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1
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ANSWER OF AUDIO VISUAL XPERTS AND THIRD PARTY DEFENDANTS TO COUNTERCLAIMS
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EXTRACTED KEY WORDS
WALKER PENNSYLVANIA CORPORATION AVERMENTS VISUAL XPERTS AUDIO VISUAL XPERTS PARAGRAPH BLACKISTON THOMAS WILLIAM SAHM JANET WALKER ATTORNEYS THIRD-PARTY PLAINTIFFS FULLY SET WHEREFORE COSTS FEES COUNTERCLAIM DELAWARE CORPORATION DEFENDANTS RESPECTFULLY REQUEST RESPONSE ANSWERING DEFENDANTS DEMAND DEFENDANTS DEMAND JUDGMENT AWARD ANSWERING DEFENDANTS HEATHER BLACKISTON PRAYER INFORMATION SUFFICIENT TRUTH |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
AUDIO VISUAL XPERTS, INC., a C.A. No.: 17261-NC
Pennsylvania corporation,
Plaintiff/Third-Party Defendant
V.
DON G. WALKER,
Defendant/Third-Party Plaintiff,
and
JANET WALKER,
Third-Party Plaintiff,
V.
WILLIAM J. SAHM, JR.; THOMAS G. I.
BLACKISTON; HEATHER BLACKISTON;
AUDIO VISUAL XPERTS, INC., a
Delaware corporation; AUDIO VISUAL
XPERTS, INC., a Pennsylvania corporation;
and WILMINGTON SAVINGS FUND
SOCIETY, FSB,
Third-Party Defendants.
ANSWER OF PLAINTIFF/COUNTERCLAIM DEFENDANT
AUDIO VISUAL XPERTS, INC., (a Pennsylvania corporation),
AND THIRD-PARTY DEFENDANTS WILLIAM J. SAHM, JR.,
THOMAS G. BLACKISTON, HEATHER BLACKISTON,
AND AUDIO VISUAL XPERTS, INC., (a Delaware corporation),
TO COUNTERCLAIMS AND THIRD-PARTY COMPLAINT
OF DON G. WALKER AND JANET WAILKER
Plaintiff/Counterclaim Defendant Audio Visual Xperts, Inc. (a Pennsylvania
corporation) and Third-Party Defendants William J. Sahm, Jr., Thomas G. Blackiston, Heather
Blackiston, and Audio Visual Xperts, Inc. (a Delaware corporation) (collectively the "Answering
Defendants"), by and through their attorneys, Manta and Welge, hereby respond to the
Counterclaims and Third-Party Complaint of Don G. Walker and Janet Walker as follows:
RESPONSE OF ANSWERING DEFENDANTS TO COUNTERCLAIM
1. Admitted in part, denied in part. Admitted that Don G. Walker and Janet
Walker have asserted certain counterclaims and third-party claims. It is denied that any of these
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2
.
MEMORANDUM OPINION
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EXTRACTED KEY WORDS
COUNTERCLAIMS COURT PLAINTIFF DEFENDANTS WALKER DEMAND DISMISS PRINCIPLES BLACKISTON SAHM LAW DELAWARE CUKER CLOSELY-HELD FUNDS MOTION LITIGATION AUDIO VISUAL XPERTS THIRD-PARTY PLAINTIFF AVX-PA WILMINGTON ESQUIRE JUDGEMENT FAILURE SHAREHOLDER BREACHES MISAPPROPRIXION COMPLAINT STOCKHOLDER |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
AUDIO VISUAL XPERTS, INC., a
Pennsylvania corporation,
Plaintiff/Third-Party Defendant, )
V. i CA. No. 17261-NC
DON G. WALKER, I
Defendant/Third-Party Plaintiff, )
and
JANET WALKER
Third-Party Plaintiff,
WILLIAM J. SAHM, JR.; THOMAS G. i
BLACKISTON; HEATHER BLACKISTON; )
AUDIO VISUAL XPERTS, INC., a
Delaware corporation; AUDIO VISUAL i
XPERTS, INC., a Pennsylvania corporation; )
and WILMINGTON SAVINGS FUND
SOCIETY, FSB, i
Third-Party Defendants. >
MEMORANDUM OPINlON
Submitted: February 8,200O
Decided: February 18, 2000
Francis G.X. Pile& Esquire and Denise Adamucci, Esquire, of MANTA AND
WELGE, Wilmington, Delaware; Attorneys for Plaintiff and Third-Party
Defendants
Daniel L. McKenty, Esquire and Steven F. Mones, Esquire, of MCCULLOUGH &
McKENTY, P.A., Wilmington, Delaware; Attorneys for Defendant and Third-
Party Plaintiffs.
