HomeMy WebLinkAbout04-4656
II .
ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 2004- 41.Sb
CIVIL TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
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 against you. You are warned that if
you fail to do so, the case may proceed without you and a judgment may be entered against you
by the court without further notice for any money claimed in the complaint or for any other claim
or relief requested by the plaintiff. You may lose money or property or other rights important to
you.
YOU SHOULD TAKE THIS PAPER TO YOUR LA WYER 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 ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
Cumberland County Bar Association
32 South Bedford Street
Carlisle, Pennsylvania 17013
(717) 249-3166
II
I'
v.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 2004- J..LI.!)~ CIVIL TERM
ORRSTOWN BANK,
Plaintiff
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
COMPLAINT
NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC
& SCHERER, and files the within Complaint and, in support thereof, sets forth the following:
I. Plaintiff is Orrstown Bank, a Pennsylvania corporation, with its principal place of
business located at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania.
2. Defendant, Joseph D. Kloza, is an adult individual who resides in Cumberland
County, Pennsylvania.
3. Defendant, Wanda M. Crawford Kloza, is an adult individual who resides in
Cumberland County, Pennsylvania.
4. Upon information and belief, Joseph D. Kloza and Wanda M. Crawford Kloza
have been, all relevant times, the owners and operators of a certain business known as British
Network Ltd.
5. British Network Ltd. was in the business of providing travel services such as, but
not limited to, the sale of travel packages to individuals.
II
6. On or about May 26,1999, Joseph D. Kloza and Wanda M. Crawford Kloza
executed a Signature Card Agreement with Orrstown Bank establishing a regular checking
account in the name of British Network Ltd. A true and correct copy of the Signature Card
Agreement for this account is attached hereto as Exhibit "A" and is incorporated.
7. On or about June 28, 1999, Joseph D. Kloza executed an Electronic Point of Sale
Merchant Agreement ("Point of Sale Agreement") with Orrstown Bank for the "merchant"
known as British Network Ltd. A true and correct copy oftl1e Electronic Point of Sale Merchant
Agreement is attached hereto as Exhibit "B" and is incorporated by reference.
8. Pursuant to the Electronic Point of Sale Merchant Agreement, Orrstown Bank
would process Visa @ and MasterCard@ charges from customers of British Network. Further,
Orrstown Bank agreed to provide a credit to British Network equal to tl1e total of the charges
placed by customers of British Network who used these credit cards. These credits were placed
into the British Network Ltd regular checking account referenced above.
9. The Point of Sale Agreement provided for charge backs by customers of British
Network. In particular, any charge backs by customers of British Network were to be handled as
follows:
"5. Adjustments and Returns. ... In the event tl1at goods are returned,
or any services are terminated or cancelled, or any price adjustments on a
Transaction are allowed by Merchant, the Merchant will prepare and transmit
through tl1e electronic terminal a credit (or return) Transaction for tl1e amount of
the adjustment as a deduction from the total amount of sales drafts transmitted
that day. In tl1e event that tl1e amount oftl1e credit (or return) Transactions exceed
the amount oftl1e sales drafts transmitted, Bank shall charge tl1e Merchant's
account at the Bank for the amount by which the credit Transactions exceed the
total amount of the sales drafts transmitted that banking day."
II
I'
10. The Signature Card Agreement provided, in relevant part, as follows:
Liability- Each of you agrees, for yourself (and the person or entity you represent
if you sign as a representative of another) to the terms of this account and the
schedule of charges that may be imposed. You authorize us to deduct these
charges as accrued directly from the account balance. You also agree to pay
additional reasonable charges we may impose for services you request which are
not contemplated by this agreement. Each of you also agrees to be jointly and
severally liable for any account deficit resulting frorn charges or overdrafts,
whether caused by you or another authorized to withdraw from this account, and
the costs we incur to collect the deficit including, to the extent permitted by law,
our reasonable attorney's fees.
II. The Defendants used and employed the benefits of the Point of Sale Merchant
Agreement including, but not limited to, withdrawing funds for credit card transactions.
12. No reserve was established by Defendants for charge backs which may occur
under the Point of Sale Merchant Agreement plan.
13. During the period December 3, 2001 through April 12, 2002, twenty-five (25)
transactions were charged back to Orrstown Bank on Defendants' Point of Sale Merchant
Agreement for a total dollar anlount of$12,488.12.
14. During the Sanle period, six (6) service fees were levied against Orrstown Bank on
Defendants' Point of Sale Merchant Agreement for a total cost of $221.00.
15. Orrstown Bank has incurred costs and expenses of$3,413.95 through the date of
this complaint regarding attempt to recover the anlount due from Defendants pursuant to the
Point of Sale Merchant Agreement and the Signature Card Agreement.
16. The Signature Card Agreement permits the recovery of attorney fees by Orrstown
Bank.
II
I'
I
17. Upon information and belief, Joseph Kloza and Wanda Kloza did remove from
the accounts of British Network Ltd. substantial sums of money for which they had no
entitlement.
18. Joseph Kloza and Wanda Kloza removed substantial sums of money from the
accounts of British Network Ltd. when they knew that removing said sums would render British
Network Ltd. insolvent and otherwise unable to pay its creditors.
19. The acts of Joseph Kloza and Wanda Kloza were such as to permit piercing of the
corporate veil of British Network Ltd.
20. Joseph Kloza and Wanda Kloza used the accounts of British Network Ltd. as
though said accounts were the personal accounts of Joseph Kloza and Wanda Kloza including,
but not limited to, removing sums of money from said accounts to pay personal expenses of
Joseph and/or Wanda Kloza.
COUNT I-BREACH OF CONTRACT
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
21. Plaintiff incorporates by reference paragraphs one through twenty as though set
forth at length.
22. Joseph D. Kloza and Wanda M. Crawford Kloza agreed to pay any deficit
resulting from charges or overdrafts to the regular checking account.
23. Charges and overdrafts in said account total $13,758.84.
24. Demand has been made upon Defendants to pay this amount.
25. Defendants have failed and refused to pay this amount to Orrstown Bank.
26. Defendants have breached the terms of the Signature Card Agreement.
II
II
27. As a direct and proximate result of Defendants' breach of the Signature Card
Agreement, Orrstown Bank has incurred the following damages:
a)
charged back items
$13,537.84
b)
service charges
$ 221.00
c)
expenses incurred in
recovery
$ 3,413.95
TOTAL:
$17,172.79
28. Orrstown Bank has, and will continue, to incur attorney fees in its efforts to
collect the deficit from Defendants. The Signature Card Agreement provides for the recovery of
attorney fees paid by Orrstown Bank in the collection of the deficit.
WHEREFORE, Plaintiff requests judgment in its favor and against Defendants for the
sum of $17,172.79 plus costs, expenses, interest and attorney fees all in an amount not in excess
of the limits requiring compulsory arbitration.
COUNT II-QUANTUM MERUIT
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
29. Plaintiff incorporates by reference paragraphs one through twenty-eight as though
set forth at length.
30. Defendants did have, use and enjoy the benefit of the credits provided by
Orrstown Bank to the Business Checking Account.
31. Defendants failed to provide the services and goods for which payments were
made by customers of British Network Ltd. in credit card transactions which were credited by
Orrstown Bank to the Business Checking Account.
II
I
32. Defendants have failed and refused to refund to Orrstown Bank tl1e amount
necessary to pay the charge backs against the Business Checking Account.
33. Defendants have been unjustly enriched by retaining tl1e funds to which they were
not entitled.
WHEREFORE, Plaintiff requests judgment in its favor and against Defendants for the
sum of $13,758.84 plus interest, costs and expenses.
COUNT III- CONVERSION
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
34. Plaintiff incorporates paragraphs one through thirty-three as tl10ugh set forth at
length.
35. Defendants did convert money of British Networks Ltd. to their own use and
enjoyment when said money was rightfully to be held by British Networks Ltd. to pay for
services and goods promised by British Networks Ltd. to its customers.
36. As a consequence of this conversion of funds by Defendants, Orrstown Bank was
charged back the aforementioned sums when British Networks Ltd. did not have the funds to pay
for the promised goods and services.
37. Defendants actions were intentional and caused the insolvency of British
Networks Ltd.
38. Defendants knew that by stripping British Networks Ltd. of funds, the business
would not have assets sufficient to pay for tl1e services and goods required to be provided to its
customers.
II
WHEREFORE, Plaintiff requests judgment in its favor and against Defendants for the
sum of $17,172.79, costs and expenses and punitive damages.
Respectfully submitted,
~;JdCHE
David A. Baric, Esquire
I.D.# 44853
19 West South Street
Carlisle, PA 17013
(717) 249-6873
Attorney for Plaintiff
dab.dir/orrstowobank!kloza/2004complaint. pld
II .
VERIFICATION
I verifY that the statements made in the foregoing Complaint 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 statements provided by the Plaintiff and other
persons, 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 understand that false statements herein are made
subject to the penalties of 18 Pa. C.S. 9 4904, relating to unsworn falsification to authorities.
David A. Baric, Esquire
Dated: q II ~I di
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s. WEaver
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112 W. Uiah Street
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JOSEPH ICLOZA
WAlIDA CRAWFORD ICLOZA
250 BIG SPRING ROAD
~"ElIVILLE. PA 17241
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av....1 _oIIclldluncl...... iI_......P"KhCe ill to !hit c-...,. W. _,... righI...........,
"'"'d._II III' 1._1er _.1"''''' M1eot1C11ld by.., -'1Iod IIOIIPIC~ .,....... wNcII.......
-' "" th.M..,-......IIlriIhdl'_.~. OI'wI'Mc"'.eMChl Wtt-.-.,.........t_...
...... ._oMomIint......I._"..t...oltl.._Ml__lIf...."....,_IuIIIy'-.....dDw
Ill" ICe_I. w._ _!hit dll. . 1f_lIICliOft II e....l..t by III I"--.d.. "" dlrJOU __ e..
apply 1...'_y......"iOft..Oninl-'.bI......ace_.OI................dIclolil..__Ihit........
..........1 III1I_d.....'wnlteotllOlic.DI'- ...,.......... fWlrIIl.,...~... '-I _.......
ptlotlO....I""".ptfotll!hit..pioMioftol..,noIIC..,..-.,m..,bI~'lCln....,M""'*'='IO~
ISH r-1IOI1cI" """""lfWI-'Y",,",,,*-ILWII""YcIIItVI afIIMIl'O'oI' _ .~.._...
=:'~i":.~c::-A=u:;c:.~...=~i;:=~:..-::..,"::.-n:'::='-lIlII
Kcounl~Oft""'-oI-"",""\llnlllCIIly~II~~Oft...t.w......
1IO"-"IIor\$..totlll--"'-fW"ecl_\hIt-..._~.......lloftI........
I...., __lOwIIOnl_,.., till accDllfllIund...........d....1 Ac.MIftt......... ~ _.....-,........
Ac._. WIt" ..............""'" ""'" "-1:' 1ft c.-ottI._-..dbytwl.___...._
JOU'"'1ftcI1hII upon...ItMIII...IbIIIrC:....""aceOllrlll-..bjlc:l"...,~plIdgItoMlCll......
c....""'Idl_ bIIoIIg 1I1h1 MrIIvor(tl-IlIwO._ 01 you ............,..... _\hI---.IIt...___
..jaint"".....wIIII~....,IIOI..lIN/ItI..-.""""Ae-.nt....~~1'-'a
In c-.n1...owNllby_._---.W__youlnllndl"*'l4yby......1hie--'l1ll
:::~':"lhIol4~~;::==ar:lIto:~1II..':t.......~':
.....1"'... _......, for wiI..........Il~ ,""l ",",-I.. two fit __..,..... co..........
ICeounl. '/'IN _till accaunl Jalntlrwilll ............lSInIIIclItIII....... ........11I ..........,11:111..
pa<SOft.e'"I...!tllacCllllftl....lIldl2l""bInIllclIry.."""........_..._~_.......
and......... ...""..... .,........CIN1In9Ih1-....... MdI~" _ ...-..c.........
1Iwn.. oMIl'Iaut """ ....,...,..,.... "",-,,~.....,wlIhl:hw .....0II'l01... accouM..........
The '*-"_ CfNtiIlIINI KCOllftl rrPI_lN ""'Ita: IllcIIInge bInIfIdOtIH.tIIc1\1Jlg1__
ly"U. ...., 131 whl'lclr.. .11 or plrt oIl... d.,,1It .1 Iftr 11m.. e.""....'.. ...rt..,..hlp. 'fill "".,
0'11'...1.1111_1 A.._ta . WI wit utvalIr ~ . MD.... lllIhorbatlan r...... .......... .......-
PI""itlItcl...., IClO'l4IIIoMNQIlftd far """"*-" ham ll'IJacCOl.Wlllft ""............... w4itr -"..,
~.ellfJlllrllllla.orOllllrOl1..uaaan.Wa..IlotIar-"~-*'IIo..'-.....iI
~ ....1ftcI1tcI...1""""""IClIIIMltllogby..lJO"I"*ltbllo:lr...MdIO'11""1I1t1ol1..
STOP.,..,MINTS. A -'fllIopeymenlOOlMr ""'" \II gMn'" 1hI_ fIlQ\IIIItcI by_.... -'.. NOIlwICl
In .....top... ._bIIODPOrt\lfti1yIOICIOlI.bIIOI'I_....~C\ll-oll..... Our...".....
~;;:.:"::.:.=..~=::n ~ J.::::~:::;:::::~':i~~~~ ~~
mull ~1wI'r"""Ufyll'll-.bOt.dlll ""'-...I 01 till "_. aIId..p.ayH. w.........~
NqIlISI by 1tIe,...._............, till DMIIcIlllr 11_. tlftd. by Il'IJ ol.... ~....... thoII9".........
pa<SOft cIIcI not .1hI1lIm.If IIICII athIr...- "- '" 1qUII. .....1. rIfN: to MItIdrIW ham thiI-.ft
I"", \hi __...........,I...._......1lan.A....._..... ...~'""'" 1'MJ.........,by
l...fl'IOW".......InIIIaIIClIIM~payrMftl.
e:.=~~~.:..~':=..~.,."'fWc:=::.='::=~ ...=...~iftc::;:
by any~ -u.adpermlltldllrllw. WII""Y.....clfHalhill_" ...,...._................you
l"llllfld..atlhl accOUftl~. Pl"--"YfWb'f'I'IIIiLNoIc.rr-u......,_...JOUllroolicIlO..oI.,.....
STATI"'NTS . You ""'" ....... yaw ...1""""... KCllIIftI ""'" ___DIll (IfOOfIfIItIeII.~ II rav__
lor..hOftIbIylhollld......d1.....,..q...,.~...~...aIl..........JO\ImuIC........,MlIIr..
aI'''''........... lacla.1I rou lalIIl.. IiIIW 111NM dill'". JOU........ tel M1........,. ....lDIIwlIh.......
~~~:.~~Il=-=-:.l::-~~Oft~=:: ::..=~ard~c::=~ ':1;.==
au... 11_. fotgItcI... all..... by 1hI_~. You ....lNI 1hI""'" yau...... II ...-....
11.._I""'''"''1aUl.....,...crfllllhlcifcvml1_...lMlhII_''...............lrlllO)'~
..c"".IOt..oI30"',.Irom.....n..I1a1""""..llrIImacI.~toJOU. ...
Yau1urllw .....""1. rau'allo-,,,,"""""""11d ......1......1Il...tianl.torp\II...,~
:;::.:"'..r=:,~.-::.~I~~;:::::..u.:..~~l:'~.=::=
""9Ird,.whI...._..lIf'ClncIordInrf_.n..lIInl1l1ionlnlhl.~""'..inllddltionlllha1ccri.1lNcl1ln
l...fi~I'*"grIlIIIoItnII.ec1iln.
DIAeCT OI!P'OlUTS. II. In e-..c1llln _. dIrIc:I ~Iil pi....... d_1iI. any -...t ",IN. KCOUflI; IfWI'IdI
'''ooM "'....lMIn """""" 10 ",,'..s..r Q.av...........Iat...y....son. you ao./I1'ooOInwlo cMducl ""'..-..
alou.hbi~lyla""f.cr....GoY."'''....I'''''''ItlI.acc_lorl.........yal....ac:eounlyou''...'/O'IIl'I....
..ijl>Clulllf\lll'naIlc.lnclll...yllm....C'lll..Ilf'Oh'bIllClbyl....W.m.y..SOuManyol""lIfIIl'III!IIdy..
_oYl."".........-.tol_llabilily.
TEIoI"OIl.Ul'r ACCOUNT AOAEEME,,". 1111\;1 oPIlon II clllckld 000 "" ac:c_ 1'IOC0I"d1, 11I;.1I.1emPO""J'
ICC.....I '9-..t. Eac" JII"IO'I ....... I'IIM 1M IIQ"''''''' card l"c~1 IS indle""" III "" c........... fill ...
acco....I""'...'hlmlJ'l'....ecIDu.......OIItn11Kc_I.~_._mayll_IImI..lNo~...~.
p......'b'II....,"'.....alllll..ccO....lllyoul.ill.camply..II"""_ul......"I._.....""'"............
...tonablllloNl.
.IiT.OFF. You .1Cl'I....1""........, fwI!houI po\llf' nolle. Incl '*""" pemo;n.. by"ow) III oil............
thi. ace-' ".Ind '"Y due and peyabll dIt>I owICllaw_...in "" "",".by any oIJ1llt...........1IgIIt
aIOlri1fodl'......t1I""..I...._IIICII~.......'"lIIy..IIghl.Ill~.""dItlllll..........tIllCl.
....y dill ""'PI)'lIblI dabt.~...IaI.. -...I .....t\Ic,,_ _ entilIId Io-.....d ...,..-.......
I........."" nol."...IimI_ M1011.lrIducIIn9anyb,,-.ltlIdIII dallllor......h _........,MCIIINI.
""""_....1.. TNlIIgIII...IIt.all....nol..,.."lOlhiI.-lI:lal".. _~,....,."....~
. 0I....1..-dl1....cr..1_ eceaunt..lbtlhldlblilco.l1lClby. _.___tr--.......
:~= ,;,U;St!~I:- ""~~at""""'.=::= =,.::~::. r::-::::::::::.rw:.",==
You.9'" 10 haId u. '*'"'-.. '-11'1 claim "'.......wI!.. _ .._IM" _ rIfN: 01 HI'"
'ACIIMIt.. SlONATVIlIlS. You au1IIcItIu...." ..".1_.10 cto.,...JO\I.....~.... *'11................
I... I'" Plp'...I" _y. 1".1 ... ...._ 011... ~""'... at b't............. by......1 ...._.!hI I.......
.....11nl1l.....,""-bNfIaIlbld IlllanOu1hly"........IhI,ac..... ....-IPIC-...IN't',......
av-.fltlha1_IIlIcl..~...,"""'........,COftI..."'" -*'d ..........al....-...................
AUTHOIIllZID SIQNEIl tl.....ldllll Ace_II Only! . An .""........., .11I..... II .om_ yOU ....... 10
cond\ICI1r__llalManJllWboI"....bu1dot.noI............,~...rig/'ll.Il6tIl"..................
A_.bI.T.....lbINlIC...,.
CI'"$.1"2........,.,.'_~.SlClot.od.I,INI"IIOI).39T.2)ol11 F_Iolf'SC.PA IZIV"O
~h/21
r
....
.;..
ELECfItONIC POINT Of. SALE
MEItCllANT AGltEEM..Em
;
TJUS ACR.E.E.'l(.o;C bd.....cc:s .............g!-':F:~~~':m..nil.nk...............iw...ijj;~..;;;;iM.,c:;;.... ....... ..........................................
(hc:ftirutu:r IdutoJ l.o &J -o.llk-) LCd ....................~rJ.~.;.~.~..~.c;..~~.9,r;~.,..J:.:\J?...........................................................................
........ ..:......................................... (hucinJtcr ftCc:n~ to u "MCICW,IIl;U;U ~;th the t.clW.I wi COodi~oCl.l ol Muclwal'l ~tKip'tioa ill Uu\',
'Lt)CV,"' Cald PIU'~ ~).wtuCud' C..nl PIO~UIl.' , ....0 MAC' r'OI'1LIft.
Ullltu lhcc.olll.c1t otbt""'~ leqlWd.WW btuiollbc Vi.J.I, O&uk or p,taUu cJcsi&ll, MulllCl.IIJ or ol.lKllAlUb".a.kc.uJJ ~btt.bct wuaI blU&Ak orOlllU
lut.Mriud W~ lle buw...tlu ooUc:ctivt.ly rc1errcd to IJ a -D.&.l1k Cud" ur "Bulk CuW-. Cuds buMldie 1010 r..lAC' IJJl!Ior ).lONE\' ACCESS
CARD' wbethu wuoJ b, Duk or olhu .ulborilAl u.aucn lJe ,tIenw to LJ MAC Cazth.
J. II0llor",,: Cuds. Muc.\.Int'lrea loaell Of!w.c ,0011I Iud seniccs 10 the boll.!tll oC.1I nlid uuelpi.cd i.ou (lIOp:.rI,tA1d"N D."i Ca.cdll4lJ MAC
Cuw and 10 .cupl n.ni Cl.rds alld MAC Cards and rcc4ve p.r.ymwt lbutlor !lom OInk La aCCOll1&ucc wilh du: wuu ut Ibis ^llClewelll lhatin
i",Ji.,id""l1, 0.' OClllocu.,c1,,,,11cIJ a "Trt~oa-). Muc.!w\' a&lces to p,uwilleutllllUptall1aAk CAtl! aad MAC Catd t.lIIWCIW LlkI ulbu l",aNoUvu.1
III.lc,i,llnd lilet.lule provided byl1a.4lr.'1 tl.ic Mctcht.al'. pLtcc OCblUiocu. MetcW.u1 II111uscScnic.c uwu. Uuk c..,..s 11d"1I DI...\.1.nd ~L\CClld
d:si,,, .u~ ./.,JcIIIIIU i" iu owa .,J.,CtIUcfDCIIU Iud ptOGlotioG&1 IWuri.alllul.ljecl W D4ult', 'PPIU",,J u(,ucll use '11\1 UIIOU ,ud, cuueJilillllJ LJ Ilauk
llI'y.oqllllt.
1. Ua.rr.~ Cud amJ MAC c.idTritUlcUolI,s. I!acb Ttuuaclioll JluU be Ic.Occ.tW 00 salcsw..cuoc u:dil (oclUS ,upplic.J Llr IllplllYCU by UUlk wdsll.lll
tOar.aia tbc Cullowin& uwotrDlliOG: . " .
(I> Nlme of MtlchaAll.IIll Mctth&Dt number e)csica.aLc:d by &ak;
(b) The D.allk Cull Of MAC Cud QU~bc.r. validatiOI1 daLe t.all upu.UOQ da1.ll: oC the DlAIr. Cull Of MAC Cutl. it Que It1pc.1lS tl.itlCIJu'
(c) ^ DricC dc:sc:riptioo ot\bc CoOOl &.ad servic.cs LaYolvc:d La the T,ltUICtio~ " . . :.. .
Cd) The scDilla: ptic.c.loCrf'K,r willi applicable lIICS or othcr dwJcs, &.ad Lbe loti.! LrDOll.lll oC the T,aw.actioa,: and
(e) Silutult ot wdbotdct or .u!l;loNcd: wcr, elaLe or t.b~ Tr~~Q &.ad die .Tc~lI.pprov~ DUdJbcI Cor Lbe TtWld.ioa.
M:;t~i1: l.t;;w IIJ ":C:h" ooiu C1lSILlWULa e.ac:b 'rcatWCtion & lnIe~coGlptclcdtCpyoC. salc:sw&ttorl.7cdit COIIII. Mt.ldu.uill'CCStlQl trJtluuwit
a ,..10: dUCllo 1I.nk unlilsuc:b tiNe II Metc.b.wl b.a.J performed ilJoblil'tl'OQS 10 lhewtlbo!Jct ta eoaacaioll witl.i ,ueb T,IIU1CliolL Merclu.Gt willllUl
utcnd Clwit COf.(,lrdcCu Ihc limcofp.l)'met:llo( 141 plJ'luflbe IOtalo.sh ~U1 uyTu411dioaaucJ wW QOI bouot .1J,Lllk Cud UI MACCazd c.t'-'CI" iu
I i,.IW.r:lion ""here 1101.1!wh price utJue Ind pa)'.ble. Mudl&llol wUI nOl_c .oy sllcciaJcbu,C to 0' "Iuclan)' IIJCCW 'C'uwcnl urM'\:lIIill Cnml
'"1 cardhol,Jer ill connectiOIl wilb lDITllnSlctioa. Merchalll sbaJlllOllunJmilallll U..olr. willllOllCCCIII Cur l'lYUlcullllY sale d,&tI Cur. Tllns.Ic1iun
whiclr ""u nl,lt o,itilU;lcd u. ,,:suJl aC. di.ect Trt.A$&Ctloa belwcell tl.ie Muc:hLrlt &ad. wdbolUu'.
, . .. .
J. ^"Ulluu..llon... Mcrc.ba.al wiD submil c.ada tI.ruaWOD ror ',pcciIie ,uWoliutioo trOlD D.a.aJr.', Aulhorw.tiou Cc.r1W' via. .u d~unic ",mind
'Pflloved by thc Uank, or U olbtrwisc dilecltd br. Dulk Worccoulpldioo olT,W&dloa. 1D Ibc cvcul Ihsl Lbo IclwiaaJ u iuo~ublc'l the lime or UI
.uUIO,iution rcqllcsl MAC Care) TlllWCtiOlU WIU be dcdincrJ by Mcrcb&:tl; bow,vu Uaak CIll.! Tn.twaWlu lllly bc .ulbutilll.! br usial tbc 1I&0\'s
did.up (aality .nl! enle,cd inlO Ibe Ic'mioall.tcr thal day ptovidccJ lbt 'PP.OYlJ lIwubcr Ls l1so co.letcd. [( such .hul1I1.II: lulhonuliou is eraDled.
MCIli:b.nt will ,"I" sail.! IpptOYlJ Qumber 00 tbe $&I~ duCI. .
.c. F.ltCltonIc Trl.nSGI,UtaJ oCOralta and r.)'lQCIIu,;
<I) EttClIonJe TnNuUltaI or SaJc:a DraCl.&. Merchut sb.a1l.ublDit u.cb Il&.ak eatd ud MAC CuI! 1rarw.aioo Cof .utboriutioo via dClCtlOaK:
lcnnin.a1.u provider,llo Pu.,t.pla '.'The: Out ah&U aulbotfu or dccI1oe,uda T,lASIdloa.s uuu.m111Cl.l rOf aulhottu.'loa LOd,haII capture IJM1
Ilfoccs.s Cur Jhe Muchlrll tl.io tnConn.t.Ioa ,wliOI to tbo Traau.d.ioa. WonnaliolllO be ItlNlDiucc! by \bo Mudw:ll Wou,h ~ It:IUlwl:1ha1l
indulk. bUI shall 1101 be limiled lo,lbe d.a.1e otUle lIL1U1(:tiodo Ihe lruouol ohbc,tll4SIl:~1Io the IJ.&Ak. Cud Guwbct ur MAC Ca,d oualbu oliK
e.udboldct.llre Bt.:lk .ult.~'Lu.lica .pptavJJ cooJc :w::abct. dtbM;:c!u.al'llWCC:~ :.ddrcu(d:7JCIS"...:.c W)(.JC 1.:. u~UtW.:/lWt
pl.te): Uank .nd McrwrIl 011)' (.Oln $ime to UDIO lDutuaJly 'lree uplMl addiliotaJ into,m.atioa 10 bc:subaliUcd. Merdl1lllll1lCCl io htducJc uy
.ddilional irl(ormauon a<<.c:ssa.ry (Ot D.ok kJcomplywitb aJllelu requireme.tluCorbWiacwlJlwldcn. TbcMetd~llshulbc: 'ClI'IHliiblctuirrilillc
.111.1 lecolM.;lcon' Of 1II0te$umDIt,yTIIt\JI,ctions COt each Mudtaol Tumillal e.acb day. AJol3 P .M.c.ach bt.ukiOlclay.llreUa.lllt will ptOvkletbc
Merchant ..ilb . credil cqllll to Ihe ,ccow1cd Swnmaty 1rlllSlCtioQ kllll of aU Mucha.o.l" 1alnW&ls since lbe pC"eviuus CcWl IlldudillC 'U1
.djlUlmelll, if neccs.s.al')'. IttlacMcrc!l'nl WlJ to initia1c..adrClC04CiIe. SlWWwyTrllnllaioo(0'IU)'w1.tbc:&UkwillDOllllDl,Qaliloondula)',
(b) P;l1mellIJ alld Ftc:SFof DUlk CudTfMSIicUulUo FOfew. Da:nkCanlsalcsw.l\aa:ept.cd .ud{lurcM.SCt1. nallk wiU l~lH,....=r.!u~:r!:"JIII
equ.allu (ill.: Ivai cash pr:cc oC,uch urdt leu we pc",:cnUlC chuled b111t, IJ.aak tor its UJY~ l" MeICblDl Discount lute; IJ abuwa ()II We
Schedule. to Ihi!; AlrccmenL r'Ylllell1,blU bcmadc to M"ch'Ql by ac.ditill& IhoMtldl.lUt',w:ouII1.t ILd 11a.uk. The o"ok sb.aU bIYethe,i,bl on
Ihill)' ()O) clays Plior nolite 10 eblrec 'lIIoDdlly service lte CorTcthlinal nuintclllntesuvic:cs (Of Ucll MCltbllllkx:.alioo'I ",bicbTtllW..wI'" In.i)'
lie collduCled. MClcbanll'lCCl thlt suclr fee 01')' be dc:dudw C,uu. Mefl:haul" Iccount'lllIe Uaok wlUclt is acrJilO1 b)' U.uk with l1alUlWU
heleunde.t. All .djlUlmcou (Of sales dr.llS such LS cbu&ebacu Of oUretwisc proyided rur i4 Ilill ^,tUWC"'1 ,tuJJ Wo be ~",tClJ (11.111.1
Merchanl's 'cXOunl. Ytilhout p,ior notirlCltion. .
l-=) P.aymlnb and Ftc.J tor MAC C...d Tff"lIUcllons. Fotcac;h MAC Cud salc:s dllnlO::Cptcd And (lloceucd, u..llk wi.U l..yMu\:L.UIIISl'U1uunl
cq,v.allO the: toP.t.l cuh p,iecofsuch l.!f.hldllhe pcrctntale ch"'led 1.I11hc&nkCotiuauvicc:sl-Mc.rdlwl MAC FClO"') UJIrOWll 00 Lbc:~h(lJule 10
Ihts ^UccmclIL P.yment ,llIill be nl.l.!e (0 Metc.ha.nl b)' ClcditillllllC Meldunt's IQCOUlI!.1 the U.anlr..
