BC3B 1 654

i
RobertM. Heller,Esq.[StateBarNo.S0984]
ROBERTM. HELLE&
A PROFESSIONAL
LAW CORPORATION
1875CenturyParkEast,Suite1000
LosAngeles;Califomia 90067
Telephone:
(310)286-15I 5
(310) 286-0046
Facsimile:
FITAD-
IOS ANGEI,ESSIITEHOR
0EC
04?007
'"Hffi
Attomeysfor Plaintiff
SUPEzuOR
COURTOFTHE STATEOF CALIFORNIA
COUNTYOF LOSA}IGELES. CENTRALDISTRICT
l0
16 5 4
BC 3 B
HIaDRODERM, LLC, a DelawareLLC;
ll
)
)
Plaintiff,
)
)
vs.
)
)
TERI HATCHE& au individual; ISBE
)
PRODUCTIONSLLC, aDelawareLLC; and )
DoesI througbl00,Inclusive;
)
)
12
13
l4
l5
t6
,r1
trl
1el
Defendants.
COMPLAINT FOR RE,LIEtr'BASED
ON
RESCIS$ON; FOR D^A,IVIAGES
['OR
BREACII OF CONTRACIi ['OR
BREACII OF TIIE IMPLIED
COVENANTOF'GOODFAITH AND
FAIR DEALI-NG;FOR Monmy HAI)
AND RECEII{ED; AND I'OR FRAttD By
CONCEALMENT
Plaintiff Hydroderm,LLC herebyallegesas follows:
,01
,tl
CaseNo.
I
PARTIES A}ID YPNUE
l. Plaintiff Hydroderut, LLC ("Hydroderm") is a linited liability cosrpanyorganized
uoderthe laws of the Stateof Delawarewith its principal place of businessin the City and
County oflos Angeles,Stateof Califomia.
rrl
2- DefendantTeri Hatcher("HaXcher")is an individual and aresident t&pryF
"f ,."?* ,t ;i
,ulCounty of Los Angeles, Stateof Califomia
^ Fi - ii
:l
3. Defe'ndantISBE Productions,LLC ("ISBE') is a limited liability compsny
organirndunderthe laws of the Stateof Delawarewith its principal place of businessin r
I
cor',mienrr
I "d
HdoI:e
Looz
cao
'o
l l 'i
tl
rll
of Bwerly Hills, Countyof Los furgeles,Stateof California.Hydrodermis informedand
,llat"
Uetievesand thereonallegesthat ISBE is a "loan out'.'corporationthat existsprimarily for the
,ll
on behalfof or for the benefit of defendantHatcher.
, llputpo." of enteringinto agreements
4 ll
4 , Hydroderm is infotmed arrdbelievesand thereionallegesthat ISBE is the alter ego
. Il
"ll
.llof Hatcher.Hydrodetm is informedandbelievesandthereonallegesthat Hatcherdominates
oll
tll *
controlsISBEandthatthereis sucha unltyof interestandownershipthattheseparate
of ISBE andHatcherno longerexistandif theactsareteated asthoseof ISBE
Sf nerconatities
l
tll"."o aninequitableresultwill follow.
5. Hydroderrnis ignorantof thetruenamesandcapacities
of defendants
10ll
suedhereinas
tl
t t OoesI through100,inclusive,andtherefore
suesthesedefendants
by suchfictitiousnames.
lf
t 2ll HyaroCerm
will amendthis complaintto allegetheir tue namesandcapacities
when
tl
l3llascertained.Hydrodemtis informedandbelievesandthereonallegesthateachof su.oh
f +[lnctiti*sly naneddefendants
is responsible
in somem'nnsr for the occw?enc€s
hereinalleged,
tsf
by thesedefendants'
la"a thatHydrodenn'siqiuriesashereinallegedwereproximatelycaused
tull*"
ttll
6. Hydrodermis informedandbelieves
andthereonallegesthat defendants
DoesI
tslltrrr*er,
l9llr"p.t
**i*s,
'olf to"u*g
2rll
100,inclusive,weretheagents,
servants,
employees,
alter-egos,
instrumerrtalities,
covenhlrers,co-cottspirators
andparhersof eachof theotherdefe,ndants,
ISBE andHatcher,ard in doingthethingshereinafteralleged,wereactingin the
of theirauthorityassuchagents,
servants,
employees,
alter-egos,
instrumentalities,
,llt**
*"ntatives,coventurers,
co-corupirators
andpartnersandwith the knowledge,pennission
,rll*Ot
consentor with the apptovalor ratificationof their oo-defe,ndants,
an4 aszuch"share
.ll
^24ll
^a
ti"UitiOwith eachotherwith respectto saidmatterscomplained
of herein.DefendansISBE
ZSll
HatcherandDoes1 ttuough100,inclusive,shallbecollectivelyrcforredtohereinas
"ll*Ootrttaants"'
zzll
2sllttt
tl
ll
_.---
2
"---- -co^,er"erNt
ll
tl
il
7' d
l.ldoI3e 4ooz to
oaq
t
tr
2
t
GENERALA,LLEGATION,
E COMMON
4
Tq AL! CAUSES
OFACTTON
:
