Steve Ballmer sued by former Sonics employee
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Transcript of Steve Ballmer sued by former Sonics employee
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3 ASSIGNED TO THE HONORABLE CHAD ALLRED
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SUPERIOR COURT OF THE STATE OF WASHINGTON
8 FOR KING COUNTY
THOMAS BUKOWSKI, NO. 13-2-34723-7 SEA
10 Plaintiff, FIRST AMENDED COMPLAINT
11 V.
12
13 STEPHEN BRUCE GORDON and MEGAN LANTRY, husband and wife; STEVEN
14 ANTHONY BALLMER, an individual,
15 Defendants. 16
17 Plaintiff Thomas Bukowski ("Bukowski"), for purposes of his complaint, alleges as
18 follows:
19 I. PARTIES
20 1.1 Plaintiff is resident of King County, Washington.
21 12 Defendants Stephen Bruce Gordon ("Gordon") and Megan Lantry ("Lantry")
22 are husband and wife and reside in King County, Washington. All acts of both Stephen
23 Gordon and Megan Lantry alleged herein were committed for and on behalf of their 24
marital community. 25
1.3 Defendant Steven Anthony Ballmer ("Ballmer") is a resident of King County, 26
Washington.
FIRST AMENDED COMPLAINT - I of 16 GORDON THOMAS HONEYWELL LLP I 1201 PACIFIC AVENUE, SUITE 2100 POST OFFICE BOX 1157
TACOMA, WASHINGTON 98401-1157 (253) 620-6500 - FACSIMILE (253) 620-6565
FILED14 MAY 14 PM 1:12
KING COUNTYSUPERIOR COURT CLERK
E-FILEDCASE NUMBER: 13-2-34723-7 SEA
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I II JURISDICTION AND VENUE
2 2.1 This Court has jurisdiction over the subject matter of this case because the
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acts complained of occurred in King County, Washington and both plaintiff and
4 defendants are residents of King County, Washington.
5 2.2 Venue is proper in King County pursuant to RCW 4.12.020 because the
6 subjects of this action are agreements made and agreements executed in King County
7 and because the cause of action accrued in King County.
8 III. FACTUAL ALLEGATIONS
9 A. Facts Relating to Claims Against Defendants Gordon and Lantry
10 3.1 Plaintiff Bukowski received Bachelor of Science Degrees in Biology and
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12 Chemistry in 1979 from Western Washington University. Over the years, Bukowski
13 expended extraordinary efforts to rise through the ranks in the biotech field. In late 1993
14 he was hired by Zymo Genetics. He eventually rose to be Principal Scientist with a six
15 figure salary.
16 3.2 For approximately 18 years Lantry worked with or for Bukowski. Bukowski
17 and defendants Gordon and Lantry also share the same religion and Lantrys brother
18 presided at Bukowskis wifes funeral.
19 33 In approximately the Fall of 2004, Bukowskis wife Toni was diagnosed with
20 Stage 3 Ductal Breast Cancer. She passed away on February 1, 2008. 21
3.4 During Toni Bukowskis illness, Lantry approached Bukowski and said that 22
her husband Gordon had unique investment opportunities. She further stated that she 23
and Gordon wanted to help Bukowski and his wife with their "nest egg." She further 24
assured Bukowski that all of the Gordons business transactions were "above board" and 25
26 completely legal.
FIRST AMENDED COMPLAINT - 2 of 16 LAW OFFICES 11000889531
GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
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3.5 In a subsequent conversation, Gordon told Bukowski that he had a special
relationship with John Michael ("Mr. Michael"), the CEO of Allstate Financial Group, Inc.
("Allstate"), a firm that performs billing and management services for health and fitness
clubs. Gordon provided Bukowski with a general explanation of Allstates business and
represented that the company was earning a 29% annual rate of return or better on
funds invested with the company.
3.6 Gordon went on to tell Bukowski that normally Mr. Michael and Allstate
would not accept an investment from anyone with less than $5 million, but that he,
Gordon, due to his special relationship with Mr. Michael, could invest Bukowskis money
with Mr. Michael and Allstate.
3.7 Gordon described the investment as a "once in a lifetime" opportunity and
strongly encouraged Bukowski to make every effort to obtain as much money as quickly
as possible to give to Gordon so that he could invest it with Mr. Michael and Allstate.