(J) It(lclllrUlIlI[ OrlEtn.al S.alc.t Dralb ami eopk$.. Mcrchaol I&rees tblt it sl\.llllewo the. ori,iaal wc:S dllCt or Clct.lil CU'III or .Ic,iblc IlI~lUmUl
copy Ihcrcocror . pc,icd olseyen (7) )'tln. Ilo'tNever. Meral&nl'lrccs lore.llin. IIleori,ia.aJ S,llcsdr.tc ofClcdil CWIlI Cur 'IOC,iOl.l ulhUtlClJ lhan Ull'
hu"d,w tillllY (IaO)gYI. At Ibe D.nk's tcrlucst. Mucb.aoubAlI ullilllrcotilioall'U.ceultdsalcs wlnor credil Co,ullo UlQt. if JudI u,i,iaal baa
bun ,euinw, or iC 110 Ioa&u a.,.ilable., COp1. Tb~ mailinl ~I&llllke pI.te wilhiu On (5) bwiow \Jays o( .c:ceiyl ot th, Itql.lClI bl Me,,:llInt. IC
. MClellant raill to providc IheulcJ drdl or credit COlin or. copy oCsucb wilbio rivcbuslnC$Jc1I)'l,ot i( IIClSlIC$wallo. o:cxJ.it rorul wuUKd W Iccvcd
TI1IISlclio". D'nlt sh.1l hve full re.c.ouNoC 10 Merctu.nl Cor .1.1, pol lion of Ure c1Yr,c which is ullcoUcc:lible Ot wllil:h i.s dvc atlll owin,. eus11lu:'tr.
I:ullller,' s.ales d'lrtOtaedil (OUll which docs nol coouin Ilre rnCOCllllOOI\ Il:qUiWJUlldu rllll,.phs 2(1.1) wd 2(e)..u rrovidaJ. shill ~ ~ lubjCf;.1
10 rlllllC(LIU/SC iC IlIe tlldlloldcr COntilluClIO dispute Ihc validily oC lhe chllec .flet .UIIIlr. 1111 IlICKPIW lhe MClehllll's ,.,illencc oC .,.lulll)' ul Illc
chlr,e 10 tl"wl1hu!UCl.
5, Ad}lUtllltllU Ind R~lurtU.: ~ MCtch.nt will ll\.ltnwn a (aj.t Uclwl&C &.ad rctura poliey 11I1.1 ullke .,1j,ullllrntt will, '~11C'l:1 ~<"I ~~."t: I.::,J t:f~CC
"';II;II(1el 'I'plupl ial" in \be event \lilt lOO(.1S .r, ,e-turoed, or IUY servio:s II' l'fUliUl~ or CI.lIc.elJcd, Of "IIY plicc adjustlllClIlI un' TlllIIIl."tlun lit
aU?wcd by Merch.nt, ,lIle Melchtlll will ptepate Inl.! tnaJalil thtOulb tile e.lcclluo!e tcrm~L1. acdit (of:(etlUu) Tla;,w.~on.rut we 11I\1,n,lQI 0[. tlre
.dJu.slllle"1 u. tJWIICUOt:l (rom'the IOu..! IInount oC$11r:s w&1"lIllln.S1uill.cd thatll.,)'. IlIlbe ,.,calthal tile 'IU(,IUllt o(lI,c ar:clil (ot IClllfll)T/lllU"~lJ11J
uued thc 'mOunl ur Ihe....lu drart' 1'.'llmillw DaJlk sh&ll cb.,,1l rl"l MMeI""I'( 't'<<'\If:~ It lo"~ lJ.\u~ !-:: t!l: :;::;'''II111: t.j' w~::I;:1o; c,:J::Tulw,;:IIo.ll:.ll
uc.ced lhc 10Ul lmount orlhe. salC$ duCu: 1lII\1Iniuo:l' 11/.&1 banlti", da)'. 1l1e sales unll. Cur ao(TUlu.at.1iun for .....bicl& 111.1 lefuml ur fCllIlIl wi\\ be li'fel\
IlIwll.leCOl1lpicuowly n\lrked LJ' ..tinals.alc" and -110 felurus"oo tJlecw10lncr'l cop)' 'llhc uUlcoll..bcrrllw.,tioil, MCIGl'lUI11'W 11.1 iii'" IH' wl.l
,ctUIIW 0" DIlIIr. Ca,d Of MAC Cald TrllUletiolU .ndl.o h1.ndle .11 "edil .lljW:UtICllU &.S providCl.1 a!x)ve.
6. ClI$lunlCf CUlllllllulU. Muelllnl,cl"owlwlt.S Ihll unl.let 'pplicable l.w Ot ICluJ.uon, Mcrchant .ud U.Illk m.ylJc sutlj<<:t W olillU JIll! dcCcll,Sd
IIUi"l OUI oClllyTunsatlion. nle lnlounl otli.bililY io connccuod ""ilb Inysucb clailllordcCcnsema1 ri"ed b"Pl11ic.abl, tawut .rxuluiolls &.Sur,
J&<<il'ic fIOinl in limc. ^ctOnJin,ly. Mtlchanl'lrtcS 10 Inlintain ill wdlin, with 1C:S~110 ucb claim or dcfclUC I1SClledlJ,alllll\ ClIll\lull1cror M~~
Clrdhul..!ct in.,ol.,in&. T,lIwctiun Cor""hicll Metall"I receivcJ nouC(,(i) tJlewJliulrk,'1 namc.(ii) lilt !Jallk OIl.! nUllllletUt MAC Cud.nllllllJc:'.(III)
thdale anJ lilllC Ihe c.udhoklcr usc,ted the "'a.illl or Ile[cnsc.liv) thenllut'OCllltd.ilDordcrclI,JC ,"01 (v) tJu:11.1ion which Mtlc:.hlnlIWIr.III '1\ .IICllllll
10 resolve die diapUlt. Mcttkant sh.lI CUTni.s1a nank wil.b sucb inCotul.lion upon tequal. Merchaol.,rcc.s lu inl.!elllniCy Uln\ Crullllmll,.llUllIl)'
lilbilil1 (illdudinlall lelu fees Inl! COlLI) w!:iicb D.ank. m.y ioeuf as 1 ,esult oCMe.rdunl" (ulute 10 C1Julply will, "'is pll.lvuil.lrl..
" rr'/ttthll1l Surcha/le. MClelllnllcrees nOllo illlpwc' s~reh~t,~ ort I C&luboldet wllo dc..cll towe. Ualllt Cud or M^CCaIl.1 in lieu ofJll1m~IlU b1
c.uh.checkOfsimilurDwu.
S. Ol.ltlt Dae.., The IGClptanu bl D..anlr: oC &n1 elc..cuollie tlllUlldual uC a salc:s durl rut depwillLl Merchanl's .c.c.uunt sh.llb<: wjtllUU,l ncuuno: 10
Merd\alll in ,"y c..ut ~pt u otbcfW40 jndic:",t.cd ia lhU A&roe.mcot Of u Collclwa:
(I) No lpedlic p,lor .utboc4alion oC the T,I.lLl.IClioo wu ol;luiocJ 110m Ibc AutJionulioo CclllU. or lbc IPP'ova.l. QUlubc, JiveD 10 imlic.al~ Ili~
,utboftulio" docs IlOlIPPCU io the dccllonie ltl.Almilt1J which b CDltall10cd bylbe llI4'k.
(bJ The TIIMlclion it bued 0" a prOoluthorlutiOD (orm and lhe o..nk CI.,d on wbiclt the prOo.utlloritatioa wu bucd Iw been CllIedlco! and Mcrch'lIt
was 'D 1I01il'ic.d. P,NUlhtllwtiof\J nllY nol be r.acd with \be MAC Ca,llt.
""" r/u
E..XIiIBI7 "8"
,.
~ l'l I he 1I.,.n\ CI'~ 1,11 MAC CII\.1 ';";111 fUe: IU tllc '''UlIl.U::tiulIl.u been unccllw aLII!: priur lu, or It the time o(,llie TUIts.atlioll, Merch.nt h,111t(UwJJ
/'" . Uf ICW"c:.s DOC." 01 such Co1nc.clbti(ln t1'fO""lt the (1<<ltQ/lie ICfminal, in wnlint 01 olllu....u.e.. '
(1.1) The Iltn\: C.ld hu up.,ciJ pth:lf 10 tile \Jlle oCtile Tn"uc::liolt at lIu: wtt OrTun1oIction \IOU prior 10 ....liiJ.tion dlle, il'1I1. lncJk.utd on the 1M...
CIf,Jo.MACUII.I. .
(r) "IC ules IInte docs nol COtlt.1in llle ''In.hlle II..., .ppun in the AlltJ,~duJ Sit'l4tUU panel of the Uank Carlt
CO :rll~ ulta ~utl (at I Dant Cud TUlu,actio" iJ UNlined b,lhc canlhol.Jer 01 the: d<<tronic 1111\11\IilUllloc.s IIOC COnl.l;lllhc JtqlliualUitormlltor
1I1\,haIW In raulllrh 4 (I) hCfCOr. I
(I' TIle eleCllonic: ItalUminal rot I MAC Cull TranUClion lIoc.a nol incllld~ the rcnonalldcntiriulion Number (rlN) o/lhe MAC Call1holdcI "_I
I'IS illcnlir.u ,nd \'tlitin lur:h MAC: C".Jlrlll.older.t,r 111: MAC CauJ ~:uJ,,1:1 is lo:u;I"W "1 11n: urtlhohJu. or Ihe dCCllonic IU~nltW..iocsfto,t
rOtt~;n IIIr required i"loltl"lioll il'lllialcd in "lulrlplt 4 (I) here.Qt..
(h) The u1csll'afllerrcscIIU I TrtnJ.tClion on ..bielt D.ant. h&.llc.cd\'w a complaill.l r.om or on behalC 01. c.arllltolurr sUlinll""'l thcre" all unraol"CI
d\splIle b.::1....ecn Merc1unt alltllhe e,ardholder. . .
(i) The ulcs tI'lrllacu Ihe inrormalio" required b, rU'I'lph 2 herwror Ihc e.mlllold" makes a .....riucn co1i1pflinllo Dank Ihat \he c.&tdhotdu.&J e.o
m.hOt,\llhcrftutheT,lflUClion. .
(j) nil .nl Klona or covnletd.irru or anT kind Ihlll utll in rnor o( anl c:ardllol"'cr a,.iNI Melchanllhal mil be uw:nw ind'CclUC oC In action"
enfolce rotYlnent Illinst I~h c.atdhQl..,u in .. Transat;tion.
(k) Thc ules ..,un rcrrCSoClll1 alrtflUClion INI wu made at orbt l Metc!lUI olhct than lhc Merchanl nlmcdin lhis'alrecmtnl.
If ."Y t)( the forelolnl c.ondilioru occur. Olnle Ihal1 nol be oblilaled 10 Iccepll saki drdl Or ilS electlonic.,lral'llmiu..\ ror "'e("Olil or fl'lmcnl U. 1.11-
Iou rtevioll.\11 been U:CCflle"'. MCIChlnll,rees tb.t Dank n1a)' chllle b.ck IIle anlounl ohuch sale by an .djustmenllo Inr crc.cJit due MCIl:.hanl Of.
cIIUIClOMctch.nt"l.c.counltlUank.
9. UC'Covcry orurds. Me(ch.nt will use its lIesl errolU 10 rQ50nlbly Ind (lUct.abl, recoverlnd rcuin Iny Dank Ct,dOl MACc..nJ ror"he Much.n
rccci"u nOli(ic.alion of c.anccUIlion. resuiClion.lhe(1 or counleneilinl. Such notice may be ciyen (i) dCClloniaUllhloUlh Ihelell"in II (ij) ... il\l.ttIKl.Cl
by UAl\~'laulhoriulion. ccnler branl meaN. or (iii) brlillinl on any c.anc:cllcd catll list. restricted card lisl 01 Wlmine b\Jllelin. FunltCf.lbe Muchan
shall also tlke IUJOnaltle slcJ1l10 rtGO\'cr. Cltd which it hu IUJOnaltle ItOUnds 10 bcli,yc b colJnlelreit, rravdulent or slolen.
10. 1J1I1illlioll 011 Aulllorlud Uu 01 Cut!. Metch:llllllrc.cs nol to honor 0l'CCCr1lhe Dink Cart! Or MAC CaIlJ in paynll;nt ror an)' lcaal suviccs 0
Clpt:nlCllrisine oul of Or lellltdlO (i) the IIc~ens.c: o( any Clime oilier tllan Ilu.triC violalion: (ii) Iny domestic relalions mailer 'Nhetelutb suvia:s 0
Clpc:nw lIe rllfllilhccJ 10 I rctSOn whose nlme is not enlboued on lhe Oank Carll Or MAC Card or (iii) 'nl bank,uplcl. insolvenc:::y. eomptomisc
WllIl'ClIilion or odlC:r l'foeuUinllltcclill& c'udholdcr',s awiloll.
II. Merchlnl'. Compli'f\('t wllh Mtuell..neold Uequlrtmenll. Merchanl W't11:
(.) Use fucll rOflns and equipment, inchKlinl but nOllimiled to electronic ~rminats, as Oank may provide Of 'flPlOve.
(b) Observe ,nd compl)' ...,ilh .pplicable opculina inslNetiOns Ind rellllatioN promu1lltcd by Dank OJ' Olbuwi:se Ipplic.able to Metchllll.
(.;) !'Ic.:er,~.1I rec.."dI ;.":!1.I;r.ir.& !'J~!~ Ilr:.n.: IlId :::rCl.!il !om\.S;.s yt.:;....id.:d 11l1'.II.'lph (41J )letcill Inll pcrnlillJallt. to eUlnill':llId \'erilyume: 111JI:
tCUClnl1Jlelimc. .
(Ill 1!ucule .nd me luch ....Iemenu and nolices u D.ank mal'tqucsl to pttscI'Ve or protect iu inlercsl hereundcr.
te) EUlJline or use one or motc Oank Cud or MAC Cud seclltily rulutcs ;lIdu~illl renonalldentirlcation Nurnbtrs. il IppUable. belole c.omplclinl
Ilnr\I.Jelion.
11. Conflolellli"lily. The: Melthlnl shall nOI. will10ullhe c:ardlJoldet', conscnt, scll, plIreha.se. provide, or ucbatlle U~nk ea,d number 0' MAC Ct,e;
number inrurlllation in the (orm oriJnprintedulcs Slips. mailin, Ii.sU. tapes.journll rolls, Of 'n)' othef media obtained bl rusoll or a Ilallk Cartlor MAC
CltdT,.nsacti"n 10 any IIlitd plr1y other Ihln 10 lire Merc!lant's I&ent(ol lhepulpOSCo(wistin, Ihe Merdllltt ifl iu buslllCSl,10iu Dank. to lhelcspccti\'c
Dank Cald ASJClCiatiort. till: MONtlY ACCESS SI!ItvIC!!'- or pumunllo 'aoytlnm~nl requesl
IJ. Allplialion IIIYUliC:aliofl. The llIerc!lZnl.ulho,iu;s Ihe Oank or iucorrupomJenl to invc,UiE::.te the backcround ud penonal aedit hislOryuC ltIyor
all o(lhe principiis lWOC.illwwilbbusinc:.u.
14. ElTtclin DalelTtnuill2tion. This A.rutncllt shan become eerecliye 'Nben si&ned by both p21'tics and sbaU rem.in in full Corce lQII ctra:t unlll
letminlltd by either parll a.s proYided below. Either part)' heteto may terminll' thLi ^Ireement.t any lime by written notice 10 the ctbel lei bcc:ome
dtccli\'c on Ihe wle specified in such nolicco Itowe'ltr the termination d.attshallnOl. bcprior to (hedal.lbe termillalion notice La liYCQ. Alloblla;atlOAl 01
MCI,lu.nt incUlfed or ellistin, under this Alrurnelll LI o( the. dl'ccCiyc; dale or lerminatlOIl lliAU all"";ve. Jucb 1cIminalioll.
U. ^ptlllC.lltilllr In" Sucnllllil}". The proYisiolU ofth" Alrument IlIall be Optlltive lor .nd Ipplic.ablclO Dink Cards wutd unllcr lhe Vu.. C..1l
rlolrlm Ot the Mutelearll rlO,"nl or both and cards wued underUle MACCar4 P,o,lIm. &lI Merchlnt's participation IndicaloJ abovcdetc:rmincs anll
Ihec.onlelllrc.quires.
16. MoIliriullon 10 Add Cuds. Froll,'linle 10 lime Dank may notiry MctcJllnllh,ll<!dilionll credit cards. tranl.nd enlertainnlefll ards Or deWI (lrds
mlY be .c:c.c:pled at lite Merch.nl" Terminal(s) IS Po11mcnl (or TUllS2ctiotU ("AtkJitionll Cards"). All provisiON oC Lllis Alreemcnt spplyin, cilhu 10
Dank C..ds 01 MAC Cardsllllll be applicable 10 TraNlctionl condUCled lISin,.ny.~h Addidonal Cards. The Danklhlll aotiry Mud..nl in wrilin, o(
.ny ,\ddilionll Cards Ibal mIl be .ctr.(lltJl. wht.rhu IUC" ~tl!s sfu.1I becon:!der:d u ",\tIdjt:.,n~i D~ak Cau:S"w",\Jdi,ion.! MAC Cards" and lhclces
10 be d""ed (Of scrvic.cs relaled 10 Ihe Addilional Cards. Acccpu.na:by Ille Mcrdranto(.n ^dtIition~1 eard a.s pa)'menl (ot a Tun.u:ction .l'u:r Ilank Iw
J(nt ~fetchanllpptOpfi'le notice shill constilUle Merchant's "terment to 'ccc:pl Atlditional Cards under tbe tc:rnu or this Aarecment and lhe (ees Or
ChUld Idalin, 10 1be Addilional D.tw.
17. "lotIjfitallo~~ or AmcndnlcnlJ QUlcrThan To ^dtl Cartll. nle D,n" mil modiCy Or .mend Ibis Aircement ror the purpose o( complyina wilt! the
'1Ilu .nd OflCtuin, reJuluions oC .ny Dsn" Card As.soeillion. the MONEY ACCESS SeR VICE-, Ot the Dank in providinl Ibis SCI'Iiee by W1illcn
I'Otiric.ation 10 Merchlllt no Ics.s Ihan len (10) lIa)'s prior 10 the errcc.live wle or Inl sueh Ilnendmenl. No other modificalion or IInUldrnenl ollnl
p'ovision or lI,is Allumenl (tzctpt lU proriJttl ill PtlTa,TOpn U Mrecl) shall be deemed clTcc.tive unless ill writinJanll si,ned bllbe panics helclO
.e'UinIIO be bound Ihcrebr. nlis Alfccnlent sllpersedes anl previollS Metcbanl Alleenlenl belWcel1 0..n1l: anll Mcrdllnl
lB. COIlJINellon ul ACrHllIelll. nlis Aj,ccmcnt shan be billuinl upon Ind shJ!1 inute 10 the benefil o(lhe p.nics helelo.lheir Icspective bdn. pc.rsonal
lellrCSCntlliv~. succ.cs.sot1lnd usilnllnd shill be lo\'emed bYlnd c:onslrucd inlc:c.oldancc widllhc Ilws ortheStaleoC t:..J;:~nl\$.Y.1.v.f.Q.t......... .
Wilnc.s thedlle elCoCulion hefeorlhi.s .~...~~.~~...:....... .................. day or .~~.~.~.~..:..................................... ............... 19 .~.,.......... .
ACCEI'TW AS Of THE MOVE DATE:
,British Net'Work. LTD
-----" rh{---l":;..~~-::;;.;;j"'-;;r:r-
Dr' 1\~ \~\p~tt~f.}J-. .
Orrstown Bank
-, _~'ft.)
o ' ()...---;7;?' 4.
1 ~ /-~' (A..w..i''J1$iI'''''_T~Io)
'j
(AoSoJ,ca)
SCIIEDULE. TO TilE DANK MERCIIANT AGREEMENT FOn
British'Network, LTD
IH._olM.ww.",)
I. Iohrehln' nheo_n' Male. The Mercllsnl Cllcounl RIle (or Vlu lllnll(llonl Is ......~:J?~............ %. TIle "Icrclunt DlJeollnt Rile lor
,,",ulelClfll lunucllon. IJ.....2...0.5............... %. The Monthlr Merchant SeNlce Fee II ,.....Q"'D.Q.............. . Thc'c "'lcount IIlel In4
JCtvlre ree UC' l\lble\:llu I'Clhl\llc rc\'IC1V' .nd adJuunlcnt br Pln1r:.
1. MAC Cud OI-~ounl n.lt. The MAC Cud Discollnl nile: is .......'<<1A................. ~., 1llil disc.ounl rllc is lubjCGt to rcric:xJic'rtview and
.djwlmenl by D,nk.
3. Aulhortulloll Cenler. ThcAuthonutionCcnler maYbcrc.achod2<4ltounld.a)'. The Iclephone numbcr is .............................................. .
nl" number ma;r be ehtnaed .1 anl1ime by Wnuen nOlice (rom D.urk.
.t. CWlomerSenlct t'lunlbcr. The CWlomerScrviceNumbct nllybe.ucJ,ctl2" hourS I dA,. Thclclephoncn1,lmbcru ..................;.............. .
This number o"ll-c c1IJn,cd II In)' lime b, wlinen notice rronl Dank.
.
t~~
~~~
ol::C;C
~ ~
~
1'- !')
-~ -I
8
SHERIFF'S RETURN - REGULAR
CASE NO: 2004-04656 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERlAND
ORRSTOWN BANK
VS
KLOZA JOSEPH D ET AL
RONALD KERR
, Sheriff or Deputy Sheriff of
Cumberland County, Pennsylvania, who being duly sworn according to law,
says, the within COMPLAINT & NOTICE
was served upon
KLOZA JOSEPH D the
DEFENDANT , at 1450:00 HOURS, on the 24th day of September, 2004
at 162 D STREET
CARLISLE, PA 17013
by handing to
WANDA M CRAWFORD KLOZA
a true and attested copy of COMPLAINT & NOTICE
together with
and at the same time directing Her attention to the contents thereof.
Sheriff's Costs:
Docketing
Service
Affidavit
Surcharge
So Answers:
18.00
3.70
.00
10.00
.00
31.70
.~~~
R. Thomas Kline
09/28/2004
OBRIEN BARIC SCHERER
Sworn and Subscribed to before
By:
12~{~
Deputy Sheriff
me this 'ft!::
day of
(]~ ;;too'! A.D.
C L.. Q. ivu.;P,. _ ~
~thonotary ,
SHERIFF'S RETURN - REGULAR
CASE NO: 2004-04656 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
ORRSTOWN BANK
V"
"'
KLOZA JOSEPH D ET AL
RONALD KERR
, Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within COMPLAINT & NOTICE
was served upon
KLOZA WANDA M CRAWFORD
the
DEFENDANT
, at 1450:00 HOURS, on the 24th day of September, 2004
at 162 D STREET
CARLISLE, PA 17013
by handing to
WANDA M CRAWFORD KLOZA
a true and attested copy of COMPLAINT & NOTICE
together with
and at the same time directing Her attention to the contents thereof.
Sheriff's Costs:
Docketing
Service
Affidavit
Surcharge
So Answers:
6.00
.00
.00
10.00
.00
16.00
7"'~~
R. Thomas Kline
09/28/2004
OBRIEN BARIC SCHERER
Sworn and Subscribed to before
By:
:0 '-", If
t~y S~erift
me this .5'~ day of
()u;;t,~~ .;;2 ov '-t' A.D.
( h 0 0<<.- 0.: ~~
~~thonotary ,
A
AllOM & KUTULAKIS, LLP
36 S. Hanover Street
Carlisle, P A 17013
(717) 249-0900
ORRSTOWN BANK,
Plaintiff
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYL VANIA
v.
: NO.: 2004-4656 CML TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA
husband and wife,
Defendants
: CIVIL ACTION - LAW
NOTICE TO PLEAD
TO: David A. Baric, Esquire
O'Brien, Baric and Scherer
17 West South Street
Carlisle, P A 17013
(Counsel for Plaintiff)
YOU ARE HEREBY NOTIFIED TO PLEAD TO THE WITHIN PRELIMINARY
OBJECTIONS OF DEFENDANTS WITHIN TWENTY (20) DAYS OF THE DATE OF
SERVICE OF THIS PLEADING.
AllOM & Klf1VLAKIS, LLP
36 S. Hanover Street
Carlisle, P A 17013
(717) 249-0900
ORRSTOWN BANK,
Plaintiff
v.
: IN TI-IE COURT OF COMMON PLEAS
: CUMBERLAND COlJNTY, PENNSYLVANIA
: NO.: 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M.CRAWFORDKLOZA
husband and wife,
Defendants
: CIVIL ACTION - LAW
DEFENDANTS' PRELIMINARY OBTECTIONS
Defendants, Joseph D. Kloza and Wanda M. Crawford Kloza, by their undersigned counsel,
preliminarily object to Plaintiffs Cornplaint pursuant to Pa.RCJ). 1028 as follows:
WITNESSE1H, Defendants contend that Plaintiffs Complaint fails to conform to law or
rule of court.
WITNESSE1H, Defendants hereby demur to Plaintiff's Corn plaint for failure to set forth a
claim or cause of action, which, if proved, would entitle the Plaintiff to the relief Plaintiff has
sought.
WITNESSE1H, Defendants contend that Plaintiff's Complaint fails for nonjoinder of
necessary party.
WITNESSE1H, Defendants contend that Plaintiff's Cornplaint fails for insufficient
specificity.
I. FAILURE OF PLAINTIFF'S COMPLAINT
TO CONFORM TO LAW OR RULE OF COURT
1. Plaintiff, Orrstown Bank, initiated a civil action against defendants, Joseph and Wanda
Kloza, at Cumberland County Court of Common Pleas Docket Number 2003-5997.
2. Plaintiff filed a Complaint at Docket Number 2003-5997 on March 11,2004.
3. Defendants ftled their first set of Prelimiruuy Objections to Plaintiff's Complaint at
Docket Number 2003-5997 on June 2, 2004.
4. In response, Plaintiff filed an Amended Complaint at Docket Number 2003-5997 on June
22,2004. A true and correct copy of Plaintiff's Amended Complaint without exhibits at Docket
Number 2003-5997 is attached as "Exhibit A".
5. In response to Plaintiff's Amended Complaint, Defendants filed their second set of
Prelimiruuy Objections at Docket Number 2003-5997 on July 14, 2004.
6. A Notice to Plead was attached to Plaintiff's Preliminary Objections ftled on July 14,
2004, at Docket Number 2003-5997.
7. On July 19, 2004, Plaintiff filed a Praecipe listing Defendant's Prelimiruuy Objections for
argument at Docket Number 2003-5997. A true and correct copy of Plaintiff's Praecipe for Listing
Case for Argument is attached as "Exhibit B".
8. Defendants' Preliminary Objections at Docket Number 2003-5997 were listed for
argument on September 22, 2004.
9. Plaintiff failed to ftle a timely Answer to Defendant's Prelimiruuy Objections.
10. On September 16, 2004, after realizing that the failure to ftle a timely Answer to
Defendants' Preliminary Objections acted as an admission to the averments contained in
Defendants' Preliminary Objections, Plaintiff fIled a voluntary Praecipe to Discontinue the suit at
Docket Number 2003-5997. A true and correct copy of Plaintiff's Praecipe to Discontinue is
attached as "Exhibit C".
11. Plaintiff initiated the instant suit by filing a Complaint on Septernber 16, 2004.
12. The Defendants nanled, the averments made, and the causes of action claimed in
Plaintiffs Complaint in the instant cause of action are identical to the Defendants, averments, and
causes of action contained in Plaintiffs Amended Cornplaint al: Docket Number 2003-5997. See,
Exhibit A.
13. There is no material difference in the instant suit from the suit docketed at 2003-5997.
14. Prior to initiating the instant cause of action, Plaintiff failed to conform to Pa.R.C.P.
231, which requires:
After a discontinuance or voluntary nonsuit the plaintiff may commence a second
action upon the Sanle cause of action upon payment of the costs of the former cause
of action. Pa.R.C.P.231(a).
15. Prior to initiating the instant cause of action, Plaintiff failed to pay Defendants' costs
from the identical and former cause of action docketed at 2003-5997.
16. Defendants' costs from the former cause of action at Docket Number 2003-5997 total
$6,823.00.
17. As of the date of Defendants' PreIiminary Objections, Plaintiff has yet to pay
Defendants' costs from the identical and former cause of action docketed at 2003-5997.
WHEREFORE, Defendants respectfully request that Plaintiff's Complaint be dismissed
with prejudice for failure to conform to law or rule of court, together with judgment in favor of
Defendants for costs incurred in defense of P!anitiff's suit.
IN 1HE ALTERNATIVE, Defendants respectfully request that Plaintiff's pay the
Defendants' costs from the former suit totaling $6,823.00 before being pennitted to continue the
instant cause of action.
