You are on page 1of 23

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 1 of 23 Page ID #:1

1
2
3
4
5
6
7

TECHLAW LLP
Dana B. Robinson (Bar No. 208265)
dana@techlawllp.com
Kayla Jimenez (Bar No. 292365)
kayla@techlawllp.com
P.O. Box 1416
La Jolla, CA 92038
Telephone: (858) 488-2545
Facsimile: (858) 777-3347
Attorneys for Plaintiff

8
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

9
10
11

DAKOTA SCHUETZ, an individual,

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

12
Plaintiff,

13
vs.

16
17
18
19

LUCKY SCOOTER PARTS, LLC, and


BRIAN JEIDE, an individual, and
ROLAND PAUL CORRIVEAU, an
individual,

20
21
22
23
24
25
26
27

5:15-cv-0416

COMPLAINT FOR DAMAGES AND


INJUNCTIVE RELIEF
DEMAND FOR JURY TRIAL RELIEF

14
15

Case No.:

Defendants.

1. False Association, 15 U.S.C. 1125(a);


2. Breach of Contract;
3. Breach of the Duty of Good Faith & Fair
Dealing;
4. Breach of Fiduciary Duty;
5. Fraud;
6. Negligent Misrepresentation;
7. Deceit;
8. Unjust Enrichment;
9. Intentional Interference with Contractual
Relations;
10. Intentional Interference with Prospective
Economic Advantage;
11. Violation of the Right of Publicity, Cal.
Civ. Code 3344;
12. Common Law Trademark Infringement;
13. State Unfair Competition, Cal. Bus. &
Prof. Code 17200;
14. State False Advertising, Cal. Bus. & Prof.
Code 17500.

28
Page 1 of 23
COMPLAINT5:15-cv-0416

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 2 of 23 Page ID #:2

Plaintiff Dakota Schuetz (herein referred to as Kota or Plaintiff) alleges

the following against Defendants Lucky Scooter Parts, LLC (Lucky) Brian Jeide

(Jeide) and Roland Paul Corriveau (Corriveau) (collectively, Defendants):

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

NATURE OF THE CASE

This is an action for False Association under the Lanham Act, Breach of

Contract, Breach of the Duty of Good Faith and Fair Dealing, Breach of Fiduciary

Duty, Fraud, Negligent Misrepresentation, Deceit, Unjust Enrichment, Intentional

Interference with Contractual Relations, Intentional Interference with Prospective

Economic Advantage, Violation of the Right of Publicity, Common Law

10

Trademark Infringement, State Unfair Competition and False Advertising. Plaintiff

11

seeks actual damages, Defendants profits, and/or statutory damages, punitive

12

damages, an award of attorneys fees and costs, and preliminary and permanent

13

injunctive relief.

14

PARTIES

15

1.

16

International Scooter Association World Champion for 2012, 2013 and 2014.

17

2.

18

liability company that distributes and sells scooters and scooter parts and

19

accessories. It is believed that Lucky does business at 8429 154th Ave., NE

20

Redmond, WA, 98052, and distributes products worldwide.

21

3.

22

principle of Lucky.

23

4.

24

and a principal of Lucky.

25
26

Kota resides in Temecula, California. Kota is a professional athlete and the

Upon information and belief, Defendant Lucky is a Washington limited

Upon information and belief, Defendant Jeide is a Washington resident and a

Upon information and belief, Defendant Corriveau is a Washington resident

JURISDICTION AND VENUE


5.

This is an action for False Association under Section 43(a) of the Lanham

27
28
Page 2 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 3 of 23 Page ID #:3

Act, 15 U.S.C. 1125(a), Breach of Contract, Breach of the Duty of Good Faith

and Fair Dealing, Breach of Fiduciary Duty, Fraud, Negligent Misrepresentation,

Deceit, Unjust Enrichment, Intentional Interference with Contractual Relations,

Intentional Interference with Prospective Economic Advantage, Violation of the

Right of Publicity, Common Law Trademark Infringement, and State Unfair

Competition and False Advertising.

6.

U.S.C. 1331 and 1332. Further, complete diversity of citizenship exists, and the

amount in controversy exceeds $75,000.

This Court has subject matter jurisdiction over this case pursuant to 28

10

7.

This Court has personal jurisdiction over Defendants based upon: (a)

11

transaction of business by Defendants by promoting and selling products in this

12

judicial district; (b) commission by Defendants of the infringing and other tortious

13

conduct underlying Plaintiffs claims, directed into this judicial district; and (c)

14

entering into a contractual relationship with Plaintiff in this judicial district which

15

was breached in this judicial district.

