Court Papers

7/25/2019 Court Papers

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SUMMONS(ctTAcroN JUDTctAL)

NOTICE TO DEFENDANT:(AVISO AL DEMANDADO):AFK ESports, LLCAIK Bf_oadcast Networks, LLCDOES 1-25YOU,ARE BEING SUED BY PLAINTIFF:(LO ESTA DEMANDANDO EL DEMANDANTE):Kevin Wick

The name and address of the court is:(El nombre y direcci6n de ta corte es); Santa Clara County Superior Courl191 N. First Street, San Jose, CA 95113

Michael Prozan, 85 i N. San Mateo Drive, Suite C, San Mateo, 1 tel 650 348-1500AG[fiRE

(For proof ot service of this summons, use mons 0).)(Para prueba de entrega de esfa citati5n use el formulanb Proof of Service of Summons, (POS-010)).

DArE: 10/g0T I0 3{lt5 DAVTDH.YAMASAKT cierk,(Fecha) Ohipf trypnrrtive Officer. Clerk /Secrr

TSEAL}

Deputy(Adjunto)

NOTICE TO THE PERSON SERVED: You are served1- n as an individual defendant.2.

f--1as the person sued under

thefictitious

name of(specify):

under: [--l ccP 416.10 (corporation) f] CCp 410.60 (minor)[--.l ccp 416.20 (defunct corporation)-

CCp 416.70 (conservatee)f--l COP 410.40 (aosooiation or paftnersnip) [-_l CCp 416.90 (authorlzed person)[--l other (specify):

4. f-1 by personal delivery on (daie):

FAR CAURT USE ONLY(solo P FA USO DE LA COR|E)

l."ll -. . d^l-- -._--=r.,i*- .iUry-_=

7,A f] i, I1

against you without your being heard. unless you respond within 30 days. Read the

You have 30 CALENDAR DAYS after this summons and legal papers are served on you to file a written response at lhis court and have a copyserved on the plaintiff. A letler or phone call will not protect yoi. Yorir written response rirust be in proper legal form if you wanl the court to heai yourcase. There may be a court form lhat you can use for your response. You can find these court forms and more information at the California CourtsOntine Self-Help Cenler (www.couftinfo-ca.gou/seffhelp\,yout county lav,, library, or the courthouse nearest you. lf you cannot pay the filing fee, askthe court clerk for a fee waiver form. lf you do not lile your response on time, you may lose lhe case by deiault, and your wages, money, and propertymay be laken without further warning from the court.

There are other legal requirements. You may want to call an atlorney right away. lf you do not know an attorney, you may want to call an attorneyreferral service. lf you cannot afford an altorney, you may be eligible for free legal services from a nonprolil legal services program. You can locatethese nonprofit groups at the California Legal Services Web site (www.lawhelpcalifarnia.org), the California Courts Online Self-Help Center

\www.courtinfo.ca.gou/selthelp), or by contacting your local court or county bar associatlon. NOTE: The court has a statutory lien for waived lees andcosts on any settlement or arbitration award of $'10,000 or more in a civil case. The court's lien must be paid before the court will dismiss the case.iAVISO Lo han dernahdado. Si no responde dentro de 30 dlas, Ia cofte puede decidir en su contra sirl escucbar su versi6n. Lea la informacidn acontinuacidn.

Tiene 30 DIAS DE CALENDARIO despuds de que le entreguen esta citaci1n y papeles tegales para prcsentar una respuesfa por escrito en estacofte y hacer que se entregue una copla al demandante. Una carta o una llamada telef'nica no lo protegen. Su respuesla por escrito tiene que estaren formato legal cortecfo sidesea'que procesen su caso en la corte. Es posible que haya un formulario gue usted pueda usar para su respuesta.Puede encenhar estos foffiularios de la corte y mds informaci'n en el Centro de Ayuda de /as Cories de California (www.sucorte.ca .gov), en labiblioteca de leyes de su condado o en la corte que le quede mAs cerca. Si no puede pagar la cuota de presentaci6n, pida al secretario de la corteque le dd un formulaio de exenciin de pago de ciotas. Si no presenla su respuesla a tiempo, puede perder el caso por incumptimienlo y Ia corte tepadr{ quitar su sueldo, dinero y b/enes sm mds advertencla.

