Trademark v A&E Moving Slowly

As often happens in litigation, the Trademark Properties lawsuit is moving along slowly.  On July 17, the Court set a number of deadlines:

  • Plaintiffs ID of Expert Witness due by 9/13/2007
  • Defendants ID of Expert Witnesses Due by 10/13/2007
  • Amended Pleadings due by 11/13/2007
  • Discovery due by 11/13/2007
  • Motions due by 12/13/2007
  • Jury Selection Deadline 2/13/2008

The docket doesn’t reflect any filings that designate experts in this case.  Discovery, of course, is not filed with the Court.  It looks as if there won’t be much activity on the case until we start approaching the motions deadline, and it is entirely possible that the parties will seek a new scheduling order at that time.

There have been a few documents filed, dealing with the results of the summary judgment hearing.  They are:

  • TRANSCRIPT of Summary Judgment Motion Hearing held on June 6, 2007 before Judge C. Weston Houck.
  • MOTION for Reconsideration by Departure Films.
  • MOTION for More Definite Statement for Clarification by A&E Television Networks.
  • RESPONSE in Opposition re MOTION for More Definite Statement for Clarification, MOTION for Reconsideration.
  • FIRST AMENDED SCHEDULING ORDER

Montelongo Foreclosure and Court Activity

It appears that Armando Montelongo experienced difficulty with some recent financing from VCH Funding Corporation.  Montelongo’s company, Mandoman Management, Inc., fought off August 7, 2007, foreclosures on four separate properties by obtaining a temporary restraining order, allowing Montelongo the time necessary to line up alternate financing.  The restraining orders ended on August 21, 2007.  The cases now indicate that they have been terminated.  Neither Montelongo’s Attorney nor VCH Funding have returned calls requesting comment.

You can view the court documents to learn more.

Stopping the foreclosures, if alternate funding can be obtained, is an very smart move.  Same allows the lender to receive cash instead of properties, and allows the owner to continue forward with efforts to sell the properties for a profit.  An important lesson to be learned in the current real estate market is that owners should communicate with their lenders when business is not going as planned.  Often, lenders are willing to work with a borrower, or will at least delay action if the borrower presents a solid plan that benefits all parties. 

Additionally, public records searches have uncovered additional foreclosures and civil cases, all of which may be of interest to our readers.  Due to the high cost of copying, some of the civil cases only include dockets, and some foreclosures do not include deeds or trust and acquisition deeds.

Properties:

1139 Lombrano Trustee Sale
114 Repose Deed of Trust
114 Repose Trustee Sale
114 Repose Warranty Deed
131 Bristol Deed of Trust
131 Bristol Trustee Sale
131 Bristol Warranty Deed
1410 Thorain Trustee Sale
1419 Woodlawn Trustee Sale
158 Ballard Deed of Trust
158 Ballard Trustee Sale
158 Ballard Warranty Deed
238 Basswood Deed of Trust
238 Basswood Trustee Sale
238 Basswood Warranty Deed
254 St Francis Deed of Trust
254 St Francis Trustee Sale
254 St Francis Warranty Deed
3123 Hicks Trustee Sale
Camada Trustee Sale
Colina Moderena Trustee Sale
Devoto Trustee Sale
F Street Trustee Sale
Gardina Trustee Sale
Gibbs Sprawl Trustee Sale
Jefferson Trustee Sale
Kashmuir Trustee Sale
Lennon Trustee Sale
Pleasure Park Trustee Sale
Rivas Trustee Sale
Rose Trustee Sale
Rosewood Trustee Sale
San Carlos Trustee Sale
San Eduardo Trustee Sale
Topeka Trustee Sale
Weidner Trustee Sale
Winnepeg Trustee Sale

Civil Cases:

Allison, et al v Armando Montelongo LTD, et al
Bexar County, et al v Montelongo Acquisitions Inc, et al
Escalante, et al v Montelongo Developments LLC, et al
Montelongo v Waring Investments, Inc.
Olsen, et al v Montelongo Inc, et al
Summers v Armando Montelongo, et al

Thus far, the producers of Flip This House have been unwilling to show viewers less than successful results.  As the market declines, property flippers across the country are suddenly finding that they’ve overbuilt, overpaid, or overestimated demand in their areas.  Now is a perfect opportunity for A&E to show the bad, as well as the good.

Failure can often be more educational than success.

