Lawida v Magento Notice of Renewal

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JEFFREY KOHN O’MELVENY & MYERS LLP Times Square Tower 7 Times Square  New York, NY 10036 Telephone: (212) 326-2000 Facsimile: (212) 326-2061 ADAM KARR (pro hac vice admission pending) O’MELVENY & MYERS LLP 610 Newport Center Drive, 17th Floor  Newport Beach, CA 92660-6429 Telephone: (949) 760-9600 Facsimile: (949) 823-6994 JUSTIN WALKER (pro hac vice admission pending) O’MELVENY & MYERS LLP 2765 Sand Hill Road Menlo Park, CA 94025 Telephone: (650) 473-2600 Facsimile: (650) 473-2601 Attorneys for Defendants Magento, Inc., Varien, Inc., eBay, Inc., and PayPal, Inc. UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY Arthur Lawida and Saas Accelerator, LLC, Plaintiffs, v. Magento, Inc., Varien, Inc., eBay, Inc., PayPal, Inc., John Does 1-10 and ABC Corps 1-10 Defendants. Case Number: NOTICE OF REMOVAL Case 2:33-av-00001 Document 12765 Filed 09/12/11 Page 1 of 19 PageID: 218405 Case 2:11-cv-05224-WJM -MF Document 1 Filed 09/12/11 Page 1 of 19 PageID: 1

Transcript of Lawida v Magento Notice of Renewal

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JEFFREY KOHNO’MELVENY & MYERS LLPTimes Square Tower 7 Times Square New York, NY 10036

Telephone: (212) 326-2000Facsimile: (212) 326-2061

ADAM KARR (pro hac vice admission pending)O’MELVENY & MYERS LLP610 Newport Center Drive, 17th Floor  Newport Beach, CA 92660-6429Telephone: (949) 760-9600Facsimile: (949) 823-6994

JUSTIN WALKER (pro hac vice admission pending)

O’MELVENY & MYERS LLP2765 Sand Hill RoadMenlo Park, CA 94025Telephone: (650) 473-2600Facsimile: (650) 473-2601

Attorneys for DefendantsMagento, Inc., Varien, Inc., eBay, Inc., and PayPal,Inc.

UNITED STATES DISTRICT COURTDISTRICT OF NEW JERSEY

Arthur Lawida and Saas Accelerator, LLC,

Plaintiffs,

v.

Magento, Inc., Varien, Inc., eBay, Inc., PayPal,Inc., John Does 1-10 and ABC Corps 1-10

Defendants.

Case Number:

NOTICE OF REMOVAL

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TO THE CLERK OF THE ABOVE-ENTITLED COURT:

PLEASE TAKE NOTICE THAT, pursuant to 28 U.S.C. §§ 1332 and 1446,

Defendants Magento, Inc. (“Magento”), PayPal, Inc. (“PayPal”), and eBay, Inc. (“eBay”)

(collectively “Defendants”), hereby remove this civil action from the Superior Court of New

Jersey, Bergen County to the United States District Court for the District of New Jersey.

Removal is proper because this Court has original diversity-of-citizenship jurisdiction under 

28 U.S. C. § 1332, as the amount in controversy exceeds the sum or value of $75,000 and there is

complete diversity of citizenship between the Plaintiffs and all properly-named defendants.

Complete diversity exists because Defendants are citizens of California and Delaware and

Plaintiffs are citizens of New Jersey. Additionally, although the amount in controversy cannot

 be determined at this time, Plaintiffs allegations that they are entitled to one percent of equity

means the value of the dispute exceeds $75,000. This Notice of Removal is timely because it has

 been filed within thirty days of the Defendants being served with the summons and complaint.

See 28 U.S.C. § 1446(b); Murphy Bros. v. Michetti Pipe Stringing, Inc., 526 U.S. 344 (1999).

This Court, therefore, has original jurisdiction based upon diversity of citizenship. 28 U.S.C. §

1332.

DESCRIPTION OF ACTION AND PROCEDURAL BACKGROUND

1.  This action was filed, on or about July 29, 2011, in the Superior Court of New

Jersey, Bergen County, and assigned Docket No. L-6576-11. A true and correct copy of the

Summons and Complaint is attached hereto as Exhibit A.

2.  This matter is a civil action wherein Plaintiffs Arthur Lawida and Saas

Accelerator, LLC (“Plaintiffs”) assert the following five causes of action: (i) breach of contract;

(ii) breach of the duties of good faith and fair dealing; (iii) unjust enrichment; (iv) negligent

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infliction of economic loss; and (v) promissory estoppel.