16

8.

17

California under 28 U.S.C. 1391(b) & (c) and 1400.

18

BACKGROUND FACTS

Venue is proper in the United States District Court for the Central District of

19

Kotas Professional Career

20

9.

21

International Scooter Association World Championships (2012-2014).

22

10.

23

his first Scooter Association World Championship at the age of 16.

24

11.

25

in one minute in the Guinness Book of World Records.

26

12.

Kota is a professional scooter athlete and the winner of the past three

Kota has been a professional scooter athlete since the age of 10. Kota won

Kota is also listed as the current world record holder of the most backflips

While Kota is certainly a celebrity in the scooter world, his popularity

27
28
Page 3 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 4 of 23 Page ID #:4

extends far beyond the sport of scootering. Kota has over 67,000 likes on

Facebook and signs thousands of autographs a year. Kota has appeared on

numerous magazine covers and television programs, including The Ellen Show

in 2013. Kotas YouTube videos have been viewed over 60 million times. Kota

was also featured in BBCs Amazing Achievements program.

13.

scooter company.

14.

sponsorship agreement. Jeide represented he was the president of Lucky, claiming

10

further that Lucky was an extremely profitable scooter manufacturing and

11

distribution company. Defendants Jeide and Corriveau promised Kota that if Kota

12

signed the sponsorship agreement with Lucky, Kota would receive a financial

13

interest in Lucky and royalties from a KOTA complete signature scooter and

14

parts that would make Kota a millionaire.

15

15.

16

several other offers from sponsors. However, Kota decided to accept a sponsorship

17

deal with Lucky based on Jeide and Corriveaus statements.

18

Kotas Negotiations with Defendants and the Sponsorship Agreement

19

16.

20

agreement, where Lucky would pay Kota $2,000.00 a month for the first year of

21

the sponsorship agreement. Corriveau, on behalf of Lucky, also agreed that Kota

22

would receive a 1% membership interest per year in Lucky and 10% of net sales

23

from KOTA signature scooter and parts.

24

17.

25

for the remaining 2 years of the sponsorship agreement. However, Jeide and

26

Corriveau told Kota that Kota would make much more than $2,000 per month

In 2012, Kota decided to seek out a sponsorship with a family-friendly

On or about July 2012, Defendant Jeide approached Kota about signing a

At the time Defendants approached Kota, Kota was 16 years old and had

Corriveau, on behalf of Lucky, proposed a three-year sponsorship

Kota informed Defendants that he was concerned about supporting himself

27
28
Page 4 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 5 of 23 Page ID #:5

after the first year, as Kota would receive distributions from his ownership in

Lucky as well as 10% of net sales from the KOTA signature scooter and parts.

18.

were displayed in stores. This promise was important to Kota, because it would

further bolster Kotas name recognition and brand.

19.

agreement with Lucky, the financial interest in Lucky and the royalties from the

KOTA products would make [Kota] a millionaire.

20.

Defendants promised to feature Kota on all Lucky marketing materials that

Jeide and Corriveau promised Kota that if Kota signed the sponsorship

Corriveau specifically told Kota that Kotas membership interest in Lucky

10

would result in a huge payout for Kota because Defendants were planning on

11

selling Lucky for a huge profit within two to three years to a larger entity, such as

12

the Trek Bicycle Corporation.

13

21.

14

agreement with Lucky on September 7, 2012. A true and correct copy of the

15

sponsorship agreement is attached hereto as Exhibit A to the Complaint (the

16

Sponsorship Agreement).

17

22.

18

plus a percentage of scooter sales. However, Kota relied on Defendants

19

representations that a sponsorship deal with Lucky would be in his best interest

20

and make him a millionaire.

21

23.

22

Agreement was the prime of Kotas career. The sport of scootering was growing,

23

and Kota won three world championships during his time at Lucky.

24

Kotas Ownership Interest in Lucky

25

24.

26

ATHLETE 3 percentage points of ownership (equity) in SPONSOR. One percent

Relying on Defendants representations, Kota signed a sponsorship

Kota had other sponsorship offers, including one offer for $5,000 per month

The time that Kota was contracted with Lucky under the Sponsorship

The Sponsorship Agreement provides that SPONSOR will grant

27
28
Page 5 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 6 of 23 Page ID #:6

of equity in SPONSOR will be granted at the end of each year of the sponsorship

for three years. (Exhibit A, p. 3).

