OFFICE OF ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA,

Plaintiff,

v.

WILLIAM JOHN LYNE, Individually, and d/b/a LEATHER DEPOT, LEATHER POINTE, and COASTAL LEATHER,

Defendant.

IN THE CIRCUIT COURT OF THE FOURTH JUDICIAL CIRCUIT IN AND FOR DUVAL COUNTY, FLORIDA

Case No.: 2008-CA-002759 Division: CV-E

CONSENT JUDGMENT

Pursuant to the attached Consent Judgment submitted by Plaintiff, Office of the Attorney

General, Department of Legal Affairs, State of Florida, Pam Bondi, Attorney General

("Plaintiff'), and Defendants, William John Lyne, individually, and doing business as Leather

Depot, Leather Pointe, and Coastal Leather ("Defendants"), in this matter, the Court now makes

the following findings and enters the following Consent Judgment:

I. JURISDICTION AND SCOPE

1. l Jurisdiction

The Court has jurisdiction over the subject matter of this action and over Defendants and

retains jurisdiction over this action, the Defendants, and Consent Judgment.

1.2 Venue

Venue for any matters relating to or arising out of the Consent Judgment shall lie solely

in Duval County, Florida. This Consent Judgment may be enforced by contempt proceedings.

1.3 Scope of Consent Judgment

The injunctive provisions of this Consent Judgment are entered pursuant to the Florida

Deceptive and Unfair Trade Practices Act, Chapter 501, Florida Statutes relating to the sale of

merchandise over the internet and are applicable to WILLIAM JOHN LYNE, individually, and

doing business as LEATHER DEPOT, LEATHER POINTE, and COASTAL LEATHER, their

officers, directors, employees, agents, servants, representatives, their successors and assigns, and

all persons, corporations, partnerships, and other entities acting in concert or participating with

any or either of them who have actual or constructive knowledge of this Consent Judgment.

This Consent Judgment applies to natural persons in their individual and representative

capacities as directors, officers, employees, agents, servants or representatives of WILLIAM

JOHN LYNE, individually, and doing business as LEATHER DEPOT, LEATHER POINTE,

and COASTAL LEATHER, or other relevant entity.

II. FINDINGS

2.1 On March 3, 2008, Plaintiff filed a Complaint for Injunctive Relief, Restitution, Civil

Penalties, and other Statutory Relief, alleging that Defendants had violated the Florida Deceptive

and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes.

2.2 On March 27, 2008, Defendants served Plaintiff with their Answer and Affirmative

Defenses. Since that time, the Parties have engaged in settlement negotiations.

2.3 The Parties have now consented to entry of this Consent Judgment without trial of any

issue of law or fact. The Parties, by and through their respective counsel, have agreed to the

provisions and conditions of this Consent Judgment and its adoption by this Court in order to

resolve all matters in dispute in this action.

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2.4 The Parties have further agreed and stipulated to the provisions of this Consent Judgment

and its entry by the Court without further notice, hearing, or any further procedural steps. The

Parties have waived any requirements relating to findings of fact or law as may be necessary to

support injunctive orders or judgments, except those findings specifically set forth herein.

III. PARTIES

3.1 As used in this document, the term "Defendants" shall include WILLIAM JOHN

LYNE, individually, and doing business as LEATHER DEPOT, LEATHER POINTE, and

COASTAL LEATHER, and any of their officers, directors, employees, agents, servants,

representatives, successors and assigns.

3.2 As used in this document, the terms "Plaintiff' and "Attorney General" shall mean the

Florida Department of Legal Affairs.

IV. INJUNCTIVE TERMS

4.1 Website

Defendants may only continue to operate its internet business through the website

www .leatherdepot.com until such time as all terms of this agreement, including consumer

restitution, have been completed in full. During the term of payment of consumer restitution and

fees and costs, Defendants agree that there are no additional websites operated by, or on behalf

of, Defendants and that Defendants will not initiate any new websites in the future for its internet

business. Defendants are also prohibited from operating any other internet business during the

duration of this agreement.

In the event of default as described in Paragraph 5.5 of this Consent Judgment,

Defendants stipulate to the permanent injunctive terms relating to their internet website

activities, as detailed in Paragraph 5.6 of this Consent Judgment.

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4.2 Special Orders

Defendants agree to no longer accept orders for special order furniture and will only

accept and place orders for quick-ship furniture through the following limited manufacturers or

as supplemented, subject to approval by the Attorney General: Leather Italia USA, Pasha Home

Fashions, Palatial Furniture, Mac Motion Chairs, Alphaville Design, Leather Living Furniture,

Coaster Company, Designer Seating, Homeline Furniture, Diamond Sofa, Wholesale Interiors,

Abbyson Living, Comfort Design Furniture, Luke Leather, Moroni USA, Soflex Furniture,

Benchmaster Furniture, and Gramercy Park Designs.

