or any nature from any of said accounts. (b) Notwithstanding the above, the parties hereto agree that in the event any such customers of the Agency actively seek out the Solicitor's assistance and, without the solicitation or interference of Solicitor request the Solicitor to accept insurance from them, the Solicitor may, at his discretion, accept said business. In the event any such business is accepted, however, the Solicitor agrees to compensate the Agency by way of paying to the Agency two (2) times the first year's net commission. Payment to the Agency shall be made within thirty (30) days after the effective date of policies in question written by the Solicitor. 4 (c) It is further agreed that in the event of a breach by the Solicitor of the terms of this provision 10, which breach shall have been the proximate cause of any loss of business to the Agency, and in the event a court of competent jurisdiction shall award damages to the Agency as a result of such breach, then, it is agreed by the parties that the measure of such damages shall be four (4) times the net annual commissions and/or fees earned by the Agency during the preceding ~welve (12) months from all insurance written by the Agency for all accounts lost to the Agency as a result of the Solicitor's actions in breach of this paragraph, which shall constitute liquidated damages hereunder. (d) the covenants contained in this paragraph shall be construed as independent of any other provisions in this agreement, and the existence of any other claim or cause of action by the Solicitor against the Agency shall not constitute a defense to the enforcement of the within covenants. The Solicitor shall and does hereby agree to reimburse the agency for its expense, including reasonable attorney's fees, in the enforcement of this provision. See Solicitor Agreement at ¶10. 13. At all times material hereto, and pursuant to the Solicitor Agreement, Reilly acted as a solicitor for both Gunn Mowery and Gaughen. REILLY'S SEPARATION FROM GUNN MOWERY AND GAUGHEN 14. Reilly initially tendered his resignation from Gunn Mower,/and Gaughen, effective February 7, 2001. 15. At the time of his resignation, Reilly represented to Gunn Mowery and Gaughen that he fully intended to honor the solicitor agreement, including specifically the non-compete and anti-piracy agreements contained in Paragraph 10 of the Agreement thereof. 16. Despite this representation, and unbeknownst to Gunn Mowery or Gaughen, Reilly and RIG solicited and/or accepted business from clients of Gunn Mowery and Gaughen, in direct violation of the Solicitor Agreement. 17. At all times prior to June 5, 2001, Reilly and RIG represented to Gunn Mowery and Gaughen his full intention to honor the Solicitor Agreement. 18. On June 5, 2001, contrary to his previous representations, Reilly and RIG informed Gunn Mowery and Gaughen that he did not intend to honor the solicitor agreement, including the non-compete and anti-piracy provisions contained in Paragraph 10 of the Agreement. MISCONDUCT OF REILLY 19. At all times material hereto, in violation of the Solicitor Agreement, Reilly and RIG have wrongfully converted customer lists, policy expirations, policy renewals, client underwriting data, and other client contact information which, pursuant to the Solicitor Agreement, are the lawful possessions of Gunn Mowery and Gaughen. 20. At all times material hereto and prior to June 5, 2001, Reilly represented, contrary to his conduct, that he fully intended to honor his Solicitor Agreement with Gunn Mowery and Gaughen, including the non-compete and anti-piracy provisions of Paragraph 10 of the Solicitor Agreement. 21. Reilly and RIG have engaged in a course of conduct which has included, in addition to the conduct set forth above, soliciting and accepting business from clients of Gunn Mowery and Gaughen. 22. As set forth above, the misconduct of Reilly and RIG includes, but is not limited to the following: a. b. C. d, e. f. wrongful conversion and appropriation wrongful appropriation and conversion wrongful appropriation and conversion wrongful appropriation and conversion wrongful appropriation and conversion wrongful appropriation and conversion Mower and Gaughen of customer lists; of policy expirations; of policy renewals; of underwriting data; of contact information; of trade secrets of Gunn improper solicitation of clients of Gunn Mowery and Gaughen. improper acceptance of business from clients of Gunn Mowery and Gaughen; misrepresentation and fraud regarding Reilly and RIG's intention to honor the Solicitor Agreement at issue; misrepresentation and fraud to clients of Gunn Mowery and Gaughen to the detriment of Gunn Mowery and Gaughen. unfair methods of trade; improper conversion of client lists and injury to business relationships of Gunn Mowery and Gaughen; such other improper conduct as discovery in this action may show relating to the legitimate business interests of Gunn Mowery and Gaughen. 