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HomeMy WebLinkAbout95-06873 J .~ {5 I ;11 I Jj .~ c/J ~ ~I (3J I rf) C' 00 .j I U') cr ~ or . ~" -, _ ,:i';'>!~:: -"',. "' :d;)':Z~-~.\. -'>. .!.'- ... f", ..' I ] ,..1- " .,~~ '." r-~ '," ,-;,,~ ',t.- .:j,~ .;~'" '\t<' .. .r. ,. ',t;;: ,. -. ) .,,1, ( , ~ -'f. .. .~; ':1',: 1.;-< '.. -.;:, .~\. .. :.J( ,. . .,'t~ .,:,~. .< ~- .;,:, " ~ :.' >2.~ '':,1 "\'; ",,- _:"'j.' )-~' . .,~/>r{ :,. "<', ,l ,i.', " ,. 3~ .., .,,".,," .;: . -- - .-~ \.", '.' , ",' ,C'" -",',," ...~ . QUALITY BUILDERS WARRANTY CORPORATION Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLANO COUNTY. PENNSYLVANIA Defendants . qJ . . . . . . . &~7,3 (J IAj-(' e..... ~1/L-t1'-.. v. DIVERSIFIED DATA SYSTEMS. INC. AND LUTHER SCHAFFER 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 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 fai 1 to do so the case may proceed wi thout 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 FINO OUT WHERE YOU CAN GET LEGAL HELP. Court Administrator 4th Floor. Cumberland County Courthouse Carlisle. PA 17013 (7l7) 240-6200 QUALITY BUILDERS WARRANTY CORPORATION IN THE COURT OF COMMON PLEAS Plaintiff : CUMBERLAND COUNTY. PENNSYLVANIA v. DIVERSIFIED DATA SYSTEMS, INC, AND LUTHER SCHAFFER Defendants . . COMPLAINT AND NOW, this 1st day of December. 1995. comes the Plaintiff. Quality Builders Warranty Corporation. by and through its Attorney, John A. Gill, Esquire. and files the within Complaint and avers in support hereof the following: 1. Plaintiff is Quality Builders Warranty Corporation (QBW) which is a Pennsylvania corporation and maintains a mailing address at P.O. Box 271. Camp Hill. Cumberland County. Pennsylvania. 2. Defendant. Diversified Data Systems. Inc.. (Diversified) is a Pennsylvania corporation which maintains its principal place of business at 850 Wesley Drive. Mechanicsburg. Cumberland County. Pennsylvania 17055. 3. Defendant. Luther Schaffer. is an adult individual who is employed by Diversified and who's work address is 850 Wesley Drive. Mechanicsburg. Cumberland County. Pennsylvania 17055, 4. At all times relevant hereto. Diversified was in the business of personal computer-related services. including hardware sales and maintenance. the installation and support of local area networks. software training and custom software programming to meet its customer's specialized needs. COUNT ONE 5. At all times relevant hereto. Defendant Schaffer was an employee of Defendant, Diversified. 6. QBH incorporates herein by reference Paragraphs 1-5 of the within Complaint. 7. On November 3, 1994, Defendant, Di versifi ed. performed a computer network overview and developed recommendations on network storage capacity. data security and office productivity. B. As a result of the recommendations, on January IB, 1995, QBH contracted with Defendant, Diversified, wherein Defendant Diversified a9reed to upgrade QBH's hard drive on its existin9 server and to increase storage capacity as recommended by Diversified, A true and correct copy of the agreement is attached hereto, incorporated herein and marked as Exhibit A, 9. On January 26, 1995 QBH reviewed options with Defendant, Diversified, for a backup server. QBH's concern was if there was a fire or a catastrophe on site which would damage the information system that an off site backup would be available for QBW to continue its operations, 10. On January 27, 1995, QBH received a quotation from Defendant Diversified for the purchase of an additional server which would function as an on-site server and the existin9 server would be taken off site to be used as a back up in the event of a catastrophe. A true and correct copy of said quote is attached hereto, incorporated herein and marked as Exhibit B. ~ ~ Ii . 11. On January 3D, 1995, Defendant Diversifed provided QBW with a revised quotation to make the existin9 server identical with the new server which was being purchased from Diversified. A true and correct copy of the revised quotation is attached hereto, incorporated herein and marked as Exhibit C. 12. On February 3. 