Opposition Attys Fees Sgt Sarver v Nicolas Chartier

8/3/2019 Opposition Attys Fees Sgt Sarver v Nicolas Chartier

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28PLAITIFFS OPPOSITIO TO DEFEDATS MOTIOS FOR

ATTOREY FEES

ERIK L. JACKSON (State Bar No. 166010)COZEN & OCONNOR601 S. Figueroa Street, Suite 3700Los Angeles, California 90017Telephone: (213) 892-7961Fax: (866) [email protected]

TODD J. WEGLARZ (pro hac vice)Law Offices of Todd J. Weglarz, PLLC30903 Northwestern Highway, Suite 250Farmington Hills, Michigan 48334Telephone: (248) 539-9081Fax: (248) [email protected] for Plaintiff

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIASGT. JEFFREY S. SARVER,

Plaintiff,

v

THE HURT LOCKER, LLC, MARKBOAL, KATHRYN BIGELOW, GREGSHAPIRO, NICOLAS CHARTIER,TONY MARK, DONALL McCUSKER,SUMMIT ENTERTAINMENT, LLC,

VOLTAGE PICTURES, LLC,GROSVENOR PARK MEDIA, LP,FIRST LIGHT PRODUCTIONS, INC.,KINGSGATE FILMS, INC., andPLAYBOY ENTERPRISES, INC., Jointlyand Severally,

Defendants.

)))))))))))

))))))))

Case No.: 2:10-cv-09034-JHN(JCx)

PLAITIFFS OPPOSITIOTO DEFEDATS MOTIOSFOR ATTOREY FEES

Case 2:10-cv-09034-JHN -JC Document 141 Filed 11/21/11 Page 1 of 14 Page ID#:2033


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ATTOREY FEESi

Table of ContentsPage

I. INTRODUCTION ................................................................................................... 1

II. LAW & ARGUMENT ............................................................................................. 1

A. LAW .................................................................................................................. 1

B. ARGUMENT........................................................................................................ 2

1. Defendants Fail to Present Evidence Establishing Their RequestedHourly Rates Are the Prevailing Hourly Rate in this District .......................... 2

2. Defendants Requested Hours Are Excessive and Unreasonable ...................... 4

3. Reasonable Attorney Fees Ruling on a Recent, anti-SLAPP, HighProfile Case Involving Counsel Herein Should be Followed, AndIllustrate the excessiveness of Defendants' Fee Requests ................................ 6

4. Objections to Defendants' Itemized Billing Records ........................................ 7

5. All Hours Billed Regarding Plaintiff's Ex Parte Motion forAdditional Time to Respond to Defendants' anti-SLAPP Motion ................... 8

6. All Hours Billed Regarding Plaintiff's Supplemental Brief BasedUpon Authorities Presented to the Court During Oral Argument .................... 8

III. CONCLUSION ...................................................................................................... 11



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ATTOREY FEESii

TABLE OF AUTHORITIES

Page(s)

CASES

Christian Research Institute v. Alnor,

165 Cal. App. 4th 1315 (2008) ..................................................................................4, 5, 7

Fein v. Kesterson,2010 Lexis 128489 (C.D. Ca. 2010) ................................................................................4

Jackson v. Yarbray,179 Cal. App. 4th 75 (2009) ...........................................................................................1, 4

Kearney v. Foley and Lardner,553 F.Supp.2d 1178 (S.D. Cal. 2008)......................................................................1, 2, 3

Ketchum v. Moses,24 Cal. 4th 1122 (2001) ...............................................................................................4, 5, 7

McCown v. City of Fontana,550 F.3d 918 (9th Cir. 2009)..............................................................................................2

Platypus Wear, Inc. v. Goldberg,166 Cal. App. 4th 772 (2008) ............................................................................................1

Ravet v. Stern,2010 U.S. Dist. Lexis 7958 (2010) ...............................................................................2, 3

Serrano v.Unruh,32 Cal. 3d 621 (1982) ..........................................................................................................5

STATUTES

Cal. Civ. Proc. Code 423.16(c) .............................................................................................1

Cal. Civ. Proc. Code 423.16(c)(1) ........................................................................................1

OTHERAUTHORITIES

FRCP 12(b)(6) .........................................................................................................................6, 9



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28PLAITIFFS OPPOSITIO OT DEFEDATS MOTIOS FOR

ATTOREY FEES1

PLAITIFFS OPPOSITIO TO DEFEDATS

MOTIOS FOR ATTOREY FEES

I. ITRODUCTIOPursuant to the Court's Order Granting Plaintiff's Motion to Strike under the

Anti-SLAPP statute, Defendants have filed Motions for an Award of Attorneys Fees

under Cal. Civ. Proc. Code 423.16(c). For the reasons set forth below, Defendants

Motions should be denied or, in the alternative, the requested fees should be reduced

significantly.

II. LAW & ARGUMETA. LAWThough Cal. Civ. Proc. Code 423.16(c)(1) provides that a prevailing defendant

shall be entitled to recover his or her attorney's fees and costs, such an award is

subject to preconditions and limitations. California case law makes clear that "absent

circumstances rendering an award unjust, the fee should ordinarily include

compensation for all hours reasonably spent, including those relating solely to

[obtaining] the fee [award]."Kearney v. Foley and Lardner, 553 F.Supp.2d 1178,

1181-1182 (S.D. Cal. 2008) (quoting Serrano v.Unruh, 32 Cal. 3d 621, 624 (1982))

(emphasis added).

The recoverable attorney fees and costs are limited to only those hours

reasonably expended on the anti-SLAPP motion, and not the entire litigation. The

trial court is not constrained by the amount sought by the successful moving party.

Platypus Wear, Inc. v. Goldberg, 166 Cal. App. 4th 772, 784 (2008); Jackson v.

Yarbray, 179 Cal. App. 4th 75 (2009). A reasonable award of attorney fees under

Anti-SLAPP is determined by reference to the lodestar figure, which is the number of

hours reasonably expended multiplied by a reasonable hourly rate. A "reasonable

hourly rate" is the rate prevailing in the community for similar work. Kearney v.

Foley and Lardner, 553 F. Supp. 2d 1178, 1185 (S.D. Cal. 2008).



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ATTOREY FEES2

The amount of fees to be awarded are within the complete discretion of the

court:

"The reasonableness of attorney fees is within the discretion of the trialcourt, to be determined from a consideration of such factors as the natureof the litigation, the complexity of the issues, the experience andexpertise of counsel and the amount of time involved. [Citation omitted.]The Court must have "substantial evidence" to support the fee award.[Citations omitted]. The party petitioning for attorneys' fees necessarily

bears the burden of persuasion on the elements of that claim. [Citationomitted]. An attorney fee award should be reduced if claimed hours are"excessive, redundant, or otherwise unnecessary," [quoting from Hensleyv. Eckerhart, 461 U.S. 424, 434,103 S. Ct. 1933, 76 L. Ed. 2d 40 (1983)].Reasonableness depends in part on "the success of the attorney's efforts."[Citation omitted].

Kearney v. Foley and Lardner, 553 F. Supp. 2d 1178, 1185 (S.D. Cal. 2008).

When awarding reasonable attorney fees, the ninth circuit requires a specific

explanation as to why certain fees were awarded, reduced, or rejected:

"Once the district court completes its analysis of the final lodestaramount, it must explain how it arrived at its determination with sufficientspecificity to permit an appellate court to determine whether the districtcourt abused its discretion in the way the analysis was undertaken."

McCown v. City of Fontana, 550 F.3d 918, 922 (9th Cir. 2009).

B. ARGUMET1. Defendants Fail to Present Evidence Establishing Their

Requested Hourly Rates Are the Prevailing Hourly Rate in thisDistrict

To determine the reasonable hourly rate, the Court looks to the rate prevailing

in the community for similar work performed by attorneys of comparable skill,

experience, and reputation. Ravet v. Stern, case no 09- Civ-5575, 2010 U.S. Dist.

Lexis 7958, *5 (February 1, 2010, S.D.N.Y.) According toRavet, in this case, the

relevant community is the Central District of California because it is "the forum in



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ATTOREY FEES3

which the district court sits." Id. at 5-6.1 The burden is on the party requesting

attorneys' fees to "produce satisfactory evidence."Id., at 6 (quotingBlum v. Stenson,

465 U.S. 886, 895 n.11 (1984)). Evidence that the Court should consider includes

"[a]ffidavits of the [movant's] attorney and other attorneys regarding prevailing fees

in the community, and rate determinations in other cases, particularly those setting a

rate for the [movant's] attorney."Id., (quoting United Steelworkers of Am. v. Phelps

Dodge Corp., 896 F.2d 403, 407 (9th Cir. 1990)). InKearny, the federal district court

denied a prevailing anti-SLAPP Defendant's Motion for attorney fees in its entirety

(without prejudice) when the hourly rate upon which the motion was based was only

presented with the movant attorney's declaration. Kearny, 553 F. Supp. 2d at 1186-

87.

