COMMONWEALTH OF MASSACHUSETTS
APPEALS COURT
2012-P-1085
ROBERT FONTAINE
Appellant V.
CAPE COD TIMES
Appellee
ON APPEAL FROM A JUDGMENT OF THE
BARNSTABLE SUPERIOR COURT
CIVIL DOCKET #BACV2008-00630
—————————
REPLY BRIEF OF THE APPELLANT
Appellant Pro Se
Robert V. Fontaine
ARGUMENT
CAPE COD TIMES IS ATTEMPTING TO
DECEIVE THIS COURT, BUT HAS INSTEAD PAINTED ITSELF INTO A CORNER.
Cape Cod Times Appellee Brief 3/15/2013:
“The Real Estate Merger Analysis
makes no reference to any bundled products”
"It has nothing to do with bundled
products".
".substantiated evidence establishes
that the CCTimes conceived of the bundling strategy in early 2003, after
the execution of the Purchase and Sale Agreement”.
Barnstable Superior Court SJ Decision
5/2/2012:
“THUS, CCT COULD NOT HAVE MISREPRESENTED
TO PLAINTIFF AN ADVERTISING PROGRAM THAT DID NOT EXISTS DURING THE 2002
NEGOTIATIONS”.
“IN HIS AFFIDAVIT, MEYER STATES
THAT SUCH PRODUCT “BUNDLING” BEGAN “IN EARLY 2003”.
“..AND THE RECORD REFLECTS THAT
THIS CONCEPT WAS NOT FORMALLY PROPOSED UNTIL January 2003”.
THE DOCUMENT (A1) DOES INDEED REFER
TO BUNDLES!
CAPE COD TIMES IS BADLY MISTAKEN.
Appellant’s (A1) “Real Estate Merger
Analysis”:
“Real Estate Book Bundle” - $7,300
for 2002. |
|
CCTIMES attributed 90% of the revenues
to the Print as a “bookkeeping measure”, The ONLY ramification of that
attribution being that they didn’t have to pay Fontaine his 20% on 90%
of the revenue. A policy they had in place IN 2002 DURING NEGOTIATIONS,
but one that CCTimes Appellee brief STILL tries to conceal.
I. CCTIMES BRIEF EXPOSES THEIR
"BUNDLES" SCHEME.
THE CAPE COD TIMES, A DIVISION OF
DOW JONES, HAS, TO ITS OWN DETRIMENT, OVERLOOKED AND IGNORED THE MOST IMPORTANT
DETAIL IN APPELLANT'S BRIEF ("A1") "REAL ESTATE MERGER ANALYSIS, ATTACHMENT
C".
SPECIFICALLY, CCTIMES FAILS TO RECOGNIZE
THE REVENUE CATAGORY IDENTIFIED ON THAT DOCUMENT AS "REAL ESTATE BOOK BUNDLE"
WHICH SHOWS A FULL YEAR TOTAL OF $7,300 IN PROJECTED REVENUES FOR 2002.
THIS IS A COMPANY, A BIG COMPANY, WITH
STAFF, WITH OFFICES, WITH RECORDS, WITH THE HARD DRIVES. IT IS INEXCUSABLE
AND INEXPLICABLE THAT CCTIMES CONTINUES TO TRY AND DENY THAT WHICH THEY
CANNOT, THAT BUNDLES WERE CONCEIVED PRIOR TO 2003. THE IMPLICATIONS OF
THAT DOCUMENT (A1) ARE SUCH THAT THIS COURT NEED NOT LOOK ANY FURTHER TO
DEFINE "RASCALITY". CCTIMES IS CAUGHT.
The inclusion of that “Bundle”, as
a Cape Cod Times revenue source, in their own 2002 document, establishes
that Appellant Fontaine has been correct about bundles having been conceived
in 2002, prior to the sale, and therefore fraudulently withheld from him
by CCTimes, who swears multiple times under oath, that Bundles were “NOT
CONCEIVED” until 2003. THIS IS THE 3RD SUCH COURT THIS CORPORATION ATTEMPTS
TO DECEIVE.
This is an unfortunate oversight on
behalf of the Appellee, one that is not just fatal to their defense in
this matter, but to their collective credibility as well. The record shows
that when they thought they could get away with it, they tried to. THIS
COURT WILL DETERMINE IF THEY DO.
The level of collusion required to
effectuate this scheme is disturbing. Picking & choosing for Discovery.