1995. QBW received an additional quotation for an additional server with a new backup system installed. A true and correct copy of said quotation is attached hereto, incorporated herein and marked as Exhibit D. 13. On February 16. 1995, QBW entered into a contract wi th Defendant Diversified for the purchase of the new server with the new backup system. A true and correct copy of the purchase order is attached hereto, incorporated herein and marked as Exhibit E. The purchase price for the hardware was $6,035.64. 14. On AprilS, 1995, Diversified upgraded QBW's existing server to match the specifications of the new server. 15. On April 7, 1995. DDS installed the new server with backup at QBW's location, At time of installation, DDS indicated that they did not include all items to accomplish the stated purpose. Diversified had to order another back up and then return to complete the installation process. Once accomplished, according to Diversified. QBW inquired as to whether the now to be off site server was exactly the same as the new server and, in an emergency, if the off site server would contain all backup information and restore. Upon questioning, Diversified realized that the backup server did not have the new backup system in it, an item integral to the purpose of the engagement of Diversified. 16. On April 24, 1995, QBW received and approved a quote from Diversified for the backup system for the off site server. A true and correct of the quote is attached hereto, incorporated herein and marked as Exhibit F. Additional cost was $l,lBl.90. 17. On May 4, 1995, Diversified installed the backup on the old server. After installation Defendant Schaffer represented that he tested everythin9 and the backup was functioning properly. 18. On August 17, 1995, QBW requested Diversified to return to its place of business to simulate a disaster recovery "fire drill" so that QBW could observe and formulate the written instructions for the off site backup. QBW brought in the off site server and Defendant Schaffer attempted to restore the information. The drill did not work. Diversified explained the network card in the old server was not identical to the new one. A new network card had to be ordered, a fact Diversified should have known and advised QBW. 19. On August 18, 1995, Diversified returned with the new network card and installed it in the backup server. The software would not operate properly. Diversified could not resolve the problem and took the server to their shop. 20. On August 31, 1995, Diversified returned the backup server to QBW. The backup would still not work. Diversified re-confi gured both backup and primary servers and represented that the backup system was now working. 21. On September 7, 1995, another "fire drill" was simulated with Diversified present and Diversified trained QBW employees on the backup procedures. Defendant Schaffer advised QBW that the restore was successful and the backup system server was working. 2'. On October 5. 1995. QBW attempted a fire drill using the instructions provided by Diversified, The backup server locked up and the monitor on the computer indicated error messages regarding buffers and "bottle necking" on the server. Diversified was contacted and Defendant Schaffer informed QBW that the message was nothing to worry about and told QBW simply to reboot the server and PC. 23. In Mid-October. 1995. QBW requested that Defendant Diversified document in writing that the back up system was functioning properly. Diversified said a letter would be forthcoming but QBW has never received such a document. 24. On November 9, 1995. QBW, now lacking confidence in Diversified's advi ce, engaged an alternate computer consul tant to rev! ew the backup and fire drill procedures. When the backup was simulated. the computer once again locked up and the server gave error messages, The new computer consultant identified the problem, that being that the reserve buffers were set improperly and were causing bottle neck problems when restoring files. 