David Montelongo Sued By Investor

The San Antionio Express-News Reports:

The lawsuit, brought by David Escalante of California, alleges that he gave David Montelongo and his company, Montelongo Developments LLC, $5,000 in earnest money and $500 in option money for a 17 percent share in a 14,000-square-foot retail development on a 4-acre tract in Schertz.

The deal was outlined in a partnership agreement that Montelongo drafted, the lawsuit alleges.

The lawsuit claims that Montelongo used the money to put the land under contract, but never signed the partnership agreement.

Montelongo told Escalante he had decided to pursue the deal with a different party, claims Todd Prins, the San Antonio lawyer representing Escalante in the suit.

Montelongo never returned the earnest money, Prins said.

Escalante and his investment company, Pres Estate LLC, are seeking “our share of the deal,” Prins said.

“We’re not seeking anything else than what was agreed to in the beginning,” he said, adding that Montelongo could buy his clients out of the partnership agreement.

Read the entire story for additional details.  FlipThisLawsuit will post the complaint and other documents as soon as we can obtain them from the courthouse.

[Hat tip to the numerous people who submitted the article to us.]

Texas State Architecture Students not paid by A&E, Montelongo

The Texas State University Star reports:

A&E falls short on agreement with students, faculty member 

A group of former Texas State students and a faculty member are disappointed after working with the A&E television show “Flip This House.”

The show “Flip This House” with Armando Montelongo of Montelongo House Buyers Inc. of San Antonio, produced an episode during the fall 2006 semester in conjunction with a Texas State Architectural Design 3 class.

Montelongo planned to enlist the help of the undergraduate class to “flip” an empty lot at Smith Lane in San Marcos, and construct nine buildings with four condominium units in each structure, all the while maximizing the return on his investment.

The students were instructed to form teams and develop site diagrams for the project. Montelongo planned to judge the team’s work and choose a winner at the end of the show. The winner’s diagrams were then to be implemented by Montelongo at the site.

“The winning team composed of six students was promised a cash prize of $500 per student,” Carpenter said. “The show was filmed, the winning team was announced in a board room scene and a check was presented to the students. The students later found out that the check was only a prop and could not be deposited.”

Read the full article at the Texas State University Star. Hat tip to Steve in Texas for finding this article.

Mike Voss Reviews Armando Montelongo’s E-book

Frequent visitior, Mike Voss, offers the following review of Armando Montelongo’s e-books to readers of Flip This Lawsuit.  Please note, Flip This Lawsuit has not reviewed the e-books, and the opinions expressed in the review are not necessarily those of Flip This Lawsuit.

You can view the entire review by clicking the title above.

(Continued)

Ginger Solicits Trademark Area Partners on YouTube

Hello Everyone!

I can’t thank you all enough for sending your surveys so promptly!  You all are getting the inside scoop first for taking the initiative to be at the Speech outlining what Richard is expecting out of area partners and your chance to see who we are , where we work and what we are about before moving forward. We want to make sure that there is very little room for error in how we communicate our vision into your backyards so…….Please log onto http://www.youtube.com/watch?v=r9SDyM3FJUo and you can see Richard’s newest message to everyone, in the format we will use to breakdown the distance barrier, we really feel like this format will speed up the learning curve on both ends and not leave the possibility of miscommunication from interpreting the written word,   Cant wait to hear from all of you soon!  This is going to be very exciting!
 
Ginger Alexander, Investment Coordinator
Trademark Properties, Inc.

A quick note from your webmaster…

I’m sitting for the bar exam in just two weeks, and as such am focusing the majority of my time on studying.  At the same time, I’m job hunting and preparing to move to a new city.  If you guess that I have very little free time, you would be correct.

As a result, be aware that new comments may not appear as quickly has they have in the past.  I cannot allow comments to be automatically posted due to the number of spam posts we receive each day here on the site.  Please be patient; your comments will be made available as quickly as possible. 

For those of you new to this website, I encourage you to check out and comment on some of our more popular posts:

You might also want to review some documents from the Trademark Properties v A&E lawsuit:

And finally, if you’ve flipped your own properties, please take a moment to share your advice with our readers in What Are Your Flip Tips?  Thanks for visiting!

Casting a new season of Flip This House

From Steve Grant of 813 Casting:

Get your team onto Flip This House!
 
813 Casting and Departure Films are looking for another great cast of characters to be featured on the new season of A&E’s #1 rated lifestyle show, Flip This House!
 