Here, Defendants' attorneys request an hourly rate of $450.00 on most of the

hours submitted. In support of these rates, Defendants only offer the Declarations of

the movant attorneys, all of which represent that they billed at the rate of $450/hour,

and conclude that this rate represents the Los Angeles market rate. [Doc 132-1, 133-

1, & 134-1]. Aside from the movant attorneys' declarations, Defendants fail to submit

any evidence establishing the prevailing hourly attorney rate for attorneys performingsimilar work in the Central District of California. Because Defendants failed to satisfy

carry their burden of proof in establishing the prevailing market rate for the Central

District, this court should deny Defendants' Motions.2

Furthermore, evidence shows that Defendants' requested hourly rate of $450.00

is above the prevailing hourly rate for attorneys. Studies show that the average billing

rate for California firms is just above $300/hour. [Decl TJW, Doc 135-1]. Consistent

with this average California billing rate is a recent California Superior Court ruling on

1 Citing Camacho v. Bridgeport Fin., Inc., F.3d 973, 979 (9th Cir 2008) (quotingBarjon v. Dalton, 132 F.3d 496, 502 (9th

Cir. 1997).2 Defendants likewise fail to satisfy their burden of proof in establishing the prevailing market rate for attorney Wu, an

attorney with just 12-18 months experience at the time of her billings (billed at $375/hour, Doc 134-1).



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ATTOREY FEES4

a high profile, Anti-SLAPP ruling, awarding some of the same attorneys herein an

hourly rate of $300/hour.3 [Decl TJW, Doc 135-1]. Similarly, in Christian Research

Institute v. Alnor, 165 Cal. App. 4th 1315 (2008), the California Court of Appeals

determined that an attorney hourly rate of $300 was reasonable for an prevailing anti-

SLAPP Defendant. Id., at 1324. And inFein v. Kesterson, Case No. 10-cv-02048,

2010 Lexis 128489 (C.D. Cal., Nov. 23 2010), the district court ruled that $350/hour

was a reasonable hourly rate for a seasoned Los Angeles attorney specializing in

Anti-SLAPP and defamation law, who also taught law school courses at Pepperdine

Law School.

Because Defendants failed to present evidence satisfying their burden of proof

that their requested hourly rates represent the prevailing hourly rate in this district,

Defendants' Motions should be denied. In the alternative, at the very least, this court

should reduce the hourly rates as follows:

Attorney Kinsella and Attorney Reynolds - $300/hour

Attorney Halberstadter - $300/hour

Attorney Gorry and Attorney Hill - $300/hour

Attorney Joseph - $200/hour

2. Defendants Requested Hours Are Excessive and UnreasonableCollectively, Defendants request the Court to enter a judgment against Plaintiff

in the exorbitant amount of $220,000. Defendants attach a host of itemized billing

records to support these attorney fees and costs. However, as explained above, the

court is not constrained by the amount sought by the successful moving party, and the

prevailing party is entitled only to a reasonable award, based upon the reasonable

time expended on the actual anti-SLAPP motion, not the entire litigation. See

3 On May 11, 2011, in the case ofThe Revenue Resource Group v. Dash Dolls(The Kardashians), SuperiorCourt Case No. 11CECG00058, California Superior Court Judge Jeffrey Hamilton granted Defendants Anti-SLAPP Motion, dismissing Plaintiffs 62 page, nine count Complaint, and awarded Defendants attorney fees in the total

amount of $6,825.00, based in part upon an hourly rate of $300 for attorney Jeremiah Reynolds (who is counsel for

Defendants Boal / Bigelow herein). [Decl. TJW, Doc 135-1].



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ATTOREY FEES5

Jackson, 179 Cal. App. 4th 75; Christian Research, 165 Cal. App. 4th at 870, and

Ketchum v. Moses, 24 Cal. 4th 1122, 1133 (2001).

The prevailing Defendants seeking fees and costs have the burden of

establishing entitlement to an award and documenting the appropriate hours expended

The court may require a defendant to produce records sufficient to provide a proper

basis for determining how much time was spent on particular claims. The court also

may properly reduce compensation on account of any failure to maintain appropriate

time records. Christian Research, 165 Cal. App. 4th at 870.

"Padded" fees, in the form of inefficient or duplicative efforts, are not subject to

compensation. Id. at 871. "To the extent a trial court is concerned that a particular

award is excessive, it has broad discretion to adjust the fee downward or deny an

unreasonable fee altogether." Ketchum, 24 Cal. 4th at 1138. "A fee request that

appears unreasonably inflated is a special circumstance permitting the trial court to

reduce the award or deny one altogether." Christian Research, 165 Cal. App. 4th at

871 (quoting Serrano v. Unruh, 32 Cal. 3d 621, 635 (1982). The Serrano court has

authorized the denial of a fee request in its entirety on the ground of an unreasonable

request and inadequate documentation. Serrano, 32 Cal.3d at 635, n. 21.In Christian Research Institute, the trial court acted within its discretion in

awarding attorney fees to a prevailing anti-SLAPP defendant by reducing the number

of compensable hours from over 600 hours, as requested by defendant, to 71

(Defendant requested $250,000 in fees; the court reduced to $21,300) , where defense

counsel's billing entries were vague and block billed,4 and included many time entries

devoted to matters other than the motion to strike. Id. The Christian Research panel

justified this reduction based upon the lack of credibility of the submitted time entries:

4 Generally, block billing can "obscure [] the nature of some of the work claimed" and "exacerbate [ ] the vagueness of

counsel's fee request." Christian Research, 165 Cal. App. 4th at 874. Because "block billing makes it more difficult to

determine how much time was spent on particular activities," the Ninth Circuit has held that it will not "quarrel with the

district court's authority to reduce hours that are billed in block format." Welch v.Metropolitan Life Ins. Co., 480 F.3d

942, 948 (9th Cir.2007)



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ATTOREY FEES6

"The fee request included, for example, billings for obtaining the docketat the inception of the case, obtaining unspecified but "numerous courtdocuments," and attending the trial court's mandatory case managementconference - all of which would have been incurred whether or not[Defendant] filed the motion to strike."

Id. at 1325.For the reasons more fully explained below, Defendants fee requests are

excessive and unreasonable, and should be denied outright, or significantly reduced.

3. Reasonable Attorney Fees Ruling on a Recent, anti-SLAPP,High Profile Case Involving Counsel Herein Should beFollowed, And Illustrate the excessiveness of Defendants' FeeRequests

Defendant Boal's / Bigelow's counsel, Mr. Reynolds and the Kinsella law firm,

recently received an anti-SLAPP attorney fees award of $6,825.00 while representingthe Kardashians in the case ofThe Revenue Resource Group v. Dash Dolls, Superior

Court Case No. 11CECG00058. In Dash Dolls, Plaintiff debit card company filed a

sixty-two (62) page, nine (9) count breach of contract action against the Kardashians.

Defendants moved to strike under anti-SLAPP, and on May 21, 2011, California

Superior Court Judge Jeffrey Hamilton granted Defendants' Anti-SLAPP Motion and

awarded said attorney fees award, after reducing the requested hourly attorney rate

from $595 and $450 to $350 and $300 respectively. [Decl TJW, Doc 135-1].

There is no reason why the case at bar could not have been handled

accordingly. The herein case did not involve any discovery, and was dismissed before

a single defendant filed an Answer to Plaintiff's Complaint. The case at bar involved

a shorter Complaint - twenty-six (26) pages (plus the Playboy article) and seven

counts. Plaintiff submits the total attorney fees awarded in the Kardashian case should

applied to the case at bar. Though Defendants claim they expended numerous hours

preparing the anti-SLAPP motion, they also made very similar arguments in their

FRCP 12(b)(6) Motions to Dismiss while this case was pending in New Jersey. In

those Motions - the fees for which are not recoverable under CCP 425.16(c)(1) -



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ATTOREY FEES7

Defendants asserted many of the arguments which were later set forth in their anti-

SLAPP Motions.5

Furthermore, a review of Defendants' billings show that a considerable amount

of time involved attorneys performing work and tasks which overlapped and was

redundant of other attorneys' work. Though there were three separate law firms

representing separate group of Defendants (Boal/ Bigelow, Summit, and The Hurt

Locker Defendants), all firms and attorneys were hired by, and reported to, a single

insurance company. Under these circumstances, an award consistent with the

Kardashian case is appropriate.

4. Objections to Defendants' Itemized Billing RecordsDefendants' Itemized Billing Records vary significantly when compared to the

work performed, and therefore lack credibility, warranting dismissal underKetchum

and Christian Research, supra. For example, though Defendant Summit and THL

Defendants collaborated together in the drafting of a single anti-SLAPP motion so as

to allegedly avoid the duplication of efforts and fees, those Defendants are claiming a

total of366.4attorney hours, whereas counsel for Defendants Boal / Bigelow, while

drafting their own, but very similar, motion to strike, are claiming only 96.60 attorneyhours. Boal / Bigelow even involved the drafting of a somewhat length Declaration

form Defendant Boal. There is no reasonable explanation for the huge discrepancy in

the number of hours allegedly incurred in the drafting of similar motions.

The credibility of Defendants' fee requests are further undermined when

considering that at the time of filing Defendants' anti-SLAPP motions, Defendant

summit was only claiming $25,000 plus in fees, plus an estimated $12,400 for the

remainder of the proceedings in their entirety (including review of opposition, drafting

5 Defendants even conceded in their federal motions to dismiss that it appears that New Jersey law applicable to the

claims that Plaintiff has alleged is not materially different from California law. Therefore, much of work product which

went into the later drafting of the anti-SLAPP motions was already done by virtue of Defendants having drafted and filed

the federal motions to Dismiss in New Jersey. See Doc 01, Doc 25, Def Summit Brief In Support, p. 18, fn 4.



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ATTOREY FEES8

a reply, and attending the hearing; based upon the excess hourly rate of $450/hour for

Halberstadter and $395/hour for 1st year attorney Wu). Doc 82, pp. 19-20. Defendant

Summit is now claiming almost twice this amount.

