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FIRST AMENDED COMPLAINT FOR BREACH OF CONTRACT

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 6                        SUPERIOR COURT OF THE STATE OF WASHINGTON
                                IN AND FOR THE COUNTY OF KING
 7

 8    Christian Iovin and Asha Iovin, husband and
      wife,                                                     NO.
 9

10                   Plaintiffs,
             v.                                                 FIRST AMENDED COMPLAINT FOR
11                                                              BREACH OF CONTRACT,
      YS Development LLC, a Washington Limited                  MISREPRESENTATION, CONSUMER
12    Liability company; YS Bellevue 41st Street LLC, a         PROTECTION ACT, AND RECOVERY
      Washington Limited Liability company; Yuval               FROM LICENSE BOND
13    Sofer and the marital community comprised of
      Yuval Sofer and Iris Guy; and American
14
      Contractors Indemnity Co, Bond No.
15    100115959,

16                Defendants

17          COMES NOW, Christian Iovin and Asha Iovin, husband and wife ("Iovin") by and through

18   their undersigned attorneys, and for their Complaint allege as follows:

19                                   I. JURISDICTION AND PARTIES

20   1.     Iovin are husband and wife, residing in, and owning property within King County,

21          Washington.

22   2.     Defendant YS Development LLC (“YSD”) is a Washington limited liability company doing

23          business in King County, Washington. YSD's registration number is YSDEVDL922RN.

24   3.     Defendant YS Bellevue 41st Street LLC (“YSB”) is a Washington limited liability company

25          doing business in King County, Washington.
                                                                               A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                           Attorneys at Law
                                                                                 800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                                Suite 3825
                                                                                Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                 (206) 812-1414
                                                                               fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 1
 1   4.   Defendant American Contractors Indemnity Co is a foreign corporation, licensed to conduct

 2        surety insurance in the State of Washington. American Contractors Indemnity Co issued a

 3        statutory contractor's registration bond pursuant to the provisions of RCW 18.27 et. seq.,

 4        naming YSD as principal, said bond having the number 100115959.

 5   5.   Yuval Sofer (“SOFER”) and Iris Guy are husband and wife. The acts of Yuval Sofer were for

 6        the benefit of Yuval Sofer and Iris Guy and the marital community comprised thereof. Yuval

 7        Sofer and Iris Guy are residents of King County, Washington. Yuval Sofer and Iris Guy

 8        transact business in King County, Washington.

 9                                    II. BACKGROUND FACTS

10   6.   Iovin are the owners of certain real property located in King County, Washington, with the

11        physical address of 6047 Atlas Place SW, Seattle, WA 98136 (“Property”).

12   7.   On or about March 21, 2011, Iovin entered into a construction contract with YSD for the

13        construction of improvements at the Property.

14   8.   In and before March 2011, SOFER misrepresented the accomplishments and financial

15        strength of YSD to Iovin, fraudulently inducing Iovin to enter into the construction contract

16        with YSD. SOFER’s misrepresentations included, but were not limited to the following:

17        a. SOFER represented that YSD had successfully performed a $2,150,000 project in

18           Kirkland on 6th Street. In truth that project was owned by YS Kirkland 6th Street LLC, an

19           entity affiliated with SOFER. That project was not successfully performed by YSD or

20           SOFER. In December 2010 a Notice of Trustee’s Sale was recorder under recording

21           number 20101201001374 and sent to SOFER for the project, with a default in the amount

22           of $494,566.54, with a delinquency since July 19, 2010, and with an initial Trustee’s Sale

23           date of March 4, 2011, which facts were not disclosed to Iovin. The Trustee’s Deed was

24           recorded on or about June 21, 2011 under recording number 20110621000736, which

25
                                                                             A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                          Attorneys at Law
                                                                                800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                               Suite 3825
                                                                               Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                (206) 812-1414
                                                                              fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 2
 1          facts were not disclosed to Iovin. On information and belief, YS Kirkland 6th Street LLC

 2          also had a judgment entered against it for work on the project on January 15, 2010 in the

 3          amount of $7,833.95, which facts were also not disclosed to Iovin.