3.  Plaintiffs delivered a copy of the Summons and Complaint in this matter to

Defendants on August 12, 2011, via FedEx delivery. (Declaration of Keren Aminia In Support

of Defendants’ Notice of Removal (“Aminia Decl.”) ¶ 3.) This does not constitute proper 

service under Rule 4:4-3(a) of the New Jersey Court Rules, which requires personal service or 

service by registered or certified mail if personal service is not possible after a reasonable good

faith effort to make personal service. Defendants have not yet filed an answer or other 

responsive pleading.

4. 

 No other pleadings or orders have been served on Defendants.

Timeliness of Removal

5.  Removal of this case is timely pursuant to 28 U.S.C. § 1446(b). Defendants filed

this Notice of Removal within thirty days of the Defendants being served with the summons and

complaint.

Jurisdiction: Diversity of Citizenship

6.  This Court has original jurisdiction over this action based on diversity of 

citizenship. 28 U.S.C. § 1332.

7.  Here, diversity of citizenship exists between Plaintiffs and Defendants as

follows:

a.  Plaintiff Arthur Lawida (“Lawida”) is a citizen of and domiciled in the

state of New Jersey. (Complaint at ¶¶ 1, 4; Aminia Decl. ¶ 4.) For the purposes of diversity

 jurisdiction, Lawida is a citizen of New Jersey.

 b.  Plaintiff SaaS Accelerator, LLC (“SaaS”) is a limited liability company

organized and existing under the laws of the State of Arizona with Lawida and Meredith Lawida

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as its sole members. (Aminia Decl. ¶ 5.) SaaS’s members are either domiciled in New Jersey or 

Arizona.  Id. For purposes of diversity jurisdiction, SaaS is citizen of New Jersey and/or 

Arizona.  Zambelli Fireworks Mfg. Co. v. Wood , 592 F.3d 412, 420 (3d Cir. 2010) (“[T]he

citizenship of an LLC is determined by the citizenship of its members.”).

c.  Magento is a is a wholly-owned subsidiary of eBay incorporated in the

State of Delaware with its headquarters and principal place of business at 10441 Jefferson Blvd,

Suite 200, Culver City, CA 90232. (Complaint at ¶ 2; Aminia Decl. ¶ 6.) For purposes of 

diversity jurisdiction, Magento is a citizen of Delaware and California.  Hertz, 130 S. Ct. 1192-

93.

d.  Defendant Varien, Inc. refers to a fictitious name for Magento. (Aminia

Decl. ¶ 7.)

e.  eBay is incorporated in the State of Delaware with its headquarters and

 principal place of business at 2145 Hamilton Avenue, San Jose, California 95125. (Complaint at

 ¶ 2; Aminia Decl. ¶ 8.) For purposes of diversity jurisdiction, eBay is a citizen of Delaware and

California.  Hertz, 130 S. Ct. 1192-93.

f.  PayPal is a wholly-owned subsidiary of eBay incorporated in the State of 

Delaware with its headquarters and principal place of business at 2145 Hamilton Avenue, San

Jose, California 95125. (Complaint at ¶ 2; Aminia Decl. ¶ 9.) For purposes of diversity

 jurisdiction, PayPal is a citizen of Delaware and California. See Hertz Corp., 130 S. Ct. at 1192-

93.

Jurisdiction: Amount in Controversy

8.  In addition to diversity of citizenship, the amount in controversy exceeds the sum

or value of $75,000, exclusive of interest or costs. 28 U.S.C. §1332(a). Plaintiffs have requested

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“damages, together with interest, late fees, costs, attorney’s [sic] fees and such other and further 

relief as the Court may deem just and proper” for each claim asserted in connection with

Plaintiffs’ allegation that they are entitled to a “1% equity stake in the Company.” (Complaint at

 ¶ 5.) The value of one percent of the equity of Magento on March 31, 2010, was greater than

$75,000. (Aminia Decl. ¶ 10.) The value of Magento equity has not decreased since March 31,

2010.  Id. Thus, the amount in controversy requirement for subject-matter jurisdiction is

satisfied. 28 U.S.C. §1332(a).

Joinder of Co-Defendants in Removal

9. 

All Defendants have joined in this Notice of Removal.