A company worth dozens of billions and they have to steal the small business
of a guy who comes to them in good faith? Ends up in the hospital protecting
advertisers from THEM. And HE’S the bad guy?
MULTIPLE PERSONS ASSURED THE COURT
THAT BUNDLES WEREN'T CONCEIVED UNTIL 2003, EFFECTIVELY CALLING FONTAINE
A LIAR. So Fontaine can understand how the court below would rule against
him as it has. His voice wasn’t very loud in that venue. Fontaine does
not believe the court was wrong on the law, he believes the court was misled,
as he was.
Thinking they've gotten away with it,
for 6 years now CCTimes repeats the company line that Bundles weren't conceived
until "January 2003". Once the Court sees this trickery, rascality, for
what it is, there is likely no need to look much further.
If CCTimes was willing to lie about
that relevant factor, and then to this court, and the one before it, and
the one before that… then we must assume that all of the words they used
were/are calculated, every figure, estimate or projection they gave must
be tarnished - because they are certainly not dealing in good faith - CREATING
A FALSE ESTIMATE IS DIFFERENT FROM MAKING A BAD ONE. To see them trying
to sneak the term "But Not Limited To" into the agreement, then PLACING
it back in. A COMPLETE SETUP.
The Judge trusted CCTimes affidavits
when ruling in their favor, and refers to product Bundling & Combo
advertising on Pages 2, 3, 4, 5, 8, 10, 11, 12, in a 15 page decision.
And 15 is the signature page.
Yet EACH of the following statements
is proven false:
"In January, 2003, AFTER the contract
had been executed, CCT developed a marketing concept which was a combination
real estate advertising product". (A10).
*"..in early 2003, CCT introduced
the concept of offering a combination real estate advertising product"(A11).
*"The record evidence involving
the package pricing for the real estate book Cape at Home and Internet
advertising for real estate was part of an overall plan set out in a memo
dated Jan 9, 2003" (A12).
*"Second, the bald allegation that
Fontaine reasonably relied on any such statement is squarely contradicted
by the uncontested evidence in the record that the bundling plan wasn't
even hatched until months after contract execution"(A13).
*"Therefore, because ccT had not
yet developed the marketing strategy of offering its customers a combination
of advertising space in its print and online editions, rescission is inappropriate."(A13).
*"In early 2003, as a way to drive
more internet real estate revenue by leveraging existing print customer,
CCT began offering print and internet advertising products with a monthly
print product, Cape at Home, and its real estate internet site. This "bundling"
was only a small component."(A14).
Fontaine hopes that those who come
before this court, regardless of their status in the community, regardless
the size of their bank accounts, are required to provide full, accurate
and truthful information to this honorable court. Plaintiff expends funds
here that are needed for other causes, in order to have his voice heard
in this appeal. If laws have been broken they should be enforced. If sanctions
or costs are appropriate they should be so charged. The court should not
lower the bar when confronted by such behavior by a wealthy corporation,
who hides behind its layers for protection. So now we have CCTimes here
again with their reply brief, new counsel, but the same false answer to
the most important issue in the case, assuring THIS court that bundling
happened "AFTER" the sale.
II. ATTEMPTING TO FURTHER DECEIVE
THIS COURT, CCTIMES CLAIMS, UNFORTUNATELY FOR THEM, THAT THE DOCUMENT
(A1-RE Merger) WAS "DISCLOSED" DURING NEGOTIATING THE P&S. THOSE WHO
ATTEST TO THAT MAKE A FALSE STATEMENT. IT IS QUITE CLEAR THAT "RE Merger"
HAD TO PRECEDE THE "3" SO-CALLED "INITIAL PROJECTIONS" AND EQUALLY CLEAR,
LOGICAL AND PROVABLE THAT THIS DOCUMENT WASNT PRESENTED TO FONTAINE DURING
NEGOTIATIONS. There is no attribution in their Brief?
RE Merger (A1) had to be created prior
to the so-called 3 “Initial Projections” because the 20% version of those
“three” projections is produced on July 9 2002. And “RE Merger Analysis”
assumes 6 months STILL remain in 2002 after a sale.
CCTimes doesn't recognize "Real Estate
Book Bundle" stated in the middle of the document they created (A1), yet
got word to the lawyers it would be important to say they had given it
to Fontaine during negotiations - is what they attempt there.