23. As a direct and sole result of Reilly and RIG's misrepresentations, Gunn Mowery and Gaughen relaxed their vigilance, failed to take measures to safeguard their business, and allowed Reilly and RIG continued access to confidential information and trade secrets, including but not limited to customer lists, policy expirations, policy renewals, confidential underwriting data, and other confidential client contact information. 24. The activities of Reilly and RIG, as mentioned above, and the continuance thereof, have caused and will continue to cause irreparable harm to the Plaintiffs' business and valuable good will in that: a. Gunn Mowery and Gaughen have lost and will continue to lose a substantial and indefinite number of present prospective customers; b. Gunn Mowery and Gaughen have suffered and will continue to suffer a substantial and severe loss of profits now and indefinitely in the future; c. The aforementioned conduct of Reilly and RIG will continue to violate the covenant contained in the aforesaid Solicitor Agreement unless enjoined by this Court.; d. Gunn Mowery and Gaughen have no adequate remedy at law to protect its business and property rights and restraint by injunction is necessary to afford adequate relief. 25. All of the described conduct of Reilly and RIG herein is being done and has been done willfully, intentionally, and without privilege or legal right to do so. COUNT I - BREACH OF CONTRACT 26. Paragraphs 1 through 25 and their subparts are incorporated herein as if set more fully hereto. 8 27. The conduct of Reilly and RIG, as set forth above, constitutes a substantial and material breach of his employment agreement with Gunn Mowery and Gaughen. 28. As a result of the aforementioned breach of contract, the activities of Reilly and RIG and the continuance thereof have caused and will continue to cause irreparable harm to the Plaintiffs' business and valuable good will. 29. Plaintiffs have no adequate remedy at law to protect its business and property rights and restraint by injunction is necessary to afford adequate relief. WHEREFORE, Gunn Mowery and Gaughen request that This Honorable Court decree and direct as follows: That an injunction be issued preliminarily and for a period of three (3) years thereafter, enjoining Reilly and RIG from directly or indirectly: (a) Accepting any business from any current or former client of Plaintiff, Gunn Mowery Insurance Group, Gaughen Insurance, Inc., or Reilly while in the employ of Gunn Mowery or Gaughen, or any officers, agents, subsidiaries, affiliates or other related entity or representative of such current or former client; (b) Utilizing for any purpose any client or customer lists of Gunn Mowery Insurance Group, Inc. Gaughen Insurance, Inc. and/or Reilly while in the employ of Gunn Mowery or Gaughen; (c) Utilizing for any purpose policy expirations and/or renewals of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or policy expirations or renewals developed by Defendant Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (d) Using for any purpose underwriting data of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen, and/or underwriting data developed by Mark T. Reilly while in the employ 9 = of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (e) discussing any insurance or financial services business with current or former clients of Gunn Mowery Insurance Group, Inc. or Gaughen Insurance and/or clients or contacts cultivated or developed by Reilly and Reilly Insurance Group, Inc. while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance. (0 Using or disclosing to any other person for the benefit of Defendant Reilly or Reilly Insurance Group, Inc. the business methods, business policies, procedures, techniques, proprietary information, trade secrets or any other proprietary or confidential information, knowledge, process, financial statements, management reports, client listings, employee listings, operations and other manuals, contacts, forms, plans, strategies, sales leads, market information and/or documents of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or such items that may have been developed by Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and Gaughen Insurance and/or any such items, which have been obtained by Defendant Reilly as a result of Reilly's employment with the Plaintiff. That Defendants Reilly and RIG be required to account to Gunn Mowery and Gaughen for all profits he has derived from his breach of contract; That Reilly and RIG be required to reimburse Gunn Mowery and Gaughen in an amount equally two times first year's net commission for any business Reilly and RIG did not solicit, but received, and four times the first years net comm'ss'on for any business actively solicited; That Gunn Mowery and Gaughen be awarded costs and attorneys' fees; That Gunn Mowery and Gaughen be awarded such other relief as the Court deems appropriate. ~0 COUNT II - UNLAWFUL CONVERSION/THEFT OF TRADE SECRETS 30. Paragraphs 1 through 29 and their subparts are incorporated herein as if set more fully hereto. 