5 A.
Hvdroderm Contractpwith Defeqda4teforllstcber's Arclusive Endors€mentSeryiees.
6
7. Hydroderm developedand is currently marketing a skin care produotline that is
7
intendedto produce many of the effectsof collageninjections without the pain or expense.
Hydrodenn'sproductsreducethe appearance
of wrinkles and oteatea healthierglowto the
I
l1
I
skin.
8. To generatesalesand increaseits namerecognition"Hydroderm soughtto confract
with a prominent public figure to provide exolusiveendorseinentserviceson behalf of
l 3 Hydroderm.Hydrodenn consideredseveralwell-knownand attactivo actresses.Hydroderm
I
t(
chose,however,to pursue an exclusiverelationshipwith Hatcher based,in large part, on the
fact that Defendantsrepresentedthat Hatcherwas not cnrrently Endorsingany competingskin
16 oareproducts and promised that shewould not
do so in the future.
1
9. Accordingly, effectiveNovember30, 2005,Hydrodermand ISBE, Halcher'sloan
IE
19
20
2l
22
23
out company,entered iuto a witteu agreementwherebyHatcher would renderendorseme,lrt
senices on behalf of Hydrodenn in oonnectionwith Hydroderrn's narketing of the Hydroderm
ProductLine (the "Agreement").
10. The Ageement containsa confrdentiallyprovision that preventsthe partiesfrom
disclosingthe tenns and conditions of the Agreementexcept underspecified circumstances,
including "any legal proceedings." In the spirit of this provision, however, and to proteot
25
Hatcher'sprivacy, Hydroderm nei&er attachesthe Agreernelrtto this complaint nor quotcs
26 dirwtly from the Agreement. Rather,Hydroderrrrallegesthat rxrderthe terms of the
27 Agreernent,Defendants agrcedthat ISBE would not authorizeor permit Hatcherto use,among
28 otherthings, her name, voice, autograpl, imageor likenessdirectly or indireotly !o, among
COMPLAINT
.d
l.ldoI :e 4ooz to
cao
ll'i
,ll
I
or
promote,eudorse,
skin caxe
advertiseskin
productsrnanufactured
rnanufactured
market
things,promote,
eudorse,
marketor advertise
caxeproducts
o1trq things,
llother
z
2ll
s competitors.
competitors.
marketedby Hydrodermn
Hydrodermns
^r3llflmarketed
tl
4llB. Defendang
becsueeHltcher
lheAqreeqept becsueeHltcher
Btqach lheAqreeqept
Matefiatlv Btqach
and Matefiatlv
FraFd_and
Defendang Commit
Commit Fraud
tt
5ll
tl
6ll
Cgmpetitors.
Senricesfor
for Cgmpetitors.
ement
ementSenrices
Provides
En_dore
Provides4n-dore
tl
all of thetermsandconditionsrcquiredof it under
11. Hydrodermhasfully performed
7ll ,U. Agreemen!exceptwheresuchperformance
is excusedot madeimpossibleby virhreof
"" llDefendants'
perfomrand/or
material breaches
breachesofthe
and/ormaterial
Agreement.
of theAgreement.
failure to perfomr
Defendants'failure
ll
tll
and,
fact,
tecmsof the
Agree,me,nt
and,in fact,
the tecms
by the
theAgree,me,nt
abideby
however,f,ailed
f,ailedto abide
Defendants,
however,
12.
