JLG Enterprises, Inc. v. Excalibur Sires, Inc.

Filing 56

STIPULATION and ORDER re First Amended Answer and Counter Claim signed by Magistrate Judge Sheila K. Oberto on 4/4/2011. (Timken, A)

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 GREGORY L. MYERS (SBN 95743) LAW OFFICES OF GREGORY L. MYERS 5 River Park Place West, Suite 204 Fresno, California 93720 Email: greg@nz-law.com Telephone: (559) 225-2200 Facsimile: (559) 225-2295 Attorneys for Defendant Excalibur Sires, Inc. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA JLG ENTERPRISES, INC., a California corporation, Plaintiff, v. EXCALIBUR SIRES, INC, a Minnesota corporation, and DOES 1 through 25 inclusive, Defendants. CASE NO. 1:10-cv-02138-AWI-SKO STIPULATION RE: FIRST AMENDED ANSWER AND COUNTER CLAIM IT IS HEREBY STIPULATED by the parties through their attorneys of record and approved by the Court as follows: /// /// /// /// 24 25 26 27 28 Page 1 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended /// /// /// 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 The Defendant and Cross Claimant, Excalibur Sires, Inc will file and proceed under the defenses and allegations of its First Amended Answer and Counter Claim a copy of which is attached hereto as Exhibit "A." DATED: April 1, 2011 By: /s/ Gregory L. Myers GREGORY L. MYERS Attorney for Excalibur Sires, Inc. DATED: April 1, 2011 By: /s/ Eric J. Sousa ERIC J. SOUSA Attorney for JLG Enterprises, Inc. IT IS SO ORDERED. Dated: April 4, 2011 /s/ Sheila K. Oberto UNITED STATES MAGISTRATE JUDGE Page 2 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended 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 EXHBIT A GREGORY L. MYERS (SBN 95743) LAW OFFICES OF GREGORY L. MYERS 5 River Park Place West, Suite 204 Fresno, California 93720 Email: greg@nz-law.com Telephone: (559) 225-2200 Facsimile: (559) 225-2295 Attorneys for Defendant Excalibur Sires, Inc. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA JLG ENTERPRISES, INC., a California corporation, Plaintiff, v. EXCALIBUR SIRES, INC, a Minnesota corporation, and DOES 1 through 25 inclusive, Defendants. CASE NO. 1:10-cv-02138-AWI-SKO FIRST AMENDED ANSWER AND COUNTER CLAIM Defendant Excalibur Sires, Inc. ("Excalibur") hereby answers Plaintiff JLG Enterprises, Inc.'s ("JLG") Complaint as follows: GENERAL ALLEGATIONS 1. On information and belief, Excalibur admits that JLG is a corporation duly organized and existing under the laws of the State of California with its principal place of business located at 11116 Sierra Road, Oakdale, Stanislaus County, California. Excalibur is without sufficient knowledge or information to admit or deny that JLG is, and at all times herein mentioned was, engaged in the business of providing, for a fee, boarding, feeding, veterinary and general health services (hereafter "Livestock Services") to bulls boarded at its facility, and on Page 3 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended 1 2 3 4 5 6 7 8 9 10 11 those grounds denies the same. 2. Excalibur admits that it is a corporation duly organized and existing under the laws of the State of Minnesota with its principal place of business located at 1202 ½ 7th Street, NW #211, Rochester, Minnesota. Excalibur denies the remaining allegations in Paragraph 2 of the Complaint. 3. Excalibur denies the allegations in Paragraph 3 of the Complaint. To the extent Paragraph 3 of the Complaint purports to state legal conclusions, no answer is necessary. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 3 of Plaintiff's Complaint. 4. Excalibur denies the allegations in Paragraph 4 of the Complaint. To the extent Paragraph 4 of the Complaint purports to state legal conclusions, no answer is necessary. To the extent that any further response is deemed to be required, Excalibur denies the remaining 12 allegations in Paragraph 4 of Plaintiff's Complaint. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 4 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended 5. Excalibur denies the allegations in Paragraph 5 of the Complaint. To the extent Paragraph 5 of the Complaint purports to state legal conclusions, no answer is necessary. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 5 of Plaintiff's Complaint. 6. Excalibur is without sufficient knowledge or information to admit or deny the allegations in Paragraph 6 of the Complaint and on those grounds denies the same. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 6 of Plaintiff's Complaint. FIRST CAUSE OF ACTION (Breach of Contract to Provide Livestock Services) 7. 8. Excalibur denies the allegations in Paragraph 7 of the Complaint. Paragraph 8 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. Excalibur admits that on or about January 26, 1994, Plaintiff and Excalibur entered into an oral agreement. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 8 of 1 2 3 4 5 6 7 8 9 10 11 Plaintiff's Complaint. 9. 