II. LEGAL INSUFFICIENCY OF PLAINTIFF'S COMPLAINT (DEMURRER)
18. Defendants incorporate by reference paragraphs one through seventeen as though set
forth at length.
19. Plaintiff's Complaint alleges, in summary, that the Defendants entered into one or rnore
contracts with the Plaintiff and Defendants ultimately breached those contracts.
20. Plaintiff avers that Defendants executed a Signature Card Agreement establishing a
checking account in the name of British Networks Ltd. A true and correct copy of the Signature
Card Agreement is attached as "Exhibit D".
21. Plaintiff avers that Defendants executed an Electronic Point of Sale Merchant
Agreement ("Point of Sale Agreement") with Plaintiff for the "merchant" known as British NetwOlK
Ltd. A true and correct copy of the Point of Sale Agreement is attached as "Exhibit E".
22. Plaintiff has acknowledged that British Network Ltd., at all relevant times, was a
business.
23. Plaintiff failed to acknowledge that British NetwoIX. Ltd is and was a corporation at all
relevant times.
24. British Network Ltd is a corporation organized under the General Corporation Law of
Delaware. A true and correct copy of the Certificate of Incorporation of British Network Ltd is
attached as "Exhibit F".
25. British Network Ltd is registered as a Foreign Business Corporation in the
Commonwealth of Pennsylvania. A true and correct copy of the, Application for Certificate of
Authority bearing the entity number of British NetwoIX Ltd is attached as "Exhibit G".
26. Defendants, Joseph and Wanda Kloza, at all relevant times, were officers and directors
of British NetwoIX Ltd., a corporation.
27. The parties to the Point of Sale Agreement and the Signature Card Agreernent were
Orrstown Bank and British NetwOlK Ltc!.
28. The Signature Card Agreernent was executed to establish a business banking relationship
between Orrstown Bank and British NetwOlK Ltc!.
29. Plaintiff and British Network Ltc!. operated the account that was opened pursuant to the
Signature Card Agreement as a business account. A true and correct copy of the first page of the
December 1999 Regular Business Account Statement of British Network Ltd. is attached as
"Exhibit H".
30. Joseph and Wanda Kloza opened a separate banking account with Orrstown Bank that
was established for personal banking purposes.
31. The Point of Sale Agreement was executed to allow Orrstown Bank to process credit
card charges frorn customers of British Network Ltd.
32. The Signature Card Agreernent was signed by Joseph Kloza and Wanda Kloza as
authorized signatories for British Network Ltc!.
33. The Point of Sale Agreernent was executed by Joseph Kloza as President of British
Network Ltc!.
34. The Point of Sale Agreement and the Signature Carel Agreement were not executed by
Joseph Kloza and Wanda Kloza as individuals.
35. It was the intention of Orrstown to hold the Defendants personally liable pursuant to a
personal guaranty contained in a Merchant Agreement that was presented to Joseph Kloza by
Plaintiff. A true and correct copy of the proposed Merchant Agreement containing a personal
guaranty that was presented to Joseph Kloza is attached as "Exhibit I".
36. Defendants refused to sign the Merchant Agreement containing the personal guaranty
that would have made the Defendants liable as individuals. See, 'Exhibit I".
37. Plaintiff has not presented a personal guaranty signed by Defendants that would make
Defendants liable as individuals for the debts that have been claimed by Plaintiff.
38. Pennsylvania law is clear that an individual defendant is not personally liable for the
debts of a corporation. Electron Energy Corp. v. Short, 597 A.2d 175 (pa. Super. 1991).
39. Plaintiff's Complaint and Amended Complaint are legally insufficient for failure to
present facts necessary to establish that Defendants are liable as individuals for the debt of British
NetwOlK, Ltd., a corporation.
WHEREFORE, Defendants respectfully request that Plaintiff's Cornplaint be dismissed
with prejudice, together with judgment in favor of Defendants for costs incurred in defense of
P!anitiff's suit.
III. INSUFFICIENT SPECIFICITY OF PIAIJ'JTIFF'S COMPLAINT
40. Defendants incorporate by reference paragraphs one through thirty-nine as though set
forth at length.
41. Plaintiff makes general and vague averments in its Complaint that Defendants acted in a
manner sufficient to pierce the corporate veil of British Network Ltd.
4 2. Plaintiff's Cornplaint fail for legal insufficiency and insufficient specificity because no
specific instances have been averred where the Defendants acted in a manner sufficient to pierce the
corporate veil of British Network Ltd
WHEREFORE, Defendants respectfully request that Pbintiff's Complaint be dismissed
with prejudice, together with judgment in favor of Defendants for costs incurred in defense of
Planitiff's suit.
IV. NONJOINDER OF A NECESSARY PARTY
43. Defendants incorporate by reference paragraphs one through forty-two as though set
forth at length.
44. Plaintiff has failed to nanle British Network Ltd. as a defendant so that its corporate veil
could be pierced.
45. British Network Ltd is an interested party to the events and transactions that gave rise
to the Plaintiff's alleged cause of action.
46. Plaintiff's Complaint fails for nonjoinder of a necessary party, British Network Ltd
WHEREFORE, Defendants respectfully request this CoUrt to grant their preliminary
objections for failure to conform to law or rule of court, legal insufficiency byway of demurrer,
nonjoinder of a necessary party and insufficient specificity by dismissing all counts of Plaintiff's
Complaint Joseph Kloza and Wanda Kloza as individuals with prejudice, together with reasonable
costs incurred in defense of Planitiff's suit.
Respectfully subIllutted,
ABOM & KUTULtlKIS, LLP
. &-~
7'~ '/ /.
Michael T. Traxler, Esquire
36 S. Hanover Street
Carlisle, P A 17013
(717) 249-0900
ill No. 90961
Attorney fur De/indtoUs
VERIFICATION
Michael T. Traxler, states that he is the attorney for the p:uty filing the foregoing document; that
he makes this affidavit as an attorney, because the party he reprei;ents lacks sufficient knowledge or
information upon which to make a verification and! or because he has greater personal knowledge of
the information and belief than that of the party for whom he mikes this affidavit; and that this
statement is made subject to the penalties of 18 Pa.C.S. 4904, relating to unsworn falsification of
authorities.
Date:
/0/6 /0 ~
/ t
~~/-~
Michael T. Traxler
ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
v.
NO. 2003-5997 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
AMENDED COMPLAINT
NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC
& SCHERER, and files the within Complaint and, in support thereof, sets forth the following:
I. Plaintiff is Orrstown Bank, a Pennsylvania corporation, with its principal place of
business located at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania.
2. Defendant, Joseph D. Kloza, is an adult individual who resides in Cumberland
County, Pennsylvania.
3. Defendant, Wanda M. Crawford Kloza, is an mdult individual who resides in
Cumberland County, Pe'nnsylvania.
4. Upon information and belief, Joseph D. Kloza and Wanda M. Crawford KJoza
have been, all relevant tirnes, the owners and operators of a certain business known as British
Network Ltd.
5. British Network Ltd. was in the business of providing travel services such as, but
not limited to, the sale of travel packages to individuals.
6. On or about May 26, 1999, Joseph D. Kloza and Wanda M. Crawford Kloza
executed a Signature Card Agreement with Orrstown Bank establishing a regular checking
account in the name of British Network Ltd. A true and correct copy of the Signature Card
Agreernent for tl1is account is attached hereto as Exhibit "^''' and is incorporated.
7. On or about June 28, 1999, Joseph D. Kloza executed an Electronic Point of Sale
Merchant Agreement ("Point of Sale Agreement") with Orrstown Bank for the "merchant"
known as British Network Ltd. A true and correct copy of tile Electronic Point of Sale Merchant
Agreement is attached hereto as Exhibit "B" and is incorporated by reference.
8. Pursuant to tl1e Electronic Point of Sale Merchant Agreement, Orrstown Bank
would process Visa@andMasterCard@ charges from customers of British Network. Further,
Orrstown Bank agreed to provide a credit to British Network equal to tl1e total oftl1e charges
placed by customers of British Network who used these credit cards. These credits were placed
into tl1e British Network Ltd regular checking account referenced above.
9. The Point of Sale Agreement provided for charge backs by customers of British
Network. In particular, any charge backs by customers of British Network were to be handled as
follows:
"5. Adjustments and Returns. ... In !the event that goods are returned,
or any services are terminated or cancelled, or !my price adjustments on a
Transaction are allowed by Merchant, the Merchant will prepare and transmit
through the electronic terminal a credit (or return) Transaction for the amount of
the adjustment as a deduction from the total amount of sales drafts transmitted
that day. In tl1e event that the amount of the cre:dit (or return) Transactions exceed
the amount of the sales drafts transmitted, Bank shall charge tl1e Merchant's
account at the Bank for the amount by which the credit Transactions exceed the
total amount of the sales drafts transmitted that banking day."
10. The Signature Card Agreement provided, in :relevant part, as follows:
Liability- Each of you agrees, for yourself (and the person or entity you represent
if you sign as a representative of another) to the terms of this account and the
schedule of charges that may be imposed. You authorize us to deduct these
charges as accrued directly from the account balance. You also agree to pay
additional reasonable charges we may impOSf: for services you request which are
not contemplated by this agreement. Each of you also agrees to be jointly and
severally liable for any account deficit resulting from charges or overdrafts,
whether caused by you or another authorized to withdraw from this account, and
the costs we incur to collect the deficit including, to the extent permitted by law,
our reasonable attorney's fees.
II. The Defendants used and employed the benefits of the Point of Sale Merchant
Agreement including, but not limited to, withdrawing funds for credit card transactions.
12. No reserve was established by Defendants for charge backs which may Occur
under the Point of Sale Merchant Agreement plan.
13. During the period December 3, 2001 through April 12, 2002, twenty-five (25)
transactions were charged back to Orrstown Bank on Defendants' Point of Sale Merchant
Agreement for a total dollar anlount of$12,488.12.
14. During tlie Sanle period, six (6) service fees were levied against Orrstown Bank on
Defendants' Point of Sale Merchant Agreement for a total cost of $221.00.
15. Orrstown Bank has incurred costs and expenses of $3,413.95 through the date of
this complaint regarding attempt to recover the anlount due from Defendants pursuant to the
Point of Sale Merchant Agreement and the Signature Card Agreement.
16. The Signature Card Agreement permits the recovery of attorney fees by Orrstown
Bank.
17. Upon information and belief, Joseph Kloza and Wanda Kloza did remove from
the accounts of British Network Ltd. substantial sums of money for which they had no
entitlement.
18. Joseph Kloza and Wanda Kloza removed substantial sums of money from the
accounts of British Network Ltd. when they knew that removing said sums would render British
Network Ltd. insolvent and otherwise unable to pay its creditors.
19. The acts of Joseph Kloza and Wanda Kloza were such as to permit piercing of the
corporate veil of British Network Ltd.
20. Joseph Kloza and Wanda Kloza used the accounts of British Network Ltd. as
though said accounts were the personal accounts of Joseph Kloza and Wanda Kloza including,
but not limited to, removing sums of money frorn said accounts to pay personal expenses of
Joseph and/or Wanda Kloza.
COUNT I.BREACH OF CONTRACT
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
21. Plaintiff incorporates by reference paragraphs one through twenty as though set
forth at length.
22. Joseph D. Kloza and Wanda M. Crawford Kloza agreed to pay any deficit
resulting from charges or overdrafts to the regular checking account.
23. Charges and overdrafts in said account total $13,758.84.
24. Demand has been made upon Defendants to pay this amount.
25. Defendants have failed and refused to pay this amount to Orrstown Bank.
26. Defendants have breached the terms of the Signature Card Agreement.
27. As a direct and proximate result of Defendants' breach of the Signature Card
Agreement, Orrstown Bank has incurred the following damages:
a)
charged back items
$13,537.84
b)
service charges
$ 221.00
c)
expenses inclIITed in
recovery
$ 3,413.95
TOTAL:
$17,172.79
28. Orrstown BarIk has, and will continue, to incur attorney fees in its efforts to
collect the deficit from Defendants. The Signature Card Agreement provides for the recovery of
attorney fees paid by Orrstown BarIk in the collection of the deficit.
WHEREFORE, Plaintiff requests judgment in its favor and against Defendants for the
sum of $17,172.79 plus costs, expenses, interest and attorney fees all in an amount not in excess
of the lirnits requiring compulsory arbitration.
COUNT II-QUANTUM MElRUlT
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
29. Plaintiff incorporates by reference paragraphs one through twenty-eight as though
set forth at length.
30. Defendants did have, use and enjoy the benefit of the credits provided by
Orrstown BarIk to the Business Checking Account.
31. Defendants failed to provide the services and goods for which payments were
made by customers of British Network Ltd. in credit card transactions which were credited by
Orrstown BarIk to the Business Checking Account.
32. Defendants have failed and refused to refund to Orrstown BarIk the amount
necessary to pay the charge backs against the Business Checking Account.
33. Defendants have been unjustly enriched by retaining the funds to which they were
not entitled.
WHEREFORE, Plaintiff requests judgment in its favor and against Defendants for the
sum of$13,758.84 plus interest, costs and expenses.
COUNT III- CONVERSION
ORRSTOWN BANK v. JOSEPH D. KLOZA and W All/DA M. CRAWFORD KLOZA
34. Plaintiff incorporates paragraphs one through thirty-three as though set forth at
length.
35. Defendants did convert money of British Networks Ltd. to their own use and
enjoyment when said money was rightfully to be held by British Networks Ltd. to pay for
services and goods promised by British Networks Ltd. to its customers.
36. As a consequence of this conversion of funds by Defendants, Orrstown Bank was
charged back the aforementioned sums when British Networks Ltd. did not have the funds to pay
for the promised goods and services.
<
37. Defendants actions were intentional and caused the insolvency of British
Networks Ltd.
38. Defendants knew that by stripping British Networks Ltd. of funds, the business
would not have assets sufficient to pay for the services and goods required to be provided to its
customers.
WHEREFORE, Plaintiff requests judgment in its favor and against Defendants for the
sum of $17,172.79, costs and expenses and punitive damag(~s.
Respectfully submitted,
David A. Baric, Esquire
ID#44853
17 West South Street
Carlisle, P A 17013
(717) 249-6873
Attorney for Plaintiff
dab.dir/orrstownbankIkIoza/complaint2.pld
VERIFICATION
I verifY that the statements made in the foregoing Amended Complaint 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 statements provided by the Plaintiff
and other persons, as well as documents reviewed by the undl:rsigned 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 understand tllat false statements herein are made
subject to the penalties of 18 Pa. C.S. S 4904, relating to unsworn falsification to authorities.
~/
.
David A. Baric, Esquire
Dated: & /,r!6 {
{ I
CERTIFICATE OF SERVICE
I hereby certify that on June 22, 2004, I, David A. Baric, Esquire of O'Brien, Baric &
Scherer, did serve a copy of the Amended Complaint, by first class U.S. mail, postage prepaid, to
the parties listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 S. Hanover Street
Carlisle, P A 17013
David A. Baric, Esquire
PRAECIPE FOR LISTING CASE FOR ARGUMENT
(Must be typewritten and subnitted in duplicate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Please list the within matter far the next Argtrnent Court.
----------------------------------------------------------------------------------------
CAPTION OF CASE
(entire caption must be stated in full)
ORRSTOWN BANK
vs.
( Plaintiff)
JOSEPH D. KLOZA AND
WANDA M. CRAWFORD KLOZA
( Defendant)
No. t:;QQ7
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Civil ACTION-LAW~g 2004
1. State matter to be argued (i.e.. plaintiff's ITOtion for new trial. defendant's
danurrer to canplaint. etc.):
2. Identify =unsel who will argue case:
(a)
for plaintiff:
Address:
DAVID A. BARIC, ESQ.
19 W. SOUTH ST
CARLISLE, PA 17013
(b)
for defendant:
Address:
MICHAEL T. TRAXLER, ESQ.
36 S. HANOVER ST
CARLISLE, PA 17013
3.
I will notify all parties in writing within t:1oU days that this case has
been listed for arguTlent.
4.
Argunent Court Date:
SEPTEMBER
-~0
.a.t-t-nT"T\~ rnr DT 1\ TlI.T/TIT1:I1:I
I-
ORRSTOWN BANK,
Plaintiff
v.
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA,:
husband and wife,
Defendants
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL V ANlA
NO. 2003-5997 CIVIL TERM
CIVIL ACTION-LAW
PRAECIPE TO DISCONTINUE
TO THE PROTHONOTARY:
Please discontinue ilie above-captioned matter wiiliout prejudice.
dab.dir/orrstownbankIkJoza/discontinue.pra
Respectfully submitted,
David A. Baric, Esquire
I.D.44853
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
Attorney t1)r Plaintiff,
Orrstown Bank
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luttd.IOIalo'3Dd""II!","",*,""Il.~lIfn1...d._lIoUlltkorou. ...
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Il-houldh.l...bterl..I.."'dIO...'tdt...OOv........"II.any...llIIl,)'OUlUIhorIllu.IO~II..._
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T1!MPORARY .lCCOUN"T ACAliIMINT. Ill.... ...1101>.. ehtckld '" Ii'll ICCOWII -.cont., IN... IlompotltY
IICCOUIII.g..........Lblll'pMIOIIwholigno""'IIlI...Iu..l;:....r..c.pl..lMlIlI.l..,lolhec"'....,...tn.
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ELEC7RONJ:C I'OINT ('.
MERcrrANl' AGIU'
-ALE
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(b""..C., ,<1"'01 '" 01 "a.'I") "d ....................~.r.f.~.~.~.~...l!.~.t';!1.,.~.,..~TlI.................. ........................................................
...... .....:................................ ........ il,,,.in.&, "r",~ '" 01 'M<roJ..,;,,,.ro:lIl th....... a.d "oW~o" oIM"du.o,'1 p..~Ol"'o, io v.,.1',
'mev.... Co'd 1'1....... 'fiiw"'U,d'u,d p"';.,.,, , '-0 MAc, r".,....
U.I.u ,b. "..., 'Ib'N.. ,,,w'''. "",,'1=1,. lb. V... Owl< 0' p,,,",,, ""'" hlu.,Co,d" ,"= 10"'""", "'... ":h'Ibu,".oJh, u"1,, """
"lbo,1ud ....'" 01' ......>J\or <olJO<tl'd, ,d,noJ.. u, ....1 Cu.".. .ll&ol Cu"'.. Cu'" bouio.lh, 10" MAC' ..dI" MON!!Y ACCl!SS
CAJlO. wbc.thu wucd by Dwlt or other authorLz.ed wuen &lCltlurcd ~) &I MAC Cards.
I. II,","", C...... M"..... ..''''" ,,1I,,!............ ..d",.,I", I.th,bo'd,,, 'hI! "lid ""pl,,,,..d """""""d"oJ ".1 Cu",..d MAC
Co,.....d" 'o:upt 1l..1 Co,,,,..d MACCU....ooI '<ui" ",y."., ""'<I" h,w ".1 io _'duo" with Ibu "'.uutlbb ^""wo" (ho,.,
l.dl.id..lI, "..lI"~"IY"lIo1, -r.."""",.~ "'''<huo.."", '" Pto"""dYdup.., 1lWc C.ud..d MAC Cud ""bl,"" ..uUIJIO P",",Ii.,.1
"""".1.." Ii'",,,,, p"rid,,' by n..1" Ih. M""",,, p"" ,Cbwl,w, M."h.., ""y "'''''I..WuIs. n..1 Cud .ral., "uk>."" MAC c.""
dul,. ."d '..d,,,,,,ko i, I. 'w" 'd'''I.."". ..d P""'~'IUl""""""bi,,'.. ...k.....'..d ,C'.do... u.. "~"ud, "'dl~.w", ".1
1I111.cquitc. .
1. n..1 Cud ..,,, MACCUdT''''''.UO.... I!.u:II T......,lio..hdl be ,d1eaol" soJ" wof. 0' ":<IiI Co,... "Pvool., "'V",oJ by D..I..d ,I>oJI
CDGWa the (ollowLnc Wonu.lioa: '. ", .
(I> Name of Mcrdwzc I.Ild Mcrc:JwJ.t ftlUhbct t1tsill1llal by I1I4k;
Cb) Th. ...1 Cud" MAC Cud 00""', 'di<I.oUoo ... "d ",i"'i,, "'. 0/ lb, ll&ok u,d 0' MAC Cud, U 0" .".....ihu..U;
(c) A Drit(dC:SOiPUODOILhCJoodIlJltlk:rYiCCSlaVoIVedlalhcTI&lWdoG: " .. ~ . .
Cd) Th, "Di" pt"". ..,"lot "illl 'p,ll..bl. II,,, or olhu, clwt... Old Ihu lolal......, ollb, Trawaaioa; "d
C') Si...,... 01 CUdboIdoi" ,.lbotiud -, "14 ollb. T,.....,;"..d lb, T,uwaioo .,pt....C 0001'" 10' Ih. T,UUl<1io~
. . .. ", . ....,. .
M:n:!o:n: '."" ',d,:1;".. i. .......".. .....r,""'aio. 'lsu''''''_plu'oIco",ol. soJ"dull o,..alI,lo,m. Moduu,,,,,,,,,,,.. .".wll
. ..I..d..fi '" U..I ,..n,ucb Iim.u M,,_, buve<tolmudi. obU,.h',,,..1bu "'dbold"io coo....... "ilh.uclI'r",...,,",~ M"du.o, wW".,
'''<nd "oIi, COl. ut doC" "" dOl' 01 ",y..", 01 "1 "",.IIh, "laI<aoh p"";,, ", Tuwoa;" ..d wW 0" ho.ut . """ Cud 01 MAC u,d ""'" I"
'1'''''''''10' Wh""'o.''''h"n.. hd"..., ",y.h1~ /oItlc!...., wW.", "",,,,,,<cid ,!w" '" o,,,..ct ou,.,><cloJ"",w,", ut ",wl,y C,.."
.", "'d"old" i"....<uti.. willi "y T".....ia,. "''''''''''hdl ""......I'....a." wID 00' ''''p' lut ,"y"''''''y "'e d,.. rut .,......"1.,,
wllic..b w~ lIut oliCiIYIecJ &llICl~t 0(, cJilCd TI~ga 1x:t~ecll the MerclllJlt ucl, cardholder.
J. ".lIwd....II,,,.. Mu..:hau' ww ..h..i, uadi .....Cli" c" .podGe ..Ib"iud~ h... ll&ok', ^.lhoriu~.. c.,,"" .;., .. "",".uic .,w..>oJ
'PJ'lo,oj b7 d" D..i. 0' as o'b<rwUr: rII,,,,,,,, h11lulk bulo"compl.~." o/T,lOSll:tio~ J.1hu "collh" Ih. "'ulilUl u 1..,,'''hl'''Ib, 11m, oC '"
'u1ho,iu~OII '<ques' /oIACc.,d TIl.....llo.. wW bodccliooj by M,,"..,,~ h,,,,,or ll&ok c.,dT,...."'o'.""1 bo ..lbutizcU bTwl., Ih, ..,,',
dld.ap C.ali',...: "',,011'10 'b, 14,..i,d I."" tha...y pro,'dol lb. "P.,o'o! ow.",,, &bo ""'cd. U.uclI 01"'''14 ..lbo"........ u ''''la!.
MClclllnl wiJl enlCl saiclapplova.I aWlIbct 00 tbc sales clull. .
~ Eltctron!c Tn.ruaatUaI oC Dralll and PI)'IDCnIs.'
(.) E1<drool. T_'llI.1 Sal.. Dralla,. Me,..... duJI "bwit '''~ ll&ok Co,d a.d MAC Cud T"......, lur "woriu~.. ,;., d",.,,;.
Icrm/nol U p'o.ld'" J. ,"..".. J. .'Th...., duJI..1hozl:o ur ""u.. 'uch T.-..;... .....Iued lor lUlborlu.'Io, ..u duJI..ptw, Ond
"...... ro, "" M"..", d" intOl1ll.ldoo 'dollo... Ib, T'.....,;o~ 1oIon.u1lo,.. bo .""""''''' h, lb. Morclwu Iluou,b!be ",..wr'l>dl
'''''''''~ b.. ,haD 001 Iou 11";',,, ",Ib'''14 01"" ''-11,~ d.. """"" 0I1b..'-I1..."" Ilulk Cud ,""... or MAC Co'd '''''bu, ,CIh,
"''','d". d" ""'Ulb";...dno 'PP'D." .....,""'''''. o:<Ilh<rio""""" """004 """... (d:>=l"~"w.",~" .............."'.1 <wI
pb"l: 1l..1.00I M"..... ."y I,om ~... .. II", m"""'y .".. 'PO' odrJilioool i.lo,...~o,.. he "h.i1'1ed. Mud"" '.''''.. iud"". "y
,<WI"...I l"ro,n.li." _'1 10' Il.ok OO"'..plywilb dl l..d"".i".....Co, bIWo.uanlh.,d.... n.. M"d...'~wl.. '''I_lbl,.. 1"1.....
,,,d '_cll, '.0'0' m",S.,"""y T."",,,,o..I,,.... M"...,jT...loduadi..,. MolJ PoM. 'I........., "y""!l&okwIDp'OYid, Ih,
/01"...., wilb . ""'i, ..ud " lb. ,,,,,,oil'" SIlII>OWy T,&!WCIlo. Iolal 01 &II Mer<huo,', """""" .1"" lb. I""iolll aolil Iud""", "y
.diw""..~;r""",,'1. II... Muclu..CW.. ioillaJe ..d'=ociJuaswoowyr'_lo, "y..y,1bu 1lWc wW ....'..'..oIil,,'uclI doy.
(b) r.y..."...... F... Fur IlMk Cud T.....,"".... FOI.ocblJ&"S: c.."uJ"waA _plud..., ...d,..,.d, D."I wID,wy/.!.'t!:;,: :o~..".,,,,
0'1..1 .. II.. ...oj cub "ice 01 """ d..C.I... <he JOCl<C"" ..",01 b7 d" Daol ro, i. "Mca (M Mud,.., D.....n' 11&., u >low, o. Ib,
Schol.I,,, lb"A""""L r'YOl'''''h'lI bo."",.. M""""'b7a.wU",lbc M"cl....'.._."'" lb, !Ia.\:, Th. Dauhhol/"....Ih.,;'hl."
l"i",(JOJ "''' p,ior ",,11"'0 ","... "...."'y....ice C.. C"T"..ln"..."....,..=;,., Cur..oh M"clu",J",,~...1 wbiobT,...."'". '''y
he ""'!uc'oI. M"...., .,,'" ...,..." I.. .", bo doj,,~oI r'a.. Mud.",', ""',,',' d" a.,k w,..'" u "alIIud h, ".01 wilb ,"y."..
''''....du. All odj"'..". Co, uJ.. d"r. .... u ohll'cb&d:o 0' ",,""'.. J'lo.;d'" lur i. IlW A.,...."" ,hdl "'" .. doI"'Iud I..IU
Merchant's la:ounl. '"thoUI prior notirlcatiolt, .
(.) '.ym... ..,d F... lor MAC Cud T.....,"o... p" uadi MAC u,d sol" "'.. _VIud .nd "'........ ".1 will '"' Mo",,"1 U, """",
....,', Ib, "w""'p,'" .1.... duh "" 'h. ""....U"d",,'" by d" I.., C" i......... ('M...",.., MAC I'", II ,h,w. ..1b'Sd,oJ.l, IU
Ihis A"cclncnL P.yment shall be maclc to MClc.lwu by acdjtinr lbe MCldwll" &o:o1Ull.ar the llank.
(J) "oI'''U.".C O,I,lnd Sol" D,". ""d CoVJu.. M""..".,,... dOl i, ,Iulll,w, w, o,I.;,d uJ" duh 01 ",di, C,,'" 0' .I..lbl, ..I".",w
"py 'h",.re". ""ied .C"". (7) y"... !Jow..... M"d..o. ..'''' I'".i. d" ,".ilUl..I" w.h ""all. I"", COI, ""od uf,.., I", ,Iu..."
h..d,oI 01,1"1 (IIIl)",,,. A'II" n..I', '.l'''~ ",,,.1,,.. ....11 ",i1 Ib, ";,;o&lIy""""" ul.. d..ho, "eW' Co,.. '0 D"t,iC,,,,,, "1,ilUllw
hcun ...inol." iC 00 ,..... ",lI.bI,.. ""y. lb.. maill., .Iull .1, ...., wilhi. a" (5) hwl......p 01 '0<01.,.1 Ih, "'1'0' by M"d.". It
. M",Io.., r.llo '0 Plo.ld, 110,..,,, d..ho, "oIl1 COlU' 0" "py .C.... wllhl. n" bwln.....'" or il" ..I" w&lluta.w,I"m w"' ruoJ 10 ''',,,d
Tlans.:aClion. Dink shall h.ne (ull tecounc 10 Meech..nl Cot auy!::,tion oClbc wrlC wbich i.I uucollectible or which is clue l'ld uwinC a CWIUlIlct.
J'"",,,.. ..I" d..fi o'"oJi, ro,m whi<h d", '0' co,"i" Ib, I" o,m,"o. '.1",,01 ",d" P"',"pl. 2(10) ..d2(').1I .".ldoJ"I.1I "'" ....bi'"
10 Iul' ,"""" Illh'","I,ol"" """"u...o d"VU" II" ..Ildhy .1,10, ,bot"~ .1i",",,1 Iw 1''''''''101 Ih, M""""I" "id"" o/"lldilY" II"
cbu&:etolllcwllllufllCl.