We’re looking for confident, charasmatic, motivated and opinionated people who “flip” residential properties for a living. We want real-estate adrenaline junkies who love the high risk, high reward nature of their jobs and who are devoted to doing a great job! 
 
If you would like your team to be featured on the upcoming season of Flip This House, send an email to FTH@813casting.com. Include your contact info, bios on you and your team, and some reasons why your team should be the next team featured on Flip This House! This is a nationwide search. We are casting teams of people (approx 3 or 4) and not individuals. No phone calls please. 
 
$500 Finder’s Fee

Did you know that Than Merrill and the New Haven team were found through a referral? If you think you know someone who would be GREAT on Flip This House - tell us about them! If they get cast, you’ll get a $500 finder’s fee (and a cool story!) Email us at FTH@813casting.com. Make sure to provide all necessary contact info.

Enormous blow to the Charleston Community, 9 firefighters dead

Richard just sent this email out to fans of the show:

I want to thank all of you who have emailed and called to send your condolences and support of the Charleston Community during probably one of the most tragic days in the history of this city. As you know, my good friend Rusty Thomas has been on a few episodes of both Flip This House and The Real Deal/Real Estate Pros over the last few years, usually talking about community involvement. He is the City of Charleston Fire Chief, one of the best people I know and a true inspiration to me and a big influence on why I believe Team Trademark has an obligation to give back, I watched him do it for years on James Island, whether it was cutting the grass at the high school, working the concession stand or teaching my son how to throw a curve ball, he always gave his time selflessly and anonymously.

Fortunately, he is still with us today and if you watched CNN a bit ago, you saw him give a heart wrenching assessment of his loss of nine friends and 100 years of service to the city of Charleston Fire Department. This guy is a true American hero and patriot, he sent his men to NYC after 911 to do whatever they could to help, but he is hurting today as we all are in Charleston because of the horrible blow to our community.

All I ask is for y’all to say a prayer for the firefighters we lost and their families and please go hug someone you love because you never know when it might be the last time. Many have asked where to send funds, the mayor announced a few minutes ago that you can go to ANY Bank of America branch in the country and donate to the Charleston firefighters family fund, so that would be my best guess.

Thanks for the continued support of team trademark and if you have a message for Chief Rusty or any other firefighters in Charleston, please feel free to email them to me personally ( Richard@trademark-properties.com) , I’ll print them all off tonight and hand deliver to his house tonight. If he ever needed our support it would be now!

Thanks again,
Richard

What Are Your Flip Tips?

We’ve learned that a number of the publications out there offering advice and assistance to would-be investors are either scams or are simply re-hashes of classic advice offered by old pros at this business. 

A number of my readers are skilled in the property rehabilitation game, and I’d appreciate you sharing your “lessons learned.”  What’s worked for you?  What hasn’t?  Have you made money?  Is real estate “flipping” viable in the currently real estate market?

What Ever Happened to Gus?

From a promotional email dated June 16, 2007:

Ever wonder what happened to Gus? Get your answer tonight during a brand new episode of The Real Estate Pros. Featuring Richard C. Davis and his team of professionals at Trademark Properties, this show is the real deal!

9:00PM
Life’s Little Surprises
TV-PG (L), CC
Richard is a businessman with a big heart but when his tenant Gus is hard hit by substance abuse and doesn’t pay rent owed to Richard for nearly a year, things have finally gone too far. The house will need to be renovated and sold.
Miss last week’s episode?? Catch a rerun tonight at 7 PM.
7:00 PM
Straightened Out
TV-PG (L), CC
Richard and Team Trademark help an old friend with substance abuse problems and a house that is on the verge of foreclosure and infested by rats. The team will help him renovate both his life and his home.

As always, we hope y’all have a fantastic weekend - thank you for the support and please be sure to let us know what you think!

Richard and Team Trademark

Richard Davis to Speak on July 27 in Charleston, SC

Richard Davis will be sharing a motivational message, “Come Get Inspired!”, at the Gaillard Auditorium in Charleston, South Carolina.  Tickets are $45 and are available online.

Trademark Properties is beginning a national rollout, and this presentation promises to also include information on how you can become part of the Trademark Team.

In related news, Richard Davis’ book will also be released on July 27.  Attendees will likely be able to purchase copies at the event.

