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CHANNEL Z v MACKENZIE Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 18,086, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: CHANNEL Z, State: DE Delaware, UniqueCaseRef: DE>CC>00018086, Mackenzie, Llc, Channel, Shareholders, Jordan, Officer, Paragraph, Allegations, Medicouno, Agreement, Manager, Counterclaims, Delaware, Jordan Kerner, Complaint, Response, Operating Agreement, Jordan Kemer, Membership, Employment, Limited Liability Company, Directors, Speaks, Shares, Accounts, Writing, Delaware Corporation, Repurchase, Equipment, Funds, Written Consent, Common Stock, John Mackenzie, Mackenzie Lacks Knowledge, Transaction, Paragraph State, Transfers, Purchase, Proper, Defending , ContentID: 120240293

Case Documents
1 2000-08-21 PLAINTIFFS REPLY AND AFFIRMATIVE DEFENSES TO COUNTERCLAIMS
[ see first page and extracted highlights below  ] ItemID: 101080
9 pages
PDF
2 2000-07-31 AMENDED ANSWER AND COUNTERCLAIMS
[ see first page and extracted highlights below  ] ItemID: 101081
19 pages
PDF
3 2000-07-10 ANSWER
[ see first page and extracted highlights below  ] ItemID: 101082
8 pages
PDF
4 2000-05-30 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101083
11 pages
PDF
Total Documents: 4 documents , 47 pages
Price: $ 34.95


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1 . PLAINTIFFS REPLY AND AFFIRMATIVE DEFENSES TO COUNTERCLAIMS

EXTRACTED KEY WORDS
PARAGRAPH
RESPONSE
LAW
PLAINTIFFS
LLC
SPEAKS
WRITING
OPERATING AGREEMENT
DEFENDANT
CHANNEL
KERNER
COUNTERCLAIMS
DELAWARE
MEDICOUNO
COMPLAINT
DOCTRINE
COUNSEL
PLAINTIFFS INCORPORATE PARAGRAPHS
REFERENCE
RELIEF
COURT
JOHN MACKENZIE
AFFIRMATIVE DEFENSES
GARY KERNER
OFFICER
SHAREHOLDERS
POSSESS KNOWLEDGE
INFORMATION SUFFICIENT
ACCORD
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                      IN AND FOR NEW CASTLE COUNTY

CHAh'NEL  Z INC., a Delaware
corporation, et al.,
                                                             C.A. No. 18086-NC
                                Plaintiffs,

                       V.

JOHN MACKENZIE,

                                Defendant.


                             PLAINTIFFS' REPLY AND AFFIRMATIVE DEFENSES
                                    j`l DEFENDANT'S COUNTERCLAIMS

           Plaintiffs Channel Z Inc. ("Z Inc."), Channel Z LLC ("Z LLC"), Jordan Kerner, Gary

Fuhrman, Heather Kerner, (Gary Kerner and Sandra Kemer reply to the counterclaims of

defendant John MacKenzie ("MacKenzie"), as follows:

           47.         Plaintiffs incorporate paragraphs 1 through 46 of the Complaint herein by

           48.         Denied. The allegations in this paragraph constitute legal conclusions and

of defendant's counterclaims to which no response is required.

           49.         Denied. The allegations in this paragraph constitute legal conclusions and

of defendant's counterclaims to which no response is required.

           50.         Admitted that defendant is a former shareholder of Z Inc. and a former

Z LLC. It is admitted that defendant formerly served as an officer and director of Z Inc. and as a

manager of Z LLC. It is further admitted that defendant was formerly an employee, officer and

director of MedicoUno an'd that Z Inc. and/or Z LLC (collectively, "Channel Z") has an equity

interest in MedicoUno. All remaining allegations are denied.