5. Ad)w.".... ond ,,;,......." M",,,.., wlll ,..loW. , Cok "dw". "d ,,,.,, poll.y ..d "..I. .oJj""",,, wI,,, ..,....... '" ,".h ",oj ""i,~
.","",, ",v,",tl,,~ i."..".. II,,, ''''''" """"ooJ; or "7""1... 01' 'c..,i,,"" o''''''''ud, 0' 'Qy ",i" odiw.",,,.... T.....,1i.. '"
.1I0wol b7 M'''I''n~ d" M"oh"" wlll P""''' 'nd .....,i, Ib,o.,b Ib, """",,, ~noiod. """, (0'./<1"') fr....",.".c., lb, "''','' ,C Ib,
.djw'm,,,",, doJ..~o. h''''.'''lol&/ ""'''1 0(..1" wd. ....milla! du, "'y. I. Ih, "'0' du, d" "i;."" oCd'coall, C" ""m) T"",,~I,,"
",..'" Ih, .m..", ,rll" ul" "..r" "...ml"",. Il"" .b.1I "'",. .1.. M""..m', .",...",,,",, ,,,'k I" lh, ~IIO"': b,. ""1:1, ~""Ji: T",...,~,,,"
""01"" I'UI"""I.III" ..,,, J..C.'...."'llI'" thal....Iin, do,. u,..I"d'&11 rut "TT.....,.;.. I.. wbi'" IOU "I..,,, .'""". will he,;""
'OWl he "..,I..,,,I,.,,,loj", . "nn"UI,' ond." ",,,,,,' 0' II" ,,,,,,,,,., copy" Ib, """o(d" T..,...,Ii... M'"I,.." I.,...,. ,,"I, ,,,...10
I(funwon Ulnt CuLl or MAC Calli T,lIWcuoru .lnll lo II..l1lLlle &II qaJjt .lJjlUl.lIIcnts u pfovidcU lUoYe,
Go Cw...", C.m,'''b,.. M'"';.n,."I"Wlol''''b''',,,,, 'p,ll..bl, I.wo, ,,".10110.. M"du"""d !Ia,,1 ""y he ..hi,,, '"ct.I". lId lid"",,
"..i., OUl ,I .",T""'ai,~ n"'R\o'''OIlI'hIJI'y io ...."do. wilh ''''lUd ,I.", "d,C.... "'" n.ud by 'l'I"i..",..w., ""Ilii". &I .1.
'I<<;n. ""I", i'II,,~ A"'''di''ily. M"'h.", .,,'" 10 ...inlll. I. wtllh,. wilb,ol""'" ,,'" Wim 0' d,r"", ",,,..d by. D."t C.."".I"" or MAC
Cud".ld" in..',I.,. T,....."I.. (0' wl,i<b M"du"'o:ui," .o~... (I) """'''';01'',,'. "m,. (II) ,10, a.,,1 D,d ""'he, "' M^CC.." """"'. (III)
,10, "I'..d lim. "" "'dh,'d" "''''01 th, dol,,, 0' dol,.... (I.) d"'"'"or".. ""I"" ",r,,,, ".d (.) d" ",I." whl,h M""",, Iwt i" "'IiI""I'1
10 '''01" "" db,.I. Mml... Ih,lI ,,,.bh ..., wid, ..,,, i"Co....~.. 'pon "~'''L M..duu'."", ,. I"d"".ily D."I C"m u,d .,,,,"' "'y
II.blllly (I"cl.di". .1I1"d r....ooI ....) whl"" a.", IU'y io.., II . '"ull oC/oI"""I', rOll.".. "'..pI7 will, "'b pru,hill~
,. M",,,,,,, Sur""". /oI"'h'n! 'i'''' '0"0 1m.... ";"h;", on. "'dhol"" wl,o ,1,,1i.. w, .n",1 D,d 0' MAC Co,d I" Il.. 0' ,"y",,,,. by
cuh, check orli/fli/uruc.ulJ,
.. a,,,.. ...1.. Th, -."." by 0...1 oC"y 01".0,,1. ."'orllOl al. ..I" ""Ill.. "'pwh.. ",,,,,,,,,,', ."'"", '''.11 he wltllUUI """"",,
Mcechanl in any CYeIIl u.upt... olhcrwIs" intUCllcd to I.IW ~lecmCot or u (w/ow,: .
(.) N, lpodr", J'l1" ..1b"...,10. ,C Ih. T'''''''''OD w"' oh.i,oI h,,, II" A.lb,o...d" Co"." ur Ib, '.p"'d ,,,..., .1,,, " r.dk.... lh,
luthorlulion iloa not 'ppcu In the dCdronic l.1&JU.mtttaJ whicb It maIaUlucd by Ute Da.ok.
(b) Th'T.....~io." buuJ 011. P'....lbo"""o, lorm..d", ...k Co'd on wbl,h Ib, P'....d,od..~o. w"' b.... Iw hcu, ",,<dlut ond MOl"""
W,IJ so nolilied. l'Ic-allJJlbrWtiOns hUY nOI be wed with me MAC CleW.
r."" IIU
r'
-.
~ 1(1 I ii, . L'~I~U' M^CC~I..Jri"illl'Uc lu IIIC"'I,wC:liunhUb.:tIlQna:llaJll.~tuiu'IU.Q"lIlhC lime O(.IIICTIIl~tlioll. MClcblflll.ld 1t.Cc.iy,.J
...........- . .. .m.." '''''''' .1 ",<I, a"",II>1;.. 'b...,b lb. "O:I,."i. I."",..,. i. wrill., .r .'h.twu.. . .
I~) Th, lI.nk C... ,'.. "pl,,~ p,l.r I. 'b. ~>I, .111.. T.......Il.. .,.,1.. "',. .IT......"i.. w... p.I., I. ",,~..I.. ~"..ir '.Y. In~i",oJ ..,h. D..k
Cud Of M^C Cud. . .
Ct) 11.c ulo drafl docs nOI COllt.:lin tile tia:n.llu,c I'",llppeln in lhcAuthor;uJ SitlWl'lUt (\'Inel olthc Uank Can/. .
10 Th, ...1" ~..//.. . D..k Cu. T.......Il.. . .""." by II.. .u~hol~er" Ih. .Ioo'r.... .'''ool'...,~... ",,,.,,,. ".. ....Iud 1.1.,00"',,
indiatcd in rUIII'ph 04 elJ he,cur. I .
Irl n" "'''..nl." ....,i"., I". MAC Cu. T......"I......." ;oc'''', ,b. P.""." Id..,;n..,I.. N.oob.. IP'N).r'h, MAC c..'~hol~er 'hk'
I'IN i~""'""..d 'n,"" our'" MAC C~'~I..'der. ,.r ".. MAC a"d ...:.. d..:,. ",01."," '" II" "'",,,,'.er, 01'10. .,,,,..,,1. ".",..i'o'.~ Do
cOlluin the tequired.informalton indialcd in J'arar:upb .. el) hClcor.:,
I") Th. ...,,, ."" "p'""", T....,,,'.... w'll,b Oo.k b.. '""i,,~. ..mpbln'I,.m.r.n "'10.'101. .u~bo'~er ,,,,,..,.., II"" b '" ,",...1,.
dupUIt bc:,wecn Melthlnl Ind the CUdholdcr. . .
(I) Th. ...,,, ...1, h.lo lb. Inlo.m.ll.n '''l.I... b, P"',..pl, 2 h,,,.r ...b, 'u~ho'.er m.k". .ri".. ..~'phl" I. O..k II.., U""'~ho'~er .i...
,".h ollUlllonu IlIe Tuns.tction. .
UJ Th.,.., "'olla.r ....".d.I....I..y kln..h." "b'l. I'''r.'''ya'~ho'~er .,.,.., M"'h... II,,, 00"'" ""n" In ~d."" 01.. "'0'"
tnrOlCt f"11mtnl Irainsl such caldllClldcI In I TI.1lU.1ct.Ion. .
(k) n, ..I" ~..h "1""""' '''....''Ion 'ha' "'01 m.d,,, or by. "'",I..I.'h" II..n 'h. M"clu., "00" I, 'b.......m..,
II.., 01 'h, I.",.,., ".~IIi... occu,. O..k .1..11 nOl'" .bli,.,,,,o '''''p'u.l... dul'., '" "0:'10.".'''",0011", 10,.,,,'''1' Of ""00'''. II...,
I.., P,,';o.<ly "''" ""'P".. Mer.h..,.,,,,, II.., D..k oo.y d...., b..k 'h. .."u.,.h..h .." by.. '.jw'm.."..., "',Ii,~" M"".... 0',
d.arlc 10 MetCbanl's ICCOunt at llank.
9. 1l"."'l'oIC,,~.. M...h.., wlll...IU....,.~.rlIl.'......bl,..d....<ub'y,"""...~""I.any O..k c....dor MAC C".rorwhldo M"do..
"",I,,, n"m..,I.. .'''.'''"'''.n''''''~''.'.lb'h or....'.nciti.,. l:.ch .''''''m.y be.,,,. (~""',oolally'I....,b '10"""""'1'1).. I."",,,.
b, Oank'. '''",ori...'I., "'.." "'''' mco...., (m) by '""., .. '.y ","",II.. ...~ 'b'. ""riet.. ,,,.,.,., ...011.. bU""ln. ",nJ,,,, II" M",...
.1.,,,.,,,, ,.h '......."'. ",,.,. ''''''ct. a,d "'hi.', I'bu,.......bl, ,lOun",. "'Ii,,,. ..un'"I.I. I".~ul,.,,, "."..
10. lJ",i.,,,.,,... A.,h.d.d U", .1 C.,,1. M...h..'.,.... .., .. b."".. "'''p' ,I.. O..k Cu~., MAC Co.. i. ",ym... r" '.y k,., "NI",.
"pc,"" ...In, .U! oI.r ",..'" ,. (I) 'h. .'1.....1 any er'm. .'1.., 110... !r.m. ,;.,.,1.", (IQ..y d."""I,,"""" ","" Who'Clod. 'ONlca.
copc.", ." I,,,,,,,,,w,. . pcnon wh"" ..."" .., ..,bouc~ .. II.. nank c...d or MAC Cud 0' (m) ..yln.bu""y, '1UO'''"y. "'00""00;"
composition or otller PIOC(C(fin, alfCC:lin, ~,dholdc:r'l aCLlilol1.
II. MClclllnl" Com!llillnce wltll Mlsct:llIIICCIlU RtqWremenll. Mt:ld1.1nl will:
(a) Use such 10lUu and equipment. inehdinl but not JimIUd 10 electronic tcrmma'" &s Dink mly provide or Ipprove,
Ib) ObocN' ... ..mp'y wllb .ppli..b', .po..ti., i"""'';''...nd ",.,.ti... prom.I...", by n..k" "b.twb. .ppli..bl.,. M.""... .
I':, """N"" ,.."'.. "'''.'nl''''''''''.''I= .". ""i,I."",.. "."d,", b, 1'...,..,10 (4).1''''';'''nd pcm'I'Oo"k '.''',"I,,,..~ ,,,lIy...m,.. ..'
ttaSOnlblc:lime. . .
Cd) r:.U:CUIC Ind liIe such statements and nOliccs u D.ank tn.IYltquCSllo pltsetYe 01 plolClCt lu Intelest hercunder.
(" Enml.. 0' 01'0", or 000" D..k C..~., MAC Cu.....'I"r..'u,.. i."..i". I''''.''''~'''ir...,o. Numbo.. Ir 'Pl'""bl, 10<10" "''''P''''./
Ilnnuclion. .
IL C..nd""i.".,. 11.. M".h... ,10.11 ... wi"'..'Ih, "'.bohi,,~ ",uen. ..,~ ,.,....... p..,I...., ..ch.... n..k Co,. nombe... MAC c.."
""",I., Inr."".,Iu. In ,... 1.'00 .Ii..p,;.... "'''''Ip<, ...lIln, '''II, """,j.ur..' ,ol", or "y.'berm"l. .b..i... b, '.......1. n..k Co,d., MAC
Cu~ run"'''ln. '."y ","~ P'"l'."..r "".'.'h. M''''''.''u...'I.''h. PUlJlOlCoI"'''tin. II.. M,,"..., 1';0 Jnui"....,. III Oo,k,,, ",. ,,,pocti,,
Dank Cud Auaci.lllion, tile MON~Y ACCESS Snit Vice- 01 pUDunlll) a aoYemnl~1I1cqUC::SL
'3. Appll..llan ,..",'ICII'... n" ",..,I..., ,,"'.,... ".. h.k or 1ts..",.pond"".'nocs'IC>I"h. b"k.,...d". PC'''''''' ""'" """I)'o( "Y.'
III ollhe princip.llb wocialed widl Iawinc:u.
,t Err.."" O,'olT.",,;..lian. no. A,.",..", ,10.11 bo:om, elId" wl..n 'I.... by 00'" ","1" ..d .,.." "main In lun (.ll'''~ ell", u,,"l
"'OlIn.... b, ,1'10" pol"" p,.,i.", below. Eilhu "'''1 ber... "'1 II..,In." "''' A.".....,.,..y ti... by w,l"en ..,,'" t. "'. o'her ,. bo:o..,
.no:'i"on 'h. ",,,.pocin<d i."ch no'i..: h.w,,", ....'.nnln..'.. do,. d"II.., bopri., ,....w" lb. "nol."'" noti.." ,.,... All .101;""0," 0'
Metchalll incuned 01 e.lutin, Undtr thla ^,rc:e.rnent.. at IJrIl clTeclive dale ot It:lmiaat.lon JJl.ld .surviYI .sucb lctminal1on.
1$. ApI'II"""",..d '''''''''''''' Tho p.o,bi... ., 'hb A,'..m.., ,'..Ill. opo..ti.. lor"d 'Ppllabl, .. D.nk c...... W... und" "" Vi.. C..~
r.o,um 0"", hI..,,,c..,. p"...., Of Ilo'h .....,.. wu" ..~'''b'MACc..'d p,o...m,.. hi....."'.. I"nJc/,OI'" 'ndl"'aI .b..'d,,,...I.,,..~
theconle-lI'tqui,CS,
16. "O<Im..II.n ,. Ad. Cu.~ P'.m ".n.. '.'1... Oonk mar n.tily M"d."" ,b" .~dI"oo.J ""I' ..ll'" u.."..~ '."",i.",en, ,,""., ~.bl,..,..
m.y bo '''''pl.. .,,10, M,,"...,.. T.nol..,(.).. I"yme.. ("T"......... I~A<ldilJ...1 Co,,,.~ All ,".oW... .llb. A,".m.., 'pp'y;n, ,III,,, I.
D..k Cu"'.r MAC Co,.. "..II '" .ppllabl.,. T......ti... ",.due"" win, "y..chAddl';...' c..,lIs. Th.llo.t ,hall n.tily M"""ntl. wrill.,.1
'"y ,\~.i,I.".. Co,.. '10" m.ybe '''''pl"', "....b" ..", a"'''boll "'''',",d~:d.. .,Iddl,;o..' O,.k c..,...., ',I.~;"..., MACc..,..' ".II..r...
"'" '''".", I'...NI... ''''''''.'b. Ad~ili..., Co,lIs. Ao:cp"n", by ,b.Merclu...Ia. AII.I,i..., Co.d.. ",yoo... I." Tu...dion .n" Oo.k h..
".'I,!."h.., .pproP!;... .....'b.II....,;"'. Merch..,'. ",0:""",. ''''P' Add;,i..., Co.", u.d" ,,,. "IOu.1 d,. A.".m....nd ",. r... at
charlCS .elaling to till: Addilional Caltb.
17. Modm"".,,;., Am..~."".. 6"", Th.. T. A.~ CII"" n.. O..k 00':, mod'I,.r 'm..~ ,I'b A....m.., lor II" pur_ .r..mp"i., "':'h 'h,
tol.. ... .pc,..i.. ,,'u,..,... .r '.y n..k Cud A"oclll'... ,b. MONoY ACCESS SEll VICo'. ., 110, n..k I. p,o,'.ln. lb" .....'" by w,;",.
no,IG..,I.. to M".h.., n. '''' 'h.. "n ('0) llay, pri., ,. 'h. ,n""" "",.1 '"y ,..h ...,.dm... N. .,,,,, ..O<Iln..'i.n ., .....~m.., or any
P'.".;...I ,"I. A"",m,", (""p' '" P,",Wod in P'",rapA U Am.l) ,hall be ~"m" c1T"'i,, onl... 'n wri"". ..~ ,I..... b, 'h, ",iii.. hmID
Jltednr 10 be lJound lllereby. Tlli.s Arrc.cnlenllupcrsedes Iny previollS Mc:rcJ'lanl ^rfcen.enll.lc::lwecu Bank Ind Muclnnl
IC. CO'''''''''on.r A,,,,,,,,,,,. n,;, Ai''''''''''I,,'' be bIn"., ,po.... ..,11 I.." ,. '10, "'..n, .1 II.. p."I" bm,.."",. ,,,,,,,,I,, ""n. PC""""
"I"",."'i.". "=n..~ w',","~ .h.II bc ,.".... by.nd "10'"'' I. ,""....'" wll'''h, I... ol'h. S"".I !..~.nllllY.l.n~t'........
Wil....'b,~""'."'i..I,,,"'JI"b .~...~~.:~....~........................ "y.I l~~.~........................................................ '9 .~?........,
ACCEPTED AS OF Tllo AnOvo DATE:
,Drit:ish Net:work. LTD
- - --. ---'''''--
~ I"...., COW",) )
\11 ... .
~l \ , (AlllAoNaIl it :&III" Tilll)
,. .
OrrstoWQ Dank
.(
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Oy'
f"cI.J,....)
~...
'-..--- .
.:.-.'.::>
SCHEDULE TO TIlE nANK MEIlCHANT ACREEMENT "On
British'Net:work. LID
fNllllfolMudu.lOl)
2 05 .
I. "mh... 01..0... ,..... Th, "".,,,", 010",., R." lor V,.. """CI'O", 10 ........:................. ,.. Th. "mh.., 0'"..", R", ,,,
MJ.lIetCutl lunnellonl '1....2...0.5............... ". The Manlll!' MruhJnf ,sel'vlrc Fcc II ......O"D.O.............. . nIC.C dl.caunt ra\u Intl
IUy/te {te He' luhJeCllo pcrlmJle leylcw :lncl at/JulInlenl by !Jank.
2. MACCu~ Ol'ooonl n.,.. n.. MAC CII. Ol"".nl n". I. .......ll/A.................. ~,n,i. .'""on, "I.. "bj",' I. ,.riod;,,,,I,. ,"d
.djwlm'", by n..k. . .
J. A.II,.,"'"." C..,... n"A"'''.riulloo c.."rm'Ybe,oachcd241,.un."'y. 1r1o.lcI,ph.....mbc.. ............................................... .
nlU number mi.' be chanled al anJlime by wrillttl notice Irom Dank.
.. CW'.m".s.N,..N";"'r. Th'Cw'.m"s."''''N.m'''""y''',oad''''2. "."..llay. Th"c1'P"...nombc,,, ................................. .
Thi.s number "I.1Y be ch.snl:ec1 I' .ny lime by wrillen nolice (,Ohl Dank.
..
...................
653047005 - 232597B"---
CERTIFICATE OF INCORPORAnON
of
BRITISH NElWORK LTD.
FIRST. The name of the Corporation Is BRITISH NETWORIC LTD.
SECOND. Us registered ob in the $tatf 01 Delaware is 10 b" Iccaled 811050 S. State $tree!,
in the ClIyof Dover, Counly of Ke,.. The Reglslellld Agent In charge thereof is CorpAmerica, Inc., 1050
S. State Street, Dover, Delaware 19901.
THIRD. The purpose of the corporation Is 10 engage In an~'lawfuf act or acllvly for which
00Ip0rat1ons may be organized under the Gann CoIporation Law of Delaware.
FOURTH. The lolal number of shares of slOCk which Ihls corporslion Is authorized 10 Issue is
AlIeen Hundred (1,500) Shares at No ParVaJue.
FIFTH. The name and maJling address 01 the Incorporator is as to/Iowa:
ROb8ll S. McKown
COlJlAmerica. lno.
1050 S. State Str8et'
Dover. DeIawant 19901
SIXTH. The BoaId of DllIlCtora ehall havelhe power 10 edOPl, ameoo or repeal the by-Iawe.
SEVENTH. No director shall be personally liable I.p lhe Corpomion or lis SIOCkf1oIdets for
monel8/)' damages for any breach of fJduclary dI1y by such director as a 1~llIlCtor. Notwfthstandlng the
forego/ng sentence. a director ehall be liable to the extant provldad by appHcable law, (i) lor breach ofthe
dil'8Clor's duly of loyally 10 the CoIporation or lis s1ockho1dera, (ii) lot aels ,)( omissions noli;' good fafth
of law, (nQ PUrsUanllo Section 174 ofthe Delaware General Corporalion Law or (Iv) lor any transaellon
from which the diraclor derived an Improper pel8Oll8l benerd. No amendment to or repeal of this Article
Seventhshaft apply fOor have any eflectonthe tiabllily oral/eged tiabHlly ofanYdirectoroflhe Corporation
for or with respect to any acts or omissions 01 such dilllCtor occurring prior 10 such amendment
I, THE UNDERSIGNED, for Ihe purpose 01 tlrming a COIpOI'aJlon under the laws of Ihe State of
Delaware, do make, file and record Ihls Certlflcate, aOO cIoC01l11y lhatlhe facia herein slatad are lrue. and
I have accordingly hereunto SeI my handlhls lSlh day 0/ February, 1993.
k. J ;t S~
~l,'l1COlporator
. . ";;?ii1e~f
. "',h~icfOmrn I~ljmher "... .,~,ld.}a;~~/'
. ':' - '. '..' :::Y!~:!;';i~'
"~m~W^"'"
"rr.~;r,j' , '};1~'" ::;"
'/f\~~:-:'_~j~&}j!i.:::: ".
AmT.!! "II.J'", 1rl
- - , YCr-.lIf J1 t):":11:
fiJ')dWi/J::hffo'V .Clr/rt1tlnIM:"',eGh.:.....,:LL." :.-:,.':::.~
. ,
.
-~.._--_."---
APPLICATiON FOR.CERlll'iCATE-Of-.AUIHOFftY
nSCkI5...j1 ;-41/, 124 IRev 901
~
lilekate fype of (\"1 )O(o"ffor. (Ch.3-CK cine):
.x Foreign 9usj,'j,,:;~ ::o(~orot;on {15 PO.c.s. 9 41241
.-_.--- Foreign Non, ',,;; Corp-orctron (15 PO.C S 96124)
In r::(lrr.phGl~
Nil~j tile req, ".'crrlcn:s of Ihe op~),iCCib.C} p:ov:s;':-m<; of i5 Pa.CS
'~'.Ij;-)n~) )i';f':' u:,(1.:::r:,'gncd r:t:l..i(')clfJ!ion he;';,!)', ';:'r:.:fi7:~~ thof;
lefing to corporati..~,n~ ("'We
e_ '.,""',V;-:'t.'.3,:~ir:~.::,
Till') ;;ome of'
''''porc:iCI1 is: ___~ "-.Ltl.:.:;j2__<UiC..:l'. \.,(u..l~._f",.tJ___
-- --_.-. ...---...----.--.-....
.--..---,.-...--..-.-.-----~-~.- -_._---.-- -..--- .. .._-_.__.~_R.___~_,_.
----.---.-----------....--.... .---.----..
2. rho nome Nh '0 ce''P')'olion oclopt, 10' U,", in :1,;, Comn.)n',v0o'!l1 ;5 (corr.plele only """'nlhe COTPO!O!!on rllIJsI adopt
o corporate des!,~. J:cr for U!;e in Pennsylyonio):
--.-----.-..-.--.---------.---..---
---_. ~--"-'------,- -, ---------.-.-.--....-..
" (if ih. nam" , ; ,c'th ih pcr,::g.,oph 1 0; 2 i, noi availab!e lor ".0 i~ tn:, Ce'mmonweollh. COl)" 'ale ih., ;Or'owing):
rL;: ;';c;;it;vV5:' ';' ','/1..,):.1'1 ffjC cor;")ciofion crJor:is {or ,xc in !;r.u;:c.cri,',!'::f businGs!. in jh,~ CO,tl l)nY:~~-;JI::l .~.
----- _..._-~-- --------.--------------.--..--- ...---.'---.--.----- --'---'--
;"'0 '~G;;>):J: ',:,c:1 c., bu::iriOSS in P0nn~/lvonio only ulckr ~;)dl fictitious nom" pu;suor:' I Ih8 oHG~",o",: 'e'.",...;".;;:
~h: LV:"C;j Of ~':'Icr~ under Ihe cpp!:cob:e provisions cf 15 Pc.C.S. {relating fo -::orporctk'w," 'Jnd I/nir"::oi',)':':'<:,:C:'l
G:'?':;'-::-.I(dl,:'OS; i H;€ (;jjochec: form '-"SC3:54.311 IA~)pJcQliol~ for Regi,)~roHon of ficliHov. j, .me).
,f. n~,(, n(m~~~ j
".I) 'c. / '
"'-:$~f:: :,(,n un..:jo! Ih~~ 10\\-'3 of vvhicfol !lw <::Cf;-..... :It!cm IS incorporotod is:
\'.I~a__.._:e-..._______.....
----.-------..--...---,.,-------.
-'-'---,,-~.._-
-::Jdii2:::i
~i'" ..~i;')(-,I ':'::';;;CI]' undo; [he ;~;w~ of lr.o ;I..'rj~.j:c :i.jr, ;n V.TJ;C() ir !5 i;;COr,JOin;I; ,I:;:
- j-i..' ~/~.J.;,..._ .)....1:: .cl:"--f-. ..~. _ .._n..~~~?,_"", (:
\) C;;y
'-~~ / ~7.__ +,_._..___ _ _ ,....C!/t__
SIOj._-~
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", ':-:-:;,'.<:'Icl,:,n':, l.iri./G(;scd :CU:_JI'."iC'.:1 f)[:J'.': 'n :1':;) Coml/"G;-rV,CUif.'i or I;) 'I(,!r(.~ C.f.h ':. :;:'n;'ilc/C' ",
;: ."J,: '::!: C;,iC; Jr,'? ~:::;Llr,!y GI' Vt:'n..'(~ 's:
.n
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. ;,_R,;J€.:
('. t- ;'f,.:. A . </ "~~.<!~-i. C(l'
:'~;-0~~ ~-\) ,-.- _!~- - .'-'1.:::'/
J.'Ji..!';'h_' /_7d'_._...ILQ. r..,
'':,~O;r? z;;-
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,'. /J.
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eel)]':';'
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-"-...~ ..-.- -----._ _____.n
.~.,-):.'; !l"
pA OEPT OF 51A'tE .
,., '. .; i... ,..,01,/ :'i,' 'i ~,I,(;!I t r, , " pr'(~ :hr;.- () ."t. ." ',"i:"";, r, ;,'
JUL 27 19:)9
'\\ D,F'T OF STATE
neT' ,- '(1.90
.... , l.} .1 ,j
.H~Jff:j 5.412~J6.124 (l \'Jv
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7. (9hcc:!t ono O'1thli> 1<"I()"',ng);
_:l:~'USir:~G c'Qrr--:.1, ,3t'lo:n): The cnipoi3'hon Is a corpOj~.tior1 i:",
pror.t.~jnd.df:nt(_{,(.> ;Hf:er'v',h~.,.
:Jr;;cI\\!ed fc" R PiJ:"iX;)SIl 0; ptJrpoSf.~II; d'llving pecuniary
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______(No-nprofH' COrf~('Ii'n~ion):- - Thec.'Orporatlon-is a C0ri)e'+H~>:m-in-"'XJ-fR---g:.Q-;).":(;Iof-::'oi-p.i,llf<Ot-..Q...Ol:..pUIp~_:..l!..i.1.o"1:.!OlWf-l~
P8cunialY pioli! ~.lr::dBntnl or otherwise,
;.f
, IN TESTIMONY V1i~:: . IF~F, the unde.~SIU~DOW:G'1 ;'l~g cn'l~O~~!~.'I" '.~\P;'..'jCaliOn fO'fll~!iiicate 1.'( "I ~I'(lior;iy io be
sogned by a duly aulholl.'''1 cH,cor !her~cf In Is . ~day of _.IJ1.l#_._ ..._..___' -r-T-'
./,--_..4_':1:./ w...:.: 1~.J:::..):l______ _.
(Narnp. of (>, ~ ! atj,,',cd
t'l't; .
(8Ig:'1I. ';i--h -----.....--..-....
TITLE:
-'-.'-- ----.--"----......,
- ~ ..,
OAASTOWN B/\N~
ORRSTOWN. PENNSYLVANIA 17.'244
Date 12/31/99
PRIMARY ACCOUNT
TAX ID
ENCL03UREG
.Y~
"0/
Page
108110
22-3218
. .-,------,.-:BRt'1':rS~ NETWORK LTD";':"
112 WEST HIGH STREET
CARLISLE PA 17013-2910
C H E C'K I N G A C C 0 U N T S
REGULAR BUSINESS ACCOUNT
ACCOUNT NDMBER
PREVIOUS BALANCE
12 DEPOSITS/CREDITS
61 CHECKS/DEBITS
SERVICE FEE
INTEREST PAID
CURRENT BALANCE
108110973
21,716.24
49,605.10
57,916.79
.00
.00
13,404.55
NOMBl!:R OF ENCLOSURES
Stat\:nnent Dates 12/01/99 thru 12/311
DAYS IN THE STATEMENT PERIOD
AVER1~GE LEDGER 15,514.
AVER.l~GE COLLECTED 15,343.
.
ACTIVITY IN DATE ORDER
DATE DESCRIPTION TRACE NO AMOUNT BALAN
12/01 CHECK 2299 0300809301 7.90- 21,708.
12/02 CHECK 2305 030068460 2,200.00- 19,508.
12/02 CHECK 2306 030068450 800.00- 18,708.
12/02 CHECK 23;1.0 030069400 262.73- 18,445.
12/02 CHECK 2313 030064050 242.16- 18,203.
12/03 DEPOSIT ceo PAYMENTECH 052215529 100.00 18,303.,
12/03 CHECK 2288 040092050 352.00- 17,951..