Summary Judgment Motion Hearing - June 6

On Wednesday, June 6, 2007, Judge C. Weston Houck held a hearing on the Summary Judgment motions of A&E Television Networks and Departure Films.  Today, I received a transcript of the hearing.  For the most part, the hearing seems to have been routine. 

A&E/Departure argues that there was no written contract, that the verbal contract to split profits didn’t contain the terms that Richard Davis and Trademark claim, and that Richard Davis has been inconsistent in even his understanding of the agreement.

Several things of note were decided:

  • The contract issues will be handled under New York law.
  • The defense claims that an oral contract under New York law will fail unless it contains an express termination provision, under Burke, a case that was not fully cited in the hearing and to which my Westlaw account doesn’t provide access.
  • The Court felt that an oral contract did exist between Trademark/Davis and A&E/Departure.
  • If that oral contract is believed by the Jury, then it is enforceable.
  • The Court ruled that issuing partial summary judgment, even if it was determined appropriate, would not reduce the discovery burden, and therefore would be denied in its entirety.
  • The Court declined to restrict discovery information relating to costs and other finances to the view of only the attorneys, ruling that preventing Richard Davis from seeing this information would be fundamentally unfair.
  • The Court believes that discovery should be scheduled to end within four months.

The thing that was a minor point in the hearing, mentioned at the end of the hearing only, but of significant note and concern to your humble webmaster, is the Court’s final message:

One other thing I was not going to mention today, because I just thought it might be best to ignore it, but upon reflection, I think it’s a matter of such seriousness that I do need to mention it.

It’s been brought to my attention that there is a web blog entitled Flip This Lawsuit. I haven’t looked at that blog, I haven’t studied it to see what it says. I have been told what it says.

Now, I’ve never had this happen before, and I consider it a very, very serious matter. At first blush, it appears to me to be an attempt to influence this lawsuit in an improper way. We can’t tell what’s happening there until we draw a jury.

But at some point in time, if I’m convinced that that has been the result of such a blog, in other words, if we have jurors that come in here and they’ve read that blog, and upon reading that, they cannot give the defendants a fair trial, then that is a serious matter, and it will be considered by such as this court. And an appropriate punishment and sanctions will be handed out. I’m not sure what those will be. I think you lawyers know that if you did that, what would happen to you, you would probably be looking for another profession. So that’s how I feel about that.

Now, whether what’s going on that blog is of such a nature that it in and of itself, whether members of the public read it and act on it or not, warrants a sanction by this court, and some sort of obstruction of justice, some sort of contempt of this court, I don’t know. But it’s because of those consequences that I see fit to bring this to your attention. This is a serious matter. This is a serious court. And we will not permit its function to be undermined in such an unseemly fashion.

Now, who is responsible for that blog? I don’t know. It may be that I’ll have to ask the FBI to look into it. It may be I’ll have to ask the U.S. Attorney to get the grand jury to look into it, I don’t know. Those are things down the road. But it seems to me that the information I have certainly shows that the defendants don’t have their name on this blog and that the plaintiff does.

And I would think that good, prudent action on his part would have gotten it off of there a long time ago. And that’s all I’m going to say on that. But when we get to the end of this case at some point, we’ll look at it again and see who is responsible; what the effects are and what action we should take.

But it just felt like that it is such a serious matter and such an unthinkable thing for a litigant to do in this court, that it needed to be commented on. I mean, we are not in Boy Scout camp; we are in serious court here and we don’t do business that way. And I’m not going to permit litigants in this case to do business in that way. Okay?

Thank you very much. We’ll be in recess.

I, of course, have no affiliation with Flip This House, Richard Davis, Trademark Properties, A&E Entertainment Television, or Departure Films.  I don’t work for any of their attorneys, agents, or employees.  The site is supported through my own funds and through revenue generated by advertising on this page.

I’m a fan, and one that was incredibly pissed off by the actions of A&E on the first night of season two.  Not only did they deceive me, as a viewer, about what I was about to see by running only ads for Trademark Properties, but when I went to their website - to the place that they set aside for viewer discussion - I quickly found that my voice, and the voice of others who disliked the new cast or simply wanted to learn more information about the change, were quickly edited with the delete button.  This heavy-handed moderation continues to this day, and I feel it only appropriate to provide a forum for open discussion of not only the lawsuit but also the subsequent developments in both television shows, Flip This House and The Real Estate Pros / The Real Deal. 