Molly Evans Depo (A18) Refers to the
"three" projections. They mention showing those 3 projections to Fontaine
on June 19. CCTimes would NOT have given Fontaine the projection of $1,300,000
(of RE Merger) when they could (AND DID) just make up another one that
says $4,310,000 instead. Nor could they let Fontaine see “Real Estate Book
Bundles” shown on that document. BECAUSE ANY SELLER SEEING THAT WOULDN’T
WALK AWAY FROM THIS DEAL, THEY WOULD RUN!
There’s a very good reason they speak
about the “3” projections” and fail to acknowledge the 4th - Real Estate
Merger Analysis, BECAUSE THAT WAS CREATED FOR THEIR NEEDS, THE 3
SCENARIO “INITIAL PROJECTIONS”, ON THE OTHER HAND, WERE ONLY CREATED TO
INFLUENCE FONTAINE, IN ORDER TO ADVANCE CCTIMES’ SCHEME.
CCTimes, not realizing (PERHAPS UNTIL
THEY READ THIS) they had left evidence of their scheme in the open, adds
to their fabricated story - Evans Depo "We looked at the middle-of-the-road
scenario and said that’s probably the most likely based on data that’s
available to us, which wasn’t a lot“. THAT "most likely scenario" THEY
came up with (A7)shows $198,000 for 2002. NOW TRY AND THINK OF A WAY THAT
DOESN’T TELL FONTAINE THEY WILL DO $100K?
*CCTimes 93a reply "Cape Cod Times
didn't separately account for internet real estate revenue until after
the sale". Add that to the impossible statements CCTimes has offered
and disproved by “RE Merger”.
THE VARIABLES HADN'T CHANGED FROM MARCH
02 OFFER TO JUNE 02 OFFER. WHICH CATAGORY DID THEY ALTER FOR THESE INTIONALLY-MIS-NAMED
"INITIAL PROJECTIONS" TO SHOW AN ADDED $3,000,000(The difference between
“RE Merger” Total and the high-end number on the “Initial Estimates” created
from Fontaine “benefit”).
III."BASELINE" 1ST MENTIONED
SEPTEMBER 30, 2002.
September 30, 7 weeks after the $100k
deductible figure is listed in CCTimes August 13 P&S sent to Fontaine,
”Baseline“ is first mentioned. This "Baseline" issue is just a play with
words by CCTimes. BUT IT IS AN IMPORTANT ONE.
Appellee Brief Page 1, CCTimes
(quotes) the "baseline" aspect of this deal, twice. And claims those terms
were memorialized in the Oct 31, 2002 P&S. CCTIMES GOES ON TO USE THE
TERM "BASELINE" SOME 22 TIMES IN THEIR BRIEF.
CCtimes Brief Page 11 "In a
September 30, 2002 e-mail, Kempf again suggested to Fontaine that for calculating
Fontaine's Net Revenue Share, they use $100,000 as a "baseline". THEY BRING
UP “BASELINE’ ON September 30. Take advantage of the term 22 times in their
brief?
THE TERM "BASELINE" IS NOT IN THE PURCHASE
AND SALE AGREEMENT, NOR ANY DRAFT OF THE PURCHASE AND SALE AGREEMENT, NOR
ANY OF THE OFFERS CCT MADE TO FONTAINE, NOR ANY OF 6 PROJECTIONS THEY INDUCED
HIM WITH. NOT EVEN IN THE DOCUMENTS THEY WITHHELD FROM HIM. "BASELINE"
IS 1ST MENTIONED ON SEPTEMBER 30, 2002 (A41). LONG PAST THE EXPECTED CLOSING,
AND LONG PAST THE TIME IT COULD EVEN BE CALLED "NEGOTIABLE".
Peter Meyer Affidavit (A19/A14 @ 20)
“In negotiating the baseline amount for the revenue share provision
in the Purchase and Sale Agreement (P&S), CCT proposed to Mr. Fontaine
that they use the amount of $100,000, which represented the average amount
CCT expected to earn in annual internet real estate revenue during the
ensuing five years, independent of the merger”. IF THE BASELINE REPRESENTED
WHAT CCT EXPECTED TO EARN, THEN WHAT DOES "negotiating the baseline amount"
EVEN MEAN? THE BASELINE WAS NOT NEGOTIATED - PERIOD.
