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HomeMy WebLinkAbout12-4468 ti Wayne M. Pecht, Esquire Attorney I.D. No. 38904 Rob Bleecher, Esquire Attorney I.D. No. 32594 Pecht & Associates, PC 1205 Manor Drive, Suite 200 Mechanicsburg, PA 17055 (717) 691-9809 r; (tF t f l 1 EI "4,E ICJ F` 1 a JOHN DETRICK and IN THE COURT OF COMMON PLEAS MOTORING USA, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW NO. U( GRADY PFEIFFER and DAVE PEREWITZ and ED KERR and DONNIE SMITH, Defendants NOTICE TO DEFEND 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 LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION LAWYER REFERRAL SERVICE 32 SOUTH BEDFORD STREET CARLISLE, PA 17013-3308 1-800-990-9108 717-249-3166 %)o ?s Cr CkA S?Yb la anoolsg NOTICIA LE HAN DEMANDADO A USTED EN LA CORTE. Si usted quiere defende se de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de partir de la fecha de la demanda y la notifcacion. Usted debe presentar una apariencia escrita o en persona o por abodago y archivar en la corte en forma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y peude entrar una orden contra usted sin previo adviso o notificacion y por cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o sus propiedades o ostros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO IMMEDIATAMENTE. SI NO TIENT ABOGADO O SI NO TIENE EL D1NERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION LAWYER REFERRAL SERVICE 32 SOUTH BEDFORD STREET CARLISLE, PA 17013-3308 1-800-990-9108 717-249-3166 Wayne M. Pecht, Esquire Attorney I.D. No. 38904 Rob Bleecher, Esquire Attorney I.D. No. 32594 Pecht & Associates, PC 1205 Manor Drive, Suite 200 Mechanicsburg, PA 17055 (717) 691-9809 JOHN DETRICK and MOTORING USA, Plaintiffs V. GRADY PFEIFFER and DAVE PEREWITZ and ED KERR and DONNIE SMITH, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. COMPLAINT AND NOW come the Plaintiffs John Detrick and Motoring USA, LLC by and through their attorneys Pecht & Associates, PC and assert the following: PARTIES 1. Plaintiff John Detrick (hereinafter "Detrick" or "Plaintiff Detrick") is an adult individual, and a Pennsylvania resident, and the controlling member of MOTORING USA, LLC., who lives at 240 Hickory Road, Carlisle, PA 17015; MOTORING USA, LLC (hereinafter "Plaintiff Motoring USA") is a Pennsylvania limited liability company with an address of 240 Hickory Road, Carlisle, PA 17014. (Plaintiffs John Detrick and MOTORING USA, LLC are sometimes collectively referred to as "Plaintiffs".) 2. Defendant Ed Kerr is an adult individual and member of Hamsters USA who resides at 157 Glendale Street, Carlisle, PA 17013 and who does business through Hamsters USA, inter alia, in Pennsylvania. 3. Defendant Grady Pfeiffer is an adult individual and member of Hamsters USA who resides at 9795 Megan Terrace, Escondido, CA 92026 and who does business through Hamsters USA, inter alia, in Pennsylvania. 4. Defendant David Perewitz is an adult individual and member of Hamsters USA who resides at 910 Plymouth Street, Bridgewater, MA 02324 and who does business through Hamsters USA, inter alia, in Pennsylvania. 5. Defendant Donnie Smith is an adult individual and member of Hamsters USA who resides at 10594 Radisson Road NE, Minneapolis, MN 55449 and who does business through Hamsters USA, inter alia, in Pennsylvania. 6. The parties are all members of Hamsters USA. Hamsters USA is both a social organization with a stated social purpose as well as a business entity with an unknown organizational structure that does business in Pennsylvania and which is used by some in the "leadership" to advance their own business agendas and self interests. VENUE 7. Venue is appropriate in Cumberland County, Pennsylvania pursuant to Pa.R.C.P. No. 2156. 8. Cumberland County, Pennsylvania is the most appropriate forum in which to file this action: Plaintiff Detrick is a Cumberland County, Pennsylvania resident and Plaintiff Motoring USA, LLC is a registered Pennsylvania limited liability company; at least one of the Defendants is a Pennsylvania. resident, and one or more other Defendants have done business in 2 Pennsylvania, i.e., at least two Defendants, and Plaintiff, have done business at the Carlisle Car Show, Carlisle, Pennsylvania for many years; in addition, several members of Hamsters USA, who are not named defendants, live in Pennsylvania. FACTS 9. Defendants do business in Pennsylvania under various company names; moreover, because they are members of Hamsters USA, which is both a social organization and a business association, when members do business for their individual companies, they also are doing business as members of Hamsters USA and derive business benefits from that membership. 10. Plaintiff Detrick has been a member of the Hamsters USA organization since 2004. 11. Plaintiffs are the leasing agent and/or manager for several land owners in Sturgis South Dakota and Plaintiffs rent out space to vendors at the annual Sturgis Motorcycle Rally held in Sturgis, South Dakota during the summer of each year. 12. On or about August 28, 2011, Plaintiff Detrick received a call from Defendant David Perewitz. Perewitz stated that the purpose of the call was "fact finding" resulting from "complaints" by one or more other Hamsters USA members related to a business decision made by Plaintiff Detrick. During this call, Plaintiff Detrick was asked if he could "fix" the situation to the complaining members' satisfaction. 13. The caller expressed no regard for Plaintiff's own business operations or the effect "fixing" the situation would have on those operations. 14. Plaintiff Detrick was unable to "fix" the situation to the caller's satisfaction. 3 15. Subsequent to the call received by Plaintiff Detrick, he received a letter terminating his membership in the Hamsters USA organization, along with a "refund check" for money paid by Plaintiff Detrick for membership. 16. That letter from Hamsters USA dated September 16, 2011, was purportedly signed and/or authorized by all of the named Defendants plus four other members of the leadership and pertained to Plaintiff Detrick's membership in Hamsters USA. (The names of the four other members of the "leadership" were typed on the letter, but those four have issued disclaimers denying any connection with, or prior knowledge of, or ratification of, the termination). That letter stated in part: "It has been brought to our attention that you have engaged in actions that have created conflict with a number of your Hamster brothers, this is something that we cannot let go without consequences. Because of this we are terminating your membership in the Hamsters USA." 17. Although the letter purported to represent the unanimous vote of the eight (8) members of the "leadership," apparently there was not a majority vote to oust Plaintiff Detrick since four of the eight have disclaimed any involvement in the termination. 18. Defendants have thus acted without authority and without due process in terminating Plaintiff Detrick's membership in Hamsters, USA. 19. The letter distressed and confused Plaintiff Detrick. 20. Contrary to the assertions of Defendant in the letter of September 16, 2011, during the term of his membership in Hamsters USA, Plaintiff Detrick has never been involved in a single incident that resulted in even the remotest conflict at any formal or informal Hamsters USA activity. 4 21. Plaintiff Detrick has quietly and peacefully enjoyed the social events and gatherings of the Hamsters USA and has never created a moment of conflict nor engaged in an action that can be described as adversarial. 22. Plaintiff Detrick has used his journalistic skills and professional media activities to support the Hamsters USA organization. 23. Plaintiff Detrick has in the past purposefully and successfully portrayed the Hamsters USA as a group having character, generosity, and a sense of deep caring for the well- being of the fellow members of the organization. 24. Plaintiff Detrick believed that to be true at the time he wrote the article so portraying them. 25. For each of the past three years, Plaintiff Detrick has successfully worked as a committee member who was responsible for acquiring donations for the annual Children's Care Hospital and School charity auction hosted by the Hamsters USA. 26. During that time, Plaintiff Detrick and his wife have personally donated more than $5,000 in high-quality items to support this important event. 27. As the operator of Motoring USA LLC, Plaintiff Detrick has on occasion transacted business with other members of the Hamsters USA organization. 28. In each and every instance, Plaintiff Detrick has fulfilled his contractual obligations in their entirety. 29. Importantly, the business relationships and transactions conducted by Plaintiff Detrick are entirely independent and separate of the Hamsters USA organization or any affiliation with that group. 5 30. Plaintiff Detrick has never created a single incident of conflict in his capacity as a member of the Hamsters USA organization. 31. Nonetheless, a complaint by one or more Hamsters USA members, totally unrelated to the Hamsters USA organization but directly related to the independent operation of Plaintiff's business, has resulted in the termination of his membership. 32. Plaintiff Detrick has a responsibility to operate his business to serve the interests of his clients. 