I informed all counsel, through email on February 23, 2007 that my website was open to accepting information from any party that they wished to share with this audience.  In that same email, I informed all counsel that I was not affiliated with any of the parties and requested that, if they submitted printed copies of pages from my website, that they include the entirety of the page so as to include the disclaimer which appears at the bottom of each page on this site. 

The information I post here is obtained through the public records of the Court itself.  Any potential juror who wished to learn these things could easily visit the courthouse themselves and check out the file or even read it through PACER in their underwear at home or from nearly any coffee shop in the world.  Unlike traditional media, which filter the information provided and determine what information you deserve to know, I make it a point to report on all possible information by providing you access, for free, to all of the court documents.  In this manner, you can view and decide for yourself what information is relevant - or even just interesting - to you personally. 

The Court’s comments regarding this website are the subject of an item in the Charleston, SC Post and Courier, which you can read online.  The article begins, “Is the Internet weaving its web into America’s court rooms? Not if a district court judge in Charleston has anything to do with it.” 

I’ve pulled new documents from PACER.  They are, as follows:

I will continue to report on developments in the litigation, as well as on both shows, as events unfold.

EDIT - June 15, 2007 - I have removed Plaintiffs’ Memorandum in Opposition to Defendants’ Motion for Summary Judgment and the exhibits thereto.  I was informed that this document is actually a sealed document, but because of a filing error was available for public access.  While I don’t believe this trial should continue being conducted behind a veil of secrecy, I do not desire to publish documents that are restricted by the Court’s order. 

David Montelongo Leaving FTH, Planning Teleconference

UPDATE - JUNE 13 - Flip This Lawsuit is informed that the teleconference has been rescheduled for next week. More information to follow soon.

From a blog post purporting to be from Melina Montelongo:

David and I have recently walked away from Flip This House for many reasons. We receive hundreds of emails asking us if the last show was “staged”. David has refrained from talking about it until NOW.

He will TELL ALL on a telecast on Wednesday Night. June 13, 2007.

“Dear Friends & Associates,

For over a year now you have peeked into my business life and have shared in some very fun and trying times with my family and myself. As I am sure you all know there have been many changes that have gone on within Montelongo House Buyers, and there is definitely more to the story than was presented to the general public, I want to share these very personal events with all of YOU. ……. “

Click on this link to get call in number and pin!

Click here to read more.

Update: You might also be interested in Angela Wilford’s explanation of the Atlanta shenanigans.

Trademark Properties v A&E Headed to Trial

From Peter Hull of the Charleston Post and Courier:

U.S. District Court Judge C. Weston Houck ruled Wednesday that there’s enough evidence to suggest that the two sides made a verbal agreement to equally share profits from the show.

In making the ruling, Houck denied a request by A&E Networks to dismiss the suit brought by Richard C. Davis of James Island-based Trademark Properties.

A&E, which aired the real estate show until last summer, has said it never agreed to share revenue with Davis. He sued A&E last July, alleging that the network took his idea for “Flip This House” and did not pay him and his company their share.

Read the Entire Article

We’ve ordered a copy of the transcript, and will post it as soon as it is available.

Fox 5 Atlanta - Sam Leccima

UPDATE 6/05: Dale Russell comes through with a THIRD INSTALLMENT of the Sam Leccima story! 

UPDATE: Fox 5 Atlanta has a second part to the Sam Leccima Story!  Click Here!

Fox 5 I-TeamThere will be another installment of the Fox 5 Atlanta I-Team look into Flip This House and Sam Leccima tomorrow night, but the tonight’s segment is available online.  Simply click the photo or this link.

You may also be interested in reading Investigative Reporter Dale Russell’s blog, which has a number of very informative links.

Sam Leccima Gathers More Attention

This morning, Yahoo News posted an AP article titled ‘Flip This House’ star accused of fraud, which reported on Sam Leccima’s various problems.

You can learn more by reading about Samuel P. Leccima’s Real Estate License Revocation, or watching part one and part two of Dale Russell’s Fox 5 I-Team Report.  I am informed that Dale will be adding a third installment of his investigative report Tuesday night.  I’ll post links here.

Some developing reports on the web incorrectly indicate that Sam Leccima has been arrested, but a call by the Flip This Lawsuit webmaster to the Atlanta Department of Corrections indicates that Mr. Leccima remains, at this time, a free man.

Some users may have noticed problems accessing and using this website today.  In the wake of the news, a significant spike in the number of visitors occurred, and it took our webhosts some time to resolve problems with accessing the site.  At this point in time, the site should be loading much more quickly.