4.3 Website Disclosure

Defendants agree to modify website content on www.leatherdepot.com to publish the

complete list of manufacturing entities that it uses to order quick-ship furniture.

4.4 Credit and Debit Card Payments

Defendants state that they have discontinued the practice of accepting credit cards and

debit cards as a method of payment. Defendants agree to not accept credit or debit cards at any

time in the future.

4.5 Prepayments in Full and Order Placement

Defendants agree to not charge full payment in advance for any orders. Defendants shall

charge no more than wholesale cost plus actual shipping costs in advance for any orders.

Defendants shall place the order with the manufacturer within 3 business days of receipt of any

prepayment amount.

4.6 Order Status

Defendants shall keep the customer promptly updated, within 3 business days, of any

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backorders, delays, discontinued items, or any other situation leading to a delay in delivery of the

merchandise to the customer.

V. MONETARY PROVISIONS

5.1 Consumer Restitution Payments

Defendants shall pay Twenty Seven Thousand Three Hundred Fifty Three Dollars and

Thirty Cents ($27,353.30) as restitution to the Ten (10) affected consumers, payable to the

Florida Department of Legal Affairs Revolving Escrow Trust Fund, and shall be delivered to

Amy Sams, Office of the Attorney General, 1300 Riverplace Boulevard, Suite 405, Jacksonville,

Florida 32207, in accordance with the provisions of this paragraph:

a. Thirty-four payments of Five Hundred Dollars ($500.00) are due on or before the

first of each month from September 1, 2011 through June 1, 2014.

b. Ten Quarterly payments of One Thousand Dollars ($1,000.00) are due on or

before January 1, 2012, April 1, 2012, July 1, 2012, October 1, 2012, January 1,

2013, April 1, 2013, July 1, 2013, October 1, 2013, January 1, 2014, and April 1,

2014.

c. A final payment of Three Hundred Fifty Three Dollars and Thirty Cents

($353.30) is due on or before July 1, 2014.

d. Defendants shall have a ten (10) day grace period in which to make each

payment. Failure to make a payment on or before each due date or within the

grace period shall subject Defendants to the penalty provisions detailed in

Paragraph 5.6.

e. The Attorney General, or his designee, shall disburse restitution to affected

consumers in the order of complaints received.

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f. Any additional payments provided by Defendants will be subtracted from the total

balance owed, thus potentially reducing the term of repayment.

5.2 Consumer Restitution Previously Paid

Defendants have previously paid more than Forty Thousand Seven Hundred Ninety Five

Dollars ($40,795.00) in restitution to consumers.

5.3 Attorney's Fees and Investigative Costs

Defendants shall pay Five Thousand Dollars ($5,000.00), to the Attorney General,

pursuant to Section 501.2101, Florida Statutes, for attorney's fees and investigative costs. The

Attorney General agrees to suspend this payment provided that Defendants comply with the

terms of this Consent Judgment in full.

5 .4 Satisfaction of Monetary Obligations

Satisfaction of the monetary obligations in this Section V shall not relieve Defendants

from any other obligations under other provisions of this Consent Judgment.

5.5 Penalty Trigger Provision

Defendants will be deemed as failing to comply with these injunctive or monetary

provisions and will initiate the penalty provisions detailed below in Paragraph 5.6 if they:

a. Fail to make a restitution payment on or before the specified date or within the

10-day grace period, OR

b. The Office of the Attorney General receives Four (4) substantiated consumer

complaints during the term of the full restitution repayment. A copy of any

consumer complaint received after the execution of this Consent Judgment will be

forwarded to Defendants and counsel for Defendants in furtherance of providing a

reasonable opportunity for Defendants to resolve any complaint.

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(I) A consumer complaint shall be deemed a substantiated complaint if

investigation by the Attorney General reveals that it is unrelated to

ordinary consumer dissatisfaction with the quality of the product.

(2) Should there be additional substantiated consumer complaints against

Defendants, those consumers and the restitution owed shall be added to

the existing list of consumers. Any restitution owed to the new consumers

shall be due by the date of the final restitution payment as agreed to by

this ConsentJudgment, July 1, 2014.

(3) If the Attorney General receives four or more substantiated consumer

complaints against Defendants during the term of the full restitution

payment, those consumers and the restitution owed shall be added to the

existing list of consumers and included in the restitution component of the

Final Judgment described in Paragraph 5.6.

