IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION ORIGINAL COMPLAINT

Transcription

1 Case 4:11-cv Document 1 Filed in TXSD on 01/26/11 Page 1 of 8 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION F. B. LACY V. CA REPUTABLE RARE COINS, LLC and TORY HUGHES ORIGINAL COMPLAINT TO THE HONORABLE JUDGE: COMES NOW Plaintiff, F. B. Lacy and files his Original Complaint and complain of Tory Hughes and Reputable Rare Coins L.L.C. (Defendants), and for cause of action allege by way of this Original Complaint, as follows: 1. This is claim involving diverse citizens and is brought pursuant to 28 U.S.C Plaintiff, F. B. Lacy is an individual residing in the State of Texas. 3. The Defendant, Tory Hughes, is a resident of a state other than the State of Texas and is presently doing business in the State of Texas. Therefore, Tory Hughes, in accordance with the provisions of Tex. Civ. Prac. and Rem. Code , appointed the Secretary of the State of Texas as his agent for service of process. 1

2 Case 4:11-cv Document 1 Filed in TXSD on 01/26/11 Page 2 of 8 Service of process on Tory Hughes may be forwarded to Tory Hughes at his regular place of business th Circ NE, Blaine, Minnesota The Defendant, Reputable Rare Coins L.L.C., is foreign corporation of a state other than the State of Texas and is presently doing business in the State of Texas. Therefore, Reputable Rare Coins L.L.C., in accordance with the provisions of Tex. Civ. Prac. and Rem. Code , appointed the Secretary of the State of Texas as his agent for service of process. Service of process on may be forwarded to Reputable Rare Coins L.L.C. through its registered agent Tory Hughes, at th Circ NE, Blaine, Minnesota On or about September 27-28, 2010, F. B. Lacy entered into an agreement where F. B. Lacy tendered gold coins in Houston, Texas to Defendants though its agent Dick Quitmeyer of Yellow River Rare Coins for appraisal only. Plaintiff gave specific instructions that the coins were tendered for appraisal only and that the coins were not to be sold. However, contrary to the agreement Defendants caused the coins to be sold by Dick on September 29, 2010 for the sum of $295,625. Dick tendered the sum of 5204, to Defendants and with held $91, Dick eventually forwarded to Plaintiff through his attorney the sum of $91, in exchange for a partial release of claim. However, the sum of?

3 Case 4:11-cv Document 1 Filed in TXSD on 01/26/11 Page 3 of 8 $204,564.20, the balance of the purchase price has never been tendered to Plaintiff. 6. Plaintiff became aware of the intent of Defendants to go beyond the authorization of Plaintiff and sell the coins without Plaintiffs authorization and without compensation to Plaintiff and to divert the sale proceeds to themselves. Defendants intended to divert the funds to themselves by conversion, breach of contract, misrepresentation, and fraud to the damage of Plaintiff. 7. Because of the intentional misconduct of Defendants, Plaintiff has been deprived of his property. 8. All conditions precedent to Plaintiffs, F. B. Lacy right to bring this claim has been performed or has occurred. Breach of Contract 9. The allegations set forth above are incorporated herein by reference as if set forth at length. 10. In connection with the above facts and circumstances. Defendants have breached its agreement with Plaintiff and have therefore damaged F. B. Lacy, as described below. Conversion