12/03 CHECK 2316 I 040091420 108.33- 17,843. :
12/03 CHECK 2319 040064270 65.00- 17,778.:
12/03 CHECK 2322 040113210 30.74- 17,747.:
12/06 DEPOSIT ceo PAYMENTECH 319254786 1,000.00 18,747.:
12/07 DEPOSIT ceo PAYMENTECH 380662750 500.00 19,247.:
12/07 CHECK 2326 030078260 285.00- 18,962.:
12/07 CHECK 2327 030109370 24.02- 18,938.~
12/07 CHECK 2315 010010170 12.39- 18,925.5
12/08 CHECK 2320 030114440 1,407.00- 17,518.9
12/08 CHECK . 2321 030093130 121.28- 17,397.6
12/08 CHECK 2337 010003300 100.10- 17,297.5
12/08 DEPOSIT ceo PAYMENTECH 790813686 164.00- 17,133.5
12/09 DEPOSIT ceo PAYMENTECH 006569776 229.00 17,362.5
12/09 CHECK 2328 239.27- 17,123.3
12/09 CHECK 2339 41.05- 17,082.2
12/09 CHECK 2340 36.20- 17,046.0
1? IOel r.1'fll!rw ?"l?q ~., t:A_ ,.., "1":1 A
ORRSTOWN BANK
MERCHANTAGRE:EMENT
TH'S MERCHANT AGREEMENT ("A",eemen'") is made .. ., Ih, d"e sa' lonh on Ihe ""no"" page ollhl. A....men. bY'nd b"ween 0"".... Bank (BANK). 'nd... unde",..", me"hac
("M"'chan'") .nd .. ""ieel'o .nd con"ngen' 'pon 'he ."""''", 01 Bank. WHEREAS. M"'chan' d,~". ,. hon... "Ih" 'oca.lon. .ell""h on Ap_dis A ., Ihl. 'o"'men'"","... debll "'.... "'''d. (,
"ca'd" .nd. <olleellvely 'h. "Co"'.") is.u'" by '" 'e"""", by .ny 01 'h. IoIIow... "'..nlzallons, Ma""".", Ihlemall....inc..Visau.SA.n~.l>ne..CIUblCarteBl.n.....Amencan......essc.mp.ny.
0,,,,.,,,,. 'ne" JCa. and e.'" 01 'h. .ddllloqa. ca'd '.sodaUon. '" nelwO<k. .dded he,e'o P'''''..'.. Appa... a he".o .. """u...,.. ""lie. '",eemen. between Ih. Bank ."" Me""... (ea", 01 "
o'.'nlzallon.. . "C.'d Ass"".Uon" .nd .U of such "",.niulIlon.. 'he "Co", Ass"".,Ions").. con..e11on "Ih 'he sa" (,,."'. "C.", Sa~") of _.dise '" "Mce. 10 Ih. ""'- 01 "Ch C.",.
("C''''hoIde".). ."" Bank desl'e. '0 .ccepl 110m M........, comple'ed Sale. ""'n. .nd Adju.lme.is of C"dll ""'.. (v''''din. "'" e'..._ 'IDn.m..sIon) "Ih '.$pecI1o ea", Sa'''inln'''''Ih''''.h 'he
C..d. 'ssued '" .eMe", by M."O<Ca'" 'n'.mallon., Inc. ..d Visa U.S.A. 'ne" 'nd. wilh '''ped .. Amellean E,,,",ss Compa.y. 'no" 1>"""",. 'ne" I>ne" C1ublCa.. BI..",. '.d JCa ".he. ,. P'O.d,
more limited services sel forth on Schedule 1 hereto;
The riles 10 Ihls A reemenl Intendin 10 be Ie aft bound a ee 10 !he followlno lerms and conditions:
1 General.
~erchanl agrees 10 honOl aU valid Cards properly presented by Cardholders 10 fad/llale
charges to Card aCCOUnts In paymenl for merchandise Of Services.
(b) CardhOlders shalr be enliUed 10 !he same services and return and adjuslment privileges
as Merchant extends 10 cash cus1orner5 and Merchant shan not i"lJOse any Special CDrldilions
(unless permllled by !he appllcabJe Card AssocJaUon) In connection with Card Sales.
(c) Merchanl shall promlnenlly display any ldenUficallon logo and any other JlrOmollonal
malerlal fumlshed by Bank 10 alert Cardholders thai Cards will be honored al Merchanl's places of
business.
(d) DlSPlAYOF SERVICE MARKS. The Merchant may use the marksoflhe Card
Associallons and/or Bank only 10 Indicale lhal Cards are accepted for paymenland Shall not state
that either endene any goods or services for the Merchanl. The Merchanl shall not refer 10 Ihe
Card Assocfations In Slallng eUglbll/ly for its products, SeMces or membership. The Merchanl's use
of marts of Ihe Card Assoclalions shall be QOVemed by the procedures oflhe applicable Card
AsSociations. Merchants may nol use the tTl8lks oIlhe Card AsSodalJons In any dJred mall
soUcftaUon withDUl prior SUbmiSsion Dlthe aff'ecled Card Association in accordance with III
procedures. The Merchant wil pl'DVide Ihe highest slllnd'ard of customer service and merchandise
quallly and not take any aelion Which would Cluse the name or marks of the Bank or any of the
Card AssoclaUons 10 be dispara~ed.
2. Card Sales.
- (a) The Cardholder's obliQation with respecllo each Card Sale shall be ellfdenced by a
properly compleled eIecIronIe lransmillal and/or fann provided or aPPt'DVed by Bank (each of such
electronk: lransmltlals together with such completed forms, a -Salel Draft-).
(b) excePi as otherwise provided herein, each Sales Draft shalf indude lhe following
infonnaUcn:
(i) Merchant name; (II) Merchanl number assigned by Banlc; (HI) Cardholder accounl number, ; (iv)
Card expIr'alion dale and vaUdal10n date; (v) dale of the lransaeUDiI and transaction aPP<<>>va'
nUmber; (vi) description of the merchandise soJd or servfces rendered; (viI) Cardholder's signature
(viII) arnounllo be billed on the Cardholder account; and (Ix) entry when required by the lerms 01
this Agreement or Cardholder's ~lldenUllcallon number rPIN'"). If applicable. Merchanl shag
nol require the Cardholder 10 supply P8fSOnallnfonnallon such as a home or business telephone
number, a home or business address or a driver's Kcense unless such infortnaUon Is specifically
required under lhe I'IJIes of the apPIlc8b1e C.rd Assodalion.
(c) Before CClnllfellng a credit Card Sale Merchanl shaD compare Ihe Cardholder's
signalure Ol'Ithe sties Draft 10 the signature panel on the Card 10 assure thallhey are the same. If
a discrepancy aPP8al'li, Merchanl shall conlad Bank for insfrudlons (see Section .. of Ihls
Agreemenl).
(d) Merchanl shalllndUde the Cardholder's obligaUon fO/' as gOOds and sSrvices PlJl'chased
in a single lransaction In !he total amounl (Including lax. if appropriate) shown on one Sales Draft,
unless part of the sale is paid In cash as desatbed In paragraph 2(e).
(e) Merchant shall nol accepl cash payments from a Cardholder with respect 10 any Sum
shown on a Sales draft. However, Card Sales lransactions may be paid parfly in cash and the
remainder charged or debUed 10 a Card accoun~ with only lhe IaU. amounl shown on lhe Sales
Draft.
(I) Merchant agrees thai each completed Sales Draft wiD evidence the Cardholder's valid
Card Sale obligalion In !he amounl shown and will nol involve any elemenl of Cl'edll for any olher
purpose.
(0)
(h)
Merchanl shall furnish a COpy 0( the completed Sales Draft 10 the CardhOlder.
Merchanl shall comply with Ihe followln~ TRANSACTION PROCEOIJRES:
(I) Determine In good fallh and 10 lhe besl of Its abillly, lhallhe Card Is valid on lis
face; If lhe Card is a Visa Card. the firsl four dl~lls of the embossed aCCOUnt number
are the same as Ihe four dlglls printed above the accounl number; lIIalltle Card bears
a lennlnalIon dale, that such dale t\as nol expired; and, if the Card bears en effecUve
dale, Ihallhe lransacl/on dale Is nol Prior 10 Ihe effective dale (When Ihe Card Is
embossed with an effective dale In a monlhlyear formal, the Card is consIdered to be
valid on Ihe firsl day oflhe monlh and year; when the card Is embossed' with an
effective day In a monlhldaylyear format. the Card' Is considered to be valid from !he
embossed dale);
(il) Complete al/ Card Sales Crans ;n accordance Wilh Ihe prescribed rules of lhe
Card Association;
CJH) Exam;ne one or more Card securily fealures prior to CDmpleling a Card Sale al
the request of the Bank;
(iv) Cause the Paper 10 be si~ned in lhe presence of the Merchanl or lis employees
and compare the signature on Ihe Paper to the signature on Ihe Card (Which s;gnalure
may, bul need not be, lhe name embossed or ptinled on such Card) to ascenain thai
lhey appear to be Ihe same. 11 such idenlificalfon is uncertain or If Ihe Merchant
quesUons lhe valldfiy of the card, the Merthanl musl oblaln a Voice AU!hOtizalion (see
lIem 4). if Merchanl uses an ereclronle prinler connected to a POS lermlnal. Ihe
Merchanl musl sllll oblaln lhe Cardholder's signalure on lhe prinled paper;
(v) Obtain an aulhorizalion as required by the A~reemenllhroUgh lhe POS terminal.
(VI) Deliver a !rue COpy or the Paper (fully Compleled in aCCordance Wllh Ihe
requlremenls of the A~reemenl) 10 lhe Cardholder at lhe lime of delivery of lhe goods
or performance oflhe services COvered lhereby; or, for transaclions Inllialed al poinl-c(_
lransacllon terminals. althe lime oflhe lransactlon;
(vII) Nol eslablish minimUm or maximum amounls for Card SaJes
honoring Cards;
(VIii) Make no extra or s~claI charge or rmance charge or IUrCharge or require an
l.petdal agreemenl. condillOl'l or security from the Cardhokfer in connecUon wllh any
Sale, (The Cardholdet shaH no( be required 10 pay the fees Which the Bank charges
Merchant hereunder. through any Increase in price or otherwise directly or lndirecuy);
(1I() Preserve all of i1s records rellUng 10 each Cartl Sale, inctudlng Ihe underlying
transaction forms, for a peliod of at least three (3))'ears (rom the dale of such Card
Slife. (see also paragraph 10);
(x) Use lis besl efforts 10 recover, by reasonable and peaceful means (and relaln II
required by the Bank): (1) If the Canlls a Visa card, any Card on which the pOnied fOI
dlUlts above !he embossed aCCOWll number do ~ malch!he hi four digits of the
accounl number; (2) any Card which the Bank or an)' Card Assoclalion has Sp&dfical/
reclUesled; Of (3) any card' Which !he Merchant has reasonable QI'Ounds 10 believe Is
counterfeit, fraudulenl or slolen (inducI1ng but noIl1nited 10, lhrough any nollce
procedures by any Card Associalions). The Merchanl she. promptly noUty the Bank if
Cant has been picked up and ask for further lnsltudions.
(xl) lNhen Card Sale Is nol evidenced by. property CClrrlJIeled electronic llansmlllal.
lmp1ntlegiblyon the Paper !he embossed data tom the Card and from the merChant
plall' on the Imprinler. If a Card Is presented bullhe Cant Sale Is cornpleled Withoul a
Card imprint, the Merchanl musl note teglbly on /he Paper Il.IflIclenl delallto Identify thl
Carc1holder, Including Its aCCClUnt number, the Men:tlanl and lis toealion and the name c
IradEl slyle o(!he lssuer as well as !he Inlerbank number and lIIe Inlertlank inlUals (If
applil:&b1e), the expkaDon dale (or, In the case of. Card bearing a dual dale, bolh
ell'ecl~lve dala and the expiraUon date), and any other embossed data such as seCUrity
Iymbols. in any case in which a Card Sale Is ccmpIeled WIth an ~red Card, Whether
Imprlnled or nol, the Men::hant shal be deemed 10 W8lT8nl!he !rue Idenuty of the
Cardholder as the aUlhorized holdl!ll' 01111. Card. unI_llhq Obtained Independenl
eVIdence 0( the Cardhofder's true Jdenlfty and has nolecl SUCh II\Ifdence on lhe Paper.
(I) The Merchanl aha. MOl effect a Card Sala where only a P8It of !he amounl due Is
included on. single Paper except when the balance of lhe amounl due Is paid by the Cardholder at
the time of sale In l:ash, by chect. or both.
(/) ShouIci Merchanllransact deb" Card Sales as permllted' by IhIs Agreement, Merchant
sheU campJy with u'e provisions of Appendix B herelo.
~ Aulhorlzallon:,lnslrucllons.
(a) Every Card Sale musl be authorized as dlreded by the Bank rAulhortzallon"). V<lhen
Aulhorlzallan Is obtained, Merchant shalr legaly print or cause 10 be eIectronlcany pr/nled Ihe
aUlhorizaUon number on the Sales Crall Merchanl shall auetnpl, by ra&sonabIe and peaceful
means, 10 retain the Card Whie obtaining BUlhorfzalJan.
(bJ Mercl\an,1 underslandllhal an AuthortzaUon by the Bant for. Card Sale does nol
consllMe a guaranlel!! 0( paymen~ only available credit, and may be SubJed to dlspule or
chargebacJc.
(e) If,or any ,reason there Is cause 10 be SUSpicious 0( a Card Sale (lndUdjn~ a discrepancy
In !he signa lures on u',e Card' and on Ihe Sales Draft), Merchanl shaU telephone for AUlhonzauon,
slate to the aulhortzalion derf( -rhls Is. Code Ten" and Shall foII'ow lIt1ylnslrUctions received.
(d) Merchanl :ahaH nol permslthe use 01 two or more Sales Drafts In order 10 avoid the credil
Ilmll applicable 10 a Cardholder.
(e) Merchanl !;han COl'np/y with the fcUowlng AUTHORiZATION PROCEDURE.
(I) The method deslgnaled by the Bank as the manner In WhIch Merchant shall
always firsl seek AuthortzaUons Is refetred' 10 as the -Primary Authortzalion MelhOd",
Any other method of oblalnin~ an AulhortzaUon apPfOYed by Bank Is referred to as Ihe
-Secondary AUthorizallon MethOd". A -Voice Aulhortzaaon-Is a process by which
Men:hanllelephones a number provided by Bank and requests Authorization from an
operalor.
(II) In an1' of the following Instances, the Merchanl shall obtain an AuthOlization for a
Card Sale bll Voice Authorfzallon whether or not such methOd' is ils Primary
Authorizallorl Method.
(1) If the Card Is nol presenled orcannol be Imprfnled forwhalever reason or
Ihe lransadion form Is not signed by !he Cardholder.lf the Cardholder presenls
an Unsigned or expired Card; If the Can;! has been cancelled by any means, or
(2) Jf lhe lransacllon Involves suspicious or unusual drcumstances or (he
idenlifi(:atlon of lhe Cardholder or valldlly oIlhe Card Is uncertain; or
(3) Il'so Instructed by the response 10 a requesl prOCeSsed by the Primary
Au!hOrl.:~lion Melhod.
(iiI) Merchal,l shOuld only uUllze a Secondary Authorfzallon MelhOd Jf instructed 10 do
so by lhe Bank, or If the Primary Authorizalion MelhOd Is not Opetal;"g allha! lime. If the
Primary AUlhorizallon Method Js nol operaUng. Merchanl shall promplly so nolily Ihe
Bank.
(iv) The Mer':hant5halJ always allempt, by reasonable and peaceful means, 10 retain
lhe Card while llblainlng Aulhorlzation,
(v) If Mercha"l has reqUested a "Code Ten" AUlhOrlzaUon and if Authorizalion is
granled. Ihe Mel'Ctlanl shall nole lhe authotlzauon number on the lransaction form and
Prinllhereon the Cardholder's name. address. Card number and expiration dale. If
Aulhorizauon is dedined, Merchanl shan nol again seek 10 obtain an AulhOrizalion for
lhe applicable Cilrd Sale,
AulhOrizalions for debll Card Sales are sel forlh In Appendix B.
-----...,.-...,.... H..............."'"
- --'..~II.lCru or iItI1Ot. Ie on Card Sales.
. I'"' excep( as P8l'mlllecf m COI'lneclion with cerlCl'~ ....1 Card Sales. Merchant shan nol
ma.. .ny ca'h "'ond' '" poyme,,, '''' "'0m;; '" .dJu' " on C.rd S.'''' bul ",-" I''''.d
prepare on a form provided or apprOved by Bank (each ~~ _" prepared form an "Al1juslmenl d
C"dil "'all"). Th. Sa'" "'.a '''' .ny C.rd Sal. '''' whl"" n. "'U'd '" '''om will be accept.d by
M"""anl 10".1 b. cleady .nd ,on'PI",.",y ma'ked (Includln. on Ih. C.'dhold." 'OPy)., "r~.,
"".' "'"no 'elum" .'d mu"ln.II .'her "'P"" ""''Ply wi'h Ih. "Ou'"monl, ., Ih. .""licab~
Card AssOCialiOll (see also item 5(d) below.)
(d) E."" Adjo"m'n1 01 C"dll 0'.11 'h.1l I'clud. Ih. Inl""""lion "'I""h I, .nd ,h.II I, ..
.'h., '''P'''' al,o b. In a,eo'dan.. wilh Ih. '011_. ADJUSTMENTS OF CREDIT DRAFTS
PROCEDURES.
(i) The refund or adjustmenf indicated on lhe Adjustment of Credit Oran may nol
eXceed the origlnallransaclion amount Each Adjus1rnenl of Credil Oran shall contain
in legible form:
(1) Merchant name and address;
(2) lhe name and accOUnl number embosSed on Cardholder's Card
(3) Ihe dale of the credil represenled by the Adjustmenl of Credil Crall;
(4) a descripUon of lhe goods or services for which credil is being given;
(5) Ihe amounl of crectil for each lIem;
(6) applicable Iaxes. if any;
(7) lhe Inillals of lhe Persons Compleling and apprOving lhe Adjustmenl of
Credit Draft. and
(8) the Merchanl signalure
(Ii) Merchant shan give the Cardholder a true COPy of Ihe fUlly cOmpleted Adjustmenl
of Credit Oraft althe lime of the Adjuslmenl 01 Cred;1 Draa lransacllon. The Merd'lanl
shall presenl AdjuSlmenls 01 Cledlt Dralls 10 the Bank Within the same lime Jim/I In
Which Sales Drafts are handled. Upon receIpt 0' the Adjustments of Credil Drafts. Ihe
Bank wUI debll the Merchanl ACCounl for Ihe amount shown Ihereon and tranSmI"l the
AdjuSlrnenls of Credll Drafts for credlllo Ihe Cardholder by the issuer of the applicable
Card.
(iil) NOlwithslanding the foregoing. Ihe Merchanl may Umlllls acceplance of relumed
merchandise or eslablish a policy to make Price adjustments fOT any Card Sale.
Pl"OVlded thai proper diSclosure Is made and purchased goods OT senrlces are delivered
to the Cardholder at the lime the Card Sale takes place. Prape,. diSclosure by the
Merchant shall be delerrnined to have been given alltle time of the Card Sale II lhe
'Oll_g wont. .... '" ,,-, wOrd'ng ~. I.glbly pdnl.d on all """.. oI'h. Sa'" ""'"-
In lellers approxJmately 114 inch high and In close prOJdrnlly 10 the space provided for
the Cardholder's slgnalure or invoice being presented 10 Ihe Cardholder for sIgnature:
(1) NO REFUND -" Ihe Merchanl may not accepl merchandise in relurn or
exchange and may not issue a refund 10 a Cardholder;
(2) EXCHANGE ONLY. if Ihe Merchanl may only accepl merchandise In
immediate eXchange for similar merchandise 0( a price equal 10 Ihe amounl 01
!he Dl'iglna/ Card Sale:
(3) IN STORE CREDIT ONLY. if Ihe Merchant may accept merchandise In
relum and deliver to the Cardholder a credll for the value of Ihe merchandise
relurned which may be USed<wy at the Merchant.
(iv) The Merchanl may. If P8n'rVUed by aPPlicable law. Sllpulale special
circumstances agreed 10 by lhe Cardholder (e.g.. Iale dell\/ety. dellllely charges 01'
insurance charges) as lerms 01 the Card Sale. "spedaf drcumslances are agreed Ie
by the Cardholder, the wording 10 appear an the lransacllan form shan be any 5pec/af
lerms of the Card Sale. The Merchant shafJ not aCCept money from a Cardholder to
prepare and deposJl an AdjUSlmenl of Credll Draft for the PUrpOSe 01 effecting a deposU
10 the Cardholder's aCCOUnt with the ISSuer of Ihe applicable Card.
! M~nr. ACCOunt.
"pennllled by Bank In lis sola dJsc:reUon. Merchanl shall anange for an aCCOUnlto WhIch
,ulemaled deeMg hou" ,ACH") ""nsa_. may b. mad'.nd In .. 0"', ea... Men:hanlhaa
eslab'sh", 'nd shall malnlaln on. '" -. eomme""" d'mand d..... .ceoun~ WlIh Bank
(wh.lher one '" """" fhan one SUch ."""u.. "'" wh'lh" '" nol_,.d., ..... Ih. .M_anl~
Accoun,'). In Ord" 10 '.dlllal. ..ymenl oI.moun~ duo ''''''' lime 10 lime b.tween Men:ha".nd
Ba"". All a'dlls, dlaro" 'nd debll. In -"lion WlIh Cord Sal" h'''und" .ha. be mad. 10
Ihe Merchanl's Account. Should the Merchanl's Accounl be CCN'T!posed of more than ane
"""_I demand d'...II .CCOUnl wilh "'k. .ny "'.11 0/ so"" .CCOUn" may b. ",.dlled.
dIa,.... '" deblled in eonn'dlon wilh Card Sales 'nd olh" 'moun~ Owin. h."Und" " ..""
may d.lennln.1n I~ sole dl.",,"on; ""'~d.d 'hal M'n:hanl may d'''gna,. a """"la, '=Un'"
.eeoun" WlIh ....... 10 """" .mounl. 10 be "edll"'. dIa",d.. d'bI!", ''''''' lime ,. lime by
B.nk Ih COOn'dJon WlIh ""''''la, Ca'd Sa'''.nd Ih. "nk may "'cI (bu( I. ,0/ required 10 "ed)
10 comply With such deslgnallon.
! Presentallon and Acce lance of Sales Drafts and Ad.us1ments.
(.) Men:hanl .hall ......n'lo 'h. B.nk '" 'ha' PIO~d. ,'" Ih. "'e1'o,,, t"""""lon I.
Ih. B."" 01 Ih. ."nk 01 COPY" 0'.11 Sal.. Draa, .. AdjUsf"",nl. 0/ Cnodll ""''' h'''und" In.
manne, .CC'Plabl. 10 "nk. If Bank .ha. "ed. a Ihlrd pady may be ulruzed ,.. 'u'" lran""""oo.
In,,,,,,,,,,on ,. b. ""n"'"ed .hall Indud. bu, n.t b. llmil'd I. fhal '_,.d In Subs'dIc, 2(b) 0/
Ih', M'IOh.n, Ag"..,.nland M'rehanl a..." 1.lndud. any .ddlOon.,lnr""""lion "ODeS'.d by
h. Bank. Ex"o/ wilh respect ,. del.y.d d.II""", ",,,. P""'lall., '" .,.e1<on', ""n",,,,on
'h.II no' b. mad. ""'" 10 """""n. Ih. """oe. '" d.llven,. Ih. men:ha'dl". M.lOhanl.h..
"'k.. flOOd 'allh "Od ,. .n.u" Ih., P""'lalloo '" "'d,on', ""'''''''00 10 Ih. Bank I, mad.
rilhln one b.n~ng bUsfn." day aller Ih,'ran..clloo date and und.ISland'.nd ....., fhat
""'lalion '" "sel'o,', ".n,m'''loo aa" 'u"" 'ime 'h.II b. ,ubj.e1 to 'uell In_"d r.es .nd
'''... as... .., ro"" by Ihl, Ag".m...; ,'" d.bll Ca'" Sales. ". ApPond~ B h".Io. Mer""anl
'" not exl'nd Ih. II"", or ..,.."... I", orexlend OI.dll ,., .nY..d 01. Card S.,.. M.lOhan'
""'an" and wanan~ Ihal "'h Sal.. Ora' and Adj"lmonl 0' C"dll D"a P""".d 10 B'nk 0'
' "'cI,onl, lran.m'",on Ih".o'" 'Po/'''''bl.. .h.II '~d.noe a flu. "'.'d o"h. C'rd Sol.
nsaclion relJacted thereon.
AU Sales Drans and Adjustments of Credil Orafts presented by Merchanls who do nol
'Ide ""'<on', lran.ml,".' ., '''dll Card Sal. d.,.. .hall be 'ncl...d I, an an"",ope logalh..
1 a deposlllransrnfUal or merchant summary card. Each deposU lranSmillal card shall be
'pl".d by Mer'h.nllo 'how Ih. "N., D'POsfl AmOU'1. 'Ihal ". Ih. lOla' .m.u" 01 Sales Drall.
the tolal amounl of AdJustmenls of Credit Drat/s.
(b) "nk .h.II p'."" COld Sal" ''''''''''"00 P"""'d 0' "'e1'O"",,"y "an,mllled I.
Bank by Merchant and shall promplly credil, debit or charge, as applicable. the deposiI
amounllo Merchanl's ACCount Wilhin a reaSonable lime atler the end o( each
calendar monlh Bank shalt calculate Ihe applicable amounl of fees and other charges
OWed by Merchanllo Bank and shall debit or Charge. as applicable, Merchant's ACCount
In the amounl of such fees and other
,.., ....,... .....,..., ......."....... .....r."'~....."',"...'"""'......"...t:'IIId1,y..<lIesura"or
Adjo"m'nI ., ""dll "'., .. ""'""'~ Iran"""""" .....eeI. ....leabl.. 'nd m.y. wilh,
''''I'''o'.'IOh.nl. dp." ~-ga '" "'''', (.. .""'0"""1.) M'lOhanl', Accoun"n Ih. 'O""p<
amount. 111 any oIlhr lng inslances:
(i) Th~ ~rchandlse is returned or services are rejected.
(II) The C'rdholder dl'I""" Ih. ""'. OU'''y. mn", '" deJ;""", 0' merdla'd'"
Ih. P.".""",,, '" ouallly 01""".., '."""d by Ih. Sa~, Orall '" any ..I .. '"
counlerctaim shan exisl in favor of Ihe Cardholder oItgalnsl Merchanllhal may be
asserled in defense of an aclion for paymenl.
(.) Any., "'Ih'""",,"on "0""" by Ih', A"'''man"o b'Ine'Oded on the S.,.
Oran or AdJUS/tnen1 of Credil Oran is laCking or illegible.
(iv) The Card Sale was Completed withOUl Plior Authorizalion,
,:.) Th. SaI" ""'a '" Adju,'m.nl 01 C'ed" ""'"I, .II...d 10 h." been drawn 0
!;igned improper/V.
(~) Th. Sal" ""'a '" Adj"I""", 01 "''''" ""', wa, """",,.,.d. ""..nl'd '"
noll'ed ""'onleally by M""'.nll' -""lanoe, eon.Ii'ullng. b"."" 0' any
a[lfeemenl. condillon. represenlalian. warranly or duty of Merchanl under lhls
AWeemenl.
(vii) Any exlensian of credil in connection With the Card Sale was in vlolalion o(
applicable law or lhe I'lJles or regulations of !he applicable Card Associalion,
(~") Th. COld u..d In ... Card Sal. had b.en ..'....d and ""'" to., ar Ih. II"",
Such Card Sale Merchanl had been so ncurled.
(I'J Th. C.rd U'ed r... Ca'd Sal. had ....'ed -'.,h. dal. ., '""" COld Sal.
Ihe Card YalidallOll dale was afler !he date of suCh Card Sale.
(,) Tha Cardholder ."h. Card u'ed Ih!h. Card Sal.. Ih. M""""... .ny P'Mner
'" '''''''holder in 'h. """"'ani. ., any .....,.. 'POU". '" 'mmed'al. 'amily m'mber,
anYolthern.
(") Th. "'''ed Card Sa~ wa, no' mad. wilh re._ I. Ih. sal. 01 flOOd, '" """,
by lhe Merchanl Submllllng SUCh Sales Drafts or Adjustmenl of Credit Draft.
(d) SanJl may reftJSe 10 aCCepl or may revoke lis acceptance 01 any Sales Draft or
Adju",_ 01 Sa.. ""'"- '" 'h. ........1' """""sIon 'h....,. appll""bIe. '''''ved by Ih. Ban'
on '" .'.ny lIme.a" lhe dale oI.ny oIlh"oIl"'ng d""""'d '''nls. .nd may wilh.ot pn", noll,
I. Men:ha.. """~". d.bI!. .. "''''" (., 'pP/I""b~) Men:han", Accounlln Ih. -"Pond',g 'mo"
(I) M'IOh.nl shall del.UIlin Ih. ..,..".." whan dos 01 any ob'galion 01 M'''''.nll'
Bank.
(II) Any mBlerfatadverse change In Merchant's rlflanclal COlldllions shall OCcur.
(iii) Any d_" .""""nl 0/ Men:han, WIIh"nk '" .ny 0/ M""'anl', P_dy I, Ih.
POSSession of Sank shall be Qamlshed or atlached.
(Iv) Merchanl shaD assign lis 855els generally for !he benem of aedltors.
M "_Ing .hall be eommen"" by '" 'galnsl M'lOhent onder 'ny b.nklUpley
1h.00ve"" '" "101/,,, law 'eeIdn. .n Order 10 adjudlc:a.. M'n:han, banlovp, '" 1n'01"..
orarr&n!(1emen!. nquldallon.~ OI"O!herretletWllhrespeCl to Merchanl or lis
debls, "'. '''king _Imon, 01. """"'.fIu"ee "'_" .lIldal r", M,,,,,,,,,, '" r",
any aub~:lanlJal P8J1 of JIs aUelI. Melt:han.t shall noUIY Sank In wrlUng Immediately UPOf
~18W11re thateny SUCh event has OCCUrred or Is likely Ie occur.