25. The new computer consultant advised that this was a critical problem and obvi ous from the error message and that the restore was not successful nor could it ever have been successful in the past as represented by Diversified and Defendant Schaffer, The problem was corrected by the new computer consultant and a new restore was performed successfully and without errors. 26. On the basis of the above. Diversified breached its express warranties to QBW that the computer backup would accomplish the purpose intended and that it was working properly at the time they tested it. -?~",,?":;:;"Xti'eJ",; i, 27. As a result of the above. Diversified breached its implied warranties of merchantability and fitness for a particular purpose in that the backup did not work nor could it have worked as Diversified and Defendant Schaffer represented. 28. By reason of the foregoing Diversified and Defendant Schaffer have engaged in fraudulent conduct which created a likelihood of confusion or misunderstanding and QBW is entitled to damages under Pennsylvania Unfair Trade Practices and Consumer Protection Law 73 P.S. Section 201-1 et seq. Both Defendants knew that the back up system was not functioning properly when they represented it to be. 29. As the result of Diversified's and Defendant Schaffer's misadvice. QBW expended additional monies for hardware which Diversified represented they would not need and in addition. expended approximately fifty man hours in identifying the problem. Additionally, QBW incurred extra expenses in engaging another computer consultant. QBW's total liquidated damages are $12.000.00. WHEREFORE. Pl ai ntiff. Quality Builders Warranty Corporati on. demands judgment agai nst Defendants. joi ntly and severally. in a sum in excess of $20.000.00. treble damages. punitive damages. reasonable attorney's fees and costs of suit. c.. A. Gill. Esquire rney 1.0. 141532 75 Utley Drive Camp Hill. PA 17011 (717) 730-9789 l. ,. Y.' k C' ~~. ~ VERIFICATION I hereby affirm that the following facts are correct: Joseph M. Olshefski appears for the Plaintiffs and represents that he is authorized to make this Verification on behalf of them; the attached Complaint is based upon information which I have furnished to my counsel and Information which has been gathered by my counsel. The language of the Complaint is that of counsel and not of me. I have read the Complaint and to the extent that the Complaint is based upon information which I have given to my counsel, is true and correct to the best of my knowledge, information. and belief. To the extent that the contents of the Complaint is that of counsel, I have relied upon counsel in making this Verification. I hereby acknowledge that the facts set forth in the aforesaid Complaint is made sUbject to the penalties of 18 Pat C.S, 54904 relating to unsworn falsification to authorl ti es. sep , President Quality Builders Warranty Corp. Date:-'Z...,-"f ~ EXHIBIT A **************. -coHM.JOURNAL- &................... DATE FEB-D6-199! ..... TIME 13144 ..* P.01 tIlM - I'EI'OlY _I SS I Qj ST~ToFE8-D6 13136 END-FEB-D6 13144 FIl.E t(J.- 221 t(J, ClJ1 ABIIR""loI< STATIQj tR'E1 TEl.EPIOE t(J. PAllES PllO,t(J, ~ tR'E 001 CI< . 7957973 0011001 -aA.ITY IlUII.tIERS~- ........*........................... -DUALITY BLDRS - ..... - 1 717 737 4298- _..*--... zg'd k'JG ll-:IOQ 11&111-1'" 1IIl'15 ~ IlUILlIrllS ~ I.!JW ~ATA~S.INC. n:.L t s;&6T-tlI-83,j 1 717 m 42IlIl P.1J3IIlJ _ONlEIlNO: 3056 _TO IMII.... ~z;=~1 c...- JI.u-' A. I~.I( JIlIItIIf IlipTo $;.,~ T... '117. ~ ..~ -~ - "..,.~. ".1.. _PII1 I. .' .... UoII .... ........ ~ iii .....- ...... ....... I I ~ N-..o "'r~ ~ "'. · 7ffc..",., L ~ . . I6Ifo 1:,,0_ ~ ........ I IW. ,....... ~,~ ~ . .. ".. , 1 ~. I r_ ". I k II .s..... a' . 1(,- JI"", P"~Il.U$ ./ " I. 11 I. ,. ....... QI&,.a., - ..oftL~., , I'.... ...... Ar.-, '1;;~~ /'I"". :uys.;. - ..,.. Uf7". .. IS'J. 70 ~..~.... ..........,.c....,c.....,.......~... ....... .2'1'1.7" ............. c...... .... ....... "DDI" _................. -- 1!1~." .........n,~~~-=::.=~...._............. ..... ....... __...-.,... . .......... LW ...... 13'17". ......... c... -...-... ........................- oj' G\. .. J DID.,...... Ire. .,~~- Oat II A./~~ /-' ., TIlt IlIIt 'Iw....