Similarly, in their anti-SLAPP motion, THL Defendants claimed an

award of attorney fees in the amount of $19,155 (apparently billed at the excess

hourly rate of $450). Doc 78, p 32. Now, THL Defendants are claiming an amount

nearly 5 times greater than initially requested.

Because the credibility of Defendants' documented fee requests are undermined

(as explained above and further explained below), the court should dismiss

Defendants' Motions or significantly reduce Defendants attorney fees award. More

specific objections to Defendants' billings are addressed below.

5. All Hours Billed Regarding Plaintiff's Ex Parte Motion forAdditional Time to Respond to Defendants' anti-SLAPPMotion

All Defendants have requested fees incurred for addressing Plaintiff's Ex Parte

Motion for Continuation of this Court's initial Hearing date on Defendant's Motion to

Strike. The court will recall Defendants refused to stipulate to Plaintiff's request to

adjourn the hearing date for 28 days, from March to April 2011 (Plaintiff was stillactively deployed in Afghanistan at the time). The court granted Plaintiff's Motion.

Because Defendants did not prevail, they should not be able to recover their fees

associated with forcing Plaintiff to file the Ex Parte Motion.

6. All Hours Billed Regarding Plaintiff's Supplemental BriefBased Upon Authorities Presented to the Court During OralArgument

Plaintiff objects to Defendants' Billings regarding review of Plaintiff's

Supplemental Motion based upon the new authorities Defendants presented to the

court during oral argument held on August 8, 2011. Because Defendant's newly

raised authorities presented Plaintiff's counsel from adequately responding to same

during oral argument, Plaintiff filed the supplemental brief. Defendants should not be



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ATTOREY FEES9

permitted to further bill Plaintiff when it was their own dilatory conduct which

necessitated Plaintiff's filings. Same argument applies to billings incurred in

responding to Plaintiff's Supplemental Brief, and reviewing Plaintiff's second

supplemental brief.

Defendant Summit's Hourso Summit requests 96.60 attorney hours. Summit admittedly only filed a 2

page Joinder and a 5 page accompanying Memorandum to THLDefendants' anti-SLAPP motion (Doc 82), followed by a 6 page Reply toPlaintiff's Opposition.

o A significant number of Summit's' billing entries are partially redacted,such that it is impossible for Plaintiff's counsel to determine whether thetime entered for said entry was devoted entirely to Anti-SLAPP work orwhether the time was also attributed to the "redacted" event. Plaintiffobjects to these incomplete, block-billed / redacted billings (ie,12-07-10,12-22-10, 12-28-10, 01-05-11, 01-21-11, 01-28-11, 02-10-11, 03-01-11,03-02-11, 03-03-11, 03-15-11, 03-16-11, 03-17-11, 03-28-11, 03-30-11,08-05-11, ). Specific objections in addition to the objection herein are asfollows:

o 12-07-10 2.0 Hrs (DH) for Conf Call & .60 Hrs (Wu) to Attend Mtg reAnti-SLAPP Mtn [(1) Vague, Block Billing; (2) this event is not evenidentified on Def Boal's billings; (3) the conference call / meeting was todiscuss the preparation for the Rule 26(f) Report, which is not anti-SLAPP work; see Def THL Billings, 12-07-10, Doc 133-2, p25; (4)

billings are duplicative in that it is unreasonable for Summit to bill fortwo attorneys attending same meeting / conference]

o 12-22-10 2.80 Hrs for review of Anti-SLAPP matters (the individualdescriptions suggest the total time was only 1.7 hrs)

o 12-27-10 .5 Hrs for emails to & from T Gorry re Anti-SLAPP[Gorry's / THL's Itemizations make no such reference to this event]

Defendant THL's Hourso THL Defendants request 225 attorney hours. THL filed a 25 page anti-

SLAPP motion (half of half of which included substantive argumentssimilar to those made in Defendant Summit's Rule 12(b)(6) Motion toDismiss. THL Defendants also filed a 31 page Reply.

o A significant number of THL's billing entries are partially redacted, suchthat it is impossible for Plaintiff's counsel to determine whether the timeentered for said entry was devoted entirely to Anti-SLAPP work orwhether the time was also attributed to the "redacted" event. Plaintiff



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ATTOREY FEES10

objects to these incomplete, block-billed / redacted billings (ie, 11-30-10,12-02-10, 12-03-10, 12-06-10, 12-07-10, 12-08-10, 12-10-10, 12-13-10,12-14-10, 12-15-10, 01-03-11, 01-13-11, 01-20-11, 01-24-11, 01-27-11,02-09-11, 02-10-11, 02-11-11, 02-14-11, 03-03-11, 03-11-11, 03-17-11,03-31-11). Specific objections in addition to the objection herein are asfollows:

o 11-29-10 2.80 Hrs (JL) re draft motion to dismiss [event is not anti-SLAPP work(see entry for 12-02-10 & 12-07-10, where "motion todismiss" is distinguished from "anti-SLAPP motion (motion to strike)")

o 11-30-10 2.0 Hrs (JJ) for conference re choice of law issues; tel confwith Summit counsel re strategy for responsive pleading for CD Cal &review prelim orders of dist ct [(1)events are not identified on Summit'sbillings; (2) events do not deal with the Anti-SLAPP Mtn]

o 12-02-10 1.0 Hrs (JL) for draft motion to dismiss and review legalauthorities supporting same and potential anti-SLAPP motion [(1) Vague,

Block Billing; (2) event as it relates to motion to dismiss is not anti-SLAPP work]

o 12-07-10 2.50 Hrs (JJ) for review draft mtn strike, Conf Call w/defense counsel re strategy with prep of 26(f) report, motion to strike,and motion to dismiss [(1) Vague, Block Billing(2) this event is notidentified on Def Boal's billings; (3) the conference call / meeting was todiscuss the preparation for the Rule 26(f) Report and motion to dismiss,which would have been incurred separate and apart from the Anti-SLAPP Motion (motion to strike)].

o 12-15-10 1.80 Hrs (JL) for correspondence re anti-SLAPP motion andrule 26 report (including corr to and from Summit / Halberstadter[(1)Vague, Block Billing; (2) event as it relates to rule 26 report is notanti-SLAPP work; (3) Summit's Itemizations make no such reference tothis event]

o 12-28-10 3.0 Hrs (JL) for correspondence concerning conflict of lawsstatutes and rules [event is not anti-SLAPP work]

o 12-29-10 3.0 Hrs (JJ) for review of authorities concerning conflicts oflaws [event is not anti-SLAPP work]

o 01-03-11 6.30 Hrs (JL) to review Wu correspondence and review andrevise Anti-SLAPP motion; draft motion to dismiss, review legalauthorities supporting same [(1)Vague, Block Billing; (2) event as itrelates to motion to dismiss is not anti-SLAPP work].

o 01-03-11 3.10 Hrs (TG) to review Wu comments and review andcheck anti-SLAPP motion [redundant and duplicative of above entry byatty JL]



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DECLARATION OF TODD J. WEGLARZ IN SUPPORT OFOPPOSITION TO DEFENDANTS MOTIONS FOR ATTORNEY FEES

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ERIK L. JACKSON (State Bar No. 166010)COZEN & OCONNOR601 S. Figueroa Street, Suite 3700Cozen OConnorLos Angeles, California 90017Telephone: (213) 892-7961Fax: (866) [email protected]

TODD J. WEGLARZ (pro hac vice)Law Offices of Todd J. Weglarz, PLLC30903 Northwestern Highway, Suite 250Farmington Hills, Michigan 48334Telephone: (248) 539-9081

Fax: (248) [email protected] for Plaintiff

UNITED STATES DISTRICT COURTCENTRAL DISTRICT OF CALIFORNIA

SGT. JEFFREY S. SARVER,

Plaintiff,

vTHE HURT LOCKER, LLC, MARKBOAL, KATHRYN BIGELOW, GREGSHAPIRO, NICOLAS CHARTIER,TONY MARK, DONALL McCUSKER,SUMMIT ENTERTAINMENT, LLC,VOLTAGE PICTURES, LLC,GROSVENOR PARK MEDIA, LP,FIRST LIGHT PRODUCTIONS, INC.,KINGSGATE FILMS, INC., andPLAYBOY ENTERPRISES, INC., Jointlyand Severally,

Defendants.________________________________________

))))

)))))))))))))

)))))

Case No.: 2:10-cv-09034-JHN(JCx)

DECLARATION OF TODD J.

WEGLARZ IN SUPPORT OFOPPOSITION TODEFENDANTS MOTIONSFOR ATTORNEY FEES

Case 2:10-cv-09034-JHN -JC Document 141-1 Filed 11/21/11 Page 1 of 3 Page ID#:2047


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DECLARATION OF TODD J. WEGLARZ

I, TODD J. WEGLARZ, declare:

1. I am an attorney at law duly licensed to practice law in the State ofMichigan and have been admittedpro hac vice before this Court. I am owner of the

law firm of Law Offices of Todd J. Weglarz, PLLC, which is the counsel of record

for Plaintiff Sgt. Jeffrey S. Sarver in this action. I have personal knowledge of the

matters stated below and if called on to testify I could and would testify competently

thereto.

2. Attached as Exhibit A is a true and correct copy of the State Bar ofCalifornias information page for attorney Wu, showing admission to the state bar onDecember 1, 2009.

