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HomeMy WebLinkAbout04-3439 Law Offices O'BRIEN, BARIC & SCHERER 19 West South Street Carlisle, Pennsylvania 17013 Robert L. O'Brien David A. Baric Michael A. Scherer (717) 249-6873 Fax (717) 249-5755 direct: dbaric@obslaw.com July 15, 2004 R Thomas Kline Sheriff of Cwnberland County 1 Courthouse Square Carlisle, Pennsylvania 17013 RE: First Choice Rehabiliation Specialists, Inc. v. Chad and Stephanie Madden Dear Sheriff Kline: Please make personal service upon the Defendants by deputizing the Sheriff of Dauphin County. The Defendants should be served at the following address: Chad Madden Stephanie Madden 7915 Eveningstar Street Harrisburg, Pennsylvania 17112-9306 I have enclosed a check in the amount of$150.00 for this service. If you have any questions or require any additional information, please contact me. Very truly yours, O'BRrnN, BAIDe &~ David A.'Bari~re DAB/ta Enclosure cc: Gary Karkuff, P.T. File dab\Litigation\FirstCboice\kline.ltr , . - Commonwealth of Pennsylvania County of Cumberland WRIT OF SUMMONS FIRST CHOICE REHABILITATION SPECIALISTS, INC. Court of Common Pleas Plaintiff Vs. No. 04-3439 CIVIL TERM In CivilAction-Law CHAD MADDEN AND STEPHANIE MADDEN 7915 EVEININGSTAR STREET HARRISBURG, PA 17112-9306 Defendant To CHAD MADDEN AND STEPHANIE MADDEN You are hereby notified that FIRST CHOICE REHABILITATION SPECIALISTS, INC., the Plaintiff has / have commenced an action in Civil Action- Law against you which you are required to defend or a default judgment may be entered against you. (SEAL) Date JULY 15, 2004 CURTIS R. LONG Prothonotary <.Jiy hO/)-<PfP.7n~ Deputy / LV Attorney: Name: DAVID A. BARIC, ESQUIRE Address: 19 WEST SOUTH STREET CARLISLE, P A 17013 Attorney for: Plaintiff Telephone: 717-249-6873 Supreme Court ill No. 44853 Chad Madden Stephanie Madden 7915 Eveningstar Street Harrisburg, Pennsylvania 17112-9306 Please serve the Defendants as follows: Attorney for Plaintiff David A. Baric, Esquire !.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Date: July 1:;-' 2004 Stephanie Madden. Plaintiff, First Choice Rehabilitation Specialists, Inc., to the Detl:mdants, Chad Madden and Please issue a Writ of Summons in the above-referenced case on behalf of the TO THE PROTHONOTARY: PRAECIPE FOR WRIT OF SUMMONS Defendants : CIVIL ACTION-LAW CHAD MADDEN and STEPHANIE MADDEN, husband and wife, : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 2004- 3439 C'v.:L~~ v. Plaintiff FIRST CHOICE REHABILITATION SPECIALISTS, INC., C>J o i' ~ a~ ~tt ~ CJ ..,,- C1.... G'.i~C.- CJ ~~, ~ 0>;,.._ ~l~~ :;,~:_.! lC. :l: :,:~) ..... LL cg r-, c::> '--' (.'-J SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2004-03439 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND FIRST CHOICE REHABILITATION VS MADDEN CHAD ET AL R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT , to wit: MADDEN CHAD but was unable to locate Him in his bailiwick. He therefore deputized the sheriff of DAUPHIN County, Pennsylvania, to serve the within WRIT OF SUMMONS On August 20th , 2004 , this office was in receipt of the attached return from DAUPHIN Sheriff's Costs: Docketing Out of County Surcharge Dauphin County So -.--'" 18.00 9.00 10.00 37.25 .00 74.25 08/20/2004 OBRIEN BARIC -:::..= ~~ ~. Thomas Kl ine Sheriff of Cumberland County & SCHERER Sworn and subscribed to before me this 3/"v- day of a,<or..Y .,2..Q-o '1 A . D . no ,fJ. ~.{(t~v i~' ----~othonotary I ,--, SHER~FF'S RETURN - OUT OF COUNTY CASE NO: 2004-03439 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND FIRST CHOICE REHABILITATION VS MADDEN CHAD ET AL R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT , to wit: MADDEN STEPHANIE but was unable to locate Her in his bailiwick. He therefore deputized the sheriff of DAUPHIN County, Pennsylvania, to serve the within WRIT OF SUMMONS On August 20th , 2004 , this office was in receipt of the attached return from DAUPHIN Sheriff's Costs: Docketing Out of County Surcharge 6.00 .00 10.00 .00 .00 16.00 08/20/2004 O'BRIEN BARIC So answer~: ~... R. Thomas Kline Sheriff of cumberland County & SCHERER Sworn and subscribed to before me this 3/...1- day of Qur..J-- ()..oo 'f A . D . ~ a rn..iI'1A- '&':C- Prothonotary , -0- J @ffice of tlr~ ~4~riff William T. Tully Solicitor J. Daniel Basile Chief Deputy Mary Jane Snyder Real Estate Deputy Michael W. Rinehart Assistant Chief Deputy Dauphin County Harrisburg, Pennsylvania 17101 ph: (717) 255-2660 fax: (717) 255-2889 Jack Lotwick Sheriff Commonwealth of Pennsylvania FIRST CHOICE REHABILITATION SPECIALIST vs County of Dauphin MADDEN CHAD Sheriff's Return No. 5692-T - -2004 OTHER COUNTY NO. 04-3439 AND NOW:July 27, 2004 at 9:45AM served the within SUMMONS upon MADDEN STEPHANIE by personally handing to DEFT 1 true attested copy(ies) of the original SUMMONS and making known to him/her the contents thereof at 4651 NORTH PROGRESS AVE HBG, PA 17109-0000 Sworn and subscribed to before me this 12TH day of AUGUST, 2004 j7~ She~i Pa. ~ By! NOTARIAL SEAL MARY JANE SNYDER, Notary Public Highspire, Dauphin County My Commission Expires Sept. 1,2006 Sheriff's Deputy Sheriff Costs:$37.25 PD 07/23/2004 RCPT NO 197230 MILLER @iiite of tlp.~ ~lrexiff William T. Tully Solicitor J. Daniel Basile Chief Deputy Mary Jane Snyder Real Estate Deputy Michael W. Rinehart Assistant Chief Deputy Dauphin County Hanisburg, Pennsylvania 17l 0 I ph: (717) 255-2660 fax: (717) 255-2889 Jack Lotwick Sheriff Commonwealth of Pennsylvania FIRST CHOICE REHABILITATION SPECIALIST vs County of Dauphin MADDEN CHAD Sheriff's Return No. 5692-T - -2004 OTHER COUNTY NO. 04-3439 AND NOW:July 27, 2004 at 9:15AM served the within SUMMONS upon MADDEN CHAD by personally handing to STEPHANIE MADDEN 1 true attested copy(ies) of the original SUMMONS and making known to him/her the contents thereof at 4651 N PROGRESS AVENUE HBG, PA 17112-0000 Sworn and subscribed to before me this 3RD day of AUGUST, 2004 So Answers, ?f~ Sheriff of Dauphin County, Pa. ~ By t77.~ ~e;L Deputy Sheriff Sheriff's Costs:$37.25 PD 07/23/2004 RCPT NO 197230 NOTARIAL SEAL MARY JANE SNYDER, Notary Public Highspire, Dauphin County My Commission Expires Sept. 1, 2006 STERNER FIRST CHOICE REHABILITATION SPECIALISTS, INC, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA v. CHAD MADDEN and STEPHANIE MADDEN NO. 04-3439 CNIL TERM Defendants CIVIL ACTION - LAW JURY TRIAL DEMANDED ENTRY OF APPEARANCE TO: PROTHONOTARY Please enter the appearance of Jeffrey B. Rettig, Esquire, and Hartman, Osborne & Rettig, P .C., on behalf of Defendants, Chad Madden and Stephanie Madden in regard to the above- captioned action. Respectfully submitted, HARTMAN, OSBORNE & RETTIG, P.C. Date: ~b ~y effrl:y B. Rettig, E e Supn:me Ct. J.D. #19616 126-128 Walnut Street Harrisburg, PA 17101 (717) 232-3046 Attomeys for Defendants CERTIFICATE OF SERVlCE I, Jeffrey B. Rettig, Esquire, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States mail, first-class postage prepaid, as follows: David A. Baric, Esquire 19 West South Street Carlisle, P A 17013 (Attorney for Plaintiff) HARTJ\iIAN, OSBORNE & RETTIG, P.C. r ey B. Rettig, Es re a:upreme Ct. LD. #1 616 Matthew E. Hamlin, Esquire Supreme Ct.LD. # 86142 126-128 Walnut Street Harrisburg, PAl 71 0 I (717) 232-3046 Date: 9/2J/DY Attorneys for Defendants r-.:J f::;':':J C_~,) ""- ell P'" -0 e,,' C) o ~l"'1 ---l m~ "TO. ~T' . -rJ (-) ,;:J '" 6::L S~...O oC"'-fT1 ~ d..S :< ..,.., _.~." __Ill.. w 0.':'1 CJ1 FIRST CHOICE REHABILITATION SPECIALISTS, INC, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA v. CHAD MADDEN and STEPHANIE MADDEN, NO. 04-3439 CIVIL TERM Defendants CIVIL ACTION - LAW : ""'-E,ooIlIlYLE TO ID,E CO~ JURY TRIAL DEMANDED TO: PROTHONOTARY K"""y_, R", 00 P1",,"lflo iii" "=P'''" in "" ,bow,,", wHltin "'Orty (20) day, of -" of"", R"',. " ""'" 'jod"""" of non "'" ."'""', 10 P,.R.C.p. lO37(,). HARTMAN, OSBORNE & RETTIG, P.C. DATE: #l.f NOW, SJ..p-t .<t'. RULE TO FILE COMPLAINT , 2004, RULE ISSUED AS ABOVE By:-""'" r--> c::> c;::;:) .... (/") I~'".l -'0 C.:> c::::> o "-0 .-1 :r: -n f-iip= '-c.Jn16 -~J .,') ~~j'-ri L-n ~.~~ :~~ :;;.0 :...:.: -0 --i''' _.",~ Y? C".1 ~ FIRST CHOICE REHABILITATION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 2004-3439 CIVIL TERM CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth aga.inst 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 th,: 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. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGffiLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 FIRST CHOICE REHABILITATION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA V. NO. 2004-3439 CIVIL TERM CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW COMPLAINT NOW, comes First Choice Rehabilitation Specialists, Inc. ("First Choice"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and fiI(:s the within Complaint and, in support thereof, sets forth the following: I. First Choice is a Pennsylvania cOlporation with its principal office located at 550 North 12th Street, Lemoyne, Cwnberland County, Pennsylvania. 2. Defendant, Chad Madden, is an adult individual with a residence address of7915 Eveningstar Drive, Harrisburg, Pennsylvania. 3. Defendant, Stephanie Madden, is an adult individual with a residence address of 7915 Eveningstar Drive, Harrisburg, Pennsylvania. 4. First Choice owns and operates twelve (12) physical therapy centers located in south central Pennsylvania. 5. Chad Madden is a physical therapist licensed by th,e Commonwealth of Pennsylvania. I 6. In the Fall of2002, Chad Madden had discussions with representatives of First Choice concerning the employment of Chad Madden by First Choice. These discussions took place in Cumberland County, Pennsylvania. 7. On or about November II, 2002, Chad Madden was hired by First Choice to be the clinic director for the First Choice facility located at 8170 Adams Drive, Suite 101, Hummelstown, Dauphin County, Pennsylvania. 8. In connection with that employment, Chad Madden was provided with written Job Descriptions for the position of Physical Therapist and Clinic Director which he reviewed and signed. True and correct copies ofthe Job Descriptions are attached hereto as Exhibit "A" and are incorporated by reference. As part of the Job Description for Clinic Director, Chad Madden was required to make sales calls on behalf of First Choice. 9. Chad Madden was provided with a document referenced as a "Non Compete Clause". Chad Madden reviewed and signed the Non Compete Clause. A true and correct copy of the Non Compete Clause is attached hereto as Exhibit "B" and is incorporated by reference. The Non Compete Clause was provided to Chad Madden and was signed by him in Cumberland County, Pennsylvania. 10. Chad Madden was provided with an agreement referenced as a "Confidentiality Information". Pursuant to this agreement, Chad Madden agreed he would not "...at any time, give or use information obtained by means of (his) official position, or under any circumstances divulge confidential information." A true and correct copy of the Confidentiality Information agreement is attached hereto as Exhibit "c" and is incorporated by reference. 2 II. From November II, 2002 through August 22, 2003, Chad Madden ran the Hummelstown First Choice Clinic. 12. Stephanie Madden, the wife of Chad Madden, was hired by First Choice on or about November 11,2002 as a clerical employee working in billing at the Camp Hill facility of First Choice. 