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CMC/rt 1 LANAK & HANNA, P.C. ;T::J

14148 400 North Tustin Avenue, Suite 120

;-~> Liza L r i /
2 Santa Ana, CA 92705-3815 ^| T r.9^ A L I R ) RNIA
11/12/07 Tel: 714/550-0418 Fax: 714/550-7603 '•J-RIVfcRSIDF

3
By: CHRISTOPHER M. CULLEN, Bar No. 211166 H; 05 2007
4 cmcullen@lanak-hanna.com

5 Attorneys for Defendants

(jfh
KENNETH M. PETERS, JR. AND ALAN R. SPITALNICK
6
7 SUPERIOR COURT FOR THE STATE OF CALIFORNIA

8 COUNTY OF RIVERSIDE, RIVERSIDE BRANCH

9
10 SOUTHERN CALIFORNIA DISTRICT CASE NO. RIC 482762
COUNCIL OF THE ASSEMBLIES OF GOD, a
11 California Non-Profit Religious Corporation; and
NEW HOPE FAMILY WORSHIP CENTER, a VERIFIED FIRST AMENDED CROSS
12 California Non-Profit Religious Corporation COMPLAINT OF KENNETH M.
PETERS, JR. AND ALAN R.
13 Plaintiffs, SPITALNICK FOR:

14 1. DECLARATORY RELIEF;
KENNETH M. PETERS, JR.; ALAN R. 2. ACTION TO QUIET TITLE;
15 SPITALNICK; ALL PERSONS UNKNOWN, 3. TRESPASS TO LAND;
CLAIMING ANY LEGAL OR EQUITABLE 4. CONVERSION
16 RIGHT, TITLE, ESTATE, LIEN, OR
INTEREST IN THE PROPERTY DESCRIBED
17 IN THE COMPLAINT ADVERSE TO
PLAINTIFFS' TITLE, OR ANY CLOUD ON
18 PLAINTIFFS' TITLE THERETO; and DOES 1
to 500, inclusive,
19 Defendants.
20
KENNETH M. PETERS, JR.; and
21 ALAN R. SPITALNICK,

22 Cross-Complainants,
23
THE SOUTHERN CALIFORNIA DISTRICT
24 COUNCIL OF THE ASSEMBLIES OF GOD, a
California non-profit corporation; and
25 ROES 1 through 50, inclusive,

26 Cross-Defendants.

27

28
Lanak & Hanna, P . C .
400 N. Tustin Ave
Suite 120
Santa Ana, CA
cf)7Ciz>- T O T ;
CMC/rt
14148
11/12/07
1 GENERAL ALLEGATIONS

2 1. New Hope Family Worship Center ("New Hope") is and, at all times relevant hereto,

3 was an authorized California non-profit corporation authorized to do business in the state of

4 California.

5 2. Cross-Complainants Kenneth M. Peters, Jr. and Alan R. Spitalnick are individuals

6 residing in the County of Riverside, State of California, and members of the Board of Directors of

7 New Hope.

8 3. Cross-Complainants are informed and believe and thereon allege that at all times

9 herein mentioned, Cross-Defendants, and each of them, were residents and/or doing business

10 within the County of Riverside, State of California, and further, that the activities complained of

11 and/or obligations sued upon herein arose within this judicial district, and that Cross-Defendants,

12 and each of them, are indebted to Cross-Complainants on the obligation sued on herein.

13 4. Cross-Complainants are informed and believe and thereon allege that at all times

14 herein mentioned, Cross-Defendant, The Southern California District Council of the Assemblies

15 of God ("AOG"), is a non profit corporation with its principal location at 17951 Cowan, Irvine,

16 located in the County of Orange and State of California.

17 5. Cross-Complainants are ignorant of the true names and capacities of Cross-

18 Defendants sued herein as Roes 1 through 50, inclusive, and therefore sue these Cross-

19 Defendants by such fictitious names. Cross-Complainants will amend this Complaint to allege

20 their true names and capacities when ascertained. Cross-Complainants are informed and believe,

21 and thereon allege, that each of the fictitiously named Cross-Defendants is indebted to Cross-

22 Complainants as hereinafter alleged, and that Cross-Complainants' rights against such fictitiously

23 named Cross-Defendants arises from such indebtedness.