10. Excalibur denies the allegations of Paragraph 9 of Plaintiff's Complaint. Paragraph 10 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that a response is deemed to be required, Excalibur denies the allegations of Paragraph 10 of Plaintiff's Complaint. 11. Paragraph 11 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that a response is deemed to be required, Excalibur denies the allegations of Paragraph 11 of Plaintiff's Complaint. 12. Paragraph 12 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that a response is deemed to be required, Excalibur denies the allegations of Paragraph 12 of Plaintiff's Complaint. SECOND CAUSE OF ACTION 12 (Unjust Enrichment) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 5 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended 13. 14. Excalibur denies the allegations in Paragraph 13 of the Complaint. Paragraph 14 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. Excalibur admits that on or about January 26, 1994, Plaintiff and Excalibur entered into an oral agreement. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 14 of Plaintiff's Complaint. 15. 16. 17. Excalibur denies the allegations in Paragraph 15 of the Complaint. Excalibur denies the allegations in Paragraph 16 of the Complaint. Paragraph 17 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 17 of Plaintiff's Complaint. THIRD CAUSE OF ACTION (Common Count ­ Account Stated) 18. Excalibur denies the allegations in Paragraph 18 of the Complaint. 1 2 3 4 5 6 7 8 9 10 11 19. Paragraph 19 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 19 of Plaintiff's Complaint. 20. 21. Excalibur denies the allegations in Paragraph 20 of the Complaint. Paragraph 21 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 21 of Plaintiff's Complaint. FOURTH CAUSE OF ACTION (Common Count ­ Open Book Account) 22. 12 13 Excalibur denies the allegations in Paragraph 22 of the Complaint. Paragraph 23 of Plaintiff's Complaint asserts legal conclusions and other 23. characterizations to which no response is required. To the extent that any further response is 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 6 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended deemed to be required, Excalibur denies the remaining allegations in Paragraph 23 of Plaintiff's Complaint. 24. Paragraph 24 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 24 of Plaintiff's Complaint. 25. 26. Excalibur denies the allegations in Paragraph 25 of the Complaint. Paragraph 26 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 26 of Plaintiff's Complaint. FIFTH CAUSE OF ACTION 27. 28. Excalibur denies the allegations in Paragraph 27 of the Complaint. Excalibur denies the allegations in Paragraph 28 of the Complaint. 1 2 3 4 5 6 7 8 9 10 11 12 29. 30. Excalibur denies the allegations in Paragraph 29 of the Complaint. Paragraph 30 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 30 of Plaintiff's Complaint. SIXTH CAUSE OF ACTION (Common Count ­ Quantum Meruit) 31. 32. 33. 34. Excalibur denies the allegations in Paragraph 31 of the Complaint. Excalibur denies the allegations in Paragraph 32 of the Complaint. Excalibur denies the allegations in Paragraph 33 of the Complaint. Excalibur admits that it agreed to pay a fee for the reasonable value of services actually performed by Plaintiff. Excalibur denies the remaining allegations in Paragraph 34 of the Complaint. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 7 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended 35. 36. Excalibur denies the allegations in Paragraph 35 of the Complaint. Paragraph 36 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 36 of Plaintiff's Complaint. 37. Excalibur denies the allegations in Paragraph 37 of the Complaint. SEVENTH CAUSE OF ACTION (Enforcement of Livestock Services Lien ­ Civ. Code § 3080 et seq.) 38. 39. Excalibur denies the allegations in Paragraph 38 of the Complaint. Paragraph 39 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. Excalibur admits that on or about January 26, 1994, Plaintiff and Excalibur entered into an oral agreement. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 39 of Plaintiff's Complaint. 40. Excalibur denies the allegations in Paragraph 40 of the Complaint. 1 2 3 4 5 6 7 8 9 10 11 41. Paragraph 41 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 41 of Plaintiff's Complaint. 42. Paragraph 42 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 42 of Plaintiff's Complaint. 43. Paragraph 43 of Plaintiff's Complaint asserts legal conclusions and other characterizations to which no response is required. To the extent that any further response is deemed to be required, Excalibur denies the remaining allegations in Paragraph 43 of Plaintiff's Complaint. 12 13 PRAYER FOR RELIEF 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 8 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended FIRST AFFIRMATIVE DEFENSE (Failure to State a Claim) 1. 2. Excalibur denies the entirety of the Prayer for Relief in the Complaint. Excalibur denies all allegations in the Complaint not expressly admitted herein. 