12. Defendants,
ttoll-",rrr"ly
0
t
l
- -llmaterially
occurredbecaue
thetermsof theAgreement.Thesematerialbreaches
breached
llll
1
permittedthe
interalla,Hatcha's
voi@,image,
useof,
of,inter
name,voi@,
image,
andpermitted
theuse
alla,Hatchq'snamg
Defendants
authorizedand
O*un*rs authorized
,rf l
to directlyandindirectlyptomote,endorse,marketand
lltikenessandotherendorsernent
t 3lI
competingskincareproducts.
ll advertise
r4ll
,Sll
waseffective,flatcherprovidede,lrdorse,ment
13. BeforeandaflertheAgreement
,Ull***s
.,
, r"llt l
, rll
("City"), includingbutnot limitedto;
for City Cosmetics
a lip
includingspeci{ically
(a) Posingfor photographs
app$ingCity products,
with Hydrodem'slip enhancer;
phulpet productin directcompetition
trll
ft) BeinginterviewedaboutCityproducts;
,ll
(c) Iclentiffingherselfasa "fan" of City'sproducts;
2l ll
il
(d) AuthorizingandpermittingClty to preparegift baesfor guestsof herbirthday
tt
(e) Authorizingandpennittinghernameto beusedin connectionwith City
,rll
ll
,Oll
ttll
tl
,tll
,rll
,rll
It
il -----tl
party;
productsasa meansto appearbeautifulat anawardseven[ and
of her
andCity websitephotographs
(f Authorizingandpermittingpressreleases
of City products.
useandendorsement
4
coMPLAINT
tl
tl
il
-.-1
H dII:e
4O O Z t o
cag
llt l
tl
rll
14. Hyd,roderrn
is still iovostigming
thenatureandextentof endomement
services
;ll
rnayhaveprovidedfor othercompetitors.
Hatcher'snamehssbeenlinkedto skincare
I
I
,llttatctrer
I
by numerous
competitors
ntoau"tsmarketed
olf
I
Defendants
actively
zuppressed
and
the
fact
that
concealcd
frorn
Hydroderm
Hatcher
15.
I
.ll
"l l l
providing,andwouldcontinueto providgendorsement
services
for Hydroderm's
6ll*^
I
Defendants
suppressed
and
fact
to
competitors.
concealed
this
materia,l
with
tbe
intent
defraud
,ll
I
'lll
to Hydrodemr
revealed
thatHatcherwasproviding,andwould
HadDefendants
SlIUVaroaerm.
I
services
to competitors,
Hydrodermwouldnot haveentered
I || continueto provide,endorsement
I
andconcealment
of thismatedalfact
l gll ioto theAgreement.Defendants'activesupprcssion
I
il-l
to sufifersubstantial
damages
assetforthin thiscomplaint.
I I llcausedHydrodenrr
name,voice,imageor likenessto
usedHatcher's
16. To theextentanycompetitor
trll
ft
competing
nrarketor advertise
skincareproductswithoutDefendants'
endorse,
lln*-ot",
lallconsentor permission,
of goodfaithandfair dealing,Defendants
underthecovenant
owed
tsllffvat"aerm tlredutyto protectHydroderm's
rightto receivethebenefitsof theAgreement.
ln
I
I
I
I
I
I6|[otn t words,Defendants
preveflt
voice,
owedHydrod.erm
thedutyto
Hatcher'srurme,
imageor I
ttll
or permission
consent
to directlyor indirectly I
Urcn.r, frombeingusedrvithoutDefendants'
ttllo.**e,
skin careproductsincluding but not lirnited I
endorse,rnarketor advertiseconrpeting
t'll.,a
product
lipenhancing
20il
I
of tiro Agreemenl
materialbreaches
of Defendants'
1?. Priorto Hydroderm'sdiscovery
2lll
ll nydroaennhadno knowledgethat Hatcherwasproviding,andwouldcontinueto provide,
22ll
competitors.
rrices
Hydroderm's
competitors.
services
to Hydroderm's
Zf ll"oaott"ment
materialbrreaches.
leamedof Defendants'
18. In or aboutSunmer2007,Hydroderm
,4ll
C. Defendints'Fraud snd Mpterlal Breachesof the AsreementCausodllvdroderm ao
25ll
:all
,l
SuflerSubstentialDamaees
|
|
I
I
I
I
I
I
I
damages
havecausedHydrodermto suffersubstantial
19. Defendants'materialbreaches
I
I
''r li
ll- - .- s- _ - -- _--l
ll
ill
lll
"oMPLAINT
I
I
including, but not limited to, the $2.4 million Hydrodermhaspaid Defendantsfor Hatcher's
t 2 exclusive
endorsementservices.