3. Attached as Exhibit B is a true and correct copy of an article regardingthe 2009 attorney billing surveys conducted Incisive Legal, published by

calattorneyfees.com, 02-13-2011.

4. Attached as Exhibit C is a true and correct copy of theRevenue ResourcGroup v. Dash Dolls Complaint, filed in California Superior Court, County of Fresno

Case No. 11CECG00058.

//

//

//

//

//

//

//

//

//



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5. Attached as Exhibit D is a true and correct copy of the CaliforniaSuperior Courts May 2011 Tentative Ruling issued by Judge Jeffrey Hamilton in th

matter ofRevenue Resource Group v. Dash Dolls, granting Defendants Anti-SLAPP

Motion and awarding Defendants attorney fees in the total amount of $6,825.00,

based in part upon an hourly rate of $300 for attorney Jeremiah Reynolds (who is

counsel for Defendants Boal/Bigelow herein).

I declare under penalty of perjury under the laws of the United States that the

foregoing is true and correct.

Executed on November 21, 2011, at Farmington Hills, Michigan.

_-/S/-________________Todd J. Weglarz



18/86

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FORNIA ATTORNEY'S FEES : Reasonableness Of Fees: Two Recent Incisive Legal Intelligence Studies Show Average Billing Rates For Small And Mid-Sized Firms And I

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In The News . . . . Different Corporate Clients May Get Different Rates For Same TypeOf Work, Study Suggests, And Canada Supreme Court Chief Justice Worried ThatAttorney Hourly Rates May Shut Out The Middle Class | Main | In The News . . . .

Adventure Writer Clive Cussler Must Be Breathing Easier February 13, 2011

Reasonableness Of Fees: Two Recent

Incisive Legal Intelligence Studies Show

Average Billing Rates For Small And Mid-

Sized Firms And Internal Costs For In-

House Counsel Departments

Incisive Legal Intelligence has two fairly recent surveys

that may be of interest to those of you who follow our blog

with respect to national attorney hourly rates and in-housecounsel costs. Here you go.

2009 Billings Rates and Practice Survey for Small and Mid-Sized

Firms.

In its 2009 study on billing rates and practices in smalland mid-sized firms, Incisive Legal Intelligence has talliedsome interesting findings from a sample size of 255nationwide firms with the largest group having an averageof 21-40 lawyers.

This is what they found:

*The majority of firms bill by the hour, regardless offirm size.

*The average billing rate, nationwide, is $284 perhour.

*Firms with 2-8 lawyers have an average hourlybilling rate of $262, firms with 76-150 lawyers increase to$295 per hour, and firms with over 150 lawyers have anaverage billable rate of $333.

*The average billing rate also increases with alawyers number of years in practice, with lawyers in or

near major metropolitan areas commanding much higherfees than the averages.

*By region, average hourly rates break out this way:Northeast -- $319; West -- $296; South -- $276; andMidwest -- $264.

*The Pacific division (California, Oregon,Washington, Hawaii, and Arizona) has higher billing rateswith an average hourly billing rate of $319.

*The practice areas with the highest hourly billingrates are Plaintiffs Contingency Litigation ($413), followed

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FORNIA ATTORNEY'S FEES : Reasonableness Of Fees: Two Recent Incisive Legal Intelligence Studies Show Average Billing Rates For Small And Mid-Sized Firms And I

//www.calattorneysfees.com/...leness-of-fees-two-recent-incisive-legal-intelligence-studies-show-average-billing-rates-for-small-and-mid-sized-fir.html[11/20/2011 1:16

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by Labor/Employment ($302), General Law ($296), andReal Estate/Land Use ($294).

*A client can be expect to be charged hourly ratesfor paralegals and other support staff.

2008 Study on In-House.

In a 2008 Law Department Metrics BenchmarkingSurvey of 111 companies, Incisive Legal Intelligence

reports that the median internal cost of operating an in-house law department at a large company grew to $381,618per lawyer, a 10% increase over the previous survey year.Median externalexpenditures for large companies were upsignificantly, from $616,519 to $705,270 per lawyer.Corporate law departments participating in the study spentthe highest percentage of outside counsel fees on litigation(37%), followed by intellectual property (15%) and thenmergers and acquisitions (12%).

What are the primary criteria for selecting outsidecounsel? Answers in order of priority: firm specialization;responsiveness; and cost. For those companies evaluatingoutside counsel, here the the three top evaluation criteria:results; knowledge/experience; cost.

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22/86

A Y A L A . L L P 9 3 7 0 4

C H R I S T O P H E R R U D D . S B N : 1 3 0 7 1 3 N A T H A N M I L L E R . S B N : 2 4 0 2 7 8 M A R Y C A S T R O - A Y A L A . S B N : 2 4 2 2 6 7 M I L L E R & A Y A L A , L L I > 1 9 1 W . S h a w A v e n u e , S u i t e 1 0 2 F r e s n o , C a l i f o r n i a 9 3 7 0 4 T e l e p h o n e : ( 5 5 9 ) 2 2 2 - 6 6 2 2 F a c s i m i l e : ( 5 5 9 ) 2 2 2 - 6 6 2 6 A t t o r n e y s f o r P l a i n t i f f : T H E R E V E N U E R E S O U R C E G R O U P , L L C

I N C S T A M P O N L Y )

J A N 2 0 1 1 F R E S N O C O U N T Y S U P E R I O R

L E - D E B J i V

S U P E R I O R C O U R T T H E S T A T E C A L I F O R N I A C O U N T Y O F F R E S N O

0 0 0 T H E R E V E N U E R E S O U R C E G R O U P , C a l i f o r n i a l i m i t e d l i a b i l i t y c o m p a n y , d b a M O B I L E R E S O U R C E C A R D ,

P l a i n t i f f .

C a s e N o : V E R I F I E D C O M P L A I N T F O R :

D A S H D O L L S , C a l i f o r n i a l i m i t e d l i a b i l i t y c o m p a n y . K I M B E R L Y K A R D A S H I A N . i n d i v i d u a l . K H L O E K A R D A S H I A N - O D O M

i n d i v i d u a l . K O U R T N E Y K A R D A S H I A N i n d i v i d u a l . K R I S K A R D A S H I A N a k a

K R I S K A R D A S H I A N - J E N N E R a k a K R I S J E N N E R . i n d i v i d u a l , a n d D o e s 1 - 5 0 i n c l u s i v e .

D e f e n d a n t s .

B R E A C H C O N T R A C T ( C e l e b r i t y E n d o r s e m e n t A g r e e m e n t ) ;B R E A C H C O N T R A C T ( L a u n c h A g r e e m e n t ) ; B R E A C H G O O D F A I T H A N D F A I R D E A L I N G ; N E G L I G E N T M I S R E P R E S E N T A T I O N ( C e l e b r i t y E n d o r s e m e n t A g r e e m e n t ) :N E G L I G E N T M I S R E P R E S E N T A T I O N ( L a u n c h A g r e e m e n t ) ; N E G L I G E N T I N T E R F E R E N C E W I T H P R O S P E C T I V E E C O N O M I C A D V A N T A G E ; U N J U S T E N R I C H M E N T : C O N S T R U C T I V E T R U S T ; A C C O U N T I N G

V E R I F I E D C O M P L A I N T 1 - O R D A M A G E S

Exhibit C



23/86

A Y A L A . I . L P S h a w A v e . , # 1 0 2

9 3 7 0 4 2 2 - 6 6 2 2

G E N E R A L A L L E G A T I O N S P L A I N T I F F , T H E R E V E N U E R E S O U R C E G R O U P , L L C , d o i n g b u s i n e s s

M O B I L E R E S O U R C E C A R D ( h e r e i n a f t e r " R R G " ) a l l e g e s a g a i n s t c o r p o r a t e d e f e n d a n t ,D A S H D O L L S , L L C ( h e r e i n a f t e r " D A S H " ) a n d i n d i v i d u a l d e f e n d a n t s , K I M B E R L YK A R D A S H I A N ( h e r e i n a f t e r " K I M K A R D A S H I A N " ) , K H L O E K A R D A S H I A NK A R D A S H I A N - O D O M ( h e r e i n a f t e r " K H L O E K A R D A S H I A N " ) , K O U R T N E YK A R D A S H I A N ( K I M K A R D A S H I A N , K H L O E K A R D A S H I A N , a n d K O U R T N E YK A R D A S H I A N c o l l e c t i v e l y r e f e r r e d h e r e i n a f t e r t h e " K A R D A S H I A N S " ) a n d K R I SK A R D A S H I A N a k a K R I S K A R D A S H I A N - J E N N E R a k a K R I S J E N N E R ( h e r e i n a f t e r " K R I SJ E N N E R " ) ( a l l d e f e n d a n t s c o l l e c t i v e l y r e f e r r e d h e r e i n a f t e r " D E F E N D A N T S " ) f o l l o w s :

R R G C a l i f o r n i a l i m i t e d l i a b i l i t y c o m p a n y a n d a l l t i m e s r e l e v a n t a n dm e n t i o n e d h e r e i n , w a s C a l i f o r n i a l i m i t e d l i a b i l i t y c o m p a n y g o o d s t a n d i n g w i t h i t s p r i n c i p a lp l a c e b u s i n e s s F r e s n o , C a l i f o r n i a .

R R G e n g a g e d s o l e l y t h e b u s i n e s s m a n u f a c t u r i n g , d i s t r i b u t i n g a n ds e l l i n g c u s t o m i z e d p r e p a i d d e b i t c a r d p r o g r a m c o n s u m e r s .