I'llILl.. 352689-l



           51.      Admitted.
SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • PLAINTIFFS' REPLY AND AFFIRMATIVE DEFENSES
  • Plaintiffs Channel Z Inc., Channel Z LLC, Jordan Kerner, Gary
  • defendant John MacKenzie, as follows:
  • of defendant's counterclaims to which no response is required.
  • It is admitted that defendant formerly served as an officer and director of Z Inc. and as a
  • director of MedicoUno an'd that Z Inc. and/or Z LLC
  • All remaining allegations are denied.
  • dated July 15, 1998, is a writing that speaks for itself.
  • The Shareholders' Agreement is a writing that speaks for itself.
  • Gary Kerner and Sandra Kerner purchased Z Inc.
  • The remaining allegations are denied as conclusions of law to which no response is required.
  • information sufficient to form a belief as to the truth of the remaining allegations.
  • The remaining allegations are denied because the Operating Agreement
  • this paragraph constitute conclusions of law to which no response is required.
  • MacIKenzie was received by counsel for Channel Z on March 27,200O.
  • Plaintiffs incorporate paragraphs 1 through 46 of the Complaint and paragraphs 47
  • through 74 above herein by reference.
  • plaintiffs do not possess knowledge or information sufficient to form
  • Defendant's counterclaims fail .to state a claim upon which relief can be granted.
  • Defendant's claims are barred by the doctrine of estoppel.
  • Defendant's claims are barred in whole, or in part, by the doctrine of accord and
  • Affirmative Defenses to Defendant's Counterclaims upon the following counsel in the manner

  • 2 . AMENDED ANSWER AND COUNTERCLAIMS

    EXTRACTED KEY WORDS
    LLC
    CHANNEL
    SHAREHOLDERS
    JORDAN
    OFFICER
    MEMBER
    COURT
    MANAGER
    COUNTERCLAIMS
    JORDAN KERNER
    AGREEMENT
    DELAWARE
    DEFENDANT
    JORDAN KEMER
    PARAGRAPH
    MEDICOUNO
    COMPLAINT
    LIMITED LIABILITY COMPANY
    ALLEGATIONS
    PLAINTIFFS
    OPERATING AGREEMENT
    DELAWARE CORPORATION
    WRITTEN CONSENT
    COMMON STOCK
    MACKENZIE LACKS KNOWLEDGE
    DIRECTORS
    EMPLOYMENT
    TRANSACTION
    DEFENDING
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                  IN AND FOR NEW CASTLE COUNTY
    
    
    
    CHANNEL Z, INC., a Delaware corporation,
    CHANNEL Z LLC, a Delaware limited liability
    company, JORDAN KERNER, GARY
    FUHRMAN, HEATHER KERNER,                               ;
    GARY  XERNER, and SANDRA KERNER,                                                                   
                                                                                                   -
                                                           i
                   Plaintiffs,                                                                     .
    
                                                           ;
           V.                                                     CA.  N o .   18086-NC   :...    .:I.`
                                                                                             _,  c;
    JOHN M-ACKENZIE,
    
                   Defendant.
    
                              MNDED  ANSWER AND COUNTERCLAIMS
    
           Defendant John Mackenzie (`Mr. Mackenzie"), by and through his undersigned
    
    attorneys, as and for his Amended Answer to the Complaint herein, and as and for his
    
    Counterclaims, states as follows:
    
           1.      Admitted.
    
           2.      Admitted.
    
           3.      Admitted, on information and belief, that Jordan Kerner is a natural person and a
    
    resident of New York, a director and officer of Z Inc., a manager of Z LLC, a shareholder of Z
    
    Inc. and a member of Z LLC. In all other respects, denied.
    