As noted on Appellant Brief P26, Fontaine
had on August 9, 2002 informed CCT he would transfer the domain names to
their administrative control, but that he was "relying" on their representation
of the $100,000 figure. On August 10, 2002, Kempf emails Meyer and Evans
"Additionally though, he seems to be operating under the assumption
that our '02 revenues will be $100k+. He's also beginning to indicate that
he wants us to show exactly what those are."(A 21/A21). Fontaine
finds this out in discovery.
On 10 August 2002, Kempf, Evans and
Meyer know Fontaine is "relying" and the understanding CCTimes will do
$100,000 in 2002, the ONLY figure having been given to Fontaine. But they
allow him to continue the transfer. THREE DAYS LATER they give Fontaine
a Draft P&S (8.13.02) with the $100,000 deductible in it, and an ____August,
2002. Close.
Behind it all we know that CCTimes
had very detailed Projection they were counting on - "RE Merger". So at
THAT POINT IN TIME THEY REALLY THOUGHT THEY WOULD DO $66,350 IN 2002 ($111,350
SHOWN, less $45K CCT expects Fontaine 6 Mo.), BUT WITHHELD THOSE AND CREATED
AND GAVE FONTAINE NEW PROJECTIONS THAT WORK OUT TO WELL OVER $100,000 FOR
02.
Molly Evans Deposition: "It was
a low case scenario, a middle range and a high. I remember that Peter and
Bob Kempf and I poured over it and poured over it. Bob Kempf had prepared
it, massaged it and massaged it"(JA J PP160/161). THEY ALREADY HAD
A PROJECTION THEY WERE RELYING ON, THEY WERE CREATING INDUCEMENTS FOR FONTAINE
WITH ALL THIS EFFORT. After all, these "projections" differ from one another
by over $3,000,000!.
IV. CCT - "FONTAINE ALSO SPECULATES
CCTIMES "ALTERED" OR "SWITCHED" TERMS OF THE PURCHASE AND SALE AGREEMENT
AT CLOSING". Fontaine has
caught CCTimes CHANGING THE TERMS. Speculates? FONTAINE DIDN'T AGREE TO
RE-INCLUDE THOSE TERMS AND CAPE COD TIMES KNOWS THAT VERY CLEARLY. CAPE
COD TIMES APPEARS TO SUGGEST THAT IT WAS THEIR RIGHT TO ADD THOSE KEY TERMS
BACK IN, AND NOT INFORM FONTAINE. If Fontaine had 200 pages it would not
be enough to catalog the deceit of this company.
CCTimes B p17: "Fontaine
had the opportunity to review, and did review, the CCTime's accounting
methods with regard to "Cape at Home revenue, and did not object to this
allocation during the contract term".
Fontaine THINKS that CCTimes is actually
trying to suggest here that even though they FRAUDULENTLY withheld existence
of the Cape at Home "Real Estate Book Bundle" from Fontaine in March, April,
May, June, June, July, August, September and October 2002, that nonetheless
Fontaine had an opportunity to look at what CCTimes was doing AFTER the
sale. It's not quite the same finding out about it AFTER the fact, when
you've got to decide if you dare bring it up to your employers, since they
are very unreceptive to discussing it - AND HOLD BOTH YOUR EMPLOYMENT AND
THE PRICE OF YOUR BUSINESS IN THEIR HANDS. The record shows that Fontaine
did object and was derided, in writing, for daring to ask.
CCTimes Brief p30: CCTimes mentions
the September 27, 2002 email where CCTimes now comes clean and gives Fontaine
a $75,000 estimate for 2002. Suggesting Fontaine had 30 days to walk away
from the deal. NOT SO SIMPLE. From July on we were perpetually 30 days
of less away from closing. Fontaine had given CCT all his financials and
banking, all his business records, accounts, codes, had given them control
of the domain names back in August 9 (anticipating an Aug closing as stated
on their P&S), He had told his webmaster / vendor their services were
no longer needed and had turned away a lot of business for the year, for
the sake of the deal with CCT where the 1st offer came in March. They had
an Aug closing date on one P&S.
CCTIMES WRITES TO FONTAINE ON SEPT
27:
“We would like to meet next week
and perhaps, once we get to the table, we can even accelerate this thing
to closure, with or without the attorneys”(A38). THEY HADN’T
USED THE WORD BASELINE UNTIL SEPTEMBER 30TH!
CCTimes Brief p31: CCTimes says
Fontaine knew their numbers were "simply projections”- BUT Molly Evans
states "I remember that Peter and Bob Kempf and I poured over it and poured
over it. Bob Kempf had prepared it, massaged it and massaged it"(JA J PP160/161).
