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FULK v THE LAURENCE J. LONG FAMILY TRUST Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 17,747, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE 52, Plaintiff: FULK, State: DE Delaware, UniqueCaseRef: DE>CC>00017747, Fulk, Trust, Plan, Assets, Amended Complaint, Dissolution, Stockholders, Directors, Custodian, Wsa, Longs, Motion, Washington Service, Laurence, Joint Venture, Sale, Delaware, Discontinuance, Shareholders, Allegations, Report, Pursuant, Receiver, Distribution, Esq, Family Trust, Chancery, Paragraph, Buyers, Del, Computer Staff, Documentation, Parties, Corporate Assets, Employees, Discovery, Requests, Washington, Appointment, Substitute, Response, Second Amended Complaint, Continuity, Complaint , ContentID: 120240517

Case Documents
1 2001-12-07 DEFENDANTS RESPONSE TO PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION TO APPROVE THE REPORT AND RECOMMENDATIONS OF CUSTODIAN
[ see first page and extracted highlights below  ] ItemID: 127119
15 pages
PDF
2 2001-11-20 REPLY BRIEF IN SUPPORT OF PLAINTIFFS MOTION TO APPROVE THE REPORT AND RECOMMENDATIONS OF CUSTODIAN
[ see first page and extracted highlights below  ] ItemID: 127120
30 pages
PDF
3 2001-06-01 DEFENDANTS RESPONSE TO POST TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115496
14 pages
PDF
4 2001-05-22 PLAINTIFFS SUPPLEMENTAL POST-TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115497
10 pages
PDF
5 2001-04-30 PLAINTIFFS POST-TRIAL REPLY BRIEF
[ see first page and extracted highlights below  ] ItemID: 115499
19 pages
PDF
6 2001-04-30 DEFENDANTS RESPONSE TO POST-TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115498
17 pages
PDF
7 2001-04-11 PLAINTIFFS POST-TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115501
37 pages
PDF
8 2001-04-11 DEFENDANTS POST-HEARING BRIEF
[ see first page and extracted highlights below  ] ItemID: 115500
43 pages
PDF
9 2001-02-28 ANSWER OF L. LONG TO THIRD AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 115263
8 pages
PDF
10 2001-02-09 ANSWER OF LAURENCE J. LONG FAMILY TRUST
[ see first page and extracted highlights below  ] ItemID: 115264
8 pages
PDF
11 2001-02-07 THIRD AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101421
9 pages
PDF
12 2000-10-11 REPLY BRIEF OF THE TRUST
[ see first page and extracted highlights below  ] ItemID: 102560
20 pages
PDF
13 2000-10-11 REPLY OF THE TRUST TO OPPOSITION TO MOTION FOR PROTECTIVE ORDER
[ see first page and extracted highlights below  ] ItemID: 102559
8 pages
PDF
14 2000-10-02 PLAINTIFFS MEMORANDUM IN OPPOSITION TO MOTION TO APPROVE PLAN FOR DISCONTINUANCE OF WASHINGTON SERVICE ASSOC
[ see first page and extracted highlights below  ] ItemID: 102562
22 pages
PDF
15 2000-10-02 PLAINTIFFS MEMORANDUM IN OPPOSITION TO DEFENDANTS MOTION FOR PROTECTIVE ORDER
[ see first page and extracted highlights below  ] ItemID: 102561
31 pages
PDF
16 2000-09-14 MEMORANDUM IN SUPPORT OF MOTION FO LAURENCE J. LONG FAMILY TRUST FOR A PROTECTIVE ORDER
[ see first page and extracted highlights below  ] ItemID: 102563
12 pages
PDF
17 2000-09-08 MEMORANDUM IN SUPPORT OF MOTION FOR HEARING
[ see first page and extracted highlights below  ] ItemID: 102564
18 pages
PDF
18 2000-08-25 ANSWER OF DEFENDANT LAURENCE J. LONG FAMILY TRUST TO CORRECTED SECOND AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101422
7 pages
PDF
19 2000-08-04 CORRECTED SECOND AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101423
17 pages
PDF
20 2000-07-24 SECOND AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101424
9 pages
PDF
21 2000-06-07 REPLY TO PLAINTIFFS OPPOSITION TO MOTION TO SUBSITUTE PARTIES
[ see first page and extracted highlights below  ] ItemID: 102565
19 pages
PDF
22 2000-05-24 OPPOSITION OF PLAINTIFF TO MOTION TO SUBSTITUTE PARTIES
[ see first page and extracted highlights below  ] ItemID: 102566
13 pages
PDF
23 2000-04-28 MEMORANDUM IN SUPPORT OF JOINT MOTION OF DEFENDANT L. LONG AND THE L. LONG FAMILY TRUST TO SUBSTITUTE PARTIES AND TO STRIKE PORTIONS OF FIRST AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 102567
23 pages
PDF
24 2000-04-28 JOINT ANSWER TO FIRST AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101425
12 pages
PDF
25 2000-04-11 FIRST AMENDEDE COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101426
11 pages
PDF
26 2000-01-19 COMPLAINT FOR DISCONTINUANCE AND DISTRIBUTION OF ASSETS UNDER 8 DEL. C. SEC 273 FOR APPOINTMENT OF CUSTODIAN UNDER 8 DEL. C. SEC 226
[ see first page and extracted highlights below  ] ItemID: 101427
17 pages
PDF
Total Documents: 26 documents , 449 pages
Price: $ 144.95


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1 . DEFENDANTS RESPONSE TO PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION TO APPROVE THE REPORT AND RECOMMENDATIONS OF CUSTODIAN

EXTRACTED KEY WORDS
TRUST
FULK
PLAN
COMPETE
LAURENCE
CUSTODIAN
TIMOTHY
COURT
PLAINTIFFS
INJUNCTION
SELLING STOCKHOLDER
SALE
SHAREHOLDER
RISK
ESQ
RESPONSE
NON-SOLICITATION
MAXIMIZING
DISSOLUTION
EMPLOYEES
KNIGHT LLP
WASHINGTON
PURCHASER
FIDUCIARY DUTY
DISSOLUTION PROCESS
HOLLAND
PENNSYLVANIA AVENUE
EQUITABLE POWERS
SAFEGUARD
      IN THE COURT OF CHANCERY FOR THE STAT
                             IN AND FOR NEW CASTLE COUNTY


BERNARD B. FULK, III,

               Plaintiff,
                                            i
V.                                                  C.A. No. 17747
                                            i
THE LAURENCE J. LONG
FAMILY TRUST II,                            1

               Defendant.                   i)
                             DEFENDANT'S RESPONSE TO
                   PLAINTIFF'S REPLY BRIEF IN SUPPORT OF              :
                        PLAINTIFF'S MOTION TO APPROVE                       '
                     THE REPORT AND RECOMMENDATIONS                   ,'
                                OF THE CUSTODIAN                            -<

                                      MORRIS, NICHOLS, ARSHT &  TUNNEL
                                      Thomas R. Hunt, Jr., Esq.
                                      1201 N. Market Street
                                      P.O. Box 1347
                                      Wilmington, DE 19899-1347
                                      Tel. (302) 658-9200


Of Counsel:

Steven D. Gordon, Esq.
Thomas D. Leland, Esq.
HOLLAND &  KNIGHT LLP
2099 Pennsylvania Avenue, N.W.
Suite 100
Washington, D.C. 20006
Tel. (202) 9553000


December 7, 2001



                                                                                i.

                              TABLE OF CONTENTS



SNIPPETS:
  • IN THE COURT OF CHANCERY FOR THE STAT
  • BERNARD B. FULK, III,
  • DEFENDANT'S RESPONSE TO
  • Steven D. Gordon, Esq.
  • HOLLAND & KNIGHT LLP
  • 2099 Pennsylvania Avenue, N.W. Suite 100
  • The "Non-Solicitation" Injunction Proposed by the Custodian
  • The Trust, Laurence, and Timothy Long have a right to
  • Compete with WSA after their association with the
  • Maximizing WSA's value does not trump an individual's
  • The Court's equitable powers cannot be invoked to trump
  • The Custodian's Plan Maximizes Shareholder Value Even
  • The Risks Outlined by the Custodian Require a Safeguard to
  • Ensure that the Selling Stockholder Will Receive the Full
  • Wilmington Trust Co. v. Consistent Asset Mgmt.
  • plan of dissolution for Washington Service Associates,
  • Dissolution that Maximizes Shareholder Value.
  • Long"), the Trust, and/or employees of WSA have
  • of an installment sale.
  • It is ironic that Mr. Fulk has constantly hurled accusations of breach of fiduciary duty
  • (Plaintiffs Reply Brief at 16).
  • The purpose of the dissolution process is "to dispose of the assets used in [the
  • Mr. Fulk have a lawful right to compete with the purchaser after the sale.
  • the purchaser is anyone other than the Trust, there is a significant risk that WSA

  • 2 . REPLY BRIEF IN SUPPORT OF PLAINTIFFS MOTION TO APPROVE THE REPORT AND RECOMMENDATIONS OF CUSTODIAN

    EXTRACTED KEY WORDS
    CUSTODIAN
    COURT
    REPORT
    FULK
    WSA
    SALE
    RECOMMENDATIONS
    PLAN
    FIDUCIARY DUTIES
    MOTION
    CONTINUITY
    DELAWARE
    DEL
    EMPLOYEES
    PLAINTIFF
    RICHARD
    BUSINESS
    FAMILY TRUST
    FINDINGS
    SHAREHOLDERS
    WASHINGTON SERVICE
    DEFENDANT
    ESQUIRE BART
    SECURE CONTINUITY
    KEY EMPLOYEES
    RESPONSIBILITIES
    TECHNOLOGY GROUP
    DOCUMENTATION
    LAURENCE
    
                                                                             ORIGINAL 'Y
                   IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                    IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK, III,
    
                                     Plaintiff,
                                                    1
                              V.                              CA. No. 17747
                                                    ;
                                                    >
    WASHINGTON SERVICE ASSOCIATES,                  )
    INC. and THE LAURENCE J. LONG
    FAMILY TRUST II,                                ;
    
                                     Defendants.
    
