The Facebook, Inc. v. Connectu, Inc et al

Filing 781

DOCUMENT E-FILED UNDER SEAL re 773 Order on Administrative Motion to File Under Seal, CONSOLIDATED OPPOSITION TO: 1) MOTION OF CONNECTU FOUNDERS TO PAY LIENHOLDERS AND COMPLETE EXCHANGE OF CONSIDERATION (DKT NO. 777); 2) QUINN EMANUELS MOTION FOR AN ORDER DISBURSING SETTLEMENT PROCEEDS (DKT. NO. 775); AND 3) MOTION FOR DISBURSEMENT OF SETTLEMENT PROCEEDS TO FINNEGAN HENDERSON (DKT. NO. 776) by The Facebook, Inc., Mark Zuckerberg. (Attachments: # 1 Proposed Order)(Chatterjee, Indra) (Filed on 11/7/2011)

The Facebook, Inc. v. Connectu, LLC et al

Doc. 781

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BERNARD P. LAHDE (SBN 71579) JON A. HEABERLIN (SBN 199810) RANKIN, LANDSNESS, LAHDE, SERVERIAN & STOCK 96 No. Third Street, Suite 500 San Jose, California 95112 [phone] Attorneys for Defendants STEVE RUEL and DONN SCOTT THOMPSON IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

WASHINGTON INVESTMENT GROUP, LLC, Plaintiffs, vs. STEVE RUEL and DONN SCOTT THOMPSON, Defendants.

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Case No. C05-00573 RS ? Click here to copy title to footer DECLARATION OF STEVE RUEL

I, Steve Ruel, declare: 1. I am a defendant in this matter and a manager of SSL, LLC. SLL, LLC is a

company which provides retaining walls and other engineering-related services in multiple states. As to each matter stated herein, I have personal knowledge thereof and can testify competently thereto; except as to those matters stated upon information and belief, I am informed and believe them to be true. 2. On or about January 12, 2005, my office received a letter dated January 11,

2005, from David I. Kornbluh, Esq., attorney for Plaintiff. A true and correct copy of the letter is attached hereto as Exhibit "A". In it Mr. Kornbluh alleged that my interests and Scott Thompson's interests in other various entities constitute a breach of the SSL Operating Agreement and a breach of fiduciary duties. 3. On or about January 26, 2005, my office received another letter (dated January

25, 2005) from Mr. Kornbluh. A true and correct copy of the letter is attached hereto as
1 Declaration Of Steve Ruel

Dockets.Justia.com

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Exhibit "B". In the letter Mr. Kornbluh demanded arbitration to resolve the claims Plaintiff was making against myself and Scott Thompson. Mr. Kornbluh requested that his office be contacted to arrange for an arbitrator and arbitration procedure by February 2, 2005, or else he would file a lawsuit in order to compel arbitration. 4. I responded to Mr. Kornbluh in a letter dated January 27, 2005, a true and correct

copy of which is attached hereto as Exhibit "C". I was responding on Scott Thompson's behalf as well. In the letter I suggested that Plaintiff's claims did not implicate Section 13.2 of the Operating Agreement (Arbitration of Certain Claims) yet. I believed that the nature of the claims being made by Plaintiff did not yet warrant formal arbitration and that the claims could be resolved through negotiations or less formal proceedings. I therefore stated my belief that Section 13.2 did not apply because I believed that Plaintiff's claims were such that they could be "settled by mutual agreement or negotiation between the Members," according to the language of Section 13.2. Scott Thompson and I were also concerned about the legal expense which would result from a formal arbitration proceeding and wanted to encourage Plaintiff to attempt resolution - without lawyers if possible - prior to instituting arbitration. However, I did not intend by any remarks in the letter of January 27, 2005 to reject Plaintiff's demand for arbitration or to waive my and Scott Thompson's right to arbitration. In fact, in the very next sentence of the letter we stated that we were "amenable to resolve this matter by mediation or arbitration." 5. Neither I nor Scott Thompson have ever said that we wouldn't arbitrate any

claims brought by Plaintiff. I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge, information and belief. Executed this 21st day of March, 2005, at the City of Scotts Valley, County of Santa Cruz, State of California. /s/ Steve Ruel STEVE RUEL

2 Declaration Of Steve Ruel