Hot Property on Cable

According to USA Today, The Real Deal is pulling in 50% more viewwers to its timeslot than Trading Spaces, the show that previously occupied the same time on TLC.  The report does not compare the ratings of The Real Deal with Flip This House.

We learned of this report thanks to an email from Richard Davis:

Hey Y’all

I hope you’re all doing great and that you’ve enjoyed the episodes so far! The switch to TLC has been huge - ratings are tremendous and according to this morning’s USA TODAY, “The Real Deal, running in the former Saturday time slot of makeover show, ‘Trading Spaces’ is pulling in about 50% more viewers. That shows there’s still very much interest, even in a down market…” This just reinforces what we are trying to accomplish with the show by giving you an inside look into the real deals!

If you missed last week’s episode, it will reair at 7 PM on Saturday. It was a good one, so be sure to let us know what you think! As always, thank you for your continued support.

See you Saturday!
Richard and Team Trademark

Fox 5 Atlanta Investigates Sam Leccima

From Dale Russell, Senior I-Team Reporter at Fox 5 Atlanta:

I’d like to invite all the readers of FlipThisLawsuit to get a rare and fascinating behind the scenes look at the show: Flip This House.  Our I-team has investigated Sam Leccima and found a number of angry investors who have complained to state regulators and in lawsuits that Sam took their money.  We also pull back the curtain and give you a behind the scenes look at what really happened with his renovations. 

After learning of what we found, A & E has taken Sam off the air, pending an internal investigation

After seeing the story of Sam Leccima’s Atlanta renovations, you may never look at reality TV the same.

You can view the stories on http://www.myfoxatlanta.com/

Go to I-team and look for Mr. Leccima.  They run Monday and Tuesday night, a little after 6:00 EST.

Once the reports air on Monday and Tuesday, they should be available on this page.

Some Documents Released as Public Versions

As discussed earlier, a number of documents were filed as sealed documents, unavailable to those of us interested in monitoring the case.

Some of those documents have now been released in a public version.  The most important of these is the memo in support of summary judgment:

  • Docket as of 4/30/2007
  • Letter from Robert H. Jordan, Esq., Attorney for Defendants
  • Appendix 1 - Correspondence between counsel for parties regarding unsealing of Defendants’ Motion for Summary Judgment and Memorandum in Support Thereof
  • Appendix 2 - Public Version of Defendants’ Motion for Summary Judgment filed April 2, 2007
  • Appendix 3 - Public Version of Memorandum in Support of Defendants’ Motion for Summary Judgment filed April 2, 2007
  • Exhibit A to Memorandum in Support of Defendants’ Motion for Summary Judgment

We’d like to thank the attorneys in this matter for providing a public version of these documents.

The House That Wouldn’t Sell - April 21 at 9PM ET/PT On TLC

From Trademark Properties on April 20, 2007:

Hello to all supporters of Team Trademark!

Guess who’s Back??!! That’s right, no more pretenders, time for  THE REAL DEAL to take over red rover:)

 We know it’s been a long time but “THE REAL DEAL” is less than 36 hours away! It has been a long time since you saw a new deal from us, but sit back, turn up the volume, strap yourself into your recliner and hold on, cause HERE WE GO, and you’re welcome to come along for the ride:)!!! Please help spread the word to FLIP THE CHANNEL to TLC Saturday night at 9pm to see the latest from the GREATEST!!!:)

Thank you all for your passionate and continued support, without you, none of this would have been possible!!!!! You guys are the best, hope you enjoy your window into our world every week for a long time to come!!!

From Trademark Properties on April 17, 2007:

Hey Everyone!

We hope you are doing well! Its been an eventful year and the crew at Trademark Properties thanks you for your support. After several crazy adventures, many months of filming, and a lot of fun Trademark style, it is finally time for our return - and we are so excited!

The first episode takes place in Charleston and finds our team tackling the impossible by investing in a house that’s been on the market for almost a year. We renovate this five bedroom eye-sore (of course in Trademark fashion) and make it a thing of beauty in just five days. But as always, this job comes with a myriad of problems that will keep you wondering how we pull out off!

Please remember Trademark Properties and The Real Deal are now on TLC, so please tune in and let us know what you think - its great to be back! Enjoy!

