Asia Economic Institute et al v. Xcentric Ventures LLC et al

Filing 121

DECLARATION of Lisa J. Borodkin in support of MOTION for Reconsideration re Order,, 94 118 filed by Plaintiffs Asia Economic Institute, Iliana Llaneras, Raymond Mobrez. (Attachments: # 1 Exhibit 1 ("Second Questionnaire" for CAP applicants, # 2 Declaration Exhibit 2 (Declaration of Kenton Hutcherson and Exhibits), # 3 Exhibit 3 (Non-confidential Settlement Agreement), # 4 Exhibit 4 (August 3, 2010 email), # 5 Exhibit 5 (Report dated August 6, 2010))(Blackert, Daniel)

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DANIEL F. BLACKERT, CSB No. 255021 LISA J. BORODKIN, CSB No. 196412 Asia Economic Institute LLC 11766 Wilshire Boulevard Suite 260 Los Angeles, California 90025 Telephone [phone]/Facsimile [phone] [e-mail] [e-mail] Attorneys for Plaintiffs, UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA ) ) ) ) ) ) Plaintiffs, ) ) vs. ) ) XCENTRIC VENTURES, LLC, an Arizona LLC, d/b/a as BADBUSINESS ) ) BUREAU and/or ) BADBUSINESSBUREAU.COM ) and/or RIP OFF REPORT and/or ) RIPOFFREPORT.COM; BAD ) BUSINESS BUREAU, LLC, organized ) ) and existing under the laws of St. ) Kitts/Nevis, West Indies; EDWARD MAGEDSON an individual, and DOES ) ) 1 through 100, inclusive, ) ) Defendants. ) ) ASIA ECONOMIC INSTITUTE, a California LLC; RAYMOND MOBREZ an individual; and ILIANA LLANERAS, an individual, Case No.: 2:10-cv-01360-SVW-PJW The Honorable Stephen V. Wilson DECLARATION OF LISA J. BORODKIN IN SUPPORT OF MOTION FOR RECONSIDERATION OF ORDER GRANTING PARTIAL SUMMARY JUDGMENT ON PLAINTIFFS RICO CLAIMS PREDICATED ON EXTORTION AND FOR RECONSIDERATION OF ORDER DENYING RELIEF UNDER RULE 56(F) Date: Time: Ctrm: September 20, 2010 1:30 p.m. 6

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Decl. of Lisa J. Borodkin in support of Motion for Reconsideration -

10-CV-1360

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I, Lisa J. Borodkin, declare: 1. I am an attorney at law, duly admitted to practice before all the courts of the State of California and this Honorable Court. I am co-counsel of record for Plaintiffs Asia Economic Institute LLC, Raymond Mobrez and Iliana Llaneras ("Plaintiffs") in this action. I have first-hand, personal knowledge of the facts set forth below and, if called as a witness, I could and would testify competently thereto. 2. This Declaration is made in support of Plaintiffs' Motion for Motion For Reconsideration Of Order Granting Partial Summary Judgment On Plaintiffs Rico Claims Predicated On Extortion And For Reconsideration Of Order Dnying Relief Under Rule 56(f) pursuant to Federal Rule of Civil Procedure 59(e) or in the alternative Rule 60. 3. July 13, 2010. 4. Attached hereto as Exhibit "2" is a true and correct copy of the Declaration of Kenton J. Hutcherson dated July 20, 2010 authenticating emails confirming that Defendants took down or deactivated Reports in compliance with a settlement agreement in which fees were exchanged. Mr. Hutcherson first informed Plaintiffs' counsel of the existence of the facts contained in Exhibit 2 in a phone call on July 16, 2010. 5. Attached hereto as Exhibit "3" is a copy of what has been represented to Plaintiffs' counsel as the settlement agreement referred to in Exhibit 2, between Defendants and the counterparty thereto. 6. At a July 20, 2010 informal settlement discussion, Defendant Ed Magedson looked at me and told me that Ripoff Reports happen to everyone, and said "It will happen to you." On July 20, 2010, Defendant Ed Magedson also approached me physically and told me "You're going to be on the cover of my
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Attached hereto as Exhibit "1" is a true and correct copy of the

Second Questionnaire provided by Defendants to Plaintiffs for the first time on

Decl. of Lisa J. Borodkin in support of Motion for Reconsideration -

10-CV-1360

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book," which I later came to understand is a book about his dissatisfaction with lawyers. 7. These threats were unprovoked. I do not bear any personal animosity towards Mr. Magedson, nor have I ever exhibited any. As my clients and co-counsel are aware, I have repeatedly expressed that I share and respect Mr. Magedson's passion for First Amendment liberties, particularly on the Internet. 8. Defendants counsel have threatened Plaintiffs' counsel with a variety of retaliatory actions ranging from a lawsuit in Arizona for abuse of process, and a future lawsuit for malicious prosecution. The threats of a lawsuit against Mr. Blackert and me personally were made most recently on July 20, 2010 at a conference between Ms. Speth, Mr. Gingras, Mr. Kunz, Mr. Blackert and myself. 9. Defendants' counsel expressly offered that they would be willing to release future claims of a lawsuit for malicious prosecution that have not yet ripened on July 20, 2010. Defendants' counsel offered a release of the future claims for malicious prosecution and abuse of process threatened against Mr. Blackert and me personally if we would effect an immediate settlement of the case between our clients and Defendants for a payment of either $35,000 or $50,000 from our clients, which Defendants' counsel referred to as attorneys' fees. The numbers proposed seemed arbitrary and did not seem to reflect actual legal billings, since Ms. Speth proposed $35,000 and Mr. Kunz proposed $50,000. 10. A true and correct copy of an August 3, 2010 email and attachment I received from Kenton Hutcherson is attached hereto as Exhibit "4." The attachment threatens to create a "Hall of Shame" for Mr. Hutcherson for Mr. Hutcherson's past conduct in providing Plaintiffs with a declaration and issuing a press release about same.

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Decl. of Lisa J. Borodkin in support of Motion for Reconsideration -

10-CV-1360

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11. Subsequently, on or about August 6, 2010, Defendants personally posted a Rip-Off Report themselves about Mr. Hutcherson as Report Number 629379, a copy of which is attached hereto as Exhibit "5." I declare under penalty of perjury under the laws of the State of California and the United States of America that the foregoing is true and correct. Executed this 16th day of August, 2010, in Los Angeles, California. /s/ Lisa J. Borodkin Lisa J. Borodkin

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Decl. of Lisa J. Borodkin in support of Motion for Reconsideration -

10-CV-1360