R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t D A S H i s , a n d a l lt i m e s r e l e v a n t a n d m e n t i o n e d h e r e i n , w a s C a l i f o r n i a l i m i t e d l i a b i l i t y c o m p a n y w i t h i t s p r i n c i p a lp l a c e b u s i n e s s L o s A n g e l e s , C a l i f o r n i a .

R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t K I MK A R D A S H I A N a n d a l l t i m e s r e l e v a n t a n d m e n t i o n e d h e r e i n , w a s i n d i v i d u a l r e s i d i n g L o s A n g e l e s C o u n t y , C a l i f o r n i a .

R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t K H L O E K A R D A S H I A N a n d a l l t i m e s r e l e v a n t a n d m e n t i o n e d h e r e i n , w a s i n d i v i d u a l r e s i d i n g L o s A n g e l e s C o u n t y , C a l i f o r n i a .

R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t K O U R T N E Y K A R D A S H I A N a n d a l l t i m e s r e l e v a n t a n d m e n t i o n e d h e r e i n , w a s i n d i v i d u a l r e s i d i n g L o s A n g e l e s C o u n t y , C a l i f o r n i a .

V E R I F I E D C O M P L A I N T F O R D A M A G E S

Exhibit C



24/86

A Y A L A . L L P S h a w A v e . . # 1 0 2

9 3 7 0 4

R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t K R I S J E N N E R a n d a l l t i m e s r e l e v a n t a n d m e n t i o n e d h e r e i n , w a s i n d i v i d u a l r e s i d i n g L o s A n g e l e s C o u n t y ,C a l i f o r n i a .

R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t K R I S J E N N E R a n d a l l t i m e s r e l e v a n t a n d m e n t i o n e d h e r e i n , w a s t h e m a n a g e r o f t h e K A R D A S H I A N S , a n d h a dt h e a u t h o r i t y e n t e r i n t o n e g o t i a t i o n s f o r a n d b i n d t h e K A R D A S H I A N S a g r e e m e n t s w i t h t h i r d -p a r t i e s s u c h R R G .

R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t t h eK A R D A S H I A N S c r e a t e d D A S H s o l e l y f o r t h e p u r p o s e p r o t e c t i n g t h e m s e l v e s f r o m i n d i v i d u a ll i a b i l i t y .

1 0 . T h e r e e x i s t s , a n d a l l t i m e s m e n t i o n e d h e r e i n e x i s t e d , a u n i t y i n t e r e s t a n do w n e r s h i p b e t w e e n t h e K A R D A S H I A N S a n d D A S H , s u c h t h a t a n y i n d i v i d u a l i t y a n d s e p a r a t e n e s sb e t w e e n t h e K A R D A S H I A N S a n d D A S H h a v e c e a s e d a n d D A S H t h e a l t e r e g o o f t h eK A R D A S H I A N S t h a t t h e K A R D A S H I A N S c o n t r o l l e d , d o m i n a t e d , m a n a g e d , a n d o p e r a t e d D A S Hs u i t t h e i r o w n c o n v e n i e n c e s .

1 1 . R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t a d h e r e n c e t h ef i c t i o n t h e s e p a r a t e e x i s t e n c e D A S H e n t i t y s e p a r a t e a n d d i s t i n c t f r o m t h e K A R D A S H I A N S w o u l d p e r m i t a b u s e t h e c o r p o r a t e p r i v i l e g e a n d w o u l d p r o m o t e i n j u s t i c e t h a t t h e K A R D A S H I A N S f a c t c o n t r o l l e d , d o m i n a t e d , m a n a g e d , a n d o p e r a t e d D A S H s u i t t h e i r o w n c o n v e n i e n c e s , i g n o r i n g c o r p o r a t e f o r m a l i t i e s , a n d u s i n g t h e c o r p o r a t i o n d e v i c e a t t e m p t a v o i d i n d i v i d u a l l i a b i l i t y , a n d u s i n g t h e a l t e r e g o t h e c o r p o r a t i o n m e a n s m i s t r e a t R R G f o r r e a s o n s a p e r s o n a l a g e n d a , w h i l e m a i n t a i n i n g t h e i r o w n C a l i f o r n i a l i m i t e d l i a b i l i t y c o r p o r a t e s t a t u s .

1 2 . J u r i s d i c t i o n a n d V e n u e a r e p r o p e r F r e s n o , C a l i f o r n i a p u r s u a n t P a r a g r a p h t h e C e l e b r i t y E n d o r s e m e n t A g r e e m e n t ( t h e " A G R E E M E N T ' ) e n t e r e d i n t o b e t w e e n R R G a n d

t h e K A R D A S H I A N S a n d D A S H J u n e 1 6 , 2 0 1 0 , t r u e a n d c o r r e c t c o p y w h i c h h a s b e e n a t t a c h e d h e r e t o a n d i n c o r p o r a t e d r e f e r e n c e h e r e i n a s E x h i b i t " A . "


Exhibit C



25/86

A Y A L A , L L P S h a w A v e . . # 1 0 2

9 3 7 0 4

1 3 . R R G u n a w a r e t h e t r u e n a m e s , i d e n t i t i e s a n d c a p a c i t i e s o f D e f e n d a n t ss u e d h e r e i n D O E S t h r o u g h 5 0 , i n c l u s i v e , a n d t h e r e f o r e s u e s s a i d D e f e n d a n t s b y s u c h f i c t i t i o u sn a m e s , p u r s u a n t C a l i f o r n i a C o d e C i v i l P r o c e d u r e S e c t i o n 4 7 4 . R R G w i l l s e e k l e a v e c o u r t

a m e n d t h i s c o m p l a i n t a l l e g e t h e t r u e n a m e s a n d c a p a c i t i e s s a i d D O E D e f e n d a n t s w h e na s c e r t a i n e d . R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t e a c h t h e f i c t i t i o u s l y n a m e dD e f e n d a n t s a r e r e s p o n s i b l e f o r t h e o c c u r r e n c e s a l l e g e d h e r e i n a n d a r e l i a b l e R R G f o r t h e d a m a g e sp r o x i m a t e l y c a u s e d t h e r e b y .

1 4 . R R G a l l e g e s t h e i n f o r m a t i o n a n d b e l i e f t h a t e a c h t h e D e f e n d a n t s w e r et h e a g e n t s t h e o t h e r a l l t h e a c t i o n s s e t f o r t h h e r e i n , t h a t e a c h w a s a c t i n g t h e c o u r s e a n d s c o p e i t s a g e n c y w i t h i t s p r i n c i p l e , a n d t h a t e v e r y a c t o f e a c h D e f e n d a n t w a s r a t i f i e d t h e o t h e r s .

1 5 . F A C T U A L A L L E G A T I O N S

R R G w a s a n d a l l t i m e s r e l e v a n t a n d m e n t i o n e d h e r e i n , I n d e p e n d e n t S a l e s O r g a n i z a t i o n " I S O " a u t h o r i z e d m a r k e t t h e p r e p a i d d e b i t c a r d s c o n s u m e r s f r o m t h e U n i v e r s i t y N a t i o n a l B a n k M i n n e a p o l i s , M i n n e s o t a t h e " i s s u i n g b a n k . "

1 6 . R R G , I S O , e n t e r e d i n t o a n a g r e e m e n t w i t h t e c h n o l o g y p r o v i d e r , M o b e , I n c . ( " M o b e " ) p r o v i d e t h e c o m p l e x t e c h n o l o g y t h a t a l l o w s t h e c u s t o m i z e d p r e p a i d d e b i t c a r d u s e d v a r i o u s w a y s d e s i r e d t h e c o n s u m e r , t h e i s s u i n g b a n k , " n e t w o r k p r o v i d e r " , ( s u c h

V i s a , t h i s c a s e M a s t e r C a r d ) a n d o t h e r e n t i t i e s , s u c h p a y m e n t p r o c e s s o r . 1 7 . P r e p a i d d e b i t c a r d s h a v e b e c o m e i n c r e a s i n g l y p o p u l a r w a y f o r c o n s u m e r s

p a y f o r i t e m s r a t h e r t h a n c a r r y i n g c a s h u s i n g t r a d i t i o n a l c r e d i t c a r d s . R R G h a s w o r k e d h a r d a c h i e v e t h e h i g h e s t s t a n d a r d c a r e u t i l i z i n g t h e m o s t a d v a n c e d t e c h n o l o g y a v a i l a b l e f o r t h e p r e p a i d d e b i t c a r d s t h a t o f f e r e d c o n s u m e r s . P r e p a i d c o n s u m e r d e b i t c a r d s h a v e v a r i o u s c o n v e n i e n c e a n d s a f e t y f e a t u r e s t h a t m a y m a k e t h e m s u p e r i o r a l t e r n a t i v e u s i n g c a s h t r a d i t i o n a l c r e d i t c a r d s f o r m a n y c o n s u m e r s .


Exhibit C



26/86

1 8 . R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t c o n s u m e r s u s i n gp r e p a i d d e b i t c a r d s a r e t y p i c a l l y c h a r g e d a s e r i e s d i f f e r e n t t y p e s f e e s f o r u s i n g t h o s e c a r d s . R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h o s e f e e s a r e s e t t h e i s s u i n g b a n k , a n d m a y i n c l u d e t r a n s a c t i o n f e e s . R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h e f e e s f o r p r e p a i dd e b i t c a r d s a r e d i s c l o s e d t h e c o n s u m e r p r i o r t h e c o n s u m e r ' s p u r c h a s e t h e p r e p a i d d e b i t c a r d .