25.

in income for Kota, and help fund Kotas retirement.

26.

In fact, Defendants never intended for Kota to receive any distributions from his

interest in Lucky, as evidenced by an email from Jeide to Kota dated January 7,

2015. Jeide stated in this email, I also want you to be aware that the only time

your equity will pay anything is if the company does a distribution or we sell the

10

company. We dont plan on selling and we have never done distributions and dont

11

plan on it in the future.

12

27.

Defendants never rendered an accounting to Kota regarding Lucky.

13

28.

Defendants also terminated Kota two days before the completion of his

14

second year of the Sponsorship Agreement.

15

29.

16

Kotas ownership interest in Lucky continue to vest.

17

30.

18

Lucky would fully vest at the time of any ownership change. (Exhibit A, p. 3 at

19

12(a)).

20

31.

21

therefore, Kotas 3% ownership interest in Lucky is fully vested.

22

Issues with Lucky Products

23

32.

24

with customized products that meet his specifications within 30 days so he can

25

practice and test them. (Exhibit A p.3).

26

33.

Defendants promised Kota that his financial interest in Lucky would result

Kota never received distributions related to his ownership interest in Lucky.

Upon information and belief, Defendants terminated Kota to avoid having

According to the Sponsorship Agreement, Kotas ownership interest in

Upon information and belief, Luckys ownership changed in 2013, and

The Sponsorship Agreement states, SPONSOR shall provide ATHLETE

Kota did not receive customized products in a condition satisfactory for his

27
28
Page 6 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 7 of 23 Page ID #:7

athletic purposes from Defendants until August 10th, 2014.

34.

specifications. For instance, several scooter decks broke after test-rides.

The KOTA Complete Signature Scooter and Royalties

35.

launch a KOTA complete signature scooter within six months... (emphasis

added). Given that the Sponsorship Agreement was executed September 7, 2012,

Defendants were required to complete the KOTA complete signature scooter by

March 7, 2013.

Frequently, the products Defendants provided to Kota did not meet Kotas

The Sponsorship Agreement provided that SPONSOR will build and

10

36.

The KOTA Complete Signature Scooter was not completed until September

11

2014, which is after Defendants terminated Kota and cancelled Kotas

12

Sponsorship Agreement.

13

37.

14

ATHLETE 10% of net sales of [the KOTA Complete Signature Scooter] for the

15

duration of the Agreement, paid quarterly. Should SPONSOR choose to build

16

KOTA signature parts, SPONSOR will remit to ATHLETE 10% of net sales of

17

each signature part. (Exhibit A p.3, emphasis added).

18

38.

19

instead of 10% of net sales on KOTA signature parts and the KOTA Complete

20

Signature Scooter, Kota would receive 15% of net sales on KOTA signature parts

21

and the KOTA Complete Signature Scooter. Jeide reiterated this in an email to

22

Kota on January 25, 2014.

23

39.

24

Scooter after Kotas termination. Thus, Kota was not able to make the amount of

25

royalties Defendants promised.

26

40.

The Sponsorship Agreement also states that Defendants shall remit to

On or about summer 2013, Defendant Jeide, on behalf of Lucky, agreed that

Defendants terminated Kota, and launched the KOTA Complete Signature

Furthermore, upon information and belief, Kota has not received all of his

27
28
Page 7 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 8 of 23 Page ID #:8

15% of net sales on the KOTA signature scooter and the KOTA signature parts.

Kotas Travel Expenses

41.

events and promotional activities. Specifically, the Sponsorship Agreement states,

SPONSOR will fund travel and lodging expenses of ATHLETE for agreed upon

competitions, events, and promotional activities.

42.

Association World Championship in England. Kota attended the event, but Lucky

did not reimburse Kota for all his expenses.

Defendants also agreed to pay Kotas travel expenses for competitions,

Defendants agreed that Kota should attend the 2014 International Scooter

10

43.

Lucky also did not reimburse Kota for the mileage, maintenance and repair

11

costs that Kota incurred while using his vehicle for Lucky.

12

44.

13

not reimburse Kota for the vehicle maintenance that was done in preparation for

14

this tour. Lucky cancelled the East Coast Sprinter Tour 2013 after Kota already

15

performed and paid for the vehicle maintenance.

16

Defendants Additional Promises to Kota

17

45.

18

him to competitions around the world.

19

46.

20

trade shows, including: Germany for ISPO (the worlds largest trade show for

21

scooters) in 2013, 2014 and 2015; Australia; China; the Scooter World

22

Championships; the InterBike Trade Show in Las Vegas; and the East Coast

23

Sprinter Tour in 2013.