LAMB. Vice Chancellor
I.
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3
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SUPPLEMENTAL REPLY BRIEF OF D. WALKER IN OPPOSITION TO DISMISSAL OF DERIVATIVE CLAIMS
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EXTRACTED KEY WORDS
DERIVATIVE CLAIMS PENNSYLVANIA WALKER DISMISS PRINCIPLES CUKER DEFENDANTS PENNSYLVANIA SUPREME AUDIO VISUAL XPERTS PLAINTIFF ALI PRINCIPLES THIRD-PARTY FACTS BLACKISTON MOVANTS PENNSYLVANIA LAW DEMAND PUBLICATION AVX ADOPTION BAR DELAWARE CORPORATION THOMAS WILMINGTON DRAIN COUNTERCLAIMS MOTION DEL STANDARD |
COURT OF CHANCERY OF THE STATE OF DELAWARE
NEW CASTLE COUNTY
AUDIO VISUAL XPERTS, INC.
(a Pennsylvania corporation),
Plaintiff/Third-Party Defendant ) C.A. No. 17261 -NC
V. ;>
DON G. WALKER,
Defendant/Third-Party Plaintiff
and
JANET WALKER,
Third-Party Plaintiff
V.
WILLIAM J. SAHM, JR.,
THOMAS G. BLACKISTON,
AUDIO VISUAL XPERTS, INC.
(a Delaware corporation),
AUDIO VISUAL XPERTS, INC.
(a Pennsylvania corporation),
WILMINGTON SAVINGS FUND
SOCIETY, FSB, and
HEATHER BLACKISTON,
Third-Party Defendants
SUPPLEMENTAL REPLY BRIEF OF DON G:. WALKER
IN OPPOSITION TO DISMISSAL OF DERIVATIVE CLAIMS
Richard A. Breuer McCullough, McKenty & Kafader, P.A.
30 South Valley Road Daniel L. McK:enty
Paoli, PA 19301 Steven F. Mones
61 o-647-4680 824 North Market Street, Fourth Floor
Attorney for Don G. Walker and P. 0. Box 397
Janet Walker Wilmington, DE 19899-0397
302-655-6749
February 8,200O
TABLE OF CONTENTS
STATEMENT OF THE CASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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4
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PLAINTIFF THIRD-PARTY DEFENDANTS SUPPLEMENTAL BRIEF IN SUPPORT OF MOTION TO DISMISS DERIVATIVE CLAIMS
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EXTRACTED KEY WORDS
PENNSYLVANIA DEFENDANTS THIRD-PARTY DISMISS CUKER COURT PLAINTIFF WALKER PRE-SUIT DEMAND PRINCIPLES DEMAND REQUIREMENTS AL1 LAW THIRD-PARTY COMPLAINT DERIVATIVE CLAIMS MIKALAUSKAS DRAIN IRREPARABLE INJURY SUPREME SHAREHOLDER DERIVATIVE LITIGATION FAILURE AUDIO VISUAL XPERTS CORPORATE GOVERNANCE PENNSVLVANIA BAR ASSN SHOWING PORTIONS OFTHE EXCEPTION |
44
d a
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
AUDIO VISUAL XPERTS, INC., a C.A. No.: 17261-NC
Pennsylvania corporation,
Plaintiff/Third-Party Defendant,
DON G. WALKER,
Defendant/Third-Party Plaintiff,
and
JANET WALKER
Third-Party Plaintiff,
V.
WILLIAM J. SAHM, JR.; THOMAS G.