 4       b. SOFER represented that YSD was or had successfully performing work on a five lots on

 5          project in Bellevue on 41st Street. YSD did not perform any work at the project, as that

 6          project had been acquired by SOFER’s entity named YS Bellevue 41st Street, LLC. YSD

 7          did not successfully perform work on or pre-sale the 5 lots. In October 2009, an Amended

 8          Notice of Trustee’s Sale was sent to SOFER, for a default and an amount in arrears in the

 9          amount of $1,719,364.56, under recording number 20091021001203, which facts were not

10          disclosed to Iovin. On February 10, 2010, YSB recorded a Deed in Lieu of Foreclosure to

11          Homestreet Bank, YSB’s lender, for lot 5 at the project, under recording number

12          20100204000062. In June 2010, a Second Amended Notice of Trustee’s Sale recorded

13          under recording number 20100611000907, and was sent to SOFER, for a default and an

14          amount in arrears in the amount of $944,406.90, which facts were not disclosed to Iovin.

15          With respect to the project in Bellevue on 41st Street, SOFER also represented that

16          SOFER was or is a “REALTOR” for that project, but on information and belief SOFER is

17          not licensed as a Realtor with the state of Washington.

18       c. SOFER represented that YSD had a project valued at a $1,500,000 in Issaquah called the

19          RainCatcher. On information and belief, the Issaquah property had been owned by

20          SOFER in the year 2009, but in April 2010 a Notice of Trustee’s Sale was sent to SOFER

21          for a default and an amount in arrears in the amount of $103,076.53 and a loan balance of

22          $960,000, which facts were not disclosed to Iovin. On information and belief, the

23          Issaquah property was sold by the trustee at the trustee’s sale on or about July 23, 2010,

24          under recording number 20100723001415, which facts were not disclosed to Iovin. On

25
                                                                            A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                         Attorneys at Law
                                                                               800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                              Suite 3825
                                                                              Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                               (206) 812-1414
                                                                             fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 3
 1          information and belief, the Issaquah property was sold by the lender on or about

 2          September 22, 2010 for $392,000 (not $1,500,000) under recording number

 3          20100922000892.

 4       d. SOFER represented that YSD successfully performed work on a $2,350,000 project

 5          located at 12741 NE 39th Street, Bellevue Washington, known as the Harbinger project.

 6          On information and belief, the subject property had been owned by SOFER, but SOFER

 7          conveyed the subject property to numerous third parties on July 21, 2009 under recording

 8          number 20090721000301, of which YSD retained only a 22.25% interest and there

 9          remains encumbrances in excess of $1,600,000, which facts were not disclosed to Iovin.

10       e. SOFER represented that YSD had successfully performed work at a $1,250,000 project

11          located at 1102 5th Street, Kirkland Washington, also known as the Kirkland Duo. On

12          information and belief, YSD defaulted on the loan for that project and a Notice of

13          Trustee’s Sale was recorded with respect to the subject property on or about October 8,

14          2010 for a default and an amount in arrears in the amount of $1,252,283.64, which facts

15          were not disclosed to Iovin. On information and belief, the subject property was sold at a

16          loss by YSD for $900,000 on or about March 4, 2011 under recording number

17          20110304001515, an amount less that the loan balance and less than the value that had

18          been represented by YSD, which facts were not disclosed to Iovin.

19       f. SOFER had failed to disclose that in or before March or April 2011, SOFER was in

20          default on a loan by Anchor Mutual Savings Bank, for which a lawsuit was pending

21          against SOFER at that time by Anchor Mutual Savings Bank seeking approximately

22          $723,381.40 from SOFER, under King County Cause No. 10-2-10720-7 SEA.

