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PIPE RESTORATION TECHNOLOGIES, LLC, a Nevada Limited Liability Company; ACE DURAFLO SYSTEMS, LLC. a Nevada Limited Liability Company; and PIPE RESTORATION, INC., a California Corporation, Plaintiffs, VS. COAST BUILDING & PLUMBING, INC., a California Corporation d/b/a PIPELINE RESTORA HON, PIPELINE RESTORATION SERVICES, and PIPELINE RESTORATION SERVICES, INC; ROY TERRY, an individual; and DOES 1 through 10, inclusive, Defendants. Ronald P. Oines (State Bar No. 145016) email: [email protected] Chelsea A. Epps (State Bar No. 261026) email: cepps a)rutan.com RUTAN CKER, LLP 611 Anton Boulevard, Fourteenth Floor Costa Mesa, California 92626-1931 Telephone: 714-641-5100 Facsimile: 714-546-9035 Case No. SACV 13 - 00499 CJC (RNBx) COMPLAINT FOR INJUNCTION AND DAMAGES FOR: (1) PATENT INFRINGEMENT (2) FEDE " • L UNFAIR COMPETITION [LANHA1VI ACT] (3) VIOLATION OF CALIFO IA BUSINESS & PROFESSIONS CODE §§ 17200 ET SEQ. AND 17500 DEMAND FOR JURY TRIAL Attorneys for Plaintiffs PIPE RESTORATION TECIANOLOGIES, LLC, ACE DURAFLO SYSTEMS, LLC and PIPE RESTORATION, INC. UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA 2118/022688-0054 5075031.1 a03/26/13 COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT ETC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 1 of 16 Page ID #:1

Pipe Restoration Technologies Et. Al. v. Coast Building and Plumbing Et. Al

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Page 1: Pipe Restoration Technologies Et. Al. v. Coast Building and Plumbing Et. Al

PIPE RESTORATION TECHNOLOGIES, LLC, a Nevada Limited Liability Company; ACE DURAFLO SYSTEMS, LLC. a Nevada Limited Liability Company; and PIPE RESTORATION, INC., a California Corporation,

Plaintiffs, VS.

COAST BUILDING & PLUMBING, INC., a California Corporation d/b/a PIPELINE RESTORA HON, PIPELINE RESTORATION SERVICES, and PIPELINE RESTORATION SERVICES, INC; ROY TERRY, an individual; and DOES 1 through 10, inclusive,

Defendants.

Ronald P. Oines (State Bar No. 145016) email: [email protected] Chelsea A. Epps (State Bar No. 261026) email: cepps a)rutan.com RUTAN CKER, LLP 611 Anton Boulevard, Fourteenth Floor Costa Mesa, California 92626-1931 Telephone: 714-641-5100 Facsimile: 714-546-9035

Case No. SACV 13 - 00499 CJC (RNBx)

COMPLAINT FOR INJUNCTION AND DAMAGES FOR:

(1) PATENT INFRINGEMENT (2) FEDE " • L UNFAIR

COMPETITION [LANHA1VI ACT] (3) VIOLATION OF CALIFO IA

BUSINESS & PROFESSIONS CODE §§ 17200 ET SEQ. AND 17500

DEMAND FOR JURY TRIAL

Attorneys for Plaintiffs PIPE RESTORATION TECIANOLOGIES, LLC, ACE DURAFLO SYSTEMS, LLC and PIPE RESTORATION, INC.

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

2118/022688-0054 5075031.1 a03/26/13

COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT ETC.

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Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 1 of 16 Page ID #:1

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Plaintiffs PIPE RESTORATION TECHNOLOGIES, LLC ("PRT"), ACE

DURAFLO SYSTEMS, LLC ("ACE") and PIPE RESTORATION, NC.

("PRI")(collectively, "Plaintiffs"), for themselves alone in their Complaint against

defendants COAST BUILDING & PLUMBING, INC. d/b/a PIPELINE

RESTORATION, PIPELINE RESTORATION SERVICES, and PIPELINE

RESTORATION SERVICES, INC. ("Coast Building"), ROY TERRY and DOES 1

through 10, inclusive (collectively, "Defendants"), allege as follows:

JURISDICTION AND VENUE

1. This is an action involving claims of patent infringement under Title

35, United States Code, unfair competition under the Lanham Act, 15 U.S.C.

