Flip This Lawsuit

Flip This Lawsuit

Original Press Release ....

TRADEMARK PROPERTIES FILES MULTI-MILLION DOLLAR CIVIL ACTION AGAINST A&E OVER “FLIP THIS HOUSE”

Martin Singer of Lavely & Singer Retained to Lead Case for Plaintiff

Charleston, SC (July 24, 2006) – Trademark Properties and its President/CEO Richard C. Davis have filed a multi-million dollar civil action against A&E Television Networks and Departure Films in connection with the reality television series “Flip This House,” which aired on the network this past season.

Among nine causes of action, the complaint alleges fraud, breach of contract, misappropriation of trade secrets and unfair business practices by A&E, which failed to codify deal points into a written agreement, paid nothing to Trademark Properties for its original series concept and involvement, and is now launching a second season “without Plaintiffs’ approval, participation, or otherwise providing any compensation.” The civil action, which also requests a jury trial and an injunction restraining A&E from exploiting the series any further, was filed in the Court of Common Pleas, Ninth Judicial Circuit, State of South Carolina, County of Charleston by plaintiff’s attorney Frank M. Cisa of Cisa & Dodds, LLP. Trademark Properties has retained well-respected entertainment attorney Martin Singer of Lavely & Singer to lead the case.

“In my over 25 years of practicing entertainment litigation, this case involves one of the most outrageous acts by a television network. My clients’ television show that they have worked on for several years has been taken by A&E, and my clients have not been paid one penny by A&E. We are looking forward to the jury vindicating my clients in this matter.”
According to the complaint, in April 2004 Davis and Trademark Properties created a digital video pilot originally titled “Worst To First,” which featured Davis and certain Trademark staff members going through the process of locating, acquiring, refurbishing and selling houses. After a DVD of the pilot and written treatment were “enthusiastically” received by A&E, the network requested an in-person meeting, held in June 2004. At that time, A&E expressed interest in producing and televising the series, subsequently renamed “Flip This House.” At this meeting, Davis stipulated that Trademark and A&E must be equal 50/50 owners of the project, that they share equally in all net revenues and proceeds, and that A&E pay for all production costs, among other discussed provisions. A&E explicitly agreed to these terms and, based on that agreement, Trademark permitted A&E to retain Departure Films to produce an initial 13 episodes of the reality series.

Trademark alleges that A&E promised to prepare a written agreement, yet despite repeated requests and assurances, no written agreement was ever prepared during the production and airing of the first season, nor did A&E provide any monetary compensation to Trademark. “A&E never intended to prepare or deliver to Plaintiffs a written agreement,” according to the complaint, and willfully induced Trademark to allow A&E to use its “valuable concept and format.” In effect, Trademark alleges, the network “misappropriated and stole Plaintiff’s project for A&E’s own use and benefit.”

Trademark Properties is headquartered at 1175 Folly Road, Suite C, Charleston, South Carolina 29412.

apparently homeboy replacement Sam is in hot water :

Sam Leccima Gathers More Attention
Friday, June 1, 2007

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.

And the Spanish Dude ....

David Montelongo Sued By Investor
Saturday, September 15, 2007

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.]

A&E seems to be having troubles since Trademark left ...........