31. The aforementioned conduct of Defendants Reilly and RIG constitutes unlawful conversion and theft of trade secrets. 32. As a result of the aforementioned unlawful conversion and theft of trade secrets, the activities of Reilly and RIG and the continuance thereof have caused and will continue to cause irreparable harm to the Plaintiffs' business and valuable good will. 33. Plaintiffs have no adequate remedy at law to protect its business and property rights and restraint by injunction is necessary to afford adequate relief. WHEREFORE, Gunn Mowery and Gaughen request that This Honorable Court decree and direct as follows: That an injunction be issued preliminarily and for a period of three (3) years thereafter, enjoining Reiliy and RIG from directly or indirectly: (a) Accepting any business from any current or former client of Plaintiff, Gunn Mowery Insurance Group, Gaughen Insurance, Inc., or Reilly while in the employ of Gunn Mowery or Gaughen, or any officers, agents, subsidiaries, affiliates or other related entity or representative of such current or former client; (b) Utilizing for any purpose any client or customer lists of Gunn Mowery Insurance Group, Inc. Gaughen Insurance, Inc. and/or Reilly while in the employ of Gunn Mowery or Gaughen; (c) Utilizing for any purpose policy expirations and/or renewals of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or policy expirations or renewals developed by Defendant Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (d) Using for any purpose underwriting data of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen, and/or underwriting data developed by Mark T. Reilly while in the employ of Gunn Mowery InsuranceGroup, Inc. and/or Gaughen Insurance, Inc. (e) discussing any insurance or financial services business with current or former clients of Gunn Mowery Insurance Group, Inc. or Gaughen Insurance and/or clients or contacts cultivated or developed by Reilly and Reilly Insurance Group, Inc. while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance. (f) Using or disclosing to any other person for the benefit of Defendant Reilly or Reilly Insurance Group, Inc. the business methods, business policies, procedures, techniques, proprietary information, trade secrets or any other proprietary or confidential information, knowledge, process, financial statements, management reports, client listings, employee listings, operations and other manuals, contacts, forms, plans, strategies, sales leads, market information and/or documents of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or such items that may have been developed by Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and Gaughen Insurance and/or any such items, which have been obtained by Defendant Reilly as a result of Reilly's employment with the Plaintiff. That Defendants Reilly and RIG be required to account to Gunn Mowery and Gaughen for all profits he has derived from his breach of contract; That Reilly and RIG be required to reimburse Gunn Mowery and Gaughen in an amount equally two times first year's net commission for any business Reilly and RIG did not solicit, but received, and four times the first year's net commission for any business actively solicited; That Gunn Mowery and Gaughen be awarded costs and attorneys' fees; That Gunn Mowery and Gaughen be awarded such other relief as the Court deems appropriate. 12 COUNT III - INTENTIONAL FRAUD/MISREPRESENTATION 34. Paragraphs 1 through 33 and their subparts are incorporated herein as if set more fully hereto. 35. The aforementioned conduct of Reilly and RIG constitutes intentional fraud and misrepresentation. 36. Plaintiffs Gunn Mowery and Gaughen relied on the aforementioned fraud and misrepresentation to their detriment. 37. As a result of the aforementioned intentional fraud and misrepresentation, the activities of Reilly and RIG and the continuance thereof have caused and will continue to cause irreparable harm to the Plaintiffs' business and valuable good will. 38. Plaintiffs have no adequate remedy at law to protect its business and property rights and restraint by injunction is necessary to afford adequate relief. WHEREFORE, Gunn Mowery and Gaughen request that This Honorable Court decree and direct as follows: 1. That an injunction be issued preliminarily and for a period of three (3) years thereafter, enjoining Reilly and RIG from directly or indirectly: (a) Accepting any business from any current or former client of Plaintiff, Gunn Mowery Insurance Group, Gaughen Insurance, Inc., or Reilly while in the employ of Gunn Mowery or Gaughen, or any officers, agents, subsidiaries, affiliates or other related entity or representative of such current or former client; (b) Utilizing for any purpose any client or customer lists of Gunn Mowery Insurance Group, Inc. Gaughen Insurance, Inc. and/or Reilly while in the employ of Gunn Mowery or Gaughen; (c) Utilizing for any purpose policy expirations and/or renewals of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or policy expirations or renewals developed by Defendant Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (d) Using for any purpose underwriting data of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen, and/or underwriting data developed by Mark T. Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (e) discussing any insurance or financial services business with current or former clients of Gunn Mowery Insurance Group, Inc. or Gaughen Insurance and/or clients or contacts cultivated or developed by Reilly and Reilly Insurance Group, Inc. while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance. (0 Using or disclosing to any other person for the benefit of Defendant Reilly or Reilly Insurance Group, Inc. the business methods, business policies, procedures, techniques, proprietary information, trade secrets or any other proprietary or confidential information, knowledge, process, financial statements, management reports, client listings, employee listings, operations and other manuals, contacts, forms, plans, strategies, sales leads, market information and/or documents of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or such items that may have been developed by Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and Gaughen Insurance and/or any such item~, which have been obtained by Defendant Reilly as a result of Reilly's employment with the Plaintiff. That Defendants Reilly and RIG be required to account to Gunn Mowery and Gaughen for all profits he has derived from his breach of contract; That Reilly and RIG be required to reimburse Gunn Mowery and Gaughen in an amount equally two times first year's net commission for any business Reilly and RIG did not solicit, but 14 received, and four times the first year's net commission for any business actively solicited; That Gunn Mowery and Gaughen be awarded costs and attorneys' fees; That Gunn Mowery and Gaughen be awarded such other relief as the Court deems appropriate. COUNT IV - BREACH OF FIDUCIARY DUTY 39. Paragraphs 1 through 38 and their subparts are incorporated herein as if set more fully hereto. 40. The aforementioned conduct of Reilly and RIG constitutes a material and substantial breach of his fiduciary duty to Gunn Mower and Gaughen. 41. As a result of the aforementioned breach of fiduciary duty, the activities of Reilly and RIG and the continuance thereof have caused and will continue to cause irreparable harm to the Plaintiffs' business and valuable good will. 42. Plaintiffs have no adequate remedy at law to protect its business and property rights and restraint by injunction is necessary to afford adequate relief. WHEREFORE, Gunn Mowery and Gaughen request that This Honorable Court decree and direct as follows: 1. That an injunction be issued preliminarily and for a period of three (3) years thereafter, enjoining Reilly and RIG from directly or indirectly: (a) Accepting any business from any current or former client of Plaintiff, Gunn Mowery Insurance Group, Gaughen Insurance, Inc., or Reilly while in the employ of Gunn Mowery or Gaughen, or any officers, agents, subsidiaries, affiliates or other related entity or representative of such current or former client; 15 (b) Utilizing for any purpose any client or customer lists of Gunn Mowery Insurance Group, Inc. Gaughen Insurance, Inc. and/or Reilly while in the employ of Gunn Mowery or Gaughen; (c) Utilizing for any purpose policy expirations and/or renewals of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or policy expirations or renewals developed by Defendant Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (d) Using for any purpose underwriting data of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen, and/or underwriting data developed by Mark T. Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (e) discussing any insurance or financial sen/ices business with current or former clients of Gunn Mowery Insurance Group, Inc. or Gaughen Insurance and/or clients or contacts cultivated or developed by Reilly and Reilly Insurance Group, Inc. while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance. (f) Using or disclosing to any other person for the benefit of Defendant Reilly or Reilly Insurance Group, Inc. the business methods, business policies, procedures, techniques, proprietary information, trade secrets or any other proprietary or confidential information, knowledge, process, financial statements, management reports, client listings, employee listings, operations and other manuals, contacts, forms, plans, strategies, sales leads, market information and/or documents of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or such items that may have been developed by Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and Gaughen Insurance