33. The facts of the events which occurred in 2011 make clear that certain members of Hamsters USA were, and still are, trying to control or affect Plaintiffs' business decisions by exerting improper pressure in the form of punishment, retribution, and interference with Plaintiffs' business relationships. 34. The "problems" that the Hamsters USA member wanted Plaintiff Detrick to "fix" involved a space (for vendor retail sales) over which Plaintiff Detrick had control as manager and/or leasing agent at the Sturgis, South Dakota Motorcycle Rally. 35. A Timeline with a recounting of events leading up to the purported termination of Plaintiff Detrick's membership shows the questionable business practices of some Hamsters USA members, including some of the Defendants, and refutes Defendants' false and defamatory statements. (See the Timeline attached as Exhibit "A" incorporated by reference, and made a part hereof.) 36. Plaintiffs have had business relations with other members of Hamsters USA but in each and every business relationship with any member of the Hamsters USA organization the transactions have been totally independent and unrelated to the Hamsters USA organization. 6 37. In each and every case, Plaintiffs have fulfilled all contractual obligations to that member or members and have gone well beyond the scope of what was required; that level of integrity and professionalism has not been reciprocated by certain Defendants as recounted in the Timeline of events attached as Exhibit "A". 38. On information and belief, Hamsters USA includes as members some of the most powerful individuals in the :motorcycle industry - an industry in which Plaintiff Detrick makes his living. 39. The termination of Plaintiff Detrick's membership can be described as an action of retribution and punishment, but also as an action of ostracism designed to harm his business relations. The Defendants' conduct resulted from Plaintiff Detrick not conducting his business activities as some in the Harnsters USA "leadership" believe to be in their personal best interests. 40. Four members of the self appointed "leadership" of Hamsters USA punished Plaintiff Detrick by terminating his membership based on a business matter that was totally unrelated to the Hamsters USA social organization or business activity; this action thereby interfered with Plaintiffs' business relationships with Hamster USA members as well as with others in the industry. 41. The actions of Defendants have caused significant harm to Plaintiffs' business by which Plaintiffs make a livelihood; due to the actions of Defendants, Plaintiffs have suffered an as yet unknown amount of revenue loss and Plaintiff Detrick's reputation has been damaged as a result of Defendants' actions. 42. It is believed and therefore averred, that the personal interests of some of the members of Hamsters USA "leadership" was the basis of this unjust and unlawful action of terminating Plaintiff's membership; such action is but the latest example of the pattern and 7 practice of some in the "leadership" in promoting their own self interests at the expense of others in the organization; e.g., on information and belief, Plaintiffs aver Defendants have removed members in the past for reasons of pure self-interest. 43. Hamsters USA "leadership" were not elected, have no legal basis for their control of the organization and its funds, and did not, and still do not, have the authority to terminate a membership. 44. Plaintiff Detrick became a member of the Hamsters USA organization in 2004. He has paid membership dues for each of the past eight (8) years. 45. Plaintiff Detrick is a non-controlling member of Hamsters USA, and has the right to review the annual financial statements and tax returns for the years of his membership. However, Plaintiff Detrick has been denied access to those documents by some in the "leadership." 46. On information and belief, the Hamsters USA group is not a formally organized entity. 47. It is believed and therefore averred, that one or more Defendants on behalf of Hamsters USA has created a banking relationship in the state of Minnesota; however, it is believed and therefore averred, that Hamsters USA has not registered with the Minnesota Department of State or with the Minnesota Department of Revenue. (See Exhibit "B" attached hereto, incorporated by reference, and made a part hereof.) 48. On information and belief, the Hamsters USA organization is not registered as a non-profit charitable entity at the federal level. 49. On information and belief, Hamsters USA has failed to register with the federal government or as an entity in the state where it is actively conducting its banking affairs. It is 8 believed and therefore averred, that consequently Hamsters USA is not filing the necessary tax returns at either the state or federal levels and such failure to file is improper. 50. On information and belief, members of Hamsters USA have decided not to formally organize Hamsters USA; therefore, Hamsters USA does not meet even the most basic qualifications to be a tax exempt entity. 51. It is believed and therefore averred, that income from membership dues during the time of Plaintiff Detrick's membership could approach $500,000.00. 52. The Hamsters USA organization was formed in 1979 and it is believed and therefore averred, that taxable non-reported income for membership dues, meal charges, sales of branded merchandise, and other activities could potentially be several million dollars. 53. In spite of that income, it is believed and therefore averred, that no state or federal tax returns have been filed by Hamsters USA. 54. The membership of Hamsters USA is offered no information or documentation showing how the majority of the annual dues are used. 55. It is believed and therefore averred, that organization benefits have inured to the benefit of one or more persons in a "leadership" position of Hamsters USA. 56. In a letter dated December 9, 2011, from counsel for Hamsters USA, it was stated that the organization does not have official rules and regulations that define the policy, protocol, and practices of the Hamsters USA organization. 57. However, it is believed and therefore averred, that the Defendants have attempted to mislead Plaintiff, such an effort to mislead is shown by the set of requirements published and distributed by the "leadership" of the Hamsters USA organization on March 11, 2011. (See Exhibit "C" which is attached, incorporated by reference, and made a part hereof.) 9 58. Defendants' attorney's letter to Plaintiff Detrick of December 9, 2011 claimed that Hamsters USA had no policy, protocol, and practices, but then simultaneously referred to two such policies and/or practices. 59. For example, in Defendants' attorney's response letter dated December 9, 2011 to Plaintiffs' attorney, Defendants offered Plaintiff Detrick the opportunity to contest his dismissal at an annual meeting; this annual meeting is obviously a regular and formal organization business function. 60. This offered "hearing" has all the indicia of a formal appeals court with the Hamsters USA "leadership" as the self-appointed prosecutor, judge and jury. 61. Further, ironically, some in the "leadership" declare the Hamsters USA organization to be an "at-will social friendship group," but simultaneously state that it does not have the by-laws necessary to define exactly who the members serve at the will of. 62. Moreover, Defendants' attorney's response letter of December 9, 2011, claimed that the organization had no assets; on information and belief, a review of the facts portrays a different story. 63. In 1995, Hamsters USA "leadership" member David Perewitz filed for federal trademark rights protection with the USPTO for the designation "Hamsters USA." (See Exhibit "D" attached hereto, incorporated by reference, and made a part hereof.) 64. In 2005 and again in 2007, an entity referring to itself as Hamsters, Inc. using the address of "leadership" member Grady Pfeiffer, again filed for trademark rights protection with the USPTO for the designation "Hamster" and "Hamsters USA" respectively. (See Exhibits "E" and "F" attached hereto, incorporated by reference, and made a part hereof) 10 65. Clearly, some in the "leadership" view the Hamsters USA brand and logo as an asset. 66. Some in the Hamsters USA organization claim it has no "commercial purpose." However, in one of his filings with the USPTO, Defendant Perewitz requested class protection for "motorcycle-related information services, entertainment, organizational services, fraternal club services, clothing and clothing accessories for motorcycle riders." 67. The scope of this request by Defendant Perewitz included "entertainment" and merchandising of "clothing and clothing accessories" affirming his intent to preserve commercial rights and to operate commercially. 68. The official "Hamsters USATM Do's and Dont's" (see Exhibit "C") claim trademark rights that do not exist with the USPTO; this shows the commercial value that Defendants place on the Hamsters USA brand and logo. The "Do's and Dont's" shows a level of enforcement which is extraordinary and not typically exercised to control a "social group of friends." 69. In January of 2005, further affirming the commercial intentions of some in the Hamsters USA "leadership," Defendant Pfeiffer took the significant step of formally registering "Hamsters Inc." as a business entity with the Secretary of State in California. (See Exhibit "G" attached hereto and made a part hereof.) 