1 9 . b e h a l f t h e K A R D A S H I A N S a n d D A S H , K R I S J E N N E R e n g a g e d n e g o t i a t i o n s w i t h R R G f o r t h e p r o m o t i o n a n d s a l e t h e K A R D A S H I A N M a s t e r C a r d p r e p a i d d e b i tc a r d . K R I S J E N N E R d e m a n d e d t h a t K I M K A R D A S H I A N , K H L O E K A R D A S H I A N , a n d K O U R T N E Y K A R D A S H I A N e a c h r e c e i v e e q u a l c o m p e n s a t i o n f o r R R G ' s r i g h t a n d l i c e n s e u t i l i z e t h e i r n a m e s , n i c k n a m e s , i n i t i a l s , a u t o g r a p h s , f a c s i m i l e s i g n a t u r e s , p h o t o g r a p h s , l i k e n e s s e s ,a n d e n d o r s e m e n t s o f t h e K A R D A S H I A N M a s t e r C a r d p r e p a i d d e b i t c a r d .

2 0 . a b o u t J u n e 1 6 , 2 0 1 0 , R R G a n d t h e K A R D A S H I A N S a n d D A S H e n t e r e d i n t o t h e A G R E E M E N T . S e e E x h i b i t " A . " P u r s u a n t t h e A G R E E M E N T , R R G a c q u i r e d t h e e x c l u s i v e r i g h t a n d l i c e n s e t o u t i l i z e t h e K A R D A S H I A N S n a m e s , n i c k n a m e s , i n i t i a l s , a u t o g r a p h s , f a c s i m i l e s i g n a t u r e s , p h o t o g r a p h s , l i k e n e s s e s , a n d e n d o r s e m e n t s ( h e r e i n a f t e r t h e " P R O P E R T Y " ) c o n n e c t i o n w i t h t h e m a r k e t i n g a n d s a l e t h e M a s t e r C a r d p r e p a i d d e b i t c a r d t h e n a m e t h e K A R D A S H I A N S ( h e r e i n a f t e r t h e " K A R D A S H I A N K A R D " ) .

2 1 . P u r s u a n t P a r a g r a p h a n d t h e A G R E E M E N T , t h e K A R D A S H I A N S g r a n t e d R R G t h e e x c l u s i v e a n d w o r l d w i d e r i g h t a n d l i c e n s e u s e t h e P R O P E R T Y m a r k e t , a d v e r t i s e , p r o m o t e , a n d s e l l t h e K A R D A S H I A N K A R D , a n y m a n n e r d e t e r m i n e d R R G , t h e d i s c r e t i o n R R G , f o r t e r m o f t w o ( 2 ) y e a r s ( h e r e i n a f t e r " R O Y A L T Y T E R M . " ) U p o n m u t u a l a g r e e m e n t t h e p a r t i e s , t h e A G R E E M E N T c o u l d r e n e w e d u n l i m i t e d n u m b e r a d d i t i o n a l o n e


Exhibit C



27/86

2 2 . c o n s i d e r a t i o n f o r e n t e r i n g i n t o t h e A G R E E M E N T , R R G a g r e e d p a yD A S H b e h a l f t h e K A R D A S H I A N S , t h e s u m o f T h r e e D o l l a r s ( $ 3 . 0 0 ) f o r e a c hK A R D A S H I A N K A R D a c t i v a t e d o r s o l d e a c h m o n t h t h e c a r d r e m a i n e d a c t i v e d u r i n g t h eR O Y A L T Y T E R M . R R G f u r t h e r a g r e e d p a y D A S H b e h a l f t h e K A R D A S H I A N S , t w e n t y -f i v e p e r c e n t ( 2 5 % ) o f t h e u s a g e t r a n s a c t i o n f e e s R R G r e c e i v e d f r o m t h e f i n a n c i a l i n s t i t u t i o nd u r i n g t h e R O Y A L T Y T E R M ( h e r e i n a f t e r " R O Y A L T Y " " R O Y A L T I E S " ) . S e e P a r a g r a p h S u b d i v i s i o n ( A ) t h e A G R E E M E N T a t t a c h e d h e r e t o a s E x h i b i t " A . "

2 3 . I n c o n s i d e r a t i o n f o r e n t e r i n g i n t o t h e A G R E E M E N T , R R G a g r e e d p a yD A S H t h e t o t a l s u m S e v e n t y - F i v e T h o u s a n d D o l l a r s ( $ 7 5 , 0 0 0 . 0 0 ) a d v a n c e t h eR O Y A L T I E S . R R G a g r e e d p a y T h i r t y - S e v e n T h o u s a n d F i v e H u n d r e d D o l l a r s ( $ 3 7 , 5 0 0 . 0 0 ) u p o nt h e s i g n i n g t h e A G R E E M E N T ( " I n i t i a l D e p o s i t " ) a n d p a y a d d i t i o n a l T h i r t y - S e v e n T h o u s a n dF i v e H u n d r e d D o l l a r s ( $ 3 7 , 5 0 0 . 0 0 ) s i x ( 6 ) m o n t h s a f t e r t h e s i g n i n g t h e A G R E E M E N T( " A d d i t i o n a l D e p o s i t " ) . S e e P a r a g r a p h S u b d i v i s i o n ( A ) t h e A G R E E M E N T a t t a c h e d h e r e t o E x h i b i t " A . "

2 4 . J u n e 1 7 , 2 0 1 0 , R R G p a i d D A S H b e h a l f t h e K A R D A S H I A N S ,t h e I n i t i a l D e p o s i t T h i r t y - S e v e n T h o u s a n d F i v e H u n d r e d D o l l a r s ( $ 3 7 , 5 0 0 . 0 0 ) . S e e c o p y R R G ' s c a s h i e r ' s c h e c k p a i d D A S H b e h a l f t h e K A R D A S H I A N S a t t a c h e d h e r e t o a n di n c o r p o r a t e d h e r e w i t h E x h i b i t " B . "

2 5 . a b o u t J u n e 1 7 , 2 0 1 0 , D A S H b e h a l f t h e K A R D A S H I A N S , a c c e p t e d t h e I n i t i a l D e p o s i t T h i r t y - S e v e n T h o u s a n d F i v e H u n d r e d D o l l a r s ( $ 3 7 , 5 0 0 . 0 0 ) p a i d b y R R G . t h e p r e s e n t d a t e , n e i t h e r D A S H n o r t h e K A R D A S H I A N S h a v e r e t u r n e d R R G ' s I n i t i a l D e p o s i t T h i r t y - S e v e n T h o u s a n d F i v e H u n d r e d D o l l a r s ( $ 3 7 , 5 0 0 . 0 0 ) .

2 6 . t h e A G R E E M E N T , t h e K A R D A S H I A N S a c k n o w l e d g e d a n d a g r e e d t h a t e a c h c u s t o m e r w o u l d r e q u i r e d p a y i n i t i a l f e e N i n e D o l l a r s a n d N i n e t y - F i v e C e n t s ( $ 9 . 9 5 ) ( " S e t F e e " ) a n d t h a t t h e y w o u l d n o t r e c e i v e a R O Y A L T Y o n a n y S e t F e e s p a i d . S e e P a r a g r a p h S u b d i v i s i o n ( E ) t h e A G R E E M E N T a t t a c h e d h e r e t o E x h i b i t " A . "

A Y A L A . L L P S h a w A v e . , 8 1 0 2

9 3 7 0 4 2 2 2 - 6 6 2 2


Exhibit C



28/86

A Y A L A . L L P A v e . . # 1 0 2

9 3 7 0 4

2 7 . t h e A G R E E M E N T , t h e K A R D A S H I A N S a g r e e d a v a i l a b l e f o r , c o o p e r a t e a n d p a r t i c i p a t e p h o t o s e s s i o n s , m a r k e t i n g , a d v e r t i s i n g , p u b l i c i t y , i n t e r v i e w s , a n ds i m i l a r a c t i v i t i e s r e l a t e d t o t h e K A R D A S H I A N K A R D , r e a s o n a b l y r e q u e s t e d R R G . S e eP a r a g r a p h S u b d i v i s i o n ( A ) o f t h e A G R E E M E N T a t t a c h e d h e r e t o a s E x h i b i t " A . "

2 8 . P u r s u a n t t h e A G R E E M E N T , K I M K A R D A S H I A N , K H L O EK A R D A S H I A N , a n d K O U R T N E Y K A R D A S H I A N e a c h i n d i v i d u a l l y a g r e e d a p p e a r a t l e a s t t h r e e( 3 ) t i m e s p e r c a l e n d a r y e a r , f o r t o t a l n i n e ( 9 ) a p p e a r a n c e s , s t u d i o l o c a t e d L o s A n g e l e s ,C a l i f o r n i a a r e a t o p a r t i c i p a t e t h e p r o d u c t i o n v i d e o r e c o r d i n g s , p h o t o g r a p h s a n d o t h e rp r o m o t i o n a l m a t e r i a l s r e a s o n a b l y r e q u e s t e d R R G p r o m o t e t h e K A R D A S H I A N K A R D . K I M K A R D A S H I A N , K H L O E K A R D A S H I A N a n d K O U R T N E Y K A R D A S H I A N a g r e e d p a r t i c i p a t e l e a s t t w o ( 2 ) t h e n i n e ( 9 ) s e s s i o n s t o g e t h e r . S e e P a r a g r a p h S u b d i v i s i o n ( B ) t h e A G R E E M E N T a t t a c h e d h e r e t o E x h i b i t " A . "