24 6. Cross-Complainants are informed and believe and on that basis allege that, at all

25 times mentioned in this cross-complaint, one or more Cross-Defendants were the agents and

26 employees of one or more of their co-Cross-Defendants and, in doing the things alleged in this

27 cross-complaint, were acting within the course and scope of that agency and employment.

28 ///

Lanak & Hanna, P . C .

400 N. Tustin Ave
Suite 120 -2-
Santa Ana, CA
92705-3815
714/550-0418 FIRST AMENDED CROSS-COMPLAINT
CMC/rt
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1 7. At all relevant times leading up to August 15, 2007, New Hope conducted its

2 religious services and related activities at a certain real property (the "Property") located at 803

3 South Lincoln Ave., Corona, California 92882, legally described as:

4 Parcel 3, as shown on Record of Survey on file in Book 42 page 15, of

Records of Survey, Records of Riverside County California. Except the
5 portion granted to the City of Corona pursuant to a deed recorded April
1,1965 as instrument # 37481 of Official Records of Riverside County,
6 California.

7 8. New Hope has held, and continues to hold, title to the Property in fee simple by

8 virtue of a grant deed recorded on or about November 4, 1997 as Instrument # 402488 of the

9 Official Records of Riverside County.

10 9. At all relevant times hereto, Cross-Complainant Kenneth M. Peters, Jr. ("Pastor

11 Peters") has continuously served and continues to serve as pastor at New Hope.

12 10. At all relevant times hereto, Pastor Peters held and continues to hold the title of the

13 chief executive officer of the New Hope, and president of the board of directors, and Cross-

14 Complainant Alan Spitalnick held and continues to hold the office of Treasurer of New Hope, and

15 serves as a member of the board of directors.

16 11. On August 9, 2007 Pastor Peters renounced his AOG ministerial credential.

17 12. On or around August 9, 2007 the New Hope board of directors voted to disaffiliate

18 from AOG and continue operating as an independent church.

19 13. Since its inception New Hope has been, and continues to act as, an independent and

20 sovereign church unbeholden to AOG or any other association of churches.

21 14. On or about August 15, 2007 Cross-Defendants, AOG, and Roes 1 through 50,

22 inclusive, attended a New Hope board meeting, forcefully removed Pastor Peters from the premises,

23 wrongfully attempted to oust Pastor Peters from his position as pastor, wrongfully attempted to

24 replace New Hope's existing board members, including Mr. Spitalnick.

25 15. From August 15, 2007 to the present time, Cross-Defendants, AOG, and Roes 1

26 through 50, inclusive, changed the locks to the Property, wrongfully maintained complete and

27 exclusive possession of the church, and have been wrongfully accessing Cross-Complainants' assets

28 including, but not limited to, funds in Cross-Complainants' bank accounts.

Lanak & H a n n a , P . C .
400 N. Tustin Ave
Suite 120
Santa Ana, CA
-3-
92705-3815
714/550-0418 FIRST AMENDED CROSS-COMPLAINT
 ^
CMC/Ft
14148
11/12/07
1 FIRST CAUSE OF ACTION

2 DECLARATORY RELIEF

3 (As against Cross-Defendants AOG, and Roes 1 through 50, inclusive)

4 16. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

5 complaint as though they are fully set forth herein.

6 17. An actual controversy has arisen and now exists between Cross-Complainants, as

7 the duly elected and acting board of directors of New Hope, and Cross-Defendants AOG, and Roes

8 1 through 50, inclusive, concerning their respective rights and duties in that Cross-Defendants,

9 AOG, and Roes 1 through 50, inclusive, and New Hope both claim right to the funds in New

10 Hope's bank account and to possession ofthe Property, whereas each disputes Cross-Complainants'

11 contention and alleges they are both individually entitled to the entirety of the funds in the Bank