70. Defendants have failed upon request to specify a complete and detailed description of the actions alleged to have been undertaken by Plaintiff Detrick that resulted in the purported termination of his membership. This leads to the conclusion that Defendants terminated Plaintiff Detrick fbr unwritten, undefined, and illegal reasons and that Defendants do not want to make the reasons public. 11 71. Hamsters USA members in general may have the best of intentions in efforts to maintain the group as a social club, but on information and belief, several members of the "leadership" of the Hamsters USA organization are taking actions which improperly use the supposedly non-profit group for commercial purposes and for purposes of their own self interests. 72. The letter and/or the contents of the letter terminating Plaintiff Detrick (see Exhibit "H" attached hereto, incorporated by reference, and made a part hereof.) is believed to have been sent to and/or made known to other members of Hamsters USA; this dissemination has resulted in harm to Plaintiffs' business and has resulted in harm to Plaintiff's reputation. 73. The letter and/or the contents of the letter terminating Plaintiff Detrick is believed to have also been sent to, and/or the contents thereof made known to, non-Hamster USA members with whom Plaintiffs do business resulting in harm to Plaintiffs' business and reputation. 74. It is believed and therefore averred, that numerous persons with whom Plaintiff Detrick and Motoring USA, LLC do business, became aware of the letter and/or the false and defamatory statements contained in the letter. CAUSES OF ACTION Count I INTENTIONAL INTERFERENCE WITH CONTRACTUAL RELATIONS 75. All of the foregoing paragraphs are incorporated by reference as if fully set forth herein. 76. Plaintiffs had, and have, an existing contractual relationship with numerous businesses and persons who are members of Hamsters USA. 12 77. Plaintiffs expected to develop contractual relationships with prospective clients who are members, or contacts of members, of Hamsters USA. 78. Defendants had no privilege or justification for their statements, conduct or actions. 79. Defendants intentionally acted in a malicious fashion to prevent other business people from entering into or continuing a business relationship with Plaintiffs. 80. Defendants purposely induced or otherwise purposely attempted to induce others not to enter into or continue a prospective contractual relation with Plaintiffs. 81. By termination of Plaintiff Detrick's membership in Hamsters USA, Defendants caused Plaintiffs loss due to Plaintiff Detrick's inability to interact with other members of Hamsters USA at membership activities. By this conduct Defendants harmed Plaintiffs' ability to do business with existing and with prospective customers. 82. Defendants are therefore responsible to Plaintiffs for any losses suffered as a result of the prevention of, or interference with, its contractual relationships. 83. Defendants attempted to induce Plaintiffs to forego their own future business profit for the benefit of certain members of the "leadership" of Hamsters USA. 84. Plaintiff Detrick was threatened by one or more Defendants and when Plaintiff Detrick refused to comply with the demands of Defendants, Plaintiff was terminated from the organization. 85. The Defendants' conduct was wrongful and tortuous and constituted, inter alia, defamation, misrepresentation, and injurious falsehood. 86. The Plaintiffs had no idea that some in the "leadership' of the Hamsters could, or would, interfere with the business interests of a member. 13 87. It is believed and therefore averred, that the some in the "leadership" sought to advance their own interests by harming Plaintiffs' business interests. 88. Defendants' acts were done for the purpose of causing interference with Plaintiffs' business. 89. On information and belief, one or more of the Defendants aspire to become leasing consultants, agents and/or managers of real estate at other motorcycle events, and to lease space during the Sturgis Motorcycle rally and, therefore, view Plaintiffs as competitors. If Plaintiff Detrick is diminished in stature and/or his reputation is harmed, others may take business away from him. 90. Defendants apparently believe they and their friends and business associates should be able to ignore standard ethical business practices, make their own rules, and have Plaintiffs take all the business risk when doing business with them. (See Timeline attached as Exhibit "A".) Defendants have thereby violated society's interest in protecting business competition as well as society's interest in protecting the individual against interference with his or her pursuit of a livelihood. 91. The Plaintiffs are entitled to be fairly and adequately compensated for all monetary losses suffered by the Plaintiffs as a result of the Defendants' acts. 92. Plaintiffs have been injured as a direct result of the conduct of Defendants. 93. The conduct of Defendants was a substantial factor in, and the proximate cause of, Plaintiffs' injuries. WHEREFORE, Plaintiff prays this Honorable Court will find in its favor and against Defendants and will enter judgment against Defendants and award such damages as the Court 14 deems appropriate, including punitive damages and fees and costs or, alternatively, such damages as Plaintiff proves at trial in this matter. Count II CIVIL CONSPIRACY 94. All of the foregoing paragraphs are incorporated by reference as if fully set forth herein. 95. The elements of a civil conspiracy are: (1) a combination of two or more persons acting with a common purpose to do an unlawful act by unlawful means or for an unlawful purpose; (2) an overt act done in furtherance of the common purpose; and (3) actual legal damage. 96. As described above, Defendants acted together to unlawfully interfere with Plaintiffs' business relationships by terminating Plaintiff Detrick's membership with Hamsters USA and by spreading falsehoods about him. 97. As a direct result of the conduct of Defendants, Plaintiff Detrick has suffered financial and physical injuries. 98. The conduct of Defendants was a substantial factor in and the proximate cause of Plaintiffs' injuries. WHEREFORE, Plaintiff prays this Honorable Court will find in its favor and enter judgment against Defendants and award such damages as the Court deems appropriate, including punitive damages and costs. 15 Count III INJURIOUS FALSEHOOD: COMMERCIAL DISPARAGEMENT 99. All of the foregoing paragraphs are incorporated by reference as if fully set forth herein. 100. The elements of commercial disparagement are made out where (1) the Defendant(s) published a disparaging statement concerning the business of the Plaintiff, (2) the statement was false; (3) the Defendant intended that the publication cause pecuniary loss or Defendant reasonably should have known that publication would result in pecuniary loss; (4) the publication caused actual pecuniary loss; and (5) the publisher knew the statement was false and/or or acted in reckless disregard of its truth or falsity. 101. Here, the statements in the letter were false, the letter and the alleged facts were widely disseminated among the Hamster USA membership, and the effect was damage to Plaintiff Detrick's personal and business reputation which has resulted, and will continue to result, in financial loss by Plaintiffs. 102. It is believed and therefore averred that the drafters of the statement were Defendants Pfeiffer, Kerr, and Perewitz, but at the end of the letter all of the Defendants' names were listed as signers. Defendants were motivated by self interest and by ill will toward the Plaintiffs. 103. Defendants intended to interfere with the interests of Plaintiff in a way in which Defendants were not privileged to do. 104. Defendants knew or should have known that the statements in the letter were untrue. 16 105. All of the Defendants who signed the letter, and/or agreed to terminate the membership of Plaintiff, and thereby ratified the defamatory statements, and assisted in disseminating the defamatory statements, acted to injure Plaintiffs. 106. On information and belief, the false statements of Defendants were communicated to other Hamster USA members and to non-members of Hamsters USA. 107. As a direct result of the conduct of Defendants, Plaintiffs have suffered financial and physical injuries. 108. The conduct of Defendants was a substantial factor in, and the proximate cause of, Plaintiffs' injuries. WHEREFORE, Plaintiff prays this Honorable Court will find in its favor and enter judgment against Defendants and award such damages as the Court deems appropriate, including punitive damages and costs. Count IV BREACH OF CONTRACT 109. All of the foregoing paragraphs are incorporated by reference as if fully set forth herein. 110. A breach of contract occurs when a party to the contract fails to perform any contractual duty of immediate performance or violates an obligation, engagement, or duty and that breach is material. 111. The membership agreement between Hamsters USA and its members is an enforceable agreement where members pay dues to Hamsters USA and Hamsters USA in exchange provided services to members. 17 112. When Defendants terminated Plaintiff Detrick's membership without any legitimate reason, Defendants breached the contract with Plaintiff Detrick. 