3
20. Furthermore,Hydrodeffii has suffereddamageand incrrned additional €xpenses
,,4
l)
relatedto its performanceofthe Agreement.Theseadditiooal expensesinclude, but areuot
I 5 limit€d to, (a) third-party vendordirect expensesof at least$173,476,(b)rnarketingexpenses
7 of at least$56,785,(c) photographyexpensesof at least$1 16,691and(d) intemal overhead
8 costsof at least$60,000. As of the dateof filing this complain! Hydrodermhaspaid atotal of
5406,592for theseexpenses,and it will continueto incur additional expensesin an amount
110cunently unlsrou'n. Hydroderm will amendthis cornplaintto allege the actual amountof these
ilr
expensesufien they are ascertained.
21. Unlessthe Agreemenlis rescinded,Hydrodermwill suffer additionalzubstantiat
t3 harm and injury. Hydroderm will b€ dep,rivedof the bargainfor which it contracted. Thevalue
1 4 of Hatcher'sendorsementsen'icesis drasticallyreducedbecauseher servicesarenot exclusive.
l)
Hydmderm is not, as contemplatedby the Ageement, the skin careproduct that Hatch€rus€s
to rnaintainher youthfirl appearance.At bestHydrodermis simply one of many.
lr7
22. Tbe photographsand pressreleasesregardingHatcher's use of competitors' skin oare
i, t productshaveappearedon tlte lnternet. The public, including but not limited to, those
individuals to whom Hatcher's endorsernentwould bemost meaningful, is now awarethat
2l
22
23
Hatcherusescompetingskin oareproducts,includingadirectly competinglip careproduct.
Hatcher's natne, image and likenesshave beenlinkedto so many competitors' products(at
least I 7 !) that it is anyone's guessas to what productkeepsher skio and lips youthful . In
effect, Dcfendantshave told the public "If you want to duplicateFlatcher's youtlrful appearanc€
you shouldusea virtual smorgasbordof beautyproducts." This is a situationin which thebell
simply cannotbe unrung. Even if Hydrodenn wereto continueto use Hatcher's e,lrdorseme,lrt
services,the value is drastically lessthanthe originally contemplatedexclusiveserviceswere
worth.
COMPLAINT
l .l dI I:e
4OOa , o
ceq
l t(l
:
.llr
lllo. Hvdrodem HerebvGivesNoticethal theAerecmentis Rescinded.
I
complaintin this actionto serveas
rt*
^ ll
'll
sthatDefendants
restore
Defendants
resl to
of rescission
ion of theAgreement,
Ageemeil andherebydemands
+ll
i ""ti.r
thesumof $2,4millionthat
fumishedby it, specifically
SllHfAr"Arrrr theconsideration
Hydroderm
plusthe sumof $406,952of additionalexpenses
j elf UlAtraerm previouslytendered,
due
for a totalof $2,806,952
of theAgreement,
i"r.*rd relatedto its perfomrance
i ZII
I
I
I
I
I
tlli"-'aiably.
and
suppressed
intentionally
theactsdescribed
hercin,Defendants
24. lnperforrning
,ll
I
I
I
Defendants
sunnressed
factsknownto then. Specifically,
Of**""fed fromHydroderm
material
I
if f
i
I l ll and concealedthat Hatcher alreadyendorsed,and would continueto endotse,competingskin
I
ttll*
I
of tp termsoftheAgreeurent.
products
in directcontravention
I
25. TheforegoingactsofDofendantswerewillful,oppressive,fraudulentandrnalicior
lttll
I
rightsand
of Hydrodenn's
disregard
actedwithawillftl andconscious
I
I lall in thatDefendants
15ll*Ui*,rd Hydrodenn
to I
is entitled
byvirtueof whichHydroderm
to cruelandunjusthardship,
I
l6llo"ronrary p'nitive
damages.
and
I
lrr t
ru
hh causnor AcTIoN
FIRsr
"t*llll
tell
=,ll
tt
I
ISBE)
(Rescisgion
aeainstDefendant
t
1-25
asif setforthfullyherein,paragraphs
andincorporates
realleges
26. Hydroderrn
ll
ttll"oo.,,..
|
I
30,
(effective
November
intoa writtenAgteemenl
ISBEentered
ar-rd
27. Hydroderm
t
"ll
endorsement
withexclusive
to provideHydroderm
agreed
to whichHatcher
'rllltatt, p*rsuanr
I
,ull*t'"*
ll ,tr
!