~&....-~.. ~ , ~ . - - _.-, -'-'" _.- ~._... .-- ...,....... ~ ~ ...4t.. . _15-1995 16'87 lOO 'd eL6L-'6L-LtL-t lIJC-IT ,." SHalSAS Vlva a3IlI~3^Ia P,Ila ---. -.. 1e: Lt S6/COIlO EXHIBIT B I r) r )~ DIVERSIFIED t.:.J..:.J DATA SYSTEMS, INC. B~O WESLEY ORIVE ' MECHANICSBURG, PA 1 70~!l January 27. 1995 Ms. Wendy Thomlinson Operations Manager Quality Builders Warranty 75 Utley Drive Camp Hill, PA 17011 Dear Wendy: As requested, here is a quotation for a backup server that is configured similarly to the server presently in use, after it is upgraded. We continue to recommend the implementation of the following to secure the data on your network, to eliminate downtime, and to reduce downtime in the event of a hardware failure: . Uninterruptible Power Supply . Movement of the server so that the reset and power on/off buttons are less prone to accidental depression . Improved Tape Backupffape Rotation System . Pssswording & Other NelWare Security Measures . Off-site storage of a full backup tape . Vinca Standby Server If you have any questions regarding the enclosed. please give me a call at 795-7000, Thank you again for the opponunity to be of service to Quality Builders Warranty Corporation, David S, Lohr 717.79~.7CXXl, 1.eOO872.JC20. FAX 717.795.7973 · SDUlUCSt a\'allable from our dislributor: cost of Ihls component Is approx, $275, Includes assembly and bum-in, dell\'ery to clienl sile; docs nol include InsinUation of NoveU Netware, .. . .' Backup Server DDSlSunTek 486DXlZ-66 Intel 486DXl2-66 2.4GB SCSI hard dri\'e 530MB SCSI hard dri\'e' Local Bus Video DOS Operating System Quality Builders Warranty Corp, Backup Server 32MB RAM 3/4 tower case 3-1/2",5 1/4" noppy drive (2) 3COM network card Mono monitor ...... S ,1,j9J Backup Server DDSlSunTek 4lkIDX/Z-/'i/i tntcl 411GDX/2-6G \,2GB SCSI hard drive 530MB SCSI hard drive. Local Bus Video DOS Opuatin; System Quality Builders Warranty Corp, Backup Server IGMB RAM 3/4 tOWCf case 3.112",5 114' floppy drive (2) 300M nc\work card Mono monitor \)C;~ L (\) e.~'>+ ...,.. $ 3,165 . Smollm avallabl,from our d/llrlburor: '011 qflhll ,0mpon,nll.<appMlr, $27J Incluclcs assembly and burn-in. dcUvcry 10 client lite; docs notlnelude Installalion orNlMlI NelWlle, lnstaUation of addlllonal 4MB RAM rrom present SClVer is recommended, and will be tranSferred at no additional eharl.'C' ZOO 'd F:L6L-li6L-LtL-t SH3~SAS v~va a3IlIS~3hla 6t:~t li6/0F:/tO l\'5kt ,&uv..V:~ 1-\00; EXHIBIT C too 'd '_."'.....,,\-.,.-.~',......- "'''''/.''''''''' -. DIVERSIFIED DATA SYSTEMS, INC 850 Wesley Drive Mechanlcsburg, PA 17055 Tel. 717-795-7000 Fax 717.795-7973 - Fax Cover Sheet - Date: Pagel: From: To: fL'CNo,: Subject: Wendy 717.737-4288 Server RAM &. Hard Disk 1/30"5 "- David S. Lohr Wendy, . If we go 10 a 1.2GB hard disk, the cosl including the RAM required would be the same as the 2,40B drive by itself(not including the RAM), so the 12!A! cosl of going to 1.2GB rather than 2,408 would be around $1,500 less, We would probably need to go to 20MB of RAM in your server .. we would remove 4MB of RAM to make room for the additional 16MB, giving you a total of 20MB, The 4MB removed from the server could either be used to upgrade a workstation, or you eould put 20MB in a backup server unit, which would be our suggestion, Purchase of (,2GB SCSI hard disk drive, installed in pre.~ent server. Reconfib'Ure system so that system files are on existing 250MB SCSI drive and user files are on new drive. Remove 4MB RAM and install 16MB in open slots, resulting in a total of 20MB ofserver RAM. Reconfigure existing tape b8l:kup software as appropriate. Total hardware & sm';cu S J,545 On the following page, I have requoled a backup server with the 1.2GB, 20MB configuration, Please give me a call if you have any questionsl ~~ EL6L-li6L-LtL-t SW3~S^S v~va a3I~IS~ahla 8t:~t li6/0E/tO lll'd lOO 'd %96 ii-XXI Itl~l S661:tll-B3~ DIVERSIFIED DATA SYSTEMS, INC 850 Wesley Drive Mechanicsburg, PA 17055 Tel. 717.795-7000 Fax 717-795-7973 - Fax Cover Sheet - Date: PIlIes: From: 1J3195 2 David S, Lohr To: Fax No,: Subject: Wendy 717.737.4288 Sales Order 3056 Revision Wendy, OK 1 think] have it now. . . We CAN use our outstanding sales order 30S6: ]. We will add I 1.2GB hard drive to your present server, rather than a 2,4G8, 2, We will remove 4MB RAM from your server, and add 16MB of RAM in its place. 