Hay otros rcquisfos legales. Es recomendable qiJe llame a un abogado inmediatamente. Si no conoce a un abogado, puede llamar a un seNicio deremisi5n a abogados. Si no puede pagar a un abogado, es posrb/e que cunpla con los requisitos para oblener servicios legales gratuitos de unprograma de servlchs /egales sin fnes de fuero. Puede encontrar eslos grupos sr'l,r fines de lucro en el sitio web de Califomia Legal Services,(tuww.lawhelpcalifornia.org,), en el Centro de Ayuda de las Cor{es de California, (www.suco(e.ca .gov) o ponidndose en contacto con la corte o elcalegia da abagados locales. AVISO: Por ley, la cofte tiene derecho a rcclamar las cuofas y /os costos exenfos p or imponer un gravamen sobrecualquiet recuperccidn ds $10,0A0 0 mes de valot recibida mediante un acuerdo o una concesi5n de arbitrcie en un caso de derccho ciiil- Tiene quepagar el gravamen de Ia code antes de que ta corte pueda desechar et caso.

Form Adopted ls Mandatory UseJudicial Council of CalilorniaSUM-100 lRev. July l, 2009I

Cod ot Clvil Proceduro 55 412.20. [email protected]

SUMMONS


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&*i*ixfi;$fi+*#:;;ryffi''--Ts-p $4jI.,I*V :arlr I -:i-5*ilt"r- iiJTS5i

Ir4ichael W. Prozan, CSB # 124893Ivly General Counsel Group851 N. San Mateo Drive Suite CSan Mateo, CA 94401 -2283Tel; 650 348-1500

Fax:650 348-1543Attorney Jbr Kevin lilick

\,

AFK ESports, LLC

AFK Broadcast Networks, LLC

DOES I-25

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COLINTY OF SANTA CLARA

) LTNLIMITED COMPLATNT)

I r15cu887o69l{ COMPLAINT FOR BREACI-I OFI cor'rrRAcr (wRrrrEN);)) tsREACH OF THE COVENANT OF GOOD) FAITH AND FAIR DEALING) accoLNTrNG))

)))))

Defendants

Plaintiff alleges:

THE PARTIES

1. Plaintiff Kevin Wick f'Plaintiff') is an individual who curently maintains hislegal residence in San Mateo County, California.

2. On information and belief Defendant AFK Esports LLC ("AFK") is a Californialimited liability corrrpany with its principal place of business in Santa Clara County, Califbrnia.

-i-,COMPLAINT

$':, "',.r ffi r* qra*- fl & e'*tr.fl


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3. On information and belief, Defendant AFK Broadcast Netrvorlcs L,I-C f/h/a NorthAmerican Challenger League LLC ("NAC.L") is a California limited liability company r,vitli its

principal place of business in Santa Clara County, California.

IJURISDICTION AND VENUE

4..Jurisdiction is proper in this Court because substantiaily all of acts giving rise to

the causes of action herein complained occurred in Santa Clara County and on infonnation and:

belief, DEFENDANTs resicle in:Santa Clara County.

GENERAL ALLEGATIONS

5. On or about June 16, 2014, Pluntiff and his colleague Tyler Peckham formedAFK for the purpose of operating a physical location where patrons could come together and

participate in online gaming.

6. In the fall of 20,14, NACL negotiated an agreement with AFK, Plaintiff andPeckham where AFI( would expand its business to include food and beverage service; NACL

would invest Three Flundred Thousand Dollars ($300,000) for r,vhat would ul.timately be a 51oh

profits interest; Plaintiff i,vould contribute his half of the business plan for what would ultimatelybe a 24.5Yo interest; and Tyier Feckham would contribute his half of the bursiness plarr for lor

what would ultimately be 24.Sa/o interest"

7. The parlies memorialized this agreement in an Amended and Restated OperatingAgreement dated November 25, 2A14 as true and correct copy hereof is attached as Exhibit A

(the "Operating Agreement"). For a discussion of the Capital Contributions discussed in

Paragraph 6, See Section 2.1 of the Operating Agreement.


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8. Prior to signing the Operating Agreement, Bradley Fry, on infomration and belief,a managing nrember of NACL, committed to Plaintiff that he would be paid for his services to

AFK.

9. Consistent with that understanding, Plaintiff, as the person responsible for the dayto day management of the AFK, prepared and executed an employment agreement rvith AFI(.

10. Bradley Fry and David Fry II, on information and belief managing members ofNACL and one of them being the duly authorized manager of NACL for AFK. refemed to

Plaintitf as an employee of AFK.

1 1. Pursuant to Section 1.7(i) of the Operating Agreernent, Plaintitf, Peckham andNACL are Managers of the Company.

