Hollenberg v. Skell - Complaint

Case 2:16-cv-09269-FMO-SK Document 1 Filed 12/15/16 Page 1 of 64 Page ID #:1
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E. Paul Dougherty, Jr., Esq.(State Bar No. 182138)

aul.dou hert wilsonelser.com
raig
unter, Esq. tate Bar No. 71299)
crai .hunter wilsonelser.com
tate Bar No. 217864)
Jura Zi as, sq
Jura.zibas wiIsonelser.com
WIL N, + L ER,M KOWITZ,
EDELMAN &DICKER LLP
555 South Flower Street, Suite 2900
Los Angeles California 90071
Telephone: 213)443-5100
Facsimile: 213)443-5101
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Attorneys for Defendants and Cross-Complainants,

SKELL,INC., and LORENZO MAGGIORE
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UNITED STATES DISTRICT COURT
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CENTRAL DISTRICT OF CALIFORNIA
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Case No:
JOHN HOLLENBERG,
individually and doing business as
JLH ENTERPRISES,
NOTICE OF REMOVAL OF ACTION

PURSUANT TO 28 U.S.C. SECTIONS
1331. 1441
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Plaintiff,
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(FEDERAL QUESTION)
Removed from the Superior Court ofthe
State of California, County of Los
Angeles, Case No. LC104710
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v.
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SKELL,INC., a California
corporation; LORENZO
MAGGIORE,an individual; and
DOES 1 through 25, inclusive,
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Defendant.
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SKELL,INC., a California
corporation, and LORENZO
MAGGIORE,an individual,
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)
)
)
Cross-Complainants, )
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NOTICE OF REMOVAL OF ACTION PURSUANT TO 8 U.S.C. 1331, 1441
2649983v.1
v.
JOHN HOLLENBERG,an
individual,
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Cross-Defendant.
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7 TO THE CLERK OF THE UNITED STATES COURT FOR
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CENTRAL DISTRICT OF CALIFORNIA:
PLEASE TAKE NOTICE that Defendants and Cross-Complainants
10 SKELL, INC.,
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a California corporation (hereinafter "Cross-Complainants")
hereby seek removal of Case Number LC104710 of the Superior Court of the
12 State of California for the County of Los Angeles to the United States District
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Court for the Central District of California (Western Division) pursuant to 28
14 U.S.C. Sections 1331 and 1441.

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Removal ofthis action is proper for the following reasons:
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JURISDICTION EXISTS UNDER 28 U.S.C. SECTION 1331
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Subject matter jurisdiction rests with the federal courts in this action on the
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basis of federal question jurisdiction pursuant to 28 U.S.C. Section 1331, insofar
19 as the first four claims in the Cross-Complaint arise out of patent infringement
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under 35 U.S.C. Section 271, trademark infringement, under 15 U.S.C. Section
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1 114, and federal unfair competition and false designation of origin under 15
22 U.S.C. Section 1125. The District Court has original jurisdiction over this action
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and Cross-Complainants may remove the action pursuant to 28 U.S.C.
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Section1441 as follows:
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II.
REMOVAL IS TIMELY
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Removal under this Notice is timely under 28 U.S.C. Section 1446(b). That
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section reads that, "[t]he notice of removal of a civil action or proceeding shall be
28 filed within thirty days after receipt by the defendant, through service or
.
2
2649983v.1
otherwise, of a copy of the initial pleading setting forth the claim for relief upon
which such action or proceeding is based.
Complainants filed this Notice on the same day that federal question jurisdiction
.." [Emphasis added.] Cross-
4 ~ under 28 USC Section 1331 First Arose. That is, on December 14, 2016, in
5
response to the Complaint that Plaintiff served on Cross-Complainants on
6 November 16, 2016, Cross-Complainants filed an Answer to the Complaint and a

7 Cross-Complaint, the latter being compulsory under Code of Civil Procedure
8
Section 426.30(a). In the Cross-Complaint, Cross-Complainants allege federal
9 questions in the first four causes of action of that pleading, namely, patent
10 infringement, trademark infringement, and federal unfair competition AND false
11
designation of origin as alleged in Section I, above. Moreover, both the Answer
12 (at 16) and the Cross-Complaint (at 4-6) asserted the right to remove the
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action under federal question jurisdiction.
14 III.
JOINDER
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Cross-Complainants have met the requirements of 28 U.S.C. Section
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1446(b)(2)(A), which requires that "all defendants who have been properly joined
17 and served must join in or consent to the removal of the action" under 1441(a).
18 Here, under the Cross-Complaint there are no other defendants (cross-defendants),
19 other than Plaintiff and Cross-Defendant, John Hollenberg. Cross-Complainants
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have sued no "Does" as cross-defendants, who would otherwise have been
21
ignored for purposes of determining removal.
22 IV.
STATE COURT FILE
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Cross-Complainants attach hereto, as exhibits, true and correct copies of all
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pleadings, process and orders in the state court action, served upon them as
25
defendants in that action, pursuant to 28 U.S.C. Section 1446(a), as follows:
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EXHIBIT A
Summons and Complaint
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EXHIBIT B
Notice of Case Management Conference
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EXHIBIT C
Answer to Complaint
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2649983v.1
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EXHIBIT D
V.
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Summons and Cross-Complaint
REQUIRED NOTICES TO U.S.P.T.O.

Pursuant to Local Rule 3-1, cross-complainants attach hereto, as e~ibits,
true and correct copies of the notices required to the US Patent and Trademark
Office (on Form AO-120) for the patent and trademark claims made in the CrossComplaint, as follows:
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EXHIBIT E
Form AO-120 -patents
EXHIBIT F
Form AO-120 -trademarks
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EXHIBIT G
Form AO-120 trademarks(continued)
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VL
DEMAND FOR JURY TRIAL
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Cross-Complainants respectfully demand a jury trial in the removed action.
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WHEREFORE, Cross-Complainants pray that this action be removed from

Los Angeles County Superior Court to the United States District Court for the
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Central District of California, Western Division..
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WILSON ELSER MOSKOWITZ EDELMAN

& DICKER LLP
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DATED: December 15, 2016
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Jura Zibas
Attorneys for Defendants and CrossComplainants SKELL,INC., and LORENZO
MAGGIORE
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G~
2649983v.1
Exhibit"A"

M-1
SU ~ AONS
(CITACION JUD1ClAL)
FOR COURT USf ONLY

(
SOLD PARR USO DE LA CORTq
NOTICE TO DEFENDANT:
(AVlSO AL DEMANDADO):
SKELL, INC., a California corporation; L~RENZO MAGGIORE, an
individual; and DOES 1 through 25, inclusive
;.
.~
YOU ARE BEING SUED BY PLAINTIFF:
(
LO ESTA DEMANDANDO EL DEMANDAN7Ej:
JOHN H4LLENBERG, individually and doing business as JLH
ENTERPRISES
NOTICEI You have been sued. The court may dec'~de against you without your being heard u less you respond within 30 days. Read the information
below.
You have 30 CALENDAR DAYS after this summons and legal papers ere served en you t Fite a written response at this court and have a copy
served on the piaintifl. A letter or phone call will not protect you. Your written response must be in proper legal form if you want fhe court to hear your
case. There may be a court form that you can use for your response. Yau can find these cou fortes and more Information at tha California Courta
online 5etf-Help Center(www.00urtinfo.ca,govfsalfie/p), your county law library, or the couK Ouse nearest you. If you cannot pay the filing fee, ask
the Court clerk for a fee waiver form. If you do not file your response on fime, you may lose th case by default, and your wages, money, and property
may be taken wRhout further warning from the court.
There ere other legal requirements. You may want to colt an attorney right away. If you do of know an attorney, you may want to call en attorney
referral service. It you cannot afford an attorney, you may be eligible for free legal services fr m a nonprofirt legal services program. You can locate
these n~nprofd groups at the Cal'rfornia Leal Services Web site (www.lswheJpcalifomla.orq), the California Courts Online Self-}ielp Center
(www.courtinfo.ce.gov/selfhelA), or by c:ontactin9 your local court or county bar association. NOTE: The Court has a statutory lien for waived fees artd
posts on any settlement or arbltretion award of $10,800 or more in a civil case. The court's li musl be paid before the court wiU dismiss the case,
rAVISO! Lo hsn demandedo. Si no responds dentro de 30 d(as, !a torte puede decidrr en su contra s!n escuchar su versi6n. Lea la irrformaclbn a
continuaGdn
gene 30 DlAS DE CALENDAR/b despu~s de que le entreguen esla cltactidn y popsies!eg !es pare presenter una respuesta por escrito sn este
apes y hater que se ent~egue una Copia al demandartte. Una caria o una !lemeda telel6nics o !o prolegen. Su naspuesta por escrito frerte que esfar
en formato legal correcfo si desea que procesen su caso en fa torte. Fs posFble que haya un formu~arlo qve usted pueda user pare sa respuesta.
Puede errcorrtrar estos tormularios de 1a torte y mks rnformaei6n en e/ Centro Be AyuOe de les Codes de Calitomia (www.sucorte.ca.gav), er+ ra
brbliotecs de !eyes de su corrdado o en !a carte Qve !e quede m8s ceres. S+ no puede pager la cuata de pr~sentaci6n, plda s!secretario de !e code
que le d~ u~ formulario de exencl6n de pogo de cuotas. Si no presenfa su respuesta a Gem , puede pe~der el ceso por incumplim(ento y la torte !e
podr8 guitar su sueldo, dlnero y Metres srn m6s adverfencia.
Hsy atros r~qulsitos legates. Es recomendable que IJame e un abogado inmediatemete. S+ no conoce a un abogado, puede llamar a un servicio de
r~misibn a abog~vdos. S!no puede pager a un abogedo, es poslb/e que cumpfa con 1os requf iros Para obtener servioios 7egales gratuitos de un
programs de servidos /egeles sin hrtes de lucro. PueCe encontrar esfas grupos sin Vines de!cro en a~ sftro web de Calitomfa Legal Services,
(www.lawhelpcaliFomia.or~, en e!Centro da Ayuda de las Codes de Califamia, {www.sucort .ca.gov} o poni~rrdose en contacto con la cote o e!
coJeglo de aboQedos locales. AVlSO: Por ley, le torte Gene Oerecho a reclamar las cuofas y s costos exentos por lmpaner un gravamen spore
cuslquierr~cuperecibn de 310,000 d mfis de valor+t~cibida mediante un acuerrlo o una conceslbn de er6itra/e en un caso de derecho civil. Tlene que
pagan e!gravamen de la torte antes de qua la cote pueda desechar et caso.
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SUPERIOR CURT OF THE-STATE OF~CA.I;IFURNIA
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CASE MJh~EA
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plaintiff or his attorney of record by delivering tha cagy in person tfus date to couusci far plaintiff or plaintiffin pm
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CITAC/ON JUDIGIAL)
NOTICE TO DEFENDANT:
(AV1S0 AL DEMANDADO):
SKELL, INC., a California corporation; L~RENZO MAGGfORE, an
individual; and DOES 1 ti~rough 25, inclusive
YOU ARE BEING SiJED BY PLAINTIFF:

(LO ESTA DEMANDANDO EL DEMANDANTEJ:
JOHN HC7LLENBERG, individually and doing business as JLH
ENTERPRISES
NOTICE! You have been sued. The court may decide against you without your being heard unless you respond within 30 days. Read the information
below.
You have 30 CALENDAR DAYS after this summons and legal papers are served on you to file a written response at this court end have a copy
served on the plaintiff. A letter or phone call wlll not protect you. Your written response must be in proper legal form if you want the court to hear your
case. There may be a court form that you can use for your response. You can find these court forms end more Information at the Callfflrnia Courts
QnEfne Self-Help Center (www.courtinfo.ca.gov/se!/he/p}, your county law library, or the courthouse nearest you. If you cannot pay the filing fee, ask
the Gourt clerk for a fee waiver form. If you do not file your response ao time, you may lose fhe case by default, and your wages, money, and property
may be taken without further warning from the court.
There are other legal requirements. You may want to call an attorney right away. If you do not know an attorney, you may want to ca11 an attorney
reterrai servloe. If you cannot afford an attorney,you may be eligible for free legal services from a nonprofit legal services pregram. You can locale
these nonprofit groups at the California Legal Services Web site (wwwJawhelpcali(omia.org), the California Courts Online Sel[Help Center
(www,courtinfo.ca.gov/se/fhelp}, or by contactlrsg your focal court or county bar association. NOTE: The court hes a statutory lien (ar waived fees and
costs on any settlement or arbitration award of $1 Q,~00 ar mare in a civil case. The cpurt's lien must be paid before the court wit! dfsmis5 the case.
rAVlSO! Lo hen demandado. Si no responde dentro de 30 d/es, la oorte puede decidir en su contra sin escuchar su version. tea la informacibn a
continuacf6n
Terse 30 DlAS DE CALFNDARIO despu&s de que !e antreguen este citacibn y papeles legates pare presenter una raspuesta por escrito en esta
carte y hater que se enbeque una copia a/ demandante. Una carte o una Namada telefbnlca no !o profegen. 3u respuesta par escr+to tiene qua ester
en formato legal ~orrecto si desea que procesen su caso en la torte. Es posib/e que haya vn formularlo que usted pueda user pare su resp~esta.
PueC1e eneontrar estos /ortnularips de la carte y m8s fnformacidn en e! Centro da Ayuda de !es Cones de California (www.sucorte.ca.gov), en la
biblioteca de Jeyes de su condsdo o an !a carte que !e quede mks carte. S!no puede pager la cuafa de presentation, pida al secretano de la c~orte
Que !& d~ un iom~ulano Ile ezencidn de pogo de cuotas. Si no proSenta su respuesta a trempo, puede percler e/ caso par lncumplrmiento y la carte !e
podr8 guitar su sueldo, dlnero y Blanes sin mks edveriencia.
Hay afros requisites legates, Es recomendable qua !lame a un abogado inmediatamente. Si no conace a un abogadp, puede llamar a un servicio de
ramisidn a abogadas. Si no puede pager a un abogado, es posl6le qua cump/a con !os requisitos pare obtener ssrvfcios /ego/es gratuitos de un
prvgrama de serviaos legates sin fines de lucro. Puede encontrar estos grupos srn ffnes de lucra en e! sifio web de Ca(i(ornfa Legal Services,
{www.lawhelpcallfomia.org), en el Centro de Ayuda de !as Cartes de California,(www.sucorte.ca.gav) v poni~ndose en corrtacto con Ja torte o e!
colegio Ce abogados locales. AV1S0: Par ley, !a torte tierte derecho a reclamar las cuotas y los costos exentos por7mponer un gravamen sabre
cuafquier recuperation de S10,000 d mks de valor recibida mediante un aouerdo o una concesibn da erbiMsje en ~n caso de de2cho civil. Tiene qua
pa ar a!gravamen de !e cafe antes de qua /a torte pueda desechar e!casa.
e name an a ress o e cou B:

(E! nambro y irscci R de a torte s):
CASE NUMBER: ~+ ~ ,f~ ~ ~j ~
~roa~~o ~,~8a4u
Su aria Co of e ate o all rnia

ivi
No Va y 'stric - U invite
942 en Id van
Chats orth, A 91317
~~
~
The name, address, and telephone number of plaintiffs attorn ~or plaintiff without an attorney, is:
(E! nombr~, la direction y e! ntimero de te!$fono del abogado 1 demdndante, a del demandante qua na Ilene abogado, es):
Christine C. L den
LYDEN LAW ~C~,PORATION
6320 Canoga A
ue, Suite 1400
Woodland FIiIIs A 97367
DATE:
(For proof of ;
(Para prue6a
ISEnc~
Fam A.dopled for Mandatory Use

J+~ic~at Council of Cd'aomia
SUM.tQO (Rev. ,hiy 7.20QBI
.,~
Tel: 818-888-8866
~~
~-
Fax:818-8$8-b988
~~2
Cleric, by
,Deputy
rs summons, use Nroot of SerrLce or Summons ~rorm rvs-u7v~

de esta citation use el fomtu o Proof of Service of Summons,
NOTICE TO THE PE~SON SERVED: You are served
1. ~` as an indiv~ual defendant.
2. ~ as the per~Son sued under the fictitious name of (specify):
~~LL, INC . , A CALIFORNIA CORPORATION
3. [_~1 on behalf of (specify):
under. ~~1 CCP 418.10 (corporation)
~' CCP 41820 (defunct corporation)
CCP 418.40 (as$aciation or partnership)
_ '. other (specify):
4. [ ] by personal deNvery on (dale}:
SUMMONS
[-- _ 1 CCP 416.80 (minor)

-,j CCP 418.7Q (Conservatee)
~~ CCP 416.90 {authorized person)
~U U
F],
Pt
e. ~ a+
Code d Givll Procetlure g 412 20, 485
IlS
we

ATTORNEY OR PARTY WITHOUT ATTORNEY(Nema,SYale Ber number,end eddmssJ:
FOR COURT USE ONLY
Christine C. I~yden, SSN 910592

LYDEN LAW CORPORATION
6320 Canoga Avenue
Suite 1400
Woodland Hills, CA
TELEPHONE NO.:
FAx Na.: $18-888-5988
$~ $-SSS-S$FjG
ATfORN YFOR Name: Plall'I I~ aJOIlY7 HOIIB11E~e~

SUPERIOR COURT
COU
CI4LIFpR
of Los Angeles
S~E~-~REss~: 2 Pe
C
MAILING ADDRESS: y't2J
Id
1.1
nue
UE
~~,o Zip ~oo~:Chats ort ,~ g ~ ~

a~,Hc,+r~~;Cha s r~ Br ch
case NAw~: Hollen g Skel~
~x
CIVIL CASE COVER SHEET

Unlimited
CLimited
Amount
emanded
demanded is
exceeds $25,000
25 000 or less
Campiex Case besignation

C] Counter [~ Joinder
Filed with first appearance by defendant
(Cal, Rules of Court, role 3.402}
CASE NUMdEFt
AGE:
DEPT:
~earna r-v uetww inu~i un cvrrr tattru SCe tns(rucuorrs Vn d e GJ.
1. Check one box below for the case type that best describes this case:
Auto Tort
Auto(22)
Uninsured motorist(48}
other PllPD1WD (Personal Injury/Property
Damaga/Wrongfui Death} Tort
~Asbestos(04}
Q Product liability (24)
[
~ Medical malpractice (45)
0Qther AUPD/WD (23)
Non-PUPDIVYD tOther) Fort
~'
Contract
~Breach of contract/warranty t06j
~]Rule 3.740 collections (09)
O pier ootlections (09)
0Insurattce coverage(78)
~ Other contract(37}
Real Property
~ Eminent domainllnverse
i
condemnation (i4}
Provisionally Complex Clvll Utlgation

(Cal. Rules of Court, rules 3.400-3.403)
C]Antitrusfll"rade regulation {03}
~]Construction defect(16)
0Mass tort (40)
~ Seourifies litigation (2$)
C EnvironmentaUToxic tort (30~
~ Insurance coverage claims arising from the
above listed provisionally complex case
types(41)
1 - J wrongful eviction {33}
[
~ Business tortlunfair business practice(07) ~Other real property (26)
[_]Civil rights (OB)
Unlawful Detainer
Defamation {73)
[~ Commercial(31)
[
~ Fraud (16}
~Residential (32)
[
~ Intellectual property (19)
~ Drugs (38)
[
~ Professional negligence (25}
Judicial Review
~ Asset forfeiture (05)
Other non-PI/POJWD tart(35)
[J PeGtlon re: arbitration awartt (11)
Employment
[
~ Wrongful termination (36)
(~ Writ of mandate (02)
~ Otherjudiclal review (39)
Other employment(~5)
Enforcement of Judgment
[,]Enforcement of judgment(20)
Miscellaneous Cfvl! Complaint
0RfCO (27)
~]Other complaint(nat specifred above)(42)
Miscel~aneaus Civil Petition
[]PaRnership and corporate governance X27)
~ Other petition (not specked above](43}
2. This case ~ is ~ is not complex under rule 3.400 of the California Rules of Court. If the case is complex, mark the
factors requiring exceptional Judicial management:
a, C]Large number of separately represented parties d. Q Largo number of witnesses
b, ~ Extensive motion practice raising difficult or novel e. [._~J Coordination with related actions pending in one or more courts
in other counties, states, or countries, or (n a federal court
issues that will be time-consuming to resolve
f. [_,] Substantial {~ostjudgment judicial supervision
c. ~ Substantial amount of documentary evidence
nanmonetary; declaratory or injunctive relief c. Cj punitive
3. Remedies sought (check a!/ that apply): a. ~X] monetary b. ~
4. Number of causes of action (specify): 4
5. This case [~ is ~]is not
a class action suit.
8. Jf there are any known related cases, frle and serve a notice of related cos .( u may use fo
Date: Saptember 34, 2016

Christine C. Lyden, SBN 110892
-015.)
(TYPE OR PRItJT NAk1E)
NATURE OF PARTY OR ATT
EY FOR PARTY
N OTICE
Plaintiff must file this cover sheet with the first paper filed in the action or proceeding {except small claims cases or cases filed
under the Probate Code, Family Code, or We{fare and Irtsfitutions Code).(Cal. Rules of Court, rule 3.220.) Failure to ftle may result
in sanctions.
.File this cover sheet in addition to any cover sheet required by focal court rule.
.If ch)s case is complex under rule 3.400 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on ail
other parties to the action or proceeding.
Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only,
rm Adoptedior Mandatory Use
Iudidal Council of Glifania
CM~70[Rao. July 1, 2007
CIVIi. CASE COVER S NE T
~
SO
S.
~a
Cal. Ruie3 of Court, rules 2.3p, 3 Z20, 3.460-3.403, 3.740;

Cel. 9tantlards d Judklal Pdmiraslraq~an, aid. 3,10
CM-010
1NST'RUCTIONS ON HOW TO COMPLETE T~E COVER SHEET
To Plaintiffs and Others Filing Ffrst Papers. If you are fling a first paper (f r example, a complaint) In a civil case, you must
complete and frle, along with your first paper, the Civil Case Cover Sheet contained on page 1. Thls information wi11 be used to compile
statistics about the types and numbers of cases filed. You must complete items 9 through 6 on the sheet, In item 1, you must check
vne box for the case type that best describes the case. If the case fits both a gen ral and a mare specific type of case listed in item 1,
check the more specific one. ff the case has multiple causes of action, check the ox that best indicates the primary cause of action.
To assist you in completing the sheet, examples of the cases that belong under etch case type in item 7 are provided below. A cover
sheet must be filed only with your initial paper, Failure to file a cover sheet with the first paper filed in ~ civil case may subject a party, its
counsel, nr both to sanctions under rules 2.30 and 3.220 of the California Rules of Court.
To Parties in Rule 3.740 Collections Cases. A "collections case" under rule 3,74 is defined as an action for recovery of money owed
in a sum stated to be certain thaf fs not more than $25,000, exclusive of interest a d attorney's fees, arising from a transaction in which
property, services, or money was acquired on credit. A coAectians case does of include an action seeking the following: (1) tort
damages,(2) punitive damages,(3) recovery of real properly,(4)recovery of per a[ property, or(5} a prejudgment writ of attachment.
The identificatlan of a case as a rule 3.740 collections case on this farm means th f it will be exempt from the general time-for-service
requirements and case management rules, unless a defendant files a responsive p eading. A rule 3.74b collections case will be subject
to the requirements for service and obtaining a judgment in rule 3.740.
7o Parties in Complex Cases. In complex cases only, parties must also use t Civil Case Cover Sheet to designate whether the
case is complex. If a plaintiff belie+res the case is complex under ru}e 3.400 of the California Ftules of Court, this must be indicated by
completing the appropriate boxes in items ~ and 2. If a plaintiff designates a case s complex, the cover sheet must be served with the
complaint on al( parties to the action. A defendant may file and serve no later t an the time of its fret appearance a joinder In the
plaintiffs designation, a counter-designation that tha case is not complex, or, if the IaintifF has made no designation, a designation that
the case is complex.
Auto Tort
Auto (22}Personal Injury/Property
DamagelMfUrongful Death
Uninsured Motorist(46)(ilthe
case involves sn uninsured
motorist claim subject to
arbllretian, check this item
instead of AUtoJ
Other PllPD1WD (Personal injury!
Property OamagelWrongful Deakh)
Tart
Asbestos (04)
Asbestos Property Damage
Asbestos Personal InJury/
Wrongful Death
Product Liability (not asbestos or
foxirJenvironmenta!}(24)
Medical Malpractice (45J
Medical MalpracticePhysiclans &Surgeons
Other Professional Health Care
Malpractice
Other PI/PD/WD (23)
Premises LiabYity (e.g., slip
and fall)
Intentional Bodily InJuryIPD11ND
(e.g., a~sauft, vandalism)
I ntentional infliction of
Emotional Distress
Negligent Infliction of
Emotional Distress
Other PVI~DIIND
Non-PUPD/VW {Other) Tort
Business TvrtlUnfa(r Business
Practice(0~
Civil Rights (e.g., discrimination,
false arrest)(not civil
har~ssmenq (OS)
Defamatwn (e.g., slander, Ubel)
(t3}
Fraud {78)
lntetlectual Property {19)
professional Neg{igence (25}

Legal Malpractice
Other ProfessEonel Malpractice
(
not medical orlegaQ
Other Non-PIlPD1WD Tort(35)
Employment
Wrongful Termination (36)
Other Employment {15)

~R.v. Muir,, zoo~I
CASE TYPES AND EXAMPLES ,

Contract
Breach of ContractANarranty {O6)
Breach of RentallLease
Contract(not unlaw/ul detainer
or wrongful evictianj
ContractlWarranty BreachSeller
Plaintiff {not Iraud oI neglrgenceJ
Negligent Breach of ContracU
Warranty
Other Breach of Contract/Warranty
Collections (e.g., money owed, open
book acwunts}(09}
Callectlon Case---Seller Plaintiff
Other Promissory Note/CoUeetions
Case
Insurance Coverage (not provisiona~ty
complex)(18)
Auto Subrogation
Other Coverage
Other Contract(37)
Contractual Fraud
Other Contract Dispute
Real Property
Eminent Domainlfnverse
Condemnation (ia)
Wrongful Eviction (33}
Other Real Property (e.g., quiet title)(2 }
Vdrit of Possession of Real Property
Mortgage Foreclosure
Quiet Title
Other Real Property (no!eminen!
domain, lantJlord/tenant, or
for~dosu,~j
t3n~awful Detainer
Commercial (31)
Residential(32)
Drugs (38} ~'rf ff~e case involves 1Rega1
drugs, check this item; otherwise,
report ss Commercial ar Resrdentia
Judicial Review
Asset Forfeiture {05)
Pet~tlon Re: Arbitration Award (11}
Writ of Mandate (d2)
Writ-Administrative Mandamus
Wr+t-Mandamus on Limited Court
Case Metter
Writ-Other Limited Court Case
Review
Other Judicial Review (39)
Review of Health Offiicer Order
Notice of Appeal-Labor
Commissioner Appeals
SHE
Provisionally Complex Civil Litigation (Cal.

Rules of Court Rules 3.404-3.403)
AntitrustlTrade Regulation (03)
Construction Delect(10)
Claims Involving Mass Tort(40)
Securities Litigation (28}
EnviranmentaUToxic Tort(30)
Insurance Coverage Claims

{arising hum provisionally complex
case type l7sted above){d 1)
Enforcement of Judgment
Enforcement of Judgment(20)
Abstrect of JudQrnent{Out of
County}
Confession of JudgmenE(nondomestic relations)
Slstar Stets Judgment
Administrative Agency Award
(not unpaid taxes)
PetitionlCertlflcetion of Entry of
Judgment on Unpaid Taxes
Other ~nforcemsnt of Judgment
Case
Miscellaneous Civil ComplalM
RICO {27)
Other Complaint(not specl~ed
abovB)(42)
D~daralory Relief Only
Injunctive Relief Only (nonherassment)
Mechanics Llen
OtherCommerdal Complaint
Case (non-brf/non-complex)
Other Civil Complaint
(iron-brt/rron-complex)
Mlsce[laneous Clvlt Petltfon
Partnership and Corporate
Governance (21)
Other Petition (riot speallied
above)(d3)
Civil Harassment
Workplace Volence
E1derlDependentActult
Abuse
Election Contest
Petition for Name Change
Petition for Relief from Lale
CIaIm
Other Civil Petition
Papa z of z
::r+oRrrir~~: Hollenberg v. Skell, et al.
case rwa+eeR
CIVIL CASE COVER SHEET ADDENDUM AND