    
    
                    REPLY BRIEF IN SUPPORT OF PLAINTIFF'S MOTION TO
        APPROVE THE REPORT AND RECOMMENDATIONS OF THE CUSTODIAN
    
    
    
                                                    Richards, Layton & Finger, P.A.
                                                    Daniel A. Dreisbach, Esquire
                                                    One Rodney Square
                                                    P.O. Box 551
                                                    Wilmington, Delaware 19899
                                                    (302) 658-6541
    
    
    OF COUNSEL:
    
    Allen S. Rugg, Esquire
    Bart T. Valad, Esquire
    Powell, Goldstein, Frazer & Murphy, LLP
    Sixth Floor
    1001 Pennsylvania Avenue, N. W.
    Washington, D.C. 20004
    (202) 624-7320
    
     Attorneys for Plaintiff
    
    
    
                                                                                               Table of
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • > WASHINGTON SERVICE ASSOCIATES,
  • INC. and THE LAURENCE J. LONG FAMILY TRUST II,
  • REPLY BRIEF IN SUPPORT OF PLAINTIFF'S MOTION TO APPROVE THE REPORT AND RECOMMENDATIONS OF THE
  • Attorneys for Plaintiff
  • The Trust Has Objected to Every Proposal That Would Result in a Sale of the
  • The Custodian Conducted a Comprehensive Review of WSA
  • Securing Continuity Prepariory to Sale
  • The Custodian's Plan is Designed to Address the Issues Raised Bv
  • His Findings of Fact and Should Be Adovted In Full by the Court.
  • Its Fiduciary Duties.
  • Protect the Corporation's Business.
  • Rights Under 8 Del C.
  • Mr. Fulk is Entitled to Addlitional Relief That Is Needed to

  • 3 . DEFENDANTS RESPONSE TO POST TRIAL BRIEF

    EXTRACTED KEY WORDS
    COURT
    TRUST
    PLAINTIFFS
    ACCOUNTING
    LAURENCE
    ESQ
    FINANCIAL STATEMENT
    DISTRIBUTION
    CAHILL
    WSA
    COUNSEL
    DISSOLUTION
    FAMILY TRUST
    DEFENDANTS
    RESPONSE
    THOMAS
    WASHINGTON
    PROCEEDING
    CUSTODIAN
    ACCOUNTING METHOD
    CASH BASIS
    NICHOLS
    TUNNEL
    MARKET STREET
    WILMINGTON
    HOLLAND
    KNIGHT LLP
    PENNSYLVANIA AVENUE
    NATURE
    
          IN THE COURT OF CHANCERY FOR, THE STATE OF DELAWARE
                                   IN AND FOR NE'W CASTL:E  COUNTY
    
    
    BERNARD B. FULK, III,                          >
    
                    Plaintiff,                     i
    
    V.                                             ;     C.A. No. 17747         .~
    
    THE LAURENCE J. LONG                           ;
    FAMILY TRUST II and
    LAURENCE J. LONG,                              ;                      ._
    
                    Defendants.
    
    
                        DEFENDANTS' RESPONSE TO PLAINTIFF'S
                            SUPPLEMENTAL POST-TRIAL  B:RIEF
    
    
                                             MORRIS, NICHOLS, ARSHT  & TUNNEL
                                             Thomas R. Hunt, Jr., Esq.
                                             1201. N. Market Street
                                             P.O. Box 1347
                                             Wilmington, DE 19899-1347
                                             Tel. (302) 658-9200
    
    
    Of Counsel:
    
    Steven D. Gordon, Esq.
    Thomas D. Leliand, Esq.
    HOLLAND  & KNIGHT LLP
    2099 Pennsylvania Avenue, N.W.
    Suite 100
    Washington, D.C. 20006
    Tel. (202) 955-3000
    
    
    June  1,200l
    
    
    
    INTRODUCTION
    
    NATURE AND STAGE OF THE PROCEEDING ........................................................
                                                                                                  4
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY FOR,
  • THE LAURENCE J. LONG
  • DEFENDANTS' RESPONSE TO PLAINTIFF'S
  • MORRIS, NICHOLS, ARSHT & TUNNEL
  • Thomas R. Hunt, Jr., Esq.
  • Wilmington, DE 19899-1347
  • HOLLAND & KNIGHT LLP 2099 Pennsylvania Avenue, N.W. Suite 100 Washington, D.C. 20006 Tel.
  • NATURE AND STAGE OF THE PROCEEDING
  • THE DISSOLUTION,
  • FULK AND WITHOUT OBJECTION.
  • THERE IS NO NEED FOR A CUSTODIAN TO BE
  • the Laurence J. Long Family Trust II and Laurence
  • through undersigned counsel and pursuant to Rule 171 of the
  • Washington Service Associates, Inc. ("the Corporation" or "WSA") and to obstruct
  • Plaintiffs Supplemental Post-Trial Brief at
  • caused WSA to "issue0 a misleading financial statement
  • The change in WSA's accounting method for 2001 was done to more accurately
  • that Mr. Cahill had circulated the December 5,
  • which has tradi.tionally been on a "cash basis" is commonly used in.
  • $1,500,000 as the total income that ultimately wou1.d be available for distribution
  • 1201 IV. Market Street

  • 4 . PLAINTIFFS SUPPLEMENTAL POST-TRIAL BRIEF

    EXTRACTED KEY WORDS
    ACCOUNTING
    TRUST
    REVENUE
    RECEIVER
    LONGS
    DEL
    PROFIT
    SALE
    LOSS
    PAID
    DISTRIBUTION
    COURT
    DEFENDANT
    DAUGHTER
    WSA
    PRACTICES
    OWNERSHIP
    APPOINTMENT
    CAHILL
    SHAREHOLDERS
    CUSTODIAN
    COUNSEL
    FIRM
    PAYING
    OBJECTION
    DISSOLUTION
    BUSINESS
    PAYMENT
    REPRESENTING
    
             IN THE  COURT OF CHANCERY OF THE STATE OF DELAWARE
                              IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK III,
    
             Plaintiff,
    V.
    
    THE LAURENCE  J. LONG
    FAMILY TRUST II,
    
    WASHINGTON SERVICE ASSOCIATES,
    INC.,
    
    and
    
    LAURENCE J. LONG
    
             Defendants.
    
    
    
                    PLAINTIFF'S SUPPLEMENTAL  POST-TRIAL   BRIEF
    
    
    
    
    
    OF COUNSEL:
    Allen S. Rugg, Esquire                      Daniel A. Dreisbach
    Bart T. Valad, Esquire                      Richards, Layton & Finger, P.A.
    Powell, Goldstein, Frazer & Murphy, LLP     One Rodney Square
    Sixth Floor                                 P.O. Box 551
    1001 Pennsylvania Avenue, N. W.             Wilmington, Delaware 19899
    Washington, 1D.C. 20004                     (302)658-6541
    (202)624-7320
                                                Attorneys for Plaintiff
    
    
    Dated: May  22,200l
    
    
    
                                                    TABLE OF CONTENTS
    
    
    TABLE OF AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • THE LAURENCE J. LONG FAMILY TRUST II,
  • OF COUNSEL:
  • LONG HAS UNILATERALLY CHANGED THE CORPORATION'S ACCOUNTING AND FINANCIAL PRACTICES WITHOUT
  • Recognize Most Revenue Received in 200 1,
  • Distorted Financial Picture of the Firm
  • Paying Mr. Fulk, In Violation of Their Longstanding Agreement..
  • With Its Ownership Interest, But Mr. Fulk Has Not Received the Return
  • THE LONGS HAVE HIRED JEFF CAHILL'S DAUGHTER TO WORK IN THE CORPORATION'S
  • CUSTODIAN TO ACT ON THE CORPORATION'S BEHALF UNDER 8 DEL.
  • ASSIGNED TO CONDUCT `THE FORTHCOMING SALE
  • In this action for dissolution of Washington Service Associates, Inc. ("WSA" or
  • Mr. Fulk is seeking appointment of a custodian to take charge of the
  • misleading financial statement that creates a false impression that the business of WSA
  • withheld payment of return on paid-in capital
  • Mr. Fulk and the defendant Laurence J. Long Family Trusl.
  • The Corporation Has Issued a Profit and Loss Statement That Does Not
  • The statement was prepared by Jeff Cahill,
  • In the First Quarter of 200'1, the Corporation Paid Mr.
  • whereas the corresponding distribution to Mr.
  • specifies that shareholders shall be paid a twenty percent annual return on capital.
  • March 2001, the Trust in 2001 received a payment of $3,`750, representing its return on
  • OVER MR. FULK'S OBJECTION, THE LONGS HAVE HIRED JEFF CAHILL'S DAUGHTER TO WORK IN THE
  • 6 226 OR FOR THAT POWER TO BE GRANTED TO THE RECEIVER ASSIGNED TO CONDUCT THE FORTHCOMING SALE

  • 5 . PLAINTIFFS POST-TRIAL REPLY BRIEF

    EXTRACTED KEY WORDS
    DEFENDANTS
    FULK
    RECEIVER
    COURT
    SHAREHOLDERS
    TRUST
    PLAN
    SALE
    APPOINTMENT
    WSA
    DISSOLUTION
    WASHINGTON SERVICE
    MEANINGFUL ROLE
    POTENTIAL BIDDERS
    CONTINUITY
    BUSINESS
    FAMILY TRUST
    EMPLOYEES
    PLAINTIFF
    RETENTION
    THIRD PARTY
    MARASCO NEWTON
    NEGOTIATE EMPLOYMENT
    BIDDING PROCESS
    THIRD AMENDED COMPLAINT
    EMPLOYMENT AGREEMENTS
    INSTRUCTION
    COMPUTER SYSTEMS
    TIME PERIODS
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK IlI,
    
             Plaintiff,
    V.
    
    THE LAURENCE J. LONG                                       CA. No. 17747
    FAMILY TRUST II,
    
    WASHINGTON SERVICE ASSOCIATES,
    INC.,
    
    and
    
    LAURENCE J. LONG
                                                                                        `i
             Defendants.
    