113. Defendants failed to perform under the terms of the membership agreement as those terms are generally understood. 114. As a direct result of the failure of Defendants to perform their obligations under the terms of the membership agreement as those terms are generally understood, Plaintiffs suffered grave and serious financial losses. 115. The conduct of Defendants was a substantial factor in, and the proximate cause of, Plaintiff's injuries. WHEREFORE, Plaintiff prays this Honorable Court will find in its favor and enter judgment against Defendants and award such damages as the Court deems appropriate. Count V DEFAMATION 116. All of the foregoing paragraphs are incorporated by reference as if fully set forth herein. 117. The communication included in the letter of Defendants was defamatory and false. 118. The Defendants were negligent in publishing it. 119. The communication harmed Plaintiff Detrick's reputation and standing in the community. 120. The communication caused Plaintiff Detrick to be humiliated and to suffer mental anguish. 121. The communication also caused financial loss to Plaintiff Detrick. 18 122. The harm described herein would not have occurred absent the false and defamatory communication. 123. A reasonable person under the circumstances would not have published the communication. 124. Defendants failed to use ordinary care and diligence in investigating and ascertaining the true facts. 125. Defendants failed to use ordinary care and diligence and drew unreasonable conclusions or inferences. 126. Plaintiff Detrick is entitled to be fairly and adequately compensated for all harm he suffered as a result of the false and defamatory communication published by the Defendants. 127. Defendants are liable for the actual harm to the Plaintiff Detrick's reputation that resulted from the Defendants' conduct. 128. Defendants are liable for emotional distress, mental anguish, and humiliation that the Plaintiff Detrick suffered as a result of the Defendants' conduct. 129. Defendants are liable for any other special injuries that the Plaintiff Detrick suffered as a result of the Defendants' act. 130. Defendants acted intentionally or recklessly or negligently in publishing the false and defamatory communication. 131. The law presumes there is harm when a defendant publishes a false and defamatory communication with the knowledge that it is false or in reckless disregard of whether it is true or false. 132. On information or belief, the motive and purpose of the Defendants was to harm the Plaintiff and Defendants did not believe the accuracy of the publication and knew it was 19 false. Nevertheless, Defendants published the defamatory communication; Punitive damages are thus warranted in this case. 133. Plaintiff Detrick is a private individual and the defamatory communication does not involve a public concern nor was it publicized by a member of the media; therefore, there is a presumption that the defamatory statement is false and the burden is on Defendants to prove it is not false. 134. The communication by Defendants was false because it contained untrue or incomplete statements of fact and because its implication was, and is, untrue. 135. A communication is any act by which a person brings an idea to another's attention. A communication may be made by speaking or by writing words or by another act or combination of acts that result in bringing an idea to another's attention. 136. Here, the communication was in the form of a written communication and/or email, and/or spoken communication. 137. On information and belief, the communication tended to so harm the reputation of Plaintiff Detrick so as to lower his status in the estimation of the community and to deter third persons from associating or dealing with him. 138. The communication stated, and/or implies, that Plaintiff Detrick acted in a way that would be inconsistent with the proper, honest, and lawful performance of his job, profession, or office, or has a character that would make him unfit to properly, honestly, and lawfully perform his job, profession, or office. 139. The innuendoes and implications of the communication as published, as well as inferences the recipients would have drawn from what may not have been said, constitute defamatory statements. 20 140. A communication is defamatory if, taken as a whole, its implication is defamatory. 141. A communication is published when it is communicated by someone other than the person to whom it refers. 142. Plaintiffs believe, and therefore aver, that Defendants personally communicated the defamatory statement or directed or participated in another's publication of the defamatory statement. 143. The Plaintiff Detrick is entitled to be fairly and adequately compensated for the damage to his reputation suffered as a result of the Defendants' acts. 144. As a direct result of the conduct of Defendants, Plaintiff Detrick has suffered financial and physical injuries. 145. The conduct of Defendants was a substantial factor in, and the proximate cause of, Plaintiff Detrick's injuries. WHEREFORE, Plaintiffs pray this Honorable Court will find in its favor and enter judgment against Defendants and award such damages as the Court deems appropriate, including punitive damages and costs. Respectfully su,*itted, PECHTA A CIATES, PC Dated: July 18, 2012 By: Way e ..P-e-&-r,-Esquire Atto ey I. D. No. 38904 Rob Bleecher, Esquire Attorney I.D. No. 32594 1205 Manor Drive, Suite 200 Mechanicsburg, PA 17055 (717) 691-9809 Attorneys for Plaintiffs 21 VERIFICATION I, John Detrick, the Plaintiff herein, and the controlling member of Plaintiff Motoring USA, LLC, state that the averments contained in this document are true to the best of my knowledge, information and belief. Further, I am aware that any false statements made herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Dated: July 17, 2012 •? John etrick Timeline of events leading up to, during, and immediately following the Sturgis Motorcycle Rally August 8-14, 2011. February 4, 2011 Motoring USA spoke with Grady Pfeiffer of GH Marketing and Chris McGee representing Custom Chrome about the potential availability of the subject property that is owned by Lazelle Street Land Company. The timing of this conversation was at the beginning of the annual V-Twin Expo. February 6, 2011 Motoring USA received verbal confirmation from the Lazelle Street Land Company, who is the land owner of the subject property, that Motoring USA could manage the leasing of the site during the Sturgis Motorcycle Rally. February 7, 2011 Custom Chrome expresses interest in the subject property through their representative Chris McGee. February 8, 2011 Custom Chrome CEO Holger Mohr directs their representative Chris McGee to broker a deal to share the subject property with Rinehart Racing. Motoring USA is given no direct access to Rinehart Racing. Custom Chrome negotiates directly with Rinehart Racing. February 15, 2011 Custom Chrome verbally commits to the space transaction including the Custom Chrome display space, a separate installation area to be subleased by Custom Chrome to a Custom Chrome dealer, and the space to be used by Rinehart Racing. (See attached.) February 23, 2011 Judd Hollifield from Rinehart Racing states that Motoring USA must provide an additional 2,700 square feet at no additional charge in order to close a deal with Rinehart. Motoring USA agrees to the demand and Rinehart Racing verbally commits to the space. April 7, 2011 Motoring USA receives inquiry about display space from Polaris. April 8, 2011 Motoring USA begins dialog with Polaris. April 25, 2011 Custom Chrome requested a contract for the Lazelle Street Land Company space in Sturgis. Custom Chrome had not agreed to the final terms of the agreement regarding whether they were actually going to have an installation area and what the exact size and the lease price would be for the installation area and therefore Motoring USA was unable to provide a contract at that time. May 4, 2011 Custom Chrome again requested a contract for the space in Sturgis. However, Custom Chrome had still not agreed to the final terms of the agreement regarding whether they were actually going to have an installation area and what the exact size and the lease price would be for the installation area and therefore Motoring USA was still unable to provide a contract. May 7, 2011 Brian Marion representing Custom Chrome expresses concern that a competing company (i.e. Midwest Motorcycle Supply) is vending on the same location and seeks "resolution." Motoring USA advises Custom Chrome that the resolution he requested will not be forthcoming and acknowledges that he understands that Custom Chrome will no longer be using the subject property because of the conflict. However, Brian Marion from Custom Chrome states that Custom Chrome still wants the space but chooses to voice "concern and surprise that a direct competitor was booked into the same lot as CCL" Brian Marion again requests a contract, but because Custom EXHIBIT A Page 1 of 15 Chrome had not agreed to the final terms of the agreement regarding whether they were actually going to have an installation area and what the exact size and the lease price would be for the installation area, Motoring USA was still unable to provide a contract:. May 16, 2011 A Lazelle Street Land Company representative contacts Motoring USA with information from industry sources suggesting that Rinehart Racing is not going to attend the Sturgis