THEY ARE NOT TALKING ABOUT SPENDING ALL THAT EFFORT FOR A PROJECTIONS FOR
THEM TO RELY ON, THEY ALREADY HAD THAT. THEY ARE TALKING ABOUT CREATING
NUMBERS FOR FONTAINE'S BENEFIT.
CCTimes Brief p33: FRAUD ALERT:
CCTIMES says they attributed 10% of the Cape at Home Bundle towards Fontaine’s
revenue share - “because such a percentage approximated revenue that
could be attributed to internet advertising”. BUT CCTimes has already
said that the 90% was based on the cost of print, not due to its value
in the sale. And the court agreed. So now CCTimes has BOTH sides of the
story.
CCTimes Brief p41: CCTimes notes
the undisputed facts establish that the Net Revenue Share baseline figure
was never based on expected revenue for 2002. BUT THEY CANT TO THIS DAY
SHOW WHAT IT WAS BASED ON.
FONTAINE CONTACTS CCTIMES COUNSEL.
On October 16, 2012, Fontaine sent by email the document "RE Merger Analysis"
(A1) to inform attorneys from both PRIOR AND CURRENT law firms representing
the Times of their oversight of this important fact.
“Here's is your former client's
document. Withheld document. My accusation(s) are true, it was my attorney
who was lacking! So I wanted to include you in the record so you have the
opportunity to do whatever lawyers do when they give the court incorrect
information, if anything. Because as it stands now, the only one who continues
to be misled by that false assertion that "bundling was conceived after
the sale" is the court. And I don't think it's right to deceive the court."
Fontaine did not hear back from anyone.
CCTimes just filed their brief stating those false material facts.
CCTimes Brief: “With hindsight,
Fontaine now believes that the payment terms of the Purchase and Sale Agreement
and Employment Agreement - terms that Fontaine entered into freely and
with advice of counsel - were unfair. Specifically, Fontaine alleges that
he was (a) deceived into agreeing to payment terms that yielded him less
compensation than he, in his subjective opinion, deserved; and (b) was
otherwise deprived of compensation due to him under the agreement”.
EXCUSE ME! CCTIMES SHOULD NOT BE
TELLING THIS COURT WHAT FONTAINE BELIEVES. THEY LOST THAT RIGHT WHEN THEY
TOLD THE COURT SOMETHING THAT THEY THEMSELVES DIDN’T BELIEVE, SOMETHING
THAT WASN’T TRUE, SOMETHING THAT EFFECTS FONTAINE’S FAMILY EVERY SINGLE
DAY.
CCTIMES MISCALCULATES. Fontaine was
not outsmarted into making a bad deal. He was lied to. It would do the
company well to pay attention to the distinction.
Conclusion:
Fontaine can counter every attempt
by CCTimes to suggest good reasons for their bad behavior. He can go item
by item by item. It is interesting that so many from CCTimes can pinpoint
and recall the same events with specificity, when their answers are similarly
false.
Both the Employment Agreement and the
Purchase and Sale Agreement represented the consideration in the sale of
my growing small business. CCTimes positioned themselves through a variety
of fraudulent actions, to control the meaning of BOTH contracts. On other
matters they created ambiguity, and then relied upon it in front of the
court. Pleading that Fontaine got just what he was asking for. He just
wants a do over.
CAPE COD TIMES IS CORRECT FONTAINE
WANTS HIS PROPERTY BACK - “INCLUDING BUT NOT LIMITED TO”:
The Domain name assets CCTimes has
converted to parent company Dow Jones ownership IN THE MIDDLE of the case
in Barnstable, where Fontaine seeks rescission of those assets, of which
several have been lost and simply allowed to expire. They couldn’t be bothered.
Fontaine asks this court to rescind
this so-called "sale" and, to the extent available under the law, to further
hold CCTimes accountable for the profound and ongoing damages they have
caused Fontaine to suffer. This company should make whole those they have
hurt and be made to refrain from breaking the law again.
Fontaine asks rights afforded him under
the law apply here and that they not be waived due to failure of Appellant
to identify same with specificity.
Fontaine trusts that this process is
not a test of his knowledge of the law, but rather an implementation of
his rights under it. Pro se litigant does not ask this court to reach for
novel theories or concepts in order to reach a just conclusion.
With utmost respect for this Honorable
Court,
________________
Robert Fontaine
Pro Se, Appellant, Plaintiff.
|