,rll"'
,'ll7__r
- --
I
I
coMPLArNr
I
ll
ill
i
4 -d
ll
- .- - -
HdII;e
40oe ,o
L_
3eo
I
2
3
4
28. Hydroderm has fully performedall of thc terms and oonditions requiredof it undErthe
Agreement,exceptwhere such performanceis excusedor made impossible by virtue of
Defendants'failwe to perform and/or materialbreachesof the Agreement.
29. Defendantsmat€rially brcaohedthe tenns ofthe Agreement by authorizingand
6
permitting the use of, inter alia,Hatcher's narue,voice, image, likeness and other endorsement
indirectly promote,endorse,marka and advertisecompeting*in
7 servicesto directly and/or
8 careprodwts including but not limited to, a lip enhancingproduct
30. With the intent to defraudHydmdenn, Defendantsactively suppressedand
I
0 concealedfrom Hydroderm the materialfact that Hatchetwas providing, and would continueto
I provide,endorsementservicssfor Hydroderm'scompetitors,Had Defendansrevealedthat
2 Hatcherwas providiug, and would continueto provide, endorsementservicesfor competitors,
3 Hydrodermwould not have enteredinto the Agreement
4
and conoealmentof this materialfact and
31. Defendants'active suppression
Defendants'material breacheshave causedHydrodermto suffer substantialdarnagesincluding,
but not limircd to, the $2.4 rnillion Hydrodermpaid Defendantsfor Hatcher's exclusive
services.
endorsement
32. Furtherurote, Hydroderm hassuffereddanage and incurred additional expenses
relatedto its performanoeof the Agreement.Theseadditional expensesiaclude, but arenot
of at least$173A76,(b) marketingexpenses
limited to, (a) ttrird.party vendordirect expenses
,rlof at least$56,785,(c) photographyexpensesof at least$l16,591 and (d) internaloverhead
l22lcostsof at least$60,000. As of the dateof filing this complaint,Hydrodermhaspaida total of
23
in an amount
$406,592fot theseexpenses,and it will continueto incur additional expenses
)24
the actual amountof these
cunently unknown. Hydroderm will arnendthis comptaintto allege
i,'
when they are ascertained'
26 axpemes
additional substantial
33. If the Agrcement is not rescinded,Hydroderm witl suffel
for which it oontactedbecause
harmand injury. Hydroderm will be deprivedof the bargain
COMPLAINT
---'---
Hd e I : e e o o z t o c e o
the valuc of Halcher's endorsementservicesis drarnaticallyreducedbecausethoseservicesare
not - andnevsrhavebeen-- exclusive.
34. The bell cannot be unrung.The public is now awarothat Hatcher usesa virtual
smorgasbordof competing skin cate productsincluding, but not limited to, a competinglip care
product to maintain her youthful appearance,The value of Hatc,her'snon-exclusive
endorsementservicesis drastically lessthan the originally contemplatedexclusive services.
35. hiorto Hydrodenn'sdiscoveryof Defendants'materialbreachesof the
Agreement,Hydrodem had no knowledgethat Harcherwas providing, and would continueto
provide,endorsementservicesto Hydroderm'scompetitors.
36. h or about Summer2007,Hydrodemlleanredof Defendants'materialbreaches.
37. Hydroderm intends serviceof the surunonsand complaint in this astion to scrveas
1 3 notice of rescissionof the Agreemen! and herebydemandsthat Defendantsrestoreto
t4 Hydrodermthe considerationfurnished by it, specifically the zum of $2.4 million that
1 5 Hydrodermpreviously tendered,plus the sum of $405,952of ad.ditionalexpensesHydroderm
t
ingured relatedto its perfomranceof the Agreementfor a total of $2,806,952due
I
I
19
20
2l
immediately,
38. The foregoing actsof Defendantswerewillftl, oppressive,fraudulentand
malioious in that Defendantsactedwith a willful andconsciousdisregardof Hydroderm's
rights and subjectedHydroderm to cruel and unjust hardship,by virnre of ufiich Hydrodermis
entitled to exemplary and punitive damages.