§§ 1051 et seq., and claims for unfair competition under California statutory law.

This Court has jurisdiction over Plaintiff's federal claims pursuant to 28 U.S.C.

§§ 1331 and 1338(a) and (b). This Court has jurisdiction over Plaintiff's related

claims based on state law pursuant to 28 U.S.C. § 1367.

2. Venue is proper with this Court pursuant to 28 U.S.C. § 1391(b) and

(c), as Defendants reside in this judicial district, and a substantial part of the events,

omissions and acts which are the subject matter of this action occurred within the

Central District of California, and a substantial part of the property that is the

subject of the action is located in the Central District of California.

THE PARTIES

3. Plaintiff PRT is a Nevada Limited Liability Company with its principal

place of business located at 7477 W. Lake Mead Blvd., Suite 170, Las Vegas,

Nevada 89128.

4. Plaintiff ACE is a Nevada Limited Liability Company with its principal

place of business located at 3122 West Alpine Street, Santa Ana, California 92704.

5. Plaintiff PRI is a California Corporation with its principal place of

business located at 3122 West Alpine Street, Santa Ana, California 92704.

6. Plaintiffs are informed and believe, and thereon allege, that defendant

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Coast Building is a California corporation having its principal place of business

located at 2911 E. Miraloma Ave., Unit 31, Anaheim, CA 92806. Plaintiffs are also

informed and believe that Coast Building does business as "Pipeline Restoration,"

"Pipeline Restoration Services" and "Pipeline Restoration Services, Inc."

7. Plaintiffs are informed and believe, and thereon allege, that defendant

Roy Terry is the owner and President of Coast Building, and controls all aspects of

the business of Coast Building.

8. The true names and capacities, whether individual, corporate, associate

or otherwise, of defendants DOES 1 through 10, inclusive, are unknown to

Plaintiffs, which therefore sues said defendants by such fictitious names. Plaintiffs

will seek leave of this Court to amend this Complaint to include their proper names

and capacities when they have been ascertained. Plaintiffs are informed and believe,

and based thereon allege, that each of the fictitiously named defendants participated

in and are in some manner responsible for the acts described in this Complaint and

the damage resulting therefrom.

9. Plaintiffs allege on information and belief that each of the defendants

named herein as Does 1 through 10, inclusive, performed, participated in, or abetted

in some manner, the acts alleged herein, proximately caused the damages alleged

hereinbelow, and are liable to Plaintiffs for the damages and relief sought herein.

10. Plaintiffs allege on information and belief that, in performing the acts

and omissions alleged herein, and at all times relevant hereto, each of the

Defendants was the agent and employee of each of the other Defendants and was at

all times acting within the course and scope of such agency and employment with

the knowledge and approval of each of the other Defendants.

PLAINTIFFS' BUSINESS

11. Plaintiff PRT developed and owns a proprietary system for cleaning

and reconditioning pipelines, as well as coating pipelines to prevent corrosion and/or

stop leaks, together with other related repairs and services. This process uses a COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT

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proprietary epoxy. PRT's process involves cleaning, drying and then sanding the

interior of the pipeline. An epoxy is then air-blown to coat the interior of the

pipeline. PRT's epoxy is NSF® certified for use in all of the applications in which

it is used. The NSF® approval process is a rigorous one in which the applicant is

required to specify the actual product formulation and product conditions of use,

such as the type of product, pipe diameter, water contact temperature, cure time and

temperature, and any pre- or post-curing conditions. If the product passes the

rigorous approval process, it is approved only as to the information and conditions

specified by the applicant.

12. PRT owns a robust intellectual property portfolio relating to its

business. For example, on January 1, 2013, the United States Patent & Trademark

Office ("USPTO") issued United States Patent no. 8,343,579, entitled "Methods and

Systems for Coating and Sealing Inside of Piping Systems" ("the '579 Patent").

PRT owns all rights, title and interest in the '579 Patent.

13. Plaintiff ACE has a license from PRT to PRT's technology and

intellectual property discussed above. ACE, in turn, franchises and licenses such

technology and intellectual property to franchisees and licensees throughout the

United States, including in geographic areas in which Defendants do business.