3.8 During parts of 2008 and early 2009, Bukowski provided Gordon with
approximately $920,000 in various installments. The sources of the funds used by
18 Bukowski included the proceeds from his deceased wifes life insurance policy; cashing
19 out stock options he held with Zymo Genetics; borrowing from his 401K account; and a
20 series of mortgages against his home, which had been owned free and clear, that ended
21 up totaling $450,000. Most of these payments to Gordon were reflected through wire
22 transfers or checks made payable to Gordon.
23 3.9 With respect to the payment to Gordon of Bukowskis deceased wifes life
24 insurance proceeds, Gordon demanded that those monies be placed into a joint bank 25 account at Bank of America with both Bukowski and Gordon as signatories. Gordon
26 subsequently withdrew all of those funds.
FIRST AMENDED COMPLAINT -3 of 16 LAW OFFICES
[100088953] GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100 POST OFFICE BOX 1157
TACOMA, WASHINGTON 98401-1157 (253) 620-6500 - FACSIMILE (253) 620-6565
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I 3.10 In April of 2009, Gordon acknowledged the payment of $920,000 and his
2 personal liability for the same through the execution of a Promissory Note attached as
3 Exhibit A. Under the terms of that Note, Gordon promised to pay Bukowski $920,000
4 plus a "minimal annual interest of 12%." Gordon further assured Bukowski that his
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6 investment with Gordon would be worth $3 million by April 2014 and that Bukowski
7 would then receive $30,000 per month.
8 3.11 In approximately 2010, Gordon approached Bukowski about a "special
9 opportunity." Gordon showed plaintiff an email from Steve Polls, an accountant, that
10 Gordon represented as evidence of an agreement between Gordon and Ballmer to
11 establish a fund for the benefit of Gordon in the amount of 155,000K," or $55 million.
12 The purpose of the fund was to create sufficient net worth for Gordon such that Gordon
13 could qualify to become a minority owner of an NBA franchise that Ballmer intended to
14 bring to Seattle.
15 3.12 Gordon then explained that he needed funds to complete the legal work
16 necessary to implement the $55 million fund. Gordon stated that if Bukowski provided
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18 him with approximately $70,000 for that purpose, Gordon would arrange for $7,023,000
19 of the fund to be paid to Bukowski or his designees. Bukowski agreed to the terms of
20 Gordons offer and provided Gordon approximately $70,000 in 2011.
21 3.13 At some point thereafter, Bukowski became concerned about payment by
22 Gordon of the monies promised from the fund. Bukowski was repeatedly assured by
23 Gordon that everything was fine and that funds would be available shortly. These
24 representations continued until on or about December 11, 2011, when Gordon assured
25 Mr. Bukowski that the funds would be available the following day and that Bukowski
26 could begin writing checks on those funds. Based in part on the representations of
FIRST AMENDED COMPLAINT -4 of 16 LAW OFFICES 11000889531
GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
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I Gordon, Bukowski retired from his then employer, Immune Design and his six figure 2
salary, on December 18, 2011 3
3.14 Throughout 2012, Bukowski repeatedly spoke with Gordon about the 4
status of his funds. He was continually assured by Gordon that the funds were shortly 5
6 forthcoming.
7 3.15 On December 31, 2012, Bukowski and Gordon executed a written and
8 notarized acknowledgement of Gordons obligations to Bukowski, attached hereto as
9 Exhibit B. Gordon acknowledged both his obligation to deliver $7,023,000 to Bukowski
10 and the prior $920,000 paid to Gordon by Bukowski in 2008 and 2009.
11 B. Facts Relating to Claims Against Defendant Ballmer
12 3.16 Defendant Gordon met Frank Gaudette, Microsofts then Chief Financial
13 Officer, in approximately 1990 at Pro Sports Club (formerly known as SuperSonics
14 Racquet Club) in Bellevue, Washington.
15 3.17 At the time, Gordon was employed as a trainer by the Seattle SuperSonics
16 (the "Sonics"), which trained at the Pro Sports Club. Microsoft employees were also
17 authorized to use the same club facilities and locker rooms.
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19 3.18 Mr. Gaudette introduced Gordon to a number of Microsoft employees,
20 including Ballmer, soon after meeting Gordon.