3. The 4MB removed from your present server cannot be used in a new server, but can be used to upgrade one of your workstations. A!J the total amount of chis order remains S 2697.70 with tax, no changes in the amounts are necessary. 1 have also enclosed a quotation as discussed for the new fileserver based on the faster 486DXl2-66 processor, The price is higher than previously quoted for two reasons: I. We must add .RAM rather than use RAM from your old server, and 2. Additional labor is required to set it up as a server in a production environment than on the previous quote, which provided the raw hardware only. I have also shown as options the CD-ROM drive and the backup tape unit as discussed, By purchasing these items simultaneously, you will minimize system downtime and reduce total labor costS associated with the installation Please initial the areas on Sales Order 30S6 that I revised and retum to me via fax at 795. 7973, lfyou have any questions. please give me a call at 795-7000. Thank you again for your consideration tL6L-!i6L-LtL-l SHg~SAS ~~~a agIJISHahIa or:Ll !i6/tO/ZO ttl'd :e96 J.J-:XX] Quality Builders Warranty Corp, New Server New Server DDSISu.Tek 416DX1W6 Inlcl.86DXI2~ I.2OB SCSt hard drive 530MB SCSI hard drive. LocIJ Bus Video DOS OpcrAUnl System 20MB RAM 3/4 tower cue 3.112", S 114" noppy cub'!: (2) 3COM IIC\wor\( c:ud MollO monllor · SmDllr," /II'tJilabl.flUm uur dutrlbutar: ell," 'if thIS eampon.nl I" app,ar, 521', ttl~t S66t-t0-a3~ ..."'-'t;~Y~l S 3,149 llIcludca Il1CInbly and bum-in, delivery 10 clienl sile; instaJJation or No.cll Nctwarc, conllguration of drives so lhal programs rC1ldc on lhe smaller disk and user dala resides on the l.2OB disk. Data Security SlrumlnH TiDe Bac:kuD Scrvcr-b1$Cd internal Wangtclc 2GB DAT backup unil conficuml wilh lodusll)'. leading CheycnncARCICMl software, System can be conllgUfCd 10 permil aulomallc backups (numuJlly dunng .v.nlng huu',tj. ARCSCl'l'c oll'crs Cull IUlOmallon for dala managemcnl utilizing tape lOlallon, disk sroonung. and disaller RCOYcry CCIIluteS. Intcrnal2GB OAT. , , . " 5 Z,/JIIS CD-ROM Doublc-speed CO.ROM player, Inel, installation EOO 'd EL6L-!i6L-LtL-t SHg~S^S Y~Va agIJISUahla tE:Lt !i6/EO/ZO $ - ~K4V- I ...... s 'JWI'- \ ~ . I I I i Z0'd %96 JAN-16-1995 08'15 l!JOO .Ll-:lOJ Cll.R.1 TY IlU ILIlER5 ~TY UIVt:H~I"II:U DATA SYSTEMS, INC. ZLILt S66t-L0-a3~ 1 717 ?~ 4200 P.llJ4l3 IAl.U ORDER NO: 3056 80lClTo SALEI AlIREEMENT aMl"'J'&1U6u "~ 6""To "lG f,.,.., /JUt$- ~ #.4.4.-0. ~ ("fA '( 737. "-.$:"- ~e '",. II' ..O'~: Fot-)' 7Jz.VJ!.H" ,"1~ lie... Part .,.. , .... Unlt No. 0Iv ..... I. ~ ~ ___ P,odild De.~CIIl Pflce TCIIaI , j ~~ H~ I}.~ ,p,.c.ll!i ~ ..:2.> t/r" 2 "'e.-..,~ i"""~~z!__ . 3 4 . list:- e."'h 7611"1# .,"'~ 5 fa" '" P,utd ... 6 ~"".oIoC.1t! AL ._, 7 ~ .., .IJ ~ .M, II -h tl.8:t.,,~ . lJ 9 ,S...... 0 ~ 10 . 1(, "'" itA'" VPGtU4& -./ " 12 18 14 1S -~: CUll, ',0,' ,-,~.h2. ~'f r I~'" -. !Jftlf-// ....__'1'..01 1'1'11, .,. ~ir:;.. I~~~ - '* Uf1,7_ 'AI.1oo tM I l.n.70 TOTAL .2''''70 WlOlIlIluf..""._~. OIl ~CoI"... ...f......... ..""......... L-...._ 1:1S/J,~ ...........,.. 1llo c_ '11'_ to~ ""'oos'l"'..._II............. ....-........ In ..laId_ """WI_a ~ "'''llIl__ ....._ -,,- 1llo ..._.'*_10.......... -INIAtoMNfl4, ................., I"INICE 13th.,. ..,tc......twdI-".....c:OiI~N.n.it~.......iftII ~-r -r;lbtDDS .. u He...~. ~ 0aI0I Svstt.....~, ~#. 1/ A.J~<- I ' BV Tille - Oae :tW.Jl..~~ ~~- ~ I , lly Dat DiIoIlo4Jarr -'AocoI.nII., _.llrdofE'lIly CMIIr,Q,o,_ ,.,.$oIoo,;w, ...",.,.,...__ 1RN-16-1995 16-07 'd CL6L-S6L-LIL-I COC-IT SW3~S^S V~VO 03IJISH3hIO 96% p.ea ---- --- IC'Ll S6/CO/ZO , EXHIBIT E \ , .........,.. . ~96 J.I-JOCI OOISt S66t-9t-.l!3:1 'l!)!l~ DIVERSIFIED DATA SYSTEMS, INC. SALES ORDeR NO: :1:1:: 3 SALES AGREEMENT Sold To ,tJ/J'I7"t/1f'1-11Aft.J I1W""7 Ship To , 7S"truf l)"-l1f- e"AlI'" 1I1"i.. 1'.....17(111 , Tel' c::Y... A1.o.,.... ~7 (7"'~) 737,. z~ All,.. lIem Part Unit No. Qty Number Product Delcrh,tion Price ..L Total 1 / IJIJ,J' /J;I<7'~ -, . - .....