    
    
                               PLAINTIFF'S POST-TRIAL REPLY BRIEF
    
    
    
    
    
             OF COUNSEL:
    
             Allen S. Rugg, Esquire                     Daniel A. Dreisbach, Esquire
             Bart T. Valad, Esquire                     Richards, Layton  & Finger, PA
             Powell, Goldstein, Frazer & Murphy, LLP    One Rodney Square
             Sixth Floor                                P.O. Box 551
             1001 Pennsylvania Avenue, N. W.            Wilmington, Delaware 19899
             Washington, D.C. 20004                     (302) 658-6541
             (202) 624-7320                              Attorneys for Plaintiff
    
    Dated: April 30, 2001
    
    RLFI-2302394-l
    
    
    
                                                         TABLE OF CONTENTS
    
    
        TABLE OF AUTHORITIES iii
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • BERNARD B. FULK IlI,
  • FAMILY TRUST II,
  • THE LONGS CONTINUE TO RESIST ALL EFFORTS TO MAXIMIZE
  • VALUE FOR THE SHAREHOLDERS.
  • Receiver and Resist Appointment of Custodian 6
  • Under Mr. Fulk's Plan, The Court Would Appoint a Neutral Third Party
  • The Receiver Will Ensure Continuity of the Corporation's Computer
  • The Receiver Would Review the Operations of WSA For One Month
  • Plaintiff Bernard B. Fulk, 111 respectfully presents this reply to the Post-Hearing Brief
  • the Court that their plan of dissolution should be implemented to the exclusion of Mr. Fulk's
  • Washington Service Associates, Inc. at the lowest possible
  • The Court should order the sale of WSA pursuant to Mr. Fulk's plan of dissolution,
  • the defendants resist any steps to ensure continuity of WSA's
  • outside computer consultants Marasco Newton Group,
  • document the existing computer systems and ensure continuity in the event the existing staff
  • The Lonps Will Not Take Any Steps to Ensure Retention of Existing
  • the Longs refuse to attempt to negotiate employment agreements with the existing
  • no employees remain if the company is sold,
  • block efforts to purchase the Corporation by declining to cooperate with potential bidders.
  • during time periods when the availability of the existing staff was not in doubt,
  • Any rational business person would spend $171,600 in order to secure
  • since their proposed bidding process entails an unbounded number of bidding rounds.
  • the Longs oppose a meaningful role for the Court-appointed receiver.
  • Responsive to the Court's Instruction and Further Demonstrates Their
  • identified prior to the hearing" cannot be credited, as Mr. Fulk's Third Amended Complaint

  • 6 . DEFENDANTS RESPONSE TO POST-TRIAL BRIEF

    EXTRACTED KEY WORDS
    COURT
    TRUST
    PLAINTIFFS
    PLAN
    DISSOLUTION
    COUNSEL
    MARKET
    EVIDENCE
    LAURENCE
    DEFENDANTS
    ESQ
    SALE
    WSA
    PROPOSED PLAN
    RECEIVER
    SHAREHOLDERS
    FAMILY TRUST
    WASHINGTON
    CONFLICT
    COMPUTER STAFF
    TESTIMONY
    CUSTODIAN
    BUSINESS
    PROVISIONS
    MARKET STREET
    WILMINGTON
    HOLLAND
    KNIGHT LLP
    PENNSYLVANIA AVENUE
    
           IN THE: COURT OF CHANCERY FOR THE STATE OF DELAWARE
                                  IN AND FOR NEW CASTLE COUNTY
    
    
    BERNARD B. FULK, III,
    
                   Plaintiff,
    
    V.
    
    THE LAURENCE J. LONG
    FAMILY TRUST II and
    LAURENCE J. LONG,
    
                   Defendants.
    
    
          DEFENDANTS' RESPONSE TO PLAINTIFF'S POST-TRIAL BRIEF
    
    
                                           MORRIS, NICHOLS, ARSHT  & TUNNEL
                                           Thomas R. Hunt, Jr., Esq.
                                           1201 N. Market Street
                                           P.O. Box 1347
                                           Wilmington, DE  19899- 1347
                                           Tel. (302) 6589200
    
    
    Of Counsel:
    
    Steven D. Gordon, Esq.
    Thomas D. Leland, Esq.
    HOLLAND & :KNIGHT  LLP
    2099 Pennsylvania Avenue, N.W.
    Suite 100
    Washington, D.C. 20006
    Tel. (202) 9553000
    
    
    April 30, 2001
    
    
    
                                                                                    TABLE OF CONTENTS_
    
    INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    ..............  2
    
    ARGUMENT.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    
    SNIPPETS:
  • COURT OF CHANCERY FOR THE STATE OF DELAWARE
  • THE LAURENCE J. LONG FAMILY TRUST II and LAURENCE J. LONG,
  • DEFENDANTS' RESPONSE TO PLAINTIFF'S POST-TRIAL BRIEF
  • Thomas R. Hunt, Jr., Esq.
  • 1201 N. Market Street
  • Wilmington, DE 19899- 1347
  • HOLLAND &:KNIGHT LLP 2099 Pennsylvania Avenue, N.W. Suite 100 Washington, D.C. 20006 Tel.
  • M:R. FULK IS NOT BEING DRIVEN OUT OF THE
  • LONG OR THE TRUST.
  • THE TRUST'S PLAN OF DISSOLUTION IS FAIR AND IS NOT
  • T.AINTED BY ANY CONFLICT OF INTEREST.
  • THE EVIDENCE FAILS TO SUPPORT MR. FULK'S CLAIM
  • the Laurence J. Long Family Trust II and Laurence
  • through undersigned counsel and pursuant to Rule 171 of the
  • of Washington Service Associates, Inc. and that he
  • reputable experts to address these issues, adjusted its proposed plan of dissolution
  • or appointing a custodian to
  • provisions of the Trust's plan are unfair or fail to maximize shareholder value.
  • Plaintiffs Post-Trial
  • alternative approach to dissolution that would value WSA on the assumption highly favorable
  • entire WSA staff were deliverable to a new owner as part of the sale package.
  • its assets so as to obtain full and fair value for the shareholders.
  • should be adjusted due to Mr. Fulk's diminished contributions to the business.
  • Mr. Fulk himself did not assert in his testimony that he was forced to file this
  • that might "chill the market" for the Corporate assets.
  • Court has appointed an impartial custodian and receiver."

  • 7 . PLAINTIFFS POST-TRIAL BRIEF

    EXTRACTED KEY WORDS
    COURT
    PLAN
    LONGS
    DISSOLUTION
    COMPUTER STAFF
    TRUST
    DEFENDANTS
    BIDDING
    BUYERS
    PURSUANT
    CONFLICT
    PARTIES
    PLAINTIFFS
    WSA
    SHAREHOLDERS
    VALUATION
    CONTINUITY
    CUSTODIAN
    DEMONSTRATT
    BIDDING PROCESS
    COMPUTER SYSTEMS
    EMPLOYEES
    APPOINTMENT
    IBC GROUP
    MARASCO NEWTON
    DIRECTORS
    CONSOLIDATE OWNERSHIP
    STOCKHOLDERS
    DISCREDITS
    
             IN THE  COURT OF CHANCERY OF THE STATE  OF DELAWARE
                               IN AND FOR NEW CASTLE  COUNTY
    
    BERNARD B. FULK III,
    
             Plaintiff,
    V.
    
    THE LAURENCE J. LONG                                          C.A. No, 17747
    FAMILY TRUST H,
    
    WASHINGTON SERVICE ASSOCIATES,
    INC.,
    
    and
    
    LAURENCE J. LONG
    
             Defendants.
    
    
    
                                  PLAINTIFF'S POST-TRIAL BRIEF
    
    
    
    
    
    OF COUNSEL:
    
    Allen S. Rugg,  Esquire                       Daniel A.  Dreisbach,   Esquir;::'
    Bart T. Valad, Esquire                        Richards, Layton & Finger, P.&
    Powell, Goldstein, Frazer & Murphy, LLP       One Rodney Square
    Sixth Floor                                   P.O. Box 551
    100 1 Pennsylvania Avenue, N. W.              Wilmington, Delaware  19899
    Washington,  D.C. 20004                       (:302) 658-6541
    (202) 624-7320                                   Attorneys for Plaintiff
    
    Dated: April 1 I, 2001
    
    
    
                                            TABLE OF CONTENTS
    
    
    T A B L E   O F   A U T H O R I T I E S . . ..ii
    
    
    I.      INTROD~UCTION..                                                                            
    
    SNIPPETS:
  • BERNARD B. FULK III,
  • FAMILY TRUST H,
  • Bidding Pursuant To a Valuation That Assumes the Retention of the
  • T'he Parties Agree That the Corporation Should Be Dissolved.,
  • The Longs Have a Conflict of Interests Which Discredits Their Plan of
  • Dissolution and the Court Should Prevent Thern From Taking Further
  • Requires Appointment of a Custodian Under 8 Del.
  • "Corporation" or "WSA"), a Delaware joint venture corporation, pursuant to 8 Del, C. $
  • expressed goal is to force Mr. Fulk out of WSA and to consolidate ownership of the
  • l Dissolution of WSA, a Delaware joint venture corporation with two fiftypercent
  • The Longs' motivations, however, are not to sell their stake in the
  • As buyers,
  • conflict with Mr. Long's fiduciary duty as a director of the Corporation to maximize
  • Bidding Pursuant To a Valuation That Assumes the Ret_ention of the
  • that the existing computer staff would be retained:
  • is to haIre-to have an investment bank or a financial expert value the company, assuming that
  • participating in a good-faith bidding process aimed at garnering ml1 value for the
  • WSA's computer systems and would not remain with the firm in the event that Mr. Fulk
  • the defendants, their interests are adverse to Mr. Fulk, and Mr. Fulk is not in a position to
  • u:ntil such time as steps are taken to ensure continuity of the computer
  • (October 22, 1998 Letter Frorn IBC Group,
  • The uncontroverted evidence introduced by Mr. Fulk demonstrates that the Corporation should
  • There have been no directors meetings or shareholders meetings since 1992, because the only
  • Washington Service Revenue and Compensation, Plaintiffs Trial Exhibit
  • current staff becomes unavailable, and also to demonstratt?

  • 8 . DEFENDANTS POST-HEARING BRIEF

    EXTRACTED KEY WORDS
    COURT
    PLAN
    DOCUMENTATION
    DISSOLUTION
    BUSINESS
    ASSETS
    SALE
    BUYERS
    STAFF
    BIDS
    TRUST
    FACTS
    EMPLOYEES
    RECEIVER
    PLAINTIFFS
    ESQ
    CORPORATE ASSETS
    POTENTIAL BIDDERS
    EMPLOYMENT
    NEGOTIATE EMPLOYMENT
    WASHINGTON
    EMPLOYMENT AGREEMENTS
    AUCTION PROCESS
    COMPUTER SYSTEMS
    POTENTIAL PURCHASERS
    DOCUMENTATION PROJECT
    PROPOSALS
    WSA
    STRATEGIC BUYERS
    
           IN THE COURT OF CHANCERY FOR THE STATE OF' DELAWARE
                                                                                                  L
                                 IN AND FOR NEW CAST:LE  COUNTY                                   2
    
    BERNARD B. FULK, III,
    
                   Plaintiff,
    
    V.
    
    THE LAURENCE J. LONG                                                         <~
    FAMILY TRUST II and                                                          _  ..
                                                                                 .      _
    LAURENCE J. LONG,                                                            1
                                                                                 ._,             .'
    