13. From November II, 2002 through August 22,2003, Stephanie Madden worked for First Choice. 14. On or about July 24, 2004, Chad Madden provided First Choice with written notice that Chad Madden would be terminating his employment with First Choice as of August 23,2004. A true and correct copy of this notice of termination is attached hereto as Exhibit "D" and is incorporated by reference. 15. Shortly after Chad and Stephanie Madden left the employ of First Choice, First Choice learned Chad Madden had established his own physical therapy clinic. This business is known as Madden Physical Therapy with an address of 49 South Prince Street, Suite 100, Harrisburg, Dauphin County, Pennsylvania. Upon information 1md belief, Stephanie Madden was also involved in the establishment of this physical therapy business and is employed with said business. 3 16. In his position as Clinic Director at the First Choice Hummelstown facility, Chad Madden had access to and reviewed confidential business information of First Choice including, but not limited to: monthly financial reports; billing practices imd procedures; lists of referring physicians; marketing and sales forecasts; marketing methodologies; marketing strategies; sales volumes and histories and patient lists. 17. First Choice has invested substantial time, expense and effort to develop processes and procedures to increase its productivity and competitive advantage in the market. 18. First Choice has been careful and diligent in maintaining the confidentiality of its proprietary processes and procedures and trade secrets. 19. During her employment with First Choice, Stephanie Madden had access to and reviewed confidential business information of First Choice including, but not limited to: billing practices and procedures; patient lists and lists of referring physicians. 20. Throughout the period of Chad Madden's employment with First Choice, physical therapy services rendered in Pennsylvania could be provided only upon the referral of a licensed physician. 21. Upon information and belief, prior to providing Erst Choice with the written notice of his termination of employment, Chad Madden did set about upon a course to create and establish his own physical therapy clinic which became known as Madden Physical Therapy. The actions taken by Chad Madden in that regard included, but were not limited to, the following: 4 a) searching for an office location and entering into a lease for his physical therapy clinic, b) copying forms developed by First Choice in the operation of its business for use in his competing practice, c) contacting physicians who had regularly referred patients to First Choice with the purpose of seeking to have those physicians begin to refer patients to Madden's clinic rather than First Choice, d) reviewing and using the referral list devdoped by First Choice to develop a list of referral sources for his new clinic, e) contacting various health insurers to establish himself as a physical therapist accepted by those insurers, f) asking other employees of First Choice to join him in his new competing physical therapy clinic, g) informing patients he was seeing as an employee of First Choice that he would be leaving First Choice and establishing his own competing practice with the intend of inducing those patients to leave First Choice to become patients of his competing practice; h) preparing documents to establish a competing business entity known as Madden Physical Therapy, LLC; i) and other actions to establish a competing business while still in the employ of First Choice. 5 22. The above actions and activities of Chad Madden were undertaken by him while he was still in the employ of First Choice and while he was being compensated by First Choice. 23. After terminating his position with First Choice, Chad Madden began to contact individuals and entities with whom First Choice had contracted in the past. 24. During the period he was employed by First Choice, Chad Madden performed physical therapy services for certain individuals and entities for which he failed and refused to credit the funds received for these services to the accounts of Fiirst Choice. Upon information and belief, Stephanie Madden was aware of these activities by Chad Madden and she actively aided and abetted his conduct in this regard. 25. Defendants, Chad and Stephanie Madden, have wrongfully taken and used Plaintiff's trade secrets and confidential information for their benefit including, but not limited to, the following: a) taking and using the referring physician source information developed by First Choice to establish their own source information; b) having and retaining financial reporting information of First Choice provided to them while in the employ of First Choice; c) taking document formats developed by First Choice in the conduct of its business and using those documents in their competing practice; d) taking and using patient lists developed by First Choice in the conduct of its business; and, 6 e) taking and using the processes and procedures developed by First Choice which processes and procedures gave First Choice a competitive advantage in the market place. COUNT I BREACH OF CONTRACT FIRST CHOICE REHABILITATION SPECIALISTS, INC. v. CHAD MADDEN 26. Plaintiff incorporates by reference paragraphs one through twenty-five as though set forth at length. 27. Since leaving the employ of First Choice, Chad Madden has entered into direct and indirect competition with First Choice by opening a competing clinic known as Madden Physical 1l1erapy. 28. It is believed, and therefore averred, Chad Madden has contacted clients, customers and referral sources of First Choice in connection with the establishment and continuing operation of Madden Physical Therapy. 1l1ese contacts occurred within one (I) year from the termination of Chad Madden's employment with First Choice. 29. Chad Madden's actions are a direct and flagrant violation of the Non Compete Clause signed by him at or about the time he became employed by First Choice. 30. Chad Madden's actions are a direct and flagrant violation of the Confidentiality Information agreement signed by him at or about the time he becmne employed by First Choice. 7 31. As a direct and proximate result of Chad Madden's conduct, First Choice has suffered injury and losses including, but not limited to, the loss of existing and potential patients, referral sources, diminution in value of First Choice's business, disruption of its operations and injury to its goodwill. WHEREFORE, Plaintiff requests that judgment be entered in its favor and against Chad Madden for: a) compensatory damages in an amount in l:xcess of $25,000.00; b) consequential damages and/or loses arising from Chad Madden's breach of the Non Compete Clause and Confidentiality Information agreement; ~ c) recovery of the wages paid to Chad Madden by First Choice during the rn;io~, 200nhrough August 22,2003; ~J9 _ 'ti /l ~ d) costs and expenses of this action; and e) such other relief as the Court may deem proper and just. COUNT II BREACH OF PRE-RESIGNATION AND POST-RESIGNATION COMMON LAW AND FIDUCIARY DUTIES FIRST CHOICE REHABILITATION, INC. v. CHAD MADDEN and STEPHANIE MADDEN 32. Plaintiff incorporates by reference paragraphs one through thirty-one as though set forth at length. 8 33. While employed by First Choice, Chad and Stephanie Madden were in positions of trust and confidence, and as such, owed duties ofIoyalty, good faith and fair dealings to First Choice during and after their employment with First Choice. 34. By engaging in the conduct described above, D(:fendants breached their pre- resignation, post-resignation and common law fiduciary duties owed to First Choice. 35. The conduct of the Defendants was willful, intentional and unprivileged and has caused and continues to cause monetary injury to First Choice. 36. As a direct and proximate result of the conduct of Chad and Stephanie Madden, First Choice has suffered injury and losses including, but not limited to, the loss of existing and potential patients, referral sources, diminution in value of Plaintiff's business and injury to its goodwill. WHEREFORE, Plaintiff requests judgment in its favor and against Defendants as follows: a) compensatory damages in an amount in excess of $25,000.00; b) punitive damages as a result of the willful and intentional breaches of fiduciary and other duties owed by Defendants to Plaintiff; c) costs and expenses of this action, and d) such further relief as this Court may deem just and proper. 9 COUNT III MISAPPROPRIATION OF TRADE SECRETS AND CONFIDENTIAL INFORMATION FIRST CHOICE REHABILITATION, INC. v. CHAD MADDEN and STEPHANIE MADDEN 37. Plaintiff incorporates by reference paragraphs one through thirty-six as though set forth at length. 38. First Choice, at its exclusive time and expense, researched and developed confidential referral source lists, marketing strategies and forms for the submission of claims to insurers all of which constitute trade secrets and confidential information. 39. These trade secrets and confidential information were communicated to Chad Madden and Stephanie Madden while they were employed by First Choice. 40. Defendants, by engaging in all ofthe conduct described above, have misappropriated, retained and misused the trade secrets and confidential information of First Choice for their own benefit in violation of their confidential relationship with First Choice, the fiduciary and common law duties owed by them to First Choice and, as to Chad Madden, in violation of the Confidentiality Information agreement. 41. Defendants have used the trade secrets and confidential information of First Choice for the purpose of crippling and destroying the patient and referral bases of First Choice and, further, to effect a reduction in the market value and goodwill of First Choice. 10 42. Defendants' misappropriation and misuse of Plaintiff's trade secrets and confidential information has caused and is causing monetary damage to First Choice. WHEREFORE, Plaintiff requests judgment in its favor and against Defendants as follows: a) compensatory damages in an amount in excess of $25,000.00 and in an amount in excess ofthe limits requiring compulsory arbitration; b) punitive damages as a result of Defendants' willful and intentional misconduct; c) costs and expenses of this action and d) such other relief as this Court deems just and proper. COUNT IV INTENTIONAL INTERFERENCE WITH EXISTING CONTRACTUAL AND BUSINESS RELATIONSHIPS FIRST CHOICE REHABILITATION SPECIALISTS, INC. v. CHAD MADDEN 43. Plaintiff incorporates by reference paragraphs Ollie through forty-two as though set forth at length. 44. Plaintiff has an identifiable customer base with which Plaintiff has or had contractual relations. 45. Plaintiff has an identifiable customer base from which Plaintiff pursues prospective contractual relations. 46. Plaintiff has an identifiable base of referral sources developed over the years of its operations. II 47. While still in the employ of First Choice, Chad Madden did contact referring sources of First Choice with the intent and purpose of directing those referring sources to discontinue referring to First Choice and redirecting that business to Chad Madden's competing physical therapy practice. 48. While still in the employ of First Choice, Chad Madden did tell patients he was treating as en employee of First Choice that he was establishing his own practice with the intent and purpose of switching those patients from First Choice to Chad Madden's competing physical therapy practice. 