BLACKISTON; HEATHER BLACKISTON;
AUDIO VISUAL XPERTS, INC., a
Delaware corporation; AUDIO VISUAL
XPERTS, INC., a Pennsylvania corporation;
and WILMINGTON SAVINGS FUND
SOCIETY, FSB,
Third-Party Defendants.
PLAINTIFF THIRD-PARTY DEFENDANTS' SUPPLEMENTAL
BRIEF IN SUPPORT OF ITS MOTION TO DISMISS DERIVATIVE CLAIMS
MANTA AND WELGE
Francis G.X. Pileggi
Denise Adamucci
919 Market Street, Suite 1400
Wilmington, DE 1980 1
(302) 655-7460
Attorneys for Plaintiff and Third-Party
Defendants, William J. Sahm, Jr.; Thomas
G. Blackiston; Heather Blackiston; Audio
Visual Xperts, Inc., a Delaware corporation;
and Audio Visual Xperts, Inc., a
Pennsylvania corporation
Dated: February 2,200O
TABLE OF CONTENTS
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5
.
PLAINTIFFS/THIRD PARTY DEFENDANTS REPLY BRIEF IN SUPPORT OF MOTION TO DISMISS
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EXTRACTED KEY WORDS
DEFENDANT/THIRD-PARTY PLAINTIFF COURT PENNSYLVANIA DELAWARE WALKER THIRD-PARTY SUPPORT CORPORATION LAW CHANCERY MOTION FACTS BUSINESS JUDGMENT RULE DISMISS COMPLAINT CONCISE STATEMENT EXAMINATION BLACKISTON WILMINGTON SAVINGS FUND SUFFICIENCY COUNTERCLAIM/THIRD-PARTY COMPLAINT SHAREHOLDERS AUDIO VISUAL XPERTS VISUAL XPERTS ALLEGATIONS APPOINTMENT OPENING MEMORANDUM FSB NATURE RELEVANT FACTS |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
AUDIO VISUAL XPERTS, INC., a C.A. No.: 17261-NC
Pennsylvania corporation,
Plaintiff/Third-Party Defendant,
V.
DON G. WALKER,
Defendant/Third-Party Plaintiff,
and
JANET WALKER,
Third-Party Plaintiff,
WILLIAM J. SAHM, JR.; THOMAS G.
BLACKISTON; HEATHER BLACKISTON;
AUDIO VISUAL XPERTS, INC., a
Delaware corporation; AUDIO VISUAL
XPERTS, INC., a Pennsylvania corporation;
and WILMINGTON SAVINGS FUND
SOCIETY, FSB,
Third-Party Defendants.
PLAINTIFF'S/THIRD-PARTY DEFENDANTS'
REPLY BRIEF IN SUPPORT OF THEIR MOTION TO DISMISS
MANTA AND WELGE
Francis G.X. Pileggi
Robert Cavalier
919 Market Street, Suite 1400
Wilmington, DE 19801
(302) 6557460
Attorneys for Plaintiff and Third-Party
Defendants, William J. Sahm, Jr.;
Thomas G. Blackiston; Heather Blackiston;
Audio Visual Xperts, Inc., a Delaware
corporation; and Audio Visual Xperts, Inc., a
DATED: November 29,1999 Pennsylvania corporation
TABLE OF CONTENTS
I. STATEMENT OF THE NATURE AND STAGE OF THE PROCEEDINGS . . . . . . . . -2
II. CONCISE STATEMENT OF ALL RELEVANT FACTS . . . . . . . . . . . . . . . . . . . . . . . .3
III. CONCISE AND ACCURATE STATEMENT OF QUESTIONS INVOLVED
IV ARGUMENT.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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6
.