21 3.19 Defendant Gordon began providing instructional basketball lessons to
22 Microsoft employees, including Ballmer. Gordon trained Ballmer and other Microsoft
23 employees once a week at 6:00 am at Pro Sports Club for about eleven years.
24 3.20 At some point after the basketball lessons began, Gordon and Ballmer
25 became close personal friends. Over time, their relationship developed to the point that
26 Gordon considered himself Ballmers "consigliere."
FIRST AMENDED COMPLAINT - 5 of 16 LAW OFFICES [1000889531 GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
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3.21 For example, Gordon helped organize Ballmers 40th birthday by arranging
for a reunion of the 1979 NBA Champion Sonics to play a game with Ballmer and others
at Pro Sports Club.
3.22 In addition, Gordon attended Ballmers 50th birthday party in the
Caribbean. Gordon was one of approximately 40 guests; all of the others in attendance
were famous for their wealth and/or success in the business world. Gordon and Ballmer
spent much of the time together during the four day trip on Paul Allens yacht watching
NCAA basketball tournament games.
3.23 Gordon also developed a very close personal relationship with Ballmers
children. Gordon was made a godparent to at least one of Ballmers children. Gordon also
began teaching each of Ballmers children how to play basketball when the children were
as young as two years old. Ballmers children viewed Gordon as an influential figure in
their lives. Eventually the Ballmer children, Ballmer, and other members of Ballmers
family adopted a term of endearment for Gordon, calling him "Coachie."
3.24 Ballmer assisted in arranging for Gordon to be hired by Microsoft in the
1990s to help develop NBA Full Court Press, a computer game developed by Microsoft.
Gordon received approximately $3,000 per month for three years for his work on the
game.
3.25 Gordon and Ballmers relationship was so close that Ballmer repeatedly
repaid Gordons debt. For example, in the 1990s, Ballmer repaid approximately
$560,000 in real estate debt for property Gordon owned in North Bend, Washington.
3.26 In the early 2000s, Ballmer also arranged for payment to discharge
roughly $1.1 million in real estate debt and delinquent tax liabilities owed by Gordon.
FIRST AMENDED COMPLAINT - 6 of 16 LW OFFICES [100088953] GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
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3.27 Beginning sometime in approximately 2007 or 2008, Ballmer began giving
Gordon a $9,900 per month "stipend" and stated that he would continue to make such
payments to Gordon for the remainder of Gordons life.
3.28 At some time before December 2011, Ballmer and Gordon opened three
joint bank accounts at Wells Fargo, where Bailmer and Balimers personal assistant,
Deborah G. Hill, were also listed on the account as having power of attorney for Gordon.
The $9,900 monthly stipend from Ballmer was deposited into one of these joint account
at Wells Fargo on the first day of every month.
3.29 In 2012 and 2013, a group led by Ballmer and Chris Hansen attempted to
purchase the Sacramento Kings and relocate them to Seattle. Gordon was employed by
the Minnesota Timberwolves at the time. Ballmer asked Gordon to develop a relationship
with the owner of the Minnesota Timberwolves, a key vote on the NBA Relocation
Committee, and to report back to Ballmer whatever information Gordon could gather
about the Timberwolves owners receptiveness to the Balimer/Hansen proposal. Ballmer 16
also asked Gordon to investigate possible coaching staff and general manager 17
18 candidates for the to-be-relocated franchise and scout and analyze the current players
19 under contract by the Kings. Ballmer also asked Gordon to use his contacts throughout
20 the NBA to ascertain how the Ballmer/Hansen proposal was being received by the other
21 NBA owners.
22 3.30 On May 15, 2013, the NBA owners voted against allowing the Kings to
23 relocate to Seattle. This vote ended any chance the Ballmer/Hanseri group had at
24 acquiring the Kings and relocating them to Seattle.
25 3.31 Shortly after learning of the vote, Gordon became depressed because of
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the combination of the failure of the Ballmer/Hansen proposal and his personal financial
FIRST AMENDED COMPLAINT - 7 of 16 LAW OFFICES 11000889531
GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
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I troubles. At the time, Gordon had outstanding debts in excess of $6 million, the vast
2 majority of which represented payments by investors, like Bukowski, to Gordon.