14. Plaintiff PRI is a franchisee of ACE, and as such, performs pipe

restoration work, including in the geographic areas in which Defendants do business

and in direct competition with Defendants.

15. The Application upon which the '579 Patent is based was published by

the USPTO on September 30, 2010. On information and belief, in early 2011,

Defendants' engaged patent counsel to research PRT's patents and patent

applications, and commenced a reexamination proceeding as to one of PRT's

patents. On information and belief, Defendants' likely were made aware of the

publication of the Application that became the '579 Patent at least as of early 2011.

On information and belief, Defendants also likely were made aware of the issuance COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT

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and content of the '579 Patent on or shortly after January 1, 2013. Additionally,

Plaintiffs properly mark their goods and services with the '579 Patent, thereby

providing prior constructive notice of the '579 Patent to Defendants.

DEFENDANTS' BUSINESS, INFRINGEMENT AND FALSE ADVERTISING

16. On information and belief, Defendants are in the business of, among

other things, plumbing. As part of their plumbing operations, Defendants offer an

epoxy-based pipe restoration process that is similar in some respects to Plaintiffs'

process described above. Defendants compete with Plaintiffs for pipe restoration

work in small diameter, potable water applications.

17. In connection with advertising their pipe restoration services,

Defendants have made, and continue to make, false and misleading representations

in marketing and other materials in an effort to confuse actual and potential

customers and compete unfairly with Plaintiffs in the marketplace.

18. On February 22, 2011, Plaintiff PRT filed a lawsuit against Defendants

arising out of, among other things, the following false statements that Defendants

marketing materials included at that time:

• Defendants stated in marketing and other materials that all of

Defendants' materials are approved for potable water contact and are

certified to NSF/ANSI Standard 61. On information and belief, this

statement was false because the epoxy Defendants use and have used

is not and was not approved for the small diameter application in

which Defendants use it and have used it.

• Defendants also made statements that the epoxy materials used by

Defendants have been in use worldwide for over 45 years and have

been applied to more than 5,000 miles of domestic water lines in the

United Kingdom alone. On information and belief, this statement was

false and/or misleading because it falsely suggests that the epoxy used

by Defendants has been used to such extent in small diameter, potable COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT

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water applications, which is false.

• Defendants also stated that their process stops all future corrosion of

the piping system, which is false.

• Defendants also stated that their pipe restoration service is the "only

solution" to prevent slab leaks or other pinhole leaks. This statement

is false.

• Defendants also stated that their process results in no waste to

landfills. This is false.

• Defendants also stated that they are the only company that specifically

targets the repair of single water lines. This statement is false.

19. As a result of the lawsuit and Defendants' recognition that these

statements were false, Defendants took down the intemet site on which these

statements had been made, i.e., www.pipelinerestoration.corn.

20. However, recently, Defendants have reinstituted their use of the

pipelinerestoration.com website, and continue to make false and misleading

statements in an effort to mislead actual and potential customers of Defendants —

who are also potential customers of Plaintiffs — in an effort to steer business away

from Plaintiffs to Defendants. The false and misleading statements that are

currently on www.pipelinerestoration.corn include:

• Defendants continue to state that all of Defendants' materials are

approved for potable water contact and are certified to NSF/ANSI

Standard 61. On information and belief, this statement is false

because the epoxy Defendants use and have used is not and was not

approved for the small diameter application in which Defendants use

it and have used it.

• Defendants continue to make statements that the epoxy materials used

by Defendants have been in use worldwide for over 45 years and have

been applied to more than 5,000 miles of domestic water lines in the COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT

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United Kingdom alone. On information and belief, this statement is

false and/or misleading because it falsely suggests that the epoxy used

by Defendants has been used to such extent in small diameter, potable

water applications, which is false.

• Defendants also state that their process stops all corrosion "for the life

of your home," which is false.

• Defendants also state that they are the "only company offering a

single line service . . . ." This statement is false.

• Defendants continue to state that their process results in no waste to

landfills. This is false.

21. All of the above-referenced statements have a tendency to deceive, and

on information and belief have actually deceived, a substantial segment of the

consuming public. Such deception is material and likely to influence purchasing

decisions.