Venue

10.  Filing the notice of removal is proper in this district because the Superior Court of 

 New Jersey, Bergen County is located within the Federal District of New Jersey. Therefore,

venue for this Notice is proper pursuant to 28 U.S.C. § 110 because this is the “district and

division embracing the place where such action is pending.” 28 U.S.C. § 1441(a).

Conclusion

11.  This Court has removal jurisdiction over this action under 28 U.S.C. §§ 1332 and

1446 because diversity of citizenship exists and this Notice has been filed within thirty days of 

Defendants being served with the summons and complaint and within one year of the original

filing of the action. See 28 U.S.C. § 1446(b).

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12.  Written notice of the filing of this Notice of Removal is hereby given to Plaintiffs.

A Notice of filing of this Notice of Removal will be filed with the Clerk of the

Superior Court of New Jersey, Bergen County.

Dated: September 12, 2011

Respectfully submitted:

O’MELVENY &MYERS LLP

By: /s/ Jeffrey I. Kohn ________ Jeffrey I. KohnTimes Square Tower 7 Times Square New York, NY 10036Telephone: (212) 326-2000Facsimile: (212) 326-2061E-mail: [email protected] 

Adam Karr (pro hac vice admission pending)610 Newport Center Drive, 17th Floor  Newport Beach, CA 92660-6429Telephone: (949) 760-9600Facsimile: (949) 823-6994E-mail: [email protected] 

Justin Walker (pro hac vice admission pending)2765 Sand Hill RoadMenlo Park, CA 94025Telephone: (650) 473-2600Facsimile: (650) 473-2601E-mail: [email protected] 

Attorneys for DefendantsMagento, Inc., Varien, Inc., eBay, Inc., andPayPal, Inc.

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EXHIBIT A

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Attorney(s):

Law Firm:Address:

JOHN CARRINO, ESQ.

CARRINO GALLAGHER, LLC

548 Franklin AvenueNutley, New Jersey 07110

Telephone No.: (973) 667-0052

Fax No.: (973) 667-0023

E-mail: [email protected]

Attorney(s) for Plaintiff(s):ARTHUR LAWIDA and SAAS ACCELERATOR

ARTHUR LAWIDA and SAAS ACCELERATOR

Plaintiff(s)vs.

MAGENTa, INC.

Defendant(s)

From the State of New Jersey

To the Defendant(s) Named Above: MAGENTa, INC.

SUPERIOR COURT OF NEW JERSE

LAWDIVISIOBERGEN COUNT

DOCKET NO . L-6576-11

CIVIL ACTION

§ummoun

The plaintiff, named above, has filed a lawsuit against you in the Superior Court of New Jersey. The complaattached to this summons states the basis for this lawsuit. If you dispute this complaint, you or your attorney must filewritten answer or motion and proof of service with the deputy clerk of the Superior Court in the county listed above with35 days from the date you received this summons, not counting the date you received it. (The address ofeach deputy clerkthe Superior Court is provided.) I f the complaint is one in foreclosure, then you must file your written answer or motion aproof of service with the Clerk of the Superior Court, Hughes Justice Complex, P.O. Box 971, Trenton, NJ 08625-0971.

filing fee payable to the Treasurer, State of New Jersey, and a completed Case Information Statement (available from tdeputy clerk of the Superior Court) must accompany your answer or motion when it is filed. You must also send a copyyour answer or motion to plaintiffs attorney whose name and address appear above, or to plaintiff, if no attorney is namabove. A telephone call will not protect your rights; you must file and serve a written answer or motion (with fee of$and completed Case Information Statement) if you want the court to hear your defense.

I f you do not file and serve a written answer or motion within 35 days, the court may enter a judgment against y

for the relief plaintiff demands, plus interest and costs of suit. If judgment is entered against you, the Sheriff may seize yomoney, wages or property to pay all or part of the judgment.

I f you cannot afford an attorney, you may call the Legal Services office in the countywhere you live. A list of theoffices is provided. I f you do not have an attorney and are not eligible for free legal assistance, you may obtain a referralan attorney by calling one ofthe Lawyer Referral Services. A list ofthese numbers is also provided.

Dated: August 11, 2011

Name ofDefendant To Be Served:MAGENTa, INC.