and/or any such items, which have been obtained by Defendant Reilly as a result of Reilly's employment with the Plaintiff. That Defendants Reilly and RIG be required to account to Gunn Mowery and Gaughen for all profits he has derived from his breach of contract; That Reilly and RIG be required to reimburse Gunn Mowery and Gaughen in an amount equally two times first year's net commission for any business Reilly and RIG did not solicit, but received, and four times the first year's net commission for any business actively solicited; That Gunn Mowery and Gaughen be awarded costs and attorneys' fees; That Gunn Mowery and Gaughen be awarded such other relief as the Court deems appropriate. COUNT V TORTIOUS INTERFERENCE WITH CONTRACTUAL RELATIONS 43. Paragraphs 1 through 42 and their subparts are incorPorated herein as if set more fully hereto. 44. The aforementioned conduct of Reilly and RIG constitutes tortious interference with multiple contractual relationships between Gunn Mowery and Gaughen and their many clients, some of whom moved their business to Reilly and RIG as set forth more fully above. 45. As a result of the aforementioned conduct of Reilly and RIG, important and tong-term contractual relationships have been threatened and in fact damaged to the detriment of Gunn Mowery and Gaughen, causing substantial loss. 46. As a result of the aforementioned tortious interference with contractual relations, the activities of Reilly and RIG and the continuance thereof have caused and will continue to cause irreparable harm to the Plaintiffs' business and valuable good will. 47. Plaintiffs have no adequate remedy at law to protect its business and property rights and restraint by injunction is necessary to afford adequate relief. 17 WHEREFORE, Gunn Mowery and Gaughen request that This Honorable Court decree and direct as follows: That an injunction be issued preliminarily and for a period of three (3) years thereafter, enjoining Reilly and RIG from directly or indirectly: (a) Accepting any business from any current or former client of Plaintiff, Gunn Mowery Insurance Group, Gaughen Insurance, Inc., or Reilly while in the employ of Gunn Mowery or Gaughen, or any officers, agents, subsidiaries, affiliates or other related entity or representative of such current or former client; (b) Utilizing for any purpose any client or customer lists of Gunn Mowery Insurance Group, Inc. Gaughen Insurance, Inc. and/or Reilly while in the employ of Gunn Mowery or Gaughen; (c) Utilizing for any purpose policy expirations and/or renewals of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or policy expirations or renewals developed by Defendant Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (d) Using for any purpose underwriting data of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen, and/or underwriting data developed by Mark T. Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (e) discussing any insurance or financial services business with current or former clients of Gunn Mowery Insurance Group, Inc. or Gaughen Insurance and/or clients or contacts cultivated or developed by Reilly and Reilly Insurance Group, Inc. while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance. (f) Using or disclosing to any other person for the benefit of Defendant Reilly or Reilly Insurance Group, Inc: the business methods, business policies, procedures, techniques, proprietary information, trade secrets or any other proprietary or confidential information, knowledge, process, financial statements, 18 management reports, client listings, employee listings, operations and other manuals, contacts, forms, plans, strategies, sales leads, market information and/or documents of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or such items that may have been developed by Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and Gaughen Insurance and/or any such items, which have been obtained by Defendant Reilly as a result of Reilly's employment with the Plaintiff. That Defendants Reilly and RIG be required to account to Gunn Mowery and Gaughen for all profits he has derived from his breach of contract; That Reilly and RIG be required to reimburse Gunn Mowery and Gaughen in an amount equally two times first year's net commission for any business Reilly and RIG did not solicit, but received, and four times the first year's net commission for any business actively solicited; That Gunn Mowery and Gaughen be awarded costs and attorneys' fees; That Gunn Mowery and Gaughen be awarded such other relief as the Court deems appropriate. COUNT VI UNFAIR TRADE/UNFAIR COMPETITION 48. Paragraphs 1 through 49 and their subparts are incorporated herein as if set more fully hereto. 49. The aforementioned conduct of Reilly and RIG constitutes unfair trade and unfair business competition. 