22. Defendants have caused their falsely advertised goods and services to

be advertised and/or sold in interstate commerce. On information and belief,

Plaintiffs have been injured by such false statements by, among other things, the

direct diversion of business from Plaintiffs to Defendants.

23. On information and belief, Defendants also routinely and consistently

violate air quality laws and regulations, including those that are enforced by the

South Coast Air Quality Management District, the California Environmental

Protection Agency, and/or the Air Resources Board. For example, Defendants are

required to be registered and compliant with rules relating to the use of their diesel

engines. Defendants also are required to be registered and compliant with rules

relating to the use of coatings. On information and belief, Defendants are not so

registered or compliant.

24. As stated above, on information and belief, the epoxy coating

Defendants use in connection with their pipe restoration business is not approved for COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRTNGMENT

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small diameter pipes. Nor is it approved to be in contact with drinking water in

small diameter pipes. On information and belief, by using its epoxy coating in

unapproved applications, Defendants violate the Health and Safety Code of the State

of California and other state and federal laws and regulations.

25. The conduct described above also violates various provisions of the

California Contractor's Licensing Laws. For example, on information and belief,

Defendants are in violation of section 7110, which prohibits willful or deliberate

disregard and violation of the building laws of California or political subdivision

thereof, and the provisions of the California Health and Safety or Water Codes. On

information and belief, the conduct described above also violates section 7161 of the

Contractor's Licensing Laws, which section provides that it is a misdemeanor to

Use false, misleading, or deceptive advertising as an inducement to enter into any

contract for a work of improvement, or make any substantial misrepresentation in

the procurement of a contract for a home improvement or other work of

improvement.

FIRST CLAIM FOR LIEF

(Patent Infringement [`579 Patent])

26. Plaintiffs reallege each and every allegation set forth in paragraphs 1

through 25, inclusive, and incorporate them herein by this reference.

27. Defendants have practiced and continue to practice in the United States

the process that is described in one or more claims of the '579 patent. As a result,

Defendants have infringed and are infringing the '579 patent.

28. On information and belief, Defendants' infringement of the '579 patent

has been and will continue to be willful, wanton and deliberate with full knowledge

and awareness of Plaintiffs' patent rights.

29. Plaintiffs have been damaged in an amount to be determined at trial,

but which is no less than a reasonable royalty, and irreparably injured by

Defendants' infringing activities. Plaintiffs will continue to be so damaged and COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT

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irreparably injured unless such infringing activities are enjoined by this Court.

30. Moreover, in light of the willful nature of Defendants' conduct, this

case should be deemed "exceptional" under the Patent Laws. As a result, in addition

to damages, Plaintiffs are entitled to enhanced damages and their attorneys' fees and

costs incurred herein.

SECOND CLAIM FOR LIEF

(Federal Unfair Competition — 15 U.S.C. § 1125)

31. Plaintiffs reallege each and every allegation set forth in paragraphs 1

through 25 inclusive, and incorporate them herein by this reference.

32. Defendants' false statements in advertising materials and otherwise as

described in paragraphs 17 to 25 above, constitute violations of 15 U.S.C. § 1125 of

the Lanham Act.

33. Defendants' aforesaid acts constitute deliberate and intentional

violations of 15 U.S.C. § 1125, causing damages, as well as irreparable harm to

Plaintiffs for which there is no adequate remedy at law. Given the willful nature of

Defendants' conduct, this is an "exceptional" case under the Lanham Act, entitling

Plaintiffs to their attorneys' fees incurred herein.

THI CLAIM FOR ' LIEF

(California Business And Professions Code §§ 17200 et seq. and 17500)

34. Plaintiffs reallege each and every allegation set forth in paragraphs 1

through 25, inclusive, and incorporate them herein by this reference.

35. The foregoing acts and conduct of Defendants described in paragraphs

17 through 25, constitute unfair trade practices and unfair competition under

California Business and Professions Code ("Cal. B&P Code") §§ 17200 et seq., and

False Advertising under Cal. B&P Code § 17500.