5.6 Penalty Provisions and Final Judgment

Should Defendants fail to meet the agreed-upon terms as described in Paragraph 5.5,

Plaintiff will notify Defendants' attorney of non-compliance and penalty provisions and prepare

a Final Judgment for immediate entry by the court with the following terms:

a. Within 24 hours of the execution of this Final Judgment, Defendants shall

suspend all business activity.

b. Defendants are hereby permanently enjoined from engaging in any activity within

the State of Florida, or, from outside the State of Florida where the customer is a

Florida business or resident, to the extent that those activities involve:

(1) The continuing business operations of Leather Depot, Leather Pointe,

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Coastal Leather, or any other internet-based leather furniture business;

(2) Acquiring any proprietary interest in any organization or company within

the State of Florida that is an internet-based leather furniture business;

(3) The sale of merchandise over the internet until the judgment levied against

the Defendants in subsection d of this paragraph is paid in full;

( 4) The acceptance of payments in advance of delivery of any merchandise;

and

(5) Forming a business or organizational identity as a method of avoiding the

terms and conditions of injunctive relief.

c. Defendants shall within 24 hours of the execution of this Final Judgment shut

down any and all websites owned and operated by Defendants including, but not

limited to, www.leatherdepot.com. Defendants agree that there are no additional

websites operated by, or on behalf of, Defendants and that Defendants will not

initiate any new websites in the future for its internet business.

d. The Parties agree that a judgment shall be issued against the Defendants, who

shall be jointly and severally liable, for the following monetary provisions:

(I) Consumer Restitution: The full remaining restitution amount plus any

restitution from additional consumer complaints;

(2) Civil Penalties: Civil penalties, pursuant to 501.2075, Florida Statutes, in

the amount of Twenty Five Thousand Dollars ($25,000.00); and

(3) Attorney's Fees and Costs: Plaintiffs attorneys' fees and investigative

costs, pursuant to Section 501.2101, Florida Statutes, which will include

the $5,000 referenced in Paragraph 5.3, plus any additional fees and costs

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associated with the enforcement of the penalty provision and Final

Judgment.

VI. RECORDS AND COMPLIANCE

6.1 Provision of Records

During a period of two years following the execution of this Consent Judgment,

Defendants agree to allow the Attorney General's Office access to their business records and

financial documents in order to monitor compliance with this agreement. During the monitoring

period, Defendants shall maintain and make available to the Attorney General, upon its written

request, all books, records and other documents relating in any way to the subject of this

agreement. Any such records requested by the Attorney General shall be made available for

inspection within twenty (20) business days. Defendants shall honor any request from the

Attorney General to make such records available without further legal process.

6.2 Financial Disclosure

Defendants shall provide the Plaintiff, upon request, any documentation that would assist

the Plaintiff in determining Defendants' compliance with the present Consent Judgment. By

agreeing to this Consent Judgment, Defendants authorize the Plaintiff to verify all information

provided on their financial disclosure forms with all appropriate third parties, including, but not

limited to, financial institutions and credit reporting agencies.

6.3 Florida Rule of Civil Procedure Form 1.977

Pursuant to the requirements of Florida Rule of Civil Procedure l.560(b) that the

Defendants shall complete, under oath, Florida Rule of Civil Procedure Form 1.977 (Fact

Information Sheet), including all required attachments, and serve it on the Plaintiffs attorney

within 45 days from the date of this final consent judgment, unless the final judgment is satisfied

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or post-judgment discovery is stayed. This Court retains jurisdiction to enter further orders that

are appropriate to compel Defendants to complete Form 1.977, including all required

attachments, and to serve it on Plaintiffs attorney.

6.4 Credit Report Authorization Form

The Parties agree that Defendants shall complete a new Credit Report Authorization and

Release Form provided by the Plaintiff and serve it on Plaintiffs attorney within 45 days from

the date of entry this Consent Judgment. This Court retains jurisdiction to enter further orders

that are appropriate to compel Defendants to complete and serve the aforesaid Credit

Authorization and Release Form. By executing said form, Defendant Lyne shall grant

authorization to the Economic Crimes Division, Office of the Attorney General of Florida, to

obtain a standard factual data credit report through the credit reporting agencies (i.e.,

EXPERIAN, EQUIFAX, and TRANSUNION). This authorization shall remain in effect until

such time that the full terms of any Consent Judgment(s) and/or Final Judgment(s) are fulfilled.

VII. GENERAL AND ADMINISTRATIVE PROVISIONS

7.1 Prior Assurance of Voluntary Compliance

On March 27, 2006, the parties executed an Assurance of Voluntary Compliance. The

permanent injunctive relief in this Consent Judgment supersedes the Assurance of Voluntary

Compliance.

7.2 Notice of Terms and Conditions

The Parties agree that the entry of this Consent Judgment in the docket by the Court shall

constitute notice to them of the terms and conditions of said Consent Judgment. It is further

agreed that facsimile copies of signatures may be accepted as original for purposes of

establishing the existence of the agreement by the parties to the terms of this Consent Judgment.