24

47.

25

for the ISPO in 2013, 2014 and 2015. Defendants also cancelled the East Coast

26

Sprinter Tour in 2013 and the InterBike Trade Show Las Vegas in 2012, 2013 and

Lucky requested that Kota attend the East Coast Sprinter Tour 2013, but did

Defendants promised to promote Kota as their number-one rider, and send

Defendants specifically promised to send Kota to several countries and

Defendants cancelled the trip to Australia as well as the trips to Germany

27
28
Page 8 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 9 of 23 Page ID #:9

2014.

48.

instead promoted a different kind of professional scootering called street

scootering instead of promoting park scootering. Kota is a scooter rider known

for park scootering.

49.

promised back when Defendants approached Kota about signing the Sponsorship

Agreement.

50.

Defendants did not promote Kota as their number-one rider. Defendants

Defendants also failed to feature Kota in all marketing materials as was

Additionally, Defendants promised to pay for Kotas vehicle to be wrapped

10

with Luckys design work, and reimburse Kota for the cost of taking off the

11

previous wrap. Kotas previous wrap cost over $6,400, but Kota took the wrap off

12

his vehicle based on Defendants promises. The cost to remove the old wrap alone

13

totaled $1,000. Defendants did not reimburse Kota for the cost to remove the

14

wrap. Defendants also did not put new wrap on Kotas vehicle. As such, Kota lost

15

the opportunity to generate revenue from sponsors that would have otherwise paid

16

to have wrap, stickers and decals on Kotas vehicle.

17

Tukno Bars Dispute

18

51.

19

Bar.

20

52.

21

and business.

22

53.

The Tukno Bars are extremely popular with consumers.

23

54.

Kota had an agreement with Anthony Baker to manufacture the Tukno Bars.

24

When Kota went to order more Tukno Bars, Mr. Baker informed Kota that he did

25

not have any Tukno Bars ready because Defendants bought out the entire supply.

26

55.

Kota designed and created a scooter product, which Kota named the Tukno

Defendants agreed that Kota could sell Tukno Bars under Kotas own brand

The above-mentioned action damaged Kota and Mr. Bakers professional

27
28
Page 9 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 10 of 23 Page ID #:10

relationship.

56.

quality for price. The cheap Tukno Bars are advertised as KOTA products even

though Kota did not approve of the Tukno Bars being manufactured anywhere but

the United States. These cheap Tukno Bars have flooded the market, and

affected Kotas customers, including distributors that are trying to sell the higher

quality Tukno Bars.

57.

using Kotas name, without Kotas permission and without paying Kota any

Defendants also began to manufacturer the Tukno Bars in China, sacrificing

Upon information and belief, Defendants continue to sell Kotas Tukno Bars

10

licensing or royalty fees.

11

Kotas Performance

12

58.

13

Agreement and broken their promises to Kota, Kota has gone above and beyond

14

his obligations in the Sponsorship Agreement.

15

59.

16

promote SPONSORS products and services for up to 45 days per year. Kota has

17

promoted Lucky an average of 290 days per year.

18

60.

19

flight passes, as his mother is a flight attendant.

20

61.

21

thousands of autographs, won three world championships, set two Guinness Book

22

of World Records, and appeared in countless magazines. Kota also appeared on

23

The Ellen Show at this time, wearing a Lucky brand shirt.

24

62.

25

August 10, 2014. When Kota returned from the championship, Lucky fired Kota.

26

Defendants Misuse of Kotas Name and Image

While Defendants have disregarded their obligations in the Sponsorship

The Sponsorship Agreement requires Kota to make himself available to

Kota has also saved Defendants money by traveling using his mothers free

During the time Kota was contracted with Lucky, Kota signed tens of

Kota won his third International Scooter Association championship on

27
28
Page 10 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 11 of 23 Page ID #:11

63.

While the Sponsorship Agreement provides that All videos and

photographs of ATHLETE taken or created by SPONSORshall be considered

the intellectual property of SPONSOR, the Sponsorship Agreement does not

grant Defendants an interest in Kotas name, image or likeness. See Exhibit A to

the Complaint.

64.

to promote their business.

65.

these quotations to Kota. Defendants then published the false Kota quotations

After Kota was fired, Defendants continued to use Kotas name and image

In one instance, Defendants fabricated several quotations and attributed

10

without informing Kota or obtaining Kotas consent.

11

66.

12

products.

13

67.