-. 1v1'1'# : 5fJ?~!1 2 - t,..;".... 1IJZ.1 y,/~,;:,. ~,t= ~-~ 3 - /.:J.~tf 5'C.rc.:. ,. -, A!'~ 4 . 5.~Q",t1 .1<<, I/-"Jtf,h~' 5 ke..lk- A.u ,.,p.e-. liDS J Q+S~,,~l1:l:f' 6 -. . , 4J~.~- ,. . 7 z,~ L.u. #II)/~,,~ -I-7')411od ~ 8 ~ :J~", 1tZ7"..I.,Lk. '1f'T'~" Ofd./o.f 9 I 1h1V7t!'c- ~(;S,; ~,~~ 10 I W/lrI~M'7 047 TAI'~ /Au,..!' 11",7 11 3';0.. 2.&.~ /.-. \ 1..,,-rJ _"t... 12 M(!$6(."d- ""- ...'6t- -<'-Ff:r'..t.~ 13 ,. l"r::..,,~ a.,..",,~ 7". ~,,/. 14 p~ ... .. T ~ ~ /Ir_M<u 16 - S'(.J'f'6M 1 { . I :f~o W,'TII ~ F,oIahl DI" Aoq"'ocI: CuI1.P,O,' TI".., (Lk.AI'c.t ".........,:1 Dt'->~ SUb TOIII $l. ') f.~ - PA Sol.. Ta 3'11. 'Of TOTAl c,o$S'. tt' Warranttn for the abov, ""rch,ndta. .,. CUllom" Clrry.ln Wlllardl" u ptOYiCftd by !he ';J ""P. ... manufacture,. The Cultomt' qt... Co purcha,. ."d DOS. Inc:. .grln to.en the atMeet I.eoo Do_II dUClib.d above in "cOIdlnee with the terms and c.ondtUons act lorth abcrfl and on me IIY"., tld. h...... TIll.......... eoknooolodgeo Ill.. . hili rud 1Il/. Ag'oomont, und."tendo iI. end BAlANCE 3C13$'. '1 agrt.. to all.~h terml and condition.. Thl. ~gr"ment I, I\lbject to linlllCclptantt by ODS AI II Hom. 0Ihc.. Divl!tllKied Dala Systems, Inc. ~~p~ ~. /~. '1:("" 8y Tille Date Xi) .;;:i':m::...,', By Dale ---- DtJrribuUon: """"e. Accounting G,...". OIde' Entry ~. CustMl.r PtttIf. S".. '''e GOld. S"ts R.P/eStI'l"'W - tL-t SW3~SXS v~va a3IlIS~3AIa 6S:~t S6/9t/zO EXHIBIT F .',' 04/24/95 09:50 STATION (123)456-7890 p, 002 'l!)!)~ DIVERSIFIED DATA SYSTEMS, INC. SALES ORDER NO: 3137 Sold To Glo.U ryt; 1.1 ;,.,r fOP. Box 1.71 f Url-v~i, 171\11011 1 "l37 - '2."2..2.. SALES AGREEMENT 1t.t.Q-......ySIllP To 'furl '131 ,.JA.z. Wf"Nl)y l(;'""", ~rJS oiJ T.1. /I Altn; Item PI" Unit No. Qty Numbl' Product Descrlpllon Price TOlsl 1 I !'...l'i\"'~t.... -j1;pf' gA-:-l:...p . '21:rS ""It oJ. ~ 'i::., 2 'F/ g~.D S1:/."~fl... . IIK.efD 3 .,.,.~ '1.......:.0.1 . nJGo~t>lfS 4 (:ur-" ""1ln.~ ~I~"'''; ""'......or Ii 6 7 8 9 10 11 12 13 14 15 DolO Roqlri,od: Cuot, P,O,,, Tef..: FIII.hI -.' J\.~ Sub TOil' ltfp.~o - PA So'" Tax - TOTAL I f ai, qo Wan.mllt for the abOY. m.r~h.rtd... Ifl Cuatom,r c.rryotn warranti,... prcNidtd by IhI manuf,ctu'I'. lhe Cultoml' .grot. . and ODS. In, '0"" to .,IIIh, ..~ic.. L... Dooooll dmriboa obov.ln .ccard.n=e.llm.Oli cond,~on.." fo~h .bOY. .nd on tho ....11. aide harlot. Th. c,,'tomtr ack IedO" 1M' it II' ".d thia Ag,..ment. understands iI. and BALANCE agreet to alll~ \elmslnd nditio~ Thd. AUj em'"' '" lUbJtd to finallcceptancl by DOS . D. By Tille Date ~ ~ . \. , c...---.e? C'rvl"~,):~ -;::;:;. ,\ ('l ~J/ ;. s/2ft7C:;- DisflilMion: Whtr.. Accounllng GIWn . Otd" Ettrrr ean.ty. Cuslom" Pink. Sa'" F.'. Gold. $'1., R.",.un'atlv. ~R-24-1995 09:53 DOC-IT 95% P,02 ".-' .~ ~. , SHERIFF'S RETURN - REGULAR CASE NOI 1995-06873 P CO""ONWEALTH OF PENNSYLVANIA I COUNTY OF CU"BERLAND QUALITY BUILDERS WARRANTY VS, DIVERSIFIED DATA SYSTE"S INC , Sheriff or Deputy Sheriff of CU"BERLAND County, Pennsylvania, vho being duly svorn according to lav, says, the vithin CO"PLAINT upon SCHAFFER LUTHER defendant, at 1035100 HOURS, on the ~ day of December 19~ at C/O DIVERSIFIED DATA SYSTE"S INC "ECHANICSBURG. PA 17055 TI"OTHY REITZ vas served the 850 WESLEY DRIVE .CU"BERLAND County, Pennsylvania, by handing to LUTHER SCHAFFER a true and attested copy of the CO"PLAINT together vith NOTICE and at the same time directing His attention to the contents thereof. Sheriff's Costs I Docketing Service Affidavit Surcharge So ~rp~ ~ 7 >.?&;~--'<1- y- 'f! 6.00 .00 .00 2.00 R. Ihomas K11ne, ~her1tt 88.00 JOHN A. GILL . A ---- :1.(.. 1~ 12/07/1995 _ ~ ~/ ,.yp ,1J.- by d./t-? Z.L-. ~ "pu~her Svorn and subscribed to before me this .:Jo ~ day of !Jt"M't..