Motorcycle Rally that summer ( in 2011). May 16, 2011 A space rental agreement is sent to Judd Hollifield at Rinehart Racing. The agreement offered does not include a first right of refusal. (See exhibit) May 16, 2011 Brian Marion representing Custom Chrome seeks pricing information for the installation area and refers to the lease component as something they are "considering." May 31, 2011 Brian Marion representing Custom Chrome states that he still has no answers regarding the proposed use of the Custom Chrome installation area space. Custom Chrome is unable to execute a contract because they have not made decisions as to their installation area. Motoring USA specifically asks Brian Marion whether Custom Chrome is considering not using the space or whether they still intend to use the space. Brian Marion responds that he is not certain as to their intentions but will find out. Consequently, Motoring USA has uncertainty as to the true intentions of Custom Chrome. June 28, 2011 Custom Chrome again requested a contract for the space in Sturgis. However, Custom Chrome had still not agreed to the final terms of the agreement regarding whether they were actually going to have an installation area and what the exact size and the lease price would be for the installation area and therefore Motoring USA was unable to provide a contract. June 29, 2011 Custom Chrome again requested a contract for the space in Sturgis. However, because Custom Chrome had still not agreed to the final terms of the agreement regarding whether they were actually going to have an installation area and what the exact size and the lease price would be for the installation area Motoring USA was unable to provide a contract July 1, 2011 (On or About) Rinehart Racing expresses concern about the location of electrical services on the property. A few weeks time period is required to work with the land owner and electrical contractor to relocate the electrical outlets underground. June 29, 2011 Motoring USA requests a conference call with all involved parties in order to finalize terms so everyone can move forward with certainty. Judd Hollifield from Rinehart states that "perhaps" he could be available and Holger Mohr from Custom Chrome declines to participate in a conference call regarding the space he wants to lease for his company. June 29, 2011 Judd Hollifield from Rinehart Racing sends an e-mail to Motoring USA stating numerous concerns he has with the vending site including potentially exchanging the location being used by Custom Chrome and states a concern about the noise from a Dyno they intended to utilize during the event. He states "unfortunately, we are only weeks away and have no other choice but to try and make the best out of what we have." Hollifield also stated that "furthermore, Rinehart would like your assurance that there will be no issue with our Dyno trailer and I trust that with your internal relationships with the city, you can give us that assurance." At this point in time, Motoring USA EXHIBIT A Page 2 of 15 has no assurance if Rinehart Racing truly intends to use the space and pay for it, or if the relationship between Rinehart Racing and Custom Chrome will continue. June 30, 2011 Custom Chrome again requested a contract for the space in Sturgis. Once again, because Custom Chrome had not agreed to the final terms of the agreement regarding whether they were actually going to have an installation area and what the exact size and the lease price would be for the installation area, Motoring USA was unable to provide a contract. Motoring USA again asked Custom Chrome to make a decision on these issues, but with no success. July 5, 2011 Custom Chrome again requests a contract for the space in Sturgis. At that time Motoring USA is able to finalize the agreement because Custom Chrome has finally made a decision regarding the installation area. Importantly, the agreement does not include a first right of refusal for Custom Chrome. July 5, 2011 Motoring USA sends a space rental agreement to Grady Pfeiffer of GH Marketing, agent for Danny Gray, with a payment-in-full due date of July 19, 2011. Importantly, the agreement does not include a first right of refusal for Danny Gray. July 19, 2011 Judd Hollifield from Rinehart Racing is advised through e-mail by Motoring USA that the contract sent on May 16, 2011 to Rinehart Racing had not been executed and received back by Motoring USA and the deposit which was due June 1, 2011 had not been paid. Motoring USA requests a signed contract and payment in full. The contract date for final payment was August 1, 2011 or just ten (10) days from the current date. Since the deposit which had been due six weeks earlier had not been received, Motoring USA was concerned payment might be delayed for an indefinite period of time or not be made at all. Without any discussion with or approval by Motoring USA, Rinehart Racing apparently decides not to make full payment and subsequently sends only the 50% deposit that was due some six (6) weeks earlier. An incompletely executed agreement was sent as well, i.e., the agreement did not have the printed name disclosing who the signer was, or the title of the signer, or the date of signing. (See attached.) July 19, 2011 Mary Michlitsch from Polaris asks for a statement of availability for 2012 of the subject property "ASAP" and states they are nervous and ready to look at other display spaces. July 19, 2011 Custom Chrome provides e-mail copy of executed agreement and represents that an executed agreement and payment had been sent on July 15, 2011. July 27, 2011 Grady Pfeiffer of GH Marketing requests that duplicate invoices for Danny Gray be sent to the Danny Gray organization. Original payment of $4,000.00 had been due in full on July 19, 2011. August 3, 2011 Motoring USA begins requesting a meeting with Rinehart Racing and final payment, but Rinehart declines this meeting repeatedly by stating they are too busy or simply being essentially non-responsive to the request. August 3, 2011 (On or About) Rinehart Racing meets with Terry Rymer of Black Hills Harley-Davidson about vending space for 2012. August 5, 2011 Three days before the start of the event, and twenty days after it was due, GH Marketing finally provides payment in full for Danny Gray. August 7, 2011 Motoring USA requests a meeting with Custom Chrome, but Custom Chrome will not commit to a date, time, or place to meet. EXHIBIT A Page 3 of 15 .i August 7, 2011 Bob Davis from lazelle Street Land Company signs a three (3) year lease with Polaris Industries. August 8, 2011 Sturgis Motorcycle Rally officially begins. August 12, 2011 Rinehart Racing provides final payment eleven days after it was due and 30 days after it was requested. August 13, 2011 Brian Marion representing Custom Chrome is notified that Custom Chrome will not have access to the same display space in 2012 as it did in 2011. August 13, 2011 Rinehart is notified that they will not have access to the same display space in 2012 as it did in 2011. Gerald Rinehart and Judd Hollifield are shown an alternate space and they respond positively. Gerald Rinehart states that Custom Chrome will not be included in Rinehart Racing negotiations for space in 2012. August 14, 2011 Judd Rinehart sends John Detrick a text message saying "thank you" and that he "counts you (John Detrick) as a friend." He references completing negotiations on the alternate space in the coming week. (See exhibit attached.) August 15, 2011 Holger Mohr from Custom Chrome presents a map for the future layout of the subject property used in 2011 that shows that either Rinehart Racing or Danny Gray will not be able to fit on the site. He also requires that Motoring USA terminate the Polaris agreement "in order to continue to have us (Custom Chrome) as a business partner." August 17, 2011 Judd Hollifield from Rinehart Racing sends e-mail stating that he received "two calls from Brian Marion and an email from Holger Mohr seeking information about the status of availability of the property." In this e-mail Judd Hollifield apologizes for the "headache" with Custom Chrome. August 18, 2011 Grady Pfeiffer of GH Marketing contacts Motoring USA about the Polaris deal which he was advised of previously. He claims no prior knowledge of the Polaris deal and questions if Custom Chrome, Rinehart, and Danny Gray have all lost their spaces for 2012. He asks specifically how Custom Chrome and Rinehart Racing "reacted" and if they were given a chance to "renew." Motoring USA responded with a detailed description of the facts and of the space available. August 19, 2011 John Detrick received a phone call from Gerald Rinehart alleging that Rinehart Racing did not receive a contract until the week before the Sturgis Motorcycle Rally and claiming Rinehart Racing had a first-right-of-refusal to the property that Rinehart used in 2011. Motoring USA sent an e-mail to Gerald Rinehart later that afternoon showing categorically that the allegations by Gerald Rinehart were unfounded and wrong. (See attached.) August 20, 2011 Grady Pfeiffer from GH Marketing stated in an e-mail to John Detrick that Motoring USA had an obligation to provide a first right of refusal to Danny Gray, Custom Chrome, and Rinehart Racing. He offered his opinion that not getting contracts and payments on time was no excuse for choosing to do business with Polaris. He threatened directly that he was going to make the situation a "problem" for