14

image and likeness to promote their products.

15

68.

16

image or likeness after the contract terminated, yet Defendants continue to use

17

Kotas name, image and likeness to promote their products.

18

Defendants Current Actions

19

69.

20

fourth quarter of 2014.

21

70.

22

royalties if Kota agreed to release Defendants from everything Defendants owed

23

Kota in the past, and all royalty payments moving forward. This was unacceptable

24

to Kota.

25

71.

26

scooter parts, using Kotas name and brand, without Kotas permission and

Defendants still continue to sell KOTA named scooters and scooter

Upon information and belief, Defendants continue to use Kotas name,

Kota did not give permission to Defendants to continue to use his name,

Defendants refuse to send Kota his royalty payments for sales up to the

On or about January 7, 2015, Jeide told Kota that he would only pay Kota

Defendants continue to sell Kotas signature scooter and Kota signature

27
28
Page 11 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 12 of 23 Page ID #:12

without paying Kota royalties.

72.

reputation. For example, on social media, Kotas fans are questioning why Kota

has a signature scooter but does not ride it.

73.

Upon information and belief, Defendants have done so in order to continue

profiting from Kotas popularity without compensating Kota.

The sale of the Kota signature scooter and parts is damaging Kotas

Defendants have not announced that Kota is no longer riding for Lucky.

COUNT I

(False Association Lanham Act, 15 U.S.C. 1125(a) et seq.)

10

74.

Plaintiff incorporates the preceding allegations as if fully set forth herein.

11

75.

Defendants use in commerce of Plaintiffs name, image, likeness and

12

trademarks, including the KOTA trademark, as used on goods that do not emanate

13

from Plaintiff, constitutes a false designation of origin and false association by

14

representing that Defendants goods are associated or sponsored by Plaintiff, when

15

in fact they are not.

16

76.

17

trademarks with knowledge that Plaintiff owns, has used, and continues to use

18

Plaintiffs name, image, likeness and trademarks constitutes intentional conduct by

19

Defendants to make false designations of origin, false associations and false

20

descriptions about Defendants goods.

21

77.

22

well-established goodwill in Plaintiffs name, image, likeness and trademarks that

23

Plaintiff has developed in connection with his products and unique brand.

24

Defendants have done so to confuse consumers as to the origin, association and

25

sponsorship of Defendants goods.

26

78.

Defendants use in commerce of Plaintiffs name, image, likeness and

Defendants have deliberately and willfully attempted to trade on Plaintiffs

Defendants conduct has confused or is likely to confuse consumers as to

27
28
Page 12 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 13 of 23 Page ID #:13

the origin, association, connection or sponsorship of Defendants products in

violation of 15 USC 1125(a).

79.

suffered, and will continue to suffer, monetary loss and irreparable injury to his

business, reputation, and goodwill.

As the direct and proximate result of such false association, Plaintiff has

COUNT II

(Breach of Contract)

80.

Plaintiff incorporates the preceding allegations as if fully set forth herein.

81.

A valid agreement between Plaintiff and Defendants existed.

10

82.

The Defendants breached the agreement by failing to render distributions

11

from Lucky to Plaintiff as promised, failing to remit the proper royalties to

12

Plaintiff, failing to provide Plaintiff with customized products that met Plaintiffs

13

specifications within 30 days, failing to provide Plaintiff with evidence of his 3%

14

interest in Lucky, failing to launch the KOTA complete signature scooter within

15

six months, failing to reimburse Plaintiff for travel expenses, failing to send

16

Plaintiff to the countries promised, failing to properly promote Plaintiff as

17

promised, and failing to reimburse Plaintiff for replacing the vehicle wrap.

18

83.

19

party.

20

84.

21

condition precedent.

22

85.

The Plaintiff was damaged by Defendants breach of the agreement.

23

86.

The damages sustained by Plaintiff are reasonably ascertainable.

24

87.

The damages sustained by Plaintiff were a foreseeable consequence of the

25

Defendants breach.

26

Defendants breach was not excused by any conduct of Plaintiff or any third

Defendants breach was not the result of Plaintiffs failure to perform a

COUNT III

27
28
Page 13 of 23
COMPLAINT5:15-cv-0416

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 14 of 23 Page ID #:14

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

(Breach of the Duty of Good Faith and Fair Dealing)

88.

Plaintiff incorporates the preceding allegations as if fully set forth herein.

89.

Plaintiff and Defendants entered into a contract.

90.

Plaintiff has not breached any element of the contract with Defendants.

91.