           4.      Admitted, on information and belief.
    
           5.      Admitted, on information and belief.
    
           6.      Admitted, on information and belief.
    
           7.      Denied.
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • CHANNEL Z, INC., a Delaware corporation, CHANNEL Z LLC, a Delaware limited liability company,
  • MNDED ANSWER AND COUNTERCLAIMS
  • Defendant John Mackenzie,
  • resident of New York, a director and officer of Z Inc., a manager of Z LLC, a shareholder of Z
  • he is a shareholder of Z Inc. and a member of Z LLC.
  • The allegations of this paragraph state a legal conclusion to which no response is
  • context from the terms of the Shareholders' Agreement and the Operating Agreement,
  • MedicoUno and received a salary from MedicoUno.
  • Mr. Mackenzie lacks knowledge or information sufficient
  • whether certain directors of MedicoUno initially gave and/or later withdrew their consent
  • knowled,ge or information as to whether the purported removal was by written consent.
  • and that a true and correct copy of the letter is attached to the Complaint.
  • Admitted that Mr. Mackenzie made a demand on all of the plaintiffs.
  • themselves with funds from Z Inc. and/or Z LLC for the expenses they incur in defending these
  • Z Inc. is a Delaware corporation engaged in the business of providing intemet
  • Plaintiff/Counterclaim Defendant Jordan Kemer is a
  • The July 15,, 1998 written consent also approved the sale of common stock to
  • Z Inc. Shareholders' Agreement related to their rights during their employment and the
  • Best Bet Transaction").

  • 3 . ANSWER

    EXTRACTED KEY WORDS
    PARAGRAPH
    ALLEGATIONS
    LLC
    CHANNEL
    MEDICOUNO
    COURT
    PARAGRAPH STATE
    AGREEMENT
    MEMBERS
    RESPONSE
    PURPORTS
    PARAGRAPH DIFFER
    SUBSTANCE
    CONTEXT
    RESPECTFULLY REFERS
    ACCURATE STATEMENT
    MACKENZIE LACKS
    JORDAN
    SHAREHOLDERS
    ACCOUNTS
    CONSENT
    COMPLAINT
    OFFICER
    INFORMATION SUFFICIENT
    COUNSEL
    PLAINTIFFS
    RELIEF
    MACKENZIE INCORPORATES
    FULLY SET
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                  IN AND FOR NEW CASTL,E  COUNTY
    
    
    CHANNEL 2, INC., a Delaware corporation,               1
    CHANNEL Z LLC, a Delaware limited liability
    company, JORDAN KERNER, GARY                           i
    FUHRMAN, HEATHER KERNER,
    GARY KERNER, and SANDRA KERNER,                        i                              r  ;,
                                                                                          :  :
                   Plaintiffs,                             i
           V.                                              1      C.A. No. 180%NC
                                                           1
    JOHN MACKENZIE,
                                                           1
                   Defendant.                              1
    
    
                                                ANSWER
                                                -~-
    
           Defendant John Mackenzie ("Mr. Mackcnzic"), by and through his undersigned
    
    attorneys, as and for his Answer to the Complaint herein. states as follows:
    
           1.      Admitted.
    
           2.      Admitted.
    
           3.      Admitted, on information and belief, that Jordan Kerner is a natural person and a
    
    resident oc New York. a director and officer of Z Inc., a manager of Z LLC, a shareholder of Z
    
    Inc. and a member of Z LLC. In all other respects, denied.
    
           4.      Admitted, on information and belief.
    
           5.      Admitted, on information and belief.
    
           6.      Admitted, on information and belief.
    
           7.      Denied.
    
    
    
            8.     Admitted that Mr. Mackenzie is a resident of New York; that he served as an
    
    officer an3 director of Z Inc. and as a manager of Z LLC before his purported removal; and that
    
    SNIPPETS:
  • CHANNEL Z LLC, a Delaware limited liability
  • Defendant John Mackenzie,
  • a director and officer of Z Inc., a manager of Z LLC, a shareholder of Z
  • The allegations of this paragraph state a legal conclusion to which no response is
  • context from the terms of the Shareholders' Agreement and the Operating Agreement,
  • Admitted that in the fall of 1999, Channel Z began to discontinue its other
  • MedicoUno and received a salary from MedicoUno.
  • information sufficient to form a belief as to whether the equity interests in MedicoUno were
  • wire transfers from Z Inc.`s accounts.
  • Mr. Mackenzie lacks knowledge or information sufficient
  • knowledge and consent of Jordan Kemer,
  • with the knowledge and consent of Jordan Kerner,
  • MedicoLJno shares to Z LLC members was approved by all members of Z LLC;
  • To the extent that the allegations of this paragraph differ in substance or in
  • context from the terms of the MedicoUno Stockholders' Agreement, same are denied, and Mr.
  • Mackenzie respectfully refers this Court to the Agreement for an accurate statement of its
  • Mackenzie's counsel, and that a true and correct copy of the letter is attached to the
  • Mr. Mackenzie incorporates by reference paragraphs 1 through 28 above as if
  • fully set forth herein.
  • To the extent that this paragraph purports to allege any misconduct on the part of Mr.
  • Mackenzie made a demand on all of the plaintiffs.
  • The relief sought by the plaintiffs is barred by the doctrine of unclean hands.