23       g. SOFER also represented that he is a “REALTOR,” but on information and belief, SOFER

24          is not licensed as a Realtor with the state of Washington. Under RCW 18.85.411, any

25
                                                                           A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                        Attorneys at Law
                                                                              800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                             Suite 3825
                                                                             Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                              (206) 812-1414
                                                                            fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 4
 1            person acting as a real estate broker, managing broker, or real estate firm, without a

 2            license, or violating any of the provisions of Chapter 18.85 RCW, is guilty of a gross

 3            misdemeanor.

 4         h. SOFER represented that he had design experience for the design of homes that would

 5            enable YSD to meet or exceed the green standards of LEED® and ENERGY STAR

 6            HOME. SOFER required Iovin to pay a fee for design consulting services to be furnished

 7            to Iovin. However, on information and belief, SOFER had not received certifications

 8            and/or credentials from one or more the listed organizations; SOFER is not licensed as an

 9            architect; SOFER has not received specialized training as an architect or design

10            professional, and SOFER does not have the design experience he had claimed.

11   9.    YSD commenced work at the Property on or about April 20, 2011.

12   10.   YSD breached its duties to Iovin, and its contract with Iovin, causing delay and damage to

13         Iovin. YSD’s breaches included, among other things:

14         a. In violation of RCW 18.27.114, YSD failed to furnish the Notice to Customer form

15            required before YSD started work in April 2011.

16         b. In violation of RCW 18.27.100, YSD failed to furnish its current contractor’s registration

17            number on all advertising to Iovin, such as on promotional communications, emails and

18            correspondence to Iovin, proposed and final agreements with Iovin, and/or the web page

19            for YSD.

20         c. In July 2011, YSD failed to provide the contractually required damp proofing and

21            moisture protection. YSD admitted this error to Iovin, and YSD had agreed to pay the

22            Iovin for the damp proof consultant and repair costs, but YSD failed to pay for those

23            costs, among other costs incurred by this breach.

24

25
                                                                              A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                           Attorneys at Law
                                                                                 800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                                Suite 3825
                                                                                Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                 (206) 812-1414
                                                                               fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 5
 1       d. YSD’s breaches in July 2011 caused considerable delay to the project because YSD

 2          hindered and delayed the necessary repairs required for the damp proofing and moisture

 3          protection.

 4       e. In the summer and fall of 2011, YSD repeatedly refused to perform work specifically

 5          directed by the Architect, causing additional delays.

 6       f. YSD failed to supply sufficient manpower throughout much of August to November 2011.

 7       g. YSD failed to submit, revise and/or follow the contractually required construction

 8          schedules for the project.

 9       h. YSD submitted inaccurate, incomplete and untimely Applications for Payment to the

10          Architect and Iovin.

11       i. YSD failed to deliver the contractually required submittals, leading to delays and

12          conflicting expectations among the various trades and the owner.

13       j. YSD had troubles with its framer, resulting in delays and the replacement of the framer.

14       k. YSD had troubles with its roofer, resulting in delays and the replacement of the roofer.

15       l. YSD failed to correctly field measure the window openings and/or order the correct sized

16          windows.

17       m. YSD stopped work at the project numerous times in the summer and fall of 2011, causing

18          considerable delays.

19       n. YSD failed to meet the contractually mandated deadline for “framing and weatherization

20          complete” within “24 weeks from the date of commencement.” That deadline became

21          October 10, 2011. That deadline was very important to protect the building from water

22          damage and to protect the property from the risk of slides. As of November 25, 2011,

23          YSD had failed to achieve that contractually required deadline. Due to YSD’s failure to

24          meet that deadline, Iovin has incurred substantial damage and expense.

25
                                                                            A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                        Attorneys at Law
                                                                              800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                             Suite 3825
                                                                             Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                              (206) 812-1414
                                                                            fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 6
 1       o. YSD mismanaged the coordination of the work, causing damage to Iovin, by among other

 2          things, failing to follow applicable local Seattle codes and safety, failing to obtain permits

 3          for some work, ordering permits improperly resulting in fines at the expense of the

 4          Owner, ordering 5 separate surveyor visits at the expense of Iovin, ordering non-essential

 5          geotechnical and structural engineering visits at the expense of Iovin, splitting the

 6          foundation and export into two phases, installing roof membrane before completion of

 7          roof framing, installing roof membrane before roofing was ready causing damage to the

 8          roof deck and membrane, installing siding before framing was ready, and failing to install

 9          the vapor barrier in workmanlike manner causing damage to the vapor barrier and

10          foundation.