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However, the parties agree to cooperate and provide original signatures within a reasonable time

period for entry of this Consent Judgment with the court.

7 .3 Retained Jurisdiction of the Court

Jurisdiction is retained for the purpose of enabling any party to this Consent Judgment to

apply to the Court at any time for such further orders and directions as might be necessary or

appropriate for the modification, construction, or carrying out of the injunctive provisions of this

Consent Judgment, or for the enforcement of any provisions or potential contempt proceedings

arising from same. The parties by stipulation may agree to a modification of this Consent

Judgment, which agreement shall be presented to this Court for consideration, provided that the

parties may jointly agree to a modification only by a written instrument signed by or on behalf of

both the Attorney General and Defendants.

7.4 Future Actions

The Plaintiff may institute an action or proceeding to enforce the terms and provisions of

this Consent Judgment or take action based on future conduct by the Defendants. Defendants

further acknowledge that a violation of this Consent Judgment may be evidence of a violation of

state law.

7.5 Compliance With and Application of State Law

Nothing in this Consent Judgment will be construed to limit the authority of the Attorney

General to protect the interests of the State of Florida or the people of the State of Florida.

Accordingly, nothing herein relieves Defendants of their continuing duty to comply with

applicable laws of the State nor constitutes authorization by the State for Defendants to engage in

acts and practices prohibited by such laws. This Consent Judgment shall be governed by the

laws of the State of Florida.

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7.6 No Admission of Wrongdoing

This Consent Judgment shall not be construed as, or deemed to be evidence of, an

admission or concession on the part of Defendants of any liability or wrongdoing whatsoever,

which is hereby expressly denied and disclaimed by Defendants.

7.7 No Change to Substantive Rights

Nothing herein shall be construed to waive, modify or change any substantive rights of

other persons or entities against Defendants with respect to the acts and practices covered by this

Consent Judgment.

7.8 Representations and Warranties

Defendants represent and warrant that they ceased all of the business activity which

forms the basis for the Plaintiff's investigation and subject of this agreement. Defendants further

represent and warrant that they will implement the terms of this Consent Judgment in good faith

and will advise the State of any errors or omissions in the implementation discovered by them.

Defendants acknowledge the Plaintiff's reliance on the foregoing representations.

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CONSENT JUDGMENT

1. WILLIAM JOHN LYNE, individually, and doing business as LEATHER DEPOT,

LEATHER POINTE, and COASTAL LEATHER acknowledge that they have read the

foregoing Consent Judgment.

2. WILLIAM JOHN LYNE, individually, and doing business as LEATHER DEPOT,

LEATHER POINTE, and COASTAL LEATHER admit the jurisdiction of the Court and

agree to the entry of this Consent Judgment.

3. WILLIAM JOHN LYNE, individually and doing business as LEATHER DEPOT,

LEATHER POINTE, and COASTAL LEATHER state that no promise of any kind or

nature whatsoever (other than the written terms of this Consent Judgment) was made to

them to induce them to enter into this Consent Judgment, that they have entered into this

Consent Judgment voluntarily, and that this Consent Judgment constitutes the entire

agreement between the parties.

4. WILLIAM JOHN LYNE represents that he is the director or owner of LEATHER

DEPOT, COASTAL LEATHER, AND LEATHER POINTE, and that, as such, has been

authorized to enter into this Consent Judgment for and on behalf of all entities bound by

this Agreement.

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AGREED TO BY:

DEFENDANTS:

/!)JM· /fr~ t WILLIAM JOHN LYNE, Jnclivid~ doing business as LEATHER DEPOT, COASTAL LEATIIER, and LEATHER POINTE.

Date: 'K- /0- ~/L

G INSON Counsel for Defendant Florida Bar No. 776629 1301 Riverplace Blvd, Suite 1818 Jacksonville, Florida 32207

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PLAINTIFF:

PAMELA JO BONDI ATTORNEY GENERAL

~~~cJ__ KATIILEENCONNORSPIECHOWIAK. Assistant Attorney General FloridaBarNo. 51398 Office of the Attorney General 1300 Riverplace Blvd, Suite 405 Jacksonville, Florida 32207

Date: ~IAJ-t' ;)-:>--,:>'<>I I

Economic Crimes Division Office of the Attorney General Department of Legal Affairs

Date: --=B",~/.-=~;_i...?-1-/.=;;.._?o_/_/' __ f •

d f '2011. so ORDERED, this__ ay 0 ------ ORDER ENTERED

SEP 07 2011

/s/ Jack M. Schemer CIRCUIT JUDGE

Copies: . k Kathleen Connors Piechow1a Gary L. Wilkinson

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