Address ofDefendantTo Be Served: 10441 Jefferson Blvd.Suite 200Culver City, CA 90232

Note: Adopted July 13, 1994, effective September 1, 1994; amended June 28,1996, effective September 1, 1996; address/phone information updated July1999, effective September 1, 1999; amended July 12, 2002 to be effective September 3, 2002; amended July 27, 2006 to be effective September 1, 20

addl'ess/phone information updated October 10, 2006 to be effective immediately; address/phone information updated November 1, 2006 to be effec

immediately; address/phone information updated November 17, 2006 to be effective immediately.

31 - Summons - Law or Chancery Divisions

SuperiorCourt - Appendix XII-A

Rev.11/17/06 P3/07

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ATLANTIC COUNTY:Deputy Clerk ofthe Superior Court

Civil Division, Direct Filing

1201 Bacharach Blvd., First FI.Atlantic City, NJ 08401

LAWYER REFERRAL

(609) 345-3444

LEGAL SERVICES

(609) 348-4200

BERGEN COUNTY:

DeputyClerk ofthe Superior Court

Case Processing Section, Room 119

Justice Center, 10 Main Street

Hackensack, NJ 07601-0769

LAWYER REFERRAL

(201) 488-0044

LEGAL SERVICES

(201) 487-2166

BURLINGTONCOUNTY:

Deputy Clerk ofthe Superior Court

Central Processing Office

Attn: Judicial Intake

Fil'st Floor, Court Facility,

49 Rancocas Road

Mount Holly, NJ 08060

LAWYER REFERRAL

(609) 261-4862

LEGAL SERVICES(800) 496-4570

CAMDEN COUNTY:

Deputy Clel'k ofthe Superior COUl't

Civil Pl'ocessingOffice

First Flool', Hall of Recol'ds

101 South Fifth Stl'eet

Camden, NJ 08103

LAWYER REFERRAL

(856) 964-4520

LEGAL SERVICES(856) 964-2010

CAPE MAY COUNTY:

Deputy Clerk ofthe Supel'iol' COUl't

9 North Main Street, Box DN-209Cape May Court House, NJ 08210

LAWYER REFERRAL

(609) 463-0313

LEGAL SERVICES

(609) 465-3001

CUMBERLAND COUNTY:

Deputy Clerk ofthe Superior Court

Civil Case Management OfficeBl'oad & Fayette Streets, P.O. Box 615

Bridgeton, NJ 08302

LAWYER REFERRAL

(856) 692-6207

LEGAL SERVICES

(856) 451-0003

ESSEX COUNTY:

Deputy Clerk ofthe Superior Court

50 WestMarket Street, Room 131

Newark, N.J 07102

LAWYER REFERRAL

(78) 622-6207

LEGAL SERVICES

(973) 624-4500

31 - Summons - Law or Chancery Divisions

Superior Court - AppendixXII-A

Rev.11/17/06 P3/07

GLOUCESTER COUNTY:

Deputy Clerk ofthe Superior Court

Civil Case Management OfficeAttn: Intake

First Floor, Court House

1 North Broad Street, P.O. Box 750

Woodbury, NJ 08096

LAWYER REFERRAL

(856) 848-4589

LEGAL SERVICES

(856) 848-5360

HUDSONCOUNTY:

Deputy Clerk ofthe Superior Court

Civil Recol'ds Dept.

Brennan Courthouse, First Floor

583 Newark Avenue

Jersey City, NJ 07306

LAWYER REFERRAL

(201) 798-2727

LEGAL SERVICES

(201) 792-6363

HUNTERDON COUNTY:

Deputy Clerk ofthe Superior Court

Civil Division

65 Park Avenue

Flemington, NJ 08822

LAWYER REFERRAL

(908) 263-6109LEGAL SERVICES

(908) 782-7979

MERCER COUNTY:

Deputy Clerk ofthe Superior Court

Local Filing Office, Courthouse

175 South Broad St., P.O. Box 8068

Trenton, NJ 08650

LAWYER REFERRAL

(609) 585-6200

LEGAL SERVICES(609) 695-6249

MIDDLESEX COUNTY:

DeputyClel'k ofthe Superior Court

Administration Building, 3ed

Floor1 Kennedy Square, P.O. Box 2633

New Brunswick, NJ 08903-2633

LAWYER REFERRAL

(732) 828-0053

LEGAL SERVICES(732) 249-7600

MONMOUTH COUNTY:

DeputyClerk ofthe Superior Court

Monmouth CountyCourthouse

71 Monument Park, P.O. Box 1269

Freehold, NJ 07728-1269

LAWYER REFERRAL

(732) 431-5544

LEGAL SERVICES

(732) 866-0020

MORRIS COUNTY:

DeputyClerk ofthe Superior Court

Civil Division

30 Schuyler Place, P.O. Box 910

Morristown, NJ 07960-0910

LAWYER REFERRAL

(973) 267-5882

LEGAL SERVICES

(973) 285-6911

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OCEANCOUNTY:

DeputyClerk ofthe Superior Court

Court House, Room 119

118 Washington Street

Toms River, NJ 08754

LAWYER REFERRAL

(732) 240-3666

LEGAL SERVICES

(732) 341-2727

PASSAIC COUNTY:

Deputy Clerk ofthe Superior Court

Civil Division

Passaic County Court House

77 Hamilton Street

Paterson, NJ 07505

LAWYER REFERRAL

(973) 278-9223

LEGAL SERVICES(973) 523-2900

SALEM COUNTY:

Deputy Clerk ofthe Superior Court

92 Market Street, P.O. Box 18

Salem, NJ 08079

LAWYER REFERRAL

(856) 678-8363

LEGAL SERVICES

(856) 451-0003

SOMERSET COUNTY:

DeputyClerk ofthe Supel'ior Court

Civil Division Office

New Court House, 3''<1 Floor

P.O. Box 3000

Somerville, NJ 08876

LAWYER REFERRAL

(908) 685-2323

LEGAL SERVICES

(908) 231-0840

SUSSEX COUNTY:

Deputy Clerk ofthe Superior Court

Sussex County Judicial Center

43-47 High Street

Newton, NJ 07860LAWYER REFERRAL

(973) 267-5882

LEGAL SERVICES

(973) 383-7400

UNIONCOUNTY:DeputyClerk ofthe Superior Court

Court House, First Floor

2 Broad Street

Elizabeth, NJ 07207-6073

LAWYER REFERRAL

(908) 353-4715

LEGAL SERVICES

(908) 354-4340

WARREN COUNTY:

DeputyClerk ofthe Superior CourtCivil Division Office

Warren County Courthouse

413 Second Street

Belvidere, N.J 07823-1500

LAWYER REFERRAL

(908) 387-1835

LEGAL SERVICES(908) 475-2010

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CARRINO GALLAGHER, LLC

548 Frankl in Avenue

Nutley , New Je r sey 07110

P: 973-667-0052 F: 973-667-0023Attorneys fo r P l a i n t i f f

Arthur Lawida and

SaaS Accele ra to r , LLC

Pla in t i f f s ,

v.

Magento, Inc . , Varien, Inc . ,

Ebay, Inc . , and Paypal , Inc .John Does 1-10 and ABC Corps 1

10 ( f ic t ious names used to

r ep resen t one or more unknown

Defendant(s»

Defendants.

i

SUPERIOR COURT OF NEW JERSEY

LAW D I V I S I O N : [ B E f ~ ~ COUNTY

DOCKET NO.: L Q I&--{ {CIVIL ACTION

COMPLAINT and Jury Demand

Pla in t i f f s , Arthur Lawida and SaaS Accele ra to r , LLC by way

of Complaint aga ins t Defendant, hereby says :

1. P la in t i f f ' s p lace of business i s loca ted a t 63 John

S t r e e t , Ridgewood, New Jersey 07450.

2. Defendant ' s place of business i s loca ted a t 10441

Je f f e r son Blvd. , Culver Ci ty , CA, 2211 North F i r s t St r ee t , San

Jose , Cal i fo rn ia , and 2065 Hamilton Avenue, San Jose ,

Cal i fo rn ia .

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COUNT I - BREACH OF CONTRACT

3. At a l l t ime re le va nt h ere to , p l a in t i f f was in a

bus iness re la t ionsh ip with defendant.

4. P l a i n t i f f , was provided a con t r ac t to perform work to

lead the e f fo r t , manage and t ransform Magento's sof tware in to a

SaaS Appl ica t ion and lead the e f fo r t s to t ransform Magento 's

bus iness to suppor t the operat ion of Magento asa

Saas platform.