IV
spcoNp cAUsEor AcTroN
(BreecF gf Conhact asainstDefendaut fSBE)
26
39. Hydroderur reallegesand incorporatesasif set forth fully herern,paragraphs1'25
27 above,
28
COMPLAINT
e---'-<
.*-
(dal
ra
4OOe
ceo
I
2
3
40. HydrodermandISBEenleredinto a writtenAgreement(effectiveNovember30,
2005)pursuantto which Hatcheragreedto provideHydrodermwith exclusiveendorsement
services.
41. Hydrodermhasfully performedall of theterns andconditionstoquiredof it untler
theAgreement,exceptwheresuchperformance
is excusedor rnadeimpossibleby virtueof
DefEndants'
faiilureto perfonnand/ormaterialbreaohes
of theAgreement.
42. Defendantsmaterially breachedthe terms of the Agreonent by authorizing and
permittingthe use of, inter alia,Hatcher's narne,voice,irnage,likeness,ptoruotionalservices
and other endorsementto directly and/orindirectly promote,endorse,market and advertise
competingskin cme products including, btrt not limited to, a lip enhancingproduct.
43. Defendants'material breacheshavecausedHydroderm to suffer substantial
darnagesincluding, but not limited to, the $2.4 million Hydrodenn haspaid Defendantsfor
Hatohef's exclusiveendotsementse,l:vices.
44, Furthsrmore, Defendants'rnaterialbreacheshave catsed Hydrodermto sufffer
darnageand incr.r additional expensesrelatedto i1sperformanceof the Agreement.These
additional expensesinclude, but arenot limited to, (a) third-party vendor dir€"! expensesof at
of at least$56,785,(c) photographyexpensesof at least
least$ 173,476,(b) marketingexperu;es
$116,691and (d) internal overheadcostsof atleast $60,000. As ofthe dateof fitingthis
complaint,Hydrodermbas paid a toal of $406,592for thes€expenses,and it will continueto
incrx additional expensesin an amount currently urrknown. Hydroderrr will amendthis
complaint to allege the actual amountof theseexpenseswhenthey are ascertained-
v
THrRD CAUSE0['ACTTON
l-25
45. Hydroderm reallegesand incorporatesasif set forth ful1y herein,paragraphs
10
COMPLAINT
.--*'-OI
H det:e
cao
LOOZ
'o
I
above.
46. Hydrodenn and ISBE entered into a unitten Ageement (effective November 30,
2005)pursuantto whiohllatcher agreedto provideHydrodermwith exclusiveendorsernent
scrvices.
47. Hydrodermhasfully perfonnedall ofthe termsandconditionsrequirodof it under
theAgrcement,
exceptwheresuchperformance
is excused
or madeimpossible
by virtueof
Defendants'failureto perfonnand/ormaterialbreaches
of the Agreement.
48, TheAgteementcontainsanimpliedcovenantof goodfaith andfair dealingthat
irrposes on Defendantsthe duty to protectHydrodcmr's right to receivethe benefitsof the
I Agreement i,e.,the duty to preventHatcher'snarne,voice,inuge or likeness&om beingrued
t2 without Defendants'consentor permissionto directly or indirectly promote. endorsgmarketor
1 3 advertisecompetingskin care productsinciuding, but not limited to, a lip enhancingproduct.
t4
49. Defendantsknew or shouldhaveknovun,however, thatHatcher's name,voice,
1q
image and/or likenesswere being usedto directly or indirectly promote, endorsgmarket or
advertisecornpetingskin careproducts including, but not limited to, a lip enhancingproduct.
I
I8
I
50. Defendantsmaterially breachedthe implied covenantof good faith and fair dealing
andunfairly interfered with Hydrodeun's right to receivethe benefits of the Agreementby
failing to take actionto preventHatcher'sname,voice,imageor likenessfrom beingused
without Defendants' consentor permissionto directly or indirectly promote, endorse,matket or
advertisecompeting skin careproductsinoluding,but not limited to, a lip enhancingproduct.
51. Defendants'materialbreacheshavecausedHydroderrr to suffersubstantial
damagesincluding, but not limited to, the $2.4 million Hydrodenn haspaid Defendantsfor
Hatcher's exclusive endorsementservices.