  • 4 . COMPLAINT

    EXTRACTED KEY WORDS
    MACKENZIE
    LLC
    MEDICOUNO
    PLAINTIFFS
    MEMBERSHIP
    SHARES
    REPURCHASE
    SHAREHOLDERS
    AGREEMENT
    EQUIPMENT
    FUNDS
    COURT
    EMPLOYMENT
    TRANSFERS
    PURCHASE
    DELAWARE
    PROPER
    ACCOUNTS
    DAMAGES
    TERMINATION
    OFFICER
    KEMER
    MANAGER
    JOHN MACKENZIE
    PARTIES
    RIGHTS
    DIRECTORS
    BUSINESS
    REQUEST
    
                       IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                    IN AND FOR. NEW CASTLE COUNTY                                     I
    
    
    CHANNEL Z INC., a Delaware
    corporation,
    
    CHANNEL Z LLC, a Delaware limited
    liability company,
    
    JORDAN KERNER,
    
    GAliY FUHRMAN,
    
    HEATHER KERNER,
    
    GARY KERNER,
    
    and
    
    SANDRA KERN-ER,
    
                              Plaintiffs.
    
                        V.
    
    JOHN MACKENZIE,
    
                              Defendant.
    
    
                                              <:OMPLAINT
    
             Plaintiffs Channel Z Inc., Channel Z LLC, Jordan Kemer, Gary Fuhrman, Heather
    
    Kemer, Gary Kemer and Sandra Kemer, bring this action against John Mackenzie seeking to
    
    recover against Mackenzie for, inter alia,  his serial breaches of his fiduciary duties to Channel Z
    
    Inc. and Channel Z LLC. Plaintiffs also seek to obtain this Court's declaration that Channel Z
    
    Inc. and Channel Z LLC properly exercised stock repurchase options contained in a shareholders'
    
    
    PHILI- 336766-l
    
    
    
    agreement  for Channel Z Inc. and an operating agreement for Channel Z LLC allowing the
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • CHANNEL Z LLC, a Delaware limited liability company,
  • Plaintiffs Channel Z Inc., Channel Z LLC, Jordan Kemer, Gary Fuhrman, Heather
  • Kemer, Gary Kemer and Sandra Kemer, bring this action against John Mackenzie seeking to
  • Inc. and Channel Z LLC properly exercised stock repurchase options contained in a
  • agreement for Channel Z Inc. and an operating agreement for Channel Z LLC allowing the
  • Sandra Kemer jointly own shares in Z Inc. and a membership interest in Z LLC.
  • Mackenzie formerly served as an officer and director of Z Inc. and as a manager of Z LLC.
  • Channel Z was in the business of providing intemet consulting
  • Prior to the winter of 1999-2000, Jordan Kemer and Mackenzie were the directors
  • All of the shareholders of Z Inc. were parties to a Shareholders' Agreement.
  • termination of his employment by Channel Z for cause.
  • Channel Z's most significant asset was its equity holding in MedicoUno Inc.
  • Channel Z's and MedicoUno's accounts and authorize checks and wire transfers from those
  • MedicoUno asked Mackenzie in 1999 to purchase for MedicoUno computer
  • equipment necessary for MedicoUno's business.
  • Mackenzie repeatedly used MedicoUno's funds, held by Channel Z, for his own personal use.
  • exercised its rights to repurchase his shares of Z Inc. and his membership interest in Z LLC.
  • business opportunities and other damages not yet presently known.
  • plaintiffs Channel Z Inc. and Channel Z LLC request judgment in their
  • deems just and proper.
  •    |