Defendant executed a con t r ac t with P la in t i f f and gave him the

title of General Manager of Magento SaaS. These se rv ices were

provided fo r Defendant between March 2010 to November 2010. All

se rv ices were perform ed, used and accepted by Defendant to

a s s i s t in t h e i r e f fo r t s to s e l l the company and the Defendant

owes Pla in t i f f pursuant to t h e i r con t rac t and mutual

unders tanding of se rv ices . Pr io r to th e work of P l a i n t i f f ,

defendant had no experience bui ld ing or opera ting e i t he r Saas

sof tware or a SaaS business . Defendant leveraged P l a i n t i f f ' s

exper t i se and r epu ta t ion to bui ld the sof tware and business

opera t ions and f raudulent ly r ep resen ted t h a t P l a i n t i f f was an

employee of Magento in order to c rea te the bus iness without

proper compensation to the Pla in t i f f . The exis tence and

o pera tion of t h i s SaaS bus iness i s a key fac to r in Defendant 's

ab i l i ty to s e l l t h e i r bus iness and the work product of the

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P l a i n t i ff i s a key f a c t o r in P l a i n t i f f ' s a b i l i t y t o s e l l Magento

t o eBay and Paypal . Executives o f Paypal were aware of t h i s

s i t u a t i o n yet a c t i v e l y supported the Defendant 's course of

a c t i o n .

To perform the d u t i e s , P l a i n t i f f was forced t o t r a v e l from

h i s res idence and place of bus iness i n New J e r s e y t o the o f f i c e s

o f Defendant on a f requent b a s i s . P l a i n t i f f was unable t o

pursue o r perform

during t h i s t ime.

any o t h e r bus iness f o r any o t h e r company

P l a i n t i f f madeit

abundantly c l e a r t h a t the

opt ions promised by Defendant were a key f a c t o r i n P l a i n t i f f ' s

continuing commitment t o provide these s e r v i c e s and Defendants

continued t o promise t h a t t he se o pt io ns would be awarded.

5. On or about March 31 , 2011 Defendant t o l d P l a i n t i f f

t h a t i n a d d i t i o n t o h i s compensation, P l a i n t i f f w i l l be provided

with opt ions r e p r e s e n t i n g a 1% e q u it y s ta k e i n th e Company.

P l a i n t i f f has attempted numerous t imes t o e x e r c i s e t h i s opt ion

and g e t resolve t o t h i s matte r b ut t h e P l a i n t i f f wasn ' t

s u c c e s s f u l i n communications with Defendant. Over th e next

s e v e r a l mon th s, Def endant repeatedly t o l d P l a i n t i f f t h a t these

opt ions would b e awar de d.

6. On or about November 2010 a f t e r r ep ea te d a tt emp ts t o

resolve t h i s m a t t e r , Defendant took the work p rodu ct of

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P l a i n t i f f and drove it's Company's value by execut ing on the

P l a i n t i f f ' s SaaS business model. Defendant agreed t o t h i s

compensat ion ar rangement t o P l a i n t i f f and his a c t i o n was an

at tempt t o circumvent payment of t h i s o b l i g a t i o n .

7. Numerous r e q u e s t s have be en p ro po se d t o Defendant by the

P l a i n t i f f and the Defendant h as not made any e f f o r t or good

f a i t h i n t e n t t o pay t h e debt owed t o P l a i n t i f f for s e r v i c e s

performed and b e n e f i t e d by Defendant. Defendant has not been

w i l l i n g t o provide payment t o the P l a i n t i f f .

WHEREFORE, p l a i n t i f f r e s p e c t f u l l y demands judgment i n i t s

favor and a g a i n s t t h e defendant on the F i r s t Count of i t s

Complaint with damages, t o g e t h e r with i n t e r e s t , l a t e f e e s ,

c o s t s , a t t o r n e y ' s fees and such o t h e r and f u r t h e r r e l i e f as the

c o u r t may deem j u s t and proper .

COUNT I I - Breach of the Duties o f Good F a i t h and F a i r Dealing

8. P l a i n t i f f r e p e a t s t h e foregoing a l l e g a t i o n s and makes

t h e same a p a r t hereof as i f repeated a t l e n g t h .

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9. The defendant owed the p l a i n t i f f a duty of good fa i th

and f a i r deal ing in connect ion with t he i r r e spons i b i l i t i e s and

obl iga t ions under i t s contrac t with the pla in t i f f .

10. Defendants breached th e i r duty of good fa i th and f a i r

deal ing by refus ing to make payment upon numerous demands and

then u t i l i z ing and benef i t ing from services performed fo r the

Magento business by the pla in t i f f . Defendant concluded a sa le of

the b usiness which P l a i n t i f f ' s work product was ins t rumenta l in

th at sa le .

11. As a r e su l t of th e d ef en da nt 's conduct , p l a i n t i f f has

su f fe red damages.