12. As a Manager of AFK, Plaintiff is entitled "to oversee the preparation andmaintenance of the Company's [AFK's] books and records and all reports relating to the

business of the Company. . ." Operating Agreement Section 4.2(a).

13. After the parties executed the Operating Agleernent, Defendants changed the

commitment to pay Plaintiff for his seryices to say that services were part of the investment b1,

Plaintiff (contradicting the Operating Agreement, the employment agreement, and other

statements) and then eommitting to getting Plaintiff paid for sen ices after AFK had its Grand

Opening.

14. Plaintiff provided Gcneral Manager services 10 AFK and as such was responsiblefor the day to day operations of AFK.

15. Such serices were in excess of the duties of a Manager under the OperatingAgreement.


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16. FIad Plaintiff refused to provide General Manager sen ices and only provided

services as a Ma:rager under the Operating Agreer:rent, Plaintiff woulcl have been in fuii

cornpliance vu,ith the Operating Agreement. Further. AFK rvould have had to hire a third party to

oversec day to day operations.

17. After AFK opened, Det-endants changed the commitment to pay Plaintiff changed

from when AFK opened to "when the financial situation merited."

18. In May,2015, the parties'"vere trfng to resolve the issue and Plaintiff reqtiestedto be paid commensurate with pay for a General Manager for an operation like AF-K.

19.Instead of paying Plaintiff, David Fry, II purported to teminate the services of the

Plainliff as General Manager declared hirn to be "Events and Social Media Manager."

20. On information and belief, Defendants had no plan to secure a different GeneralManager.

21. Despite being "relieved" of his responsibilities, Piaintiff continued to lvott as a

General Manager for some period of time thereafter.

22. On inforrnation and belief, Defendants had no plan to recruit a new GM andinstead purporled to terminate Plaintiff as nothing more than rank bullying.

23. On information, r.vithout securing a license or agreement to pay AFK, NACLchanged its name fi'om North American Chalienger League LLC to AFK Broadcast Netu,orks

LLC to capitalize on the goodwill of the AFK name by securing name recognition tying the

broadcast network to the operating entity without payment lhere.fore.

24. Bradly Fry ald David Fry, II, as Managing Members of NACL and at least one ofwhom was the NACL mallager for AFK took many improper actions to give them confol over

AFK including, but not limited to, on infbrmation and belief:

-4-COMPLAINT


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a. Putting the lease for the premises in the name of their individual narrres.

b. Putting the liquor license in the name of NACL.

c. Putting insurance in the name of NACL.

25. Plaintiff confronted David Fry, II about a number of issues, including, but not

a. Not putting the lease, liquor iicense and insurance in the name of AFK.

b. Having rnultiple bank accounts to which Plaintiff did not have viewing rights.

c. Using company funds fol unrelated business interests of the Frys.

d.Starting

multiple other companies with the sirnilar names.26. David responded by blaming his brother Bradley and simply taking over the AF'K

declaling that none of the original members 'oowned" the company any more, that "ownerless"

company would be "wound do\,\.n" and its assets absorbed by its "parent."

21. NACL and David Fry II refused the requests of Plaintiff for financial .statementsand related financial infonnation.

28. On information, and belief, NACL paid only Ninety One Thousand Dollars($91,000) of the'fhree Hundred Thousand ($300,000) capital commitment.

29. On information and belief, Defendants i4rote a $35,000 check to AFK BroacicastNetworts, LLC and a $10,000 check to "AFK" as a "transfer."

30. While the $35,000 check has notation that it is for food and rent, Plaintiff hasnever seen any supporting documentation to confirm this clairn and believes instead that it was a

distlibution.

31. On information and belief; the shecks set forth in lQ9 were non pro ratadistlibution in breach of Section 3.7 of the Operating Agreement.

-5-CON4PLAtNl'


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WHEREFORE, TFIE PLAINTIFFS PRAY FOR THE FOLLOWING:

1. Actual damages in the amount to be proved at trial in excess of the jurisdictional

amount tbr this Court.

2. Litigation Expenses as detined in the Operating Agreement and Costs.3. Interest (including prejudgment pursuant to Civil Code Section 3287(a) and post

judgment).

4. Such other relief to rvhich the Plaintiff may be entitled by law or as the Court may

deem just and proper.October 19,2015

Michael W. Prozan. Esq.Counsel for Plaintilf KevinWick

-8-COMPI,AINT

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