ANSWERING BRIEF OF D. WALKER AND J. WALKER IN OPPOSITION TO MOTION TO DISMISS
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EXTRACTED KEY WORDS
PENNSYLVANIA COURT BLACKISTON SAHM AVX-PENNSYLVANIA DIRECT CLAIMS DEFENDANTS DEMAND MOTION PLAINTIFF SHAREHOLDER DELAWARE MESSRS DISMISS AUDIO VISUAL XPERTS THIRD-PARTY PENNSYLVANIA SUIT PRELIMINARY OBJECTIONS DIRECTORS AMENDED COMPLAINT SUFFICIENCY WSFS COUNTERCLAIM LIABILITY THIRD-PARTY DEFENIIANTS WILLIAM CORPORATE RECORDS MINORITY SHAREHOLDER LITIGATION PROVISION |
COURT OF CHANCERY OF THE STATE OF DELAWARE
NEW CASTLE COUNTY
AUDIO VISUAL, XPERTS, INC. >
(a Pennsylvania corporation), >
Plaintiff/Third-Party Defendant > C.A. No. 17261-NC
>
V. 11
DON G. WALKER, )
Defendant/Third-Party Plaintiff 1
and 1
JANET WALKER, >
Third-Party Plaintiff 1
v. 11
WILLIAM J. SAf 1M, JR., 1
THOMAS G. RLACKISTON, >
AUDIO VISUAL XPERTS, INC. >
(a Delaware corporation), >
AUDlO VISUAL XPERTS, INC. >
(a Pennsylvania corporation), >
WILMINGTON SAVINGS FUND >
SOCIETY, FSB, and >
HEATHJZR BLACK[STON, >
Third-Party Defendants >
ANSWERlNG BRIEF OF DEFENDANT/COUNTERCLAIM PLAINTIFF
DON G. WALKER AND TEfIRD-PARTY PLAINTIFF JANET WALKER
IN OPPOSITION TO THE MOTION TO DISMISS OF
PLAINTIFF/COUNTERCLAJM DEFENDANT AUDIO VISUAL XPERTS, INC.
(A PENNSYLVANfA CORPORATION) AND THIRD-PARTY DEFENIIANTS
WILLIAM J. SAHM, JR, THOMAS G. BLACKLSTON, HEATffER
BLACKISTON, AND AUDfO VISUAL XPERTS, JNC.
(A DELAWARE CORPORATION)
Richard A. Breuer McCullougl~ & McKenty, P.A.
30 South Valley Road Daniel L. McKenty
Paoli, PA 19301 Steven F. Mones
6 1 o-647-4680 824 North Market Street, Fourth Floor
Attorney for Don G. Walker and P. 0. Box 397
Janet Walker Wilmingtoll, DE 19899-0397
302-655-6749
Attorneys for Don G. Walker and
November 15, 1999 Janet Walker
TABLE OF CONTENTS
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7
.
VERIFIED COMPLAINT
|
EXTRACTED KEY WORDS
DEFENDANT FIDUCIARY DUTIES COMPLAINT ACCOUNT FUNDS BREACH IMPROPER OFFICER DEFENDANT WALKER PLAINTIFFS BOOKS MISAPPROPRIATION PERSONAL EXPENSES DUTY PLAINTIFFS ASSETS CHARGE PROPER PAY REASONABLE CARE SUFFER LOSSES PARAGRAPHS REFERENCE UNJUST ENRICHMENT REQUIRING DEFENDANT PREJUDGMENT AUDIO VISUAL XPERTS BUSINESS DELAWARE AUTHORIZATION |
QO '
\ \
`G e @
`\
i?+ g b
q-3
\ IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
Audio Visual Xperts, Inc.,
Plaintiff
V.
Don G. Walker,
Defendant
VERIFIED COMPLAINT C', ;
L-.1,;
PARTIES
1. Plaintiff, Audio Visual Xperts, Inc., is a Pennsylvania
corporation with its principal place of business currently located at 37 Lukens
Drive, New Castle, Delaware.
2. Defendant, Don G. Walker, is an individual owning a home in
the State of Delaware located at 10 Sixth Street, Rehoboth Beach, Delaware.
BACKGROUND
3. At all relevant times, Defendant was a director and officer of
Plaintiff serving as secretary and in charge of internal accounting. In that
Defendant Walker's duties and responsibilities included, among other things,
maintaining the Plaintiffs books and records.
4. During the time Defendant Walker was a director and officer of
the Plaintiff, Defendant Walker improperly diverted and misappropriated Plaintiffs
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