WHEREFORE, p l a i n t i f f r e spec t fu l ly demands judgment in i t s

favor and agains t the defendant on the Second Count of i t s

Complaint for damages, together with i n t e r e s t , l a t e fees , cos t s ,

a t to rney ' s fees and such other and fur the r r e l i e f as the Court

may deem ju s t and proper .

COUNT I I I - UNJUST ENRICHMENT

12. Pla in t i f f repeats the foregoing a l lega t ions and makes

the same a pa r t hereof as if repeated a t l eng th .

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13. As a r e su l t of defendant ' s f a i lure to remit payment to

p l a i n t i f f a f t e r performance of se rv ices tendered, d ef en da nt h as

and cont inues to be un jus t ly enr iched by P l a i n t i f f ' s fu l l

performance to th e de tr im ent o f p l a in t i f f .

WHEREFORE, p l a i n t i f f re spec t fu l ly demands judgment in i t s

favor and aga ins t the defendant on the Third Count of i t s

Complaint fo r damages, together with in te re st , l a te f ees , cos t s ,

a t t o rney ' s fees and such o ther and fu r the r r e l i e f as the Cour t

may deem j u s t and proper .

COUNT IV - NEGLIGENT INFLICTION OF ECONOMIC LOSS

14. P la in t i f f re pe ats th e foregoing a l lega t ions and makes

the same apar t hereof as if repeated a t l eng th .

15. Defendant knew or should have known t ha t P la in t i f f

would su f f e r economic harm as a r e su l t of t h e i r non-payment of

monies due and owed.

16. Defendant i s l i ab l e fo r economic damages proximately

caused by f a il in g to take reasonable measures to avoid the r i sk

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o f c a u s i n g e c o n o m i c d a m a g e s t o P l a i n t i f f .

WHEREFORE, p l a i n t i f f r e s p e c t f u l l y d e m a n d s j u d g m e n t i n its

f a v o r a n d a g a in s t t h e d e f e n d a n t on t h e F o u r t h C o u n t o f its

C o m p l a i n t f o r d a m a g e s , t o g e t h e r w i t h i n t e r e s t , l a t e f e e s , c o s t s ,

a t t o r n e y ' s f e e s a n d s u c h o t h e r a n d f u r t h e r r e l i e f a s t h e C o u r t

ma y deem j u s t a n d p r o p e r .

COUNT V - PROMISSORY ESTOPPEL

1 7 . P l a i n t i f f r e p e a t s t h e f o r e g o i n g a l l e g a t i o n s a n d m a k e s

t h e same a p a r t h er e o f a s if r e p e a t e d a t l e n g t h .

1 8 . P l a i n t i f f p e r f o r m e d s e rv ic e s f o r d e f e n d a n t a t t h e

r e q u e s t o f D e f e n d a n t . S a i d s e r v i c e s w e r e p e r f o r m e d an d

d e f e n d a n t b e n e f i t e d from t h o s e s e r v i c e s .

1 9 . D e f e n d a n t s knew o r s h o u l d h a v e known t h a t t h o s e

s e r v i c e s w e r e n o t g r a t u i t o u s .

WHEREFORE, p l a i n t i f f r e s p e c t f u l l y d e m a n d s j u d g m e n t i n its

f a v o r a n d a g a i n s t t h e d e f e n d a n t o n t h e F i f t h C o u n t o f its

C o m p l a i n t f o r d a m a g e s , t o g e t h e r w i t h i n t e r e s t , l a t e f e e s , c o s t s ,

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a t t o rney ' s fees and such o ther and fu r the r r e l i e f as the Court

may deem j u s t and proper .

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DESIGNATION OF TRIAL COUNSEL

Pursuant to Rule 4:25-4, John Carrino, Esq. ~ hereby

d es ig na te d a s t r i a l counsel in the above matter .

CARRINO GALLAGHER, LLC

Attorneys for P l a i n t i f f

Dated: July 15, 2011

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CERTIFICATION PURSUANT TO RULE 4:5-1

I ce r t i fy , pursuant to Rule 4:5-1, t ha t the matter in

controversy is not the subjec t of any other ac t ion or

arb i t ra t ion proceeding, now or contemplated, and t ha t no othe r

par t ies should be jo ined in th i s ac t ion a t th is t ime.

CARRINO GALLAGHER, LLC

Attorneys for Pla in t i f f

Dated: July 15, 2011

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