36. Defendants' acts have caused damage to Plaintiffs, including incidental

and general damages, lost profits, and out-of-pocket expenses. Defendants should

therefore be required to disgorge and restore to Plaintiffs all profits and other COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT

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expenses as may be incurred by Plaintiffs.

37. Plaintiffs further seek an injunction to enjoin Defendants from

continuing such unfair business practices and false advertising.

YER FOR RELIEF

WHEREFORE, Plaintiffs pray for judgment against Defendants as follows:

1. That Defendants, their officers, directors, agents, servants, employees,

and all persons and entities in active concert or participation with them, or any of

them, be preliminarily and permanently enjoined and restrained from further

infringement of the '579 Patent;

2. A Judgment by the Court that Defendants have infringed and are

infringing the '579 Patent;

3. An award of damages for infringement of the '579 Patent, together with

prejudgment interest and costs, said damages to be trebled by reason of the

intentional and willful nature of Defendants' infringement, as provided by 35 U.S.C.

§ 284;

4. An award of Plaintiffs' reasonable attorneys' fees pursuant to 35 U.S.C.

§ 285 in that this is an exceptional case;

5. That Defendants, their officers, directors, agents, servants, employees,

and all persons and entities in active concert or participation with them, or any of

them, be preliminarily and permanently enjoined and restrained from publishing

false or misleading statements, as alleged herein;

6. That Plaintiffs have and recover from Defendants reasonable attorneys'

fees, costs and disbursements relating to this action because this is an "exceptional

case" pursuant to the Lanham Act;

7. That the Court grant Plaintiffs restitution from Defendants by

disgorgement of all profits earned through Defendants conduct;

8. For restitution of any money or property Defendants wrongfully

obtained, pursuant Business and Professions Code section 17203; COMPLAINT FOR INJUNCTION AND DAMAGES FOR PATENT INFRINGMENT

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9. That any monetary award include pre- and post-judgment interest at the

highest rate allowed by law;

10. For costs of suit; and

11. For such other and further relief as the Court may deem just and proper.

RUTAN & TUCKER, LLP RONALD P. OINES CHELSEA A. EPPS

Rona`rd . Oines Attorneys for Plaintiffs PIPE RESTORATION TECHNOLOGIES, LLC, ACE DURAFLO SYSTEMS, LLC and PIPE RESTORATION, INC.

2118/022688-0054 5075031.1 a03/26/13

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Dated: March 28, 2013

By:

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DEMAND FOR JURY TRIAL

Pursuant to Local Rule 38-1 of the Local Rules of the United States District

Court for the Central District of California, Plaintiffs hereby demand a jury trial in

this action.

Dated: March 28, 2013 RUTAN & TUCKER, LLP RONALD P. OINES CHELSEA A. EPP

By: N-\\ \\Ronald • ines

Attorneys for Plaintiffs PIPE RESTORATION TECHNOLOGIES, LLC, ACE DURAFLO SYSTEMS, LLC and PIPE RESTORATION, INC.

2118/022688-0054 5075031.1 a03/26/13

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UNITED STATES DISTRICT COURT CENT £>,L DISTRICT OF CALIFO< IA

NOTICE OF ASSIGNMENT TO UNITED STATES MAGIST • TE JUDGE FOR DISCOVERY

This case has been assigned to District Judge Cormac J. Carney and the assigned discovery Magistrate Judge is Robert N. Block.

The case number on all documents filed with the Court should read as follows:

SACV13— 499 CJC ( ' Bx)

Pursuant to General Order 05-07 of the United States District Court for the Central District of California, the Magistrate Judge has been designated to hear discovery related motions.

All discovery related motions should be noticed on the calendar of the Magistrate Judge

NOTICE TO COUNSEL

A copy of this notice must be served with the summons and complaint on all defendants (if a removal action is filed, a copy of this notice must be served on all plaintiffs).

Subsequent documents must be filed at the following location:

11 Western Division

Southern Division 11 Eastern Division 312 N. Spring St., Rm. G-8

411 West Fourth St., Rm. 1-053 3470 Twelfth St., Rm. 134

Los Angeles, CA 90012

Santa Ana, CA 92701-4516 Riverside, CA 92501

Failure to file at the proper location will result in your documents being returned to you.