11       p. On or about September 21, 2011, YSD diverted $42,000 of the Iovin’s contract funds to

12          Garvey Shubert Barer, instead of holding those funds as a deposit or for payment to

13          vendors performing work on the project.

14       q. YSD failed to deliver contractually required documents with the Applications for

15          Payment, such as releases by vendors and cost information requested by Iovin.

16       r. SOFER and YSD signed certificates in connection with Applications for Payment, in

17          which SOFER and YSD falsely certified that “all amounts have been paid by the

18          Contractor for Work for which previous Certificates for Payment were issued and

19          payments received from the Owner.” Iovin relied on SOFER’s certificates to Iovin.

20       s. Despite the certificates by YSD and SOFER, SOFER and YSD did not actually or timely

21          pay all vendors for work performed under a prior Application for Payment.

22       t. Without Iovin’s authorization or consent, SOFER and YSD fraudulently placed charges

23          on Iovin’s credit card to pay for expenses caused or incurred by YSD.

24

25
                                                                             A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                          Attorneys at Law
                                                                                800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                               Suite 3825
                                                                               Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                (206) 812-1414
                                                                              fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 7
 1       u. On July 20, 2011, October 17, 2011, October 31, 2011, November 1, 2011, November 3,

 2          2011, November 13, 2011, November 16, 2011, the Architect issued to YSD directions to

 3          proceed with the contract work, which directives were fully or partially ignored by YSD.

 4          When YSD did respond to the directives, YSD frequently allowed 10 days to pass before

 5          YSD carried out the work required by those directives, in violation of § 8.3 of the

 6          contract.

 7       v. On November 15, 2011, Iovin issued an additional notice to YSD, pursuant to both § 8.3

 8          and § 20.2.2 of the contract. YSD failed to cure its default within seven days as required

 9          by § 20.2.2 of the contract.

10       w. On November 17, 2011, YSD repudiated duties under its contract with Iovin by refusing

11          to proceed with work on the project unless Iovin changed material terms of the contract.

12       x. On before November 18, 2011, SOFER and YSD wrongfully commenced to demobilize

13          from the project by removing materials, scaffolding, plumbing, lumber, plywood, as well

14          as materials and equipment previously paid for by Iovin. In breach of YSD’s contract with

15          Iovin, YSD abandoned its work on Iovin’s project on or before November 18, 2011.

16       y. On November 21, 2011, Iovin was compelled to take over the foundation scope of work

17          pursuant to § 8.3 of the contract. More than ten days before November 21, 2011, YSD had

18          received directives to proceed with the foundation work, including notices given to YSD

19          on October 17, 2011 and October 18, 2011. YSD was again directed to proceed with the

20          foundation work on November 13, 2011, November 15, 2011, and November 16, 2011.

21       z. On November 24, 2011, YSD sent a notice to Iovin, purporting to terminate the contract

22          with Iovin. YSD’s notice of termination to Iovin was wrongful.

23       aa. On November 25, 2011, YSD was terminated for default under § 20.2 of the contract.

24

25
                                                                            A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                        Attorneys at Law
                                                                              800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                             Suite 3825
                                                                             Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                              (206) 812-1414
                                                                            fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 8
 1   11.   After YSD’s contract with Iovin was terminated, SOFER and YSD continued to breach duties

 2         to Iovin, causing damage to Iovin, which breaches of duties included, without limitation:

 3         a. SOFER and YSD intentionally interfered with Iovin’s business relations by, among other

 4            things, interfering with Iovin’s lending, falsely telling suppliers who had received deposits

 5            that Iovin’s materials were no longer needed by Iovin, and misrepresenting to YSD’s

 6            vendors that Iovin had not paid YSD.