49. The conduct of Chad Madden was with full knowledge, willful, intentional and unprivileged and has caused and is causing monetary damages to First Choice. WHEREFORE, Plaintiff requests judgment in its favor and against Chad Madden as follows: a) compensatory damages in an amount in excess of$25,000.00; b) consequential damages and/or losses for which Chad Madden's interference was the legal cause; c) actual damages accruing to Plaintiff for which Chad Madden's interference was the legal cause; d) punitive damages as a result of the willful and intentional misconduct of Chad Madden; e) costs of this action; and f) such other relief as this Court deems just and proper. Respectfully submitted, O'BRlEN, BARIC & SCH David A. Baric, Esquire J.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff dab.dirllitigationffirstchoicelmaddenlcomplaint2. pld II VERIFICATION The statements in the foregoing Complaint are based upon information which has been assembled by my attorney in this litigation. The language ofth,e statements is not my own. I have read the statements; and to the extent that they are based upon information which I have given to my counsel, they are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subjel~t to the penalties of 18 Pa.C.S. Section 4904 relating to unsworn falsifications to authorities. DATE: /o/;y/,'1 I ' ~&!rr President JOB DESCRIPTION Company: First Choice Rehabilitation Specialists Position Title: Clinic Director Source of Supervision: Managing Partners Direction Exercised: All Clinic Staff Primary Function: Operates the clinic in an em~ctive manner through integration ofleadership, sound fiscal management, supervisory responsibilities, and both short and long term planning, facilitating optimal' patient care. Budgets revenue goals and manages costs in order to meet the company's financial goals. ESSENTIAL FUNCTIONS: Duties for Physical Therapist also apply. Please see the appropriate job description. A. Management a. Directly supervises therapists, assistants and office personnel. Carries out supervisory responsibilities in accordance with the organization's policies and applicable laws. b. Provides leadership to all staff regarding their education, skills and ability, thereby promoting optimal patient care. c. Budgets effectively. d. Makes cost effective decisions e. Motivates, develops and retains qualified staff f Initiates disciplinary action g. Consistently communicates through staff meetings, annual reviews, and informal "open door policy". h. Identifies and analyzed problems, sets priorities, devised and effective solution and follows through. 1. Supports the company's financial standards J. Maintains safe and clean treatment and work environment k. Insures proper maintenance and repair of equipment. 1. Organizes and directs resources offacility m. Meets reporting requirements. n. Insures that all inter-office reporting requirements are met. B. Clinical a. Directs patient care and supervision of care including evaluation, assessment and planning to insure proper cas,e management. EXHIBIT "A" b. Maintains and demonstrates appropriate knowledge, skills and abilitie3s in field of acute care, chronic care and/or industrial rehabilitation. c. Delegated duties to clinic staff as appropriate. d. Acts as clinical instructor to student interns as appropriate. e. Works with managing partners to set and raise standards of service, quality and productivity f Assists managing partners in the development of clinic policies and procedures regarding patient care. C. Marketing/Outreach a. Makes sales calls to physicians, nurses, other clinicians and potential referral sources. b. Provides effective written and oral communication to all potential referral sources regarding First Choice Rehabilitation Specialists. c. Provides educational programs for referral sources and area business industries. d. Evaluates outcomes and results of treatment programs e. Implements clinic marketing programs and promotion of clinic. Other Functions: A. Operates office machinery such as typewriter, word processor, Dictaphone, etc. B. Speaks publicly C. Assists managing partners in setting and monitoring Continuous Quality Improvement standards. Qualification Requirements: A. Graduate of an accredited program in physical therapy. Minimum of2-5 years clinical experience. Management and/or administrative experience preferred. Licensed or eligible for licensure in Pennsylvania. B. Ability to. read, analyze and interpret general business periodicals professional journals, technical procedures, or governmental regulation. Ability to write reports, business correspondence and procedure manuals. Ability to effectively present infonnation and respond to questions from groups of managers, patients, customers and the general public. C. Ability to comprehend basic financial statements and reports D. Ability to apply principles oflogical or scientific thinking to a wide range of intellectual and practical problems. Ability to deal with nonverbal symbolism (fonnulas, scientific equation and graphs). Ability to deal with a variety of abstract and concrete variables. Work Environment: A. While performing the duties of this job, the employee occasionally works near moving mechanical parts. B. The noise level in the work environment is usually moderate. C. Possible exposure to airborne, blood and fluid borne pathogens. D. Ma;y be required to work in a space without windows. This is not necessarily an exhaustive list of all responsibilities, skills, duties, requirements, efforts, or working conditions associated ~ith the job. While this is intended to be an accurate reflection of the current job, management reserves the right to revise the job or to require that other of different tasks be perfonned with circumstances change (e.g., emergencies, changes in personnel, workload, rush jobs or technological developments). Signature indicates employee has read and understands thill job description. ~. -----.:' 2 h o/u <- Date JOB DESCRIPrION PHYSICAL THERAPIST Company: First Choice Rehabilitatiom Specialists, P.C. Position title: Physical Therapist Source of Supervision: Facility Manager Direction Exercised: Physical Therapist AssistaIlt, support staff Primary Function: Provide physical therapy care to outpatient and facility based clients/patients ESSENTIAL FUNCTIONS: 1. Complete physical therapy examination and evaluation 2. Develop care plan and goal statements 3. Reassess patient/client and revise plan of I;are as indicated 4. Document care provided as per company/facility standards 5. Understand and be compliant with company/facility billing practices 6. Communicate to other healthcare professionals as a trans-disciplinary team member 7. Be knowledgeable and capable in perfonnance of all modality and procedure treatment techniques used at thf: assigned worksite 8. Maintain confidentiality of patient/client information 9. Maintain respect for patient/ client/ staff 10. Provide needed supervision! guidance to PT A OTHER FUNCTIONS: 1. Organize and supervise patient schedule 2. Participate in monitoring and evaluating sf:rvices to assure excellence of quality of care and customer satisfaction. 3. Abide by all practice and facility policies and procedures 4. Maintain cleanliness and order of equipment and treatment areas 5. Participate in practice development activities KNOWLEDGE, SKILLS, EXPERIENCE REQUIRED 1. Graduate of CAPTE approved physical therapy educational program 2. Licensed to practice in Pennsylvania 3. Two years of related clinical experience 4. Strong interpersonal and communication skills 5. Ability to provide needed supervision and guidance to physical therapist assistant 6. Willingness to treat patient in need of comprehensive care I have reviewed and unders~ the qualifications and expectations of the job. Name with credential { lI1---."",tL ~)f'r-' Date /1-/3_/0 <- . . NON-COMPETE CLAUSE: Employee agrees not to enter into agreements with facilities and agencies presently contracted by FIRST CHOICE REHABILITATION SPECIALISTS, P.C. during the tenn of this contract and for one (1) year following the tennination of this contract, excluding home health agencies. {)d1/1~ d4nJt/:1J.JL -ptness !V/?-3(r1._ Date 16/...L\lh~ . Date EXHIBIT "B" Confide:lrialiry Informacion S::',ff 2.~e ~:r~:::.~i~_c~:7:~;:~ :=;ah-:t::~ Str:~::c:'i:r2~~.~;:1!~::;r r~:g::~~~g_ a:l_:~'.r~J~:t~:::~~~c,J~::~:!1~.i=2.d:~!s. 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Sig:oed: (/v",($! fl&b~ D..... .:.:.-. /O/;)'?/(J"z- EXHIBIT "C" First Choice Rehabilitation Specialists 240 Grandview Avenue - Suite 101 Camp Hill, PA 17011 July 24, 2003 Dale: Over the 10 years, you have shared and invested much time and energy with me. You have given me an excellent opportunity to grow as a leader and clinician with First Choice, and benefit from the years of experience of the group. I appreciate what you have done for me, Dale, more than words can express. After much deliberation and discussion with family and lov,ed ones, I have made a decision to resign my position as Clinical Director of the Hummelstown Clinic, effective August 22, 2003. This is my 4-week notice, as requested in the First Choice Policy and Procedures manual. Dale, I am confident with the experience and integrity of your company, you will continue to succeed and prosper for many years to come. My employment has been a pleasurable and desirable experience, and I have no regrets. I wish you the best in the future. Sincerely, {!~ ?h<J;f,- Chad M Madden MSPT EXHIBIT "D" CERTIFICATE OF SERVICE I hereby certifY that on October 14, 2004, I, David A. Baric, Esquire of O'Brien, Baric & S,h_, did ,on" , oopy of tho Comp'"", by JiM ,"" U.S. _ _ pre""", to tho _ listed below, as follows: Jeffery B. Rettig, Esquire Hartman, Osborne & Rettig, P.C. 126-128 Walnut Street Harrisburg, Pennsylvania 1710 I I << David A. Baric, Esquire r) '" ~-~ ..t:.-- C,) (~) -4 <:~? C) Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA FIRST CHOICE REHABILITATION SPECIALISTS, INC, v. NO. 04-3439 CIVIL TERM CHAD MADDEN and STEPHANIE MADDEN CIVIL ACTION - LAW Defendants JURY TRIAL DEMANDED NOTICE TO PLEAD TO: First Choice Rehabilitation Specialists, Inc. c/o David A. Baric, Esquire 19 West South Street Carlisle, PA 17013 (Attorney for Plaintiff) You are hereby notified to file a written response to the enclosed answering Defendants' Answer with New Matter within twenty (20) days from service hereof or a judgment may be entered against you. Respectfully submitted, HARTMAN, OSBORNE & RETTIG, P.C. dIcey B. Rettig, E Supreme Ct. I.D. # 16 126-128 Walnut Street Harrisburg, P A 17101 (717) 232-3046 Attorneys for Defendants Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA FIRST CHOICE REHABILITATION SPECIALISTS, INC, v. NO. 04-3439 CIVIL TERM CHAD MADDEN and STEPHANIE MADDEN CIVIL ACTION - LAW Defendants JURY TRV\L DEMANDED ANSWER OF DEFENDANTS, CHAD MADDEN AND STEPHANIE MADDEN TO PLAINTIFF'S COMPLAINT WITH NEW MATTER AND NOW, come the Defendants, by their Attorneys, Hartman, Osborne & Rettig, and Answer Plaintiff's Complaint as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Denied as stated. It is admitted that in the Fall of2002, Defendant, Chad Madden, had discussions with Gary Karkuff and Dale Hilbolt concerning the employment of Chad Madden by First Choice. These discussions took place in Dauphin County, Pennsylvania. 