3 3.32 Gordon and Ballmer met on or around May 17 at Balimers house in Hunts
4 Point. Bailmers sister, Shelly Ballmer ("Ms. Ballmer"), also attended the meeting. At the
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6 meeting, Gordon described his depression and the significant debts he owed to others,
7 including his debt to Bukowski. Balimer expressed concern about his friends mental
8 health. Balimer promised Gordon that if Gordon agreed to check himself into the
9 Menninger Clinic in Houston, Texas for treatment, Ballmer would in turn repay Gordons
10 outstanding debts to investment creditors.
11 3.33 During the meeting, when discussing his debts with Ballmer, Gordon
12 identified Bukowski as his largest investor creditor and indicated that it was important
13 that Bukowski be paid back quickly. Gordon explained that due to his wifes longstanding
14 and close relationship with Bukowski, repayment of the Bukowski obligation was one of
15 his highest priorities. Ballmer indicated that Gordons investor creditors would be repaid
16 without regard to whether the money could be recovered from Allstate.
17 3.34 In order to effectuate and implement their agreement, Ballmer decided
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19 that Gordon needed independent counsel who could assist Gordon with documenting
20 Gordons legitimate debts to investors.
21 3.35 Ballmers counsel at the time was Mark Rising ("Rising"), an attorney at the
22 law firm of Helsell Fetterman ("Helsell"). Ballmer arranged, through Rising, for Gordon to
23 receive independent counsel. Rising contacted the law firm of Skellenger Bender
24 ("Skellenger") and arranged for Skellenger to be retained on Gordons behalf.
25 3.36 Ballmer, through Helsell, subsequently provided funds for the payment of
26 Skellengers legal services provided to Gordon. For instance, Helsell wire transferred
FIRST AMENDED COMPLAINT -8 of 16 LAW OFFICES [100088953] GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
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I $25,000 to Skellenger on May 30, 2013, wrote a check in the amount of $25,000 to
2 Skellenger on July 30, 2013, and wrote a check in the amount of $11,756.28 to
3 Skellenger on September 9, 2013
4 3.37 In an email dated June 3, 2013, Rising reiterated to Gordons principal
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6 attorney at Skellenger, Jeff Grant ("Grant"), the elements of Ballmer and Gordons
7 agreement, that "Steve Ballmers consideration of financial assistance to Steve Gordon is
8 conditioned on two things: (a) Steve Gordons entry into the Menninger Clinic program as
9 soon as possible; and (b) Steve Gordons complete disclosure to Mr. Ballmer of all details
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relating to his alleged obligations to investors. . .
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3.38 From the inception of their agreement, Ballmer intended to discharge
12 Gordons obligations to investor creditors through a direct payment to such investors from
13 himself, or an entity directly controlled and funded by Ballmer, and not by payments
14 made to Gordon, who would then repay his own investor creditorss. Thus, Ballmers
15 performance was intended to and would confer a direct benefit upon Gordons third-party
16 investor creditors, including Bukowski. At all times material to the Ballmer-Gordon
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18 agreement, it was understood that Ballmers performance would necessarily and directly
19 benefit such third-party investor creditors, including Bukowski.
20 3.39 Gordon and Grant continued collecting information related to Gordons
21 debts to investor creditors, including information from Bukowski, after receiving Risings
22 June 3 email, and consistently provided such information to Ballmers counsel.
23 3.40 Pursuant to and in performance of their agreement, on or around June 11,
24 2013, Gordon flew with Ms. Ballmer to Houston, Texas on Ballmers private airplane and
25 checked himself into Menninger, with the assistance of Ms. Ballmer. Ballmer paid for the
26 cost of Gordon , s transportation to and treatment at Menninger.
FIRST AMENDED COMPLAINT -9 of 16 LAW OFFICES
11000889531 GORDON THOMAS HONEYWELL LLP
1201 PACIFIC AVENUE, SUITE 2100 POST OFFICE BOX 1157
TACOMA, WASHINGTON 98401-1157 (253) 620-6500 - FACSIMILE (253) 620-6565
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I 3.41 At one or more points during Gordons stay at Menninger, Menninger staff
2 voiced concerns to Ms. Ballmer about the effect Gordons financial troubles were having
3 on his treatment. Ms. Balimer told Menninger staff that Gordons financial troubles were
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5 being resolved by Ballmer.