1. As a separate and affirmative defense to the Complaint, Excalibur alleges that Plaintiff fails to state facts sufficient to constitute a claim upon which relief can be granted. SECOND AFFIRMATIVE DEFENSE (Unclean Hands) 2. As a separate and affirmative defense to the Complaint, Excalibur alleges that Plaintiff's claims are barred by the equitable doctrine of unclean hands. THIRD AFFIRMATIVE DEFENSE (Breach of Contract) 3. As a separate and affirmative defense to the Complaint, Excalibur alleges that 1 2 3 4 5 6 7 8 9 10 11 Plaintiff's claims are barred, in whole or in part, by Plaintiff's breach of the contract between Plaintiff and Excalibur. FOURTH AFFIRMATIVE DEFENSE (Offset) 4. As a separate and affirmative defense to the Complaint, Excalibur alleges the right to offset any amounts owed to Plaintiff by amounts owed to Excalibur by Plaintiff. FIFTH AFFIRMATIVE DEFENSE (Unconscionability) 5. As a separate and affirmative defense to the Complaint, Excalibur alleges that Plaintiff's claims are barred, in whole or in part, because it would be unconscionable for Plaintiff to obtain damages for the alleged breach of contract, because of its having fraudulently induced Excalibur into entering into the agreement and because of its own breaches of the agreement. 12 SIXTH AFFIRMATIVE DEFENSE 13 (Unjust Enrichment) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 9 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended 6. As a separate and affirmative defense to the Complaint, Excalibur alleges that Plaintiff's claims are barred because any recovery in favor of Plaintiff would result in Plaintiff's unjust enrichment. SEVENTH AFFIRMATIVE DEFENSE (Comparative Fault) 7. As a separate and affirmative defense to the Complaint, Excalibur alleges that to the extent that Plaintiff has suffered any injury or damage, which Excalibur denies, such injury or damage was caused or contributed to by the negligence, fault, breach of contract, and/or other wrongful or tortious conduct of persons or entities other than Excalibur, including, without limitation, Plaintiff, or others, and said acts or omissions comparatively reduce the percentage of negligence, fault and/or liability, if any, of Excalibur. EIGHTH AFFIRMATIVE DEFENSE (Mutual Mistake) 8. As a separate and affirmative defense to the Complaint, Excalibur alleges that 1 2 3 4 5 6 7 8 9 10 11 12 Plaintiff's claims are barred because of the parties' reliance on mutually mistaken understanding of material facts. NINTH AFFIRMATIVE DEFENSE (Unilateral Mistake) 9. As a separate and affirmative defense to the Complaint, Excalibur alleges that Plaintiff's claims are barred because of Excalibur's reliance on a mistaken understanding of material facts based on Plaintiff's intentional or unintentional concealment and/or misrepresentation. TENTH AFFIRMATIVE DEFENSE (Estoppel) 10. As a separate and affirmative defense to the Complaint, Excalibur alleges that the Complaint and each purported cause of action therein is barred, in whole or in part, because by its conduct, representations, and omissions, Plaintiff is equitably estopped from asserting any 13 claim for relief against this Excalibur respecting the matters which are the subject of the 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 10 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended Complaint. ELEVENTH AFFIRMATIVE DEFENSE (Waiver) 11. As a separate and affirmative defense to the Complaint, Excalibur alleges that the Complaint and each purported cause of action therein is barred, in whole or in part, because by its conduct, representations, and omissions, Plaintiff has voluntarily waived, relinquished, and/or abandoned all claims for relief against Excalibur respecting its rights under the subject contract. TWELFTH AFFIRMATIVE DEFENSE (Acquiescence) 12. The claims asserted in the Complaint are barred, in whole or in part, by the doctrine of acquiescence. THIRTEENTH AFFIRMATIVE DEFENSE (Laches) 13. The claims asserted in the Complaint are barred, in whole or in part, by the 1 2 3 4 5 6 7 8 9 10 11 doctrine of laches. FURTEENTH AFFIRMATIVE DEFENSE (Failure to Mitigate) 14. As a separate and affirmative defense to the Complaint, Excalibur alleges that Plaintiff's claims are barred by virtue of its failure to mitigate his damages. COUNTERCLAIMS 3. Defendant and Counter-Claimant Excalibur Sires, Inc. is, and at all times mentioned herein was, a Minnesota corporation with its principal place of business located at 1202 ½ 7th Street, NW #211, Rochester, Minnesota. 4. 12 13 Plaintiff and Counter-Defendant JLG Enterprises, Inc. ("JLG") is, and at all times mentioned herein was, a corporation duly organized and existing under the laws of the State of California with its principal place of business located at 11116 Sierra Road, Oakdale, Stanislaus 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 11 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended County, California. JURISDICTION 5. This Court has jurisdiction over the subject matter of this counterclaim under 28 U.S.C. § 1332 because Plaintiff and Defendant are citizens of different states, and the amount in controversy exceeds $75,000. 