Defendants have breached the letter and spirit of the contract by continuous

breach thereof, culminating in a refusal to pay Plaintiff what was promised,

terminating the contract right before the release of the scooter which would

generate royalties for Plaintiff, interfering with Plaintiffs business, and

withholding distributions for his membership interest in Lucky after they had

10

promised the distributions would make Plaintiff rich.

11

92.

12

contract with promises of wealth they never intended Plaintiff to receive.

13

93.

14

full well that the negative consequences to the Plaintiff would be substantial.

15

94.

16

suffered monetary damages in an amount to be determined at trial.

Defendants acted willfully and maliciously, intending to lock Plaintiff into a

Defendants acted in bad faith, looking out for their own interests, knowing

As the direct and proximate result of Defendants violation, Plaintiff has

17

COUNT IV

18

(Breach of Fiduciary Duty)

19

95.

Plaintiff incorporates the preceding allegations as if fully set forth herein.

20

96.

Defendants owed a fiduciary duty to Plaintiff to manage Lucky, and to

21

account to Plaintiff for the activities of Lucky as Plaintiff owned a membership

22

interest in Lucky.

23

97.

Defendants have not accounted to Plaintiff for the activities of Lucky.

24

98.

By virtue of the above stated acts, Defendants have, in bad faith, breached

25

their fiduciary duty to Plaintiff.

26

99.

As the direct and proximate result of Defendants bad faith breach of their

27
28
Page 14 of 23
COMPLAINT5:15-cv-0416

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 15 of 23 Page ID #:15

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

duties, Plaintiff has been damaged in an amount to be determined at trial.

COUNT V

(Fraud)

100. Plaintiff incorporates the preceding allegations as if fully set forth herein.

101. Defendants have defrauded Plaintiff by falsely representing that Plaintiffs

membership interest in Lucky and royalties from the KOTA Lucky products would

provide Plaintiff with the income promised.

102. Defendants knew that Plaintiffs membership interest in Lucky would not

result in any payment to Plaintiff, and in fact never intended to pay Plaintiff any

10

distributions from Lucky.

11

103. Defendants also knew the royalties from the KOTA Lucky products would

12

not make Plaintiff a substantial sum of money.

13

104. Defendants intended Plaintiff to rely on the aforementioned representations

14

in order to induce Plaintiff to sign the Sponsorship Agreement.

15

105. Plaintiff justifiably relied on Defendants representations, signing the

16

Sponsorship Agreement on Defendants word.

17

106. Defendants fraudulent activities have damaged Plaintiff in an amount to be

18

determined at trial.

19

COUNT VI

20

(Negligent Misrepresentation)

21

107. Plaintiff incorporates the preceding allegations as if fully set forth herein.

22

108. Defendants negligently made false allegations and misrepresentations about

23

Lucky to Plaintiff.

24

109. Defendants knew or should have known that the statements were false and

25

misrepresentative.

26

110. Plaintiff justifiably relied on Defendants representations.

27
28
Page 15 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 16 of 23 Page ID #:16

111. Defendants negligent misrepresentations have damaged Plaintiff in an

amount to be determined at trial.

COUNT VII

(Deceit)

112. Plaintiff incorporates the preceding allegations as if fully set forth herein.

113. Defendants have deceived Plaintiff and Plaintiffs fans and customers to the

detriment of everyone involved.

114. Defendants deceitful activities have damaged Plaintiff in an amount to be

determined at trial.

10

COUNT VIII

11

(Unjust Enrichment)

12

115. Plaintiff incorporates the preceding allegations as if fully set forth herein.

13

116. Plaintiffs contract specified that he is required to work 45 days of the year

14

for Defendants, but Plaintiff actually worked over 200 days a year for the

15

Defendants.

16

117. Plaintiff was not compensated for the additional days he worked for

17

Defendants.

18

118. Plaintiff was not paid for the travel and automobile expenses that he

19

incurred to the benefit of Defendants.

20

119. Plaintiff also developed and popularized the Tukno Bars, which Defendants

21

then sold to their profit.

22

120. Defendants have benefitted from Plaintiffs hard work and actions to the

23

detriment of Plaintiff in an amount to be determined at trial.

24

COUNT IX

25

(Intentional Interference with Contractual Relations)

26

121. Plaintiff incorporates the preceding allegations as if fully set forth herein.

27
28
Page 16 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 17 of 23 Page ID #:17

122. Plaintiff had a contractual relationship with the manufacturer of the Tukno

Bars that was beneficial to Plaintiff.