 7         b. SOFER and YSD wrongfully encouraged the vendors to file liens against Iovin’s property,

 8            to damage Iovin, dispute YSD’s and SOFER’s duty to hold harmless and indemnify Iovin

 9            from liens and claims by the vendors of SOFER and YSD.

10         c. In some cases SOFER and YSD sent lien notices to Iovin and Iovin’s lender, purporting to

11            give lien notices for YSD’s vendors.

12         d. SOFER and YSD attempted to convert, and in some cases did convert, deposits paid by

13            Iovin to or for vendors for Iovin’s project, including the deposit to Foundry for siding

14            panels, the deposit to the siding subcontractor, and the deposit to Arrow Lumber.

15         e. SOFER and YSD converted materials from Iovin’s property. On information and belief,

16            SOFER and YSD received $2,700 from Arrow Lumber for materials converted from

17            Iovin’s property.

18         f. SOFER and YSD failed to hold harmless or indemnify Iovin from liens and claims by the

19            vendors of SOFER and YSD.

20         g. YSD wrongfully recorded claims of lien against Iovin’s property. For example, on

21            December 21, 2011 and January 30, 2012, Bret Blersch, an employee of YSD, recorded

22            claims of lien against Iovin’s property.

23         h. SOFER and YSD interfered with Iovin’s ability to contract with replacement contractor(s)

24            for the construction of Iovin’s residence. SOFER and YSD knew or should have known

25
                                                                              A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                           Attorneys at Law
                                                                                 800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                                Suite 3825
                                                                                Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                 (206) 812-1414
                                                                               fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 9
 1             that Iovin had an expectation of entering into a contract with the replacement

 2             contractor(s). SOFER and YSD interfered with those contracts utilizing an improper

 3             means, such as by making false, misleading, and/or defamatory statements about Iovin

 4             and/or Michael Iovin, and also telling the replacement contractor(s) to contact others who

 5             might also make defaming statements about Iovin. SOFER and YSD also interfered with

 6             those contracts for the improper purpose of causing Iovin to suffer damage, such as by

 7             increased costs of construction. SOFER’s and YSD’s interference has caused Iovin to

 8             suffer damage.

 9                  III. ACTION AGAINST YSD FOR BREACH OF CONTRACT

10   12.   Iovin incorporates by reference all allegations hereinabove.
11
     13.   YSD breached its contract with Iovin.
12
     14.   Iovin is entitled to a judgment against YSD in an amount to be proven at trial for breach of
13
           contract, plus interest and attorneys' fees.
14
                       IV. ACTION AGAINST YSD AND SOFER FOR FRAUD,
15                          MISREPRESENTATION AND CONVERSION
16   15.   Iovin incorporates by reference all allegations hereinabove.
17   16.   SOFER and YSD made numerous misrepresentations to Iovin, fraudulently inducing Iovin to
18
           enter into a contract with YSD. For example, SOFER misrepresented the abilities and
19
           accomplishments of YSD; SOFER failed to disclose the financial defaults of SOFER and
20
           YSD on SOFER’s other projects; SOFER misrepresented his the construction experience of
21
           SOFER; SOFER failed to disclose to Iovin information regarding SOFER’s financial
22
           condition and the condition of SOFER’s other business enterprises.
23
     17.   After the formation of the contract, SOFER and YSD committed more acts of fraud and deceit
24

25         to Iovin, including but not limited to SOFER signing certificates to Iovin in which falsely

                                                                              A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                            Attorneys at Law
                                                                                  800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                                 Suite 3825
                                                                                 Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                  (206) 812-1414
                                                                                fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 10
           certified that “all amounts have been paid by the Contractor for Work for which previous
 1
           Certificates for Payment were issued and payments received from the Owner;” SOFER
 2

 3         fraudulently altered a lien release by YSD’s vendor, and SOFER misrepresented to the

 4         vendors on the project that Iovin no longer needed materials for which Iovin had paid a

 5         deposit so SOFER could obtain Iovin’s deposit from the vendor by fraud.