                                                                                 -.+
                   Defendants.                                                   ,  _-
                                                                                       I  b
    
                                                                                       _'  _.
    
                           DEFENDANTS' POST-HEARING-BRIEF  '
                                                                          .._
    
    
    
                                             MORRIS, NICHOLS, ARSHT  & TUNNELL
                                             Thomas R. Hunt, Jr., Esq.
                                             1201 N. Market Street
                                             P.O. Box I!347
                                             Wilmington, DE 19899-1347
                                             Tel. (302) 658-9200
    
    
    Of Counsel:
    
    Steven D. Gordon, Esq.
    Thomas D. Leland, Esq.
    HOLLAND  & KNIGHT LLP
    2099 Pennsylvania Avenue, N.W.
    Suite 100
    Washington, D.C. 20006
    Tel. (202) 955-3000
    
    
    April 11, 2001
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY FOR THE STATE OF' DELAWARE
  • BERNARD B. FULK, III,
  • Steven D. Gordon, Esq.
  • Washington,
  • STATEMENT OF FACTS.
  • TRIJST'S PLAN OF DISSOLUTION.
  • The Sale Process Shou1.d Be Tailored To Attract Bids
  • The Limited Open Auction Proposed By The Trust
  • Will Attract Strategic Buyers And Will Maximize
  • DISCRETION OF THE RECEIVER.
  • BUSINESS IS INAPPROPRLATE, UNNECESSARY,
  • AND WOULD WASTE CORF'ORATE ASSETS.
  • The Documentation Project Would Be Very Costly.
  • TO NEGOTIATE EMPLOYMENT CONTRACTS WITH
  • THE STAFF AS A PRELUDE:

  • 9 . ANSWER OF L. LONG TO THIRD AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    PARAGRAPH
    FULK
    ADMITS
    DENIES
    ALLEGATIONS
    DEL
    ACCORDING
    SPEAKS
    CONSISTS
    COURT
    PURSUANT
    ALLEGES
    DISSOLUTION
    PLAINTIFF BERNARD
    DEFENDANT LAURENCE
    ASSETS
    APPOINTMENT
    CUSTODIAN
    JOINT VENTURE
    TRUST
    PROPER DISPOSITION
    KNOWLEDGE SUFFICIENT
    DENY
    EXHIBIT
    RELIEF
    WASHINGTON
    INCORPORATES
    DIRECTORS
    CHARACTERIZATIONS
    
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                  IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK, III,
                                                  i
                   Pla:intiff,                    1       C.A. No. 17747
          V.                                      I
    
    WASHINGTON SERVICE ASSOCIATES,                i
    INC. and LAURENCE J. LONG,                    1
    
                   Defendants.                    I1
                    ANSWER OF DEFENDANT LAURENCE J. LONG TO
      THE THIRD AMENDED COMPLAINT OF PLAINTIFF BERNARD B. FULK
                                                                              .
          Defendant Laurence J. Long ("Long"), through undersigned counsel and
    
    pursuant to Rules 8 and 12 of the Delaware Court of Chancery Rules,
    
    respectfully submits this Answer to the Plaintiff Bernard B. Fulk, III's ("Fulk's")
    
    Third Amended Complaint for Discontinuance and Distribution of Assets Under
    
    8 Del. C.  § 273 and for Appointment of a Custodian Under 8 Del. C.  5 226
    
    ("Second Amended Complaint"). Long states as follows:
    
                                          Introduction
    
          1.       No answer required. Paragraph 1 of the Third Amended Complaint
    
    consists entirely of conclusions of law and assertions about the content and
    
    effect of the Third Amended Complaint. The Third Amended Complaint and the
    
    statutes cited therein speak for themselves; accordingly, no answer is required
    
    
    
                                 Identification of the Parties
    
          2.         Admitted in part, denied in part. Long admits that the Corporation
    
    is a joint venture corporation within the meaning of 8 Del. C.  $j 273, that the
    
    Corporation's principal offices are in Washington, D.C., and that the
    
    Corporation reports and analyzes policies and information for institutional
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • ANSWER OF DEFENDANT LAURENCE J. LONG TO THE THIRD AMENDED COMPLAINT OF PLAINTIFF BERNARD B.
  • pursuant to Rules 8 and 12 of the Delaware Court of Chancery Rules,
  • Third Amended Complaint for Discontinuance and Distribution of Assets Under
  • § 273 and for Appointment of a Custodian Under 8 Del.
  • Paragraph 1 of the Third Amended Complaint
  • is a joint venture corporation within the meaning of 8 Del.
  • Long denies the allegations of Paragraph 2 of the
  • as the sole officers and directors of the Corporation since late summer or early
  • Long admits the allegations of Paragraph 8 of the Third
  • Long alleges that the Trust
  • is unable to agree with Fulk concerning the proper disposition of the corporate
  • Long is without knowledge sufficient to admit
  • speaks for itself';
  • characterizations of the By-Laws of the Corporation,
  • Paragraph 13 of the Third Amended Complaint consists entirely of
  • describes Exhibit C to the Third Amended Complaint,
  • Long incorporates and realleges Paragraphs 1 through 19 of this
  • and because Fu.lk's claim for dissolution pursuant to 8 Del.
  • Washington Service Associates, Inc.
  • knowledge sufficient to admit or deny what Fulk "desires" concerning the
  • WHEREFORE Long denies that Fulk is entitled to any of the relief prayed
  • award Long its costs and expenses according to law;

  • 10 . ANSWER OF LAURENCE J. LONG FAMILY TRUST

    EXTRACTED KEY WORDS
    AMENDED COMPLAINT
    THIRD AMENDELD
    PARAGRAPH
    TRUST ADMITS
    ALLEGATIONS
    FULK
    TRUST DENIES
    DEL
    SPEAKS
    COMPLAINT CONSISTS
    COURT
    TRUST ALLEGES
    PLAINTIFF BERNARD
    LAURENCE
    APPOINTMENT
    JOINT VENTURE
    PROPER
    CHARACTERIZATIONS
    REQUEST
    FULLY SET
    ESQ
    DEFENDANT
    FAMILY TRUST
    PURSUANT
    CUSTODIAN
    WASHINGTON
    INCORPORATES
    DIRECTORS
    PROPER DISPOSITION
    
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE  52
                                                                                        c
    
                                 IN AND FOR NEWCASTLE COUNTY
    
    BERNARD B. FULK, III,                        1
    
                   Plaintiff,
                                                      C.A. No. 17747  5,'               -_
          V.                                     i                    =; `;             :  :I
                                                                      :  ;  JT,
                                                                      :          /       I,  11
    WASHINGTON SERVICE  ASSOCIATE:S,                                  ;                                
                                                 1                    f  -~-'           c  -3          
    INC. and LAURENCE J. LONG,                                        . .r-,                  _.
                                                 i                    L'                            ,, 
                   Defendants.                                         _                 (:. ./
                                                                                              . . -.
                                                                        c
                                            -1                          :  '                   /A
                                                                         -,                   Y.L?
                                                                                ' ,;          -4
    ANSWER OF DEFENDANT THE LAURENCE J. LONG FAMILY T&ST II TO
      THE THIRD AIvIENDED  COMPLAINT OF PLAINTIFF BERNARD B. FULK
    
                   Defendant the Laurence J. Long Family Trust II ("Trust"), through
    
    undersigned counsel and pursuant to Rules 8 and 12 of the Delaware Court of
    
    Chancery Rules, respectfully submits this Answer to the Plaintiff Bernard B.
    
    Fulk, III's  ("Fulk's")  Third Amended Complaint for Discontinuance and
    
    Distribution of  A.ssets Under 8 Del. C.  § 2'73 and for Appointment of a
    
    Custodian Under 8 Del. C.  !Zj 226 ("Second Amended Complaint"). The Trust
    
    states as follows:
    
                                         moduction
    
                   1.     No answer required.    Paragraph 1 of the Third Amended
    
    Complaint consists entirely of conclusions of law and assertions about the
    
    content and effect of the Third Amended Complaint.          The Third Amended
    
    Complaint and the statutes cited therein speak for themselves; accordingly, no
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE 52
  • ANSWER OF DEFENDANT THE LAURENCE J. LONG FAMILY T&ST II TO
  • THE THIRD AIvIENDED COMPLAINT OF PLAINTIFF BERNARD B. FULK
  • Defendant the Laurence J. Long Family Trust II,
  • respectfully submits this Answer to the Plaintiff Bernard B.
  • Distribution of A.ssets Under 8 Del.
  • Custodian Under 8 Del.
  • Paragraph 1 of the Third Amended
  • Complaint consists entirely of conclusions of law and assertions about the
  • Corporation is a joint venture corporation within the meaning of 8 Del.
  • The Trust admits that the Corporation was incorporated in the
  • the Trust denies the allegations of Paragraph 2
  • of the Third Amended Complaint.
  • the Trust alleges that Laurence J.
  • Long and Fulk have served as the sole officers and directors of the
  • unable to agree with Fulk concerning the proper disposition of the corporate
  • speaks for itself;
  • characterizations of the Ely-Laws of the Corporation,
  • 1999 request for a meeting of the Board of Directors.
  • the Third Amendeld Complaint.
  • The Trust incorporates and realleges Paragraphs I through
  • 19 of this Answer as though fully set forth herein.
  • that the appointment of a Custo'dian pursuant to 8 Del.
  • Washington Service Associates, Inc.
  • the proper disposition of the Corporation,
  • Steven D. Gordon, Esq.
  • foregoing Answer Of Defendant Thle Laurence J. Long Family Trust II To

  • 11 . THIRD AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    DIRECTORS
    STOCKHOLDERS
    MEETING
    JOINT VENTURE
    ASSETS
    TRUST
    COURT
    DISCONTINUANCE
    PLAN
    APPOINT
    COMPLAINT
    BUSINESS
    STOCK
    SHAREHOLDERS
    CUSTODIANS
    PURSUANT
    SUCCESSOR
    INCORPORATOR
    DEL
    PLAINTIFF
    DISPOSE
    PRESIDENT
    DISTRIBUTION
    LAURENCE
    EXHIBIT
    PURCHASE
    ACCORDANCE
    CONVENE
    REFUSES
    
                           IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                         IN AND FOR NEW CASTLE COUNTY
    
         BERNARD B. FULK,  III,
    
                                           Plaintiff,
    
                                   v.                                     C.A. No. 17747
    
                                                              i
         WASHINGTON SERVICE ASSOCIATES,                       )
         INC., THE LAURENCE J. LONG FAMILY                    )
         TRUST II, and LAURENCE J. LONG                       >
    
                                           Defendants.        1
    
                            THIRD AMENDED COMPLAINT FOR DISCONTINUANCE
                            AND DISTRIBUTION OF ASSETS UNDER 8 DEL. C. 0 273
                   AND FOR APPOINTMENT OF A CUSTODIAN UNDER 8 DEL. C. 6 226
    
                  Plaintiff Bernard B. Fulk, III, by and through counsel, states in support of his
    
         complaint (the "Complaint"), as follows:
    
    
    
                  1.        Fulk, as, one of two fifty per cent stockholders of the Delaware joint
    
         corporation, The Washington Service Associates, Inc. (the "Corporation"), pursuant to 8 Del. C.
    