12 Accounts and possession to the Property. Additionally, Cross-Complainants Pastor Peters and Alan

13 Spitalnick, as Board Members of New Hope, find their authority to act in such capacity has been

14 challenged by false and misleading representations and claims by Cross-Defendants, AOG, and

15 Roes 1 through 50, inclusive.

16 18. Cross-Complainants desire a judicial determination of its rights and duties, and a

17 declaration as to ownership of New Hope's assets, including but not limited to the funds in the New

18 Hope's Bank Accounts and possession of the Property. Further, Cross-Complainants requests a

19 declaration as to how the said assets should be released to the respective parties, to the extent such

20 assets are held in trust or otherwise, by third parties. Finally, Cross-Complainants request a

21 declaration as to the officers as directors of the board of New Hope.

22 19. Such a judicial determination is necessary and appropriate in order for Cross-

23 Complainants to recover its assets including, but not limited to, the funds located in various bank

24 and investment accounts and possession of the Property.

25 ///

26 ///

27 ///

28 ///
Lanalc & H a n n a , P - C.
400 N. Tustin Ave
Suite 120 -4-
Santa Ana, CA
92705-3815
714/550-0418 FIRST AMENDED CROSS-COMPLAINT
 ^
CMC/rt
14148
11/12/07
1 SECOND CAUSE OF ACTION

2 ACTION TO QUIET TITLE

3 (As against Cross-Defendants AOG, and Roes 1 through 50, inclusive)

4 20. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

5 complaint as though they are fully set forth herein.

6 21. Cross-Complainants, as the duly elected and acting board of directors of New Hope,

7 has, at all relevant times, maintained valid title to the Property in fee simple. Since November 4,

8 1997, New Hope has been the record title holder of the Property in fee simple by virtue of a grant

9 deed recorded that date as Instrument # 402488 of the Official Records of Riverside County.

10 22. Cross-Complainants are informed and believe and on that basis allege that one or

11 more Cross-Defendants claim an interest adverse to Cross-Complainants' title to the Property.

12 These claims are without any right and Cross-Defendants have no right, title, stake, lien, or interest

13 in the Property.

14 23. Cross-Defendants, AOG, and Roes 1 through 50, inclusive, asserted an adverse claim

15 over the Property and all of Cross-Complainants' assets when they Physically removed Pastor

16 Peters, Alan Spitalnick and the existing board members of New Hope from the Property against

17 their will and wrongfully took possession of the Property by changing the locks on all of the doors.

18 24. As a result, New Hope seeks a determination of its fee simple title in this action as

19 of the date that this complaint is filed.

20 THIRD CAUSE OF ACTION

21 TRESPASS TO LAND

22 (As against Cross-Defendants AOG, and Roes 1 through 50, inclusive)

23 25. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

24 complaint as though they are fully set forth herein.

25 26. Cross-Complainants, as the duly elected and acting board of directors of New Hope,

26 have retained title to the Property in fee simple at all times relevant hereto and, has maintained and

27 continues to maintain, the sole and exclusive property rights to the Property.

28 ///

Lanak & Hanna, P. C.

400 N. Tustin Ave
Suite 120 -5-
Santa Ana, CA
92705-3815
714/550-0418 FIRST AMENDED CROSS-COMPLAINT
CMC/rt n
14148
11/12/07
1 27. On August 15, 2007, Cross-Defendants, AOG, and Roes 1 through 50, inclusive,

2 unlawfully interfered with Cross-Complainants' possession of the Property. On the said date,

3 Cross-Defendants, AOG, and Roes 1 through 50, inclusive, physically removed the Cross-

4 Complainants for the Property, changed all of the locks on the said Property, and denied and

5 continues to deny the Cross-Complainants access to the Property.

6 28. Cross-Defendants, AOG, andRoes 1 through 50, inclusive, intentionally trespassed

7 onto Cross-Complainants' property when they wrongfully and forcefully took possession of the

8 Property on August 15, 2007 and are continuing to trespass on the property.

9 FOURTH CAUSE OF ACTION

10 CONVERSION (Count I)

11 (As against Cross-Defendants AOG, and Roes 1 through 50, inclusive)

12 29. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

13 complaint as though they are fully set forth herein.