John Detrick. (See attached.) August 20, 2011 Judd Hollifield from Rinehart Racing is actively negotiating with Motoring USA for the alternate site and is requesting financial information. EXHIBIT A Page 4 of 15 August 22, 2011 Grady Pfeiffer of GH Marketing stated that Danny Gray did not want the spot without Rinehart or Custom Chrome being included as laid out in 2011. This statement came after Motoring USA offered Grady Pfeiffer of GH Marketing, on behalf of Danny Gray, the exact space they used in 2011 at the same price. This also came after Custom Chrome CEO Holger Mohr provided the layout map to Motoring USA that showed he had no intention of allowing the same layout with Rinehart Racing and Danny Gray and Custom Chrome as used in 2011. August 22, 2011 Brian Marion representing Custom Chrome directly contacts a Motoring USA client that owns land. Brian Marion states that it is his obligation to protect Custom Chrome even if that action requires knowing contractual interference with an existing Motoring USA client. August 28, 2011 John Detrick receives phone call from Hamsters USA leadership member Dave Perewitz asking if the situation can be rectified by allowing Custom Chrome and Rinehart Racing to have the subject property in future years. John Detrick states that it is not possible because he has committed to another vendor. In view of the failure of each of the vendors to pay deposits and pay final payments on time and their failure to provide executed contracts on time, all of which are breaches of the contracts, Detrick believes that he is putting his client's interests at risk if he accedes to their demands. September 16, 2011 John Detrick receives letter from Hamsters USA that his membership was being terminated due to having allegedly having "created conflict with a number of your Hamster brothers" and because "this is something that we cannot let go without consequences." December 9, 2011 The attorney representing Hamsters USA acknowledges that the attempted membership termination of John Detrick from the Hamsters USA organization is the result of what he alleges to be "business behavior" and failure to operate Motoring USA in the "spirit of fraternal brotherhood." EXHIBIT A Page 5 of 15 ATTACHMENTS EXHIBIT A Page 6 of 15 _f VENDOR SPACE LEASE AGREEMENT 2011 Sturgis Motorcycle Rally a August 8 - August 14, 2011 LEESEE INFORMATION Company: Address: City/State/Zip Internet: Rinehart Performance Exhausts 19 Ziilicoa Street Asheville, NC 28801 www,Nnehartracing.com Celt: PRODUCTS/SERVICES LOi Contact: Judd Hollifield E-mail: judd@rinehartracing.com Phone: (828) 350-7653 (828) 777-3767 Fax: (828) 255-8299 Type: Display Only ? Display and Sale R/I Product Description: Industry Leading Performance Exhausts SITE INFORMATION (MAP ATTACHED) Space: A Move-In: Move-in must be completed by Thursday, August 4, 2011. Move-Out: Move-out must not begin before 6:00 PM Saturday, August 13, 2011. Vending Hours: 9:00 AM to 8:00 PM, Saturday, August 6 to Saturday, August 13, 2011. PAYMENT Total: Deposit: Balance: 340,000.00 $20,000.00 $20,000.00 Due Date: dune 1, 2011 Due Date: August 1, 2011 Note: All payments are non-refundable. Credit card payments require a 2.5% surcharge added to any payment amount. I have read and accepted t f this three-page lease agreement with Motoring USA, LLC. Authorized Vendor Signature: date: Printed/Typed Name: _ Titte, Check Enclosed: MasterCard: F] VISA: n Credit Card # Exp. Date: Security Code: Name on Card: Signature: Billing Address (if different): Company: Address: Citv/State/Zio Check Payee and Remittance Address: Motoring USA, LLC 240 Hickory Road Carlisle, PA 17105 Comments: EXHIBIT A Page 7 of 15 TERMS AND CONDITIONS 1. TERM: The term of this tease shall commence on the 41h day of August 2011, and shalt terminate on the 1411 day of August 2011, both dates inclusive. 2. CONSIDERATION: In consideration for the Lease of the subject property, the Lessee shall pay to the Lessor the dollar amounts outlined on Page 1 before the required deadlines. 3. USE OF PREMISES: The parties understand that it is the Lessee's intent to use the teased property for sales or display during the Sturgis Motorcycle Rally. The Lessee represents that he/she will be showing and selling motorcycles parts, accessories, and other related merchandise on the property. The Lessee agrees that he/she will use the premises in compliance with all statutes of the State of South Dakota and ordinances of the City of Sturgis. In the event that the Lessee conducts any other activity on the property, other than described herein, or in the event the Lessee is in violation of any state statute or city ordinance concerning the use of the property, or if the Lessee conducts himself /herself in a manner that disrupts other vendors of the Lessor, then this Lease shall terminate immediately, and the Lessor shall have the right of immediate repossession of the teased premises, with no refund of Lease payment to the Lessee. 4. LIABILITY INSURANCE: Prior to taking possession of the teased premises, the Lessee shall provide to the Lessor a copy of the liability insurance certificate showing that the Lessee has general liability on the premises being teased herein in the minimum amount of $1,000,000.00. Evidence of insurance shall show Lazelle Street Land Company and Motoring USA, LLC as additionally insured. The Lessee shall maintain this policy of insurance in force at all times during the term of this agreement. 5. POSSESSION: The Lessee shall take possession of the property on the 4" day of August 2010. 6. RISK OF LOSS: Lessee agrees to hold harmless, indemnify, and defend Lazelte Street Land Company and Motoring USA, LLC and any of their officers, employees and agents, from any claim relating to this agreement, including but not limited to matters concerning the operation of Lessee's business on the property, claims of injury or damage to third parties, any toss or damage due to theft, vandalism, climate, or any other cause, 7. NO REPRESENTATIONS: The Lessee understands that this is an agreement between Lazette Street Land Company and Motoring USA, LLC and the Lessee. The Lessor is not making any representations as to any activities that may be held at the leased site during the Sturgis Motorcycle Rally. 8. TERMINATION: This agreement shalt terminate immediately in the event of any breach by the Lessee of any of the terms of this agreement. 9. IMPROVEMENTS: The Lessee shalt not make any permanent improvements to the teased property. Electrical and phone connections are made available for each space leased. Lessee is responsible for obtaining a temporary service and account with appropriate vendor. Upon vacating property, the Lessee shalt leave property without changes, including holes in asphalt left by stakes, and any damages to power, water, or phone services. Any cost of repair wilt be charged to Lessee if Lessor completes repair. Lessee will be responsible for any damage to underground services caused as a result of digging into or driving stakes into underground services. 10. CLEAN UP: The Lessee shall redeliver possession of the teased premises to the Lessor in a neat and clean condition, free of any trash or debris whatsoever. In the event the Lessee fails to return the property as it was delivered, the Lessor shalt have the right to repair or clean the property and charge any costs incurred to the Lessee. Any of the Lessee's property remaining on the leased premises subsequent to the end of the term of this agreement shall become the property of the Lessor. 11. BEHAVIOR: The Lessee agrees to conduct himself /herself and agrees for his/her employees, agents and associates, to conduct themselves in such a manner as to not disturb customers of any other businesses located on the property controlled by the Lessor. M?TaI1N6 John Detrick john@motoringusa.com (e-mail) • 717-249-9498 (Voice) - 717-249-9498 (FAX) 240 Hickory Road Carlisle, PA 17105 EXHIBIT A Page 8 of 15 From: Judd Hollifield To: John Detrick Subject: RE: Two Things Date: Tuesday, July 19, 2011 10:01:10 AM Contract coming over this morning, payment of $20,000 will be mailed to you today via company check, balance of $20,000 will be hand delivered in Sturgis. Power needs: 2 big rigs, EACH needing 240 volt single phase, individually. Need both plug in and twist lock on power source. In addition, the 48' gooseneck needs 50 amp 4 prong range plug. We need water along the boundaries of our area with a standard hose bib. Judson N. Hollifield Chairman & Chief Executive Officer Rinehart Racing 19 Zillicoa Street • Asheville, North Carolina USA 28801 (828) 350-7653 tel • (877) 264-8282 tf • (828) 255-8299 fax From: John Detrick [mailto:john@motoringusa.com] Sent: Tuesday, July 19, 20119:44 AM To: Judd Hollifield Subject: Two Things Judd, Two Quick Things 1. Contract: On May 16, 20111 sent the attached contract for review and execution. I do not have a signed copy or any payment and I am hoping to resolve those matters today. The agreement called for a 50% deposit due on 6/1/2011 with the balance due in full by 8/1/2011. At this point, I would like to have an executed agreement and receive the entire payment. 