7. Admitted. 8. Admitted except as to the last sentence ofthe paragraph. With respect to the provisions of the job description, the language thereof speaks for itself. I 9. Denied as stated. It is admitted that Defendant Chad Madden was provided with a document similar to that attached as Exhibit "B". Answering Defendant is unsure whether the document had the words "non-compete clause" at the top thereof. It is admitted that Mr. Madden signed the document in Cumberland County, Pennsylvania. 1 O. Denied as stated. It is denied that the form attached as Exhibit "B" represents an agreement or contract. To the contrary, the document sets forth Plaintiffs policy concerning the confidentiality of patients' records and information and Mr. Madden's willingness to adhere to that policy. The terms of the document speak for themselves. 11. Denied. To the contrary, Mr. Madden ran the Hummelstown First Choice Clinic from November 11, 2002 through on or about August 1, 2003. 12. Denied. It is denied that Stephanie Madden was hired by First Choice on or about November 11, 2002. It is admitted that when she was hired by First Choice it was as a clerical employee working in billing at the Camp Hill facility of First Choice. 13. Denied. It is denied that Stephanie Madden worked for First Choice from November 11,2002 through August 22,2003. 14. Denied. The letter from Chad Madden attached as Exhibit "D" speaks for itself. 15. Denied as stated. As to the first sentence of this paragraph, after reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. It is admitted that as of September 12,2003 Madden Physical Therapy opened for business at the address of 49 South Prince Street, Harrisburg, Dauphin County, Pennsylvania. As to the last sentence of this paragraph, this allegation is denied. 2 16. Denied as stated. It is admitted that as clinic direl;tor, Defendant, Chad Madden had access to some business records of First Choice. The precise names of those business records are not known to Defendant. Most of the records furnished to Mr. Madden were limited to the activities of Hummelstown Clinic rather than for the entin~ operation of First Choice. It is specifically denied, based on information and belief, that Chad Madden received patient lists or that all the information furnished to Mr. Madden was confidential. 17. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. 18. Denied. After reasonable investigation, Defendaillts are without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. 19. Denied. To the contrary, during the time that D(~fendant, Stephanie Madden, was employed by First Choice, her job involved reviewing printouts containing patients' names with outstanding balances for bill collection purposes. 20. Admitted. 21. Denied as stated. It is admitted that prior to July 24, 2003; Chad Madden had made some inquires and had given some thought to establishing a physical therapy clinic. a. Denied as stated. It is admitted that Defendant, Chad Madden, did explore the possibilities of renting and securing an office location prior to July 24, 2003. It is denied that Mr. Madden entered into a lease for a physical therapy clinic prior to July 24,2003; b. Denied. It is denied that prior to July 24, 2003, Mr. Madden copied forms developed by First Choice for use in another practice; c. Denied. It is denied that Mr. Madden contacted physicians prior to July 3 24, 2003, who had regularly referred patients to First Choice for the purpose of seeking to have those physicians refer patients to Mr. Madden's clinic rather than First Choice; d. Denied. It is denied that prior to July 24, 2003, Mr. Madden, reviewed and used a referral list developed by First Choice in order to develop a list of referral sources of his own; e. Denied as stated. It is admitted that Chad Madden did contact health insurers to solicit information as to what he might need to do if he opened a physical therapy clinic; f. Denied. It is denied that, prior to July 24,2003, Mr. Madden asked other employees of First Choice to join him in a physical therapy practice; g. Denied. It is denied that prior to July 24,2003, Mr. Madden informed patients he was seeing as an employee of First Choice that he was leaving First Choice and establishing a competing practice with the intent to induce those patients to leave First Choice to become patients of his practice; h. Denied. It is denied that prior to July 24,2003, Mr. Madden prepared documents to establish a competing business entity known as Madden Physical Therapy, LLC; 1. Denied. It is denied that Mr. Madden undertook any other actionsnprior July 24,2003 to establish a competing business. 4 22. Denied. The answers to paragraph 21 above are incorporated herein by reference thereto. It is further denied that Mr. Madden undertook any activities regarding the possibility 'of him opening his own practice while he was being compensated by First Choice. - 23. Denied. To the best of Chad Madden's knowledge, it is denied that he contacted individuals and entities with whom First Choice had contracted in the past after the termination of his position with First Choice. 24. Denied. It is denied that Chad Madden, while employed with First Choice performed physical therapy services for individuals and entities for which he failed or refused to credit the funds received for those services to the accounts of First Choice. It is further denied that Defendant, Stephanie Madden, was a.ware of or actively aided and abetted such activities as it is denied that such activities actually occurred. 25. Denied. It is denied that the Defendants wrongfully took or used any documents or information which could be considered Plaintiff s trade secrets or confidential information. a. Denied. It is denied that Defendants used any referring physician source information developed by First Choice to establish their own source information; b. Denied. Any financial reports that Defendants had of First Choice that was provided to them while in the employ of First Choice were 5 either returned to First Choice or destroyed. c. Denied. It is denied that Defendants took document formats developed by First Choice in the conduct of its business and used those documents in the Madden Physical Therapy practice; d. Denied. It is denied that Defendants took or used any patient lists developed by First Choice; e. Denied. Defendants are unaware of what is referred to by "processes and procedures developed by First Choice". However, Defendants deny using any trade secrets or confidential information developed by First Choice and using it in connection with Madden Physical Therapy. COUNT I - BREACH OF CONTACT FIRST CHOICE REHABILITATION SPECIALISTS. INC. v. CHAD MADDEN 26. The answers to paragraphs 1 through 25 above are incorporated herein by reference thereto. 27. Denied. After reasonable investigation, Answering Defendant is without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. It is admitted that Answering Defendant has opene:d a clinic known as Madden Physical Therapy. 28. Denied as stated. It is denied that Answering Defendant contacted clients or customers of PlaintitI in connection with the establishment of Madden Physical Therapy. It is admitted that Answering Defendant contacted several referral sources to inquire about non- 6 compete clauses and the advantage of sole proprietorship. As to the balance of the allegations of this paragraph, after reasonable investigation, Answering Defc:mdant is without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. 29. Denied. It is denied that Chad Madden violated the so-called "non-compete clause" or that the so-called "non-compete clause" is binding on Chad Madden. 30. Denied. It is denied that Chad Madden violated the terms of the confidentiality information document attached to Plaintiff's Complaint. 31. Denied. After reasonable investigation, Answering Defendant is without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. WHEREFORE, Defendant, Chad Madden, requests that Count I of Plaintiff's Complaint dismissed without cost to him. COUNT II - BREACH OF PRE-RESIGNATION AND POST-UESIGNATION COMMON LAW AND FIDUCIARY DUTIES FIRST CHOICE REHABILITATION. INC. v. CHAD MADDEN AND STEPHANIE MADDEN 32. The answers to paragraphs 1 through 31 above are incorporated herein by reference thereto. 33. This allegation represents a conclusion oflaw to which no reply is required. 34. Denied. It is denied that Defendants breached any duties owed to First Choice. 35. Denied. These allegations represent conclusions oflaw to which no reply is required. In further answer, it is denied, based on Defendants information and belief, that their conduct caused any monetary injury to First Choice. 36. Denied. After reasonable investigation, Defendants are without knowledge or 7 information sufficient to form a belief as to the truth thereof and. proof is demanded. WHEREFORE, Defendants request that Count II of Plaintiff's Complaint be dismissed without cost to them. COUNT III - MISAPPROPRIATION OF TRADE SECRETS AND CONFIDENTIAL INFORMATION FIRST CHOICE REHABILITATION INC. v. CHAD.MADDEN AND STEPHANIE MADDEN 37. The answers to paragraphs 1 through 36 above are incorporated herein by reference thereto. 38. Denied. Based on information and belief, it is denied that the documents referred to in this paragraph represent trade secrets, confidential information or were researched and developed exclusively by Plaintiff. 39. Denied. Based on information and belief, it is denied that the documents and information communicated to the Answering Defendants represented trade secretes or confidential information. 40. Denied. It is denied that the Defendants misappropriated, retained or misused any trade secrets or confidential information of First Choice for thc~ir own benefit in violation of any relationship they had with First Choice or any other duty or obligation. It is further denied that Defendants violated any provision of the confidentiality infoIDlation form. 41. Denied. It is denied that Answering Defendants used Plaintiff's trade secrets or confidential information, if any, to cripple, destroy or otherwise affect the patient and referral bases of First Choice or to effect a reduction in the market value and good will of First Choice. 42. Denied. It is denied that Defendant misappropriate or misused Plaintiff's trade 8 secrets and confidential information, if any, or that their action caused monetary damages to Plaintiff. WHEREFORE, Defendants request that Count III ofPlaintiiPs Complaint be dismissed without cost to them. COUNT IV- INTENTIONAL INTERFERENCE WITH EXISTING CONTRACTUAL AND BUSINESS RELATIONSHIPS FIRST CHOICE REHABILITATION SPECIALISTS INC. v. CHAD MADDEN 43. The answers to paragraphs 1 through 42 above are incorporated herein by reference thereto. 44. Denied. After reasonable investigation, Defendant, Chad Madden, is without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. 45. Denied. After reasonable investigation, Answering Defendant is without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. 46. Denied. After reasonable investigation, Answering Defendant is without knowledge or information sufficient to form a belief as to the truth thereof and proof is demanded. 47. Denied. It is denied that Chad Madden, while <:mployed by First Choice, contacted referring sources of First Choice with the intent or purpose of directing those referring sources to discontinue referring to First Choice and redirecting that business to another physical therapy practice. 