STATEMENT OF LOCATION
(CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE L~CATIQN)
This farm is required pursuant to Loca! Rule 2.3 in ap new civil case 1~Ilrtgs In the Las Angeles Superior Court.
Item I. Check the types of hearing and III in the estimated length of hearing expected for this case:
JURY TRIA!?DYES CLASS ACTION?~ YES LIMITED CASE1~YH5 TIM EST(MATEfl FOR TRlAL7
~ I HOURSI(~ DAYS
Item II. Ind)cate the correct district and courthouse location (4 steps ff yo checked "limited Case", skip to Item III, Pg. 4);
Step 'I: After first completing the Civil Case Gover Sheet form, find the main Clvil Case Cover Sheet heading for your
case in the !eft margin below, and, to the right in Column A,the Civil Ca e Cover Sheet case Eype you selected.
Step 2: Check one Superior Caurt type of action in Column B below
ich best describes the nature of this case,
Step 3: In Column G,circle the reason for the court location choice tha~ applies to the type of action you have
checked. For any exception to the court location, see Local Rufe 2.3.
~ Applicable Reasons for Choosing Courthouse ~oca'tion (see Goiamn C below) ~
6. Lbcatlon of properly or petmanen#ly garaged vehicle.
7. Location where peGfioner resides.
8. Lpcatlon wherein defendanUrespondent functions wholly.
9. Lpcation where one or more of the partier reside.
S 0. l.pcation of Labor Commissioner Office
71. andatory Filing Location (Hub Case)
1. Class actions must be filed in the Stanley Mosk Courthouse, central district.
2. May be filed in centre)(other county, or no bodily injury/property damage).
3. Location where cause of action arose.
4, location where bodily injury, death ar dama9e occurred.
5. Location where performance requirod or defendant resides.
Step 4: Fill in the information requested on page 4 in Item III; complete Item IV. Sign the declaration.
._ ,
A -y
Civil Cade Cover Sheet
Category No. ~
0
Auto (22)
- B
Type of Actin
(Check only, , -,)
~]A7100 Motor Vehicle -Personal InjurylP party DamagelWrongful Death
C Appllcati~e
Rea'sats -Sea Step 3Abova
t., 2., 4.
Uninsured Motorist(46)
asbestos(oa)
0
Fo ,~
`
a is
O
Product Uabitity (24y
~~
c~
~
o ~
a
Medical Malpractice (45}
j~ A7110 Personal Injury/Property Damage
rongful Death Uninsured Motoris 1., 2., 4.
0A6070 Asbestos Property Damage
2.
0A7221 Asbestos -Personal InjurylWrong I Death
2.
~ A7260 Product Liability (naf asbestos or oxic/environmental)
1., 2., 3., 4., 8.
A~210 Medical Malpractice - Physielans Surgeons
1., 4.
A7240 Other Professional Health Care
t., p,
(practice
A7250 Premises Liability (e.g., slip and fall)

a rn
~ ~
m
O~
Other Personal
Injury Property
Damage Wrongful
Death (23)
IACIV 109(Rev 3115)
LASC Approved 03-Od
0Ai230 lntentlorisl Bodily InjurylProperty amagelVJrongful Death (e.g.,

assault, vandalism, etc.}
1., 4.
~., q,
~ A7270 Intentional Infliction of Emotional isV955
1., 3.
~] A7220 ~Yher Personal Injury/Property D
~~ 4
age/Wrongful Death
CNIL CASE COVER SHEET A~DENDUM

AND STATEMENT'OF LOC TION
Local Rule 2.3

Page 7 oi4
uEcwos
sHORT Tine. }.~p~dGtlbe~g v. Skell, 8f al.
casE ~u~+a~rx
Q
Civi! Case Cover Sheet
Category No.
~
Type of Action
(Check only ore)
Business Toni(07)
~~
o
e~.~
o
L
C Applicable
Reasons -See Step 3
Above
~!p~p~g (}ther CommerciellBusirr~ss Tart (not fraudlbreach of coniracC}
T., 3.
Civjl Rights (OS)
~]A800b Civil Rights/Discrimination
1., 2., 3.
Qefamation (13)
~ A6010 Defamation (siandedlibel)
L,2 3,
~~
'
_
~
Fraud (16}
C
O
i
a ~
c
0A6D13 Fraud (no contract)
Arofess(onai Negligence (25}
zo
Other {35)
e
E
fl
n
.
~ 2., 3,
',
~~'A8017 Legal Matpraetice
A6D50 Other Professional Malpractice gnat medical or legal)
1., 2 3.
~ A6a25 Dther Npn-Personal InjurylProp~rty Damage kort
2.,3.
i., 2., 3.
~ A&D37 Wrongful Termination
Wrongful Termination (36)
~
r--
C3ther Employment(15)
E
w
1., 2., 3,
~~Q~a other EmpioymeRt Gomptaint Case
9 2., 3.
A61p9 Labor Commissioner Appeals
1p,
[
~ A6004 Breach csf Rental/Lease Confract(not ~rnlawfW detainer or wrnngiul
evictiat~)
~ A6008 ContractiWarr~nty Breach -SeOer Plaintiff(no fraudtnegligence)
Breach of ContracU ~lJarranty L
t~~~
[~
A60'l9 Negligent Breach otC~ntracWVarra~ty (no fraud)
(not insurance)
A6028 Ot~ref Breach of ContractlVUarranty (not fraud or nagfigence)
U
Y~
i
Collections (09}
c
U
Irrsuranae Ctiverage (18)
tither Contract (37}
2"~~
1.. ~-" ~.
T"~'~
~ X6002 Collections Case-Seller Plaintiff.

A6012 t7Ch~~ PromFssory Note7Coflecii~a Case
Cj A8fl3~t GollEctions Cass-Purchased Debt (Charged 4fi Cc~nsurner Dabt
F~~rchas~d on or after Janua ~, 20~d
n
0
`
a
Wrongful Ev+anon {33}
Other Re21 Property (26)
2., 5, 11
5,6, 11
1., 2., 5 8.
%j A6009 Contractual Fraud
1., 2., 3., 5.
~ A6031 Tortious Interf'erencc
1., 2., 3., 5.
Q p~~~00 Eminent OomainlCondemnation '
1., 2., 3., 8.
Number of parcels
~.
~ A8023 Wr~ngtuf Eviction Case
2 B,
C A6018 Mortgage Foreclosure
p s.
C]A&032 Quiet Title
'
2,, g.
~~ ASd60 Other Real PropeRy {not eminent dpmain, landlordtienant, toredosure)

à
c
2., 5., 6, 11
~À6D'18 Insurance Coverage knot comply)
A6027 Ot~rer Con#ract Dispute not breachlinsurar~cetPraudlneglige~ce)

Eminent OomafnJtnvarse
Condemnation (1d)
~ ~
2., 8.
Unlawful Detainer-Commercial ~ A6021 Unlawful Detainer-Commercial (not drugs orwrongful evictions

(3y)
2., 6.
UnlawFul Detainer-ResidBntial
(32)
~~ A6fl20 Unlawful Detainer-Residential (npt drugs or wrongful eviction)
2 6.
('"'"''; A60?OF Untawful Detainer-Past-F4reclasurE
2., S.
Unlawful DetainerPost-ForeGpsure 34j

5
U~Iswiul Dafainer-Drugs (38) ~ A6022 Unlasviul Detainer-Drugs
',
LACIV 109 (Fiev 3115)

~ASC Approved 03-04
2., 8.
Local Rule 2.3
I~ND STATEMENT O~ ~t7G}~TIt~N
Page 2 of 4
'sHORrr~r~e~. Holleribefg v, Skell, et 81.
casEHUMseR
A
CJvil Case Cuver Sheet
Category No,
B
Type,of A~tlon
jCheck anly one)
Asses Forfeiture (03)

3
ai
m
i
s
'
o
a
Petttian re Arbitration (11)
Other dudicia) Review X39)

c
a
?., 6.
~ A8115 Petition to Gomp~IlConGrmNacate Arbitra#.ion
2 5,
CorssYruc(i~n pefeof ~1Q)
x
a
E
U
a
Claims(nvo~44~ Mass fiort
2., B.
~ A6t52 Writ - M2~ndart~us on Limited Court Case Matter
2.
A&153 Writ - Ofher Limif~d CouR Cass ~teview
Z.
~ A6150 Other Writ lJ~diClal Review
AntitrustlTrade Regulation (U3) ~ ABDfl3 Antitrust/"f`rade Regulation
rn
',
2.. 8.
'
1., 2., 8.
~ A6007 CanstruCtiarr Qef'ecE
1., 7_, 3.
~ pQ~~~ Maims lnvolv~ng Mlass Toff
1., 2., 8.
Sacuritfies Litigation (~8)
~ A6~35 Securities Litigation Gage
1., 2., 8.
To~c Tort
Er~vtronmental {305
~~ x6036 Toxic TortlEnvir~nmental
1 2., 3., S.
insurance Coverage Claims

from Complex Case j41)
~ A6Qta Insurance Coverage/Subrogation',(complex case only)
1., 2., 5., 8.
0
.y
a~i
~
o
.~
u~i
~ A6tD& Rsset Forfeifure Case
A6i6i Writ -Administrative Mandamus '

Wrif of Mandate (02}
C Applicable
Reasons -See Siep 3
Above
~
~
-s
o
2., 9.
A616o Abstract of Judgment
2., 6.
~'X1{17 Confession of Judgment (non-dori`nestic relations)

~ A614D Administrative Agency Award (nr~ unpaid faxes)
Enforcemenk
of.tudgment {20)
Other Campt~ints
(Not Specified Above)(42}
A6114 petiCion/Certifrcate for Entry of Ju igmenf on Unpaid Tax
2 B.
2., 8., 9.
1., ?., &.
~' A6030 Deciar~lory Relief C3nly
Y., 2., $.
~ ~~a~0 Rjunctive Relief O~sly(not domestictharassment)

~ R6fl11 Other Commercial Complaint Case (nbn-kort/non-complex}
~., 8,
ACODO Other Civit Complaint(non-torUrran-complex)

Partr+er~hip CQr~soratfon
G~vernenc~ ~~1)
~ ~~~~~ partnership and Carperate Govarj~ance Case
a
pt d
C
Other Petit nns (Nok

Specified lfibove)(43)
~
~ R8124 ElderlOspendent Adult Abuse Case
~ A619Q Election Contest
A617p PetJlifln for Relief from Lete Claim Law
~
] R610~ Okher Civil Petition
~ ~c~v cos ~REv sris~

t.~sc app~oW~~ os-~a
2., 3., 9.
27., 7.
Afi110 Petition for Change of Name

[_,~.
~~ ~
2., 3., 9.
A6123 Workplace Harassment
~ ~
1., 2., 8.
a ., Z., H.
2., 3., 9e
j~ A6121 Civil Harassment
~
a;
v
ai av~i >'
~ t~
2., 9.
2., 8.
A6112 Other En3orcement of Judgment G~sa

~ ftfi033 Racketeering (RIGOj Gase
RICO (27)
N ~
i
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a o
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A6141 Sister State Judgment
'~
CIVIL CASE Ct3VER SHEET ADDENDUM

/AND STATEMENT OF LC3CATiON
2., 3., 4., $.

2~, 9.
~~cat ~~ie 2.s

Pose 3 0~ a
SHORT TITLE: HOII@Rb~(~ V. SICBII, 8t c~I.
CnSE NUMBER
Item III. Statement of Location: Enter the address of the accident, parts residence or place of business, performance, or ofher
circumstance indicated fn Item II., Step 3 on Page 1, as the proper reason for filing in the court location you selected.
REASON: Check the approprtate boxes for the numbers shown
under Column C for the type of action that you have selected for
this cas8,
an~ess: 22921 Saficoy Street
~1.D2.03.~4.~5.~fi.O7.~8.C~9.X10.01'~.
CITY;
West Hills
STATE.
CA
ZIP CODE'
91304
Item [V, peclarafion ofAssignmerrf: I declare under penalty of perjury under the laws of the State of California that the foregoing is true
and correct and that the above-entitled matter is properly fined for assignment to the UNLIMITED
courthouse in the
NORTH VAl.L.EY
District of the Superior Gourt of Califvmla, County of Las Angeles [Code Civ. Proc., 392 ei seq., and Local
Rule 2.3, subd.(a).
Dated: September 30, 2016

(SIGNATURE OF ATTORNEYlFILING PARTY)
PLEASE HAVE THE FOLLOWING ITEMS CC3MPLETED AND READY TQ BE FILED 1N ORDER Ta PROPERLY
COMMENCE YOUR NEW COURT CgSE:
1. Original Complaint or Petition.
2. If filing a Complaint, a completed Summons form for issuance by the Clerk.
3. Civil Case Cover Sheet, Judicial Council form CM-d70.
4. Civil Case Cover Sheet Addendum and Statement of Location form, lACIV 109, lASC Approved 03-04(Rev.
03/15).
~. Payment in ful! of the filing fee, unless fees have been waived.
6, A signed order appointing the Guarciian ad Litem, Judicial Council form CIV-010, if the plaintiff or petitioner is a
minor under 18 years of age wilt be required by Courtin order to issue a summons.
7. Additional copies of documents to be conformed ~y the Clerk. Copies of the cover sheet and this addendum
m ust be served along with the summons and complaint, Qr other initiating pleading in the case.
LACIV 1U8(Rev SIf3)

LASC Approved 03.04
GIVII. CASE COVER SHEET ADDENDUM

AND STATEMENT aF LOCATION
Local Rule 2.3

Page 4 of 4
1
2
3
4
S
b
7
CHRISTINE C. LYDEN(SBN 110892)

LYDEN LAW CORPORATION
A Pzofessional Law Corporation
Woodland Hills, California 91367
Telephone: {818)885-886b
Facsimile: (818} 888-5988
Attorneys for Plaintiff,
JOHN HOLLENBERG, doing business as
JLH ENTERPRISES.
SUPERIOR CO~'RT OF'~"~E ST,A,'~'E Ok' CALI~'ORNYA
FOR THE COUNTY OF LOS ANGELES
10
lI
JOHN HC~LLENBERG, individually and doing