         4 273, petitions this Court to order the discontinuation of the joint venture and the
    
         its business and assets. In addition, pursuant to 8 Del. C. 0 226, Fulk petitions this Court to
    
         appoint a custodian of the Corporation, because the two stockholders and directors are so
    
         that they have failed to elect successor directors or to otherwise meet and act
    
                                                Identification of the Parties
    
                  2.        The Corporation is a Delaware joint venture corporation that was
    
         about June 7, 1988. The Corporation maintains its principal office in Washington, D.C. The
    
         Corporation operates in the business of reporting and analyzing various governmental policies
    
    \    RLFl-2263X56-l
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • THIRD AMENDED COMPLAINT FOR DISCONTINUANCE
  • AND DISTRIBUTION OF ASSETS UNDER 8 DEL.
  • AND FOR APPOINTMENT OF A CUSTODIAN UNDER 8 DEL.
  • Plaintiff Bernard B. Fulk, III, by and through counsel, states in support of his third amended
  • its business and assets.
  • In addition, pursuant to 8 Del.
  • appoint a custodian of the Corporation, because the two stockholders and directors are so
  • "Trust") are engaged in the prosecution of a joint venture in that business
  • Plaintiff Fulk was an incorporator and is presently a!rifiy percent stockholder,
  • Laurence J. Long was an incorporator, and is presently a director and the
  • president of the Corporation, Long previously owned fifty percent of the stock of the
  • On September 11, 1992, a meeting of the board of directors and shareholders of the
  • The Corporation has two equal stockholders, Fulk and the Trust, each of which has
  • and the Trust or, if no plan is agreed upon, in accordance with the instructions of this
  • meeting of stockholders and until his successor has been duly elected and shall have been
  • to and incorporated into this Complaint as Exhibit C.
  • to convene a meeting of the board of directors of the Corporation.
  • The president, who is also one of two directors whose term would have expired, refuses
  • After IBC confirmed its proposed purchase price of $16
  • the authority and actions of the custodians as the court deems appropriate.
  • Fulk desires that the stockholders discontinue the joint venture and dispose of the

  • 12 . REPLY BRIEF OF THE TRUST

    EXTRACTED KEY WORDS
    PLAN
    FULK
    TRUST
    COURT
    BID
    BIDDERS
    DISSOLUTION
    CORPORATE ASSETS
    WASHINGTON SERVICE
    DOCUMENTATION
    DATA PROCESSING
    ESQ
    SALE
    BIDDING PROCESS
    PROPOSED PLAN
    OPPOSITION
    DATA PROCESSING SYSTEMS
    FAMILY TRUST
    DISCONTINUANCE
    THIRD PARTY
    INVESTMENT BANKER
    KEY EMPLOYEES
    PURCHASER
    FULK CONTENDS
    PLAINTIFF
    DISTRIBUTION
    HOLLAND
    KNIGHT LLP
    PENNSYLVANIA AVENUE
    
            IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                IN A.ND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK, III,
    
                             Plaintiff,      >
    
                    V.                       i      C.A. No. 17747
                                             >
    THE LAURENCE J. LONG FAMILY )
          TRUST II,
                                             i
                    -and-
                                             i
    WASHINGTON  SERVlCE
          ASSOCIATES, INC.                   i
    
                             Defend.ants.    ij
    
                              REPLY BRIEF IN SUPPORT OF MOTION
                             OF DEIFENDANT THE LAURENCE J. LONG
                           FAMILY TRUST II TO APPROVE THE TRUST'S
                          PLAN OF DISCONTINUANCE AND DISTRIBUTION
            OF ASSETS OF WASHINGTON SERVICE ASSOCIATES, INC.
    
    
                                             MORRIS, NICHOLS, ARSHT  & TUNNEL
                                             Thomas J. Hunt, Jr., Esq.
                                              1201 N. Market Street
                                             P.O. Box 1347
                                             Wilmington, DE 19899-1347
                                             Tel. (302) 658-9200
    
    Of Counseel:
    
    Steven D. Gordon, Esq.
    Thomas D. Leland, Esq.
    HOLLAND  & KNIGHT LLP
    2100 Pennsylvania Avenue, N.W.
    Suite 400
    Washington, D.C. 20037
    Tel. (202) 955-3000
    
    October 11, 2000
    
    
    
                                                                               _TABLEOFCONTENTS
    
    SNIPPETS:
  • Plaintiff,>
  • FAMILY TRUST II TO APPROVE THE TRUST'S
  • PLAN OF DISCONTINUANCE AND DISTRIBUTION OF ASSETS OF WASHINGTON SERVICE ASSOCIATES,
  • Steven D. Gordon, Esq.
  • HOLLAND & KNIGHT LLP
  • 2100 Pennsylvania Avenue, N.W. Suite 400
  • MR. FULK'S PLAN OF DISSOLUTION IS FATALLY FLAWED.
  • The Corporate Assets Have Little or No Value
  • The Administration of the Bidding Process
  • Dis,tribution of Assets of Washington Service Associates, Inc. ("Fulk's Opposition").
  • proposed plan of dissolution: Mr. Fulk's proposed plan is fatally
  • Mr. Fulk launches several attacks upon the Trust's Plan,
  • creates a level playing field for all bidders.
  • the creation of a brand new corporate asset as an antecedent to the sale process.
  • The creation of such technical documentation would require an enormous
  • The follow-on 120-day period for a third party professional to market the
  • he makes the distinct argument thalt the Corporation should create a new asset of dubious
  • Mr. Fulk contends t.hat the Court should decline to adopt the Trust's Plan
  • the Corporation has assets - primarily, certain data processing systems - that have
  • which would have "locked in" key employees to
  • assure that the purchaser received a going concern.
  • val-uable enough for a reputable investment banker to be interested in undertaking
  • have an equal opportunity to make the successful bid.
  • HOLLAND & KNIGHT LLJP

  • 13 . REPLY OF THE TRUST TO OPPOSITION TO MOTION FOR PROTECTIVE ORDER

    EXTRACTED KEY WORDS
    TRUST
    DISCOVERY
    COURT
    DEPOSITION
    ASSETS
    DOCUMENTATION
    OPPOSITION
    MOTION
    PROTECTIVE ORDER
    DISSOLUTION
    ESQ
    DISCOVERY REQUESTS
    COUNSEL
    CHANCERY
    PURPOSE
    RESPONSE
    PLAN
    AFFIDAVIT
    COSTS
    DELAWARE COURT
    DEFENDANT
    LAURENCE
    FAMILY TRUST
    CREATION
    PERMISSION
    PLAINTIFFS
    TIMOTHY
    APPROVE
    FUTURE REFERENCE
    
             IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE
                                                                            #  :.I)
                                  IN AND FOR NEW CASTLE COUNTY              `i> ,>.,'
    
    BERNARD B. FULK, III,                          ))
                   Plaintj.ff,
                                                   i
    v.                                                    CA. No. 17747
                                                   1
    WASHINGTON SERVICE  ASSOCIATES,  )
    INC.,
                                                   i
                   Defendant..
                                           ---;
    
                        REPLY OF DEFENDANT THE LAURENCE  J.
                 LONG FAMILY TRUST II TO PLAINTIFF'S OPPOSITION
                 TO THE TRUST'S MOTION FOR A PROTECTIVE ORDER
                                                                    -__-
    
    
    
                                             MORRIS, NICHOLS, ARSHT & TUNNEL
                                             Thomas J. Hunt, Jr., Esq.
                                             1201 N. Market Street
                                             P.10. Eox 1347
                                             Wilmington, DE 19899-1347
                                             Tel. (302) 658-9200
    
    
    Of Counecl:
    
    Steven D. Gordon, Esq.
    Thomas ID. Leland. Esq.
    HOLL~WD  Bs KNIGHT  LLP
    2100 Pennsylvania  Avenue: N.W.
    Suite 400
    Washington, D.C. 20037
    Tctl. (202) 955-3000
    
    
    October 11. 2000
    
    
    
                                                                              TABLE OF CONTIENTS
                                                                                                       
    
    `[NTROD~IJCTION...  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE
  • REPLY OF DEFENDANT THE LAURENCE J.
  • LONG FAMILY TRUST II TO PLAINTIFF'S OPPOSITION
  • Steven D. Gordon, Esq.
  • THE T-RUST HAS FULLY RESPONDE:D TO MR. FULK'S DISCOVERY REQUESTS .._............_._.......
  • MR. FULK REALLY SE,EKS THE CREATION OF A NEW
  • FlJRTHER DISCOVERY ABSENT PERMISSION FROM
  • respectfully submits this Reply to the Plaintiffs Opposition to the Trust's
  • Motion fo-c a Protecl;ive Order.
  • Timothy .I,ong is necessary to "identify the full extent of the Corporation's assets"
  • work for the purpose of' possible future reference by a new owner.
  • Trust's Motion to Approve The Trust's Plan of Dissolution: Affidavit of Timothy M.
  • Fulk's counsel refused to explain to the Trust's counsel why he wanted to depose Mr.
  • Long when t,hc Trust's counsel inquired before filing the Mot.ion for a Protective Order.
  • Mr. Fulk acknowledges that the "documentation" he seeks simply does not
  • and taking the deposition of Timothy Long will not create it.
  • Accordingly, the costs and hardships to the Trust of proceeding wit,h the
  • Fulk in response to
  • In the rubric of Delaware Court of Chanceq
  • MR. FULK SHOULD BE PREVENTED FROM TAKING FURTHER DISCOVERY ABSIENT PERMISSION IFROM THE COURT

  • 14 . PLAINTIFFS MEMORANDUM IN OPPOSITION TO MOTION TO APPROVE PLAN FOR DISCONTINUANCE OF WASHINGTON SERVICE ASSOC.