48. Denied. It is denied that Chad Madden did, while in the employ of First Choice, 9 tell patients he was treating as an employee of First Choice that he was establishing his own practice with the intent and purpose of switching those patients from First Choice to another physical therapy practice. 49. Denied. These allegations represent conclusions of law to which no reply is required. It is further denied, based on information and belief, that First Choice has suffered any monetary damages. WHEREFORE, Answering Defendant requests that Count N of Plaintiff's Complaint be dismissed without cost to him. NEW MATTER 50. Plaintiff's claims fail to state claims upon which relief may be granted. 51. Count I of Plaintiff's Complaint purports to set forth a claim for breach of contract and alleges, at paragraph 29, that Chad Madden violated the so-called "non-compete clause". 52. According to the so-called "non-complete clause", by signing that paper Mr. Madden agreed "not to enter into agreements with facilities and agencies presently contracted by First Choice Rehabilitation Specialists, P.C. during the term of this contract and for one (1) year following the termination of this contract, excluding home health agencies." 53. Plaintiff's Complaint fails to assert or allege that Mr. Madden entered into any agreements with facilities and agencies that were contracted by Plaintiff. 54. To the extent that Plaintiff's complaint alleges that the so-called "non-compete clause" and so-called confidentiality information provisions represent a contract between Chad Madden and the Plaintiff, such claims are without merit as there is no indication that those documents represent binding contracts since, among other reasons, they fail to include any contractual terms, are not signed by or on behalf of the Plaintiff and no consideration was 10 exchanged in return for Mr. Madden's signature on those documents. 55. Clause "c" of the Ad damnum Clause for Count I of Plaintiff's Complaint seeks to recover wages paid to Chad Madden for the period May 2003 through August 22, 2003. Plaintiff's Complaint fails to set forth any legal basis either contractual or otherwise, for that claim. 56. Plaintiff's Complaint seeks punitive damages in Counts II, III and IV. Plaintiff's claims for punitive damages are without basis in fact and any award of punitive damages under the facts of this case would be in violation of the Pennsylvania and United States Constitutions. 57. In or about April, 2003, Defendant, Chad Madden was approached by Gary Karkuffwith the request that Mr. Madden sign a non-compete clause. Mr. Madden refused to do so at the time. 58. In or about May, 2003, Mr. Karkuff again broached the subject of signing of non- compete clause with Chad Madden. Again, the non-compete clause was not signed. 59. Defendant, Chad Madden, had no employment c:ontract with Plaintiff. WHEREFORE, Defendants request that Plaintiff's Complaint be dismissed without cost to them. Respectfully submitted, HARTMAN, OSBORNE & RETIIG, P.C. Date:~r e:ffrey B. Rettig, Es upreme Ct. LD. #1 16 126-128 Walnut Street Harrisburg, PA 17101 (717) 232-3046 Attorneys for Defendants 11 VltR1FICATION W". Chad MaddR and Stcpbaale Maddea, hereby verify and state that the facts set forth - -- --- -- ---- in the foregoing document ..rc true and correct to the best of OUl' infi3nnation, knowledge and belief. We Wldcrstmd that false statements herein are made subject lo the penalties oftS Pa. C.S.A. Section 4904 rdating to unswom verification 10 authorities. O.ed: 10 .'2-7,- 0 i- tJ!k.{ ( . Madden Date: II) -;J.7 - bJ./ ~AIJ<f'I.L~ f1(Jd~ Stcph . c Madden CERTIFICATE OF SERVICI~ I, J etrrey B. Rettig, Esquire, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated bdow, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States mail, first-class postage prepaid, as follows: David A. Baric, Esquire 19 West South Street Carlisle, PAl 7013 (Attorney for Plaintiff) E & RETTIG, P.C. , Jeffrey B. Retti squire Supreme Ct. LD. #19616 126-128 Walnut Street Harrisburg, P A 171 01 (717) 232-3046 Date: /fr0?( Attorneys for Defendants 0 ~ ~ c::::> s; c::::':' ...;;:.- -;::: -\ ....~} \ :J.:o. (1 ',I (.;:) t1''\r- -,' -:. ~-' -0 I" 4:-:: :ny (.f~ - '~';"I '" :, 0") .__It ~.\..J _'~ ""1", -0 ..--n "?'~, (-, - ':2 (") j; ~:~.~ ->~ ~" \""0 c...) .~:? ;:' 11 -l ", -... --I ~ II FIRST CHOICE REHABILITATION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 2004-3439 CIVIL TERM CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW REPLY TO NEW MATTER NOW, comes Plaintiff, First Choice Rehabilitation Specialists, Inc. ("First Choice"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Reply to New Matter and, in support thereof, sets forth the following: 50. This averment constitutes a conclusion oflaw to which no response is required. To the extent a response may be deemed required, the averment is denied. 51. Denied as stated. To the contrary, Count I does set forth a breach of contract cause of action against Chad Madden and that Chad Madden did breach the terms of the non-compete clause. 52. The document is a writing which speaks for itself and no response is required. By way of further answer, it is averred that Chad Madden and First Choice, in executing the referenced contract, understood and intended to preclude Chad Madden from contacting referring physicians of First Choice for a period of one (1) year after his employment with First Choice ended. 53. Denied. Plaintiff incorporates by reference its averments at paragraph 52 as though set forth at length. Moreover, Plaintiff's complaint includes averments that Chad Madden did seek out and contact referring physicians both before and after his employment with First Choice ended. II 54. The documents are writings which speak for themselves. By way of further answer, it is denied that said claims are without merit. To the contrary, the Non-Compete Clause states that the document is a "contract". Consideration included the hiring of Chad Madden as a physical therapist with First Choice. 55. Denied. To the extent Chad Madden was using his compensated time to establish a competing business it is submitted he is required to return that compensation. 56. Denied. To the contrary, the intentional and willful acts of the Defendants as set forth in the complaint justify an award of punitive damages under applicable law. 57. Admitted in part and denied in part. It is admitted only that an additional non- competition agreement was presented to Chad Madden by Gary Karkuff at the time Madden was being considered to be made a "partner" in the business and that Madden did not sign this additional non- competition agreement. To the extent these averments imply that Madden was not already bound to obligations of non-competition, the averments are denied and, it is averred, Madden was bound to not compete with First Choice. 58. Plaintiff incorporates by reference its averments set forth at paragraph 57 as though set forth at length. 59. Admitted in part and denied in part. It is admitted only that Chad Madden did not enter into a written contract of employment with First Choice. It is denied that Chad Madden did not have duties and obligations to First Choice as established in the documents appended to the complaint and as set forth in the common law. II WHEREFORE, Plaintiff requests judgment be entered in accordance with the relief requested in it's Complaint. Respectfully submitted, It:;?2HE David A. Baric, Esquire I.D. 44853 19 West South Street Carlisle, Pennsylvania l70 13 (717) 249-6873 Attorney for Plaintiff da b.dir /litigation/firstchoice/madden/newmatter. rep II VERIFICATION I verify that the statements made in the foregoing Reply To New Matter are true and correct to the best of my knowledge, information and belief. This verification is signed by David A. Baric, Esquire, Attorney for Plaintiff and is based upon the statements provided by Plaintiff, as well as documents reviewed by the undersigned as attorney for Plaintiff. This verification will be substituted and ratified by a verification signed by the Plaintiff who is presently unavailable to sign said verification. I undersigned that false statements herein are made subject to penalties of 18 Pa.C.S. 94904, relating to unsworn falsifications to autho . ties. Z Dated: 1(/iP(tJr David A. Baric, Esquire II CERTIFICATE OF SERVICE I hereby certify that on November / ~ ,2004, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Reply To New Matter, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Jeffrey B. Rettig, Esquire Hartman, Osborne & Rettig, P.C. 126-128 Walnut Street HmriSbur~~ti David A. Baric, Esquire n ,.....~ , ,.' -t:~::) C.') ,( :";') ..J,..- -71 :-:;1 ~ 111 iIJ I i'I, e, ('" ,..J -- C) ",.,1 '-1 -... ,~ f' " .. , " .. ( ['.) .-1"\ :'~\ w~'- -:~ W <, FIRST CHOICE REHABILITATION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004-3439 CIVIL TERM V. CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW MOTION FOR PROTECTIVE ORDER NOW, comes Plaintiff, First Choice Rehabilitation Specialists, Inc. ("First Choice"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Motion for Protective Order and, in support thereof, sets forth the following: 1. Plaintiff initiated this action against the Defendants who are former employees of Plaintiff. 2. Plaintiffs claims center upon actions of the Defendants in misappropriating trade secrets and confidential business information of First Choice to establish a competing business known as Madden Physical Therapy, LLC. 3. Defendants have served First Choice with Interrogatories. A true and correct copy of the Interrogatories of Defendants is attached hereto as Exhibit "A" and is incorporated by reference. 4. Interrogatories 3, 4, 5, 6, 7 and 10 request First Choice to produce to Defendants confidential business information and trade secrets. 5. Defendants have served First Choice with a Request for Production of Documents. A true and correct copy of this Request for Production is attached hereto as Exhibit "B" and is incorporated by reference. 6. Requests numbers 1, 2, 5, 6, 7 and 9 request First Choice to produce to Defendants confidential business information and trade secrets. 7. Pa R.C.P. 4012 provides for Protective Orders from discovery requests in the situation where one or more of the following conditions is present: "(9) that a trade secret or other confidential research, development of commercial information shall not be disclosed or be disclosed only in a designated way." 8. First Choice has served Interrogatories and Document Requests upon Defendants. True and correct copies of these Interrogatories and Document Requests are attached hereto as Exhibits "C" and "D", respectively, and are incorporated by reference. 9. Much of the information sought by First Choice through its discovery requests is necessary to formulate responses to the discovery requests of Defendants. 1 O. The time period for production of documents and answers to the interrogatories of First Choice have expired with Defendants not having answered the interrogatories or produced the documents. 