business as JLH ENTERPRISES,
12
CASE NO.
~~~
"BY FAX"
UNLIIYFITED CIVIL CASE
Plaintiff,
13
v.
14
SKELL, INC., a California corporation; COMPLAINT ~'4R DAMAGES,

L~RENZO MAGGTt~RE, an individual; and C~NSTRUCTIV~ TRUST AND
ACC4UNTlNG
DC3ES 1 through 25, inclusive,
15
16
Da~'endants.
17
18
19
COMES NOW the Plaintiff, JOHN L. HOLLENBERG, individually and doing

business as JLH ENTBRP~tISES, and.respectfully alleges as follows:
20
ALLEGATIONS CO~IV~ON TO ALL
2I
22
23
2A~
25
26
27
28
~YDEN
I.AW f'.nA Pf1R AT~iIN
CAUSES QF ACTION
1.
Plaintiff JOHN HOLI.ENBERG, is and at all relevant times herein alleged was ~
an individual oven the age of 18 years, and a resident of the State o~ California, County of Los
Angeles, and doing business under the fictitious name of JLH ENTERPRISES (hereinafter
Plaintiff or "JLH"). JLH is and has been engaged in the business o~ marketing, distribution
and value-added reselling of products on the open market since 1995.
2.
Defendar~t SKELL, INC, (hereinafter "SKELL"), is and at all relevant times
herein alleged was, a ca~poration organized and existing under the laws of the State of
Page 1 of 11
COMPLAINT FOR DAMAGES,CONSTRUCTIVE TRUST ANI? ACCOUNTING
California wish its principal place of business situated in the County of Los Angeles, State of
Galifornia.
3.
Defendant LORENZO MAGGIORE ("MAGGIORE") is and at all relevant
tinnes herein, was an individual aver the age of Z8 years, and a resident of the State of
California, County of Los Angeles.
4.
Plaintiff is infotmed and believes, and based thereon alleges that MAGGIORE is
the principal shareholder, director, and/or owner of SKELL, and that MAGGIORE, at all times
relevant hereto, directly owned, controlled, dominated, used, managed and operated SKELL.
Plaintiff is further informed and believe, and based thereon allege, that SKELL is, and at all
10 I times relevant hereto, has been a mere shell without sufficient assets to meet its debts
11
12
obligations and liabilities.

5.
Plaintiff is informed and believes, and based thereon alleges that at all times
13
rele~rant hereto SKELL failed to Follow corporate farxx~alities and failed to maintain a carparate
14
identity separate and. distinct from and that there existed a unity of interest and ownexship
15
between SKELL and MAGGIORE,such that SKELL is a mere business conduit and alter egt~
l6
ofIviAG~TORE.
17
6.
As to die events, transactions and tortious conduct alleged herein, adherence to
18
the fiction of the sepaaate legal existence of SI{ELL, an the one hand, and MAGGIORE, on
19
the other hand, as entities and persons distinct from one another would permit an abuse of the
?fl
co~porate privilege, would promote injustice and would sanetian a fraud upon the Plaintiff,
2l
7.
~lazntiff is informed and believes, and based thereon alleges that Defendants
22 ~ DOES 1 through 25, inclusive, and each of them, were in some manner responsible or legally
23 I liable for the actions, omissions, events, transactions and accur~-ences alleged herein, and are
24
therefore legally liable to Plaintiff for the relief sought herein. The true names and capacities,
25
and extent of involvement of such fictitiously named Defendants, whether individual, i
26
corporate, associate or otherwise, are presently unknown to ~'laintiff. Plaintiff will amend this
~~
Complaint to assert the true names and capacities of such fictitiously named Defendants when
28
LADEN
i swrnavnaaTinN
Page 2 of 11
COMPLAINT FOR DAMAGES,CONSTRUCTIVE TRUST AND ACCOUNTING
the same have been ascertained. For convenience, each reference to a named Defendant herein
shall also refer to the DOE Defendants, and each ot'them.
8.
Plaintiff is informed and believes, and based thereon alleges that at all material
times Defendants, and each of them, were the officers, agents, directors, shareholders,
employees, partners, joint-venturers; co-conspirators, owners, principals, and employees of the
remaining Defendants, and each, o~ them, and are, and at all times mentioned herein, were
acting within the course and scope of that agency, employment, partnership, conspiracy, joint
venture, or ovvnersh.ip. Plaintiff is further informed and believes, and based thereon alleges,
that the acts and conduct alleged herein were kno~~vn to and authorized, directed, and/or ratified
ld
by each ofthe other named T~efendants.
1I
9.
The obligations and claims sued upon herein were made and entered in and are
12
due and payable in the above-mentioned judicial district and county, State of California, and
13
are not subJect to the provisions of I $IZ,]0 and 2984.4 ofthe California Civil Code.
14
10.
Jurisdiction is proper pursuant to Code of Civil Procedure ~ 410.10, 410.50 and
15 '. 1060. Defendants' obligations and liability a~~ise in this county because perfo2mance is due and
Ib
damages are payable in this county and district at. 22921 Saticoy Street, West Hills, California
17
91304
18
11.
In or about late-2012, Plaintiff met with MAGGIORE in his capacity of owner
19
and Chief Executive Officer of SKELL and discussed becoming a distributor for a retail i
20
amusement product known ai d marketed under the trade name "BUG-A-SALT." Plaintiff is
21
informed, believes and thereon alleges that MAGGIORE is the inventor of the BUG-A-SALT
22
product. Plaintiff is further informed, believes and thereon alleges that. the patents and
23
trademarks associated with and integral to the BUG-A-SALT product are, and at all times
24
mentioned herein ~~ere owned by SK.ELL.
25
12.
By virtue of the meeting, Plaintiff acquired and was supplied with demonstration
2b
units of the BUG-A-SALT device and test marketed the product to six retailers for sale in the f
27
2012 Holiday season. By reason of Plaintiff's skill and efforts, and the devotion of labor and
28
know-how as an established promoter, distributor and reseller of products to trade and retail
Page3ofll
LSDEN
~ ~u)rneo(~oAT~1~y
CQMPLAINT FOR DAMAGES,CONSTRUCTIVE TRUST AND ACCOUNTING
establishments; the test ma~lcet results were positive.
cultivated relationships of trust ~~vith the referenced retailers in test marketing the product for
distribution.
4
5
13.
Plaintiff relied upon previously-
Following his successful test marketing ef~'orts; in early-January 2013, Plaintiff
discussed with VIA~'iGIORE on behalf of SKELL conditions under which Plaintiff would
6 ~ become a vaiue~added-reseller of the BUG-A-SALT product domestically and abroad. The

7
8
parties orally agreed that Plaintiff would act as a distributor of the BUG-A-SALT product.
14.
In reliance upon the oral agreement reached with MAGGIORE and SK.ELL, in
January 2013, Plaintiff conceived of and created an Amazor~.Com Listing for the product so
la
11
that the SUG-A-SALT product would attain international exposure through the word wide web
medium on the open market, thereby encouraging consumer and media interest in the product
12
and offering same for purchase At a protit.
I3
15,
In further reliance upon tale oral agreement reached with MAGGIORE and
14
SKELL, in January 2013, Plaintiff conceived of and created an eBay reseller listing for the
15
BUG-A-SALT product would attain international exposure through the world wide web
16
medium on the open market, thereby encouraging consume and media interest in the product
17
and offering same for purchase at a profit.
18
16.
Prior to the aforesaid listings by Plaintiff of the BUG-A-SALT product with
19
Amazon.Cvm, the items had not been advertised, promoted or offered for sale through this
20
medium.
21
17.
In 1Vla~ch 2013, Plaintiff devoted further lobar, effort and financial resouzces to ',
22
the advertisement and promotion of th.e BUNG-A.-SALT pzoduct for sale. Plaintiff attended the
23
ASD show as an observer in order to assess whether the product was suited to marketing to
24
buyers in the venue.
25
18.
By June 2013, through Plaintiff's advertising, promotion, marketing and
26
engagement of public and media interest, the BUG-A-SALT product attained the status of the
27
tenth highest selling product on the Amazon.Com web site.
28
Page 4 of 1 ]
LY~EN
1 ~~~1 IÀ ~11fA1~~M1/~~~
COMPLAINT FOR DAMAGES,CONSTRUCTIVE TRUST.AND ACCOUN"I'ING
19.
Plaintiff discussed wit~~ MAGGIORE on bek~alf of SI~ELL and agreed that
Plaintiff would attend the August 2013 ASD Las Vegas Consumer Goods Trade Show as an
independent distributor of the BUG-A-SALT product but that the expenses incun-ed would be
reimbursed by SKELL. Plaintiff suggested and MAGGIORE agreed oz~ behalf of SICELL that
the target market for the BUG-A-SALT p~oduct would be cl~ain retail stores with 140 or less
locations, This was based upon the limited aUility of Sl`~ELL to manufacture and supply
devices in order to satisfy orders based upon its capacity at that time.
2a,
At the August 2013 ASD show, Plaintiff met and cultivated a relationship with
the buyez~/representative for Cabella's and other large-scale retail chain and. franchise
t0
establishments, including Hallmark stares.
Il
21.
Through
Plaintiffs
continued
advertising, promotion, marketing
and
1z
engagemen# of public and media interest in the BUG-A-SAL'Y', and devotion of labor,
13
resources and effort, Plaintiffestablished distribution relationships with CabelIa's and
14
Hallmark stares pursuant to which bath agreed to buy units of the BUG-A-SALT product. In
15 ' Janua~y 20I~, PlarntifF received approval from Cabella's as a vendor of the BUG-A-SALT
16 ~ product.
1.7
In March 2Q 14, after discussions with MAGC.~IQRE and others at SI~ELL,
18
Plair~tzff' agreed to modify his role from distributor and value-added-reseller of the BUG-A-
19
SALT product to aflat-commission arrangement. pursuant to
20
agreed to accept and MAGGIORE and SKELL agreed to pay Plaintiff aflat-commission of
21
fifteen percent (15%) on the gross sales of all BUG-A-SAL,T products to any and all
z2
purchasers with whom Plaintif~'thereafter der+eloped a buyer relationship of the BUG-A-SALT
23
product for the benefit of SKELL.
24
23.
t11I5
arrangement, PIaintiff ~
Plaintiff attended fhe ASD trade show in March 2014 in the capacity of
25
representative for SKELL on the commission terms described in paragraph ~0, above.
26
Cabella's placed its initial order fa~~ the BUG-A-SALT pz~oduct by reason of Plaintiffs
27
development of the buyer relationship and SELL thereafter paid to Plaintiff a corrsmission
28
check in the sum of$1,700.00, representing his commission.
E~1
LSDPor+,~Tio~v
t,.aw coR
22.
Page 5 of 11
COMPLAlI`TT FOR DAMAGES,CONSTRUCTIVE TRUST AND ACCOUNTING
24.
Following the March 2014 ASD t~ade show, SELL requested and Plaintiff
agreed to revei-~ to his role as distributor and value-added-reseller of the BUG-A.-SALT
product.
25.
In reliance upon the agreement reache with MAGGIORE on behalf of SKELL,
Plaintiff continued to advertise, ma~lcet and promot the device, including management and
oversight of the product presence on Amazon.C~ , and on the retail market in general.
Plaintiff did so in reliance and with the expectation t at he would continue to receive a fifteen
percent (15%} commission on the sale of each and every BUG-A-SALT product sold by
reason of his efforts, except as to Cabella's saes
10
percent{17%} commission.
I1
26.
to which he would receive seventeen
Tn or about May 2014, Plaintiff was otified by SKELL that it was assuming
12
operation of the Amazan.Com web listing that he e~~eloped and maintained, as described
13
above pursuant to which Anzazon.Com fulfilled buyers' purchases. By reason of this action,
14
STCELL restricted Plaintiff to acting as a merchant s ller of the BUG-A-SAT.T product which
15
ree~uired him td individually fulfill buyer sales, whit substantially reduced the profitability of
16
the commission arrangement guaranteed to Plaintiff nder the tertrts of the agreement reached
17
with MAGGIORE and SKELL.
18
27.
In June 2014, Plaintiff entered into an agreement with Palmer Group pursuant to
19
which the BUG-A-SALT product would be offered far sale in 1,800 retail stores and
20
approximately three million catalogs. After discussions with MAGGIQRE and others at
21
SKELL of its ability to supply in order to meet the de and of such an account, Plaintiff signed
22
an agreement far 6,540 of the BCJ'G-A-SALT prod cts for sale during the Christmas 2014
23
retail season.
24
2$.
Through
Plaintiff's
continued
ad ertising, promotion, marketing
and
UG-A-SALT, and devotion of labor,
25
engagement of public and media interest in the
26
resources and effort, the BUG-A-SALT product ~e ched the position of the third highest
~~
selling product on the Amazon.Com site in or a out July 2014. In addition, Plaintiff
28
6 of11
LX~EN
COMPLAINT FOR DAMAGES,CONSTRUCT11VE TRUST ACID ACCOUNTING
developed additional interest in the retailer and resell~r community by cultivating interesE in
2
3
the product with National Tool/~~otula's and ACE and True Value.
29.
Contemporaneously with these events, MAGGIO~tE on behalf of SKELL asked
and Plaintiff agreed to pay a deposit of $50,000.00 ~gainst the purchase of one container of
7,080 units, anri Plaintiff made the deposit to SKELL and arranged far storage of the container
of said units of product as well. Xn reliance upon the dvance offunds, Plaintiff did commit to
sale of BUG-A-SALT products to various purchas rs. All tl~e while SICELL had retained
Plaintiff's $50,QOO.~fl deposit for its awn use and without delivering the product promised.
Without Plaintiffs authorization or consent, SKEL
through its agents and employees, did Ii
10
access Plaintiffs bank account and conducted. an
nauthorized deposit transaction of the
11
~SO,000.flO into Plaintiffs bank account at the financi l institution where his accounts are held.
12
30.
Yn or about August 2414, Plaintiff net with MAGGIORE and others at SKELL
13
and was notified that he was no longer authorized to sell the BUG-A-SALT product online.
14
Rather, Plaintiff was told that he could "repair" defe tine BUG-A-S~1L1' products and resell
15
them on the eBay web site.
16
]?
]8
31.
Plaintiff continued to perform his oblig bans under the agreement with SKELL
in order to avoid a breach of the agreement signed wit Palme~~ Group.

32.
In October 2014, Palmer Group and other buyers cultivated by Plaintiff began to
19
place orders for the BUG-A-SALT product. Northern Tool requested 5,000 units. SKELL
20
refused to honor its agreement to supply the BUG-A~SALT product to Plaintiff and advised
21
Plaintiff that he could have a lesser number of the p oducts. This breach of agreement with