2. Electric: Could you please provide the sketch that we discussed last week so the electrician can work effectively in making the electrical accommodations. Thank you! John MOTORING EXHIBIT A Page 9 of 15 240 Hickory Road Carlisle, PA 17015 717-249-1153 (Voice) 717-249-9498 (FAX) motoringusa.com motoringusamagazine.com CONFIDENTIALITY NOTICE: This e-mail may contain information or materials that are privileged, confidential or otherwise protected from disclosure or distribution to any party other than the intended recipient. If you are not the intended recipient of this e-mail, please notify the sender immediately by return e-mail. Unintended recipients are asked to delete and purge the e-mail and are instructed not to distribute, disseminate, file, or copy the communication or any attachments. Motoring USA is a trademark of Motoring USA, LLC EXHIBIT A Page 10 of 15 ATU ^ 4;02 PM +c;t + Just a quick note 'as I srt on the plane to thank you f r.all of -6 - Fief this ciare past Week. l appre you anti count you as a . riend..1aoking fbmard.to talking this coming week. EXHIBIT A Page 11 of 15 John Detrick From: GHMktg@aol.com Sent: Saturday, August 20, 201112:12 PM To: john@motoringusa.com Subject: Re: FW: Clarity Attachments: Certification .htm John, There was obviously some issues leading up to the Sturgis event regarding the lot and the understanding as to the layout. I was also under the impression that the lot was flat and had no obstructions. As you recall, I asked you to look into removing the poles therefore satisfying the issues we all had, you did that and everybody was happy. This was the first time in this location and you never really know how it is going to work out until your there set up and working. The lot worked well for all of us and we thought we had the opportunity to stay there for subsequent rallys. I don't ever remember you telling me that you had an opportunity to sell this lot to Victory/Indian and from talking to Gerald and Holger, neither did they. You should have brought us all together during the rally and explained the situation and given us first right of refusal, but you didn't. The lack of getting contracts in ETC is no excuse for what has happened here. Its pure and simple, the lot was sold out from under us for a better deal without an opportunity on our part to counter offer. The alternative lots you were offering just won't work. You can say life is too short to worry about details, this is a big one and can not go without being a problem. I am really disappointed in you what has happened here. Grady In a message dated 8/20/2011 8:11:21 A.M. Pacific Daylight Time, john@motoringusa.com writes: I thought you should see this... 'MOTORING 240 Hickory Road Carlisle, PA 17015 717-249-1153 (Voice) 717-249-9498 (FAX) motoringusa.com motoringusamagazine.com CONFIDENTIALITY NOTICE: This e-mail may +hat are privileged, confidential or otherwise protected from disclosure or distribution EXHIBIT A ed recipient. If you are not the intended Page 12 of 15 recipient of this e-mail, please notify the sender immediately by return e-mail. Unintended recipients are asked to delete and purge the e-mail and are instructed not to distribute, disseminate, file, or copy the communication or any attachments. Motoring USA is a trademark of Motoring USA, LLC From: John Detrick [mailto:john@motoringusa.com] Sent: Friday, August 19, 20114:32 PM To: 'gerald@rinehartracing.com' Cc: 'Judd Hollifield' Subject: Clarity Gerald, I was really troubled by your call today. In my mind, life is far too short to argue about trivial matters, and most business matters are truly trivial when it comes to living and friendship and doing the right thing. Your comments this afternoon differ greatly from my understanding of what transpired. You mentioned that Rinehart did not receive a contract until a week before the event and that is just not the case. The reality is that your agreement was delivered on May 16, 2011 and essentially ignored until a week before the event. Perhaps you do not know this, but I did not even receive the balance due on the contract until the end of the Sturgis event. As recently as June 29, 2011, in respect to the space at 3FD and Lazelle, I was being told by Judd that "we are only weeks away and have no other choice but to try and make the best out of what we have." At that time, I had a $40,000.00 financial obligation on your behalf, no assurance that you sincerely intended to use the space, and I still had no contract or deposit. I hope that you believe that I went above and beyond the call of duty to make this work for you.. I have attached the documentation that supports these facts regarding this matter. EXHIBIT A Page 13 of 15 During this time the Polaris deal emerged and it was categorically the best opportunity and protection I could offer my client moving forward. At no time did I offer you a multi-year deal and there was never a first-right-of-refusal proffered. The space at 2ND and Lazelle is the finest frontage in Sturgis. I will not make any decisions on the use of that space until Monday afternoon so that you have a chance to consider this situation with facts and a clearer view. Absent any comment from you, I will sell the space to the client that is waiting. Life is too short for adversarial relationships and you have the power to build a friendship here and develop a long term location in Sturgis. John MOTORING 240 Hickory Road Carlisle, PA 17015 717-249-1153 (Voice) 717-249-9498 (FAX) motoringusa.com motoringusamagazine.com CONFIDENTIALITY NOTICE: This e-mail may contain information or materials that are privileged, confidential or othenvise protected from disclosure or distribution to any party other than the intended recipient. If you are not the intended recipient of this e-mail, please notify the sender immediately by return e-mail. Unintended recipients are asked to delete and purge the e-mail and are instructed not to distribute, disseminate, file. or copy the communication or any attachments. Motoring USA is a trademark of Motoring; USA, LLC EXHIBIT A Page 14 of 15 Grady Pfeiffer -4 Qfc; 760.751.7342 Fax: 760, 751.7364 EXHIBIT A Page 15 of 15 Business Filing Search Home (/) http://mbIsportal.sos.state.nin.us/Business/BusinessSearch?Business.. Search (/Business/Search) Filings (/Business/Filings) Search » Business Filings No results match the criteria entered. Business Record Search » By Business Name By File Number Hamsters USA Search Advanced Options Note: defaults to active business filings only. To search inactive business listings, click on Advanced Options. EXHIBIT B Page I of 1 1 of 1 9/27/2011 12:49 PM To All Hamsters Custom Motorcycles Belonging to the Hamster USA organization is a privilege, pleasure, association with good friends and a hell of a lot of fun. One thing remains constant, you were required to have a custom bike to become a Hamster and have to have one to remain a Hamster. A custom bike is a ground up custom or a modified Harley. A cool paint job on a Harley is not a custom, changes such as bars, seat, modified frame, fenders, gas tanks etc make a custom. If you are a Hamster you know what a custom bike is. Do's and Don'ts 1. Hamster logo's or any reference to Hamsters USA must be removed from bikes, cars, trailers etc before they are sold to a non-Hamster. 2. No Hamster logo or reference to Hamsters is to be used on any business related material, advertising or clothing. 3. You must be a Hamster to wear a yellow Hamster logo'd shirt. Spouse's or significant others may wear approved Hamster logo'd clothing, jewelry etc. 4. You must be a Hamster for 2 years before sponsoring a perspective Hamster. 5. The name Hamster USA and the official Hamster Logo and font are trademarked. It cannot be changed. If you have any questions, please contact Grady Pfeiffer. 6. No Hamster logo or any reference to Hamsters USA is to be placed on the back of any clothing such as jackets, shirts etc. The only exception to this is the Official annual Sturgis Rally Hamster Yellow "T" shirt. If you are making shirts, jackets etc for local Hamster events with reference to Hamsters, they must be approved by Grady Pfeiffer or Donnie Smith. 7. New prospective Hamsters must be sponsored by a Hamster and must be officially introduced with a sponsor form in Sturgis during our annual Sturgis Rally week meeting. There is a minimum 2 year waiting period and must be in Sturgis to be inducted. 