-- 19 9';- A.D, C)vf' 9x.o~~~~(ar~' ~ day of December . SHERIFF'S RETURN - REGULAR CASE NOI 1995-06873 P connON WEALTH OF PENNSYLVANIA I COUNTY OF cunBERLAND QUALITY BUILDERS WARRANTY VS. DIVERSIFIED DATA SYSTEnS INC TInOTHY REITZ CUnBERLAND County, Pennsylvania, who to law, says, the within COnPLAINT upon DIVERSIFIED DATA SYSTEnS INC defendant, at 1035100 HOURS, on the 19~ at 850 WESLEY DRIVE nECHANICSBURG. PA 17055 . Sheriff or Deputy Sheriff of being duly sworn according was served the .cunBERLAND County, Pennsylvania, by handing to LUTHER SCHAFFER. SERVICE nANAGER a true and attested copy of the conPLAINT together with NOTICE and at the same time directing His attention to the contents thereof. Sheriff's Costsl Docketing Service Affidavit Surcharge 18.00 6.72 .00 2.00 sO?Jns)l";~ ~' ~.;r'r-~~ ~ - H. Thomas K11ne, ~her1ff $2&.72 JOHN A. GILL /1 12107/~~95 ---". . .-At~' l;2-~ ,+ .4~.-/L.--, ~ upu er Z" Sworn and subscribed to before me this .1c 1>' day of JJk.~ 19 () < A, D. C} 1 9r~:j~ta~~ _,' -< .'1.,,,"'-:""'.:' :",r~ ".' . QUALITY BUILDERS : WARRANTY CORPORATION, : Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 95.6873 Civil Term v, DIVERSIFIED DATA SYSTEMS, INC, and LUTHER SCHAFFER, Defendants DEFENDANTS' PREklMINARY OBJECTIONS NOW COME Defendants Diversi~ed Data Systems, Inc. and Luther Schaffer, and, through their attorneys, Mette, Evans & Woodside, do hereby file these preliminary objections to Plaintiffs complaint, in support of which they aver as follows: I. DEMURRER ON BEHALF OF DEFENDANT LUTHER SCHAFFER 1. Plaintiffs complaint includes as a Defendant Luther Schaffer, who is identified therein as an employee of Defendant Diversified Data Systems, Inc. and who, according to the allegations of the complaint, was the representative of Diversified Data Systems in dealing with Plaintiff regarding the items provided to Plaintiff under the various purchase orders as set forth in the complaint, 2. Plaintiffs complaint seeks recovery for alleged breaches of express and implied warranties and damages under the Pennsylvania Unfair 'i'rade Practices and Consumer Protection Law (73 P.S, 0201-1, it WI,). 3. Plaintiffs complaint also seeks, inW: W, punitive damages and reasonable attorneys' fees. 4. At most, the allegations of the complaint if proven true would place Defendant Luther Schaffer in the role of an agent contracting on behalf of a disclosed principle (i.e., Diversified Data Systems, Inc,). 5, An agent is never liable in contract where he was contracting on behalf of a disclosed principle, 6. Plaintiff has pleaded no facts in its complaint which would support a cause of action against Defendant Luther Schaffer under its theories of breach of express or implied warranties or the Pennsylvania Unfair Trade Practices and Consumer Protection Law. 7. Accordingly, Plaintiffs complaint should be dismissed for failure to state a cause of action as against Defendant Luther Schaffer, - 2- .'''''j''i''~~.... WHEREFORE, Defendant Luther Schaffer respectfully requests this court to sustain this demurrer and dismiss Plaintifl's complaint with prejudice. II, DEMURRER ON BEH~F OF QEFENDANT DIVERSIFIED DATA SYSTEMS. INC. 8. In its complaint, Plaintiff pleads theories of breaches of express and implied warranties and also seeks damages under the Pennsylvania Unfair Trade Practices and Consumer Protection Law (73 P.S. ~201-1, .IlllillSl.). 9. It is obvious from the face of the complaint that the transaction between Plaintiff and Defendant Diversified Data Systems, Inc. was a commercial transaction between two corporate entities in the nonnal course of business and therefore does not constitute a consumer transaction governed by the Pennsylvania Unfair Trade Practices and Consumer Protection Law, which allows private actions only by "any person who purchases or leases goods or services primarily for personal, family or household purposes..," 10, Plaintiff has not and cannot allege that it purchased goods or services from Defendant Diversified Data Systems, Inc. for "personal, family or household purposes," - 3- 11. Accordingly, the court should dismiss the portion of Plaintiff's complaint seeking relief pursuant to the Pennsylvania Unfair Trade Practices and Consumer Protection Law. 12, Plaintiff's complaint seeks punitive damages, 13. Punitive damages are not recoverable in contract actions, and, as stated above, the Pennsylvania Unfair Trade Practices and Consumer Protection Law does not apply in the present case, 14, Accordingly, the portion of Plaintiff's complaint seeking treble damages and punitive damages should be dismissed. 