22
Plaintiff by SKEL~, substantially interfered with P aintiff's cultivated relationships in the
23
community, because he was unable to deliver product ordered and promised as committed to
24
him by SKELL. Plaintiff was able to moderate the allaut from the breach of agreement ~o
25
supply with some buyers, but his relationships and reputation with them was significantly
26
damaged and impaired.
27
28
33.
On December 2, 2014, Plaintiff was n ified by SKELL that he would receive
no further BUG-A-SA.LT p~'oducts during the 2014 Season because the product would be sold
Page 7 of 11
LYD~~1
COMPLAINT FaR DAMAGES,CONSTRUCTI E TRUST AND ACCOUNTING

T
by SKELL itself in order to fulfill other orders, in breach and derogation of Plaintiff's
agreement with SKELL.
34.
In Januuy 2015, SKELT.'s attorney sent written notice to Plaintiff to cease and
desist all sales and distribution of the BUG-A-SALT product and denied any obligation to pay
compensation on sales to customers procured by Plaintiff in breach and derogarion of its
agreement.
FIRST CAUSE OF ACTION
BREACH OP CONTRACT
(Against Defendants, and Each of Them)
!4
35.
Plaintiff repeats, realleges, and incaiporates herein by reference each: and every
11
allegation contained in Paragraphs 1-34, inclusive ofthe Ailegations Common to All Causes of
12
Action as though fully seC forth herein.
13
36.
plaintiff is informed, believes and thereon alleges that Defendants, and each of
l4
them, sold units of the BUG-A-SALT product to customers with wham and which Plaintiff
15
had cultivated and established buyer relationships,
16
37,
In breach of the oral agreement of the parties as modified in March 2014, the
17
matet7al terms of v~~hich Plaintiff is informed are memorialized in writings between the parties,
1$
Defendants, and each of tk~em, did fail and refuse and continue to fail at~d refuse to pay to ~
19
Plainti#~ a sum equal to fifteen percent (1 S%) of the gross sales of BUG-A-SALT products to
2Q ~i the customers with wham and which Plaintiff had cultivated and established buyer
21
22
relationships.
3$.
Plaintiff fully performed all obligations imposed upon him according to the
23
terms of the oral agreement of the parties, except for those obligations performance of which
24
was excused by the breach of Defendants, and each of them.
25
39.
By reason ofthe breach of the parties' agreement, as herein alleged, Plaintiff has
26
suffered special damages in a sum equal to fifteen (15%) of the gross sales of alI BUG-A-
27
SAL3' pzoducts to customers with wham and which Plaintiff had cultivated and established f
?g
Page 8 of 1 I
LYI~EN
COMPLAINT FOR DA~VIAGES, CONSTRUCTIVE TRUST AND ACCOUNTING
buyer relationships, in sum according to proof at the ime of trial but in excess of the minimum
jurisdictional limits of this Count.
SECOND CAUSE OF~ ACTION
INTENTIONAL INTERFEREI~TCE WIT ECONOMIC RELATIONS
(Against Defendants and ach of Them)
6
7
40.
Plaintiff repeats, realleges, and incorp rate herein by reference each and every
allega~ian contained in Paragraphs 1-39 of the as iffu ly set forth at length herein.
4l.
Defendants, and each of them, were agivised by Plaintiff and Defendants knew
that Plaintiff had agreed to sell units of the BUG-A SALT product to customers with whom
10
and which Plaintiff had cultivated buyer relationships,
li
42.
Defendants, and each of them, irate ded to disrupt performance of these
12
agreements by failing to supply tlae units of the BUG A-SALT product committed by Flaintif~
~~
for sale to said customers with full knowledge that s id would prevent performance, deprive
14
plaintiff of the commission to which he was entitled,
15
business with said customers to the exclusion of Plain iff.
16
43.
d thereby allow them to conduct direct
Defendants, and each of them, did f '1 and refuse to provide Plaintiff with
~~
su~~cient units ofthe BUG-A-SALT pzoduct committ d by Plaintiff foi sale to said customers,
18
thereby resulting in breach of the agreements entered with said customers.
19
44.
Plaintiff is informed, believes and then on alleges that Defendants, and each of
~0
them, did therea~er engage in direct sales of the BUG-A-SALT product to the same customers
21
with wham Plaintiff had cultivated buyer relationships to the exclusion of Plaintiff and profited
22
therefrom.
23
45.
As a direct and proximate result of the ctions of Defendants, and each of them,
24
as alleged herein, Plaintiff has sustained special da~na es in an amount subject to proof at trial,
25
but in excess of the m.inirnum jurisdictional limits of 's Court.
26
/I///
27
/lll!
2g
~iiir
LYDE~T
~ ~f~I Prin nnfl ~Tlf1\t
Page 9 of 11
COMPLAINT FOR l~AMAGFS, C4NSTRUCTI E TRUST AND ACCOUNTING
.~
1
THI1tD CAUSE OF~ACTION
FOR IMPOSITION OF A C~N~TRUCTIVE TRUST
{Against Defendants and ~ach of Them}
4
5
6
~6.
Plaintiff repeats, realleges, and incorporates herein by reference each and every
allegation contained in Paragraphs 1-45, inclusive he~eof as though fully set forth herein.
47.
By virtue of the breach of contrast, wrongful and toi-tious conduct of
Defendants, and each of them, said Defendants ~vi~ongfully acquired assets a~~d monetary
benefits which were due to, awed to, and were the ~ightful property of the Plaintiffs herein.
Said assets and monetary benefits were transferred t~ other Defendants and third-parties the
1~
identities of which are not p~esently known to Plai `kiff. Plaintiff is informed, believes and
11
thereon alleges that said assets and monetary benefits'I were thereafter used by said defendants
1~
to acquire interests in personal and real property the t'~entities of w}~ich are also nat presently ~'
13
~Qwn to Plaintiffs.
14
48.
By virtue of Defendants' and each of their wrongful and tortious conduct as
1~
alleged herein, Defendants and each of them narr~ed herein hold said assets, monetary ~,
ld
proceeds, and interests in personal and rest prapet~y acquired therewith, as constructive
17
trustees for the benefit of ~'laintiff.
18
FOURTH C.A.~JSE OF~CTI~N
19
FOR ACCOUNTI~iG
20
(Against Defendants and Ea~h of Them)
21
22
23
49.
Plaintiff repeats, realleges, and incorpara~tes herein by reference each and every
allegation contained in Paragraphs 1-48, hereof, as thou h fully set Earth herein.
50.
Despite a demand from Plaintiff, Defend is and each of them have refused to,
24
and continue to refuse to account to Plaintiff for the gxact amount of sales of the BUG-A-
25
SALT product made by Defendants, and each of the f, to customers with whom and which
26
Plaintiff cultivated buyer relationships, and of the rngnetary benefits received by them by
27
reason ofthe wrongful and tortious conduct alleged here}n above.
28
LYDEl~
..............,~ .T,.,.~
Page 10 of 11
COMPLAINT FOR DAMAGES,CONSTRUCTIVE TRUST AND ACCOUNTING
i
S 1.
The amount of money due froth Defendants to Plaintiff foa commissions on such
sales is unknown and cannot be ascertained without Ian accounting of the sales of the BUG-A-
SALT product by Defendants, and each of them, to ustozners with whom and which Plaintiff
cultivated and established buyer relationships as alle ed herein above.
~~REFORE,Plaintiffs pray for judgmenttas follows:
AS TO THE FIRST AND SECOND CAUSES OF ACTION
I.
For compensato~~y damages acc rding to proof; and
2.
For pre'ud
J gmeat interest as allowed bY law.
AS TO THE THIRD CAUSE OF AC'I~ON
10
I.
For an order declaring that Defendants hold the commissions due to
lI
Plaintiff from sales of the BUG-A-SA~,T product t~ the customers as to which and whom
]2
Plaintiffs cultivated and established buyer relationsh~s, appropriated and retained by them in
13
deprivation the rights of Platntiff in trust for Plaintzff,
14
15
2.
For an accounting of all procee~s wrongfully deprived, appropriated and
~etained by them in deprivation of the rights of Plainti~f;
16
3.
17
AS Ta THE FOURTH CAUSE OF ACTION
18
1.
For an accounting to ~'laintiff by Defendants;
19
2.
For payment over to Plaintiff o~' the amount due from Defendants as a
20
For interest as allowed by law.
result ofthe account, and interest on that amount.
2i
A.S Tp ALL CAUSES OF ACTION;
22
1.
I'or costs of suit herein incurred; and
23
2.
For such other and Further relief ~s the Court may deem proper.
2~
DATED: September 30, 2016
LYDEN Lt~W CORPORATION
25
26
27
28
BY:
E
ttorneys for
D
Plainti ,JOHN HOLLENBERG, individually
and dai~g business as JLH ENTERPRISES.
llofl]
~.YrJEN
I.aW Cl1R PC1N A71QN
COMPLAINT FOR DAMAGES, CONSTRUCTIVE TRUST AND ACCOUNTING
Exhibit"B"

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~i3FERIDR COURT dJF TH~STATE'C]F`CA:tIFORNIA

F~OI~ THE COUNTY aF L05 ANGLES
CASE MlltilBEA
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z). Td bring to the h:earing~#die nri~inal Proaf of Service o~saidnotice to all of the-ptlie~~pa~iee~
served by you. .
ALL PARTIE9~iARk3.ORDERE'D `to. have trial c~~nsel; or a~attarney tho
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of the abaVo A9tiCe.tc1 the p1a3Atiff
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delivering-thy-copy.toth~rdesignated~~pYesentnt~y~I tney-sectneauEtft~~t~pf~ingafthg~original.complaint.
Iom not a party to We within action; andIcertify that F .persouaflq served a hue copy of the shove aoticc to the
plaintiff or his nttomey of record by delivering rho cagy in person tfus data to counsel far plQ.intiff ar piaintiif in pra
per.
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A COEtPORA'FION MAST BE
REPRE5EN'i'ED BY A LICENSED
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1 'i ~ Additionally, Defendants deny that Plaintiff is entitled to any relief from Defendants, whether
2
as alleged in the Complaint, or otherwise, or at all.

A FFIRMATIVE DEFENSES
3
4
Defendants have not completed their investigation of the facts of this case, have not
completed discovery in this matter, and have not completed their preparation far trial. The
affirmative defenses asserted herein are based on Defendants' knowledge, information or belief
at this time, and Defendants specifically reserve the right to modify, amend or supplement any
affirmative defense contained herein at any time. Without conceding that they bear the burden
of proof or persuasion as to any one of these, Defendants allege as follows:
10
FIRST AFFIRMATIVE DEFENSE
11
(Failure to State a Cause of Action)
12
1.
AS A FIRST AND SEPARATE AFFIRMATIVE DEFENSE to the Complaint,
13
and each cause of action thereof, Defendants are informed and believe and on that basis allege
14
that Plaintiff has failed to state facts sufficient to constitute a valid cause of action against
15
Defendants.
16 ',
SECOND AFFIRMATIVE DEFENSE
17
(Statute of Limitations)
18
2.
AS A SECOND AND SEPARATE AFFIRMATIVE DEFENSE to the Complaint,
19 ~ and each cause of action thereof, Defendants are informed and believe and on that basis allege
20
that each cause of action is barred by the applicable statute of limitation, including, but not
21
limited to Code ofCivil Procedure Sections 337, 338 and 339.
22
THIRD AFFIRMATIVE DEFENSE
23
(Lack of Damages)
24
3.
AS A THIRD AND SEPARATE AFFIRMATIVE DEFENSE to the Complaint,
25
and each cause of action thereof, Defendants are informed and believe and on that basis allege i
26
that the Plaintiff has not suffered damages for which he is entitled to recover. Specifically,
27
Defendants believe
28
measurable losses that give rise to damages in this action.
that Plaintiff neither incurred actual damages nor suffered any other
2
ANSWER TO COMPLAINT
2639563v.1
FOURTH AFFIRMATIVE DEFENSE
(Failure to Mitigate)
4.
AS A FOURTH AND SEPARATE AFFIRMATIVE DEFENSE to the
Complaint, and each cause of action thereof, Defendants are informed and believe and on that
basis allege that the Plaintiff failed to mitigate any damages he might have suffered.
FIFTH AFFIRMATIVE DEFENSE
(Waiver)
5.
AS A FIFTH AND SEPARATE AFFIRMATIVE DEFENSE to the Complaint,
10
that the Plaintiff has engaged in conduct and activities sufficient to constitute a waiver by
11
reason of which Plaintiff is estopped to assert any claim or cause of action against Defendants.
12
SIXTH AFFIRMATIVE DEFENSE
13
(Unclean Hands)
6.
14
AS A SIXTH AND SEPARATE AFFIRMATIVE DEFENSE to the Complaint,
15
16
that by virtue of Plaintiff's careless, negligent, or other wrongful conduct, Plaintiff should be
17
barred from recovering against Defendants by reason of the equitable doctrine of Unclean
18
Hands.
19
SEVENTH AFFIRMATIVE DEFENSE
20
(Estoppel)
21
7.
AS A SEVENTH AND SEPARATE AFFIRMATIVE DEFENSE to the
22
23
basis allege that Plaintiff, by his actions and conduct, is estopped from asserting the relief
24
sought in the Complaint.
i~'
25
EIGHTH AFFIRMATIVE DEFENSE
26
(Caches)
27
:
8.
AS AN EIGHTH AND SEPARATE AFFIRMATIVE DEFENSE to the
3
ANSWER TO COMPLAINT
2639563v. ]
basis allege that Plaintiff, by his actions and conduct, should be barred from recovering against
Defendants by reason of the equitable doctrine of Laches.
NINTH AFFIRMATIVE DEFENSE
(Consent)
9.
AS A NINTH AND SEPARATE AFFIRMATIVE DEFENSE to the Complaint,
6 I ~ and each cause of action thereof, Defendants are informed and believe and on that basis allege
7
that Plaintiff, by his actions and conduct, consented to the conduct alleged in the Complaint.
TENTH AFFIRMATIVE DEFENSE
(Causation)
10
11
12
10.
AS A TENTH AND SEPARATE AFFIRMATIVE DEFENSE to the Complaint,
~ and each cause of action thereof, Defendants are informed and believe and on that basis allege
that Plaintiff's injuries or damages, if any, were not caused by the conduct of Defendants.
13
ELEVENTH AFFIRMATIVE DEFENSE
14
(Punitive Damages)
15
1 1.
AS AN ELEVENTH AND SEPARATE AFFIRMATIVE DEFENSE to the
16
17
basis allege that, although Defendants deny they have committed or have responsibility for any
18
act that could support recovery of punitive damages in this lawsuit, to the extent any such act is
19
found, recovery of punitive damages against Defendants is unconstitutional under numerous
20
provisions of the United States Constitution, including the Excessive Fines Clause of the Eighth
21
Amendment and the Due Process Clause of the Fifth Amendment, as well as numerous
22
provisions of the California Constitution, including the Excessive Fines Clause of Section 17 of
23
Article I, the Due Process Clause of Section 7 of Article I, and the Self-Incrimination Clause of
24
Section 15 of Article I.
25
TWELFTH AFFIRMATIVE DEFENSE
26
(Privilege)
27
28
12.
AS A TWELFTH AND SEPARATE AFFIRMATIVE DEFENSE to the
4
ANSWER TO COMPLAINT
2639563x.1