6. Additionally, pursuant to 28 U.S.C. § 1367(a), this Court has supplemental jurisdiction over this counterclaim because the counterclaims arise out the same transactions or occurrences that is the subject matter of JLG's claims against Excalibur, and does not require adding another party over whom this Court cannot acquire jurisdiction. STATEMENT OF CASE 7. Excalibur does not have legal title to all of the bulls it uses in its business. Instead, most of the bulls are leased by Excalibur from dairy cattle producers ("Breeders") around the country. Unlike a traditional land or chattel lease wherein monthly or annual payments are made by the lessee to the lessor, the bull lease agreements provide for the payment of royalties from 1 2 3 4 5 6 7 8 9 10 11 the sale of the straws of semen produced by the bull. 8. 9. The proceeds from the sale of the straws of semen results in income to Excalibur. Excalibur has sole control and possession of the bulls as part of these lease agreements and has the right to direct the semen collection. 10. 11. Counter-Defendant JLG operates a boarding facility in California. For the past 17 years, based upon oral agreement entered into on or around January 26, 1994, Excalibur has boarded most of bulls it owns or has leased at JLG's boarding facility. In addition to boarding the bulls, JLG arranges for the extraction of semen. Once semen is collected from a particular bull, the semen is placed in "straws," which are frozen and stored at JLG's facilities. Dairy farmers then place orders--either through Excalibur, or by contacting JLG directly--for straws of semen from a specific bull. JLG then ships the straws containing the semen to the dairy farmers. 12 JLG Tortiously Interferes with Excalibur's Business 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 12 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended 12. Beginning in or around August 2010, JLG began refusing to ship orders from third parties requesting semen from Excalibur's bulls. On information and belief, there are currently approximately 100,000 straws of semen held at JLG's facility. 13. Excalibur has and continues to receive orders from dairy farmers and other customers ordering semen. Moreover, many additional dairy farmers and customers have informed Excalibur that they stand ready to order more semen as soon as it becomes available. 14. Historically, the fourth quarter of the year yields the highest number of sales. Because JLG has refused to ship semen since August 2010. 15. As JLG's refusal to fulfill semen orders extends, Excalibur has lost and continues to lose customers. 16. business. By refusing to fulfill its contractual obligations, JLG is destroying Excalibur's 17. On information and belief, this is exactly what JLG seeks to accomplish. 1 2 3 4 5 6 7 8 9 10 11 12 13 FIRST CLAIM FOR RELIEF (Negligence) 18. Excalibur herein incorporates by reference the allegations set forth in paragraphs 1 through 17 of the Counter-Claim. 19. In the early part of August 2010, JLG notified Excalibur that the bull, Colton, had died. At no time prior to Colton's death did JLG notify Excalibur that Colton was sick; nor, did JLG provide any veterinary or health services to Colton. 20. At all times relevant hereto, JLG had a duty to exercise reasonable care in the boarding, feeding, and provision of veterinary and health services to Excalibur's bulls that are and were housed at its facilities in Oakdale, California. 21. JLG failed to exercise ordinary care by failing provide veterinary and other health services to Colton and other bulls leased by Excalibur. 22. JLG's failure to provide veterinary and health services to Colton was the direct and proximate cause of the death of Colton. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 13 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended 23. The death of Colton caused damages to Excalibur including, but not limited to, lost profits amounting to approximately $1.5 million. SECOND CLAIM FOR RELIEF (Conversion of the Straws) 24. Excalibur herein incorporates by reference the allegations set forth in paragraphs 1 through 23 of the Counter-Claim. 25. At all times herein mentioned, Excalibur was, and still is, the owner of all the straws containing bull semen produced by bulls leased by Excalibur and housed at JLG's facility in Oakdale, California. 26. At all times herein mentioned, the personal property described above has been in the possession of JLG with whom Excalibur had left for safekeeping and storage. 27. Starting on or about August 2010, JLG began refusing to send orders for straws to third parties, or otherwise permit Excalibur to arrange to have the straws shipped to third party purchasers, and thereby converted it and its potential proceeds to its own use. 1 2 3 4 5 6 7 8 9 10 11 28. JLG's acts alleged above were willful, wanton, malicious and oppressive and justify the awarding of exemplary and punitive damages. THIRD CLAIM FOR RELIEF (Conversion of Bulls) 29. Excalibur herein incorporates by reference the allegations set forth in paragraphs 1 through 28 of the Counter-Claim. 