    EXTRACTED KEY WORDS
    COURT
    ASSETS
    TRUST
    MOTION
    DISCONTINUANCE
    FULK
    WASHINGTON SERVICE
    MEMORANDUM
    PROCEEDING
    DATA PROCESSING
    BID
    REQUESTS
    CHANCERY
    DISSOLUTION
    BIDDING PROCESS
    DOCUMENT REQUESTS
    RESPONSES
    SHAREHOLDER
    PROSPECTIVE BIDDERS
    DATA PROCESSING SYSTEMS
    WSA
    ADMISSION
    DISCOVERY
    THIRD PARTY
    CASTLE COUNTY
    OPPOSITION
    NATURE
    PROSPECTIVE BUYERS
    CUSTOMERS
    
                       IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                 IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B . FULK III,                        >
    
                                  Plaintiff,     ;
                         V.                      ) C.A. No. 17747
    
    THE LAURENCE J. LONG FAMILY                  ;
    TRUST II and WASHINGTON SERVICE              )
    ASSOCIATES, INC.,                            )                                       .
    
                                  Defendants.
    
    
                PLAINTIFF'S MEMORANDUM IN OPPOSITION TO DEFENDANT'S
                        MOTION TO APPROVE: THE DEFENDANT'S PLAN FOR
               DISCONTINUANCI5  OF WASHINGTON SERVICE ASSOCIATES, INC.
    
    
    
    OF COUNSEL:
    
    Allen S. Rugg                                     Daniel A. Dreisbach
    Bart T. Valad                                     Richards, Layton & Finger, P.A.
    Powell, Goldstein, Frazer & Murphy, LLP           One Rodney Square
    Sixth Floor                                       P.O. Box 551
    1001 Pennsylvania Avenue, N. W.                   Wilmington, Delaware 19899
    Washington, D.C. 20004                            (302) 658-6541
    (202) 624-7320                                     Attorneys for Plaintiff
    
    
    
    
    
    Dated: October 2. 2000
    
    
    
    
    
    
    RLFl-2213 104-l
    
    
    
                                               TABLE: OF CONTENTS
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • IN AND FOR NEW CASTLE COUNTY
  • PLAINTIFF'S MEMORANDUM IN OPPOSITION TO DEFENDANT'S
  • MOTION TO APPROVE: THE DEFENDANT'S PLAN FOR DISCONTINUANCI5 OF WASHINGTON SERVICE ASSOCIATES,
  • NATURE AND STAGE OF THE PROCEEDING.
  • That the Assets of the Corporation Have Little or No Value
  • Reason Will Not Maximize Shareholder Value
  • Documented Prior to Initiation of the Bidding Process
  • IN DISSOLUTION OF THE CORPORATION
  • Defendant the Laurence J. Long Family Trust II's Motion to Approve the Trust's
  • Plan Ijor Discontinuance of Washington Service Associates,
  • Plaintiff Bernard B. Fulk, III as the owner of fifty percent of the stock
  • Corporation's proprietary software and data processing assets.
  • unsuccessful in his effort to bid for the Corporation, he would establish a separate
  • the successful launch and growth of WSA since its founding in 1988.
  • On August 25,2000, Mr. Fulk served discovery requests on theTrust.
  • Admission, Interrogatories, Document Requests, and Notice of the Deposition of Timothy
  • `Interrogatory number 1 asks for a full explanation of all Requests For Admission not fully
  • (See the Trust's Response to Plaintiffs First Set of Interrogatories ("Trust's Interrogatory
  • of the Corporation's customers receive specialized or customized information,
  • way that will permit prospective bidders to fully evaluate their value.
  • Although the Corporation has assets -- consisting primarily of certain data processing
  • In order to successfully solicit bids by serious third party buyers,
  • allowance that bona fide prospective buyers will be afforded the

  • 15 . PLAINTIFFS MEMORANDUM IN OPPOSITION TO DEFENDANTS MOTION FOR PROTECTIVE ORDER

    EXTRACTED KEY WORDS
    FULK
    COURT
    REQUEST
    ASSETS
    PLAINTIFF
    PROTECTIVE ORDER
    MOTION
    DATA PROCESSING
    DEFENDANT
    INSIDER TRADING
    RESPONSE
    DISCOVERY
    LAURENCE
    FAMILY TRUST
    ADMISSION
    EZ-EDGAR/SELECT FILINGS WATCH
    CUSTOMERS
    MEMORANDUM
    OPPOSITION
    DISSOLUTION
    DOCUMENTATION
    DEPOSITION
    DISTRIBUTION CHANNELS
    COMPUTER SYSTEMS
    COMPUTER-RELATED ASSETS
    PROPRIETARY DATA PROCESSING
    CORPORATE RESOURCES
    CASTLE COUNTY
    PROCEEDING
    
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK UI,
                                                t
                                 Plaintiff,
                        V.                      ; C.A. No. 17747
    
    THE LAURENCE J. L,ONG FAMILY                i
    TRUST II and WASHINGTON SERVICE             )
    ASSOCIATES, INC.,
                                                ;
                                 Defendants.    1
    
    
             PLAINTIFF'S MEMORANDUM IN OPPOSITION TO DEFENDANT THE
     LAURENCE J. LONG FAMILY TRUST II'S MOTION FOR A PROTECTIVE ORDER
    
    
    
    OF COUNSEL:
    
    Allen S. Rugg                                    Daniel A. Dreisbach
    Bart T. Valad                                    Richards, Layton & Finger, PA
    Powell, Goldstein, Frazer & Murphy, LLP          One Rodney Square
    Sixth Floor                                      P.O. Box 551
    1001 Pennsylvania Avenue, N. W.                  Wilmington, Delaware 19899
    Washington, D.C. 20004                           (302) 658-6541
    (202) 624-7320                                    Attorneys for Plaintiff
    
    
    
    
    
    Dated: October 2, 2000
    
    
    
    
    
    
    KLFI-2213131-l
    
    
    
                                                TABLE OF CONTENTS
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • IN AND FOR NEW CASTLE COUNTY
  • BERNARD B. FULK UI,
  • PLAINTIFF'S MEMORANDUM IN OPPOSITION TO DEFENDANT THE LAURENCE J. LONG FAMILY TRUST II'S
  • THE DEPOSITION OF TIMOTHY LONG IS NECESSARY BECAUSE E HAS KNOWLEDGE OF THE CORPORATION'S DATA
  • COMPUTER-RELATED ASSETS
  • THE TRUST'S OPF'OSITION TO DISCOVERY AND DOCUMENTATION OF THE CORPORATION'S ASSETS HAS
  • Plaintiff Bernard B. Fulk, III, by counsel and pursuant to Rule 171 of the Court of
  • _WATURlE AND STAGE OF THE PROCEEDING
  • Requests For Admission, objected to certain of Mr. Fulk's Interrogatories and Document
  • in which this Court granted its request to be substituted as a party.
  • Insider Trading system, SEC Form 144s by the Insider Trading system, Insider
  • recognize and admit the deficiencies in the Corporation's documentation of its
  • The Corporation e:xpended corporate resources including but not limited to man-hours to
  • The Corporation owns and operates a unique and proprietary data processing system known as
  • The Corporation expended corporate resources including but not limited to employee man-hours
  • Data processed and output from the EZ-Edgar/Select Filings Watch system is provided to
  • have purchased it and to the distribution channels used to
  • The FMR Applicatitans Program Interface allows Fidelity to access from a remote location data

  • 16 . MEMORANDUM IN SUPPORT OF MOTION FO LAURENCE J. LONG FAMILY TRUST FOR A PROTECTIVE ORDER

    EXTRACTED KEY WORDS
    FULK
    TRUST
    DEPOSITION
    REQUESTS
    COURT
    DISSOLUTION
    ASSETS
    COUNSEL
    PROTECTIVE ORDER
    DISSOLUTION PROCESS
    RESPONSE
    MOTION
    TRUSTEE
    LAURENCE
    PROCEEDING
    DEL
    CHANCERY
    DELAWARE COURT
    ESQ
    DISCOVERY ABSENT
    PARTY
    BURDENSOME
    SUPPORT
    PREVENTING
    PERMISSION
    CHANDLER
    PLAN
    PRECLUDING
    LISTS
    
             IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE
    
                                 IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK, III,
    
                   Plaintiff,
    
    V.                                            I     C.A. No. 17747
                                                  )
    WASHINGTON SERVICE ASSOCIATES, )
    INC.,                                         >)
                   Defendant.                     )
    
    
           MEMORANDUM IN SUPPORT OF MOTION OF DEFENDANT THE
          LAURENCE J. LONG FAMILY TRUST II FOR A PROTECTIVE ORDER
    
    
    
    
                                            MORRIS, NICHOLS, ARSHT & TUNNEL
                                            Thomas J. Hunt, Jr., Esq.
                                            1201 N. Market Street
                                            P.O. Box 1347
                                            Wilmington, DE 19899-1347
                                            (302) 658-9200
                                             Attorneys for Defendant The Laurence J.
                                             Long Family Trust II
    
    
    
    Of Counsel:
    
    Steven D. Gordon, Esq.
    Thomas D. Leland, Esq.
    HOLLAND  & KNIGHT LLP
    2100 Pennsylvania Avenue, N.W.
    Suite 400
    Washington, D.C. 20037
    (202) 955-3000
    
    
    September 14,200O
    
    
    
                                                                                 TABLE OF CONTENTS
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE
  • MEMORANDUM IN SUPPORT OF MOTION OF DEFENDANT THE LAURENCE J. LONG FAMILY TRUST II FOR A
  • Steven D. Gordon, Esq.
  • LONG AS TRUSTEE OF THE TRUST IS UNNECESSARY AND THE COURT SHOULD QUASH THE DEPOSITION NOTICE.
  • MR. FULK SHOULD BE PREVENTED FROM TAKING FURTHER DISCOVERY ABSENT EXPRESS PERMISSION FROM THE
  • Del.
  • Chandler, V.C..
  • Delaware Court of Chancery Rule 26.
  • undersigned counsel and pursuant to Rule 26of the Delaware Court of Chancery
  • NATURE AND STAGE OF THE PROCEEDING Plaintiff Bernard B. Fulk III filed this dissolution
  • ever since it entered this case in April (it was not named as a party in the
  • dissolution for the Corporation, but its efforts have been futile.
  • of discovery regarding the assets and operations of the Corporation.
  • pages of documents for Mr. Fulk, in response to his "informal" written request.
  • discovery requests on the Trust.
  • dissolution process, which already has been significantly delayed by Mr. Fulk.
  • Motion For a Hearing to Approve the Trust's Plan of Discontinuance and
  • client lists and revenue per client,
  • Long and precluding Mr. Fulk from conducting any further discovery absent the
  • The frequency or extent of use of the discovery methods set forth in paragraph shall be of the case, the amount in controversy, limitations on the parties' resources, and the importance
  • Long and preventing Mr. Fulk from further