basis allege that any recovery on Plaintiff's Complaint, or any purported cause of action
alleged therein, is barred in whole or in part because the actions of Defendants were privileged
and/or protected by applicable laws and the United States and California Constitutions,
including that Defendants acted in good faith to protect their economic interests.
THIRTEENTH AFFIRMATIVE DEFENSE
(After-Acquired Evidence)
13.
AS A THIRTEENTH AND SEPARATE AFFIRMATIVE DEFENSE to the
basis allege that any recovery on Plaintiff's Complaint, or any purported cause of action
10
alleged therein, is barred in whole or in part by the doctrine ofafter-acquired evidence.
11
FOURTEENTH AFFIRMATIVE DEFENSE
12
(Vicarious Liability)
13
14.
AS A FOURTEENTH AND SEPARATE AFFIRMATIVE DEFENSE to the
14
15
basis allege that Defendants cannot be held vicariously liable for the conduct alleged in the
16
Complaint, as Defendants were not aware of the alleged conduct, took prompt, remedial steps to
17
prevent such conduct from happening or continuing, or never adopted, ratified or condoned the
18
such conduct.
19
FIFTEENTH AFFIRMATIVE DEFENSE
20
(Apportionment)
21
15.
AS A FIFTEENTH AND SEPARATE AFFIRMATIVE DEFENSE to the
22 ~ Complaint, and each cause of action thereof, Defendants are informed and believe and on that
23
basis allege that the damages alleged by Plaintiff were either wholly or partially, either
24
negligently or intentionally, caused by or contributed to by persons, firms, corporations, or
25
entities other than Defendants, and Defendants are therefore entitled to apportionment among all
26
such parties according to their responsibility for such injuries and damages, if any, sustained by
27
the Plaintiff.
28
5
ANSWER TO COMPLAINT
2639563v.1
SIXTEENTH AFFIRMATIVE DEFENSE
(Federal Removal Jurisdiction)
16.
AS A SIXTEENTH AND SEPARATE AFFIRMATIVE DEFENSE to the
Complaint, and each cause of action thereof, Defendants allege that with the filing of the
accompanying compulsory Cross-Complaint that, under the federal claims in that Cross-
Complaint, jurisdiction of this action is in United States District Court, Central District of
California, Western District, that may be effectuated by the filing of a Notice of Removal.
8
9
10
11
DEMAND FOR TRIAL BY JURY

Defendants hereby request trial by jury of all issues so triable.
12
WILSON ELSER MOSKOWITZ EDELMAN &
DICKER LLP
13
14
15
16
17
18
19
By:
E. Pau Doug rt , Jr.
Craig C. Hunter
Jura Zibas
Attorneys for Defendants SKELL,INC., and
LORENZO MAGGIORE
20
21
22
23
24
25
26
27
28
J
ANSWER TO COMPLAINT
2639563x.1
PROOF OF SERVICE
>
1013a(3) CCP Revised 5/1/88

John Hollenberg, etc., et al. v. Skell, Inc, etc., et al.
Case No.: LC 104710
Attorneys for SKELL, INC. and LORENZO MAGGIORE.
WEMED File No. 17338.00001
3
4
5
STATE OF CALIFORNIA, COUNTY OF LOS ANGELES

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
I am employed in the County of Los Angeles, State of California. Iam over the age of
18 and not a party to the within action; my business address is 555 South Flower Street, Suite
2900, Los Angeles, California 90071.
On December 14, 2016,I caused the foregoing document described as
ANSWER TO COMPLAINT
to be served on the interested parties in this action as follows:
X
by placing X the true copy(ies) _the originals) thereof enclosed in sealed envelopes
addressed as follows:
Christine C. Lyden
A Professional Law Corporation
', Woodland Hills, CA 91367
' Telephone:
(818) 888-8866
Facsimile:
(818) 888-5988
Attorneys for Plaintiff

JOHN HOLLENBERG
X
by mail. Iam "readily familiar" with my firm's collection and processing
correspondence for mailing. Under that practice it would be deposited with U.S. postal service
on that same day with postage thereon fully prepaid at Los Angeles, California in the ordinary
course of business. I am aware that on motion of the party served, service is presumed invalid if
postal cancellation date or postage meter date is more than one day after date of deposit for
mailing in affidavit.
I declare under penalty of perjury under the laws of the State of California that the above
is true and correct, andI declare that I am employed in the office of a member of the bar of this
court at whose direction the service was made.
Executed on December 14, 2016, at Los Angeles, California.
25
~~
Hazel e Nunez
26
27
28
ANSWER TO COMPLAINT
2639563v.1
Exhibit"D"

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1
2
SKELL,INC., a California corporation, and

LORENZO MAGGIORE,an individual,
Date Action Filed: October 3, 2016

Trial Date:
3
Cross-Complainants,
4
5 ~~
6
JOHN HOLLENBERG,individually and

doing business as JLH ENTERPRISES,
7
Cross-Defendant.
8
9
10
Cross-Complainants, SKELL, INC., a California corporation ("SKELL") and

11
LORENZO MAGGIORE, an individual ("MAGGIORE") (jointly "Cross-Complainants"),
12
hereby allege the following counter claims against Cross-Defendant JOHN HOLLENBERG,
13
individually and doing business as JLH ENTERPRISES("HOLLENBERG").
14
THE PARTIES
15
1.
Cross-Complainant SKELL is a California corporation having its principal place
16
of business at 2401 Lincoln Boulevard in Santa Monica, California, located in the County of
17
Los Angeles.
18
2.
Cross-Complainant MAGGIORE is a resident of the County of Los Angeles,
19
California.
20
3.
Cross-Defendant HOLLENBERG is a resident of the County of Los Angeles,
21
California and doing business under the fictitious name JLH ENTERPRISES.
22
JURISDICTION AND VENUE
23
4.
The United States District Court for the Central District of California has original
24
subject matter jurisdiction over the claims in this action pursuant to 28 U.S.C. Section 1331
25
26
(federal question), 28 U.S.C. Section 1338 (patents and trademarks), and 15 U.S.C. Section
1 125 (false designation of origin).
27
28
2
CROSS-COMPLAINT
2636871 v.3
5.
The United States District Court for the Central District of California has
supplemental jurisdiction pursuant to 28 U.S.C. Section 1367 for the state law clams of
intentional interference with a contractual relationship, unfair business practices, and false
advertising, each of which arise out of a common nucleus of operative facts with those from
which the federal claims arise.
6.
The Western District of the United States District Court for the Central District
of California has personal jurisdiction over Cross-Defendant, HOLLENBERG, because Cross-
Defendant resides in the State of California, County of Los Angeles.
9
10
11
7.
Venue is proper in for the Central District of California pursuant to 28 U.S.C.
1391(b) and (c) and 28 U.S.C. Section 1400(b).

8.
Cross-Complainants bring this Cross-Complaint as a compulsory pleading in the
12
State of California, but by virtue of the foregoing jurisdiction allegations, reserve the right to
13
immediately remove this case to federal court, namely,the Western District of the United
14
States District Court.
15
SKELL'S DEVELOPMENT,MARKETING AND SALE
16
OF THE "BUG-A-SALT" G~JN
17
9.
SKELL is a start-up company that develops, markets and sells bug eradication
18 I
devices. MAGGIORE is the founder and CEO of SKELL. He invented and brought to market,
19 I
the "BUG-A-SALT," following almost two decades of development and investment. The
20
BUG-A-SALT is a gun designed to kill flies and other household pests on contact by shooting
21
table salt. It is one of SKELL's most popular products.
22
10.
SKELL worked to insure the success of this product by investing valuable time
23
and effort in financing, obtaining patents and trademarks, in developing the market, and then
24
by employing creative marketing to sell the BUG-A-SALT gun.
25
26
27
28
1 1.
In May 2012, SKELL posted an online video telling the story of the development
of the BUG-A-SALT gun which garnered significant market attention.

12.
In July 2012, SKELL launched the BUG-A-SALT gun for presale on a crowd-
funding website, IndieGogo.

3
CROSS-COMPLAINT
2636871v.3
13.
1
2
website, www.bu~asalt.com.
14.
3
4
Shortly after launch, SKELL began pre-selling the product through its own
In October 2012, MAGGIORE and the BUG-A-SALT were featured on the
front page of the Wall Street Journal.

15.
By the end of 2012, SKELL had raised over half a million dollars through
presale revenue for purposes of manufacturing and shipping more than 20,000 BUG-A-SALT
units.
8
9
10
11
16.
Chinese firm to begin manufacturing and shipping of the BUG-A-SALT units.

17.
From 2013 through 2014, the retailers to whom SKELL and its wholesalers sold
units included Cabela's, Amazon.com, Northern Tool, and Hallmark, aka Palmer Group.
HOLLENBERG'S SALE OF BUG-A-SALT UNITS
12
13
In or about 2012, SKELL entered into a manufacturing agreement with a
18.
In early 2013, once SKELL began manufacturing the BUG-A-SALT gun,
14
HOLLENBERG and other wholesalers, began buying the products from SKELL at discount,
15
and then reselling them at a markup to various customers.
16
17
18
19.
By late May 2013, HOLLENBERG had purchased for resale as many as 1,152
BUG-A-SALT units.
20.
In August 2013, HOLLENBERG described to SKELL employee, Taylor Plante,
19
his attendance at conferences, including the Las Vegas ASD consumer tradeshow, and the
20
various meetings he took to market the BUG-A-SALT gun. He advised that he was reselling
21
the product directly to various customers and to other middlemen who would buy from him
22
and then resell themselves on EBay or Amazon.
23
24
25
21.
By early 2014, HOLLENBERG began selling units more and more to
middlemen, rather than directly to the four principal retailers to whom SKELL sold directly.
22.
On January 22, 2014, on behalf of SKELL, Taylor Plante sent HOLLENBERG
26
its sales agreement with retailer Cabela's, advising that he would be the main contact with
27
Cabela's for sales of BUG-A-SALT units and for compliance issues.
28
4
CROSS-COMPLAINT
2636871 v.3
1
2
23.
In March 2014, HOLLENBERG sold BUG-A-SALT units to Cabela's, through
an intermediary, for which SKELL issued HOLLENBERG a check for $1,700 as
3 ~ ~ compensation.
4
24.
Shortly after receiving the check, SKELL advised HOLLENBERG, and
HOLLENBERG acknowledged, that he should continue in his role as a distributor or reseller
of the BUG-A-SALT gun, and that he was not to be paid as a commissioned salesperson.
7
8
9
10
11
25.
Beginning in about May 2014, SKELL began getting word of inferior,
counterfeit BUG-A-SALT units being sold on the market.

26.
On about May 15, 2014, HOLLENBERG himself notified SKELL that bootleg
units were showing up on Amazon.com.

27.
On about May 19, 2014, HOLLENBERG emailed MAGGIORE asking about
12
Chinese sellers that may have been making bootleg units and shipping them to the US at cheap
13
prices, complaining that this was a big problem for retail growth and his own pending sales.
14
15
16
SKELL'S RESTRICTION ON,AND TERMINATION OF.HOLLENBERG'S SALES

28.
On September 2, 2014 in email correspondence between HOLLENBERG and
SKELL,the SKELL representative advised HOLLENBERG that:
17 I
a.
SKELL was assuming all responsibilities for the Cabela's account,
18
however, lie would be the only contact for the that account for orders he placed until
19
fulfillment of the last order;

b.
20
SKELL would honor his wholesale price of $17 per unit for the next
21
3,000 Lulits he purchased, but that there would be no guarantee the stock will be available or
22
when it would be made available;

c.
23
24
units with gears/parts for him to repair and sell on eBay at a price of $12 per unit;
25
26
d.
After September 14, 2014, he would not be allowed to list any
riew/unused BUG-A-SALT merchandise on any third party sites, including Amazon and eBay;
e.
27
28
SKELL would allow him to sell refurbished units by sending him broken
After September 15, 2014 he was no longer allowed to sell "refurbished
or proper" units on Amazon;

5
CROSS-COMPLAINT
2636871 v.3
mid-September;
g.
4
5
6
7
8
9
10
SKELL would refund him his payment for his "big order," because the
inventory promised was not available.

29.
In January 2015, SKELL's counsel wrote HOLLENBERG demanding that he
cease and desist all further sales and distributions of any SKELL products.
30.
At or about the same time, SKELL began suspecting that HOLLENBERG may
have been involved in the sale of counterfeit units.

31.
On August 21, 2015, SKELL purchased BUG-A-SALT units on Amazon.com in
order to document HOLLENBERG's unauthorized sale of counterfeit units.

HOLLENBERG'S SALE OF COUNTERFEIT SUG-A-SALT UNITS
11
12
He would be allowed to purchase an additional 1,000 units available in
32.
SKELL alleges on information and belief that in about early 2014,
13
HOLLENBERG began making, marketing and selling counterfeit BUG-A-SALT products (the
14
"Counterfeit BUG-A-SALT"), by colluding with the same Chinese factory that produced
15
SKELL's products.
16
33.
The Counterfeit BUG-A-SALT utilized a design substantially the same as
17
SKELL'S BUG-A-SALT (the "True BUG-A-SALT"). HOLLENBERG sold the Counterfeit
18
BUG-A-SALT units online and through direct sales, in violation of SKELL's patents and
19
trademark.
20
34.
HOLLENBERG copied SKELL's design and usurped the name for SKELL's
21
product in an intentional effort to trade on SKELL's goodwill and to deceive consumers into
22
believing that the Counterfeit BUG-A-SALT was actually a True BUG-A-SALT, designed and
23
manufactured by SKELL. The counterfeits that HOLLENBERG sold used lesser quality
24
materials and failed to perform to the same level or offer the same longevity as a True BUG-A-
25
SALT. To add insult to injury, HOLLENBERG made his counterfeit sales at prices lower than ~
26
SKELL's and with longer warranties.
27
28
35.
SKELL alleges on information and belief that HOLLENBERG wrongfully and
intentionally misled wholesale customers into believing that he was an authorized seller of the
6
CROSS-COMPLAINT
1 2636871v3
1 '~ True BUG-A-SALT, in order to convince these customers to purchase exclusively from him.
2
HOLLENBERG then provided the wholesale customers with the inferior Counterfeit BUG-A-
SALT products.
36.
In about early May 2014, SKELL began suspecting that HOLLENBERG may
have been involved in the Counterfeit BUG-A-SALT units that began appearing on the
Amazon and eBay websites, among others. As that suspicion grew, SKELL began limiting
HOLLENBERG's sales of its product until in January 2015, it barred him from all further
sales.
37.
Notwithstanding this bar, SKELL confirmed that as of about August 21, 2015,
10