- Team Trademark

For Immediate Release
April 17, 2007
THE REAL DEALIn THE REAL DEAL, premiering Saturday April 21 at 9pm ET/PT, real estate mastermind Richard C. Davis and his team at Trademark Properties face down a falling housing market and turn property into profit. Each week, Richard and the rest of the Trademark team locate, renovate and profit from the most challenging projects they can find. Together, Richard and Team Trademark pull off what everyone else says is impossible, and they wouldn’t have it any other way. Their secret? Make your money when you buy, get the job done right and get it done fast.

In THE REAL DEAL, premiering Saturday April 21 at 9pm ET/PT, real estate mastermind Richard C. Davis and his team at Trademark Properties face down a falling housing market and turn property into profit. Each week, Richard and the rest of the Trademark team locate, renovate and profit from the most challenging projects they can find. Together, Richard and Team Trademark pull off what everyone else says is impossible, and they wouldn’t have it any other way. Their secret? Make your money when you buy, get the job done right and get it done fast.In each one-hour episode, viewers get an up- close view of how Davis and his staff evaluate properties for investment potential and then inject them with much-needed improvements to maximize their profit. The result is a no-holds-barred look at the realities of real estate, where the stakes are high and the timelines are tight, and a look inside the spirit of teamwork and community spirit that propels Trademark forward. Whether it’s a house that’s been on the market forever, a condo, restaurant or a community project like his old High School concession stand or a monument to a military hero, Richard and Team Trademark do what no one else can, or at least, what no one else has the guts - or heart - to try.

Anyone purchased Armando Montelongo’s Real Estate Package?

Armando Montelongo, though the magic of Google Ads, is advertising his Master Home Study Course and Flip and Grow Rich Ebooks on the sidebar of this website.  Several people have commented on the $997 package, but thus far I’ve not received a report from anyone who has purchased the materials.

If you’ve purchased this package, and would be willing to share your review, please contact mark at flipthislawsuit dot com.

The San Antonio Crew has been very effective in maximizing the return on their appearances on A&E.  Their first episodes focused on their business website, Melina launched a site focusing on motherhood, and now Armando is focusing on sharing the lessons he’s learned in real estate.

Discovery Hearing Transcript Available

I’ve been able to obtain the transcript of the discovery hearing, which took place on February 6, 2007.  You can review it here.

Some highlights:

  • …the plaintiff has evidenced a propensity for publication. [p7, 20-21]
  • There’s no reason the case can’t be tried in June, July. [p10, 12-13]
  • The Court: Do you have any authority that an oral agreement under these circumstances is unenforceable?…
    AETN: Your Honor, I really am not prepared to argue that at this stage…
    The Court: You should be. I mean, that’s the key issue…
    AETN: There’s not a shred of evidence to support that claim…
    The Court: His testimony is sufficient, unless some form of Statute of Frauds covers the agreement, thereby requiring it be in writing. And I don’t know of any. You spoke of New York law, and I don’t claim to know any New York law, I don’t even know whether New York law applies to this case or whether South Carolina law or somewhere in between. And I haven’t looked at the Statute of Frauds. But it seems to me that’s the first place you’re going to look. Because if the Statute of Frauds doesn’t prohibit his establishment of a contract, oral contract, enforceable oral contract, then his testimony is enough to override any summary judgment. It creates a genuine issue of fact. [pp13-14]

Court Documents Under Seal

Mediation in the Trademark Properties v A&E lawsuit was scheduled to occur before March 1, 2007.  Reviewing the docket, however, it appears that mediation was not successful and that litigation continues.

Of concern to your webmaster are documents filed with the court that are now sealed.  By sealing these documents, the parties, and the Court, have prevented those of us who desire to follow the case from knowing what is taking place in this litigation.  This level of restriction is highly unusual.

For example, we have this interesting docket entry made just a few days ago:

04/02/2007 - Document #50
Sealed Document. (Attachments: # (1) Exhibit A# (2) Exhibit B# (3) Exhibit C# (4) Exhibit D# (5) Exhibit E# (6) Exhibit F# (7) Exhibit G# (8) Exhibit H# (9) Exhibit I# (10) Exhibit J# (11) Exhibit K# (12) Exhibit L# (13) Exhibit M# (14) Exhibit N# (15) Exhibit O# (16) Exhibit P# (17) Exhibit Q# (18) Exhibit R# (19) Exhibit S# (20) Exhibit T# (21) Exhibit U# (22) Exhibit V# (23) Exhibit W# (24) Exhibit X# (25) Exhibit Y# (26) Exhibit Z# (27) Exhibit AA)(Jordan, Robert) Modified on 4/3/2007 to correct the file date (erav, ). (Entered: 04/03/2007)

In the United States, there is a presumption in favor of open court records.  In order for the public’s presumptive right of access to be limited, specific reasons must be presented to the Court. The sealing of records must be authorized by statute or required by compelling circumstances. Also, a party seeking to have the record sealed has the burden of showing that their interests in confidentiality outweigh the public policy in favor of open court records.