 6   18.   SOFER, or persons acting on behalf of SOFER, fraudulently placed charge(s) on Iovin’s
 7         credit card, without Iovin’s consent.
 8   19.   SOFER and YSD converted assets of Iovin by, among other things, removing from Iovin’s
 9
           property assets which had been previously paid for by Iovin on a previous application for
10
           payment.
11
     20.   Iovin is entitled to a judgment against YSD and SOFER in an amount to be proven at trial for
12
           fraud, misrepresentation and conversion.
13

14                       V. CONSUMER PROTECTION ACT VIOLATIONS

15   21.   Iovin incorporates by reference all allegations hereinabove.
16
     22.   Defendants YSD and SOFER have engaged in unfair and deceptive acts and practices in the
17
           conduct of its business or trade, in violation of RCW 19.86.020, by among other things:
18

19         a. Failure to provide notices required by law, such as the Notice to Customer form required

20            by RCW 18.27.114;

21         b. Failure to provide contractor’s registration numbers in advertising to Iovin, in violation of

22            RCW 18.27.100;

23         c. Misrepresentations to Iovin regarding the experience and accomplishments of YSD;

24         d. Misrepresentations to Iovin that SOFER is a “REALTOR,” when SOFER is not licensed

25            as a Realtor in Washington.

                                                                               A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                            Attorneys at Law
                                                                                  800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                                 Suite 3825
                                                                                 Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                  (206) 812-1414
                                                                                fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 11
 1         e. SOFER’s failure to disclose the financial defaults of SOFER and YSD on SOFER’s other

 2            projects;

 3         f. SOFER’s failure to disclose to Iovin information regarding SOFER’s financial condition;

 4         g. Misrepresentations to Iovin in the periodic Application for Payment forms;

 5         h. Intentionally delaying work, and stopping work, for the purpose of causing Iovin to suffer

 6            damage;

 7         i. Fraudulently altering a lien release for a vendor at the project;

 8         j. Conversion of Iovin’s personal property from the project;

 9         k. Placing charge(s) on Iovin’s credit card, without Iovin’s consent;

10         l. Misrepresenting to vendors who had received deposits from Iovin that Iovin’s materials

11            were no longer needed, so that YSD could obtain Iovin’s deposit from the vendor by

12            deceit, and

13         m. Failing to protect and hold Iovin harmless from claims and liens by YSD’s vendors by

14            among other things, YSD sending materialman’s lien notices to Iovin on behalf of YSD’s

15            vendors.

16         n. Recording claims of lien against Iovin’s property, such as those liens recorded by YSD’s

17            employee on December 21, 2011 and January 30, 2012 against Iovin’s property.

18         o. Making false and/or misleading statements to Iovin’s potential replacement contractor(s),

19            causing Iovin to suffer damage.

20   23.   Defendants' conduct is a violation of the Consumer Protection Act.
21
     24.   Defendants' unfair and deceptive acts and practices have caused damage to plaintiffs in
22
           amounts which shall be proved at trial but, together with treble plaintiffs' actual damages,
23
           including out of pocket costs, litigation expense and reasonable attorneys fees.
24

25
                                                                                  A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                              Attorneys at Law
                                                                                    800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                                   Suite 3825
                                                                                   Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                    (206) 812-1414
                                                                                  fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 12
 1              VI. ACTION AGAINST YSD AND SOFER ON ASSIGNED CLAIMS

 2   25.   Iovin incorporates by reference all allegations hereinabove.
 3
     26.   YSD and SOFER failed to indemnify and hold Iovin harmless from vendors at the project. As
 4
           a result, Iovin was compelled to pay YSD and SOFER’s vendors. In consideration for
 5
           payment by Iovin to YSD and SOFER’s vendors, Iovin was assigned rights of the vendors
 6
           against YSD and SOFER, including rights arising under personal guarantee by SOFER.
 7
     27.   Iovin is entitled to a judgment against YSD and SOFER in an amount to be proven at trial on
 8
           the assigned rights and claims against YSD and SOFER.
 9