50. As a result of the aforementioned unfair trade and unfair competition, the activities of Reilly and RIG and the continuance thereof have caused and will continue to cause irreparable harm to the Plaintiffs' business and valuable good will. 19 51. Plaintiffs have no adequate remedy at law to protect its business and property rights and restraint by injunction is necessary to afford adequate relief. WHEREFORE, Gunn Mowery and Gaughen request that This Honorable Court decree and direct as follows: That an injunction be issued preliminarily and for a period of three (3) years thereafter, enjoining Reilly and RIG from directly or indirectly: (a) Accepting any business from any current or former client of Plaintiff, Gunn Mowery Insurance Group, Gaughen Insurance, Inc., or Reilly while in the employ of Gunn Mowery or Gaughen, or any officers, agents, subsidiaries, affiliates or other related entity or representative of such current or former client; (b) Utilizing for any purpose any client or customer lists of Gunn Mowery Insurance Group, Inc. Gaughen Insurance, Inc. and/or Reilly while in the employ of Gunn Mowery or Gaughen; (c) Utilizing for any purpose policy expirations and/or renewals of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or policy expirations or renewals developed by Defendant Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (d) Using for any purpose underwriting data of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen, and/or underwriting data developed by Mark T. Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance, Inc. (e) discussing any insurance or financial services business with current or former clients of Gunn Mowery Insurance Group, Inc. or Gaughen Insurance and/or clients or contacts cultivated or developed by Reilly and Reilly Insurance Group, Inc. while in the employ of Gunn Mowery Insurance Group, Inc. and/or Gaughen Insurance. 20 Date: (0 Using or disclosing to any other person for the benefit of Defendant Reilly or Reilly Insurance Group, Inc. the business methods, business policies, procedures, techniques, proprietary information, trade secrets or any other proprietary or confidential information, knowledge, process, financial statements, management reports, client listings, employee listings, operations and other manuals, contacts, forms, plans, strategies, sales leads, market information and/or documents of Gunn Mowery Insurance Group, Inc., Gaughen Insurance, Inc., and/or Reilly while in the employ of Gunn Mowery or Gaughen and/or such items that may have been developed by Reilly while in the employ of Gunn Mowery Insurance Group, Inc. and Gaughen Insurance and/or any such items, which have been obtained by Defendant Reilly as a result of Reilly's employment with the Plaintiff. That Defendants Reilly and RIG be required to account to Gunn Mowery and Gaughen for all profits he has derived from his breach of contract; That Reilly and RIG be required to reimburse Gunn Mowery and Gaughen in an amount equally two times first year's net commission for any business Reilly and RIG did not solicit, but received, and four times the first year's net commission for any business actively solicited; That Gunn Mowery and Gaughen be awarded costs and attorneys' fees; That Gunn Mowery and Gaughen be awarded such other relief as the Court deems appropriate. Respectfully submitted, June 8, 2001 & HADDICK, P.C. 20 South 36th StrUt Camp Hill, PA 17011 (717)731-4800 Attorney for Plaintiffs 21 VERIFICATION I, Ted Mowery, principle Gunn Mowary Insurance C;roup, Inc., hereby veri~ that the facts set forth in the foregoing Complaint are [rue and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. §4904, relating [o unswom falsification to authorities. Gunn McY~Ery Insurance Group, Inc. VERIFICATION I, Ted Mowery, principle of Gaughen Insurance, Inc., hereby verify that the facts set forth in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 1§ Pa.C.S. §4904, relating to unsworn falsification to authorities. EXHIBIT "B" JUN-04-O~ MON 12:28 PM : FaX NO, ?177618159 P. 03 4. All business prcxtuced by the Solicitor may be coded or otherWise identified to ~dicate its source ~ production, however, notwithstan~ling such identification, all such business, including the ~piration data and nll files and records in connection therewith, shall be the exclusive property cC the Agency and shall costinue to be so after thc ternunat~.on of th~s agrc~e~%t, however ca~]sed, and the Sol~citor hereby waives and releases all cla~ of right or cx~nership thereto and covenants that he shall not make or retain copies of sued% property. 