6 3.42 With the help of his wife and Grant, Gordon continued collecting all
7 information related to his outstanding debt obligations to investor creditors while he was
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at Menninger and forwarded the information to Rising.
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3.43 During this period, Rising and his firm devoted considerable resources to
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documenting, cataloguing, and confirming Gordons debts to investor creditors and
11 prepared multiple tables and spreadsheets concerning such debts and the relevant
12 documentation.
13 3.44 On June 23, 2013, Grant sent an email to Rising sharing the message that 14
Grant intended to send to all of Gordons investor creditors informing them that "Gordon 15
ha[d] secured funding sufficient to return the funds" Gordon owed them. This message 16
was grounded in Bailmers promise to pay Gordons investor creditors in return for 17
18 Gordon performing his obligations, which performance was then ongoing.
19 3.45 Rising responded the next day, June 24, stating that his "client [could not]
20 be involved in [direct] communications with Mr. Gordons investors," but did not
21 otherwise express any concerns over or identify any errors in the message to Gordons
22 investor creditors, nor did he indicate the message should not be sent. In reliance on
23 Risings silence/acquiescence to both the fact of the message and its content, Grant
24 provided the message to Gordons investor creditors.
25 3.46 Ballmer and Rising considered various options for effectuating Ballmers
26 agreement to pay Gordons investor creditors directly. In the end, they decided upon
FIRST AMENDED coMPLAINT- 10 of 16 LAW OFFICES
11000889531 GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
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forming an LLC for the purpose of funding and directly distributing funds to Gordons
investor creditors, like Bukowski.
3.47 On or around June 29, 2013, Ballmer, through Rising, formed Coachie LLC,
a Washington limited liability company, for the purpose of funding and paying Gordons
debts, including his debts to Bukowski. Rising was named as the registered agent for
Coachie, LLC.
3.48 On July 1, 2013, Rising, in response to an email from Grant indicating that
Gordons investor creditors were inquiring as to when they would be paid and asking
Rising how he should respond, told Grant that Gordons debts would likely be paid within
a week of the completion of the ongoing cataloguing and verification process.
3.49 One of Gordons creditors, Clearly Capital, was threatening suit against
Gordon. Grant and Rising agreed that such an event would be detrimental to their
ongoing performance of the Balimer and Gordon agreement.
3.50 Consistent with, and in part performance of his promise, Ballmer
subsequently agreed to repay Gordons debt to Cleary Capital and, through Rising,
instructed Gordon and/or Lantry to pay $50,000 to Cleary Capital. And, consistent with
their agreement, Ballmer promised to reimburse Gordon and Lantry for such payment.
3.51 On or around July 30, 2013, Ballmer, through Helsell, sent a check to
Skellenger in the amount of $50,000 "to satisfy any obligation the Ballmers have in
connection with the $50,000 [that] was transferred to Clearly Capital on or about July 8,
2013."
3.52 On or around July 10, 2013, Grant flew to Houston to visit Gordon at the
Menninger Clinic. The purpose of the meeting was to discuss how to locate the remaining
financial information requested by Bailmer and Rising and for Gordon to execute a
FIRST AMENDED COMPLAINT - :11 of 16 LAW OFFICES
11000889531 GORDON THOMAS HONEYWELL LLP
1201 PACIFIC AVENUE, SUITE 2100 POST OFFICE BOX 1157
TACOMA, WASHINGTON 98401-1157 (253) 620-6500 - FACSIMILE (253) 620-6565 I
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Financial Durable Power of Attorney giving Coachie LLC, and its manager, Rising, rights to
obtain all financial documentation concerning Gordon and to manage Gordons accounts
Gordon executed the Financial Durable Power of Attorney and the same was provided to
Rising.
3.53 On or about July 18, 2013, Ballmer changed his mind and decided to
repudiate his agreement with Gordon and to not repay Gordons outstanding debts to
investor creditors.
3.54 Thereafter, Ballmer ceased paying for the legal services performed by
Skellenger on Gordons behalf. Ballmer agreed to pay Gordons legal fees through July
31, 2013 even though Grant continued working for Gordon long after July 31, 2013.