123. Defendants knew Plaintiff had a contractual relationship with the

manufacturer of the Tukno Bars, Mr. Baker.

124. Defendants intentionally disrupted the relationship between Plaintiff and

Mr. Baker by buying the entire supply of Tukno Bars from the manufacturer so

that the manufacturer could not fill Plaintiffs orders.

125. Defendants bought the entire supply of Tukno Bars so that Plaintiffs

business relationship and reputation would suffer.

10

126. Defendants actions have disrupted or are intended to disrupt Plaintiffs

11

relationship with Mr. Baker.

12

127. Defendants have no legal right, privilege or justification for their conduct.

13

128. As the direct and proximate cause of Defendants actions, Plaintiff has

14

suffered damages in an amount to be determined at trial.

15

129. Based on the intentional, willful and malicious nature of Defendants

16

actions, Plaintiff is entitled to recover exemplary damages and reasonable

17

attorneys fees and costs incurred in connection with this action.

18

COUNT X

19

(Intentional Interference with Prospective Economic Advantage)

20

130. Plaintiff incorporates the preceding allegations as if fully set forth herein.

21

131. Plaintiff had a longstanding economic relationship with his customers who

22

were purchasing the Tukno Bars.

23

132. Defendants knew Plaintiff had an economic relationship with his customers.

24

133. Defendants intentionally disrupted the relationship between Plaintiff and the

25

manufacturer of the Tukno Bars by taking Plaintiffs design for the Tukno Bars

26

and having cheaper versions manufactured in China so that Defendants could

27
28
Page 17 of 23
COMPLAINT5:15-cv-0416

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 18 of 23 Page ID #:18

undercut Plaintiff and Plaintiffs customers, who were distributing the Tukno Bars.

134. Defendants actions have disrupted or are intended to disrupt Plaintiffs

relationship with his customers.

135. Defendants have no legal right, privilege or justification for its conduct.

136. As the direct and proximate cause of Defendants actions, Plaintiff has

suffered damages in an amount to be determined at trial.

137. Based on the intentional, willful and malicious nature of Defendants

actions, Plaintiff is entitled to recover exemplary damages and reasonable

attorneys fees and costs incurred in connection with this action.

10

COUNT XI

11

(Violation of the Right of Publicity Cal. Civ. Code 3344)

12

138. Plaintiff incorporates the preceding allegations as if fully set forth herein.

13

139. Plaintiff has a right in his name, image and likeness.

14

140. Defendants have used and continue to use Plaintiffs name, image and

15

likeness without Plaintiffs permission on Defendants website and in Defendants

16

advertising and marketing materials.

17

141. Defendants use of Plaintiffs name, image and likeness without Plaintiffs

18

permission is deliberate and willful.

19

142. Plaintiffs reputation has been damaged by Defendants use of Plaintiffs

20

name, image and likeness.

21

143. Defendants have also profited from the use of Plaintiffs name, image and

22

likeness but have not compensated Plaintiff for this use.

23

144. Plaintiff is entitled to a permanent injunction against Defendants, as well as

24

all other remedies available under the law, including, but not limited to

25

disgorgement of profits.

26

COUNT XII

27
28
Page 18 of 23
COMPLAINT5:15-cv-0416

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 19 of 23 Page ID #:19

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

(Common Law Trademark Infringement)

145. Plaintiff incorporates the preceding allegations as if fully set forth herein.

146. By virtue of having used and continuing to use the KOTA trademark, the

Plaintiff has acquired common law rights in the KOTA trademark.

147. Defendants infringing use of the KOTA trademark is likely to cause

confusion, mistake, or deception among consumers, who will believe that

Defendants services and/or goods originate from, or are affiliated with or

endorsed by, Plaintiff when, in fact, they are not.

148. As the direct and proximate result of Defendants infringement of Plaintiffs

10

common law trademark rights, Plaintiff has suffered, and will continue to suffer,

11

monetary damages and irreparable injury to his business, reputation, and goodwill.

12

COUNT XIII

13

(State Unfair Competition Cal. Bus. & Prof. Code 17200 et seq.)

14

149. Plaintiff incorporates the preceding allegations as if fully set forth herein.

15

150. Upon information and belief, Defendants engaged in the sale of products

16

that use Plaintiffs trademarks, name, image and likeness without Plaintiffs

17

permission to do so.

18

151. Defendants have profited from the use of Plaintiffs trademarks, name,

19

image and likeness.