5. All correspondence shall be carried on in the Agency's name. All ~r~i~iums s~ll be billed by and shall b~ owed to the ~3ency, all checks and clrafts in ~yn~nh of such premiums shall be made payable to the AgencT, and all. money received in payment of premiums or other feeS shall }~ turned ove~ to the Agency within 72 ho~rs of receipt in tb~ form received and deposited ~n the Agency's accout~t. 6. k~ full c¢~pensJhion for th~ sol~cltation and production of insurance business here%znder ~d for ail se~ices of every nature rendered by the Sol~citor t~der and p~rsuant to this contract, the Agency agrees to c~npensate the Solicitor on the following basls: (~) For all new property and casualty business p£oduced by the Solicitor, fifty percent (50%) of the net annual com~i, ssion actually received by the agency on such business. "New property and casu~ltybusiness" shall be de£ine~ as insurance sold to a person or organization not. then a custc~er of the Age, ney, or of another type of coverage for customers; consolidations of existing coverages into ccxnbination or package pol]~j.es ~3~tl not be deemc~ to be new l~nes of b~siness. "Not ~nnual cc~ssion" ~all be defincd as gross annual cc~missions less return cc~mlssions on property and casualty insurance business, the pre~u~u for which has been c~nid ~n full and without regard to contingent, bonus or profit-sharing c(~l~flissions. (b) For all policies written by the Solicitor and renewed by the Agency, fgy.~yperce~ (39%_i) of the cc~ssions actually receivedbytheAgencyon account o£ the renewal by tho Agency during the torsi of this contract on any business for ~lich the Solicitor shall have received a f~rst y~ur con~n~ssion as aforesaid or for which~3encyhas agreed with Solicitor for Solicitor top rovide ail ongoing service responsibilities. (e) For all new and renewal l~.fe and disability b~siness produced by the sol$citor, ~%e hundred por.c~..~..(100%) o£ the net annual cc~mision actually received by thc agency on such business. "Net annual cc~mission" shall be defined as gross am3/ual cc~nissi0ns less return commissions on life mlqd disability insurance business, the pr~ntt~n for which has been paid in full ~%dw.~thout z~gard to contingent, bonus or profit-sh~ring c~l~ssions. JUN-U4-U1MON 12:29 PM \ , FAX NO. 7177618159 P, 04 'ihc~ Agency will give the Solicitor an accounting of all cc~missions due to tho Solicitor by the Fifteenth (15th) day of each month for the business of the precc~.dingmonfh. 7. ~] all new or renewal business written by the Solicitor, all oul:stand~.~ accounts must be paid into the Agency not later than the first (1st) day of the second calendar month after the effective date of the insurance. I~ not paid in by tl~t tir~, the saree shall be charged to the account of the Solicitor. 8, Any sur~ paid to the Solicitor pursuant to this agreement shall be subject to an adjustment in the event that subsequent to said payment the Agency shall t~ required to pay and return premiums on business for which tho Solici~or shall have helen pa~d a portion of the premi~ on such b~s%ness. ~e provisions of f.b~.s paragraph shall continue after the terr~nat~on of the Solicitor's employment, however, caused, and the Agency shall, be. entitled to set off against any stmls due tho Solicitor such amount o~ retu~ c~issions he shall owe to the Ag~-ncy hereunder.. 9. %~%e Solicitor agrees that all information governing the insuranos of the Agency ' s customers ( inclusive of those accounts produced by the Solicits)r) including ext)iration data in con~ection therewith is con[idential information and will be treated by him as such, and thmt both during and after the terra of this contract, however it may be tcerf~tinated, he w~ll not, directly or indirectly, m~ke use of such information or any other c~3nfiden.tial information concerning the Agency's business for his own benefit, ~or divulge such information to ~ny other parties not duly entitl¢_~ thereLo nor retain or create any lists of the Agency's c~stor0~rs for ]]is own personal use nor reveal %he same to a~y other party. 10. In recognition of the fact t~3t the Agency is engaged in a personal service business involving personal relationships with its custc~ners, the success of whirl business Js du~ to c~ntinuation of such persor~l re]ahionsl~ips, the Solicitor does hereby covenant and agree as follows: (a) ~%e Solicitor covenants that he will not for a period of three (3) ye~.~rs, after terf~iD~]tion of his employm~ntw~th the Agency, directly or indirect, ly, solicit or accept any insurance business of any nature frc~ any of the insurance accounts of the Agency, nor will he for a period of three years, dizectly or indirectly, assist or be employed by any other t~rty in soliciting or accepting any insurance business of any nature from any of said accounts. (b) Notwithstanding the above, t.he ~t~es hereto agree that in the event eny such custom,rs of the Agency actively seek out the Solicitor's assistance and, without ~le solicitation or interference, of Solicitor ro~st the Solicitor to accept ~nsurance fresh them, the Solicitor may, at his discretJ, cn, accept said b~siness. ~n the event any such business is acc~pt~, however, the S~licitor agrees to compensate the Agency by way of payi ng t~ the ;~3ency two (2) times the first year ' $ net cor~nisslon. Payment to ~%e Agency shall be made within thirty (30) days after the effective ~te of policies in question written