11. Defendants have provided Objections to certain of the interrogatories and document requests of First Choice as reflected in the document attached hereto as Exhibit "E". WHEREFORE, Plaintiff requests that this Court issue an Order that trade secrets of First Choice not be disclosed or be disclosed only in a way designated by this Court which will protect First Choice from further harm and will not permit Defendants to use said information to the detriment of First Choice. Respectfully submitted, fi:72E David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 dab.dir/litigation/firstchoice/madden/protectiveorder. mot re.c.elv-d LII-,-1~-04- 1 Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA FIRST CHOICE REHABILITATION SPECIALISTS, INC, .' v. NO. 04-3439 CNIL TERM CHAD MADDEN and STEPHANIE MADDEN CIVIL ACTION - LAW Defendants JURY TRIAL DEMANDED DEFENDANTS, CHAD MADDEN AND STEPHANIE MADDEN, INTERROGATORIES ADDRESSED TO PLAINTIFF TO: First Choice Rehabilitation Specialists, Inc. c/o David A. Baric, Esquire 19 West South Street Carlisle, PAl 70 13 (Attorney for Plaintiff) PURSUANT TO THE PROVISIONS of the Pennsylvania Rules of Civil Procedure, as amended, you are required to forward a copy to the undersigned and retain the original, of your answers and objections, if any, in writing and under oath, to the following Interrogatories, within thirty (30) days of service hereof. The Answers shall be inserted in the spaces provided following the Interrogatories. Ifthere is insufficient space to answer an Interrogatory, the remainder of the answer shall follow on a supplemental sheet. EXHIBIT "A" 1 DEFINITIONS AND INSTRUCTIONS A. "DOCUMENT' - writings or recordings of any kind, whether handwritten, typed or printed, and including, but not limited to, letters, memoranda, bulletins, orders, photographs, microfilms, resolutions, books, computer printouts, computer cards, papers, pamphlets, notebooks, diaries, notes, recording tapes, recording discs, recording wires, manuals, regulations, rules, and forms. B. "IDENTIFY" - when used with reference to a person, shall mean and include the full name, present or last known business address, and if an individual, present or last known home address; each of his or her employers titles with respect to the period covered by these Interrogatories; a description of each duty and responsibility held by each such individual. When used with references to a document or writing, the word "identify" shall mean to include the date it was written; identify each person to how it was addressed and identify each person to whom a copy was identified as being directed, identify each person who received a copy of the document or writing with a description of the document or writing as for instance, "letter", "memorandum"; include the present location and identify its custodian. If any document or writing is no longer in your possession or subject to your control, state what disposition was made of it, the reason for such disposition, the date thereof, and identify its current or last known location and custodian. Whenever you are asked to "identify" an oral communication, the following information should be given as to each oral communication of which you are aware, whether or not you or others were present or participated therein. This information includes the means of communication (e.g. telephone, personal conversation, etc.); where it took place; its date; the names, addresses, employers and positions of all persons who participated in, or who were involved in the communication, all other 2 persons who were present during or who overheard that communication, the substance of who said what to whom and the order in which it was said, and whether that communication, or any part thereof, was recorded or referred to in any document. C. "CONCERN", "CONCERNED", or "CONCERNING" - means referring or relating to, pertaining to, commenting on, or connected with, in any manner whatsoever. D. "YOU", "YOUR" - means the person in whose name this action is brought, his employees, officers, representatives, agents, and attorneys, or any person working for such persons. E. If you claim that the subject matter of a document or oral communication is privileged, you need not set forth the brief statement of the subject matter of the document, or the substance of any oral communication called for above. You shall, however, otherwise "identify" such document or oral communication and shall state each ground on which you claim that such document or oral communication is privileged. (F) As used herein, the term "STATEMENT" means a written statement signed or otherwise adopted or approved by the person making it, or a stenographic, mechanical, electrical or other recording, or a transcription thereof, which is a substantially verbatim recital of an oral statement by the person making it and contemporaneously recorded. These Interrogatories are deemed to be continuing in nature, in accordance with the provisions of the Pennsylvania Rules of Civil Procedure, as amended. If between the time of forwarding your original answers to these Interrogatories, and the time of trial of this matter, you or anyone acting on your behalfleam the identity and location of additional persons having knowledge of discoverable facts and the identity of persons expected to be called as an expert witness at trial not disclosed in your Answers, or if you or an expert witness obtain information upon the basis of which you or he knows that an Answer, was incorrect when made, or knows that an Answer, though 3 correct when made, is no longer true, then you shall promptly supplement your original Answers under oath to include such infonnation thereafter acquired, and promptly furnish such a supplemental Answer on the undersigned. HARTMAN, OSBORNE & RETIIG, P.C. Jeffrey B. Rettig, Esqu' e 126-128 Walnut Street Harrisburg, P A 17101 (717)-232-3046 4 1. State whether the Plaintiff ever approached any of its employees in 2003 with the request that they sign Non-Compete Clauses. If so, please state who was approached, who requested that the employees sign Non-Compete Clauses and attach copies of the proposed Non-Compete Clauses to your answers to these interrogatories. ANSWER: 2. If you claim that Chad Madden was under a contract for employment with First Choice Rehabilitation Specialists Inc., state the following: a. The start date of that contract; b. The termination date of the contract; c. Set forth all tenns of the contract including the amount of compensation to be paid; and, d. State whether the contract was signed on behalf of the Plaintiff and, if so, by whom. ANSWER: 5 3. Attached as Exhibit "B" to the Plaintiff's Complaint is a so-called ''Non-Compete Clause". With respect to that clause, identify each of the ''facilities and agencies presently contracted by First Choice Rehabilitation Specialists, P .C." by name and address as well as the terms of each said contract. Please attach copies of all such contracts to your answers. ANSWER: 4. With respect to Exhibit "B" of Plaintiff's Complaint, identify by name and address each "facility and agency" which was under contract to Plaintiff in October of2002 and which you claim Mr. Madden entered into an agreement with. ANSWER: 6 5. In paragraph 16 of your Complaint, you identify various documents which you characterize as "confidential business infonnation" which Chad Madden had access to. Please identify each item of "confidential business infonnation" which you claim Mr. Madden had access to and reviewed and attach copies of each such item to these answers to interrogatories. ANSWER: 6. In paragraph 25 of your Complaint, you state that the Defendants have wrongfully taken and used Plaintiff's trade secrets. With respect to that allegation, identify each trade secret you claim was taken and used by the Defendants, when it was taken and how it was used. Attach copies of each such trade secret to your answers to interrogatories. ANSWER: 7 7. In paragraph 19 of your Complaint you allege that Stephanie Madden had access to and reviewed confidential business information of First Choice. With respect to that allegation, specifically identify each alleged item of "confidential business information" that Stephanie Madden had access to and set forth how she allegedly used said confidential business information. ANSWER: 8. In paragraph 21 (b) of your Complaint, it is alleged that Chad Madden copied forms developed by First Choice in the operation of its business for use in his competing practice. With respect to that allegation, identify each form that you allege Chad Madden copied and used in his business and identify by name and address each witness who will testify with respect to the copying of forms developed by First Choice and their use by Mr. Madden in his competing practice. ANSWER: 8 9. In paragraph 21(c) of your Complaint, you state that Mr. Madden contacted physicians who had regularly referred patients to First Choice with the purpose of seeking to have those physicians begin to refer patients to Mr. Madden's clinic. With respect to that allegation, identify the physicians who you claim Mr. Madden contacted, the date or dates of the contact and identify all witnesses who will so testify to said contacts. ~NSWER: 10. In paragraph 21 (d) of your Complaint, you allege that Mr. Madden reviewed and used the referral list developed by First Choice to develop a list of referral sources for his new clinic. With respect to that allegation, identify the specific referral list developed by First Choice and set forth the basis for your claim that Mr. Madden used that referral list to develop a list of referral sources to his own clinic. Identify by name and address each witness who you claim will so testify. ANSWER: 9 11. In paragraph 21 (f) of your Complaint, you allege that Mr. Madden asked other employees of Plaintiff to join him in his competing physical therapy clinic. As to that allegation, identify each employee that you claim Mr. Madden asked to join him in his new physical therapy clinic and identify by name and address each witness who will so testify. ANSWER: 12. In paragraph 21 (g) of your Complaint, you allege that Mr. Madden infonned patients that he was seeing as an employee of First Choice that he would be leaving First Choice and establishing his own competing practice and that he did so with the intent to induce those patients to leave First Choice. With respect to that allegation, identify each patient who you claim Mr. Madden contacted and identify by name and address each person who will so testify. ANSWER: 10 13. In paragraph 21(i) of your Complaint, you allege that Mr. Madden performed "other actions" to establish a competing business while still in the employ of First Choice. With respect to those other actions, identify each and every "other action" and identify by name and address every person who will so testify with respect to the other actions. ANSWER: 14. In paragraph 24 of your Complaint, it is alleged that Mr. Madden performed physical therapy services for certain individuals and entities for which he failed and refused to credit the funds received for these services to the accounts of First Choice. With respect to that allegation, identify each individual and entity for whom Mr. Madden performed such services and identify by name and address each witness who will testify regarding this allegation. ANSWER: 11 15. In paragraph 24 of your Complaint, you allege that Stephanie Madden was aware of the alleged activities of Chad Madden and that she actively aided and abetted his conduct in this regard. With respect to that allegation, set forth all facts