8. A custom bike and participation with the Hamsters USA is required. Arlen, Arlin, Barry, David, Donnie, Ed, Grady and Steve EXHIBIT C Page I of 2 From: MNSoortieCa)aol.com To: MNSoortie(a)aol.com Subject: Hamster Requirements and Do"s and Dont"s Date: Friday, March 11, 2011 5:56:02 PM Attachments: Hamster Dos and Dont"s 2011.doc Hi Hamsters Please download and read/print out the attached file (Word document) of the updated Hamster requirements and Do's and Dont's. This will also be mailed as soon as I can get it out. Thanks, Petty EXHIBIT C Page 2 of 2 Tracemarlc ?ectronic Search System (TESS) http://tess2,uspto.gov/bin/showfield?f--doc&state=4001:6verfa.2.: h United States Patent and Trademark Office Home I Site Index I Search I FAQ I Glossary I Guides I Contacts I eBusiness I eBiz alerts I News I Help Trademarks > Trademark Electronic Search System (TESS) TESS was last updated on Tue Sep 2704:35:46 EDT 2011 Logout Please logout when you are done to release system resources allocated for you. Start List At: OR Jump Ito record: Record 2 out of 2 ( Use the "Back" button of the Internet Browser to return to TESS) Typed Drawi ng Word Mark HAMSTERS USA Goods and (ABANDONED) IC 041. US 100101 107. G & S: motorcycle-related information services, Services entertainment, organizational services, fraternal club services, clothing and clothing accessories for motorcycle riders. FIRST USE: 19790801. FIRST USE IN COMMERCE: 19790801 Mark Drawing Code (1) TYPED DRAWING Serial Number 75013635 Filing Date October 25, 1995 Current Filing Basis 1A Original Filing Basis 1A Owner (APPLICANT) DAVE PEREWITZ UNKNOWN 264 Flagg St. Bridgewater MASSACHUSETTS 02324 Attorney of Record DONALD J. BRUNSTEN Disclaimer NO CLAIM IS MADE TO THE EXCLUSIVE RIGHT TO USE "USA" APART FROM THE MARK AS SHOWN Type of Mark SERVICE MARK Register PRINCIPAL Live/Dead Indicator DEAD Abandonment September 30 1996 Date , EXHIBIT D of 3 Page 1 of 1 9/27/20119:46 AM >-ace;nar't 'ectronic Searc`Z System (TESS) http://tess2.uspto.gov/bin/showfield?f=doc&state=4001:6vcrfa.6.1 United States Patent and Trademark Office Home I Site Index I Search I FAQ I Glossary I Guides 1 contacts I eBusiness I eBiz alerts I News I Help Trademarks > Trademark Electronic Search System (TESS) TESS was last updated on Tue Sep 27 04:35:46 EDT 2011 Logout Please logout when you are done to release system resources allocated for you. start List At: OR -Jump 'to record: Record 15 out of 72 I Browser to return to TESS) HAMSTERS Word Mark Goods and Services Standard Characters Claimed Mark Drawing Code Serial Number Filing Date Current Filing Basis Original Filing Basis Owner Attorney of Record Type of Mark Register Live/Dead Indicator Abandonment Date (Use the "Back" button of the Internet HAMSTERS (ABANDONED) IC 045. US 100 101. G & S: Social clubs. FIRST USE: 19790801. FIRST USE IN COMMERCE: 19790801 (4) STANDARD CHARACTER MARK 78677999 July 25, 2005 1A 1A (APPLICANT) Hamsters Inc. CORPORATION CALIFORNIA 1725 Southfork Place Paso Robles CALIFORNIA 93446 Donald J. Brunsten SERVICE MARK PRINCIPAL DEAD August 12, 2006 Tt .. s=.;??r '; ? . c r r? ..?. -, ^rrp Frtr=r FOR5?1 ?„, ??: - SEARCH OG .;? i-t=l.?' r ,• t_:irt? t Li?T NL .*.i Lr?e Nt xF EXHIBIT E Page 1 of I I of 2 9/27/20119:49 AM '. rac'emar'c 'ectronic Seam) System(TESS) http://tess2.uspto.gov/bin/showfie]d?f=doc&statc=4001:6vcrfa.2. United States Patent and Trademark Office Home I Site Index I Search I FAQ I Glossary I Guides I contacts I eBusiness I eBiz alerts I News I Help Trademarks > Trademark Electronic Search System (TESS) TESS was last updated on Tue Sep 27 04:35:46 EDT 2011 Logout Please logout when you are done to release system resources allocated for you. Start List At: OR Jump 1torecord: Record 1 out of 2 Browser to return to TESS) HAMSTERS USA ( Use the "Back" button of the Internet Word Mark HAMSTERS USA Goods and Services (ABANDONED) IC 035. US 100 101 102. G & S: Club services, namely, promoting the interests of motorcycle enthusiasts. FIRST USE: 19790108. FIRST USE IN COMMERCE: 19790108 Standard Characters Claimed Mark Drawing Code (4) STANDARD CHARACTER MARK Serial Number 77211352 Filing Date June 20, 2007 Current Filing Basis 1A Original Filing Basis 1A Owner (APPLICANT) Hamsters Inc. CORPORATION CALIFORNIA 1725 Southfork Place Paso Robles CALIFORNIA 93446 Attorney of Record Donald J. Brunsten Type of Mark SERVICE MARK Register PRINCIPAL Live/Dead Indicator DEAD Abandonment Date March 27, 2008 ®®® EXHIBIT F Page 1. of 1 of 2 9/27/20119:45 AM Business Sears) - 7=usiness -,ntities - 3usiness Programs Business Entities (BE) Online Services Business Search Disclosure Search E-File Statements Processing Times Main Page Service Options Name Availability Forms, Samples A Fees Annual/Biennial Statements Filing Tips Information Requests (certificates, copies & status reports) Service of Process FAQs Contact Information Resources Business Resources Tax Information Starting A Business International Business Relations Program Customer Alert (misleading business solicitations) Business Entity Detail http://kepler.sos.ca.gov/cbs.asp: Data is updated weekly and is current as of Friday, September 23, 2011. It is not a complete or certified record of the entity. Entity Name: HAMSTERS INC. Entity Number: C2696418 Date Filed: 01/13/2005 Status: SUSPENDED Jurisdiction: CALIFORNIA Entity Address: 1725 SOUTH FORK PLACE Entity City, State, Zip: PASO ROBLES CA 93446 Agent for Service of Process: DONALD 1. BRUNSTEN Agent Address: 12400 WILSHIRE BOULEVARD, SUITE 400 Agent City, State, Zip: LOS ANGELES CA 90025 * Indicates the information is not contained in the California Secretary of State's database. • If the status of the corporation is "Surrender," the agent for service of process is automatically revoked. Please refer to California Corporations Code section 2114 for information relating to service upon corporations that have surrendered. • For information on checking or reserving a name, refer to Name Availability. • For information on ordering certificates, copies of documents and/or status reports or to request a more extensive search, refer to InfofmatiorlRequests. • For help with searching an entity name, refer to Search Tips, • For descriptions of the various fields and status types, refer to Field Descriptions and Status Definitions. Modify Search New Search Printer Friendly Back to Search Results Privacy-Statement I free Document Readers Copyright © 2011 California Secretary of State EXHIBIT G Page I of I I of 1 9/27/20119:52 AM Secretary of State Administration Elections Business Programs Political Reform Archives Registries September 16, 201.1 John Detrick 240 Hickory Road Carlisle, PA 17015 John, It has been brought to our attention that you have engaged in actions that have created conflicts with a number of your Hamster brothers, this is something that we cannot let go without consequences. Because of this we are terminating your membership in the Hamsters USA. Your 2011 dues are being reimbursed and are enclosed. We are truly sorry for these actions but we had no other choice. If you disagree with these actions you are welcome to address the committee at our annual meeting at the Holiday Inn in 2012. Arlen, Arlin, Barry, Dave, Donnie, Ed, Grady, Steve EXHIBIT H Page 1 of 3 r at r PAY TO THE ORDER OF- a 17-2/910 2434 173101375561 DATE r wa DO ARS ? a..?..? 3 -C bank. FmS?SaviaGuumaead? usbank.COm MEMO -il:0910 eOO22: 17310137556 w 43 EXHIBIT H HAMSTERS USA 2117 - 97TH AVE. N BROOKLYN PARK, MN 55444-1002 Page 2 of 3 • VJ it - :S PF ? v L t pti„ r9 w ? ?z U ^.M ? S vw EXHIBIT H Page 3 of 3 Wayne M. Pecht, Esquire Attorney I.D. No. 38904 Rob Bleecher, Esquire Attorney I.D. No. 32594 Pecht & Associates, PC 1205 Manor Drive, Suite 200 Mechanicsburg, PA 17055 (717) 691-9809 6F THE rAlty 2011 JUL 27 PM E: 44 CUPEN YLOINtY k?? NIA JOHN DETRICK and MOTORING USA, Plaintiffs V. GRADY PFEIFFER and DAVE PEREWITZ and ED KERR and DONNIE SMITH, Defendants IN THE COURT OF COMMUN PLEAS CUMBERLAND COUNTY, PENNSYLV. CIVIL ACTION - LAW NO. 20124468 PROOF OF SERVICE I hereby affirm that I served the Complaint on Defendants Grady Pfeiffer, Dave and Donnie Smith by U.S. First Class, Certified Mail, Return Receipt Requested, addressed follows: Grady Pfeiffer 9795 Megan Terrace Escondido, CA 92026 Dave Perewitz 910 Plymouth Street Bridgewater, MA 02324 Donnie Smith 10594 Radisson Road NE Minneapolis, MN 55449 Copies of the U.S. Postal Service Form 3811 (Domestic Return Receipt) and. PS 3800 (Certified Mail Receipt) are attached hereto and marked as Exhibits "A", "B", and respectively. Respectfully submitted, TES, PC Dated: July 26, 2012 By: jK Wa- yn? e M Pecht, Esquire Attorney I.D. No. 38904 Rob Bleecher, Esquire Attorney I.D. No. 32594 1205 Manor Drive, Suite 200 Mechanicsburg, PA 17055 (717) 691-9809 Attorneys for Plaintiffs EXHIBIT A I._ it 0^ ral ti cc m 0 0 a 0 m go r-I ¦o 0 CI M1 y leg'' . ? a WA- 6 AOBWPdMWAoo to: rwI;ObW ,s 0 No a.- 43 eSc.v 11)0) CA 9Z02-(c q.: 4. ft*kWD~O*A* 0 Y46 7,008 1830 0003 8219 4985 P3 Form f , Fsbnu 2004 oonnsgc Retwr+ t rrt ta?c', EXHIBIT B rr 0" a ti to m 0 C3 0 0 m ral Co 0 a N EXHIBIT C Q N A Q" r^9 cc s ru G 0 C3 C3 m as r-I co 0 0 r%- -,- T- 'r !i. ?ti?r?as, MN 5? 2. wMo&And6r ; ---- -- - 7008 1830 0002 4481 9650 ?A?»+Mrv?ar ?bN1 PS Farm 3811, FebWy 2W4 owwwo t4um rmmg , CERTIFICATE OF SERVICE I, Rob Bleecher, Esquire, the attorney for Plaintiffs, hereby certify that I have served foregoing Proof of Service this date by depositing a true and correct copy of the same in the United States mail, first-class postage prepaid, addressed as follows: Grady Pfeiffer 9795 Megan Terrace Escondido, CA 92026 Dave Perewitz 910 Plymouth Street Bridgewater, MA 02324 Donnie Smith 10594 Radisson Road NE Minneapolis, MN 55449 Thomas P. Gacki, Esquire Eckert Seamans Cherin & Mellott, LLC 213 Market Street, 8t' Floor Harrisburg, PA 17101 Dated: July 26, 2012 By: SHERIFF'S OFFICE OF CUM Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor OFFICE OF THE WRIFF RIND COUNT' ,E VVM fi ON 101 loll j0L 30 AEI 9.03 LUMBERLAW kpENNSYLY 14A John Detrick VS. Case Number Ed Kerr 2012-4468 SHERIFF'S RETURN OF SERVICE 07/2312012 10:53 AM - Jody Smith, Chief Deputy, who being duty swum according to law, states that on July 23, 012 at 1053 hours, she served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Ed Kerr, by making known unto himself personally, at The Cumberland County She s Office, 1 Courthouse Square, Room 303, Carlisle, Cumberland County, Pennsylvania 17013 its conte is and at the same time handing to him personally the said true and correct copy of the same. JODY S. SHERIFF COST: $28.00 July 24, 2012 SO ANSWERS, K E I ?z 10? RON R ANDS (c) CountySuite Sheriff, Teleosoft, Inc.