by the Solicitor. JUN-D4-O1 NON ~2:2g PM F~× NO, ~177616159 ?, 05 (c) It iS further agreed that in the event of a breach by the Solicitor of the terms of this provision 10, which breach shall have keen the proximate cause of any loss of business to the Agency, and in the event a court of cc~£~tent jurisdiction shall award damag~q to the Agency as a result of such breach, then, it is agreed by the partics that the measure of such d~ge~ shall k~ fou~~ (4) t~mes the not annual cc~nissions and/or fees m~rned by the Agency during the preceding twelve (12) months from all ~nsurance written by the Agency for all accounts lost to the Agency as a result of the Solicitor's actions in breach of this I~nragraph, which shall constitute ~iquJdatcddan~ges hereunder. (d) Thc covenants c~ntainaxl in this paragraph ~11 be construc~ as independent of any other provisions in this agreement, and the existence of any other claimer cause of action by the Solicitor against the Agency shall not constitute a defense to the enforcement of the within covenants. ~ Solicitor shall ~]d does hereby agree to reimburse the agency for its e×r~se, including reasonable attorney's fees, in the enforcement of this provision. (e) Section 11 shall be waived for current lines cf business for ctntrent clients of the Solicitor that are brought to the Agency by the Solicitor. A soperate record of this business shall be kept by the Solicitor and r~ndered by the Agency on the thirteth (30th) day of March, June, S<~£)t~nber, and December for approval. 11. Except for the provisions of paragra~l ~0 hereof, any controversy or claim shall be submitted to and determined by arbitration in Cumberland County, P~nnsylvania ~n acco~x]ance w~th the rules in ~e American Arbitration Association. Both parties agree that the decision rendered by such arbitration will be bi~ding, conclusive, and final on both sides. 12. T~I~s Agreement shall termir~ate Jm~ediately upon the death of the g~]Jcito~ or, at the option of the Agency, after the Solicitor has been ln-~able to t-~rfol3n a substantial portion (moaning 50% or more) of hls norakT1 ~u%d customary duties for a period of 90 days for any reason including, but not limited to, mental or physical disability. It is further agreed that either party to this Agre~aent may terminate the Agre~-~nt- by giving written notice to the other party that such Agreement is terminated as o£ a certain date which shall be exactly thirty (30) days fro]~ the date such notice is given. Upon the giving of such notice by tile Agency., the Solic.ltor shall cease doing business on behalf of the Agm~]cy ~ld shall surrcndor all papers, rec~prds and property of the t~3er~cy for t.hw~.th. JUN-04-O1 NON 12:29 F~X NO, 7177616159 ?, 06 rlhc Solicitor shall be. entitled to such compensation payable tx) him during the thirty (30) day period con~r~nclng with such notice and ending on the effectiw_~ d~to of termination. Subsequent to termination, no conl0e~sation shall tx3 pay=xble to the Solicitor, r~gardless of any claim by the So].icJtor for co~%pensation, salary severance benefits, or other payments. 1~. The invalid%[~or unenforceability of any provision of this Agreer~nt ~%all not affect the v~lidlty or enforceability of the r~l%]ining prov~s~ons, and this a~ree~nt shall be co~struedas if such invalid or unenforceable provisions were omitted. 14. Modifications, changes and amending%ts to this contrac~ and the relationship established thereby sha],~ be valid only Jf in written fon~ and sJ.gnsd by the parties to this Agre~ncnt or their authorized agents. 15. This contract supercedes all previous oral or written agreements ~etween /~3e~cy ,nnd Solicitor. IN Wi'I'Nh~S WHF/1EOF, the parties have herct~nto set their l~nnds on the date snd year fjrst a93ove written for the purposes set forth in ti%is contract. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW AMERICAN GENERAL FINANCE, INC. : VS. JESSICA A. WILLIAMS No. 01-1606 ACTION IN EQUITY PRAECIPE TO THE PROTHONOTARY: Please reinstate the Complaint docketed to number 01-1606. REIDENBACH & HENDERSON By: Herbert P. Henderson, II, Esquire Attorney for Plaintiff 36 East King Street Lancaster, PA 17602 (717) 295-9159 Attorney I.D. No. 56304 SHERIFF' S RETURN - REGULAR CASE NO: 2001-01606 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND AMERICAN GENERAL FINANCE INC V$ WILLIAMS JESSICA A KATHY J. CLARKE , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to says, the within COMPLAINT IN REPLEVIN was served upon WILLIAMS JESSICA A DEFENDANT , at 1105:00 HOURS, on the 26th day of July at 5049 RITTER ROAD MECHANICSBURG, PA 17055 by handing to JESSICA WILLIAMS a true and attested copy of COMPLAINT IN REPLEVIN NOTICE law, the , 2001 together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 7.80 Affidavit .00 Surcharge 10.00 .00 35.80 Sworn and Subscribed to before me this ¢ ~ day of A.D. /Wroth~notary~ So Answers: R. Thomas Kline 07/27/2001 KENNETH REIDENBACH II By: Sheriff