which support that allegation and identify by name and address each witness who will so testify. ANSWER: 16. In paragraph 25(b) of your Complaint, it is alleged that Mr. Madden retained financial reporting information of the Plaintiff. Identify each item of financial reporting information that you claim Mr. Madden retained and identify each and every witness who will so testify. ANSWER: 12 17. In paragraph 28 of your Complaint, it is alleged that Mr. Madden has contacted "clients, customers and referral sources of First Choice". Identify each such client, customer and referral source who you claim has been contacted by Mr. Madden and identify by name and address each witness who will so testify. ANSWER: 18. In paragraph 31 of your Complaint, you allege that First Choice has suffered injuries and losses including but not limited to the loss of existing and potential patients, referral sources, diminution of value of First Choice's business, disruption ofits operations and injury to its goodwill. As to each category of damages, set forth how you have determined the value or cost ofloss or injury and the dollar amount of each loss or injury. ANSWER: 13 20. State whether you claim that Mr. Madden entered into a written contract with First Choice. If so, attach a copy of the written contract. If you claim that Mr. Madden entered into a verbal contract with First Choice, identify the individual or individuals from First Choice who entered into that verbal contract with Mr. Madden. ANSWER: Respectfully submitted, HARTMAN, OSBORNE & RETIIG, P.C. Date: Je ey B. Rettig, Esq . Supreme Ct. LD. #1 616 126-128 Walnut Street Harrisburg, P A 17101 (717) 232-3046 Attorneys for Defendants 14 CERTIFICATE OF SERVICE I, Jeffrey B. Rettig, Esquire, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States mail, first-class postage prepaid, as follows: David A. Baric, Esquire 19 West South Street Carlisle, P A 17013 (Attorney for Plaintiff) effrey B. Rettig, Es If Supreme Ct. I.D. #19 6 126-128 Walnut Street Harrisburg, P A 17101 (717) 232-3046 Date: /1J-1/f)t( Attorneys for Defendants r~"Piv-1 I n<~-D4- Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA FIRST CHOICE REHABILITATION SPECIALISTS, INC, v. NO. 04-3439 CIVIL TERM CHAD MADDEN and STEPHANIE MADDEN CIVIL ACTION - LAW Defendants JURY TRIAL DEMANDED DEFENDANTS' REQUEST FOR PRODUCTION OF DOCUMENTS ADDRESSED TO PLAINTIFF TO: First Choice Rehabilitation Specialists, Inc. c/o David A. Baric, Esquire 19 West South Street Carlisle, P A 17013 (Attorney for Plaintiff) Defendants hereby request that you furnish pursuant to Rule 4009 of the Pennsylvania Rules of Civil Procedure, at our expense, or permit the Defendant or someone acting on its behalf to inspect, examine, and copy the following items concerning this action which are in the possession, custody, or control of the Plaintiff, counsel for the Plaintiff, or any other person or entity acting on behalf of the Plaintiff, including any insurer(s) for Plaintiff. Said items shall be produced or made available for inspection at the office of Defendants' attorneys located at 126- 128 Walnut Street, Harrisburg, Pennsylvania, within thirty (30) days after service of this Request, on a date and time to be arranged between counsel: EXHIBIT "B" 1. Attach copies of First Choice Rehabilitation Specialists, Inc's complete Federal Income Tax Returns for the years 2001 through the present inclusive. 2. Attach copies of any all additional documentation which you claim document the alleged losses sustained by First Choice by Mr. Madden's starting his own physical therapy clinic. 3. Attach a complete copy of Chad Madden's personnel file with First Choice. 4. Attach a complete copy of Stephanie Madden's personnel file as maintained by First Choice. 5. Attach copies of all claimed "confidential business information" as referred to in paragraph 16 of your Complaint. 6. Attach copies of all of Plaintiff s "trade secrets" as referred to in paragraph 25 of Plaintiff' s Compliant. 7. Attach copies of all contracts between First Choice and other "facilities and agencies" that were in effect as of October 23, 2002 as referred to in the so-called Non-Compete Clause attached as Exhibit "B" to Plaintiffs Complaint. 8. Attach a complete copy of First Choice Policy and Procedures Manual in effect during the time Mr. Madden was employed by First Choice. , 9. Attach copies of financial records fro the Harrisburg, Linglestown and Hummelstown clinic of the Plaintiff, including profit and loss statements for the years 2001 to 2004. FIRST CHOICE REHABILITATION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004-3439 CIVIL TERM V. CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW FIRST SET OF INTERROGATORIES OF PLAINTIFF PROPOUNDED UPON CHAD AND STEPHANIE MADDEN PLEASE TAKE NOTICE that you are hereby required pursuant to Pennsylvania Rules of Civil Procedure 4009.1, to file the original and serve upon the undersigned a copy of your Answers and Objections, if any, in writing and under oath, to the following Interrogatories within I I thirty (30) days after service of the Interrogatories. The Answers shall be inserted in the spaces provided. If there is insufficient space to answer an Interrogatory, the remainder of the answer shall follow on a supplemental sheet. These shall be deemed to be continuing Interrogatories. If between the time of filing your . . Answers and the time of trial of this matter, you, or anyone acting on your behalf, learn of any further information not contained in your Answers, or if you learn that any information set forth in your Answers is or has become inaccurate or incorrect, you shall promptly file and serve supplemental answers. EXHIBIT "C" DEFINITIONS A. The term "document" as used herein shall mean the original and any copy, marked up copy, revision, amendment, modification, non-identical copy and/or draft, or any written, printed, typed, drawn or other graphic matter of any kind or nature, however, produced or reproduced, whether or not sent or received, including without limitation; memoranda, reports, computations, estimates, communications, financial reports or statements, notes, transcripts, letters, correspondence, intra or inter office communications, envelopes, telegrams, cables, telephone messages, messages, emails, electronic transmissions, summaries or records of telephone conversations, summaries or records of personal conversations or interviews, minutes, notes, notations, tabulations, studies, analyses, reports, evaluations, projection, work papers, summaries, journals, statistical records, calendars, appointment books, diaries, plans, drawings, blue prints, I modules, specifications, data, sketches, maps, boring logs, soil tests, soil charts, soil reports, sketch books, quantity books, material books, time log sheets, purchase orders, invoices, checks, receipts, payroll records, summaries or records of meetings or conferences, minutes or tape recordings of meetings or conferences, summaries or reports of investigations, opinions or reports of consultants, , questionnaires, surveys, charts, graphs, books, notebooks, note charts, articles, magazines, newspapers, booklets, circulares, bulletins, press releases, notices, instructions, manuals, photographs, schedules, network diagrams, bar-charts, line-charts, motion picture film, microfilms, photographs, tapes or other recordings, punch charts, computer programs, magnetic tapes, discs, data cells, drums, printout and other data computations from which information can be obtained, and marginal comments appearing on any documents, and all other writings in the possession, custody or control of Plaintiffs or their agents, officers, employees or attorneys. B. "Defendants" mean Chad Madden and/or Stephanie Madden. C. "Person" or "Persons" shall mean any natural individual or corporation, firm, partnership, proprietorship, association, joint venture, governmental entity or any other business or government organization. D. "Meeting" shall mean any assembly, convocation, encounter or coincidence of two or more persons for any purpose, whether or not planned, arranged or scheduled in advance. E. "Communication" shall mean any utterance made, human speech heard, overheard, or intended to be heard by any person, whether in person, by telephone, by means of sounding recording, or otherwise. F. "Identify" means: (a) When used in reference to a document, describe with sufficient p~icularity to form the basis for a Request for Production under Pa. R.C.P. 4009, including but not limited to the date it was prepared or created, the identity of its author or originator, the type of document (~, letter, telegram, chart, photograph, sound recordings, etc.), the identity of its addressee, its present location and the identity of its present custodian(s). If such document was, but is no longer, in your possession or subject to your control, state what disposition was made of it; (b) wRen used in reference to a natural person or business entity, "identify" means to state his or her or its full name, present or last known home address, present or last known business address, present or last known home telephone number, present or last known position or affiliation. INTERROGATORIES 1. Please describe any and all actions or activities taken by you to establish the business known as Madden Physical Therapy prior to July 24,2003. ANSWER: 2. For each action or activity described in response to Interrogatory # 1, please state the date the action or activity occurred and time of day the action or activity occurred. ANSWER: 3. Please describe any and all actions or activities taken by you to establish the business known aslMadden Physical Therapy during the period July 24,2003 through August 22,2003. ANSWER: 4. For each action or activity described in response to Interrogatory #3, please state the date the action or activity occurred and the time of day the action or activity occurred. ANSWER: I 5. Please identify any and all individuals with whom you discussed the creation of your own physical therapy business prior to August 22, 2003. ANSWER: , . 6. For each individual identified in response to Interrogatory #5, please state the date of the discussion. ANSWER: 7. For each individual identified in response to Interrogatory #5, please describe the substance of the conversation. ANSWER: 8. Please identify any and all health insurers with whom Madden Physical Therapy is a recognized provider of physical therapy services. ANSWER: 9. For each health insurer identified in response to Interrogatory #8, please state the date I I Madden Physical Therapy became a recognized provider of physical therapy services with each health insurer. ANSWER: . . 10. Please identify any and all licensed physicians who have referred patients to your physical therapy business since August 22) 2003. ANSWER: 11. Please identify any and all documents of First Choice Rehabilitation Specialists) Inc. in your custody, possession or control. ANSWER: . . 12. Please identify any and all documents of First Choice Rehabilitation Specialists, Inc. you copied during the period July 24,2003 through August 22,2003. ANSWER: 13. Please identify any and all individuals for whom you provide physical therapy services at any time during the period November 11, 2002 through August 22, 2003 for which you received remuneration which was not paid over to First Choice Rehabilitation Specialists, Inc. ANSWER: . . 