14 30. Cross-Complainants, as the duly elected and acting board of directors of New Hope

15 held a the right of possession to the Property at the time of conversion, because they had been

16 continuously in possession of the Property at all relevant times leading up to August 15, 2007. In

17 addition, Cross-Complainants held deed to the Property in fee simple at all relevant times hereto.

18 31. Cross-Defendants, AOG, and Roes 1 through 50, inclusive, intentionally and

19 wrongfully assumed control over the Property when they intruded on a New Hope board meeting,

20 physically removed Pastor Peter from the Property, changed the locks on the Property, and

21 prevented the Cross-Complainants from accessing the said Property.

22 32. Cross-Complainants, as the duly elected and acting board of directors of New Hope

23 have been damaged in the amount of the market value of the property valued at the time of the

24 conversion on August 15, 2007 plus the value of the business lost as a result of the conversion.

25 CONVERSION (Count II)

26 (As against Cross-Defendants AOG, and Roes 1 through 50, inclusive)

27 33. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

28 complaint as though they are fully set forth herein.

Lanak & Hanna, P . C .
400 N. Tustin Ave
Suite 120 -6-
Santa Ana, CA
92705-3815
714/550-0418 FIRST AMENDED CROSS-COMPLAINT
CMC/rt
14148
11/12/07
1 34. Cross-Complainants, as the duly elected and acting board of directors of New Hope,

2 had the right to possession of all of the funds in the disputed bank accounts, because the accounts

3 were opened by Cross-Complainants and Cross-Complainants and its agents maintained sole and

4 exclusive control over the funds in the bank accounts prior to and until they were converted by

5 Cross-Defendants, AOG, and Roes 1 through 50, inclusive.

6 35. Cross-Defendants, AOG, and Roes 1 through 50, inclusive, wrongfully seized Cross-

7 Complainants' bank accounts by fraudulently representing to the bank that Pastor Peters was no

8 longer the pastor for Cross-Complainants and that Cross-Defendants, AOG, and Roes 1 through 50,

9 inclusive, had rightfully assumed control of Cross-Complainants, by changing the names of the

10 individuals that were entitled to access the accounts, and using the said funds within the Cross-

11 Complainants' accounts.

12 36. Cross-Complainants seeks damages in the value of funds contained within the

13 wrongfully converted bank accounts.

14 WHEREFORE, Cross-Complainants prays:

15 1. A declaration of rights regarding the New Hope's assets;

16 2. A judgment quieting New Hope's fee simple title to the real Property and that Cross-

17 Defendants have no right, title, or interest in or to the real Property;

18 3. A declaration of the Board of Directors and officers of New Hope in their capacities

19 as the true Board of Directors of New Hope;

20 4. That all monies in question be awarded to Cross-Complainants;

21 5. For attorney's fees and costs incurred; and

22 6. All other relief the court deems proper.

23

24

25
DATED: December 2 2007 LANAK & HANNA, P.C.

26 By:
CHRISTOPHER M. CULLEN
27 Attorneys for Cross-Defendants
KENNETH M. PETERS, JR.; and
28 ALAN R. SPITALNICK
Lanak & Hanna, P.C.
400 N. Tustin Ave
Suite 120
Santa Ana, CA
-7
92705-3815
714/550-0418 FIRST AMENDED CROSS-COMPLAINT
 Fax:714-550-7259 Nov 13 2007s 10:31 P. 09
LANAK & HANNA P. C.

1 VERIFICATION

.2 I, KENNETH M. PETERS, JR., am a Cross-Complainant in the above-entitled action. I have

3 read the foregoing complaint and know its contents. The same is true ofmy own knowledge, except

4 as to those matters that are alleged in the complaint on information and belief, and as to those

5 matters, I believe them to be true.

6 I declare under the penalty of perjury under the laws of the State of California that the
1
7 foregoing is true and correct. Executed on A w ^ ^ / • ? , QQorf . in Corona, California.