I have found no indication that, instead of sealing the record, the parties considered redacting sensitive information from the record.  Doing so would allow some access to the court records and at the same time help protect any valid privacy interest.

I have contacted the Court in an attempt to gain access to these sealed documents so that I may report them to our readers. Access was denied (as is expected, unfortunately). 

Absent a compelling circumstance, our courts should not allow litigation under a cloak of secrecy from public scrutiny.  Simply wishing that the public would not know the details of pending litigation is not a compelling circumstance.

The docket number of this case is 2:06-cv-02195-CWH. The case has been assigned to the Honorable C. Weston Houck.  The attorney for Trademark Properties is Frank M Cisa, Esq.  The attorney for A&E is Robert H Jordan, Esq.  Their names of the attorneys link to their email addresses.  I encourage those interested in exercising your right of access to these court documents email the attorneys and request that documents not be filed under seal but instead be filed publicly with redactions as necessary to protect confidential information. 

I have, however, downloaded those documents which are publicly available since my last docket update.  They are as follows:

  • Docket Report from 04/05/07
  • #22 Rule 26(f) Report by Trademark Properties Inc.
  • #25 MOTION to Compel Discovery Responses of Plaintiffs/Counterclaim Defendants by Departure Films, A&E Television Networks
  • #26 RESPONSE in Opposition re 25 MOTION to Compel Discovery Responses of Plaintiffs/Counterclaim Defendants Response filed by Trademark Properties Inc, Trademark Properties Inc, Richard C Davis.
  • #29 RESPONSE in Support re 25 MOTION to Compel Discovery Responses of Plaintiffs/Counterclaim Defendants Response filed by A&E Television Networks, Departure Films, A&E Television Networks
  • #31 First MOTION to Compel by Trademark Properties Inc, Richard C Davis.
  • #33 Consent MOTION for Confidentiality Order by Departure Films, A&E Television Networks, A&E Television Networks(a Joint Venture of the Hearst Corporation).
  • #34 CONFIDENTIALITY ORDER granting 33 Motion for Confidentiality Order. (details outlined in order).
  • #35 RESPONSE in Opposition re 31 First MOTION to Compel Response filed by Departure Films, A&E Television Networks, A&E Television Networks(a Joint Venture of the Hearst Corporation).
  • #40 AMENDED COMPLAINT against Departure Films, A&E Television Networks, filed by Trademark Properties Inc, Richard C Davis.
  • #41 ANSWER to Amended Complaint and, COUNTERCLAIM against Trademark Properties Inc, Richard C Davis, Trademark Properties Inc, Richard C Davis by Departure Films, A&E Television Networks, A&E Television Networks(a Joint Venture of the Hearst Corporation).
  • #42 REPLY by Trademark Properties Inc, Richard C Davis Plaintiffs’ Reply to Defendants’ Amended Answer and Counterclaim.
  • #46 AFFIDAVIT of Charles Norlander by Departure Films, A&E Television Networks.
  • #49 DECLARATION by Departure Films, A&E Television Networks of NANCY DUBUC.

TLC vs A&E

Tonight, TLC and A&E are going head-to-head with A Home Run For Trademark and Flip This House - New Haven.

A Home Run For Trademark is a special; the first episode “The Real Deal” will be April 21 at 9e/8c.  The show centers around the relocation of the Shoeless Joe house, while at the same time helping to renovate the life of a current baseball player.  The show had a great storyline, and gave us all a taste of what to expect with the upcoming season of The Real Deal.

I’m watching the New Haven team on Flip This House, and noticed that A&E seems to have learned from the dismal performance last season.  The show has a faster pace, new graphics, and the budgets seem more realistic.  The new crew has a website that they continually pimped on the show - http://www.thanandpaul.com/.  In the end they doubled their money on the project, along the way they had a broken water main and an injury. 

Feel free to share your opinion in the comments.