  • 17 . MEMORANDUM IN SUPPORT OF MOTION FOR HEARING

    EXTRACTED KEY WORDS
    ASSETS
    TRUST
    DISSOLUTION
    COUNSEL
    REVISED PLAN
    REQUESTS
    ORIGINAL PLAN
    FULK
    FIRST REVISED PLAN
    WASHINGTON SERVICE
    PARTIES
    DISCONTINUANCE
    RESPONSE
    MOTION
    STOCK
    DISTRIBUTION
    PRIVATE SALE
    INVESTMENT BANKER
    PROSPECTIVE BUYERS
    CORPORATE ASSETS
    THIRD PARTY
    AMENDED COMPLAINT
    DISCOVERY REQUESTS
    DEFENDANT
    FAMILY TRUST
    PROCEEDING
    FACTS
    KNIGHT
    PENNSYLVANIA AVENUE
    
             IN THE COURT OF CHANCERY FOR THE STATE OF DELAWARE                          c/
                                 IN AND :FOR NEW CASTLE COUNTY
    
    13ERNARD  B. FULK, III,                        >
    
                   Plaintiff,                      ;
    
    V .                                            ',    C.A. No. 17747
                                                   1
    WASHINGTON SERVICE ASSOCIATES,  )
    INC.,                                          )
    
                   Defendant.                      ;
    
    
            MEMORANDUM IN SUPPORT OF MOTION OF DEFENDANT THE
      LAURE:NCE J. LONG FAMILY TRUST II FOR A HEARING TO APPROVE
           THE TRUST'S PLAN OF DISCONTINUANCE AND DISTRIBUTION OF
           ASSETS OR STOCK (EWASHINGTON  SERVICE ASSOCIATES, INC.
    
    
    
    
                                             MORRIS, NICHOLS, ARSHT  & TUNNEL
                                             Thomas J. Hunt, Jr., Esq.
                                             1201 N. Market Street
                                             P.O. Box 1347
                                             Wilmington, DE 19899-1347
                                             (302) 658-9200
    
                                             Attorneys for Defendant The Laurence J.
                                             Long Family Trust II
    
    Of Counsel:
    
    Steven D. Gordon, Esq.
    Thomas D. Leland, Esq.
    HOLLAND  & KNIGHT LL,P
    2100 Pennsylvania Avenue, N.W.
    Suite 400                                                  \..,.`,,"-           :
    Wa.shington, D.C. 20037                                    .i
    (202) 955.,300o                                                     ;     .-
    
    September 8, 2000
    
    
    
                                                                  TYLE OF CONTENTS
    
    
    SNIPPETS:
  • MEMORANDUM IN SUPPORT OF MOTION OF DEFENDANT THE LAURE:NCE J. LONG FAMILY TRUST II FOR A
  • HOLLAND & KNIGHT LL,P
  • MR. FULK'S ORIGINAL PLAN OF DISSOLUTION..
  • `THE TRUST'S RESPONSE TO MR. FULK'S ORIGINAL PLAN
  • MR. FULK'S FIRST REVISED PLAN OF DISSOLUTlON..
  • .MR. FIJLK'S SECOND -REVISED PLAN OF DISSOLUTION..
  • MR. FULK'S FORMAL' DlSCOVERY REQUESTS..
  • MR. FULK IS DELAYING THE DISSOLUTION OF THE CORPORATION.
  • undersigned counsel and pursuant to Rule 7.1 of the Delaware Court of Chancery
  • Distribution of Assets of Washington Service Associates,
  • NATURE,W STAGE OF THE PROCEEDING
  • The Trust has yet to receive a response to that letter.
  • it has become obvious that the parties cannot agree upon a plan
  • DTEMENT OF FACTS
  • filed a first amended complaint on April 11,
  • to seek a private sale at a minimum price of $10 million,
  • Mr. .Fulk's counsel responded on July 2'7, 2000, that the retention of these allegations in
  • The Trust's counsel add.ed that he saw no need for further discovery and, instead, invited
  • when the parties were to attempt to effectuate a private sale to a third party.
  • 120,.day period for the investment banker to solicit bids and oversee the sale of the
  • the only realistic prospective buyers are not third
  • HOLLAND & KNIGHT LLP 2100 Pennsylvania Avenue, N.W. Suite 400 Washington, D.C. 20037 Tel.

  • 18 . ANSWER OF DEFENDANT LAURENCE J. LONG FAMILY TRUST TO CORRECTED SECOND AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    SECOND AMENDED COMPLAINT
    PARAGRAPH
    TRUST ADMITS
    FULK
    ALLEGATIONS
    TRUST DENIES
    DEL
    SPEAKS
    ACCORDING
    COMPLAINT CONSISTS
    PURSUANT
    COURT
    TRUST ALLEGES
    PLAINTIFF BERNARD
    DEFENDANT
    LAURENCE
    CORRECTED SECOND
    ASSETS
    APPOINTMENT
    CUSTODIAN
    JOINT VENTURE
    DISSOLUTION
    PROPER DISPOSITION
    KNOWLEDGE SUFFICIENT
    DENY
    EXHIBIT
    RELIEF
    INCORPORATES
    DIRECTORS
    
                                                                             J-
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE            -37
                                                                             J  i
                                 IN AND FOR NEWCASTLE COUNTY
    
    BERN'ARD  B. FULK, III,
    
                   Plaintiff,
                                                 i       C.A. No. 17747
          V.                                     1
    
    WASHINGTON SERVICE ASSOCIATES,               i
    INC. and L,AURENCE J. LONG,
    
                   Defendants.
    
    
                   ANSWER OF DEFENDANT THE LAURENCE  J. LONG
                    FAMILY TRUST II TO THE CORRECTED SECOND
                &MENDED COMPLAINT OF PLAINTIFF BERNARD B. FULK
    
          The Defendant the Laurence J. Long Family Trust II ("Trust"), through
    
    undersigned counsel and pursuant to Rules 8 and 12 of the Delaware Court of
    
    Chancery Rules, respectfully submits this Answer to the Plaintiff Bernard B.
    
    Fulk, III's ("Fulk's") Corrected Second Amended Complaint for Discontinuance
    
    and Distribution of Assets Under 8 Del. C.  3 273 and for Appointment of a
    
    Custodian Under 8 Del. C.  5 226 ("Second Amended Complaint"). The Trust
    
    states as follows:
    
                                         Introduction
    
          1.       No answer required.       Paragraph 1 of the Second Amended
    
    Complaint consists entirely of conclusions of law and assertions about the
    
    content and effect of  t.he Second Amended Complaint. The Second Amended
    
    Complaint and the statutes cited therein speak for themselves; accordingly, no
    
    answer is required.
    
    
    
    
    SNIPPETS:
  • ANSWER OF DEFENDANT THE LAURENCE J. LONG
  • FAMILY TRUST II TO THE CORRECTED SECOND &MENDED COMPLAINT OF PLAINTIFF BERNARD B. FULK
  • III's Corrected Second Amended Complaint for Discontinuance
  • and Distribution of Assets Under 8 Del.
  • Custodian Under 8 Del.
  • Paragraph 1 of the Second Amended
  • Complaint consists entirely of conclusions of law and assertions about the
  • Corporation is a joint venture corporation within the meaning of 8 Del.
  • The Trust admits that the Corporation was incorporated in the
  • the Trust denies the allegations of Paragraph 2
  • the Trust alleges that Laurence J.
  • Long and Fulk have served as the sole officers and directors of the
  • agree with Fulk concerning the proper disposition of the corporate assets
  • absent court supervision.
  • The Trust is without knowledge sufficient to
  • Complaint simply describes Exhibit A to the Second Amended Complaint,
  • which speaks for itself;
  • The Trust incorporates and realleges Paragraphs 1 through 18 of
  • that the appointment of a Custodian pursuant to 8 Del.
  • warrant such relief and because Fulk's claim for dissolution pursuant to 8 Del.
  • knowledge sufficient to admit or deny what Fulk "desires" concerning the
  • award the Trust its costs and expenses according to law;

  • 19 . CORRECTED SECOND AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    STOCKHOLDERS
    DIRECTORS
    ASSETS
    COURT
    JOINT VENTURE
    DISCONTINUANCE
    DELAWARE
    SECOND AMENDED COMPLAINT
    DISTRIBUTION
    WASHINGTON SERVICE
    BUSINESS
    CHANCERY
    PURSUANT
    PLAN
    BERNARD
    CUSTODIANS
    PLAINTIFF
    SUCCESSORS
    PROPOSALS
    INVESTMENT BANKER
    PURCHASERS
    SHAREHOLDERS
    OFTHE CORPORATION
    APPOINTMENT
    FULK PETITIONS
    ELECT SUCCESSOR DIRECTORS
    PRESIDENT
    PURCHASE
    DISPOSITION
    
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                    IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK, 111,
    
                                      Plaintiff,
    
                              V.                                      CA. No. 17747
    
                                                                                                       
    
    
    
    WASHINGTON SERVICE ASSOCIATES                          )                                          <
    and THE LAURENCE J. LONG FAMILY                                                                  
    TRUST II,                                              ;                                           
    
                                      Defendants.
    