30. At all times herein mentioned, Excalibur was, and still is, the leaseholder and is entitled to profits from the sale of the following bulls as well as the semen they produce: a. b. c. d. Hurtgen-Vue REALITY ­ RED: Registration No. 134690997; Timlynn SM Amory: Registration No. 134229357; Our-Favorite MARSH ­ ET: Registration No. 135705197; A-L-H Titanic ENZO: Registration No. 61898112; Regancrest Titanic DAREL-ET: Registration No. 61898118; Eskdale MOMENTOUS: Registration No. 136707781l; Scientific CBA DRAMA ­ ET: Registration No. 136903767; JZM Champion CHALLENGER ­ TW: Registration No. 62216719; Premier - S CYCLONE -RED-ET: Registration No. 61655861; Regancrestdl S RYKER ­ ET: Registration No. 61898421; Krull Mr Sam EDISON ­ ET: Registration No. 62702439; Budjon-JK MR ELIJAH ­ ET: Registration No. 137218273; Windy-Knoll-View PACIFIC-ET: Registration No. 137198261; Scientific LIGHTNING-RED ­ ET: Registration No. 137643471; E-Evans-A Allen RASCAL ­ ET: Registration No. 62613542; Regancrest Mac CADE-ET: Registration No. 62744605; Hnkes-Wessel ENFORCER-TW: Registration No. 63445911; Sandy-Valley Mr COMET-ET: Registration No. 63563713. 12 e. 13 f. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 14 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended g. h. i. j. k. l. m. n. o. p. q. r. 31. At all times herein mentioned, the bulls described above have been in the possession of JLG with whom Excalibur had contracted with for boarding and other services. 1 2 3 4 5 6 7 8 9 10 11 32. On information and belief, these 16 bulls have been sold or transferred to third parties and/or JLG is exercising wrongful dominion and control over these 16 bulls by refusing to allow Excalibur access to them or to direct the extraction of semen. 33. JLG's acts alleged above were willful, wanton, malicious and oppressive and justify the awarding of exemplary and punitive damages. FORTH CLAIM FOR RELIEF (Intentional Interference with Contractual Relations) 34. Excalibur herein incorporates by reference the allegations set forth in paragraphs 1 through 33 of the Counter-Claim. 35. Multiple valid contracts exist between Excalibur and various third party farmers whereby Excalibur must supply straws containing bull semen, and in exchange, the third party farmers pay Excalibur a fee. 12 13 purchasers of bulls' semen. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 15 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended parties. 36. JLG has knowledge of the agreements between Excalibur and the third party 37. JLG has intentionally refused to ship semen, or otherwise permit Excalibur to arrange for the shipment of semen, to third parties purchasers. 38. Excalibur has ongoing long term contracts with breeders of bulls which are, or were, in the possession of JLG. 39. JLG has knowledge of the agreements between Excalibur and the third party purchasers of bulls' semen. 40. JLG has interfered with those contractual relationships by selling, transferring ownership or destroying bulls without the authorization of Excalibur 41. JLG's actions have disrupted the contractual relationships with these third party 42. As a result of JLG's intentional and malicious interference, Excalibur has been damages in an amount to be proven at trial. PRAYER WHEREFORE, Counter-Complainant Excalibur prays for judgment against Counter- 1 2 3 4 5 6 7 8 9 10 11 Defendant JLG, as follows: 1. For judgment in favor of Excalibur and against JLG on each count of these Counterclaims; 2. 3. fact. For compensatory and actual damages according to proof at trial; For punitive and/or exemplary damages in an amount determined by the trier of 4. For a complete and accurate accounting of each of the following: a. If any bulls have been sold, transferred or moved from JLG's facility, an accounting of all details relating to that transfer. b. The number of straws of bull semen owned by Excalibur, and the name and identification number of the bull that produced each straw, which JLG currently has in its possession, custody or control. 12 c. 13 and identification number of the bull that produced each straw, which JLG 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 16 PDF created with pdfFactory trial version www.pdffactory.com Answer and Cross Claim Stipulation Re First Amended By: /s/ Gregory L. Myers GREGORY L. MYERS, Attorney for Excalibur Sires, Inc. DATED: APRIL 1, 2011 has had in its possession custody or control over the past two years. The number of straws of bull semen owned by Excalibur, and the name 5. 6. For attorneys' fees, costs and expenses incurred herein; and For such further relief as the court deems just and appropriate.

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