15, Plaintiff's complaint seeks an award of attorneys' fees. 16. Under Pennsylvania law, attorneys' fees are only awarded where specifically provided for by contract or by statute, 17, The sales orders attached to Plaintiff's complaint contain no agreement regarding the payment of attorneys' fees. -4- 18, Plaintif1's claims do not fall within any statute providing for the award of attorneys' fees. 19. Accordingly, the portion of Plaintif1's complaint seeking an award of attorneys' fees should be dismissed, WHEREFORE, Defendant Diversified Data Systems, Inc, respectfully requests that the portions of Plaintif1's complaint seeking to present claims under - 6- the Pennsylvania Unfair Trade Practices and Consumer Protection Law, and for trouble damages and punitive damages, and for an award of attorneys' fees, be dismissed with prejudice. m. MOTION TO STRIKE ON BEHALF OF DEFENDANT DIVERSIFIED DATA SYSTEMS. INC. 20. The averments of paragraph 8 through 19 above are incorporated herein by reference as if fully set forth. 21, Plaintif1's claims pursuant to the Pennsylvania Unfair Trade Practices and Consumer Law, and with regard to treble damages and punitive damages, and with regard to an award of attorneys' fees are not in accordance with applicable law and should be stricken from the complaint. "-' ..-';"\ .".,-."..,,, ;'0__0"_-"_" 22, In addition, Plaintiffs complaint attaches several sales orders/agreements as exhibits, 23, On each of the sales orders/agreements attached to Plaintiffs complaint, the following language appears directly above the signatures of the parties: "Warranties for the above merchandise are Customer Carry-In warranties as provided by the manufacturer. The Customer agrees to purchase and DDS, Inc. agrees to sell the services described above in accordance with the terms and conditione set forth above and on the reverse side hereof. The Customer acknowledges that it has read this Agreement, understands it, and agrees to all such terms and conditions, This Agreement is subject to final acceptance by DDS at its Home Office." 24. Plaintiffs complaint does not include the reverse side of the sales order/agreement form for any of the sales agreements/orders attached to Plaintiffs complaint. 25. Because Plaintiffs complaint sets forth the claims for breaches of express and implied warranties, the terms and conditions set forth on the reverse side of the sales orders/agreements are material to the determination of the issues in this case, - 6. 26. Rule 1019(h) of the Pennsylvania Rules of Civil Procedure requires that where a party bases its claim upon a writing, that such writing be attached as an exhibit to the complaint. 27. Accordingly, Plaintiff's complaint should be stricken for failure to comply with rule of court. WHEREFORE, Defendant Diversified Data Systems, Inc. respectfulIy requests this court to grant this motion to strike and to strike Plaintiff's complaint for failure to conform to law and rule of court. By: METrE, EVANS & WOODSIDE ')n#~ & Michael D. Reed, Esquire Sup. Ct. I. D. #35193 . 3401 North Front Street P. O. Box 5950 Harrieburg, PA 17110-0950 (717) 232-5000 Attorneys for Defendants Diversified Data Systems, Inc. and Luther Schaffer DATE: December 22, 1995 ._-Y.'-.,,- CERTIFICATE OF SERVICE I certify that I am this day serving a copy of the foregoing document upon the persons and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail, Harrisburg, Pennsylvania, with first-class postage, prepaid, as folIows: John A. Gill, Esquire 75 Utley Drive Camp Hill, PA 17011 DATE: December 22, 1995 521192..1 METrE, EVANS & WOODSIDE Br.~W/P )) If-.t ichael D. Reed, Esquire Sup. Ct. I. D. #35193 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 Attorneys for Defendants Diversified Data Systems, Inc. and Luther Schaffer ,",..,~,,\;' 4""h'i0",~,~.~"",;'.,"",,,,,,;;~.,.;. 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