4 Case 4:11-cv Document 1 Filed in TXSD on 01/26/11 Page 4 of The allegations set forth above are incorporated herein by reference as if set forth at length. Plaintiff demanded from Defendants the funds to which Plaintiff are entitled. Defendants refused to turnover the funds to Plaintiff and refused to pay any amounts to Plaintiff. By such refusal. Defendants has unlawfully and without authority assumed dominion and control over these funds to the exclusion of or inconsistent with Plaintiffs rights in to the funds. Defendants' conversion of the funds has damaged Plaintiff, as described below. 12. Defendants' conversion of the funds was fraudulent or malicious, and, accordingly, Plaintiff request that exemplary damages be awarded against Defendants. Fraud 13. The allegations set forth above are incorporated herein by reference as if set forth at length. In connection with the above facts and circumstances, after Plaintiff had performed their obligations pursuant to the agreement with Plaintiff, Defendants falsely represented to Plaintiff that the coins would not be sold but that they would only be appraised. Defendants' representations were known to be false when made and were intended to induce the reliance of Plaintiff. Plaintiff justifiably relied upon these representations and tendered the coins to Defendants for appraisal. Defendants however, immediately caused the coins to be sold without any 4

5 Case 4:11-cv Document 1 Filed in TXSD on 01/26/11 Page 5 of 8 authorization from Plaintiff. Defendants' fraudulent conduct has damaged F. B. Lacy, as described below. 14. Defendants acted knowingly or with intent to cause injury to F. B. Lacy, and accordingly Plaintiff request that exemplary damages be awarded against Defendants. Negligence 15. The allegations set forth above are incorporated herein by reference as if set forth at length. After Plaintiff tendered the coins to Defendants for appraisal pursuant to their agreement, Defendants owed a duty to Plaintiff to ensure that the gold remained within the possession or control of Defendants and was not sold unless authorized by Plaintiff. Additionally, once sold, albeit without authorization, Defendant had a duty to assure that the proceeds from the sale of the coins were properly disbursed. Defendants breach of that duty has damaged F. B. Lacy, as described below. Quantum Meruit and Unjust Enrichment 16. The allegations set forth above are incorporated herein by reference as if set forth at length. Defendants wrongfully retained the proceeds from the sale of Plaintiff coins. By selling Plaintiffs gold coins Defendants impliedly agreed they would pay Plaintiff the sale proceeds it received. For such sale proceeds, Plaintiff 5

6 Case 4:11-cv Document 1 Filed in TXSD on 01/26/11 Page 6 of 8 seek recovery in this action. Defendants has been unjustly enriched through its wrongful retention of the sale proceeds. For the value of such unjust enrichment, Plaintiff seeks recovery in this action. Damages 17. F. B. Lacy has been damaged by the breaches of contract and tortious conduct of Defendants described above. In particular, Defendants owe all amounts received from the sale of the gold coins made the subject of this case and all damages proximately caused by the tortious conduct of Defendants, and all general damages, consequential and incidental damages flowing from the wrongful actions of Defendants, and punitive damages. F. B. Lacy's damages also include attorney's fees and other costs of collection occasioned by Defendants' breaches and tortious conduct described herein. Finally, Defendants owe interest on the amounts described herein, both in law and in equity. Attorney's Fees 18. As a result of Defendants' conduct complained of herein, F. B. Lacy has employed the services of attorneys. Plaintiff request recovery of its reasonable attorney's fees incurred in the prosecution of this case. 6

7 Case 4:11-cv Document 1 Filed in TXSD on 01/26/11 Page 7 of 8 J. Jury Demand 19. Plaintiff F. B. Lacy request a jury trial and have tendered the appropriate fee. WHEREFORE, premises considered, F. B. Lacy, Plaintiff, pray that a judgment be entered against Defendants, in favor of Plaintiff as follows: a. Judgment for Plaintiff against Defendants jointly and severally in an amount to be determined by the trier of fact; but in the sum of at least $204,564.20; b. Pre-judgment, post-judgment interest as provided by law or contract and costs of suit; c. Reasonable attorney's fees as provided by law or contract; d. Exemplary damages; e. Such further relief, in law or equity to which they may be justly entitled. 7

8 Case 4:11-cv Document 1 Filed in TXSD on 01/26/11 Page 8 of 8 Respectfully submittadf _tz. ErnestM. PoWell, III SDTX Highway 6 N., Suite 102 Houston, Texas (281) emest@kplaw-us.com Attorney for Plaintiff 8