14. For any remuneration received from any individual identified in response to Interrogatory # 13, how did you report the income on your federal and state income tax returns. ANSWER: , . 15. During the period November 11,2002 through August 22,2003, did you have any sources of income other than your employment with First Choice Rehabilitation Specialists, Inc. ANSWER: 16. If the answer to Interrogatory # 15 is in the affirmative, please identify each other source of income. ANSWER: 17. Please identify each and every document involved in the creation, registration and/or start up of that limited liability company known as Madden Physical Therapy, LLC. I ANSWER: 18. Please identify all members of Madden Physical Therapy, LLC. ANSWER: 19. Please identify any and all employees of Madden Physical Therapy employed at any time during the period August 22, 2003 through the present. ANSWER: . . 20. Please identify any and all checking and/or savings accounts of Madden Physical Therapy by bank, type of account and date of account opening. ANSWER: Respectfully submitted, , . ~EN, BA~ & SCH tU~;j/t/. David A. Baric, Esquire J.D. 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 da b.dir/litiga tion/firstchoice/madden/madden.int CERTIFICATE OF SERVICE I hereby certify that on November / (p , 2004, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the First Set OfInterrogatories Of Plaintiff Propounded Upon Chad and Stephanie Madden, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Jeffrey B. Rettig, Esquire Hartman, Osborne & Rettig, P.C. 126-128 Walnut Street Hmrisb~, peZ;:7~ d David A. Baric, Esquire , ., FIRST CHOICE REHABIUT A TION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004-3439 CIVIL TERM V. CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW FIRST REQUEST FOR PRODUCTION OF DOCUMENTS OF FIRST CHOICE REHABILITATION SPECIALISTS. INC. PROPOUNDED UPON DEFENDANTS Pursuant to Pa.R.C.P. No. 4009, as amended, the Plaintiff, First Choice Rehabilitation Specialists, Inc. its attorneys, O'Brien, Baric and Scherer, request you to produce copies of the , I following documents, at its expense within thirty (30) days of service of this request. INSTRUCTIONS If you object to the production of any document on the grounds that the attorney-client, attorney work-product or .any other privilege is applicable thereto, you shall with respect to that document: (a) State its date; (b) Identify its author; (c) Identify each person from whom the document was received; (d) Identify each person who received it; (e) Identify each person from whom the document was received; (f) State the present location of document and all copies thereof; EXHIBIT "D" . I I . (g) Identify each person who has ever had possession, custody or control of it or copy thereof; and (h) Provide sufficient information concerning the document and the circumstances thereof to explain the claim of privilege and to permit the adjudication of the propriety of that claim. As referred to herein, "document" includes written, printed, typed, recorded, or graphic matter, however produced or reproduced, including correspondence, telegrams, other written communications, data processing storage units, tapes, contracts, agreements, notes, memoranda, analyses, projections, indices, work papers, studies, reports, surveys, diaries, calendars, films, photographs, diagrams, drawings, minutes of meetings, or any other writing (including copies of any of the foregoing) regardless of whether you, your former or present counsel, agents, employees, officers, insurers, or any other person acting on your behalf, are now in possession, custody or control. DOCUMENTS REQUESTED 1. Any and alJ documents identified in your responses to the First Set of Interrogatories of First Choice Rehabilitation Specialists, Inc. Propounded Upon Defendants. 2. Any and all documents you intend to use at the trial of this matter. 3. All federal and state tax returns you filed for calendar years 2003 and 2004. 4. All federal and state tax returns filed by Madden Physical Therapy, LLC. 5. All documents relating to the purchase of the property known as 49 South Prince Street, Harrisburg, Pennsylvania. 6. Copies of any and all advertisements for the business Madden Physical Therapy displayed at any time during the period August 22, 2003 through the present. 7. Copies of any applications for insurance made by Madden 'physical Therapy. 8. Copies of any profit/loss statements for Madden Physical Therapy. 9. Copies of any balance sheets for Madden Physical Therapy. 10. Copies of any and all documents mailed by Madden Physical Therapy to any licensed physician informing the physician(s) of the services offered by Madden Physical Therapy. 11. Any and all mailing lists developed by Madden Physical Therapy. Respectfully submitted, , 'BRIEN, BARIC & SC"R . 'L{~ David A. Baric, Esquire I.D. 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 da b.dir/litigationlfirstchoice/madden/madden. req . ' CERTIFICATE OF SERVICE I hereby certify that on November / /; , 2004, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the First Request For Production Of Documents Of First Choice Rehabilitation Specialists, Inc. Propounded Upon Defendants, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Jeffrey B. Rettig, Esquire Hartman, Osborne & Rettig, P.C. 126-128 Walnut Street HmriSbmg.pe~ ~ ti David A. Baric, Esquire ,. , . I . r~t'~iv-1 I \~-()q-D4- Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA FIRST CHOICE REHABILITATION SPECIALISTS, INC, v. NO. 04-3439 CIVIL TERM CHAD MADDEN and STEPHANIE MADDEN CIVIL ACTION - LAW Defendants JURY TRIAL DEMANDED OBJECTIONS OF DEFENDANTS, CHAD MADDEN AND STEPHANIE MADDEN, TO PLAINTIFF'S INTERROGATORIES AND REQUEST FOR PRODUCTION OF DOCUMENTS Defendants object to the following Interrogatories for the stated reasons: 10. Defendant objects to this interrogatory to the extent it requests any information for the time period beyond August 22, 2004, that time period being one year from the date Mr. Madden left the employ of the Plaintiff. 20. Defendants object Interrogatory 20 as being overbroad and calling for information which is not relevant to this proceeding and not intended or expected to lead to admissible evidence. Defendants object to the following Request for Production of Documents for the stated reasons: 3. Defendants object to this request as calling for information which is confidential and not seeking information which is relevant or designed or intended to lead to admissible evidence. EXHIBIT "E" 1 . " I "" 5. This request is overbroad. However, Defendants will produce a copy of the sales agreement for the subject property. 6. Defendants object to the extent that it seeks information for a period beyond a one year period from August 22, 2003. 7. Objected to as overbroad and not designed or intended to lead to admissible evidence. 8-9. These requests are objected to as being overbroad as well as requesting information which is irrelevant to this case and not designed or intended to lead to admissible evidence. Respectfully submitted, HARTMAN, OSBORNE & RETTIG, P.C. rt t :JM P iey B. Rettig, Esquir~ preme Ct. LD. #19616 126-128 Walnut Street Harrisburg, PA 17101 (717) 232-3046 Attorneys for Defendants 2 .. . l ... CERTIFICATE OF SERVICE I, Jeffrey B. Rettig, Esquire, hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States mail, first-class postage prepaid, as follows: Date: 12-/F/bl( David A. Baric, Esquire 19 West South Street Carlisle, P A 17013 (Attorney for Plaintiff) Jeffrey B. Rettig, Esquire Supreme Ct. I.D. #19616 126-128 Walnut Street Harrisburg, P A 17101 (717) 232-3046 Attorneys for Defendants It ... I '" CERTIFICATE OF SERVICE I hereby certify that on December ~q ,2004, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Motion For Protective Order, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Jeffrey B. Rettig, Esquire Hartman, Osborne & Rettig, P.C. 126-128 Walnut Street HmriSbmg,p~:; / a David A. Baric, Esquire -C) (i \ iW ~r_., j;"; -.'\ <?"(:' ):-"'c z :< o ~; ~:-:::. .. ,. . ... ......, = C--:::> J:'" o r11 ("") 1" \.D o -n ...... :t:-n nl- Fn ~C( ':-~~l :l.-n ~2o /,- rn o .--\ "'", "'fJ ~ :J:'"' ::lC \.D .. (..) +" FIRST CHOICE REHABIUT A TION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004-3439 CIVIL TERM V. CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW PRAECIPE TO ATTACH SUBSTITUTE VJERIFICATION Please attach the following Substitute Verification to the Reply To New Matter filed in this matter on November 16,2004. Respectfully submitted, O'BRIEN, BARIC & SCHERE b~)! David A. Baric, Esquire J.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 da b.dir/litigation/firstchoice/madden/attachverification. pra VERIFICATION I, Gary W. Karkuff, verify that the statements made in the foregoing Reply To New Matter are true and correct to the best of my knowledge, information and belief. I: II execute this verification as a substituted verification. Ii II I I hereby ratify the verification previously supplied by my attorney, David A. Baric, Esquire and I understand that false statements herein are made subjel~t to the penalties of 18 Pa.C.S. 94904 relating to unsworn falsifications to authorities. Date: izl>..; ~C1 { I ~k~~ President Ii II CERTIFICATE OF SERVICE I hereby certify that on December 22, 2004, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Praecipe To Attach Substitute Verification, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Jeffrey B. Rettig, Esquire Hartman, Osborne & Rettig, P.C. 126-128 Walnut Street Hmrisbmg, pes~ ~ ;J~ David A. Baric, Esquire ~'--,~ -C1[1..: fTt i: ~ ~~.#;. ~~~.':' r_t.., '-- ?f[) )>~ ~ ... ("') ~,; '" = ~ o ..." ("") ", CO o -n --l :I-n :-TI, "TJ rT1 :u9 ...." '...JC) ::"'j~; .:.1_ -H ,--)- ~"'-O ~~5n. ~l ~"'" ~~ ::< -0 :J: N .. w (...) DEe 3 0 2004 ~ -v FIRST CHOICE REHABILITATION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2004-3439 CIVIL TERM V. CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW RULE TO SHOW CAUSE~ AND NOW, this I 'I' day of 1{h.J/ , 200(" upon consideration of the Motion For Protective Order, a rule is issued upon Defendmlts to show cause, if any there be, why the relief requested in the Motion should not be granted, Rule returuable '2- 0 days from service. BY THE COURT, -11~ J, ~,1' ::.:::t J: . .Q. l ~ ' :i ~ '. ~'- .' , ....... '1\ , <:> Go- \ \.,' I C" '1"" ,. ,;"'., _~ \ '0; '.:i '] I !,';,~!"'\ U"q7 j.." I .:Juv h,', :Iu - '.... FIRST CHOICE REHABILITATION SPECIALISTS, INC., Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO, 2004-3439 CIVIL TERM v. CHAD MADDEN and STEPHANIE MADDEN, husband and wife, Defendants CIVIL ACTION-LAW PRAECIPE TO DISCONTINUE TO THE PROTHONOTARY: Kindly mark the above-captioned action as having been settled and discontinued with prejudice. Respectfully submitted, ~7;ir David A. Baric, Esquire I.D.44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff .. ! '... CERTIFICATE OF SERVICE I hereby certify that on January 3 ,2006, I, David A. Baric, Esquire of O'Brien, Baric i & Scherer, did serve a copy of the Praecipe To Discontinue, by first class D.S, mail, postage prepaid, to the party listed below, as follows: Jeffrey B. Rettig, Esquire Hartman, Osborne & Rettig, P.C. 126-128 Walnut Street Harrisburg, Pennsylvania 17101 g~t / If David A. Baric, Esquire II I I Ii II II I ~, c:~_, ::::-.J '::...... o ., .... -r r-t1 :TI ,- -~IT'" -;)CJ -) . ~ r w t-3 o \C" .j ~:_:~.1 :~:) <-<