CV-18 (03/06) NOTICE OF ASSIGNMENT TO UNITED STATES MAGISTRATE JUDGE FOR DISCOVERY

Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 13 of 16 Page ID #:13

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CASE NUMBER

SACV 13 - 00499 CJC

SUMMONS

PIPE RESTORATION TECHNOLOGIES, LLC, a Nevada Limited Liability Company, ACE DURAFLO SYSTEMS, LLC. a Nevada Limited Liability Company; and PIPE RESTORATION, INC., a California Corporation,

PLAINTIFF(S)

v. COAST BUILDING & PLUMBING, INC., a California Corporation d/b/a PIPELINE RESTORATION, PIPELINE RESTORATION SERVICES, and PIPELINE RESTORATION SERVICES, INC; ROY TERRY, an individual; and DOES 1 through 10, inclusive,

DEFENDANT(S).

Dated:

Clerk, U.S. District Court

By: Dep i■ Clerk

LORI WAGERS (Seal oj tneCourt)

Az2.5

Ronald P. Oines SBN 145016, roil )rutan.com Chelsea A. Epps SBN 261026, [email protected] RUTAN & TUCKER, LLP 611 Anton Boulevard, Fourteenth Floor Costa Mesa, CA 92626 Telephone: 714-641-5100 Facsimile: 714-546-9035 Attorneys for Plaintiffs

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

TO: DEFENDANT(S):

A lawsuit has been filed against you.

Within 21 days after service of this summons on you (not counting the day you received it), you must serve on the plaintiff an answer to the attached X complaint amended complaint

counterclaim I cross-claim or a motion under Rule 12 of the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiffs attorney, Ronald P. Oines and Chelsea A. Epps of Rutan & Tucker, LLP, whose address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, CA 92626. If you fail to do so, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court.

[Use 60 days if the defendant is the United States or a United States agency, or is an officer or employee of the United States. Allowed 60 days by Rule 12(a)(3)].

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CV-01A (10/11 SUMMONS

Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 14 of 16 Page ID #:14

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Incorporated or Principal Place of Business in this State

Incorporated and Principal Place ofl: 5 Business in Another State

PTF DEF

El 4 4

El 5

UNITED STAT DISTRICT COURT, CENTRAL DISTRICT OF .IFORNIA CIVIL COVER SHEET

I. (a) PLAINTIFFS ( Check box if you are representing yourself )

PIPE RESTORATION TECHNOLOGIES, LLC, a Nevada Limited Liability Company; ACE DURAFLO SYSTEMS, LLC. a Nevada Limited Liability Company; and PIPE RESTORATION, INC., a California Corporation,

tb) Attorneys (Firm Name, Address and Telephone Number. If you are representing yourself, provide same.)

Ronald P. Oines SBN 145016 / Chelsea A. Epps SBN 261026

RUTAN & TUCKER, LLP 611 Anton Boulevard, Fourteenth Floor Costa Mesa, CA 92626 Telephone: 714-641-5100

DEFENDANTS ( Check box if you are representing yourself Ej )

COAST BUILDING & PLUMBING, INC., a California Corporation d/b/a PIPELINE RESTORATION, PIPELINE RESTORATION SERVICES, and PIPELINE RESTORATION SERVICES, INC; ROY TERRY, an individual; and DOES 1 through 10, inclusive, (b) Attorneys (Firm Name, Address and Telephone Number. If you are representing yourself, provide same.)

II. BASIS OF JURISDICTION (Place an X in one box only.)

111. U.S. Government a 3. Federal Question (U.S. Government Not a Party)

1-14. Diversity (Indicate Citizenship of Parties in Item III)

III. CITIZENSHIP OF PRINCIPAL PARTIES-For Diversity Cases Only (Place an X in one box for plaintiff and one for defendant)

PTF DEF

Citizen of This State 1 El 1

Citizen of Another State 2 El 2 Plaintiff

E] 2. U.S. Government Defendant

Citizen or Subject of a Foreign Country El 3 El 3 Foreign Nation El 6 [11 6

IV. ORIGIN (Place an X in one box only.) 1. Original El 2. Removed from El 3. Remanded from

Proceeding State Court Appellate Court El 4. Reinstated or LIII 5. Transferred from Another Cl 6. Multi- District

Reopened

District (Specify) Litigation

V. REQUESTED IN COMPLAINT: JURY DEMAND:

Yes El No (Check "Yes" only if demanded in complaint.)