Bailmer also discontinued making the promised monthly $9,900 stipend payments to
A 10
3.55 Gordon has suffered damages as a result of his reliance on Ballmers
promises and Gordons performance related to Ballmers promises. Such damages
include, but are not limited to, the professional and personal stigma of having received
lengthy in-patient treatment at the Menninger Clinic, which will likely need to be disclosed
in connection with future financial and/or business transactions, lost opportunities for
income while at the Menninger Clinic, and an outstanding obligation to Skellenger of
approximately $40,000 because Balimer ceased payment.
3.56 Bukowski has the right to enforce the contract between Gordon and
Ballmer because Gordon and Ballmer entered into the agreement intending and
understanding that their agreement would necessarily and directly benefit third-party
investor creditors of Gordons, including Bukowski.
FIRST AMENDED COMPLAINT - 12 of 16 LAW OFFICES
1iOOO88953 GORDON THOMAS HONEYWELL LLP
1201 PACIFIC AVENUE, SUITE 2100 POST OFFICE BOX 1157
TACOMA, WASHINGTON 98401-1157 (253) 620-6500 - FACSIMILE (253) 620-6565
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I 3.57 Gordon subsequently informed Bukowski that Ballmer had reneged on his
2 agreement and refused to pay any of Gordons debts to investor creditors, with the
3 exception of the $50,000 owed to Clearly Capital.
4 3.58 Despite repeated requests and demands, Balimer has not paid any
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6 amounts Gordon owes to Bukowski.
7 IV. CAUSES OF ACTION
8 A. BREACH OF PROMISSORY NOTE (against Gordon and Lantry)
9 4.1 Bukowski realleges the proceeding paragraphs as though fully set forth
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herein.
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4.2 Defendants have failed to make any payment to Bukowski on the 2009
12 Promissory Note and are in default of the same.
13 4.3 The Promissory Note provides that in the event of suit to collect any
14 principal or interest, Gordon must also pay Bukowski his reasonable attorneys fees and
15 costs of collection and that such fees and costs shall be added to the principal balance
16 and bear interest at 12%.
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18 B. BREACH OF CONTRACT (against Gordon and Lantry)
19 4.4 Bukowski reincorporates the allegations contained herein.
20 4.5 Bukowski and Gordon entered into a contract, the terms of which were that
21 Bukowski would provide Gordon approximately $70,000 cash in return for Gordons
22 subsequent arrangement for payment to Bukowski or his designees of $7,023,000.
23 Bukowski accepted those terms and performed his obligations under those terms.
24 4.6 Gordon has acknowledged this contract in writing, as evidenced by Exhibit
25 B. Gordon promised to make the required payment within 30 days after December 31,
26 2012 "or thereabouts."
FIRST AMENDED coMPLAINT- 13 of 16 LAW OFFICES
[100088953] GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100 POST OFFICE BOX 1157
TACOMA, WASHINGTON 98401-1157 (253) 620-6500 FACSIMILE (253) 620-6565
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I 4.7 More than reasonable time has elapsed since Gordons December 31,
2 2012 promise to pay and defendants are now in default.
3 4.8 To date, no payments whatsoever have been made by defendants with
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5 respect to their $7,023,000 obligation.
6 C. BREACH OF CONTRACT, THIRD PARTY BENEFICARY (against Ballmer)
7 4.9 Bukowski reincorporates the allegations contained herein.
8 4.10 Ballmer offered to repay Gordons outstanding debts to investor creditors,
9 like Buskowski, whom Ballmer knew was an outstanding investor creditor of Gordon.
10 4.11 Gordon accepted Ballmers offer when he promised to perform by going to
11 Menninger and collecting information relating to all debts to investors.
12 4.12 Gordon incurred a bargained-for legal detriment sufficient to constitute
13 consideration to support the agreement.
14 4.13 Ballmer has failed to repay any of Gordons debts except the $50,000 debt 15
owed to Cleary Capital and is thus in breach of the contract he entered with Gordon. 16
4.14 Bukowski has the right to enforce the contract between Gordon and 17
18 Ballmer because Gordon and Ballmer entered into the agreement intending and
19 understanding that their agreement would necessarily and directly benefit third-party
20 investor creditors of Gordons, including Bukowski.