(.) Bank will "10m 10 Merc:hanl.. una<ceP'ed '" 'evoked Sal" ""'''. Adjusl"",,~ 01
C_I """" "'. ,'" a M'n:hanll""""'",ng "edronlea/ly. will noIIIy M'Id\an, """"Plly 0' .U
^-Is 01 ""'d' ""'... AddllJonally.""" Wln'd"". M_.n, 0/ '."" d.bII, """ro. ond
credll PfDCessecf 10 MlIrchanl'. Accounl.
(Q Men:han, "0_.. "nk 10 dIa... deblls ."Iog In _on WlIh Ih', A.""""",
"'In".ny """n due Men:hanl. wholh" '" nol so"" """roes .....,. _""'.. ",. d.bI! ba'an"In
Men:hanl'l _I. "'_nl..- Io..y""" ... fu' .moun,., ony so,,,, o""nI..a '" d.bll
balanee 01'10 ""'.nish ... M'n:hant _'in on amount ","",ani 10 POnn/'Ih. 'mou" .r Ih.
daarge 10 be made. as IlpPllcable. PfOmpIty upon requesl.
(g) MERCHAN'r EXPRESSLY ACKNoWlEDGES AND AGREES TO ANY CHARGE OR
DEBITS MADE BY THE BANK AGAINST MERCHANT"S ACCOUNT AS A RESULT OF THE
EXERciSE OF CHARG"BACK RIGHTS BY A CARDHOLDER OR ISSUING BANK DR OTHER
'NTERMEDlARy PURSllANTTO APPLICABlE OPERATING REGULATIONS OF ANy CARD
ASSocIATION AS THE SAME M'A Y SE IN EFFECT FROM TIME TO TIME.
(h) M_.n, rUll....._ "nk'Iid .",... fhal"nk shall ha"" Ih. M.ht 10 '"'..,d
" . '_I.d aceoun, "moun~ whl"" ...."".. --.. b. """""". .......".. Aceounl .hoold
.....nk "''''''''bly beN.ve fha'lh. Sa~. Dra.. '",,","ed by Merehan'... "udo'ent I, 'om.
".Ped........ "nk """1Inues I~ Ih"""galion 0/ '"'" '"'_'" Ira"". in soell c:a". Ih. "nk
'ha11 n.1Ify Ihe Merehant 01 Ih. ""pension ., SO"" .moun~ Wllhlh. "a'onable 'im.; ",o~d'd /h,'.
.."" sha' no/ .. "'lUI"" 10 """'d. 'u"" noli" If II has nollfl.d Ih. a..""","" law .nlor.."",",
agency of SUch SUSpeCled I'raud.
L limllaUorl' Claims and Collections.
(.) M......nl...... nol,. hon", '" .<cep'.ny C"'" in """"'" '''' any I..., """... "'0'
'""""" .d"n. ou( 0/ '" ,"'lal.d,o... d.r.ns. oI.ny..."", (oIher fhan . ....c ~O''''o'J, .ny
do""'llclOlallon. ma"erwh." """... '" "'P',,,,,.,, lumished. POrson who" n.m.1s nol
_ed on Ih. Card '" any ba'klUpIc:y. k"oI"",,,. """""""'". """"'''00 0' olher P'.'''d;'g
"-glhe """""" 01 ony Cardholder. Merehanl,urthor .g_ fhal n.lwJlhsl.ndlng the other
"""Islo" .'1hJs A.....menl. Merc:hanl may n., pre'ent I. "nk ,'" """"sing. d'"ct'y '" "dl",lIy
anY.PaiJU (Sales Drall. Adjustmenl of Credit Draft. any cash dlsbursemenl record, other
lran"",on ,,-. .,- '"""""""on '" '''''''' '" olh., obligallon '''lng from !h. u" 01.
COld. .nd bea""g Ih.,,,,,,,,,,, '.. olh" <aplOdUd'on oI.mo....d '" en<od", in,.""""on oblalned 00
'""" Card) whl"" was nol CIhg,'n."d., . re,uII 01 on.d b'''''''.n C.rdhold" 'nd M.rehanl.
(b) M.lOhanl.",... '" noll,y "'k """"""Y 0/.11 cI"ms .nd del.n... ....d.d 0' ."..'"
by any Cardholder with respect to any Card Sale SUbjeCllo this Agreement
(,) M'lOhan,.",... 0,., II w'" ""'.".mpl eoIIectlon oI.ny C.rd Sal. '"""""0' ''''pl.d
by "'k '" make .ny d.im ''''ling I. any,""" ''',sadJon, "'..pia, ,"lhod"d I, Wd",. by B.nk.
I, Ih. .""", 0' '""" .olh_li.",. M'IOh.nt ....., 10 h.,d.. eo'~dJo, Proc"d, I, In"t 10' Ih.
eard Issuer and 10 deliver the Sii1rne to Sank In kind immedlalely upon requesl.
!
Indemnllv Provisions.
I.) M.reha.. ......, I.'nd.mnlfy Bank 'ga"" and I. hO'd Bank h'mII." '10m .11 "alm"
Ilabllily and expense ariSing or resulling from (i) any dlspule between Merchanl and a
Cardholder with respl!cllo a Card Sale subJeclto /his Agreement, InclUding bul not
Iimlled 10. any such diSpute concerning lhe qualily, Iilness or delivery or merchandise Of
Ihe performance or qua lily or senrlces, (II) the failure 01 Merchanls to comply wilt; Ihe
provlslons of !his Agreement and applicable Jaws and regula lions (federa" slate.
municipal or olherwlse), as welt as Ihe rules and regulations or the applicable Card
Associalions. as such fules and regulallons may edst from lime 10 lime. including wilhout
limItation such disputes resulting from Ihe Merchant's failure 10 provlde iI Sales Orall
containing the informallon sel fOl'1h In Seerlon 2(b) of this Agreement. Merchanl further
agrees to indemnify Sal1k againsl and 10 hold Bank
- -. -'---~'1lI ...." .....Ii ana ex' 'S Of COunSef'Of Bank arising in
COMeIIton wilh enforcemenl or presl!fVallon 0' ngtlls und Agreement, including bul not
b~led 10 such eJ:penses as may be Incurred 'I1t"e COSlr of any Obligalions owing hereunder.
(c) Bank will sUPply Merchant Wllh Sa~s Draftt :slmenls of Credfl Drafts, deposit
Iransm/ttal or merchant sUnYnary forms, envelopes and al 'f other forms required by Bank on such
lerms as Bank and Merchant shan mulually agree upon from lime 10 lime. as well as appropriale
adver1ising and promolional malerial.
(d) The lease or PIJl'Chase of poinl.of.sale terminals or other equipmenl by lhe Merchant
from the Bank shall be the subjed of a separale agreement between the applicable par1ies.
! Records; Conlidenlialilv.
(a) Bank may examine and verily al any reasonable time and upon reasonable notice 10
Merchanl. all of Merchanl's records pet1alniAg 10 Card Sales accepted by Bank from Merchant
(b) Merchanl agrees 10 preserve eapies or all Sales Drans and Adjustments of CredlI Drafts
for at leasl the longer of (I) three years from lhe transaclion dates 01 sUchllems, (n) Such period 01
lime as may be required by the applicable Card Association and (W) such periOd of lime as may be
required by applicable law or Ihe rules or regulations 01 any govemmenlal agency. Federal. stale
Of municipal or otherwise, Merchanl hereby assumes allliabllily (including Ihe liability for any
resulting chargebacks) should II fall 10 so preserve Sales Drans and Adjuslments of Credll Drafts.
In addlUon, Merchanl agrees thai should Bank request from Merchant a copy of any Sales Draft or
AdJoslmenl of Credll Draft within Ihree years of lhe date or the transaction. Merc:hanl shaH de~ver
to the Bank. nollaler than live business days aner a requesl is made, a copy 01 any Sales Draft or
Adjuslment of Credit Draft requested by the Bank. If Merchant does not provide said copy wilhln
five days, Bank is aulhOlized to debit or charge Merchanl's Accounl for the amount of said Sales
Draft or AdJuslmenl of Credll Drllft,
ec) Wlthoul the apPlicable Cardholder's COnsent Merchant shall not sell, purchase, provide
or eXChange Card aCCOUnl name or number information in any form 10 any third party excepllo
Banlc, 10 Merchanl's agents for lis business PUrposes, 10 the Card AsSoclallons (with respect to
Card Sales ptlrSuantlo Ihe applicable Card AsSociation's Cards) or pursuanllo govemmenl
requesls.
~ CtedlllnQulries: FinanCIal Stalemenls
(a) Merchanl aulhor1zes Bank to make any credll inquhies Bank canstders necessary 10
accepl or 10 review Its aCCeptance 0' this Agreement Merchant also authorizes any person or
credit reporting agency to compile Informalion 10 anSWEll'" such c:redIllnqulries and 10 fumish such
informauon to Bank.
(b) Merchant agrees to provide 10 Bank financial stalements and olher finandallnformaUon
with respect 10 Merchanl, In Bpproprjate detau. on request by Bank from Ume to lime. Men:hanl
shaHfumlsh 10 Bank, when requesled, within 120 days anerthe end D'each fiscal)'ear 01 Men:hanl
B financlal statement 01 profd and Ioss'or such fiscal year and B balance sheel as of Ihe end 01
such fISCal year, In reasonable detail. Merchanlagrees thai Card Sales shaU be made only Wllh
resped 10 !he Merchanl's locaUons sel forth on the reverse side 0I1h1s agreemenl and/or on
........~A.
.!.!: Represenlations and Warranties of Merchant
(a) Merchant makes Ihe following representations and warranUes which shaD be !rue and
c:orreet on the dale hereor and all limes thereafter:
(I) AD informallon COIl!alned on the Merchanl appllcaUon or any other document
detfvered In c:onnec:tJon therewith or with lhls AQreemen.! Is lnJe and compIele end
Properly renects Ihe business, llnanclal condlllon, and principal P8r1nen1, owners, or
otJiceno of Ihe Merchant
(il) Merchant has the power to execute, deliver and perform this Agreement This
Agreement Is duly alJlhorlzed, and WIll not violate any proyfsions of law. or c:onlIJct wtlh
any other agreemenl to vmldl the Merchanlls subJect.
(in) Merchanl has all Ucensel, If any, required 10 CCIldud Jts business and Is qualified
10 do bUsiness In every jurisdJctIon where" Is required 10 do so,
(iV) There Is no ad/on, sufl or"pl'DCeeding allaw orin elqullynowpendJng or Ie the
knowle1:fge of the Merchanl threalened by 01' against or affecting Merchanl Which If
decided adversely to Merchanl waold impair the rfghI of Men:hanllo cany on lis
business substanllally liS now conducted or adversely affecllls finandaJ COndlUon or
oper:aUons.
(V) Merchanlls not now, nor shall II In !he fulure become, engaged or afflUaled with
any of the businesses. procfucts or methods 01 Selling whIc:h are set,orth below, The
following lypes of businesses, produds sold, or methods of selling represent !he
polenUat for eJ:cess/ve c:hargebacks and Inaeased IlIIbllity to the Proc::essIng InslHullon:
therefore, the follOWing are not acceptable:
(1.)TYPES OF BUSiNESS
(a}Apar1menl Houses,(b)8a1l Bond Servlcell. (C)BarslTavems, (dJCard
Rooms, (e)Check Cash Establishments, (f)CoIleclIon Agencies.
(g)COlTIpanlon or esCOrt Services, (hJEmpIoymenl Agencies, (I}Gamb1lng
Establishments. (l)lncome Tax Service. (k)lnsurance AQendes, (I).
lawyers/l..aw Firms Engaged In Banluuplcfes, (m)Massage Parlors, (n)
Resume Preparers, (O)Sexual EnCOtJnter, Firms. (P)Travet AgendestClubs,
(q)Professlonai Billing Services. (r)Qed1l Resloratlon/Repalr Agencies,
(2.) PRODUCTS
(a)Drug Paraphernalia, (b)lnveslmenIOpportunltles, (C)Lollerles or
Raffles, (d)Pawn Shops, (e)PomographlcJAdull Material. (I)Real Estale Sales,
(g) TIme Share Condo Sales
(3.) METHODS OF SELLING
(a) Door.lo-Door, (b)Fiea Markets, (C) Membership Type Bus/ness,
(d) Pyramid DislrlbuUonIMetric SaleslMulfi.Level Sales, (eJSaIes Generaled
from Non'Commercial Address (Out of Home), (I) Nelghbor1l00d Party.. Type
Sales, (h)Sales when a card Is nol Presented by Cardholder, Imprlnled and
Sales Craft Signed at Ihe Point of Purcnase, except as noted under
MaillPhone Orders.
(b) Each Presentment or any Sales Draft to the Bank shall conslilule the represenlaUon
and warranly of the Merchanl al/hal Ume lhal:
(I) The CardhOlder indebtedness represented thereby Is genuine and arises
from a bonalide Card Sale between the CardhOlder and the Merchanl In the total
amounl Slated;
(ii) The Merchant has performed or will perform an of Jts obligaUons 10
Cardholder In connection with the Card Sale evidenced lhereby;
(Iii) The Merchanlln effeclfng Ihe Card Sale, has COmpIled wllh and Ihe Card
Sale itself Complies wilh all applicable laws and regulalions (Federal, slale,
municipal or olherwise), as well as the rules or Ihe applicable Card AssociaUon;
(Iv) The Card Sale does nol Involve lhe use or a Card fot any purposes other
than the purchase of goods or services from the Merchanl and does no(
involve the Cardholder's Obtaining cash from Ihe Merchant (unless olherwise
agreed in Wriling wilh the Bank;
p1edge,a
pursuant
"""'"
Card.
"'lent or Other d1Sposllion of such Cardholder indebled-~~~;'~~~
terms or U-.Is Agreement and Ihere are no offsets. defenses
''Il5 or other rights in favor ollhe Cardholder with reGard 10 such '
indebledness which WOUld enlllle Ihe Cardholder to Withhold paym
12. ~lisceIIaoeous
- Ii) Upon a_"nee b, /lank . 'hi, A........" ",,' b. bind". upon and 'hall inu,
Ihe benefil 01 Metchanl, Bank and their respeclive heirs, personat represenlallves, successors
assigns, provided that Merchant may 001 aSSign Ihis Agreement wllhout !he express wlillen COr
ollhe BanIl. ThIs Aoreement supersedes any previous agreemenl between Merchanl and Bani
reSpeclIo Gard Sales.
(b) No modificalion. amendment or waiver 01 any of the Provisions of this Agreemen
shall be /)inj:fing unless In Wriling and signed by an aulhorlzed blink represenlallve. The Bank ~
amend or mOdify !hIs Agreement in order to comply wilh !he rules and regulalions 01 any Card
Association 01' lhe Bank by providing wrIllen notice 10 Merchant not less than 10 days prior 10 the
e"ectlve dat,! of any such modIflC8lion or amendment. In addition, Bank; tnIIy agree to amend or
otherwise rnlXllfy the lerms oIlhls Agreement and. in SUch case, notice 01 such amendment or
modllic:aUon [which may include modillcaUon of the fees sel 'orth in SChedule 1 herelo) shall be s
10 merchanl by Bank nolless than lhIr1y (30) days prior to lhe etledlve dale of Such notice or
modlrlcaUon. Such amendmenl or modificalion shall become effedive upon the dale sel forth in II
nolice unless Bank receives from Merchanl wrlllen notice !he Merchanr has elected to termlnale I
Aoreement belfOfe such effedlve dale.
(c) Upon lhe occurrence or any of the events set forth In clauses (I) through (v) of
Subsection 7M) 0' this AQreemenl. Bank: may immediately Ienn/nale lhls Agreement by prOviding
noUce thereof 10 lhe Merchant In addition, Merchant, or Bank may eaCh elecllo lerminate this
AQteemenj witf) or wlthoul cause upon nolless lhan Ihlrly (30) days prior wrtUen noUce 10 the othe
party 10 this agreement, such to sel forlh the etlecllve dale of such tennfnallon.
(d) All rlghts and Obi/gallons of the parlles exisUng under this Agreement allermlnation
sha!! IUMve such lennlnalion,
(e) This A;reementls made in and governed by the laws or Pennsylvania. To Ihe exte
'COl1lrc1ting, the laws of the Unlled Slates may also apply,
77 W. KING STREET
SHIPPENSBURG,)PA. . <57
T.~.(717D ~,7-nlla
_", BRITISH NETWORK LTD
112 W. HIGH STREET
CARLISLE, FA 17013
.
1ti717) 249-5990
Telephone
Merchant
By: X
TIlle:
BANK
By:
Date:
nUe:
Dele'
PERSONAL GUARAHTY: FOR VAlUE RECEIVED, the UI'Ider$lgned (hereinafter NIerred 10.. the -au.ranlor-) gtanlnteea unccndftIonaIy 10 Ormown Bank r~ PI)'ml!lnI at malurfty of any and an
Indebtedness obIIgsUans, whelher dlntd or IndJnlct. absolute or contingent. ptnary or aecandary, jD/nI or aeveraf. any Incr aD renewals, exIenIbIs. rutruc:Wrtng, contfntallona. consoIdalJons and Jncreas
lhereo( far whlch . corporallon (!he "DebIor-). II now or tweIlfler ~)' become liable or
Indebled to Bank, whether arising by contrae(. chargebllckl 01 ctedlI C8rd IIemI. notes. drafts. overdratIs. dIac:ot.m. 1nStll" IIw Dl" In eqWIy Dl" otherwise (tIerefraaIW caIedIveIy referred 10 8S the -Guarantee
"-.
In !he even( 01 dele"" by the Oebtar in the payment of performance 01.. or any parQon of Ihe Guamnfeed RhbIedneSll;, when such Gueranleed Indebtedness becomes due. IIfIfter by Its Ienns DI" as the
result oIlhe eKer'dse of any power 10 ac:ceIende. Gulrantor 1htI. on d8m8nd and wItIouI U1her notice 01 dishanar. PI)' the fuI amount dul!Ilhenton to 81r*:. Guerantar ~ wafves noOc:e 01 aecepfam
ollhll Guaranty ancl WIIIYeS.. other noIices In c:onnedJan herewIIh or In cannedIan wIIh 1M GuatanIeed Indllblednea. and further WIIives dIIIgenc:e, ptDHnfment, protest, and lUll an the part of Bank In It
coIedIon of any of the Guaranteed Indebledness. and agrees that BlInk IhIlI naI be I'IIqUhd hi 10 endeavor to cohd Irram the Detrtor any GulrwQed Indebtedness or 10 Jcnr:x.e. proceed 8Qalnsl, or
exhaust any CDIl8teraf or aecurfly for any Gua,.nleed Indebtedness (or 10 I'eptIIlHIn( any 1t8ml1hal1l1he IUbjed of a'I)' cMrgeback). before f8CtI*fng GcwMtar to PlY the fuI amount of the Ilablllly hereby
created. Sua may be brought and maintained against Guar8nlar 811he eIec:tian r:I Blnk wIIhouI jofnder of the Debtor or lany olber ptIIr1IJ:n. Ouanlnlat wi PIIY Bank r'8IlIClnlIbIe coItedfon and attorney
tees incurred In BlInk'. effort to aJllect !he Guaranteed Indebtedness from Debtor and frDm Guarantor. Demand henK.n:fer ah8II be deemed 10 "we been rr8de ""*' In person or maned POStage prepaId I
Gu8rantcx"sacldressaher8lnafterHlforth.
This Guantnty II · Continufng guaranty and. shaI cmUnue 10 applywtlhoul r8gIIrd 10 the form or Bmount ~ GuarwtIeed lndebtednesllhBllhe Debtcr (wUh or WIlhouI: noCIce 10 ~ may aeate, InClK,
renew, IIXtend or alt., In whole or In part. Guarantor's IIBbIUty hereund..... naI b1111f1eded by Bn)' urend<<, fIIIeue, exch.Inge or BIIeraIIan ~ BOy CGIIateraJ or HQIrfly ra any GulI'1II1Ieed Indebtednl!S!
or Boy....... settlement, ptymenl: (pMiB1 or In fun) or olh. Bgre<<nenI with !he Debtor CI' other ptnOn or enDIy IWthg 10 !he GuI....1eed Indebtednaa. The rIghtI ~ S8r* IheII not prec:lude c:oncurnnll
subsequent exercise ofany right or remedy. This Gulranty II performable far .. JUpClMIIn 0rrsI0wn, PA. and GuaranIc.. waives the rfghllo _ CI' be IUIId eIHwhn. TNI Guaranty Is not Intended to an
does no( repaca, cancel or oIhetwIse modIfy<< .rrect any other QUlnnIy rI Guamnlor held by Bank . NoIwIIhsIIIndIng an:, oCher pvIo'isIonI ~ IhII Gulmlly, Ba.... and Guanlnlor agrae !hat Guarantor wi
never be requk'ed to pay Inlereslln excess of the maximum Interesl rate permitted by 1Iw. Any conIrIId fat' InIeresl shall te SllbJed to reduction 10 the maxmum nlares!: rate allowed IM'Ider law,
Thla Guaranty shan be governed by end construed In accordance wfth the laws of the Conwnonwealth of Pennsylvania.
GuarantcrX
(SIgna....) (No TlUel
Ptfnled Name:
AND NOW, I, Michael T. Traxler, of ABOM &: KVTl1LAKIs, LLP, hereby
cenify that I did serve or cause to be served a true and correct copy of the foregoing
Defendants' Preliminary Objections by First Class U.S. Mail at the following:
CERTIFICATE OF SERVICE
~
David A. Baric, Esquire
O'BRIEN, BARIc AND SCHERER
17 West South Street
Carlisle, PA 17013
Respectfully submitted,
AllOM & KUTULAKlS, LLP
DATE 10 /6 fa '7
I /
~~Prz: J Q
Michael T. Traxler, Esquire I
36 S. Hanover Strett
Carlisle, PA 17013
(717) 249-0900
ill No. 90961
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ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
REPLY TO PRELIMINARY OBJl~CTIONS
NOW, comes Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC &
SCHERER, and files the within Reply to Preliminary Objections and, in support thereof, sets
forth the following:
1. Admitted.
2. Admitted.
3. Admitted.
4. Admitted.
5. Admitted.
6. Admitted.
7. Admitted.
8. Admitted.
9. Denied as stated.
To the contrary, Plaintifffailed to timely file a Reply to the
Preliminary Objections of Defendants. Counsel for Plaintiff requested an extension to file such a
Reply which request was denied by counsel for Defendants.
10. Admitted in part and denied in part. To the extent these averments include
conclusions of law, no response is required. It is admitted only that Plaintiff filed a voluntary
Praecipe to Discontinue without prejudice as is permitted by applicable Rules of Civil Procedure.
It is admitted that a copy of the Praecipe to Discontinue is attac;hed as Exhibit "C" to Defendants'
Preliminary Objections.
II. Admitted.
12. Admitted.
13. Admitted.
14. Denied. To the extent these averments constitute conclusions oflaw, no response
is required. To the extent a response may be required the averrtlents are denied. To the contrary,
upon information and belief Defendants have incurred no "costs" as that term is defined under
applicable Rules of Civil Procedure and decisions of appellate eourts of this Commonwealth.
Moreover, counsel for Plaintiff notified counsel for Defendants that the "costs" would be paid
provided those "costs" were as defined by Rule and applicable decisions. Counsel for
Defendants has requested payment of the sum of$6,823.00. Upon information and belief, that
sum includes attorney fees charged by counsel for Defendants including fees predating civil
litigation in this case and the related cases filed previously. COIillsel for Plaintiff requested a bill
of costs from counsel for Defendants and, to the date of this Reply has received no response.
Further, upon information and belief, Defendants have incurred no "costs" as defined by the
Rules of Civil Procedure and decisions of appellate courts of this Commonwealth.
I. FAILURE OF PLAINTIFF'S COMPLAINT TO CONFORM TO LAW OR RULE
OF COURT
15. Plaintiff incorporates its response to paragraph fourteen as though set forth at
length.
16. Denied. Upon information and belief, Defendants have incurred no costs.
Further, it is believed, and therefore averred, that Defendants have calculated this figure
incorporating their attorney fees which are not recoverable und,er applicable Rules of Civil
Procedure and decisions of appellate courts of this Commonwealth.
17. Plaintiff incorporates its response to paragraph fourteen as though set forth at
length.
WHEREFORE, Plaintiff requests that this Preliminary Objection be overruled and
Defendants be directed to Answer the Complaint. Alternatively, Plaintiff requests that
Defendants be directed to provide a bill of costs as "costs" are defined by applicable Rules of
Civil Procedure and decisions of the appellate courts of this COlfL111onwealth.
II. LEGAL SUFFICIENCY OF PLAINTIFF'S COMPLAINT (DEMURRER)
18. Plaintiff incorporates by reference its answers to paragraphs one through
seventeen as though set forth at length.
19. Denied. The complaint speaks for itself.
20. Admitted.
21. Admitted.
22. Denied. The complaint speaks for itself.
23. After reasonable investigation, Plaintiff is without knowledge or information
sufficient to form a belief as to the truth of this averment and it is, therefore, denied.
24. After reasonable investigation, Plaintiff is without knowledge or information
sufficient to form a belief as to the truth of this averment and it is, therefore, denied.
25. After reasonable investigation, Plaintiff is without knowledge or information
sufficient to form a belief as to the truth of this averment and it is, therefore, denied.
26. Admitted in part and denied in part. It is admitted only that the Defendants were
officers and directors of British Network Ltd. The remaining averments are denied. In particular,
whether the Defendants were acting in their positions as officers and directors of British Network
Ltd. "at all relevant times" is a factual issue to be determined in this litigation.
27. Denied. To the contrary, the Defendants executed the Signature Card Agreement
binding themselves as individuals. Whether Defendants acted appropriately at all times so as to
maintain the veil of the business known as British Network Ltd, is a matter of fact to be
determined in this litigation.
28. After reasonable investigation, Plaintiff is without knowledge or information
sufficient to form a belief as to the truth of this averment and it is, therefore, denied.
29. Denied. To the contrary, the Signature Card Agr,eement indicates the type of
account as "Personal".
30. Admitted in part and denied in part. It is admitted only that the Defendants
opened a separate account. Plaintiff does not know the reason for Defendants' opening of the
separate account.
31. Denied as stated. To the contrary, the Point of Sale Agreement was executed to
permit British Network Ltd. to immediately obtain the receipts generated by its customers using
credit cards with these receipts being placed into the checking ac,count referenced in the
complaint.
32. Denied. To the contrary, the Defendants signed as signatories for British Network
Ltd. and as individuals.
33. Admitted in part and denied in part. It is admitted only that Joseph Kloza
executed the document. The capacity in which Joseph Kloza executed that document is disputed
and, therefore, Plaintiff denies Defendants' characterization of the capacity in which he executed
the Point of Sale Agreement.
34. Denied. Plaintiff incorporates by reference its answer to paragraph 27 as though
set forth at length.
35. Denied. The Defendants are personally liable for the debt owed through the
Signature Card Agreement. Whether Defendants were presented with a different form of
Merchant Agreement which was never signed by Defendants is irrelevant to the determination of
the issues of this matter.
36. Plaintiff incorporates its answer to paragraph 35 as though set forth at length.
37. Denied. Plaintiff carmot determine what is meant by Defendants' reference to a
"personal guaranty". To the extent these averments relate to personal liability of the Defendants
for the debt owed, Defendants are directed to the terms of the Signature Card Agreement they
executed binding them as individuals to pay the debt.
38. Denied. To the contrary, the referenced citation is not applicable to the instant
matter.
39. Denied. To the contrary, the complaint sets forth facts establishing the personal
liability of the Defendants for the dan1ages demanded.
WHEREFORE, Plaintiff requests that the Preliminary ot~ection of Defendants be
overruled and the Defendants be directed to answer the complaint.
III. INSUFFICIENT SPECIFICITY OF PLAINTIFF'S COMPLAINT
40. Plaintiff incorporates its answers to paragraphs one through thirty-nine as though
set forth at length.
41. Denied. To the contrary, the complaint sets forth facts sufficient to pierce the
corporate veil of British Network Ltd.
42. Denied. To the contrary, the complaint is legally sufficient and specific so as to
permit piercing of tlie corporate veil. Moreover, the participation theory permits liability to be
established against the Defendants.
WHEREFORE, Plaintiff requests that this Preliminary Objection be overruled and
Defendants be directed to answer the complaint.
IV. NONJOINDER OF A NECESSARY PARTY
43. Plaintiff incorporates by reference its answers to paragraphs one through forty-two
as though set forth at length.
44. Admitted in part and denied in part. It is admitted only that British Network Ltd.
is not a defendant in this matter. It is denied that British Network is a necessary party. To the
contrary, Defendants are personally liable to pay the damages de:manded. If the Defendants
believe they have a claim over against British Network Ltd. for indemnification or contribution,
they may join British Network Ltd. as a third-party defendant.
45. Denied. Plaintiff incorporates by reference its answer to paragraph forty-four as
though set forth at length.
46. To the extent this averment is a conclusion of law, no answer is required. To the
extent a response may be required, the averment is denied.
WHEREFORE, Plaintiff requests the Preliminary Objection be overruled and Defendants
be directed to answer the complaint.
Respectfully submitted,
dab.dir/orrstownbank/kloza/preliminaryobjection2.rep
David A. Baric, Esquire
!.D. 44853
19 West Souili Street
Carlisle, Pennsylvania 17013
(717) 249-6873
Attorney fior Plaintiff, Orrstown Bank
VERIFICATION
I veritY that the statements made in the foregoing Reply To Preliminary Objections 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 tl1e 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 tl1at false statements herein are made
subject to penalties of 18 Pa.C.S. ~4904, relatin
David A. Baric, Esquire
Dated: /tf J Je7 /PI
I I
CERTIFICATE OF SERVICE
I hereby certifY tl1at on October 19, 2004, I, David A. Baric, Esquire of O'Brien, Baric &
Scherer, did serve a copy oftl1e Reply To Preliminary Objections, by first class U.S. mail,
postage prepaid, to the party listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, P A 17013
~;/ t!