CLASS ACTION under F.R.Cv.P. 23: El Yes No

MONEY DEMANDED IN COMPLAINT: $ According to Proof.

VI. CAUSE OF ACTION (Cite the U.S. Civil Statute under which you are filing and writes brief statement of cause. Do not cite jurisdictional statutes unless diversity.)

This is an action involving claims of patent infringement under Title 35, United States Code, unfair competition under the Lanham Act, 15 U.S.C. §§ 1051 et seq., and claims for unfair competition under California statutory law.

VII. NATURE OF SUIT Place an X in one box onl y). OTHER STATUTES CONTRACT REAL PROPERTY CONT. IMMIGRATION PRISONER PETITIONS PROPERTY RIGHTS

LII 375 False Claims Act

400 State Reapportionment

LI 410 Antitrust

Lii 430 Banks and Banking

LII 450 Commerce/ICC Rates/Etc.

Lii 460 Deportation

LI 470 Racketeer Influ- enced & Corrupt Org.

480 Consumer Credit

490 Cable/Sat TV

850 Securities/Corn- modities/Exchange

890 Other Statutory Actions

891 Agricultural Acts

893 Environmental Matters

895 Freedom of Info.Act

896 Arbitration

899 Admin. Procedures Act/Review of Appeal of Agency Decision

950 Constitutionality of State Statutes

110 Insurance

120 Marine

130 Miller Act

140 Negotiable Instrument

LI 150 Recovery of Overpayment & Enforcement of Judgment

151 Medicare Act

240 Torts to Land

Liability 245 Tort Product

290 All Other Real Property

462 Naturalization Application

465 Other Immigration Actions

Habeas Corpus: 463 Alien Detainee

510 Motions to Vacate Sentence

820 Copyrights

gl. 830 Patent

840 Trademark IIII 530 General

TORTS 535 Death Penalty

Other:

540 Mandamus/Other

SOCIAL SECURITY TORTS PERSONAL PROPERTY 861 HIA (1395ff)

862 Black Lung (923)

863 DIWC/DIWW (405 (g))

864 SSID Title XVI

865 RSI (405 (g))

PERSONAL INJURY L 370 Other Fraud

371 Truth in Lending

380 Other Personal Property Damage

385 Property Damage Product Liability

LA 310 Airplane

315 Airplane Product Liability 320 Assault, Libel & Slander 330 Fed. Employers' Liability

340 Marine

345 Marine Product Liability

350 Motor Vehicle

355 Motor Vehicle Product Liability

360 Other Personal Injury 362 Personal Injury- Med Malpratice 365 Personal Injury- Product Liability

367 Health Care/ Pharmaceutical Personal Injury Product Liability 368 Asbestos Personal Injury Product Liability

INEN

550 Civil Rights

555 Prison Condition

560 Civil Detainee Conditions of Confinement

IIII 152 Recovery of Defaulted Student Loan (Excl. Vet.)

153 Recovery of Overpayment of Vet. Benefits

160 Stockholders' Suits

190 Other Contract

195 Contract Product Liability

196 Franchise

FEDERAL TAX SUITS BANKRUPTCY FORFEITURE/PENALTY 870 Taxes (U.S. Plaintiff or

Defendant)

[1 871 IRS-Third Party 26 USC 7609

ii 422 Appeal 28 USC 158 423 Withdrawal 28 USC 157

625 Drug Related Seizure of Property 21 USC 881

690 Other CIVIL RIGHTS

440 Other Civil Rights

441 Voting

442 Employment

443 Housing/ Accomodations

445 American with Disabilities-Employment 446 American with Disabilities-Other

LABOR

[1 71 b Fair Labor Standards Act 720 Labor/Mgmt. Relations

740 Railway Labor Act

1_1r---1

751 Family and Medical Leave Act 790 Other Labor Litigation

791 Employee Ret. Inc. Security Act

REAL PROPERTY m MI 210 Land

Condemnation

220 Foreclosure

230 Rent Lease & Ejectment U448 Education

FOR OFFICE USE ONLY: Case Number:

AFTER COMPLE I INS C V1M-F a THE INFORMATION REQUESTED ON PAGE 2.