10                  VI. ACTION AGAINST YSB AND SOFER FOR ALTER EGO
11
     28.   Iovin incorporates by reference all allegations hereinabove.
12
     29.   YSB and SOFER are the alter ego of YSD. YSD, SOFER and YSB have comingled the assets
13
           and liabilities of each other by, for example, directing Iovin to pay contract money to YSB,
14
           YSB using revenues of YSD to pay for YSB’s obligations, and SOFER using revenues of
15
           YSD to pay for SOFER’s obligations. SOFER is the member of both YSD and YSB. SOFER
16
           is the Manager of YSD, and YSD is the Manager of YSB.
17

18   30.   Iovin is entitled to a judgment against YSB and SOFER in an amount to be proven at trial for

19         all amounts owed by YSD.

20
                   VII. TORIOUS INTERFERENCE ACTION AGAINST SOFER
21
     31.   Iovin incorporates by reference all allegations hereinabove.
22
     32.   Iovin had valid contractual relationships with its lender in and before November 2011, and
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           SOFER had knowledge of that relationship.
24

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                                                                              A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                           Attorneys at Law
                                                                                 800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                                Suite 3825
                                                                                Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                 (206) 812-1414
                                                                               fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 13
     33.   Iovin had valid business expectancy with replacement contractor(s) after YSD was
 1
           terminated, and SOFER and YSD knew or should have known about that business
 2

 3         expectancy.

 4   34.   SOFER intentionally interfered with the relationship or expectancy between Iovin and its

 5         lender. SOFER interfered for an improper purpose or used improper means.

 6   35.   SOFER intentionally interfered with the relationship or expectancy between Iovin and the
 7         replacement contractor(s). SOFER interfered for an improper purpose or used improper
 8         means.
 9
     36.   Iovin has suffered damages as a result of the wrongful actions by SOFER.
10
     37.   Iovin is entitled to a judgment against SOFER for damages incurred by Iovin as a result of
11
           SOFER’s interference with Iovin’s business expectancies.
12

13                  VIII. CLAIM AGAINST AMERICAN CONTRACTORS INDEMNITY CO

14   38.   Iovin incorporates by reference all allegations hereinabove.
15   39.   Pursuant to the provisions of RCW 18.27 et. seq., Iovin is entitled to judgment against
16
           American Contractors Indemnity Co for all amounts adjudged against YSD.
17
           THEREFORE, plaintiff prays for judgment as follows:
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     1.    For judgment against YSD in an amount to be proven at trial, plus interest, attorneys' fees and
19
           costs.
20
     2.    For judgment against Yuval Sofer and Iris Guy in an amount to be proven at trial, plus
21
           interest, attorneys' fees and costs.
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     3.    For judgment against YSB in an amount to be proven at trial, plus interest, attorneys' fees and
23
           costs.
24

25
                                                                              A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                           Attorneys at Law
                                                                                 800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                                Suite 3825
                                                                                Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                                 (206) 812-1414
                                                                               fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 14
 1   4.   For judgment against American Contractors Indemnity Co in the full amount of the judgment

 2        against YSD.

 3   5.   For such other relief as the court deems just and equitable.

 4

 5        DATED this _____ day of March, 2012

 6
                         By___________________________
 7                       A. Shawn Hicks
                         WSB No. 14734
 8
                         Attorneys for Iovin
 9

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25
                                                                         A. Shawn Hicks
     FIRST AMENDED COMPLAINT FOR BREACH                                      Attorneys at Law
                                                                            800 Fifth Avenue
     OF CONTRACT, MISREPRESENTATION,                                           Suite 3825
                                                                           Seattle, WA 98104
     CONSUMER PROTECTION ACT, AND                                            (206) 812-1414
                                                                          fax: (206) 812-1418
     RECOVERY FROM LICENSE BOND - 15

				
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