21 4.15 Ballmer intended to discharge Gordons obligations through a direct
22 payment from Ballmer, or an entity directly controlled and funded by Ballmer, to Gordons
23 investor creditors, and not by payments to Gordon, who would then repay his own
24 investor creditors. Thus, Ballmers performance would confer a direct benefit upon
25 Gordons third-party investor creditors, including Bukowski, which would necessarily and
26 directly benefit such third-party investor creditors, including Bukowski.
FIRST AMENDED COMPLAINT - 14 of 16 LAW OFFICES 11000889531
GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
-
D. BREACH OF UNILATERAL CONTRACT, THIRD PARTY BENEFICARY (against Bailmer) 2
4.16 Bukowski reincorporates the allegations contained herein. 3
4.17 Ballmer offered to repay Gordons outstanding debts to investor creditors, 4
like Bukowski, whom Ballmer knew was an outstanding investor creditor of Gordon, if
6 Gordon checked himself into the Menninger Clinic and disclosed details relating to his
debt obligations to investors.
8 4.18 Gordon accepted Ballmers offer by performing the acts set forth in
9 Ballmers offer.
10 4.19 Gordons performance of the acts requested by Ballmer is sufficient
11 consideration to support Ballmers promise.
12 4.20 Alternatively, Gordon began to perform the acts requested in Ballmers
13 offer. After beginning to perform, Gordon was entitled to a reasonable period of time to
14 complete his performance. Ballmer repudiated before Gordon was able to fully perform
15 the acts requested of him in Ballmers offer, thereby waiving any condition precedent as
16 to Ballmers performance.
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18 4.21 Ballmer has failed to repay Gordons debts and is in breach of their
19 agreement.
20 4.22 Bukowski has the right to enforce the contract between Gordon and
21 Ballmer because Gordon and Ballmer entered into the agreement intending and
22 understanding that their agreement would necessarily and directly benefit third-party
23 investor creditors of Gordons, including Bukowski.
24 4.23 Ballmer intended to discharge Gordons obligations through a direct
25 payment from Ballmer, or an entity directly controlled and funded by Ballmer, to Gordons
26 investor creditors, and not by payments to Gordon, who would then repay his own
FIRST AMENDED COMPLAINT - 15 of 16 LAW OFFICES 11000889531
GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100
POST OFFICE BOX 1157 TACOMA, WASHINGTON 98401-1157
(253) 620-6500 - FACSIMILE (253) 620-6565
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investor creditors. Thus, Balimers performance would confer a direct benefit upon
Gordons third-party investor creditors, including Bukowski, which would necessarily and
directly benefit such third-party investor creditors, including Bukowski.
V PRAYER FOR RELIEF
WHEREFORE, plaintiff prays for relief as follows:
5.1 For judgment that all amounts owed to Bukowski referenced herein are
obligations of both Gordon and the marital community of Gordon and Lantry;
5.2 For an award of all amounts due under the Promissory Note, attached
hereto as Exhibit A, together with reasonable attorneys fees and costs incurred by
plaintiff against all defendants;
5.3 For an award of $7,023,000 from defendants Gordon and Lantry;
5.4 Enforcement of the contract between Ballmer and Gordon;
5.5 For an award of attorneys fees and costs as otherwise permitted by statute
or law;
5.6 For an award of pre- and post-judgment interest; and
5.7 For such other and further relief as this Court deems just and equitable.
Dated this VA day of May, 2014. GORDON THOMAS HONEYWELL LLP
BJ/) Bradley B. Jones, \SBA No. 17197 [email protected] Donald S. Cohen, WSBA No. 12480 [email protected] Travis A. Mahugh, WSBA No. 46567 tmahuis,[email protected] Attorneys for Plaintiff
FIRST AMENDED COMPLAINT - 16 of 16 LAW OFFICES
[00088953] GORDON THOMAS HONEYWELL LLP 1201 PACIFIC AVENUE, SUITE 2100 POST OFFICE BOX 1157
TACOMA, WASHINGTON 98401-1157 (253) 620-6500 - FACSIMILE (253) 620 6565
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P1SSOftNOtE
TO PAY. For the value received the iandersined, jolntly and severally,
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This guanty shall survive any it or dissolution of the maker, and all notices of the su6ty ship nature, including notices of default, arc hereby waived by the undersigned.
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