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VERIFICATION
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I, ALAN R. SPITALNICK, am a Cross-Complainant in the above-entitled action. I have read
13
the foregoing complaint and know its contents. The same is true of my own knowledge; except as
14
to those matters that are alleged in the complaint on information and belief, and as to those matters,
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I believe them to be true.
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I declare under the penalty of perjury under the laws, of the State of California that the
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foregoing is true and correct. Executed on • . j in Corona, California.
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By:
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buiak « Jtsau, P.c.
4D0 V, Tufitin *vn
Suite 120 8
3*rtta Ana» CA
93705-3515
7U/SB0-D41* FIRST AMENDED CROSS-COMPLAINT
 CMC/rt
14148

c 11/02/07
1 VERIFICATION

2 I, KENNETH M. PETERS, JR., am a Cross-Complainant in the above-entitled action. I have

3 read the foregoing complaint and know its contents. The same is true of my own knowledge, except

4 as to those matters that are alleged in the complaint on information and belief, and as to those

5 matters, I believe them to be true.

6 I declare under the penalty of perjury under the laws of the State of California that the

7 foregoing is true and correct. Executed on , in Corona, California.

8
9
10 By:

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VERIFICATION
12
I, ALAN R. SPITALNICK, am a Cross-Complainant in the above-entitled action. I have read
13
the foregoing complaint and know its contents. The same is true of my own knowledge, except as
14
to those matters that are alleged in the complaint on information and belief, and as to those matters,
15
I believe them to be true.
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I declare under the penalty of perjury under the laws of the State of California that the
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foregoing is true and correct. Executed on *&,— J2i]/ X4lT), in Corona, California.
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Lanak fi flanna, P.C.
400 U. Tustin Ave
Suite 120
Santa Ana, CA
92705-3B15
714/550-0418 FIRST AMENDED CROSS-COMPLAINT
 C
PROOF OF SERVICE
STATE OF CALIFORNIA )
^ ss
COUNTY OF ORANGE )
I am employed in the County of Orange, State of California. I am over the age of 18 years and not
a party to this action. My business address is 400 North Tustin Avenue, Suite 120, Santa Ana,
California 92705-3815.

6 On December 3 , 2007, I served the foregoing document described as VERIFIED FIRST

AMENDED CROSS-COMPLAINT OF KENNETH M. PETERS, JR. AND ALAN R.
7 SPITALNICK FOR: 1. DECLARATORY RELIEF; 2. ACTION TO QUIET TITLE;
3.TRESPASS TO LAND; 4. CONVERSION on the persons listed below as follows:
8
Julian B. Bellenghi Attorneys for Plaintiffs and Cross-
9 Collins & Bellenghi LLP Defendant
1201 Dove Street, Suite 570
10 Newport Beach CA 92660
11
X (By U.S. Mail) I enclosed the document(s) listed above in a sealed envelope or package
12 addressed to the persons listed above and placed the envelope for collection and mailing,
following ordinary business practices of Lanak & Hanna, P.C. I am readily familiar with the
13 firm's practice for collecting and processing correspondence for mailing. On the same day
that correspondence is placed for collection and mailing, it is deposited in the ordinary course
14 of business with the United States Postal Service, in a sealed envelope with postage fully
prepaid.
15
_ (By Express/Overnight Mail Service) I enclosed the documents in an envelope or package
16 provided by an overnight delivery carrier and addressed to the persons listed above. I placed
the envelope or package for collection and overnight delivery at an office or a regularly
17 utilized drop box of the overnight delivery carrier.

18 _ (By Facsimile Transmission) Based on an agreement of the parties to accept service by fax
transmission, I faxed the documents to the persons at the fax numbers listed above. No error
19 was reported by the fax machine I used. A copy of the record of the fax transmission, which
I printed out, is attached.
20
I declare under penalty of perjury under the laws of the State of California that the above is true and
21 correct, and that this Proof of Service was executed on December J ? , 2007, at Santa Ana,
California.
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23 KJUJJOUJ
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R. TRETHEWAY
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Lanak & Hanna, F. C.
400 N. Tustin Ave
Suite 120
SanCa Ana, CA
92705-3815
714/550-0418