2 9 . P u r s u a n t t h e A G R E E M E N T , K I M K A R D A S H I A N , K H L O EK A R D A S H I A N , a n d K O U R T N E Y K A R D A S H I A N e a c h i n d i v i d u a l l y a g r e e d m a k e a t l e a s t t h r e e( 3 ) p u b l i c a p p e a r a n c e s e a c h c a l e n d a r y e a r , f o r t o t a l n i n e ( 9 ) a p p e a r a n c e s , p r o m o t e t h eK A R D A S H I A N K A R D , r e a s o n a b l y r e q u e s t e d R R G . K I M K A R D A S H I A N , K H L O EK A R D A S H I A N , a n d K O U R T N E Y K A R D A S H I A N a g r e e d a p p e a r t o g e t h e r f o r a t l e a s t t w o ( 2 )t h e n i n e ( 9 ) a p p e a r a n c e s . S e e P a r a g r a p h S u b d i v i s i o n ( C ) t h e A G R E E M E N T a t t a c h e d h e r e t oE x h i b i t " A . "

3 0 . t h e A G R E E M E N T , t h e K A R D A S H I A N S a g r e e d t o p a r t i c i p a t e s e s s i o n sa n d a p p e a r a n c e o n l y a f t e r t h i r t y ( 3 0 ) d a y n o t i c e a n d a c c e p t a n c e t h e s e s s i o n a p p e a r a n c e . A l lK A R D A S H I A N S e x p e n s e s w e r e b e s u b m i t t e d a n d a p p r o v e d b y R R G w r i t i n g p r i o r a n y

s e s s i o n o r a p p e a r a n c e . S e e P a r a g r a p h S u b d i v i s i o n ( D ) t h e A G R E E M E N T a t t a c h e d h e r e t o E x h i b i t " A . "


Exhibit C



29/86


30/86

A Y A L A , L L P S h a w A v e . . # 1 0 2

9 3 7 0 4

3 5 . T h e K A R D A S H I A N S a n d / o r D A S H a g r e e d i n d e m n i f y , d e f e n d a n d h o l dh a r m l e s s R R G f r o m a n y d a m a g e s f o r c o s t s , e x p e n s e s , a n d l o s s e s ( i n c l u d i n g r e a s o n a b l e a t t o r n e y f e e sa n d c o s t s ) a r i s i n g f r o m t h e a c t s o m i s s i o n s t h e K A R D A S H I A N S a n d / o r D A S H t h eK A R D A S H I A N S a n d / o r D A S H f a i l e d p e r f o r m t h e t e r m s t h e A G R E E M E N T . S e e P a r a g r a p h

t h e A G R E E M E N T a t t a c h e d h e r e t o a s E x h i b i t " A . " 3 6 . T h e K A R D A S H I A N S a g r e e d c o m p l y w i t h a l l t h e r u l e s a n d r e g u l a t i o n s

i m p o s e d M a s t e r C a r d t h e u s e a n d p r o m o t i o n o f t h e K A R D A S H I A N K A R D . S e e P a r a g r a p h t h e A G R E E M E N T a t t a c h e d h e r e t o E x h i b i t " A . "

3 7 . a b o u t S e p t e m b e r 2 0 1 0 , R R G p r o v i d e d t h e K A R D A S H I A N S , K R I S J E K N E R a n d / o r D A S H w i t h t h e r u l e s a n d r e g u l a t i o n s i m p o s e d M a s t e r C a r d f o r t h e K A R D A S H I A N K A R D .

3 8 . O c t o b e r 1 1 , 2 0 1 0 , R R G c o n t a c t e d t h e K A R D A S H I A N S , K R I S J E N N E R a n d / o r D A S H s c h e d u l e t i m e w i t h K I M K A R D A S H I A N , K H L O E K A R D A S H I A N a n d K O U R T N E Y K A R D A S H I A N b e f o r e t h e l a u n c h e v e n t f o r t h e K A R D A S H I A N K A R D N o v e m b e r 9 , 2 0 1 0 , r e v i e w t h e f e e s c h e d u l e s a n d t h e r u l e s a n d r e g u l a t i o n s t h e K A R D A S H I A N K A R D o n c e a g a i n b e f o r e t h e o f f i c i a l l a u n c h t h e K A R D A S H I A N K A R D . S e e e m a i l f r o m N a n c y T o r o s i a n R R G K R I S J E N N E R d a t e d O c t o b e r 1 1 , 2 0 1 0 , a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e w i t h

E x h i b i t " C . "

3 9 . O c t o b e r 2 2 , 2 0 1 0 , R R G p r o v i d e d t h e K A R D A S H I A N S , K R I S J E N N E R a n d / o r D A S H w i t h t h e f e e s c h e d u l e i m p o s e d b y U n i v e r s i t y N a t i o n a l B a n k f o r t h e K A R D A S H I A N K A R D a n d b r i e f e x p l a n a t i o n h o w t h e c o s t s a s s o c i a t e d w i t h t h e K A R D A S H I A N K A R D c o m p a r e d o t h e r c o m p a r a b l e p r e p a i d d e b i t c a r d s l i k e t h e R u s h C a r d ( R u s s e l l S i m m o n s ) p r e p a i d d e b i t c a r d . S e e e m a i l f r o m N a n c y T o r o s i a n R R G K R I S J E N N E R d a t e d O c t o b e r 2 2 , 2 0 1 0 . a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e w i t h E x h i b i t " D . "


Exhibit C



31/86

A Y A L A . L L P S h a w A > e . . f U 0 2

9 3 7 0 4

4 0 . N o v e m b e r 1 1 , 2 0 1 0 , R R G p r o v i d e d t h e K A R D A S H I A N S , K R J S J E N N E Ra n d / o r D A S H w i t h a n o t h e r s u m m a r y t h e f e e s c h e d u l e i m p o s e d b y U n i v e r s i t y N a t i o n a l B a n k f o rt h e K A R D A S H I A N K A R D . S e e e m a i l f r o m N a n c y T o r o s i a n o f R R G t h e K A R D A S H I A N S a n d / o rD A S H d a t e d N o v e m b e r 1 1 , 2 0 1 0 , a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e w i t h E x h i b i t * * E . " a b o u t N o v e m b e r 2 0 1 0 , R R G p r o v i d e d t h e K A R D A S H I A N S , K R I S J E N N E R a n d / o r D A S H w i t h s u m m a r y t h e f e e s c h e d u l e i m p o s e d b y U n i v e r s i t y N a t i o n a l B a n k f o r t h e K A R D A S H I A N K A R D . A t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e w i t h E x h i b i t " F " t r u e a n d c o r r e c t c o p y t h e f e e s c h e d u l e i m p o s e d b y U n i v e r s i t y N a t i o n a l B a n k t h a t w a s p r o v i d e d t h e K A R D A S H I A N S , K R I S J E N N E R a n d / o r D A S H .

4 1 . P u r s u a n t P a r a g r a p h t h e A G R E E M E N T , R R G w a s r e q u i r e d o b t a i n a n d m a i n t a i n , i t s o w n e x p e n s e , p r o d u c t l i a b i l i t y i n s u r a n c e p o l i c y i s s u e d i n s u r a n c e c o m p a n y l i c e n s e d b u s i n e s s C a l i f o r n i a a n d h a v i n g B e s t r a t i n g b e t t e r , n a m i n g t h e K A R D A S H I A N S a d d i t i o n a l i n s u r e d s . R R G o b t a i n e d t h e p r o d u c t l i a b i l i t y p o l i c y r e q u i r e d

S e p t e m b e r 1 4 , 2 0 1 0 .

4 2 . T h e K A R D A S H I A N S c o u l d o n l y t e r m i n a t e t h e A G R E E M E N T u p o n t h i r t y ( 3 0 ) d a y s w r i t t e n n o t i c e R R G R R G w a s a d j u d i c a t e d i n s o l v e n t o r d e c l a r e d b a n k r u p t c y , f a i l e d p a y t h e K A R D A S H I A N S a n y a m o u n t d u e p u r s u a n t t h e A G R E E M E N T w i t h i n s i x t y ( 6 0 ) d a y s o f t h e d u e d a t e t h e p a y m e n t f a i l e d m a i n t a i n p r o d u c t l i a b i l i t y i n s u r a n c e h e r e i n p r o v i d e d . S e e P a r a g r a p h t h e A G R E E M E N T a t t a c h e d h e r e t o a s E x h i b i t " A . "

4 3 . R R G h a s n o t b e e n a d j u d i c a t e d i n s o l v e n t , d e c l a r e d b a n k r u p t c y f a i l e d p a y t h e K A R D A S H I A N S a n y a m o u n t d u e p u r s u a n t t o t h e A G R E E M E N T .