20

152. Defendants advertising and sale of these products has caused irreparable

21

harm to Plaintiff, and will continue to do so unless enjoined by this Court.

22

COUNT XIV

23

(False Advertising & Deceptive Trade Practices Cal. Bus. & Prof. Code 17500)

24

153. Plaintiff incorporates the preceding allegations as if fully set forth herein.

25

154. Defendants have made false statements about Defendants goods and

26

services on Defendants websites and in Defendants advertising materials.

27
28
Page 19 of 23
COMPLAINT5:15-cv-0416

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 20 of 23 Page ID #:20

155. Defendants have made false statements about Defendants goods to third

parties.

156. In the course of conducting its business, Defendants knowingly made false

representations as to affiliation, connection and/or association with Plaintiff by

using Plaintiffs trademark, name, image and likeness without Plaintiffs

permission.

157. Upon information and belief, Defendants have profited from these false

statements and misrepresentations.

158. As a direct and proximate result of Defendants false statements, Plaintiff

10

has suffered and will continue to suffer monetary damages and irreparable injury

11

to his business, reputation, and goodwill.

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

12
13

PRAYER FOR RELIEF


WHEREFORE, Plaintiff respectfully prays that the Court grant the

14

following relief:

15

A.

16
17
18
19
20
21
22

Injunctive relief to prevent ongoing infringement, false association

and unfair competition consisting of:


1. An order prohibiting Defendants from using Plaintiffs name, image
and likeness;
2. An order prohibiting Defendants from using name KOTA or any
similar mark;
3. An order instructing Defendants to deliver to Plaintiff any and all
goods bearing the KOTA name;

23

4. An order instructing Defendants to cease sale of the Tukno Bars;

24

5. An order instructing Defendants to deliver to Plaintiff any and all

25
26

goods bearing Plaintiffs name, image and likeness;


6. An order requiring Defendants to cease all conduct which implies

27
28
Page 20 of 23
COMPLAINT5:15-cv-0416

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 21 of 23 Page ID #:21

that Plaintiff or his entities are associated with, endorsed by or

sponsored by Plaintiff;

7. An order prohibiting Defendants from falsely advertising their

P.O. Box 1416


La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

companys products or services;

B.

An accounting by Defendants to Plaintiff for Lucky;

C.

An order to deliver evidence of Plaintiffs ownership of 3% of Lucky;

D.

Compensatory damages for past trademark infringement;

E.

Compensatory damages for past false association;

F.

Compensatory damages for past unfair competition;

10

G.

Compensatory damages for breach of contract;

11

H.

Compensatory damages for intentional interference with contractual

12

relations;

13
14

I.

Compensatory damages for intentional interference with prospective

economic advantage;

15

J.

Compensatory damages for fraud;

16

K.

Compensatory damages for deceit;

17

L.

Compensatory damages for unjust enrichment;

18

M.

Pursuant to 17 U.S.C. 505 and 1203(b)(4) and (5), and 1125(a), full

19

costs in litigating this matter, including reasonable attorneys fees;

20

N.

Punitive damages for Defendants willful and malicious conduct; and

21

O.

All other relief to which Plaintiff is entitled.

22
23

DATED this 5th day of March, 2015.

24

TECHLAW, LLP

25

By___/s/ Dana B. Robinson_______


Dana B. Robinson (Bar No. 208265)

26
27
28

Page 21 of 23
COMPLAINT5:15-cv-0416

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 22 of 23 Page ID #:22

1
2

P.O. Box 1416


La Jolla, CA 92038
dana@techlawllp.com

3
4

Attorney for Plaintiff

5
6
7
8
9
10
11
P.O. Box 1416
La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Page 22 of 23
COMPLAINT5:15-cv-0416

Case 5:15-cv-00416 Document 1 Filed 03/05/15 Page 23 of 23 Page ID #:23

1
2
3
4

DEMAND FOR JURY TRIAL


Plaintiff Dakota Schuetz hereby demands a jury trial as provided by Rule
38(a) of the Federal Rules of Civil Procedure.

5
6
7

DATED this 5th day of March, 2015.


TECHLAW, LLP

8
9
10
11
P.O. Box 1416
La Jolla, California 92038
(858) 488-2545 FAX: (858) 777-3347

TechLaw LLP

12
13

By___/s/ Dana B. Robinson_______


Dana B. Robinson (Bar No. 208265)
P.O. Box 1416
La Jolla, CA 92038
dana@techlawllp.com
Attorneys for Plaintiff

14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Page 23 of 23
COMPLAINT5:15-cv-0416

You might also like