HOLLENBERG was continuing to sell the counterfeit products in violation of SKELL's
11
patents and trademarks. It did so by ordering one of these counterfeits that HOLLENBERG
12
was advertising for sale on Amazon.com.
13
38.
The counterfeit product that SKELL received was contained in packaging similar
14
to the packaging provided by SKELL on the True BUG-A-SALT, except that the packaging
15
(i) did not contain SKELL's company information including its name, website address, social
16
media information, its "Pinch bug" logo or a bar code, (ii) contained a product number not
17
used by SKELL, and (iii) was labeled "Bug-A-Salt Original Salt Gun New," a designation not
18
used by SKELL. On the other hand, the depiction of the Counterfeit BUG-A-SALT gun was
19
identical to depictions of the True BUG-A-SALT found on True BUG-A-SALT packaging.
20
There were numerous other differences in the packaging, packaging instructions, the
21
attachment of the gun to the box and the gun itself between the counterfeit and the original.
22
23
24
39.
On about August 22, 2015, MAGGIORE emailed HOLLENBERG asking him
to remove his Amazon listing.

40.
Despite posting notices on its company website to alert consumers about the
25
counterfeit products being sold by HOLLENBERG, SKELL was ultimately forced to
26
discontinue the True BUG-A-SALT and develop and launch a successor product, the" BUG-A-
27
SALT 2.0."
28
7
CROSS-COMPLAINT
2636871v3
41.
SKELL has suffered and continues to suffer significant harm as a result of
HOLLENBERG's sale of inferior, look-a-like counterfeit products, through damage to its
reputation and brand, and substantial loss of revenue.
MAGGIORE AND SKELL'S PATENTS
U.S. Patent No. 8,251,051 B2

42.
On August 8, 2012, the United States Patent and Trademark Office duly and
lawfully issued United States Patent No. 8,251,051 B2 ("the `051 patent"), entitled "Bug
Killing Gun." A true and correct copy of the `051 patent is attached hereto as EXHIBIT D.
43.
The `051 patent names MAGGIORE as the inventor.
10
44.
SKELL is the exclusive licensee of the `051 patent.
11
45.
The patent generally refers to a novel bug killing gun using a compressed gas
12
release mechanism.
13
14
46.
The SKELL products generally covered by this patent include, but are not
limited to, the BUG-A-SALT and the BUG-A-SALT 2.0.

U.S. Patent No. D676,923 S
15
47.
16 'I
On February 25, 2013, the United States Patent and Trademark Office duly and
17
lawfully issued United States Design Patent No. D676,923 S ("the `923 patent"), entitled
18
"Bug-A-Salt Gun." A true and correct copy of the `923 patent is attached hereto as EXHIBIT
19
E.
20
48.
The `923 patent names MAGGIORE as the inventor.
21
49.
SKELL is the exclusive licensee of the `923 patent.
22
50.
The patent refers to the ornamental design for the BUG-A-SALT gun.
SKELL'S TRADEMARKS
23
24
51.
As a result of SKELL's innovation and success in the field of insect eradication,
25
SKELL has established enormous goodwill throughout the United States in connection with its
26
trademarks for the BUG-A-SALT gun.
27
52.
SKELL owns the following U.S. Trademarks associated with the BUG-A-SALT:
28
s
CROSS-COMPLAINT
2636871 v.3
Serial No.
77888530
85593200
85756716
85762649
85762655
85762662
85762668
86050154
2
3
4
5
6
7
53.
8
9
10
13
14
15
16
17
SKELL has not authorized HOLLENBERG to utilize the BUG-A-SALT Marks.
55.
HOLLENBERG's prominent use of SKELL's marks on its Counterfeit BUG-A-
SALT gun tricks consumers into believing that the Counterfeit BUG-A-SALT is a product of
SKELL, when in fact the Counterfeit BUG-A-SALT is not. HOLLENBERG was aware of
SKELL's trademarks before he began selling the Counterfeit BUG-A-SALT.
24
25
Yet,
HOLLENBERG intentionally and willfully continues to use the BUG-A-SALT Marks on

counterfeit editions of the BUG-A-SALT gun, and in the packaging and instructions for the
gun in commerce in order to deceive consumers and trade off of SKELL's goodwill.
FIRST CAUSE OF ACTION
DIRECT INFRINGEMENT OF `051 PATENT
20
23
By virtue of its registration for the BUG-A-SALT marks above ("the BUG-A-
54.
19
22
Mark
BUG-A-SALT
A KILLER COMPANY
FIRE YOUR FLY SWATTER
THE ORIGINAL SALT GUN
MR. PINCH
[MR.PINCH IMAGE]
BUG-A-SALT
PITY THE FLY
right to use the BUG-A-SALT Marks in commerce in the United States.
18
21
Date
12/8/09
4/10/12
10/17/12
10/24/12
10/24/12
10/24/12
10/24/12
8/28/13
SALT Marks"), and as a result of its exclusive use over many years, SKELL has the exclusive
11
12
Registration No.
4202717
4351333
4350005
4423289
4353776
4353778
4353779
4612446
(35 U.S.C. 271)

56.
SKELL incorporates by reference all preceding paragraphs as though fully set
forth herein.
57.
SKELL has not authorized HOLLENBERG to make or sell any products that
utilize the `051 patent nor has SKELL given HOLLENBERG a license to any SKELL patents.
58.
The `051 patent remains valid, enforceable and unexpired.
26 '~
27
28
9
CROSS-COMPLAINT
2636871 v.3
59.
HOLLENBERG has infringed and continues to infringe the `051 patent,
including without limitation, by making, offering for sale and selling the Counterfeit BUG-A-
SALT product using substantially the same mechanical structure set forth in the `051 patent.
4
5
60.
SKELL's BUG-A-SALT and BUG-A-SALT 2.0 products fall within the scope
of one or more claims of the `051 patent. HOLLENBERG infringes at least one claim of the
6 ~ `051 patent.
7
61.
HOLLENBERG has actual or constructive knowledge of the `051 patent.
62.
HOLLENBERG knew of the `051 patent, has ignored and/or disregarded that his
9
l0
11
12
13
actions constituted infringement of a valid and enforceable patent, and acted despite an
objectively high likelihood that his actions constituted infringement of a valid patent.
63.
Upon information and belief, HOLLENBERG's infringement has been and
continues to be willful and deliberate.

64.
As a result of HOLLENBERG's infringement, SKELL has suffered substantial
14
damages and will suffer sever and irreparable harm as a result of HOLLENBERG's continuing
15
infringement, unless that infringement is enjoined by this Court. The threatened injury to
16
SKELL outweighs any harm the injunction may cause to HOLLENBERG. Injunctive relief
17
would not disserve the public interest under these circumstances.
18
SECOND CAUSE OF ACTION
19
DIRECT INFRINGEMENT OF `923 PATENT
20
(35 U.S.C. 271)
21
22
23
24
65.
forth herein.
66.
SKELL has not authorized HOLLENBERG to make or sell any products that
utilize the `923 patent nor has SKELL given HOLLENBERG a license to any SKELL patents.
25
67.
The `923 patent remains valid, enforceable and unexpired.
26
68.
HOLLENBERG has infringed and continues to infringe the `923 patent,
27
including without limitation, by making, offering for sale and selling the Counterfeit BUG-A-
28
io
CROSS-COMPLAINT
2636871 v.3
SALT, the design of which is substantially the same as the ornamental design of the `923
2 ~ ~ patent.
3
69.
HOLLENBERG has actual or constructive knowledge of the `923 patent.
70.
HOLLENBERG knew of the `923 patent, has ignored and/or disregarded that his
actions constituted infringement of a valid and enforceable patent, and acted despite an
objectively high likelihood that his actions constituted infringement of a valid patent.
7
8
9
71.
HOLLENBERG's actions constitute infringement of the `923 patent in violation
of 35 U.S.C. Section 271.

72.
Upon information and belief, HOLLENBERG's infringement has been and
10 I continues to be willful and deliberate.

11
73.
12
damages and will suffer sever and irreparable harm as a result of HOLLENBERG's continuing
13
infringement, unless that infringement is enjoined by this Court. The threatened injury to
14
SKELL outweighs any harm the injunction may cause to HOLLENBERG. Injunctive relief
15
would not disserve the public interest under these circumstances.
16
74.
SKELL is entitled to a complete accounting of HOLLENBERG's profits derived
17
from the sale of the Counterfeit BUG-A-SALT, and SKELL is entitled to recover
18
HOLLENBERG's total profits from these sales pursuant to 35 U.S.C. Section 289.
19
75.
HOLLENBERG willfully and deliberately infringed the `923 patent.
This
20
willful and deliberate infringement justifies an increase of three times the damages to be
21
assessed pursuant to 35 U.S.C. Section 284 and further qualifies this as an exceptional case
22
supporting an award ofreasonable attorneys fees pursuant to 35 U.S.C. Section 285.
23
THIRD CAUSE OF ACTION
24
TRADEMARK INFRINGEMENT
25
(15 U.S.C. 1114)
26
27
76.
SKELL incorporates by reference all preceding paragraphs as though fully set ~
forth herein.
28
~~
CROSS-COMPLAINT
2636871 v.3
1
2
3
77.
SKELL has continuously used its federally registered BUG-A-SALT Marks in
commerce in connection with advertising and sales of the True BUG-A-SALT gun.
78.
HOLLENBERG had actual and constructive knowledge of SKELL's ownership
of and rights in its federally registered BUG-A-SALT Marks prior to HOLLENBERG's
infringing use ofthe marks.
79.
HOLLENBERG adopted and continued to use in commerce SKELL's federally
registered BUG-A-SALT Marks, with full knowledge of SKELL's superior rights, and with
full knowledge that his infringing use of SKELL's marks was intended to cause confusion,
mistake and/or deception.
10
11
12
80.
HOLLENBERG offers the Counterfeit BUG-A-SALT under the infringing
marks in the same channels of trade in which SKELL's true BUG-A-SALT is offered.
81.
HOLLENBERG's infringing use of SKELL's BUG-A-SALT Marks in
13
connection with the advertising and sale of the Counterfeit BUG-A-SALT has caused, and is
14
likely to continue to cause, confusion, mistake, or deception as to the affiliation, connection or
15
association of the products with SKELL,in violation of 15 U.S.C. Section 1114.
16
82.
HOLLENBERG's
actions
constitute
knowing, deliberate, and
willful
17
infringement of SKELL's federally registered marks. The knowing and intentional nature of
18
the acts set forth herein renders this an exceptional case under 15 U.S.C. Section 1117(a).
19
83.
20
damages in the form of lost profits, as well as the continuing loss of the goodwill and
21
reputation established by SKELL in its federally registered marks. This continuing loss of
22
profits and goodwill cannot be adequately calculated and thus constitutes irreparable harm and
23
injury for which SKELL has no adequate remedy at law. SKELL will continue to suffer
24
irreparable harm unless this Court enjoins HOLLENBERG's conduct.
25
26
27
28
t2
CROSS-COMPLAINT
2636871 v.3
FOURTH CAUSE OF ACTION
FEDERAL UNFAIR COMPETITION AND
FALSE DESIGNATION OF ORIGIN
(15 U.S.C. 1125)
5
6
7
84.
forth herein.
85.
HOLLENBERG has deliberately and willfully attempted to trade on SKELL's
hard-earned goodwill in its marks and the reputation established by SKELL in connection with
the True BUG-A-SALT gun, as well as in order to confuse consumers as to the origin and
10
sponsorship of HOLLENBERG's goods and to pass off his products and services in commerce
11
as those of SKELL.
12
86.
HOLLENBERG's unauthorized and tortious conduct has also deprived and will
13
continue to deprive SKELL of the ability to control the consumer perception of its products
14
offered under SKELL's marks, placing the valuable reputation and goodwill of SKELL in the
15
hands of HOLLENBERG.
16
87.
HOLLENBERG's conduct is likely to cause confusion, mistake or deception as
17
to the affiliation, connection or association of HOLLENBERG's product with SKELL and as
18
to the origin, sponsorship or approval of HOLLENBERG's products, in violation of Section 43
19
of the Lanham Act, 15 U.S.C. Section 1125(a)(1).
20
88.
HOLLENBERG had direct and full knowledge of SKELL's prior use of and
21
rights in the BUG-A-SALT Marks before the acts complained of herein. The knowing,
22
intentional and willful nature of the acts set forth herein renders this an exceptional case under
23
15 U.S.C. Section 1117(a).
24
89.
As a result of HOLLENBERG's conduct, SKELL has suffered commercial
25
damage as well as the continuing loss of goodwill and reputation established by SKELL in its
26
True BUG-A-SALT product. The continuing loss of goodwill cannot be properly calculated
27
and thus constitutes irreparable harm and injuxy for which SKELL has no adequate remedy at ~
28
13
CROSS-COMPLAINT
2636871 v.3
SKELL will continue to suffer irreparable harm unless the Court enjoins
law
HOLLENBERG's conduct.
FIFTH CAUSE OF ACTION
UNFAIR BUSINESS PRACTICES
(Cal. Bus. &Prof. Code 17200)
6
7
8
9
10
90.
forth herein.
91.
HOLLENBERG, operating individually and as JLH ENTERPRISES, is engaged
in the business of selling consumer goods, including insect eradication devices.

92.
HOLLENBERG's conduct in offering for sale and selling the Counterfeit BUG-
11
A-SALT guns constitutes an unlawful, unfair and fraudulent business act or practice within the
12
meaning of Section 17200 of the Business &Professions Code. Among other things, that
13
conduct is (i) unlawful under 35 U.S.C. Section 271 and 15 U.S.C. Section 1114 as
14
infringements of SKELL and Maggiore's patents and trademarks, (ii) fraudulent under 15
15
U.S.C. Section 1125 as misleading advertising likely to cause confusion, mistake or deception
16
as to the affiliation of HOLLENBERG's products with those of SKELL, and is an unfair
17
business practice because infringing SKELL's patents and trademarks offends public policy, is
18
unethical and is unscrupulous.
19
20
21
93.
SKELL has suffered financial and reputational damage as a result of
HOLLENBERG's unfair business practices.

94.
As a result of HOLLENBERG's unfair business practices, SKELL has suffered
22
financial damage in the form of lost profits as well as the continuing loss of profits, and the
23
goodwill and reputation established by SKELL in its True BUG-A-SALT product. The
24
continuing loss of profits and goodwill cannot be properly calculated and thus constitutes
25
irreparable harm and injury for which SKELL has no adequate remedy at law. SKELL will
26
continue to suffer irreparable harm unless the Court enjoins HOLLENBERG's conduct.
27
28
14
CROSS-COMPLAINT
2636871 v.3
SIXTH CAUSE OF ACTION
FALSE ADVERTISING
(Cal. Bus &Prof. Code 17500)
95.
forth herein.
5
6
96.
HOLLENBERG's use of the name "BUG-A-SALT" in advertising the
Counterfeit BUG-A-SALT guns for sale were untrue and misleading in that they are
reasonably likely to cause a consumer to believe that the Counterfeit BUG-A-SALT is actually
a True BUG-A-SALT gun manufactured by SKELL, in violation of Business &Professions

Code Section 17500.
10
11