52. Furthermore,Defendants' materialbreachesof the implied covenantof goodfaith
and fair dealing have causedHydroderm to suffer darnageand incur additional expeGesrelated
to its performanceof tbe Agreement.Theseadditionalexpensesinclude, but are not
limitedto,
1l
COMPLAINT
H deI:e
LOO7
cec
'o
J
(a) third-partyvendordirect expen$es
of at least$17i,476,(b) marketingexpen*esof at least
$55,785,(c) photographyexpensesof at least$l !6,6gland (d) internaloverhead
oostsof at
4
least$60,000. As of the dateoffiling this complainr,Hydrodemrhaspaid a total of
$406,592
{
for theseexpenses,and it will continue to incur additional expens€sin an amountcurrently
unlnown. Hydrodemowill amendthis complaint to allegetheactual arnountof theseexllenses
when tbey are ascertained.
VI
FOURTTTcAUsE oF ACTTON
53- Hydrodermrealleges
andincorporates
asif setforthftlly herein,paragraphs
l-25
above.
54' Pursuantto thetennsof tbeAgreemenq
HydrodermpaidDefendants
thetotalsrr6
of $2.4million:
(a) Onor aboutNovember30,2005,Hydroderm
paidDefendants
$1.2million;and
paidDefendants
G) On or aboutDecemberl2,2006,Hydrodemr
$1.2million.
55, Accordingly,Defendants
areindebted
to Hydrodorm
in thesurnof $2.4millionfor
mooeyhadandreceivedby Defendantsfor theuseandbenefitof Hyilroderrn,
56. In faimess,this moneyshouldbepaidto Hydroderurbecause
Defendants
obtained
thismoneyfrom Hydrodenn:
(a) By virtue of their active conccalmentof the material fact that Hatcherwas
providing, and would oontinueto provide, endorsementsenices for
Hydroderm' s competitors;
(b) For a considerationthat failed; aud
(c) Pursuantto an Agreementtbat hasbeenrescindedby virtue of serviceof the
sunmons and complaint in this action and/orwill soon be adjudicatedto be
t2
COMPLAINT
l{deI:e
LOoe ,o
cao
rescinded.
57. As of the date of filing the complaintin this actioq neither the whole nor any part
of the $2.4 milHon has beenpaid to Hydroderm
58. Accordingly, there is uow due aodowing ftom Defendantsto Hydrodermthe sum
of $2,4miltion with interestthereonat the legalratefrorn the datesthe indebtedness
was
incuned.
VII
FIFTH CAUSE OF ACTION
59, Hydrodermreallegesand incorporalesasif sa forth fully herein,paragraphsl-25
above.
60. Defendants actively srrppressed
and concealed&om Hydroderm the material faot
that Hatcherwas providing, and would continueto provide, endosernent servicesfor
Hydroderm's competitors.
61. Defendantshad a duty to revealthis material fact to Hydroderm.
62. Altematively, even if Defendantshad no duty to revesl this faot to Hydroderm,they
nevertbelessrepresentedthat Hatcherwould provide exclusiveendorsementservicesfor
I{ydroderm and in so rqrresenting failed to be honestbecausethey suppressedand concealod
this material fact.
63. Defendants suppressedand concealedthis material fact with the intent to defraud
Hydrodeno.
64. Hydroderm was \urawaxethat Hatcherwas providing, and would contintreto
25
26
provide, endorsementservisesfor Hydroderm's competitors.
65. Had Defendantsrevealedto Hydroderm thatHatcher was providing, and would
continueto provide, endorsementservicesto competitors,Hydrodemr would not have entered
into tbe Agreernent.
13
COMPLAINT
_-..-H del :e
A OOa ! o
oeq
Dec
04
2O O 7 3 : l 4 PM
Jrwlorc
,l
cS trpur oueoqpq q llrpory$f
lDmfif
fq Udoogaplre
rq1 r
rnnorFpoqo' q stao+fir rrd q peupo .q rlpo.J|q Fqr
:FFF..r E .l*qrolcdy
apm crrpp 1llroCqr1reql
spvfrillaF4lrya
lsiqnt1rrrtrrA'
pardplof !lrpt9g.( tctstr ru@tf rq {rrd tnqorpfi Fptrpld gf,Otglilg1rt
EIXTU
IIIA
.relns4 sappat p
4 tu epolp$ p$o Jo ilrpr Iq {gFFrrq m$ul Fr lrrtrr q ErF+,fH
r.ourgo.F{IfJo gdar;p aqmo
fiCcro
rcroeftrr pn 6npg
Fr rufl}r I gF FeF fpupq
Fn 1nFpag t^F .d& lrgh
.ntr lrrFqFqp
Ftr1q rmlqu
mr lqdcnl
eng -gg
?ElfDott
re6rr
sFJo
rnctcnrcnr.a$woqg
rsrrnD IrE
FE
sl Ip11Un
cJt{'Dclro
m.iulrgqryfff
lroqur
fpulopr0urur
q eludro l$nqpfr ltill ol.rrrFbo lI.rA\11pc tcrcdre ilere&I
rm csgo ry'g00f0'i rrt
Z6Sq'0rtJotc.oc grdq uryo|F4g ttrlq@]seTgJo
|'Jo rtt@ Faqlt4p Frqq
(p) F
1nq pJo eennfro tpqilE
(r)q lqug
p a|r rq$Flsl
l6D'9I tE Fr.l F Jo t|re&o
(q) 9af€g I t rffil tr Jo B!.6tc F.qp ro;nra &d pnl
ffir
rqgo rocoqrd
lEoFppE q1 pro.lfy
of ot FnFr cmrdrr Frogp
E
I+Efi!