David A. Baric, Esquire
PRAECIPE FOR LISTING CASE FOR ARGUMENT
(Must be typewritten and subnitted in duplicate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Please list the within matter far the nE!Xt Argunen.t Court.
------------------------------------------------------'---------------------------------
CAPTION OF CASE
(entire caption must be stated in full)
ORRSTOWN BANK
( Plainti:ff)
vs.
JOSEPH D. KLOZA AND
WANDA M. CRAWFORD KLOZA
( Defendant)
No. 4656
Civil ACTION LAW 2:004
1. State matter to be argued (i.e.. plaintiff's motion for new trial. defendant's
danurrer to canplaint, etc.):
Defendants' Preliminary objections
2. Identify counsel who will argue case:
(a) far plaintiff: DAVID A. BARIC, ESQ..
~s: 19 W. SOUTH ST.
CARLISLE, PA 17013
(h) for defendant: MICHAEL T. TRAXLER, ESQ.
~s: 36 S. HANOVER ST.
CARLISLE, PA 17013
3. I will notify all parties in writing within hie. days that this case has
been listed for argunent.
4. Arg\.Inent Court Date: NOVEMBER 1 0, 2004
Dated:
'-ftt~~~r~
Atto:rney for DEFENDANT
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ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
PRAECIPE TO ATTACH SUBSTITUTE VERIFICATION
Please attach fue following Substitute Verification to fue Reply To Preliminary
Objections filed in this matter on October 19, 2004.
Respectfully submitted,
b:J;i'
Date: /fJ-7tt/
David A. Baric, Esquire
I.D. #44853
19 West Soufu Street
Carlisle, Pennsylvania 17013
(717) 249-6873
dab.dir/orrstownbanklkloza/substitnteverification.pra
VERIFICATION
I, Jeffrey S. Gayman, verifY that the statements made in the foregoing Reply To Preliminary
Objections are true and correct to the best of my knowledge, infonnation and belief.
I hereby ratifY the verification previously supplied by my alttorney, David A. Baric, Esquire
and execute this verification as a substituted verification.
I understand that false statements herein are made subjectto the penalties ofl8 Pa.C.S. g4904
relatingto unsworn falsifications to authorities.
,
Date:
JO ILL/Of
,
~S.G.ymM
Vice President
~
CERTIFICATE OF SERVICE
I hereby certifY that on October 27, 2004, I, David A. Baric:, Esquire of O'Brien, Baric &
Scherer, did serve a copy ofthe Praecipe To Attach Substitute Velrification, by first class U.S.
mail, postage prepaid, to the parties listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, P A 17013
David A. Baric, Esquire
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ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
MOTION TO DISMISS OBJECTIONS TO INTERROGATORIES
AND REQUEST FOR PRODUCTION OF DOCUMENTS
NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC
& SCHERER, and files the within Motion to Dismiss Objections to Interrogatories and Request
for Production of Documents and, in support thereof, sets forth the following:
1. On or about October 19, 2004, Plaintiff served counsel for Defendants with
Plaintiff's Interrogatories Directed to Defendants. A true and correct copy of Plaintiff's
Interrogatories Directed to Defendants is attached hereto as Exhibit "A" and is incorporated by
reference
2. On or about October 19, 2004, Plaintiff served counsel for Defendants with
Plaintiffs Request for Production of Documents Directed to Defendants. A true and correct copy
of Plaintiffs Request for Production of Documents Directed to Defendants is attached hereto as
Exhibit "B" and is incorporated by reference.
3. On or about November 19,2004, Defendants filed a document referenced as
"Defendants' Objections to Plaintiffs Discovery Requests". A true and correct copy of this
document is attached hereto as Exhibit "C".
4. Pursuant to Pa R.C.P. 4006 (a)(2), a party submitting interrogatories may move
the court to dismiss an objection to an interrogatory and direct that the interrogatory be answered.
5. Pa R.C.P. 4005 (a) provides that the only limitation on interrogatories are those
provisions ofPa R.C.P. 4011. None of the express objections permitted by Pa RCP 4011 has
been but forward by Defendants.
6. Pursuant to Pa R.C.P. 4009.12, a party upon whom a request for production is
served shall serve an answer including objections to each numbered request.
7. Pursuant to Pa R.C.P. 4009.12 (b)(4), a party may object to a request for
production on the grounds set forth at Pa R.C.P. 4011(a), (b) and (e) or upon the grounds that the
request does not meet the requirements ofPa R.C.P. 4009.11.
8. None of the proffered objections of Defendants to the requests for production fall
within those objections permitted.
9. Pa R.C.P. 4009.1 provides that a party may seek production of documents which
are "". in the possession, custody or control of the party or person upon whom the request or
subpoena is served; and may do so one or more times."
10. Pa R.C.P. 4019 (a)(1)(vii) permits this Court to make an appropriate order if a
party fails to respond that inspection will be permitted as requested or fails to permit inspection
as requested under Rule 4009.
11. Pa R.C.P. 4019 (a)(I)(viii) permits this Court to make an appropriate order if a
party fails to make discovery.
WHEREFORE, Plaintiff respectfully moves this Court to issue and order overruling the
objections of Defendants to the Interrogatories and Request for Production of Plaintiff and direct
Defendants to provide and serve upon counsel for Plaintiff full and complete responses to the
interrogatories and document requests.
Respectfully submitted,
~c?1
David A. Baric, Esquire
I.D. 44853
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
Attorney for Plaintiff
da b.dir/orrstown bank/kloza/dismisso b j ection.mot
ORRSTOWN BANK,
Plaintiff
v.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 2004-4656 CIVIL TERM
CIVIL ACTION-LA W
JOSEPH D. KLOZA and :
WANDA M. CRAWFORD KLOZA :
husband and wife,
Defendants
PLAINTIFF'S INTERROGATORIES DIRECTED TO DEFENDANTS
TO: Joseph D. Kloza
Wanda M. Crawford Kloza
c/o Michael Traxler, Esquire
36 South Hanover Street
Carlisle, Pennsylvania 17013
PLEASE TAKE NOTICE that you are hereby required pursuant to Pennsylvania Rules of
I
I
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 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 "A"
/
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,
modules, ~pecifications, data, sketches, maps, boring logs, soil tests, soil charts, soil reports, sketch
I
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, Hrculares, 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 Joseph D. Kloza and Wanda M. Crawford Kloza.
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
particularity 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) When 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.
INSTRUCTIONS
If you object to the production of any documents on the grounds that the attorney-client,
attorney work produCt or any other privilege is applicable thereto, with respect to that document:
(a) State its date;
(b) Identify its author;
( c) Identify each person who prepared or participated in the preparation of the
documents;
(d) Identify each person who received it;
(e) Identify each person from whom the documents were received;
(f) State the present location of the document and all copies thereof;
r
(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 oftbe propriety of that claim.
INTERROGATORIES
1. Please identify any and all documents in your possession, custody or control which
relate or refer to all officers, shareholders or directors of British Network, Ltd.
ANSWER:
2. Please identify any and all documents in your possession, custody or control which
relate or refer to the incorporation of British Network, Ltd.
ANSWER:
.
.
3. Please identify any and all documents in your possession, custody or control which
relate or refer to profit and loss statements from 1999 through 2004 for British Network, Ltd.
ANSWER:
4. Please identify any and all documents in your possession, custody or control which
relate or refer to federal and state tax returns filed for British Network, Ltd.
ANSWER:
..
i
5. Please identify any and all documents in your possession, custody or control which
relate or refer to tax returns filed by Joseph Kloza and Wanda Crawford Kloza from 1999 to the
present.
ANSWER:
6. Please identify any and all documents in your possession, custody or control which
relate or refer to any check ledgers for British Network, Ltd.
ANSWER:
.
.
7. Please identify any and all documents in your possession, custody or control which
relate or refer to any check registers for British Network, Ltd.
ANSWER:
8. Please identify the name and address of any and all persons to whom British Network,
Ltd. paid any sum of money during the period September 11, 2001 through December 31, 2001.
ANSWER;:
I
.
.
9. For each person identified in Interrogatory No.8, please provide the following:
a. the amount paid
b. the reason for the payment
c. the date the payment was made
d. the person at British Network, Ltd. who authorized the payment to be made
ANSWER:
'.
II
10. Please identify any and all minutes of British Network, Ltd. taken at any meetings
during the period 1999 through 2001.
ANSWER:
11.
I
meetings of shareholders of British Network, Ltd. occurring during the period 1999 through 2001.
Please identify any and all documents which reflect , refer or relate to the annual
ANSWER:
12. Please identify any and all documents which reflect, refer or relate to the elections of
officers and/or directors of British Network, Ltd. during the period 1999 through 2001.
ANSWER:
13. Please identify any individual or entity which provided accounting services to British
Network, pd. at any time during the period 1999 through 2001.
I
ANSWER:
~
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14. Please identify any and all individuals at Orrstown Bank with whom you had any
discussions regarding the Signature Card Agreement or Point Of Sale Merchant Agreement
appended to the Complaint.
ANSWER:
15. Please describe any discussions as identified in response to Interrogatory No. 14.
ANSWER:
'.
Respectfully submitted,
da b.dir/orrstownbank/kloza/defendant.int
I,
v.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 2004-4656 CIVIL TERM
ORRSTOWN BANK,
Plaintiff
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LA W
Defendants
PLAINTIFFS REQUEST FOR PRODUCTION OF
DOCUMENTS DIRECTED TO DEFENDANTS
AND NOW, comes the Plaintiff, Orrstown Bank, and files the following Request of
Documents to be answered by the above named Defendants under oath with thirty (30) days from
the date of service hereof.
This Request for Documents is continuing and any additional information which becomes
I
known to the party or party's counsel after answers are filed shall be set forth in supplementary
answers which are to be filed, without demand by the defendants' attorneys, as soon as the
additional information is known.
..
INSTRUCTIONS
Plaintiff incorporates herein by reference the defmitions set forth in its Interrogatories
Directed To Defendants. If you object to the production of documents on the grounds that the
attorney-client, attorney work product or any other privilege is applicable thereto, with respect to
that document:
(a) State its date;
(b) Identify its author;
EXHIBIT "B"
1/
(c) Identify each person who prepared or participated in the preparation of the
documents;
(d) Identify each person who received it;
(e) Identify each person from whom the documents were received;
(f) State the present location of the document and all copies thereof;
(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.
DOCUMENT REOUEST
1. : Any and all documents identified in your answers to Plaintiffs Interrogatories
Directed To Defendants.
2. Any and all documents you intend to introduce at the trial in this matter.
Respectfully submitted,
RIEN, BARIC & ~C~R
- /:j a..
..
David A. Baric, Esquire
I.D. 44853
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
dab.dir/orrstownbank/kloza/document.req
I,
CERTIFICATE OF SERVICE
I hereby certify that on October 19, 2004, I, David A. Baric, Esquire of O'Brien, Baric &
Scherer, did serve a copy of the Plaintiffs Request For Production Of Documents Directed To
Defendants, by first class U.S. mail, postage prepaid, to the parties listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, P A 17013
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David A. Baric, Esquire
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ABOM & KUTULAKIS, LLP
36 S. Hanover Street
Carlisle, P A 17013
(717) 249-0900
ORRSTOWN BANK,
Plaintiff
v.
: INlHECOURTOFCOMMONPLEAS
: CUMBERLAND COUNIY, PENNSYLVANIA
: NO.: 2004-4656 CIVll.. TERM
JOSEPH D. KLOZA and
WANDA M.CRAWFORDKLOZA
husband and wife,
Defendants
: CIVIL ACTION - LAW
DEFENDANTS' OBJECTIONS TO PLAINTIFF'S DISCOVERY REQUESTS_..
Defendants, Joseph D. Kloza and Wanda M. Crawford Kloza, by their undersigned counsel,
object to Plaintiff's discovery requests as follows:
1. Plaintiff has requested discovery from the Defendants in the form of Interrogatories and
Request for Production of Documents.
2. Plaintiff's discovery requests are limited to information pertaining to a corporation
known as British Network, Ltd ("British Network") and actions taken by the officers of that
corporation.
3. British Network and its officers are not parties in the above-captioned matter.
4. Only Joseph Kloza and Wanda Kloza, as individuals, have been named as defendants in
the above-captioned matter.
5. Defendants object to Plaintiff's Interrogatories numbered one (1) through fifteen (15) as
information that is not discoverable from the Defendants named in this suit.
6. Defendants object to Plaintiff's Request for Production Documents number one (1) as
information that is not discoverable from the Defendants named in this suit.
EXHIBIT "e"
7. Defendants object to Plaintiff's Request for Production of Documents number two (2) as
Plaintiff is already in possession of the documents that Defendants intend to produce at trial.
Should it be determined that Defendants will introduce documents that Plaintiff is not already in
possession of, Defendants will make those documents available for Plaintiff in advance of trial.
WHEREFORE, Defendants respectfully request this Court to quash Plaintiff's discovery
requests.
Respectfully submitted,
ABOM & KU7VLAKIS, LLP
~g--c/ D
Michael 1'. Traxler, ESqUIre ~V'r
36 S. Hanover Street
Carlisle, PA 17013
(717) 249-0900
ill No. 90961
AttlJrr1I!j fur De[rmants
CERTIFICATE OF SERVICE
AND NOW, I, Michael T. Traxler, of ABOM & KU1UlAKIS, LLP, hereby
certify that I did serve or cause to be served a true and correct copy of the foregoing
Defendants' Objections to Plaintiff's Discovery Requests by First Class U.S. Mail at
the following:
David A. Baric, Esquire
O'BRIEN, BARIC AND SQiERER
17 West South Street
Carlisle, PA 17013
Respectfully submitted,
ABOM & KUTULAKIS, LLP
DATE 10Vo:Y
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Michael T. Traxler, Esquire
36 S. Hanover Street
Carlisle, PA 17013
(717) 249-0900
CERTIFICATE OF SERVICE
I hereby certify that on November;2.1 ,2004, I, David A. Baric, Esquire of O'Brien,
Baric & Scherer, did serve a copy of the Motion To Dismiss Objections To Interrogatories and
Request For Production Of Documents, by first class U.S. mail, postage prepaid, to the parties
listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, Pennsylvania 17013
David A. Baric, Esquire
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ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LA W
JOSEPH D. KLOZA
And WANDA M.
CRA WFORD KLOZA,
husband and wife,
Defendants
NO. 04-4656 CIVIL TERM
IN RE: DEFENDATS' PRELIMINARY OBJECTIONS
BEFORE HOFFER. P.J.. OLER and GUIDO. JJ.
ORDER OF COURT
AND NOW, this 12th day of November, 2004, upon consideration of Defendants'
preliminary objections to Plaintiff s complaint, and following oral argument held on
November 10, 2004, the preliminary objections are denied and Defendants are afforded
20 days within which to file a responsive pleading to Plaintiffs complaint.
BY THE COURT,
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i1/ r--, / d1 ~
teSley Oler, r., J. ·
David A. Baric, Esq.
19 West South Street
Carlisle, P A 17013
Attorney for Plaintiff
Michael T. Traxler, Esq.
36 South Hanover Street
Carlisle, P A 17013
Attorney for Defendants
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ABOM & KUTULAKIS, LLP
36 S. Hanover Street
Carlisle, PA 17013
(717) 249-0900
ORRSTOWN BANK,
Plaintiff
v.
: IN 1HE COURT OF COMMON PLEAS
: CUMBERLAND COUN1Y, PENNSYLVANIA
: NO.: 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M.CRAWFORDKLOZA
husband and wife,
Defendants
: CIVIL ACfION - LAW
DEFENDANTS' OBJECTIONS TO PLAINTIFF'S DISCOVERY REQUESTS
Defendants, Joseph D. Kloza and Wanda M. Crawford Kloza, by their undersigned counsel,
object to Plaintiff's discovery requests as follows:
1. Plaintiff has requested discovery from the Defendants in the form of Interrogatories and
Request for Production of Documents.
2. Plaintiff's discovery requests are limited to infonnaUon pertaining to a corporation
known as British Network, Ltd ("British Network") and actions taken by the officers of that
corporatIon.
3. British Network and its officers are not parties in the above-captioned matter.
4. Only Joseph Kloza and Wanda Kloza, as individuals, have been named as defendants in
the above-captioned matter.
5. Defendants object to Plaintiff's Interrogatories numbered one (1) through fifteen (15) as
information that is not discoverable from the Defendants named in this suit.
6. Defendants object to Plaintiff's Request for Production Documents number one (1) as
information that is not discoverable from the Defendants named in this suit.
7. Defendants object to Plaintiff's Request for Production of Documents number two (2) as
Plaintiff is already in possession of the documents that Defendants intend to produce at trial.
Should it be determined that Defendants will introduce documents that Plaintiff is not already in
possession of, Defendants will make those documents available for Plaintiff in advance of trial.
WHEREFORE, Defendants respectfully request this Cowt to quash Plaintiff's discovery
requests.
Respectfully submitted,
ABOM & KUTUIAKIS, LLP
· ar-
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Mic I T. Traxler, EsqUIre /
36 S. Hanover Street
Carlisle, PA 17013
(717) 249-0900
ill No. 90961
Attorney fur De[mdants
-?
CERTIFICATE OF SERVICE
AND NOW, I, Michael T. Traxler, of ABOM & KUTULAKIS, LLP, hereby
certify that I did serve or cause to be served a true and correct copy of the foregoing
Defendants' Objections to Plaintiff's Discovery Requests. by First Class u.s. Mail at
the following:
David A. Baric, Esquire
O'BRIEN, BARIC AND Sa-IERER
17 West South Street
Carlisle, PA 17013
Respectfully submitted,
AllOM & KuruL4KIS, LLP
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MOM & KUTULAKI5, LLP
36 S. Hanover Street
Carlisle, P A 17013
(717) 249-0900
ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO.: 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA
husband and wife,
Defendants
CIVIL ACTION - LAW
DEFENDANTS' ANSWER TO PLAINTIFF'S COMPLAINT
Defendants, Joseph D. Kloza and Wanda M. Crawford Kloza, by their undersigned counsel,
hereby answer plaintiffs complaint with new matter as follows:
1. Admitted.
2. Admitted.
3. Admitted.
4. Denied. To the contrary, Joseph D. Kloza and Wanda M. Crawford Kloza have been, at
all relevant times, officers and directors of a certain corporation known as British Network Ltd.
(hereinafter "British Network").
5. Admitted in part, denied in part. It is admitted that British Network was in the business
of providing travel packages to individuals. It is denied that British Network was involved in any
business other than providing travel packages to individuals. To the contrary, British Network sold
travel packages to customers utilizing British Network's services via the internet.
6. Admitted in part, denied in part. It is admitted that a Signature Card Agreement with
Orrstown Bank was executed on or about May 26, 1999. It is admitted that a copy of the Signature
Card Agreement establishing a business account in the name of British Network was attached as an
exhibit to Plaintiffs Complaint. All the remaining aspects of this averment are denied. This
averment is denied to the extent that the averment implies that Dt{endants executed the Signature
Card Agreement as individuals. To the contrary, Defendants executed the Signature Card
Agreement as officers of British Network. This averment is denied to the extent that the execution
of the Signature Card Agreement established a regular checking account in the name of British
Network, Ltd. To the contrary, the execution of the Signature Card Agreement established a regular
business account in the name of British Network.
7. Admitted in part, denied in part. It is admitted that an Electronic Point of Sale Merchant
Agreement ("Point of Sale Agreement") was executed between Orrstown Bank and British Network
on or about June 28, 1999. It is admitted that a copy of the Point of Sale Agreement was attached as
an exhibit to Plaintiffs Complaint. All the remaining aspects of dus averment are denied. This
averment is denied to the extent that the averment implies that Joseph D. Kloza executed the Point
of Sale Agreement as an individual. To the contrary, Joseph D. Kloza executed the Point of Sale
Agreement as an officer of British Network. This averment is derued to the extent that the
averment implies that Wanda M. Crawford Kloza was a party to the Point of Sale Agreement. To
the contrary, Wanda M. Crawford Kloza did not sign the Point of Sale Agreement.
8. Admitted in part, denied in part. Averment 8 is admitted only to the extent that the
language of the Point of Sale Agreement speaks for itself. This averment is denied to the extent that
the credits were placed into the British Network regular checking account. To the contrary, the
credits were placed into the British Network regular business account. Defendants are without
sufficient knowledge and belief to know the exact business procedure the Plaintiff followed in
performing the contract Plaintiff executed with British Network
9. Admitted in part, denied in part. This is averment is admitted to the extent that the
language of the Point of Sale Agreement speaks for itself. This averment is admitted to the extent
that Paragraph 5 of the Point of Sale Agreement provided for the manner in which charge backs by
customers of British Network were to be handled. This averment is denied to the extent that the
language of Paragraph 5 of the Point of Sale Agreement would cause the Defendants to become
liable as individuals under the Signature Card Agreement.
10. Admitted in part, denied in part. This averment is admitted to the extent that the
Signature Card Agreement contained similar language pertaining to liability. This averment is denied
to the extent that the liability language would cause the Defendants to become liable as individuals
under the Signature Card Agreement. To the contrary, the Signature Card Agreement defines the
words "you" and "your" to mean the account holder and the Signature Card Agreement provides
that the account holder is British Network. Furthermore, the temLS of the Signature Card
Agreement provide that the account may not be transferred or assigned without the written consent
of Orrstown Bank. Orrstown Bank did not provide written consent to transfer or assign the
account from British Network to Joseph D. Kloza or Wanda M. Crawford Kloza as individuals.
This averment is denied to the extent that the liability language appeared in a large and readable font
in the Signature Card Agreement as provided for in Plaintiffs Complaint. To the contrary, the
liability language appeared in tiny unreadable font on the back pag,e of the Signature Card
Agreement. Moreover, there was not a separate area on the back page for acceptance of the terms
that were contained on the back page of the Signature Card Agreement.
11. Denied. To the contrary, British Network. used and employed the benefits of the Point
of Sale Agreement. Moreover, the Defendants were not parties to the Point of Sale Agreement.
12. Denied. This averment is denied to the extent that it implies that Defendants were
responsible for establishing a reserve. To the contrary, the Defendants were not parties to the Point
of Sale Agreement and therefore had no duty to establish a reserve for charge backs. The Point of
Sale Agreement was signed by the President of British Network. 'Ibe Point of Sale Agreement was
not signed by the Defendants as named in this suit. The Point of Sale Agreement was never signed
by Wanda M. Crawford Kloza as an officer or as an individual.
13. Denied. lbis averment is denied to the extent that it implies that Defendants were
parties to the Point of Sale Agreement. To the contrary, the Defendants were not parties to the
Point of Sale Agreement. The Point of Sale Ageement was signed by the President of British
Network. The Point of Sale Agreement was never signed by Wanda M. Crawford Kloza as an
officer or as an individual. After Reasonable investigation, the Defendants are without knowledge
or information sufficient to form a belief as to the truth or accuracy of the remaining portions of the
allegations in averment 13. Strict proof thereof is demanded from the Plaintiff.
14. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegations in averment 17.
Strict proof thereof is demanded from the Plaintiff.
15. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegations in averment 15.
Strict proof thereof is demanded from the Plaintiff.
16. Denied. The allegations contained in averment 16 are conclusions oflaw to which no
responsive pleading is required and are therefore denied. Specifically, the Signature Card Agreement
provides that attorney fees are collectable to the extent permitted by law. To the extent that a
responsive pleading is required the allegations contained in averment 16 are denied to the extent that
attorney fees can be collected from Defendants. To the Contrary, Defendants are not party to the
Signature Card Agreement. British Network. is the only party to the Signature Card Agreement.
17. Denied. Averment 17 is denied to the extent that the Defendants had no entidement to
amounts of money that were contained in the accounts of British Network. To the contrary,
Defendants were officers and employees of British Network. and were entided to compensation for
those services. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the remaining allegations in
averment 17. Strict proof thereof is demanded from the Plaintiff.
18. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegations in averment 18.
Strict proof thereof is demanded from the Plaintiff. Averment 18 is denied to the extent that
substantial sums of money were removed from the accounts ofBJritish Network and the Defendants
knew this would render British Network insolvent. To the contrary, it was the intention of British
Network and its officers to continue to operate British Network and paid its operating expenses
from the accounts of British Network at all relevant times. The aJlegations contained in averment
18 are denied to the extent the Defendants removed money from the accounts of British Network
as individuals. To the contrary, British Network and its officers only took out money from the
accounts of British Network to pay creditors.
19. Denied. The allegations contained in averment 19 are denied to the extent this
averment contains conclusions of law to which no responsive pleading is required. To the extent
that a responsive pleading is required the allegations contained in averment 19 are denied as only
Joseph Kloza and Wanda Kloza, as individuals, are named as defendants. Further denied. After
reasonable investigation, the Defendants are without knowledge or information sufficient to form a
belief as to the truth or accuracy of the allegations in averment 19. Strict proof thereof is demanded
from the Plaintiff.
20. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegations in averment 20.
Strict proof thereof is demanded from the Plaintiff. To the extent a responsive pleading is required
the averments contained in averment 20 are denied. To the contrary, only British Network and its
officers took out or spent money from the accounts of British Network and it was only to pay
British Network's creditors, operating expenses and to provide customers with refunds.
COUNT I-BREACH OF CONTRACT
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
21. Defendants incorporate herein by reference the avemlents contained in paragraphs one
through twenty inclusive of this Answer and New Matter as though the same were set forth at
length.
22. Denied. The allegations contained in averment 22 are denied to the extent that the
Defendants are liable as individuals. To the contrary, the Signature Card Agreement defines the
words "you" and "your" to mean the account holder and the Signature Card Agreement provides
that the account holder is British Network.
AGREEMENT - These terms govern the operation of the account
unless varied or supplemented in writing. Unless i.t would be
inconsistent to do so, words and phrases used in this document
should be construed so that the singular includes the plural and the
plural includes the singular. As used in this form, the words "we,"
"our," or "us" mean the financial institution and the words "you" or
"your" mean the account holder(s). This account may not be
transferred or assigned without our written consent.
Furthermore, the terms of the Signature Card Agreement provide that the account may not be
transferred or assigned without the written consent of Orrstown Bank. Orrstown Bank did not
provide written consent to transfer or assign the account from British Network. to Joseph D. Kloza
or Wanda M. Crawford Kloza as individuals. This averment is denied to the extent that the liability
language appeared in a large and readable font in the Signature C:ud Agreement as provided for in
Plaintiffs Complaint. To the contrary, the liability language appeared in tiny unreadable font on the
back page of the Signature Card Agreement. Moreover, there was not a separate area on the back
page for acceptance of the terms that were contained on the back page of the Signature Card
Agreement. The allegations contained in averment 22 are denied to the extent that the Defendants
are liable as individuals. To the contrary, Joseph and Wanda Kloza only signed the Signature Card
Agreement once as officers of British Network, not as individuals. Moreover, the phone number,
fax number and taxpayer identification number of British Network were the only identifiers noted
on the Signature Card Agreement. The allegations contained in ayerment 22 are denied to the
extent that the Defendants agreed to pay any deficit resulting from charges and overdrafts to the
regular checking account. To the contrary, the president of British Network agreed to allow any
deficit resulting from charges and overdrafts to be charged against British Network's business bank
account. Furthermore, only British Network agreed to pay for deficits that resulted from charges
and overdrafts. Joseph Kloza and Wanda M. Crawford Kloza neyer agreed as individuals to be
responsible for any deficit that resulted from charges or overdrafts.
23. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegations in averment 23.
Strict proof thereof is demanded from the Plaintiff.
24. Admitted in part, denied in part. Admitted to the extent that Plaintiff has demanded
these amounts from Joseph and Wanda Kloza as individuals. Denied to the extent that Plaintiff has
demanded payment from British Network or its officers. To the contrary, Plaintiff has never
demanded payment from British Network. Strict proof to the contrary is demanded.
25. Admitted in part, denied in part. The allegations contained in averment 25 are denied to
the extent that they imply that Defendants are liable as individuals for the debts being claimed by
Plaintiff. To the contrary, Defendants were and are not obligated to pay the amounts that have been
demanded by Orrstown Bank because Defendants were not parties to the contracts that Plaintiff
claims have been breached. Admitted to the extent that the Defendants have not paid due to the
fact that they are not liable as individuals for the debts of British Network.
26. Denied. The allegations contained in averment 26 are conclusions of law to which no
responsive pleading is required. To the extent that a responsive pleading is required the allegations
contained in averment 26 are denied as Joseph Kloza and Wanda laoza, as individuals, were and are
not parties to the signature card agreement. To the contrary, for the reasons set forth in Paragraph
22 herein, Defendants were not party to the Signature Card Agreement. Furthermore, it is not
possible for the Defendants to have breached the terms of the Signature Card Agreement because
they were not parties to the Signature Card Agreement
27. Denied. The allegations contained in averment 27 are denied to the extent this
averment contains conclusions of law to which no responsive pleading is required. Specifically, this
averment infers that a breach has occurred. lbis allegation is a conclusion of law to which no
responsive pleading in necessary. Moreover, this averment infers that the alleged damages were a
direct and proximate result of Defendants' breach. lbis allegation is a conclusion of law to which
no responsive pleading is necessary. After reasonable investigation, the Defendants are without
knowledge or information sufficient to form a belief as to the truth or accuracy of the allegations in
averment 27. Strict proof thereof is demanded from the Plaintiff.
28. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegation in averment 28
whereby it has been alleged that Orrstown bank will continue to incur attorney fees. To the
contrary, Defendant is not aware of the Plaintiffs fee arrangement with counsel. Defendants are
not aware of whether Plaintiffs counsel is taking a contingency fee or is billing plaintiff on a time
and expense basis. Strict proof thereof is demanded from the PlaJl1ltiff. The allegations contained in
averment 28 are conclusions of law to which no responsive pleading is required and are therefore
denied. Specifically, the Signature Card Agreement provides that attorney fees are collectable to the
extent permitted by law. To the extent that a responsive pleading is required the allegations
contained in averment 16 are denied to the extent that attorney fees can be collected from
Defendants. To the Contrary, Defendants are not party to the Signature Card Agreement. British
Network is the only party to the Signature Card Agreement.
COUNT II-QUANTUM MERUIT
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
29. Defendants incorporate herein by reference the averments contained in paragraphs one
through twenty-eight inclusive of this Answer and New Matter as though the same were set forth at
length.
30. Denied. The allegations in averment 30 are denied for the same reasons set forth in
Paragraph 11 herein. To the contrary, British Network used and enjoyed the benefit of the credits
provided by Orrstown Bank to the Business Checking Account.
31. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegations in averment 31.
Strict proof thereof is demanded from the Plaintiff. To the extent a responsive pleading is required
the allegations contained in averment 31 are denied. To the contrary, British Network was
overwhelmed by and abnormal amount of refund requests during the period from September of
2001 to February of 2002 by its customers and were forced to give refunds when no money
remained in the accounts of British Network. Plaintiff gave the refunds to British Network's
customers without consulting with British Network, the Defendants or anybody employed by
British Network.
32. Admitted in part, denied in part. The allegations contained in averment 32 are denied to
the extent that they imply that Defendants are liable as individuals for the debts being claimed by
Plaintiff. To the contrary, Defendants were and are not obligated to pay the amounts that have been
demanded by Orrstown Bank because Defendants are not liable for the debts of the corporation
known as British Network. Moreover, Defendants were and are not obligated to pay the amounts
that have been demanded by Orrstown Bank because Defendants were not parties to the contracts
that Plaintiff claims have been breached. Admitted to the extent that the Defendants have not paid
due to the fact that they are not liable as individuals for the debts of British Network.
33. Denied. The allegations contained in averment 33 are conclusions of law to which no
responsive pleading is required and are therefore denied. Strict proof is demanded from the
Plaintiff.
COUNT III-CONVERSION
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
34. Defendants incorporate herein by reference the averments contained in paragraphs one
through thirty-three inclusive of this Answer and New Matter as though the same were set forth at
length.
35. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegations in averment 35.
Strict proof thereof is demanded from the Plaintiff. To the extent that a responsive pleading is
required, the allegations contained in averment 35 are denied. To the contrary, all money that was
utilized during relevant times was used to pay existing obligations and operating expenses of British
Network and to provide refunds to British Network's customers.
36. Denied. After reasonable investigation, the Defendants are without knowledge or
information sufficient to form a belief as to the truth or accuracy of the allegations in averment 36.
Strict proof thereof is demanded from the Plaintiff.
37. Denied. The allegations contained in averment 37 are conclusions oflaw to which no
responsive pleading is required and are therefore denied. To the extent that a responsive pleading is
necessary the allegations contained in averment 37 are denied. To the contrary, it was the intention
of British Network. acting through its officers, to remain solvent and continue to operate a
successful corporation.
38. Denied. The allegations contained in averment 38 are conclusions of law to which no
responsive pleading is required and are therefore denied. To the extent that a responsive pleading is
necessary, the allegations contained in averment 38 are denied. To the contrary, it was the intention
of British Network. acting through its officers, to remain solvent :l.nd continue to operate a
successful corporation. To the contrary, the Defendants did not strip British Network of funds.
Rather, any money that was utilized during relevant times was used to pay existing obligations and
operating expenses of British Network
39. Any averment not specifically denied or admitted in Defendants' Answer to Plaintiffs
Complaint is hereby denied.
NEW MATTER ASSERTING AFFIRMATIVE DEFENSE OF
STATUE OF LIMITATIONS
ORRSTOWN BANK v. JOSEPH D. KLOZA and WANDA M. CRAWFORD KLOZA
40. Plaintiffs complaint seeks damages from Defendants, alleging a cause of action for
Conversion.
41. The applicable Pennsylvania statute of limitation, 42 Pa.C.S.A. ~5524 requires that a
cause of action for Conversion be commenced within two years of the date on which the cause of
action accrued.
42. Plaintiffs cause of action accrued no later than December 3,2001, and Plaintiffs action
was not commenced until September 16, 2004, which is beyond the applicable statutory period of
limitation.
43. Plaintiffs cause of action is accordingly barred by the applicable statute of limitation.
WHEREFORE, Defendants respectfully request this Court to dismiss Plaintiffs cause of
action for Conversion as being untimely and outside the applicablc~ Pennsylvania statute of
limitation.
Respectfully submitted,
ADOM & KUTULAKl5, LLP
. ~
( pr~
Mi~Esquire
36 S. Hanover Street
Carlisle, P A 17013
(717) 249-0900
ID No. 90961
Attomry for Difendant.r
VERIFICATION
I verify that the statements made in the foregoing Answer and New Matter are true and correct
to the best of my knowledge, information and belief. lbis verification is signed by Michael T. Traxler,
attorney for the party :filing the foregoing document and is based upon statements, documents and
information provided by the Defendants. lbis verification will be substituted by a verification singed
by one or more of the Defendants whom were unavailable to sign said verification. I understand that
false statements herein are made subject to the penalties of 18 Pa.C.S. 4904, relating to unsworn
falsification of authorities.
Date:
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Michael T. Traxler
CERTIFICATE OF SERVICE
AND NOW, I, Michael T. Traxler, of ABOM & KUTULi\KIS, LLP, hereby certify that I
did serve or cause to be served a true and correct copy of the foregoing Defendants' Answer and
New Matter by First Class U.S. Mail at the following:
David A. Baric, Esquire
O'BRIEN, BARIC AND SCHERER
17 West South Street
Carlisle, P A 17013
Respectfully submitted,
ABOM & KUTULAKI5, LLP
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Michael T. Traxler, Esquire
36 S. Hanover Street
Carlisle, P A 17013
(717) 249-0900
ID No. 90961
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ORRSTOWN BANK,
Plaintiff
v.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 2004-4656 CIVIL TERM
CIVIL ACTION-LAW
JOSEPH D. KLOZA and
WANDA M. CRA WFORD KLOZA :
husband and wife,
Defendants
REPLY TO NEW MATTER
AND NOW, comes Plaintiff, Orrstown Bank, 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:
40. Denied. To the contrary, Plaintiff seeks damages from Defendants under theories
of conversion, breach of contract and quantum meruit.
41. To the extent these averments constitute conclusions of law, no response is
required. To the extent a response may be required, the averments are denied. To the contrary,
the discovery rule may vary the applicable statutes of limitation along with theories of equitable
tolling, etc.
42. Denied. To the contrary, when the cause of action accrued is a question of fact
which has not been determined in this matter. Plaintiff incorporates by reference its answer to
paragraph 41 as through set forth at length.
43. Denied. Plaintiff incorporates by reference its answers to paragraphs 41 and 42 as
though set forth at length.
..
WHEREFORE, Plaintiff respectfully requests that judgment be entered in its favor and
against Defendants in accordance with the Complaint filed by Plaintiff.
Respectfully submitted,
~?1R
David A. Baric, Esquire
I.D. 44853
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
Attorney for Plaintiff,
Orrstown Bank
da b.dir/orrstown banklkloza/newmatter. rep
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. I understand that false statements
herein are made subject to the penalties of 18 Pa. C.S. S 4904, relating to unsworn falsification to
authorities.
DATED:
/d;~/ /1
David A. Baric, Esquire
I J/14 /04-
,
-'" .
CERTIFICATE OF SERVICE
I hereby certify that on December 14- , 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 parties listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, Pennsylvania 17013
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David A. Baric, Esquire
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ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LAW
JOSEPH D. KLOZA
And WANDA M
CRAWFORD KLOZA,
Husband and wife,
Defendants
NO. 04-4656 CIVIL TERM
ORDER OF COURT
AND NOW, this 3rd day of January, 2005, upon
consideration of Plaintiff's Motion To Dismiss Objections to
Interrogatories and Request for Production of Documents, and
following a discovery conference held in the chambers of the
undersigned judge on this date at which Plaintiff was represented
by David A. Baric, Esquire, and Defendants Here represented by
Michael T. Traxler, Esquire, Plaintiff's motion is granted to the
extent that Defendants are directed, within 30 days of today's
date, to provide written, verified answers to the interrogatories
in question and to make available for inspection and such copying
as Plaintiff desires the items sought in Plaintiff's Request for
Production of Documents to Plaintiff's Counsel.
By the Court,
David A. Baric, Esquire
19 West South Street
Carlisle, PA 17013
For the Plaintiff
Michael T. Traxler, Esquire
36 South Hanover Street
Carlisle, PA 17013
For the Defendants
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ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
MOTION FOR SANCTIONS
NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC
& SCHERER, and files the within motion, and in support thereof, sets forth the following:
1. On or about October 19, 2004, Plaintiff served counsel for Defendants with
I Plaintiffs Interrogatories Directed to Defendants.
I 2. On or about October 19,2004, Plaintiff served counsel for Defendants with
Plaintiffs Request for Production of Documents Directed to Defendants.
3. On or about November 19,2004, Defendants filed a document referenced as
"Defendants' Objections to Plaintiffs Discovery Requets".
4. On or about November 24, 2004, Plaintiff filed a Motion to Dismiss Objections to
Interrogatories and Request for Production of Documents. A true and correct copy of the Motion
to Dismiss Objections to Interrogatories and Request for Production of Documents is appended
hereto as Exhibit "A" and is incorporated by reference. Appended to the Motion To Dismiss are
true and correct copies of the documents referenced at paragraphs 1,2 and 3 hereinabove.
5. A hearing on the Motion to Dismiss Objections to Interrogatories and Request for
Production of Documents was held on January 3, 2005.
I[ ,
6, By Order of Court dated January 3, 2005, Oler, J., dismissed the objections of
Defendants and directed verified answers to the interrogatories and production of the documents
requested be made within thirty (30) days of the date ofthe Order. A true and correct copy of
this Order is attached hereto as Exhibit "B" and is incorporated by reference,
7, By correspondence dated February 2, 2005, counsel for Plaintiff reminded counsel
for Defendants that verified answers to the interrogatories were due and to request the documents
be provided as required by the Order, A true and correct copy of this correspondence is attached
hereto as Exhibit "c" and is incorporated by reference.
8. No response has been provided by counsel for the Defendants.
9, PaRCP 4019 provides for the imposition of sanctions where a party fails to serve
answers to interrogatories PaRCP 4019 (a)(l)(I); fails to respond to a request for production
PaRCP 4019 (a)(l)(vii); or where a party "otherwise fails to make discovery or to obey an
order of court respecting discovery" PaRCP 4019 (a)(l)(viii),
10, PaRCP 4019(c) (1)-(5) provide actions permitted by the Court as sanctions for the
failure of a party to comply, These actions include refusing a disobedient the right to support or
oppose designated claims or defenses,
11, Defendants have claimed as a defense a shield from liability through a corporate
entity they owned and operated,
12. The discovery sought by Plaintiff is directed, in part, to documents and
information which would pierce the corporate veil.
13. PaRep 4019(1)(3) permits the Court to apportion reasonable expenses incurred in
relation to a motion for sanctions.
II
II
14. Counsel for Plaintiff anticipates the fees attendant to the filing and hearing on this
motion will be $300.00.
WHEREFORE, Plaintiff respectfully requests that this Court enter an Order providing for
sanctions against Defendants as follows:
1) prohibiting Defendants from producing any evidence at trial of this matter to
support their contention of a liability shield vis-a-vis a corporate entity;
2) finding Defendants personally liable for the claim of Plaintiff provided Plaintiff
prevails on its proof of the claim as due and owing;
3) directing Defendants to pay the reasonable expenses incurred by Plaintiff in
relation to this motion; and
4) such order with regard to the failure to make discovery as is just.
Respectfully submitted,
II
OWtHZ[
David A. Baric, Esquire
!.D. # 44853
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
Attorney for Plaintiff
dab.dir/orrstownbanklkloza/sanction.mot
ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL V ANlA
v.
NO. 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
RULE TO SHOW CAUSE
AND NOW, this
day of
, 2004, upon consideration of
the Motion To Dismiss Objections To Interrogatories And Request For Production Of
Documents, a rule is issued upon Defendants to show cause, if any there be, why the relief
requested in the Motion should not be granted.
Rule returnable
days from service.
BY THE COURT,
J.
EXHIBIT "A"
ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 2004-4656 CIVIL TERM
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JOSEPH D. KLOZA and
WANDA M. eRA WFORD KLOZA :
husband and wife,
.'
"
CIVIL ACTION-LAW
:')
Defendants
MOTION TO DISMISS OBJECTIONS TO INTERROGATORIES .
AND REOUEST FOR PRODUCTION OF DOCUMENTS
\':': . \
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NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC
& SCHERER, and files the within Motion to Dismiss Objections to Interrogatories and Request
for Production of Documents and, in support thereof, sets forth the following:
I, On or about October 19,2004, Plaintiff served counsel for Defendants with
Plaintiff s Interrogatories Directed to Defendants. A true and correct copy of Plaintiff s
Interrogatories Directed to Defendants is attached hereto as Exhibit "A" and is incorporated by
reference
.
2. On or about October 19, 2004, Plaintiff served counsel for Defendants with
Plaintiffs Request for Production of Documents Directed to Defendants. A true and correct copy
of Plaintiffs Request for Production of Documents Directed to Defendants is attached hereto as
Exhibit "B" and is incorporated by reference.
3, On or about November 19,2004, Defendants filed a document referenced as
"Defendants' Objections to Plaintiffs Discovery Requests". A true and correct copy of this
document is attached hereto as Exhibit "C".
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4. Pursuant to Pa R.C,P. 4006 (a)(2), a party submitting interrogatories may move
the court to dismiss an objection to an interrogatory and direct that the interrogatory be answered.
5. Pa R.C.P. 4005 (a) provides that the only limitation on interrogatories are those
provisions ofPa R.C.P. 4011. None of the express objections permitted by Pa RCP 4011 has
been but forward by Defendants.
6. Pursuant to Pa RC.P. 4009.12, a party upon whom a request for production is
served shall serve an answer including objections to each numbered request.
7. Pursuant to Pa RC.P. 4009.12 (b)(4), a party may object to a request for
production on the grounds set forth at Pa RC.P. 4011(a), (b) and (e) or upon the grounds that the
request does not meet the requirements ofPa RC.P. 4009.11.
8. None of the proffered objections of Defendants to the requests for production fall
within those objections permitted.
9. Pa R.C.P. 4009.1 provides that a party may seek production of documents which
are "... in the possession; custody or control of the party or person upon whom the request or
.
subpoena is served; and may do so one or more times."
10. Pa RC.P. 4019 (a)(l)(vii) permits this Court to make an appropriate order if a
party fails to respond that inspection will be permitted as requested or fails to permit inspection
as requested under Rule 4009.
11, Pa RC.P. 4019 (a)(l)(viii) permits this Court to make an appropriate order if a
party fails to make discovery.
i
WHEREFORE, Plaintiff respectfully moves this Court to issue and order overruling the
objections of Defendants to the Interrogatories and Request for Production of Plaintiff and direct
Defendants to provide and serve upon counsel for Plaintiff full and complete responses to the
interrogatories and document requests.
Respectfully submitted,
David A. Baric, Esquire
LD.44853
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
Attorney for Plaintiff
dab.dir/orrstownbank/kloza/dismissobjeclion.mot
?
ORRSTOWN BANK,
Plaintiff
v.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 2004-4656 CIVIL TERM
CIVIL ACTION-LAW
JOSEPH D. KLOZA and :
WANDA M. CRAWFORD KLOZA :
husband and wife,
Defendants
PLAINTIFF'S INTERROGATOR,IES DIRECTED TO DEFENDANTS.
TO: Joseph D. Kloza
Wanda M. Crawford Kloza
clo Michael Traxler, Esquire
36 South Hanover Street
Carlisle, Pennsylvania 17013
PI:EASE 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 thirty (30)
days after service of the Interrogatories. The Answers shall be inserted in the spaces provided. If
there is insufficient spac~ 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 "AU
I.
DEFINITION&
A. The term "document" as used herein shall mean the original and any copy, marked
up copy, revision, amendment, modification, non-identical copy andlor 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,
modules, $pecifications, 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, tirculares, 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 Joseph D. Kloza and Wanda M. Crawford Kloza.
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
particularity 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) When 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
knl>wn position or affiliation.
INSTRUCTIONS
If you object to the production of any documents on the grounds that the attorney-client,
attorney work produCt or any other privilege is applicable thereto, with respect to that document:
(a) State its ~ate;
(b) IdentifY its author;
(c) IdentifY each person who prepared or participated in the preparation of the
documents;
(d)
(e)
(1)
(g)
Identify each person who received it;
Identify each person from whom the documents were received;
State the present location of the document and all copies thereof;
~
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.
.
INTERROGATORIES
1. Please identify any and all documents in your possession, custody or control which
relate or refer to all officers, shareholders or directors of British Network, Ltd.
ANSWER:
2. Please identify any and all documents in your possession, custody or control which
relate or refer to the incorporation of British Network, Ltd.
ANSWER:
.
\
,
3. Please identify any and all documents in your possession, custody or control which
relate or refer to profit and loss statements from 1999 through 2004 for British Network, Ltd.
ANSWER:
4. Please identify any and all documents in your possession, custody or control which
relate or refer to federal and state tax returns filed for British Network, Ltd.
ANSWER:
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5. Please identify any and all documents in your possession, custody or control which
relate or refer to tax returns filed by Joseph K10za and Wanda Crawford K10za from 1999 to the
present.
ANSWER:
6. Please identify any and all documents in your possession, custody or control which
relate or refer to any che,ck ledgers for British Network, Ltd,
ANSWER:
.
.
.
,
7. Please identify any and all documents in your possession, custody or control which
relate or refer to any check registers for British Network, Ltd.
ANSWER:
8. Please identify the name and address of any and all persons to whom British Network,
Ltd. paid any sum of money during the period September 11,2001 through December 31, 2001.
ANSWER;:
.
,
.
.
.
9. For each person identified in Interrogatory No.8, please provide the following:
a. the amount paid
b. the reason for the payment
c. the date the payment was made
d. the person at British Network, Ltd. who authorized the payment to be made
ANSWER:
,
'.
"
10. Please identify any and all minutes of British Network, Ltd. taken at any meetings
during the period 1999 through 2001.
ANSWER:
11.
I
meetings of shareholders of British Network, Ltd. occurring during the period 1999 through 2001.
Please identify any and all documents which reflect, refer or relate to the annual
ANSWER:
I
'.
12. Please identify any and all documents which reflect, refer or relate to the elections of
officers and/or directors of British Network, Ltd. during the period 1999 through 200 I.
ANSWER:
13. Please identify any individual or entity which provided accounting services to British
Network, ~td. at any time during the period 1999 through 20(H.
,
ANSWER:
.
1
"
14. Please identify any and all individuals at Orrstown Bank with whom you had any
discussions regarding the Signature Card Agreement or Point Of Sale Merchant Agreement
appended to the Complaint.
ANSWER:
15. Please describe any discussions as identified in response to Interrogatory No. 14.
ANSWER:
.
'.
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David A. Baric, Esquire
J.D. 44853
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
Respectfully submitted,
dab.dir/orrstownbank/kloza/derendant.int
i,
v.
IN TIlE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLV ANlA
NO. 2004-4656 CIVIL TERM
ORRSTOWN BANK,
Plaintiff
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
CIVIL ACTION-LAW
Defendants
PLAINTIFFS REQUEST FOR PRODUCTION OF
DOCUMENTS DIRECTED TO DEFENDANTS
AND NOW, comes the Plaintiff, Orrstown Bank, and files the following Request of
Documents to be answered by the above named Defendants under oath with thirty (30) days from
the date of service hereof.
~s Request for Documents is continuing and any additional information which becomes
,
known to the party or party's counsel after answers are filed shall be set forth in supplementary
answers which are to be filed, without demand by the defendants' attorneys, as soon as the
additional information is known.
.
~
INSTRUCTIONS
Plaintiff incorporates herein by reference the definitions set forth in its Interrogatories
Directed To Defendants. If you object to the production of documents on the grounds that the
attorney-client, attorney work product or any other privilege is applicable thereto, with respect to
that document:
(a) State its date;
(b) Identify its author;
EXHIBIT "B"
'I
(c) Identify each person who prepared or participated in the preparation of the
documents;
(d) Identify each person who received it;
(e) Identify each person from whom the documents were received;
(f) State the present location of the document and all copies thereof;
(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.
DOCUMENT REOUEST
1. : Any and all documents identified in your answers to Plaintiffs Interrogatories
Directed To Defendants.
2. Any and all documents you intend to introduce at the trial in this matter.
.
~
Respectfully submitted,
RIEN, BARIC & ~C~R
- VJ4.
David A. Baric, Esquire
I.D. 44853
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
dab.dir/orrslownbanklklozaJdocumenl.req
,;
CERTIFICATE OF SERVICE
I hereby certify that on October 19, 2004, I, David A. Baric, Esquire of O'Brien, Baric &
Scherer, did serve a copy of the Plaintiffs Request For Production Of Docwnents Directed To
Defendants, by first class U.S. mail, postage prepaid, to the parties listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, PA 17013
~J(
David A. Baric, Esquire
.
"
,
i,
AllOM & KUTUlAKIS, UP
36 S. Hanover Street
Carlisle, PA 17013
(717) 249-0900
ORRSTOWN BANK,
Plaintiff
v.
: IN TIlE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: NO.: 2004-4656 CIVIL TERM
JOSEPH D. KLOZA and
WANDA M.CRAWFORDKLOZA
husband and wife,
Defendants
: CIVIL ACTION - LAW
. -
DEFENDANTS' OBJECTIONS TO PLAINTIFF'S DISCOVERY REQUESTS L:'
Defendants, Joseph D. Kloza and Wanda M. Crawford Kloza, by their undersigned counse~
object to Plaintiff's discovery requests as follows:
1. Plaintiff has requested discovezy from the Defendants in the form of Interrogatories and
Request for Production of Documents.
2. Plaintiff's discovery requests are limited to information pertaining to a corporation
known as British Network, Ltd ("British NetwOlk") and actions taken by the officers of that
corporation.
3. British Nenvotk and its officers are not parties in the above-captioned matter.
4. Only Joseph Kloza and Wanda Kloza, as individuals, have been named as defendants in
the above-captioned matter.
5. Defendants object to Plaintiff's Interrogatories numbered one (1) through fifteen (15) as
information that is not discoverable from the Defendants named in this suit.
6. Defendants object to Plaintiff's Request for Production Documents number one (1) as
information that is not discoverable from the Defendants named in this suit.
EXHIBIT "C"
7. Defendants object to Plaintiff's Request for Production of Documents number two (2) as
Plaintiff is already in possession of the documents that Defendants intend to produce at trial.
Should it be determined that Defendants will introduce documents that Plaintiff is not already in
possession of, Defendants will make those documents available for Plaintiff in advance of trial.
WHEREFORE, Defendants respectfully request this Court to quash Plaintiff's discovery
requests.
Respectfully submitted,
ABOM & KU1VlAKIS, UP
. J?Lr
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Mi T. Traxler, Esqwre /
36 S. Hanover Street
Carlisle, P A 17013
(717) 249-0900
ID No. 90961
AttDrnej fOr lJefrnt:hnts
v
i
CERTIFICATE OF SERVICE
AND NOW, I, Michael T. Traxler, of ABOM & KUTUlAKIS, liP, hereby
certify that I did serve or cause to be served a true and correct copy of the foregoing
Defendants' Objections to Plaintiff's Discovery Requests by First Class U.S. Mail at
the following:
David A. Baric, Esquire
O'BRIEN, BARIC AND SCHERER
17 West South Street
Carlisle, PA 17013
Respectfully submitted,
ABOM & KUTULAKIS, LLP
DATE Ij//j/o ~
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Michael T. Traxler, Esquire
36 S. Hanover Street
Carlisle, PA 17013
(717) 249-0900
.
.
CERTIFICATE OF SERVICE
I hereby certify that on November 2L, 2004, I, David A. Baric, Esquire of O'Brien,
Baric & Scherer, did serve a copy of the Motion To Dismiss Objections To Interrogatories and
Request For Production Of Documents, by first class U.S. mail, postage prepaid, to the parties
listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, Pennsylvania 17013
David A. Baric, Esquire
ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LAW
JOSEPH D. KLOZA
And WANDA M
CRAWFORD KLOZA,
Husband and wife,
Defendants
NO. 04-4656 CIVIL TERM
ORDER OF COURT
AND NOW, this 3rd day of January, 2005, upon
consideration of Plaintiff's Motion To Dismiss Objections to
Interrogatories and Request for Production of Documents, and
following a discovery conference held in the chambers of the
undersigned judge on this date at which Plaintiff was represented
by David A. Baric, Esquire, and Defendants were represented by
Michael T. Traxler, Esquire, Plaintiff's motion is granted to the
extent that Defendants are directed, within 30 days of today's
date, to provide written, verified answers to the interrogatories
in question and to make available for inspection and such copying
as Plaintiff desires the items sought in Plaintiff's Request for
.
Production of Documents to Plaintiff's Counsel.
By the Court,
David A. Baric, Esquire
19 West South Street
Carlisle, PA 17013
For the Plaintiff
cc:
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Buck Shuller
01/18/05
EXHIBIT "B"
TRUE COPY FROM ~ECOR(J
tn Tlltimony whereof, I hera 0010 seI my haJlCl
and the seal of said ~ at Call1sIe. Pa.
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ProtllonotalV
Michael T. Traxler, Esquire
36 South Hanover Street
Carlisle, PA 17013
For the Defendants
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Law Offices
O'BRIEN, BARIC & SCHERER
J 9 West South Street
Carlisle, Pennsylvania J 70/3
Robe" L O'Brien
David ,'1 Baric
Micho.,, A. Scherer
(117) 249-6873
Fax (1 J 7) 249-5755
direct: dbaric@obsJaw.com
February 2, 2005
VIA FACSIMILE: (717) 249-3344
Michael T. Traxler, Esquire
Abom & Kutulakis
36 South Hanover Street
Carlisle, Pennsylvania 17013
RE: Orrstown Bank v. KIoza
Dear Michael:
Pursuant to the Order of Court of January 3, 2005, verified answers to interrogatories and
production of the requested documents were to be provided on or before the date of this
correspondence.
I write to ask the verified answers be provided and to confirm a date and time for my
inspection of the records.
Very truly yours,
~~~CHERER
David A. Baric, Esquire
DAB!j1
cc: ~huIler
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dab.dir/orrstownbanklklozaltraxler2.ltr
EXHIBIT "C"
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CERTIFICATE OF SERVICE
I hereby certifY that on February / () , 2005, I, David A. Baric, Esquire of O'Brien,
Baric & Scherer, did serve a copy of the Motion For Sanctions, by first class U.S. mail, postage
prepaid, to the parties listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, Pennsylvania 17013
David A. Baric, Esquire
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ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LAW
JOSEPH D. KLOZA
And WANDA M.
CRAWFORD KLOZA,
husband and wife,
Defendants
NO. 04-4656 CIVIL TERM
ORDER OF COURT
AND NOW, this 18th day of February, 2005, upon consideration of Plaintiffs
Motion for Sanctions, a hearing is scheduled for Monday, April II, 2005, at 2:30 p.m., in
Courtroom No. I, Cumberland County Courthouse, Carlisle, Pennsylvania.
BY THE COURT,
r
A5avid A. Baric, Esq.
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19 West South Street
Carlisle, PA 17013
Attorney for Plaintiff
~ael T. Traxler, Esq.
36 South Hanover Street
Carlisle, PA 17013
Attorney for Defendants
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ORRSTOWN BANK,
Plaintiff
IN THE COURT OF COMMO PLEAS OF
CUMBERLAND COUNTY, P NNSYLV ANlA
NO. 2004-4656 CIVIL TERM
CIVIL ACTION-LAW
v.
JOSEPH D. KLOZA and
WANDA M. CRAWFORD KLOZA :
husband and wife,
Defendants
PRAECIPE TO DISCONTINUE
TO THE PROTHONOTARY:
Kindly mark the above-captioned action as having been settled and di continued with
prejudice.
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Respectfully submitted,
0L;:thH
David A. Baric, Esquire
J.D. 44853
19 West South Street
Carlisle, Pennsylvania I 13
(717) 249-6873
Attorney for Plaintiff,
Orrstown Bank
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CERTIFICATE OF SERVICE
I hereby certifY that on April S, 2005, I, David A. Baric, Esqui of O'Brien, Baric &
Scherer, did serve a copy of the Praecipe To Discontinue, by first class U.S. ail, postage prepaid,
to the parties listed below, as follows:
Michael T. Traxler, Esq.
Abom & Kutulakis, LLP
36 South Hanover Street
Carlisle, Pennsylvania 17013
d.
David A. Baric, sqUIre
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ORRSTOWN BANK,
Plaintiff
v.
JOSEPH D. KLOZA
And WANDA M.
CRAWFORD KLOZA,
husband and wife,
Defendants
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
CIVIL ACTION - LAW
NO. 04-4656 CIVIL TERM
IN RE: PLAINTIFF'S MOTIONS FOR SANCTIONS
ORDER OF COURT
AND NOW, this 13th day of April, 2005, upon consideration of Plaintiff's
praecipe to settle and discontinue with prejudice filed on April 4, 2005, the hearing
scheduled in the above matter for April 11, 2005, is cancelled.
BY THE COURT,
v6avid A. Baric, Esq.
19 West South Street
Carlisle, P A 17013
Attorney for Plaintiff ')
Aichael T. Traxler, Esq.
36 South Hanover Street
Carlisle, P A 17013
Attorney for Defendants
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