97.
HOLLENBERG knew, or by the exercise of reasonable care should have known,
12 ', that the use of SKELL's BUG-A-SALT Marks was misleading and was likely to cause
13
consumers to believe that the Counterfeit BUG-A-SALT was actually a True BUG-A-SALT.
14
The advertising and sale of the Counterfeit BUG-A-SALT is not in any way endorsed or
15
authorized by SKELL.
16
98.
SKELL has suffered substantial damages as a result of HOLLENBERG's
I
HOLLENBERG's misrepresentations have caused and will
17
misleading advertisements.
18
continue to cause SKELL to lose sales of its True BUG-A-SALT gun to both existing and
19
future customers. SKELL will suffer severe and irreparable harm unless the misleading
20
advertisements are enjoined by this Court.
21
SEVENTH CAUSE OF ACTION
22
INTENTIONAL INTERFERENCE
23
WITH CONTRACTUAL RELATIONSHIP
24
25
99.
forth herein.
26
100. At all relevant times, HOLLENBERG knew of the existence of contracts
27
between SKELL and retailers Cabela's, Amazon.com, Northern Tool, and Hallmark, aka
28
Palmer Group, among others.

15
CROSS-COMPLAINT
2636871v3
101. SKELL alleges on information and belief that HOLLENBERG knew that
2
SKELL's ongoing sales under its contracts with these retailers would be harmed by his sale of
counterfeit editions of the BUG-A-SALT gun.
102. SKELL is informed and believes that in an effort to interfere with SKELL's
rights under these agreements, HOLLENBERG marketed and sold counterfeit editions of the
BUG-A-SALT gun.
103. SKELL is informed and believes that HOLLENBERG engaged in the conduct,
alleged herein, with the intent to harm SKELL and to financially induce the ultimate
purchasers buying aBUG-A-SALT gun through the online retailers, to purchase the counterfeit
10
in edition of the gun, rather than the True BUG-A-SALT gun.
11
104. As a direct and proximate result of HOLLENBERG's conduct, alleged herein,
12
Cross-Complainants were damaged in an amount to be proven at trial. When Cross-
13
Complainants have ascertained the full amount of its damages, it will seek leave of court to
14
amend this Cross-Complaint accordingly.

105. The conduct of HOLLENBERG, as alleged herein, was purposeful and
15
16 ',
intentional was engaged in for the purpose of depriving Cross-Complainants property and legal
17
rights or otherwise causing injury, and was despicable conduct that subjected Plaintiffs to
18
economic hardships during the startup phase of their company, and was performed with fraud,
19
oppression and malice so as to justify an award of exemplary or punitive damages against
20
HOLLENBERG,in an amount to be proven at trial.
21
22
PRAYER FOR RELIEF

WHEREFORE, Cross-Complainants, SKELL and MAGGIORE, pray for the following
23
24
relief:
25
A.
A order adjudging HOLLENBERG to have infringed the Ò51 and `923 patents;
26
B.
A permanent injunction enjoining HOLLENBERG, or the officers, directors,
27
agents or employees of JLH ENTERPRISES,from:
28
CROSS-COMPLAINT
2636871 v.3
a.
Making, importing, using, selling, and offering to sell infringing products
practicing the `051 patent and from otherwise infringing, contributing to
the infringement of or actively inducing infringement of the Ò51 patent;
and
b.
Making, importing, using, selling, and offering to sell infringing
products practicing the `923 patent and from otherwise infringing,
contributing to the infringement of or actively inducing infringement of
the `923 patent; and
c.
Using the name "BUG-A-SALT" or any confusingly similar name on any
10
products or goods offered for sale or sold in commerce in the United
11
States;
12
d.
Holding out in any manner whatsoever that SKELL's products or
13
services, such as the BUG-A-SALT, are in any way sponsored, approved,
14
sourced, certified, affiliated, connected or associated with SKELL or
15
SKELL's products or services;
16
C.
A judgment that HOLLENBERG deliver to SKELL for destruction all
17
counterfeit products, sales literature, customer literature or other trade pieces used in the
18
infringement of the `051 patent, the `923 patent or SKELL's trademark;
19 I
D.
A judgment that HOLLENBERG make an accounting to SKELL and disgorge to
20
SKELL all profits and revenue earned from selling or offering to sell the Counterfeit BUG-A-
21
SALT products and actual damages to SKELL in an amount not less than a reasonable royalty
22
for HOLLENBERG's infringement;
23
24
25
E.
A judgment that HOLLENBERG pay to SKELL treble damages in accordance
with 35 U.S.C. Section 284 for HOLLENBERG's willful and deliberate infringement;
F.
A judgment for compensatory and punitive damages for intentional interference ~
26 ~ with SKELL's contracts;

27
28
G.
An award of costs of this action together with SKELL's reasonable attorneys'
fees in accordance with 35 U.S.C. Section 285 and 15 U.S.C. Section 1117;
~~
CROSS-COMPLAINT
2636871 v.3
H.
An award to SKELL for such other relief as the Court deems just and proper.
2
DEMAND FOR TRIAL BY JURY
3
4
5
Cross-Complainants, SKELL and MAGGIORE hereby request trial by jury of all issues
so triable.
6
WILSON ELSER MOSKOWITZ EDELMAN
& DICKER LLP
7
8
9
10
By:
erty, Jr.
E. Pau D
Craig .Hunter
Jura Zibas
Attorneys for Defendants and CrossComplainants SKELL,INC., and LORENZO
MAGGIORE
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
~g
CROSS-COMPLAINT
2636871 v.3
PROOF OF SERVICE
1013a(3) CCP Revised 5/1/88
John Hollenberg, etc., et al. v. Skell, Inc, etc., et al., Case No.: LC104710
Attorneys for SKELL,INC. and LORENZO MAGGIORE.
WEMED File No. 17338.00001
2
3
4
STATE OF CALIFORNIA, COUNTY OF LOS ANGELES

5
6
7
8
9
10
11
12
I am employed in the County of Los Angeles, State of California. I am over the age of
18 and not a party to the within action; my business address is 555 South Flower Street, Suite
2900, Los Angeles, California 90071.
On December 14, 2016,I caused the foregoing document described as
CROSS-COMPLAINT FOR:(1)DIRECT INFRINGEMENT OF `051 PATENT(35
U.S.C. 271);(2)DIRECT INFRINGEMENT OF `923 PATENT(35 U.S.C. 271);(3)
TRADEMARK INFRINGEMENT(15 U.S.C. 1114);(4)FEDERAL UNFAIR
COMPETITION AND FALSE DESIGNATION OF ORIGIN (15 U.S.C. 1125);(5)
UNFAIR BUSINESS PRACTICES (Cal. Bus. &Prof. Code 17200);(6)FALSE
ADVERTISING (Cal. Bus &Prof. Code 17500);(7)INTENTIONAL INTERFERENCE
WITH CONTRACTUAL RELATIONSHIP
13
to be served on the interested parties in this action as follows:
14
X
by placing X the true copy(ies)
addressed as follows:
the originals) thereof enclosed in sealed envelopes
15
16
17
18
19
20
21
22
Christine C. Lyden
A Professional Law Corporation
Woodland Hills, CA 91367
Telephone: (818) 888-8866
(818) 888-5988
Facsimile:
Attorneys for Plaintiff

JOHN HOLLENBERG
X
by mail. I am "readily familiar" with my firm's collection and processing
correspondence for mailing. Under that practice it would be deposited with U.S. postal service
on that same day with postage thereon fully prepaid at Los Angeles, California in the ordinary
course of business. I am aware that on motion ofthe party served, service is presumed invalid if
postal cancellation date or postage meter date is more than one day after date of deposit for
mailing in affidavit.
23
24
25
26
I declare under penalty of perjury under the laws of the State of California that the above
is true and correct, and I declare that I am employed in the office of a member of the bar of this
court at whose direction the service was made.
Executed on December 14, 2016, at Los Angeles, California.
~1~~ - ~
2~
Hazel e Nunez
28
19
CROSS-COMPLAINT
2636871v3
Exhibit"E"
~o ~zo xe~. os!io

REPORT ON THE
FILING OR DETERMINATION OF AN
ACTION REGARDING A PATENT OR
TRADEMARK
vigil Stop 8
Director of the U.S. Patent and Trademark Office
T~
P.O. Bos 1450

Alexandria, VA 22313-1450
In Complilnce ~i ith 35 U.S.L. 290 and/or 15 U.S.C. l 1 1( you are Hereby advised that a court action has Ueen
on the followine
Central District of California, Western Division
tiled in the U.S. District Court

Trademarks- or
[Patents. (the patent action involves 35 U.S.C. 292.):

U.S. DISTRICT COURT
DATE FILED
DOCKET NO.

DEFENDANT
PLAINTIFF
Skell, Inc., Calfiornia corporation, and Lorenzo Maggiore
John Hollenberg, dba JLH Enterprises
NATENT OR
TRAL>EMARK NO.
DATE OF PATENT
OR T}tADEMARK
HOLDER OF PA~CENT OR TRADEMARK
1 8,251,051 B2
8/8/2012
Lorenzo Maggiore
D676,923 S
2/25/2013
Lorenzo Maggiore
3
4
5
In die above
entitled case, the following patent(s)/ trademarks) have bezn included:
INCLUDED BY
DATE INCLUDED
Amendment
PATENTOR
TIU1DEb1ARK NO.
Answer
DATE OF PATENT
OR TRADEMARK
Cross Bill
Other Pleaduig
HOLDER OF PATENT OK TRADEMARK
3
4
5
vi the aboveentitled case, die following decision has begin rendered or judeeinent issued:
DE- CISION'JUDGEIv1ENT
CLERK
(BY)DEPUTY CLERK
DATE
Copy 1Upon initiation of action, mail this copy to Director Copy 3Upon termination of Hction, mail this cope to Director
Copy 2Upon filing document adding patent(s), mail this copy to Director Cop}'4Case file copy
Exhibit"F"
AU 120 Rev. 08/lU
REPORT ON THE
TRADEMARK
Mail Stop 8
Director of the U.S. Patent and Trademark Oftice
P.O. Box 1450
TO:
In Compliance with 35 U.S.C. 290 and/or 15 U.S.C. 1 1 16 you are hereby advised that a court action has been
on the following
filed in the iJ.s. District Court
~ Trademarks or
Patents. ( the patent action involves 35 U.S.C. 292.):

U.S. DISTRICT COURT
DEFENDANT
DATE FILED
DOCKET NO.
PLAINTIFF
Skell, Inc., a California corporation, and Lorenzo

Maggiore
PATENT OR
TRADEMARK NO.
DATE OF PATENT
OR '1'RAllEMARK
HOLDER OF PATENT OR TRADEMARK
1 4202717
12/8/2009
Skell, Inc.
2 4351333
4/10/2012
Skell, Inc.
3 4350005
10/17/2012
Skell, Inc.
4 4423289
10/24/2012
Skell, Inc.,
5 3242776
10/24/2012
Skell, Inc.
In the aboveentitled case, the following patent(s)/ trademarks) have been included:
DATE INCLUDED
PATENT OR
TRADEMARK NO.
INCLUDED E3Y
Amendment
DATE OF PATENT
OR TRADEMARK
Answer
Cross Bill
Other Pleading
1
2
3
4
5
In the above~ntitled case, the following decision has been rendered or judgement issued:
DECISION/JUDGEMENT
CLERK
(BY)DEPUTY CLERK
DATE
Upon termination of action, mail this copy to Director

Copy 1 Upon initiation of action, mail this copy to Director Copy
Copy 2Upon filing document adding patent(s), mail this copy to Director Copy
Case the copy
Exhibit"G"
AU 120 Kev. OS/10
REPORT ON THE
TRADEMARK
Mail Stop 8
Director of the U.S. Patent and Trademark Oftice
P.O. Box 1450
TO:
In Compliance with 35 U.S.C. 290 and/or 15 U.S.C. 1116 you are hereby advised that a court action has been
fied in the U.S. District Coun

[~ Trademarks or
DOCKET NO.
on the fouowing
Patents. (the patent action involves 35 U.S.C. 292.):

U.S. DISTRICT COURT
DATE FILED

PLAINTIFF
DEFENDANT
PATENT OR
TRADEMARK NO.
Skell, Inc., a California corporation, and Lorenzo

Maggiore
DATE OF PATENT
OR'1~RADEMARK
1 4353778
10/24/2012
Skell, Inc.
2 4353779
10/24/2012
Skell, Inc.
3 4612446
8/28/2013
Skell, Inc.
4
5
In the above~ntitled case, the following patent(s)/ trademarks) have been included:
DATE INCLUDED
INCLUDED BY
Amendment
PATENT OR
TRADEMARK N0.
Answer
DATE OF PATENT
OR TRADEMARK
Cross Bill
Other Pleading
1
2
3
4
5
In the above~ntitled case, the following decision has been rendered orjudgement issued:
CLERK
(BY)DEPUTY CLERK
DATE
Copy 1 Upon initiation of action, mail this copy to Director Copy 3Upon termination of action, mail this copy to Director
Copy 2Upon filing document adding patent(s), mail this copy to Director Copy 4Case file copy

Hollenberg v. Skell - Complaint

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Case 2:16-cv-09269-FMO-SK Document 1 Filed 12/15/16 Page 1 of 64 Page ID #:1

E. Paul Dougherty, Jr., Esq.(State Bar No. 182138)

Attorneys for Defendants and Cross-Complainants,

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

NOTICE OF REMOVAL OF ACTION

Case 2:16-cv-09269-FMO-SK Document 1 Filed 12/15/16 Page 2 of 64 Page ID #:2

CENTRAL DISTRICT OF CALIFORNIA:

PLEASE TAKE NOTICE that Defendants and Cross-Complainants

a California corporation (hereinafter "Cross-Complainants")

Court for the Central District of California (Western Division) pursuant to 28

14 U.S.C. Sections 1331 and 1441.

Removal ofthis action is proper for the following reasons:

JURISDICTION EXISTS UNDER 28 U.S.C. SECTION 1331

basis of federal question jurisdiction pursuant to 28 U.S.C. Section 1331, insofar

under 35 U.S.C. Section 271, trademark infringement, under 15 U.S.C. Section

and Cross-Complainants may remove the action pursuant to 28 U.S.C.

Case 2:16-cv-09269-FMO-SK Document 1 Filed 12/15/16 Page 3 of 64 Page ID #:3

which such action or proceeding is based.

.." [Emphasis added.] Cross-

response to the Complaint that Plaintiff served on Cross-Complainants on

6 November 16, 2016, Cross-Complainants filed an Answer to the Complaint and a

Section 426.30(a). In the Cross-Complaint, Cross-Complainants allege federal

designation of origin as alleged in Section I, above. Moreover, both the Answer

action under federal question jurisdiction.

Cross-Complainants have met the requirements of 28 U.S.C. Section

have sued no "Does" as cross-defendants, who would otherwise have been

ignored for purposes of determining removal.

STATE COURT FILE

Cross-Complainants attach hereto, as exhibits, true and correct copies of all

defendants in that action, pursuant to 28 U.S.C. Section 1446(a), as follows:

Summons and Complaint

Notice of Case Management Conference

Case 2:16-cv-09269-FMO-SK Document 1 Filed 12/15/16 Page 4 of 64 Page ID #:4

Summons and Cross-Complaint

REQUIRED NOTICES TO U.S.P.T.O.

Form AO-120 -patents

Form AO-120 -trademarks

Form AO-120 trademarks(continued)

DEMAND FOR JURY TRIAL

WHEREFORE, Cross-Complainants pray that this action be removed from

WILSON ELSER MOSKOWITZ EDELMAN

DATED: December 15, 2016

Case 2:16-cv-09269-FMO-SK Document 1 Filed 12/15/16 Page 5 of 64 Page ID #:5

Case 2:16-cv-09269-FMO-SK Document 1 Filed 12/15/16 Page 6 of 64 Page ID #:6

FOR COURT USf ONLY

e name an a rasa o e cou I5:

CASE NUMB fi:

The name, address, and telephone number of plaintiffs attorn

or plaintiff without n at#omey, fs:

~rs summons, use rroor o

[-_ ~ CGP 446.6U (minor)

Fam Adople0 for Mandatory Ua~

Cods of Civif Procedire 412,20, 465

Case 2:16-cv-09269-FMO-SK Document 1 Filed 12/15/16 Page 7 of 64 Page ID #:7

PROCESS SERVICE RE~tUEST FORM

FIRM NAtv1E (REQt11RED)

ABC Ct1ENT ii (REQUIRED)

Lyden Law Corporation

6320 Canoga Avenue, Suite 1400

Hollenberg v_ Skell, inc., et of .

Last Day for

Fiie OrI {naf Pron(w/Court

O CALL WHEN COMPLETED