Fl6E
4nJo lEqDeilao p
.E!^H rousop
trcr! pof rfury
aopoeu
regFtco. urneog6g pcrric q
ifnwolqpw .rg
a{g0r.ro[pqrq
.qrqcb r,rfdrg
t?[ qr rorpqpg paq
Pet|rc q lalg FF||r
f'{&dqoq$ (o),Sl4,9St
ilqp1q
tF|uo lltrlFBooplt
ro, @Fqpq
r6rup
lqlqr$s
ppd erq wpopag
rcEE a uanpoplg
q|rrtu
-rgr,r|gs!trq,'q
T9
De c
04
2O O ? 3 : 1 4 Pl l
J,NBY}OIF
9I
trla boillr
tllt rn uD0o+fH rrd q peqro oq rEEFq
'.uSJo
-rt
'lu
W
'rdod pornfq rtogrr.snry llw HIlo qgrg .gI
F qeq FrncltrFsJo tr6 p rcqggnlop {qgmr1 .Zl
lood c tFr€n m|'F l'otrlDl .il
:q|mFr t.?0
rDqlEeItocn
I ul rr4 l+lf3cod
qftgl|$i
tctfEp Mcrb p pmg "g1
ItF vrt-lfFfuxtrrut
'adotr ppnf q srjcnulglrg pa HDortrl6 .o
!D qcq F!'IE4 lF|rro qr@F eg r,IcomqrqqEanq
toorCortWrncs1rql
.t
.4
:mgpp'43
urp srq lc rmr r q nq tgl r ;od ot tqpoer Hrtlrp ppc& p pneg .9
@
'ldodpr
pr qrq
Futilt
rnf q .Uegn rrqlt4 [trt rf,po _qFaS'5
''
FEJo .SrooPn ecJ r,r(mrQr q$uEcll
,noElEqfrqCqc:q
:uDtlq$rJoqlo
.$ !09tr rFn eng{oo
p
qDJo 6&uil Jo f,pn'
sr
'oS
F uerrD $.otqrilr( .ar6.90rf rrD tr.t r8 Enr I ul
F'q eiq*odrrr$
nq ?rl lrod
o qfw
tqcatV
c[ DtqD rroFdtrrp et ElqFil
q Fr$rol q|€ JqyE
DotF,q|& lFd aq pn rrgr fiCrulr
rU .g
p tuopq*rp
elp cq btsr $g trllqfiuoo F,r nrmr
stmr
s|nro coyrl|Jo rwp q ug ctr tuq qgolo
u[ F u4
5e9*
qf
lq||srt'us
Fl
s rrnr I qnq 1w p30d q tqpnor
${5
'€
De c
O 4 ?O O 7 3: 14 P1 ' l
$$flatlKF
3pnrryilnngy
'rdodpc grf { rJqFr tnDlt, DE ry
FE 4lq
Fmt
|iuJo F
$0S'6t
gD rrs r,ieam qq|mFu'l I
Ilc@&llocq'lt
:t| F cttqdore cFtDo=RsT
unp q Fr wr I q rl lr1rrrooc q e1prmr tdrh
r|,FvJFtrEf
$ln loltls t?3
ppc& ya pleng 91,
rwllrr||lg|
'r&r| pr fiT sJnnilrnrf tn.rno FS,91
r hrtF.gJo a q !0p qs a |E|qdoolc rnclr
rFJo ?olirfJo 34 eg uog c|r 1*1 {qiote
sD|rEnD uatryt