4 4 . T h e K A R D A S H I A N S a g r e e d t h a t R R G c o u l d c o n t i n u e m a r k e t a n d s e l l t h e K A R D A S H I A N K A R D a c c o r d a n c e w i t h t h e A G R E E M E N T f o r p e r i o d t h r e e ( 3 ) m o n t h s f o l l o w i n g t h e t e r m i n a t i o n t h e A G R E E M E N T . S e e P a r a g r a p h 1 8 , S u b d i v i s i o n ( B ) t h e A G R E E M E N T a t t a c h e d h e r e t o E x h i b i t " A . "


Exhibit C



32/86

A Y A L A . L L P A v c . f l 1 0 2

9 3 7 0 4

4 5 . T h e p r e v a i l i n g p a r t y a n y a c t i o n t a k e n t o i n t e r p r e t e n f o r c e t h e A G R E E M E N T , i n c l u d i n g l i t i g a t i o n a r b i t r a t i o n , s h a l l e n t i t l e d t o r e c o v e r f r o m t h e n o n -p r e v a i l i n g p a r t y i t s r e a s o n a b l e e x p e n s e s a n d c o s t s , i n c l u d i n g r e a s o n a b l e a t t o r n e y s ' f e e s a n d p o s t -j u d g m e n t p o s t - d e c i s i o n e n f o r c e m e n t , c o l l e c t i o n a n d a p p e a l e x p e n s e s . S e e P a r a g r a p h t h e A G R E E M E N T a t t a c h e d h e r e t o a s E x h i b i t " A . "

4 6 . R R G p r e p a r e d f o r t h e l a u n c h t h e K A R D A S H I A N K A R D p r o m o t i n g a n d f u n d i n g l a u n c h e v e n t h e l d P A C H A , N e w Y o r k , N e w Y o r k , N o v e m b e r 2 0 1 0 . S e p t e m b e r 2 9 , 2 0 1 0 , K R I S J E N N E R c o n t r a c t u a l l y o b l i g a t e d t h e K A R D A S H I A N S a p p e a r t o g e t h e r P A C H A a n d r e m a i n t h e c l u b f o r t h e l a u n c h t h e K A R D A S H I A N K A R D f o r p e r i o d t i m e l e s s t h a n t h r e e ( 3 ) h o u r s ( h e r e i n a f t e r " L A U N C H A G R E E M E N T " ) . S e e L A U N C H

A G R E E M E N T a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e w i t h E x h i b i t " G . M 4 7 . c o n n e c t i o n w i t h t h e L A U N C H A G R E E M E N T , R R G p a i d t o t a l s u m

n o t l e s s t h a n S i x t y - F i v e T h o u s a n d D o l l a r s ( $ 6 5 , 0 0 0 . 0 0 ) f o r t h e p r o m o t i o n a n d l a u n c h t h e K A R D A S H I A N K A R D P A C H A . T h i s s u m i n c l u d e s , b u t n o t l i m i t e d t o , t h e c o s t s a s s o c i a t e d w i t h t h e v e n u e , t r a v e l c o s t s f o r R R G , t r a v e l c o s t s f o r K H L O E K A R D A S H I A N , h o t e l e x p e n s e s f o r K H L O E K A R D A S H I A N , m e a l s , c a r s e r v i c e f o r t h e K A R D A S H I A N S , h a i r a n d m a k e u p f o r t h e K A R D A S H I A N S , e m p l o y m e n t t h r e e ( 3 ) p u b l i c r e l a t i o n f i r m s p r o m o t e t h e K A R D A S H I A N K A R D , p h o t o g r a p h e r s , v a r i o u s m a r k e t i n g m a t e r i a l s , p r i n t e d i n v i t a t i o n s , a n d f l o r a l a r r a n g e m e n t s f o r t h e K A R D A S H I A N S .

4 8 . T h e K A R D A S H I A N S a p p e a r e d t h e l a u n c h e v e n t f o r t h e K A R D A S H I A N K A R D N o v e m b e r 9 , 2 0 1 0 . T h e K A R D A S H I A N S l e f t P A C H A a f t e r o n l y f i f t y - f i v e ( 5 5 ) m i n u t e s . T h e K A R D A S H I A N S r e t u r n e d P A C H A u p o n t h e d e m a n d R R G a f t e r t w e n t y ( 2 0 ) m i n u t e s , a n d s t a y e d f o r a d d i t i o n a l f o r t y ( 4 0 ) m i n u t e s , f o r t o t a l o n e ( 1 ) h o u r a n d t h i r t y - f i v e ( 3 5 ) m i n u t e s .


Exhibit C



33/86

A Y A L A . L L P S h a w A v e . . # 1 0 2

9 3 7 0 4 2 2 - 6 6 2 2

4 9 . R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t t h e K A R D A S H I A N S b e h a v i o r t h e l a u n c h e v e n t f o r t h e K A R D A S H I A N K A R D N e w Y o r k w a s w i d e l y a n d n e g a t i v e l y r e p o r t e d u p o n . M o r e o v e r , R R G f u r t h e r i n f o r m e d t h a t i m m e d i a t e l y f o l l o w i n g t h e i n i t i a l n e g a t i v e p u b l i c i t y t h e p r e s s a n d o t h e r p u b l i c f i g u r e s t h e r e a f t e r b e g a n d r u m b e a tn e g a t i v e r e p o r t i n g a n d c o m m e n t , d i r e c t e d c e r t a i n f i n a n c i a l a s p e c t s t h e K A R D A S H I A N

K A R D . R R G h a d c o n t r o l o v e r t h e " u p f r o n t " a n n u a l f e e s b e i n g d e m a n d e d f o r t h eK A R D A S H I A N K A R D .

5 0 . N o v e m b e r 2 9 , 2 0 1 0 , c o u n s e l f o r D A S H a n d / o r t h e K A R D A S H I A N S c a u s e d a n e m a i l s e n t R R G w i t h a n a t t a c h e d t e r m i n a t i o n l e t t e r t h a t t e r m i n a t e d t h eA G R E E M E N T b e t w e e n t h e K A R D A S H I A N S a n d R R G e f f e c t i v e i m m e d i a t e l y . R R G i n f o r m e da n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t c o u n s e l f o r D A S H s i m u l t a n e o u s l y s e n t c o p y o f t h et e r m i n a t i o n l e t t e r m e d i a o u t l e t s . R R G w a s n o t i f i e d t h e m e d i a c o v e r a g e o f t h e t e r m i n a t i o n l e t t e rs e n t c o u n s e l f o r D A S H . R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t D A S H n o t i f i e dt h e p u b l i c t h a t w a s t e r m i n a t i n g t h e A G R E E M E N T b e f o r e p r o p e r l y n o t i f i e d R R G . A t t a c h e dh e r e t o a n d i n c o r p o r a t e d h e r e w i t h E x h i b i t " H " t r u e a n d c o r r e c t c o p y o f t h eK A R D A S H I A N / D A S H N o v e m b e r 2 9 , 2 0 1 0 , t e r m i n a t i o n l e t t e r .

5 1 . N o v e m b e r 2 9 , 2 0 1 0 , R R G r e c e i v e d e m a i l f r o m c o u n s e l f o r U n i v e r s i t yN a t i o n a l B a n k t e r m i n a t i n g i t s I S O . I m m e d i a t e l y u p o n h a v i n g i t s I S O r e v o k e d , R R G w a s p r e v e n t e df r o m o p e r a t i n g a n d d o i n g b u s i n e s s .

5 2 . F o l l o w i n g t h e f i a s c o c a u s e d t h e K A R D A S H I A N S b e h a v i o r t h e l a u n c he v e n t N e w Y o r k a n d g a i n i n g i n t e n s i t y t h r o u g h t h e p u b l i c t e r m i n a t i o n t h e A G R E E M E N T t h e K A R D A S H I A N S , R R G w a s w r o n g f u l l y s u b j e c t e d p u b l i c r i d i c u l e a n d n e g a t i v e p u b l i c i t yr e g a r d i n g i t s c o m p a n y a n d i t s p r o d u c t s , i n c l u d i n g t h e K A R D A S H I A N K A R D . R R G w a s w r o n g f u l l ya n d n e g a t i v e l y t a r g e t e d f o r s e t t i n g t h e p r i c i n g s t r u c t u r e a n d f e e s c h e d u l e f o r t h e K A R D A S H I A NK A R D .


Exhibit C



34/86

A Y A L A . L l . P S h a w A v e . # 1 0 2

9 3 7 0 4 2 2 2 - 6 6 2 2

5 3 . T h e K A R D A S H I A N S n e g o t i a t e d w i t h R R G f o r t h e c r e a t i o n a n d p r o m o t i o nt h e K A R D A S H I A N K A R D . R R G d i s c l o s e d a l l p r i c i n g a n d f e e s a s s o c i a t e d w i t h t h e

K A R D A S H I A N K A R D . R R G i n f o r m e d a n d b e l i e v e s a n d t h e r e u p o n a l l e g e s t h a t t h eK A R D A S H I A N S d e n i e d k n o w i n g a b o u t t h e c o s t s a s s o c i a t e d w i t h t h e K A R D A S H I A N K A R D a n dp u b l i c a l l y t e r m i n a t e d i t s A G R E E M E N T w i t h R R G .

5 4 . R R G h a s w r o n g f u l l y b e e n t h e s u b j e c t n u m e r o u s n e g a t i v e a r t i c l e s , n e g a t i v er e p o r t s b u s i n e s s a n d e n t e r t a i n m e n t n e w s , a n d S a t u r d a y N i g h t L i v e p a r o d y . T h e m i s p l a c e dn e g a t i v e p u b l i c i t y f o c u s e d R R G f o l l o w i n g t h e p u b l i c t e r m i n a t i o n t h e A G R E E M E N T t h eK A R D A S H I A N S h a s f o r c e d R R G c e a s e o p e r a t i n g a n d c o n d u c t i n g b u s i

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