           CORRECTED SECOND AMENDED COMPLAINT FOR DISCONTINUANCE
                       AND DISTRIBUTION OF ASSETS UNDER 8 DEL. C. 0 273
               AND FOR APPOINTMENT OF A CUSTODIAN UNDER 8 DEL. C. 6 226
    
              .Plaintiff Bernard B. Fulk., III, by and through counsel, states in support of his second
    
    complaint (the "Complaint"), as follows:
    
                                                     Introduction
    
              1.       Fulk, as one of two  fifty per cent stockholders of the Delaware joint venture
    
    corporation, The Washington Service Associates, Inc. (the "Corporation"), pursuant to 8 Del. C. 9
    
    273, petitions this Court to order the discontinuation of the joint venture and the disposition of
    
    business and assets, In addition, pursuant to 8 Del. C. 9 226, Fulk petitions this Court to appoint
    
    custodian of the Corporation, because the two stockholders and directors are so divided that they
    
    have failed to elect successor directors or to otherwise meet and act
    
                                           Identification of the Parties
    
              2.       The Corporation is a Delaware joint venture corporation that was incorporated on
    
    about June 7, 1988. The Corporation maintains its principal office in Washington, D.C. The
    
    Corporation operates in the business of reporting and analyzing various governmental policies and
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • CORRECTED SECOND AMENDED COMPLAINT FOR DISCONTINUANCE
  • AND DISTRIBUTION OF ASSETS UNDER 8 DEL.
  • 0 273 AND FOR APPOINTMENT OF A CUSTODIAN UNDER 8 DEL.
  • .Plaintiff Bernard B. Fulk., III, by and through counsel, states in support of his second
  • as one of two fifty per cent stockholders of the Delaware joint venture
  • corporation, The Washington Service Associates, Inc., pursuant to 8 Del.
  • business and assets, In addition, pursuant to 8 Del.
  • because the two stockholders and directors are so divided that they
  • have failed to elect successor directors or to otherwise meet and act
  • Plaintiff Fulk was an incorporator and is presently a tiRy percent stockholder,
  • On September 111, 1992, a meeting of the board of directors and shareholders of the
  • Long was appointed the president and Fulk was appointed the
  • Trust or, if no plan is agreed upon, in accordance with the instructions of this Court
  • There have been no elections of directors and no annual meetings of stockholders ofthe
  • successors to directors whose terms have expired or would have expired upon qualification of
  • After IBC confirmed its proposed purchase price of $16
  • 5 226and Fulk petitions this court to appoint one or
  • the authority and actions of the custodians as the court deems appropriate.
  • the Trust to carry out the single business enterprise known as The Washington Service
  • shall be entitled to allow potential purchasers to inspect all premises and tangible assets
  • Chancery for the appointment of a qualified investment banker to effect an orderly and prompt
  • disposition `of its assets in accordance with this Plan.
  • The purpose of the meeting will be to act on the proposals below which are denominated

  • 20 . SECOND AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    DIRECTORS
    STOCKHOLDERS
    ASSETS
    MEETING
    JOINT VENTURE
    PLAN
    COURT
    DISCONTINUE
    TRUST
    APPOINT
    COMPLAINT
    STOCK
    SHAREHOLDERS
    CUSTODIANS
    PURSUANT
    BUSINESS
    INCORPORATES
    PLAINTIFF
    DISPOSE
    SUCCESSORS
    INSTITUTIONAL INVESTORS
    PRESIDENT
    EXHIBIT
    DELAWARE
    ACCORDANCE
    DISTRIBUTION
    REFUSES
    OFTHE
    DEEMS
    
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                     IN AND FOR NEW CASTLE COUNTY
    
    BERNARD B. FULK, I:II,
                                                           ;
                                      Plaintiff,
                                                           ;
                               V.                                    C.A. No. 17747
                                                           1                                       ,-
    WASHINGTON SERVICE ASSOCIATES                          i
    and THE LAURENCE J. LONG FAMILY                                                                    
    TRUST II,                                              i                                           
    
                                      Defendants.          ;                                           
                                                                                                       
                                                                                                       
                       SECOND AMENDED COMPLAINT FOR DBCONTINUANCE                                  -`L.
                      AND DISTRLBUTION  OF ASSETS UNDER 8 DEL. C. 5 273 AND
                      FOR APPOINTMENT OF A CUSTODLAN UNDER 8 DEL. C. 6 226
    
    
              Plaintiff Bernard B.  Fulk, III, by and through counsel, states in support of his second
    
    amended complaint (the "Complaint"), as follows:
    
                                                     Introduction
    
              1.        Fulk, as one of two fifty per cent stockholders of the Delaware joint venture
    
    corporation, The Washington Service Associates, Inc. (the "Corporation"), pursuant to 8 Del. C. 3
    
    273, petitions this Court to order the discontinuation of the joint venture and the disposition of
    
    business and assets. In addition, pursuant to 8 Del. C. 4 226, Fulk petitions this Court to appoint
    
    custodian of the Corporation, because the two stockholders and directors are so divided that they
    
    have failed to elect successor directors or to otherwise meet and act
    
    
    
    
    
    
    
    
    RLFl-21X3430-1
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • AND DISTRLBUTION OF ASSETS UNDER 8 DEL.
  • Plaintiff Bernard B. Fulk, III, by and through counsel, states in support of his second
  • petitions this Court to order the discontinuation of the joint venture and the disposition of
  • business and assets.
  • In addition, pursuant to 8 Del.
  • because the two stockholders and directors are so divided that they
  • other information for institutional investors.
  • "Trust") are engaged in the prosecution of a joint venture in that business,
  • Long previously owned fifty percent of the stock of the Corporation,
  • On September 11, 1992, a meeting of the board of directors and shareholders of the
  • Long was appointed the president and Fulk was appointed the
  • The Corporation has two equal stockholders, Fulk and the Trust, each ofwhich has
  • Fulk desires to discontinue the joint venture, dissolve the Corporation and to dispose
  • of the assets used in the joint venture in accordance with a plan to be agreed upon by Fulk
  • Distribution proposed by Fulk.
  • to and incorporated into this Complaint as Exhibit C.
  • successors to directors whose terms have expired or would have expired upon qualification of
  • The president, who is also one of two directors whose term would have expired, refuses
  • the business ofthe Corporation is suffering or is threatened withirreparable
  • Fulk incorporates the allegations stated in paragraphs 1 through 1X of this Complaint
  • $226and Fulk petitions this court to appoint one or
  • the authority and actions of the custodians as the court deems appropriate.
  • That this Court enter such decrees as it deems necessary to restrain and enjoin Long

  • 21 . REPLY TO PLAINTIFFS OPPOSITION TO MOTION TO SUBSITUTE PARTIES

    EXTRACTED KEY WORDS
    TRUST
    ALLEGATIONS
    COURT
    AMENDED COMPLAINT
    PROPER PARTY
    ASSETS
    DELAWARE
    WASHINGTON
    LAURENCE
    ESQ
    SUBSTITUTE
    DEL
    DEFENDANT
    DISSOLUTION
    CORPORATE ASSETS
    RIPE
    ASSET PURCHASER
    WASHINGTON SERVICE
    FIRST AMENDED COMPLAINT
    SOLE DEFENDANT
    PORTIONS
    PENNSYLVANIA AVENUE
    INJUNCTIVE RELIEF
    COMPETING
    STOCKHOLDER
    RECORD OWNER
    SHAREHOLDER
    HOLLAND
    BUSINESS
    
             IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                   IN AND FOR NEW CASTLE COUNTY
    
    
    BERNARD B. FULK, III,
    
                     Plaintiff,
                                                   ;
    V.                                                      C.A. No. 17747
                                                   ;
    WASHINGTON SERVICE ASSOCIATES,  )
    INC. and LAURENCE J. LONG,
                                                   i
                     Defendants.                                                               .
                                                   i
    
                  REPLY TO PLAINTIFF'S OPPOSITION TO JOINT MilTION                     : " '
                   OF DEFENDANT LONG AND THE LAURENCE J. LdNG                        ? ,' :
                    FAMILY TRUST II TO SUBSTITUTE PARTIES AND TO                     *  _
                  STRlKE PORTIONS OF THE FIRST AMENDED COMPLAINT
    
    
                                           MORRIS, NICHOLS, ARSHT & TUNNELL
    
                                           Thomas R. Hunt, Jr., Esq.
                                            1201 N. Market Street
                                           P.O. Box 1347
                                           Wilmington, DE 19899-1347
                                           Tel. (302) 658-9200
    
                                            Counsel for Defendants Laurence J. Long and
                                           Laurence J. Long Family Trust II
    
    Of Counsel:
    
    Steven D. Gordon, Esq.
    Sam J. Salario, Jr., Esq.
    HOLLAND & KNlGHT  LL,P
    2100 Pennsylvania Avenue, N.W.
    Suite 4.00
    Washington, D.C. 20008
    Tel. (2'02) 955-3000
    
    
    
                                                                          :TABLE  OF CONTENTS
    
    INTRODUCTION_.......................................................................................
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • BERNARD B. FULK, III,
  • WASHINGTON SERVICE ASSOCIATES,)
  • INC. and LAURENCE J. LONG,
  • STRlKE PORTIONS OF THE FIRST AMENDED COMPLAINT
  • Sam J. Salario, Jr., Esq.
  • HOLLAND & KNlGHT LL,P
  • 2100 Pennsylvania Avenue, N.W. Suite 4.00 Washington, D.C. 20008 Tel. 955-3000
  • LONG IS NOT A PROPER PARTY TO THIS ACTION,
  • TRUST SHOULD BE SUBSTITUTED AS THE SOLE DEFENDANT.
  • MR. FULK'S NEW ALLEGATIONS ARE NEITHER RIPE NOR
  • Competing With Any Purchaser Of The Cornorate Assets.
  • Enstar Corp. v. SenouJ Del.

  • 22 . OPPOSITION OF PLAINTIFF TO MOTION TO SUBSTITUTE PARTIES

    EXTRACTED KEY WORDS
    COURT
    FULK
    TRUST
    MOTION
    DEFENDANT
    ASSETS
    PLAINTIFF
    LAURENCE
    STRIKE PORTIONS
    SEPARATE
    OWNERSHIP OFHIS SHARES
    WASHINGTON SERVICE
    SUBSTITUTE PARTIES
    SUPPLEMENTAL PLEADING
    SHAREHOLDER
    DELAWARE
    NOMINAL OWNERSHIP OFHIS
    DISSOLUTION PROCESS
    ALLEGATIONS
    CHANCERY
    FIRST AMENDED COMPLAINT
    FAMILY TRUST
    AMENDED COMPLAINT ALLEGES
    INTANGIBLE ASSETS
    DIRECTORS
    MEMORANDUM
    EVIDENCE
    JOINT VENTURE
    TRANSFERRED NOMINAL OWNERSHIP
    
                                                                         /---`,  ?  i ,i'-  ),  /I,  ,
                                                                         [L-,' .  i  ,,  i.            
            IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                    IN AND FOR NEW CASTLE COUNTY
    
    
    BERNARD B. FULK,
    
                      Plaintiff.
    
            V.                                     >       &.A. No. 17747
                                                           >
    WASHINGTON SERVICE ASSOCIATES, )
            INC. and LAURENCE J. LONG,
                                                           i
                      Defendants.
    
    
    
    
                      OPPOSITION OF PLAINTIFF, BERNARD B. FULK,
                      TO THE JOINT MOTION TO SUBSTITUTE PARTIES
         AND TO STRIKE PORTIONS OF THE FIRST AMENDED COMPLAINT
    
            Plaintiff, Bernard B. Fulk ("Fulk"), opposes the Joint Motion to Substitute Parties and
    
    to Strike Portions of the First Amended Complaint (the "Motion") filed by the Defendants,
    
    Laurence J. Long ("Long") and the Laurence J. Long Family Trust II (the "Trust")
    
    (collectively, the "Defendants") and