CV-71 (02/13)

CIVIL COVER SHEET

Page 1 of 2

Case 8:13-cv-00499-CJC-RNB Document 1 Filed 03/28/13 Page 15 of 16 Page ID #:15

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California County outside of this District; State, if other than California; or Foreign Country

County in this District:"

Orange County

UNITED ST/ _S DISTRICT COURT, CENTRAL DIST, T OF CALIFORNIA CIVIL COVER SHEET

VIII(a). IDENTICAL CASES: Has this action been previously filed in this court and dismissed, remanded or closed? NO El YES

If yes, list case number(s):

VIII(b). RELATED CASES: Have any cases been previously filed in this court that are related to the present case? NO LII YES

If yes, list case number(s):

Civil cases are deemed related if a previously filed case and the present case:

(Check all boxes that apply) Li A. Arise from the same or closely related transactions, happenings, or events; or

El B. Call for determination of the same or substantially related or similar questions of law and fact; or

El C. For other reasons would entail substantial duplication of labor if heard by different judges; or

LII D. Involve the same patent, trademark or copyright, and one of the factors identified above in a, b or c also is present.

IX. VENUE: (When completing the following information, use an additional sheet if necessary.)

(a) List the County in this District; California County outside of this District; State if other than California; or Foreign Country, in which EACH named plaintiff resides.

El Check here if the government, its agencies or employees is a named plaintiff. If this box is checked, go to item (b).

County in this District:* California County outside of this District; State, if other than California; or Foreign Country

Ace Duraflo Systems, LLC and Pipe Restoration, Inc. reside in Orange County

Pipe Restoration Technologies resides in Las Vegas, Nevada

(b) List the County in this District; California County outside of this District; State if other than California; or Foreign Country, in which EACH named defendant resides.

Check here if the government, its agencies or employees is a named defendant. If this box is checked, go to item (c).

(c) List the County in this District; California County outside of this District; State if other than California; or Foreign Country, in which EACH claim arose, NOTE: In land condemnation cases, use the location of the tract of land involved.

County in this District:* California County outside of this District; State, if other than California; or Foreign Country

....r .. ...., *Los Angele ange, San Berne ino, Riverside, Ventura, Santa Barbara, or San Luis Obispo Counties Note: In Ian condemnation cas , use the location of the tract of land in re-145d

DATE: March 28, 2013 X. SIGNATURE OF ATTORNEY (OR SELF-REPRESENTED LITIGANT):

Ro Id P. OA

Notice to Counsel/Parties: The CV-71 (JS-44) Civil Cover Sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law. This form, approved by the Judicial Conference of the United States in September 1974, is required pursuant to Local Rule 3-1 is not filed but is used by the Clerk of the Court for the purpose of statistics, venue and initiating the civil docket sheet. (For more detailed instructions, see separate instructions sheet). Key to Statistical codes relating to Social Security Cases:

Nature of Suit Code Abbreviation

861 HIA

862 BL

863 DIWC

863 DIVVW

864 SSID

865 RSI

Substantive Statement of Cause of Action All claims for health insurance benefits (Medicare) under Title 18, Part A, of the Social Security Act, as amended. Also, include claims by hospitals, skilled nursing facilities, etc., for certification as providers of services under the program. (42 U.S.C. 1935FF(b))

All claims for "Black Lung" benefits under Title 4, Part B, of the Federal Coal Mine Health and Safety Act of 1969. (30 U.S.C. 923)

All claims filed by insured workers for disability insurance benefits under Title 2 of the Social Security Act, as amended; plus all claims filed for child's insurance benefits based on disability. (42 U.S.C, 405 (g))

All claims filed for widows or widowers insurance benefits based on disability under Title 2 of the Social Security Act, as amended. (42 U.S.C. 405 (g))

All claims for supplemental security income payments based upon disability filed under Title 16 of the Social Security Act, as amended.

All claims for retirement (old age) and survivors benefits under Title 2 of the Social Security Act, as amended. (42 U.S.C. 405 (g))

CV-71 (02/13) CIVIL COVER SHEET Page 2 of 2

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