abc escrow inc. / alcohol enterprises inc. v michael steinhauer - reply to motion

8/9/2019 ABC Escrow Inc. / Alcohol Enterprises Inc. v Michael Steinhauer - Reply to Motion

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FILEDLOS ANGELES SUPERIOR COURT,llPR 0 2 2004

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PLAINTIFFS' REPLY TO OPPOSITIONTO ORDER TO SHOW CAUSE RE:PRELIM INAR Y INJUNCTION;DECLARATION OF LOUIE CANODATE: AprilS, 2004TIME: 8:30 A.M.DEPT.: 46Hon. Rodney E. Nelson

SUPERIOR COURT OF THE STATE OF CALIFORNIAFOR THE COUNTY OF LOS ANGELES

CASE NO.: BC312678

Defendants.

Plaintiffsv.MICHAEL STEINHAUER, an individual. andDoes I through 10, inclusive .

ABC ESCROW, INC .. a California corporation; )ALCOHOL ENTERPRISES, INc., a California )corporation ))))))

))))

Attorneys for Plaintiffs ABC Escrow, Inc.,and Alcohol Enterprises, Inc.

Ronald Jason Palmieri, State Bar #96953Robert P. Wargo, State Bar #175177LAW OFFICES OF RONALD JASON PALMIERI911 Linda Flora DriveLos Angeles, California 90049Tel: (310)471-1881Fax: (310)471-3511

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17 Plaintiffs ABC Escrow, Inc., and Alcohol Enterprises, Inc .. reply to Defendant Michael18 Steinhauer's Response to the Order to Show Cause Re: Preliminary Injunction as follows:19 I20 DEFENDANT DOES NOT DENY ANY OF THE MATERIAL ALLEGATIONS SETFORTH IN THE MOVING PAPERS2122232425262728

TIle Court should note that Defendant Steinhauer does not deny any of the materialallegations set forth in the moving papers which support the issuance of the Preliminary Injunction.

n S ~ c i t i c a l l y , he does not deny that:.":r (1) Pursuant to his written employment agreement with Plaintiffs, during, and for a periodSIoflwo years following the tennination of, his employment with Plaintitl he was forbidden fromU ~ l g any of Plaintiffs' confidential infonnation (including the name, address or telephone numberL;lof clients or customers) to "call on, solicit, take away, or attempt to call on, solicit or take away,either for [Defendant] or for any other person, tinn, corporation or entity the company's clients,


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customers and employees,"

2 (2) Following the termination o fhis employment by Plaintiffs, he breached this provision of3 his employment. and interferedwith Plaintiffs' potential economicadvantage. by contacting Safeway4 Stores. one o f Plaintiffs' long-time clients, and placing them in direct contact the seller o f a liquor5 license which Safeway had intended to acquire through the services o f Plaintiffs; and6 (3) As a resul t o f said act, Plaintiffs lost the $90,000 in profits they otherwise would have7 obtained had Steinhauer no t interfered in the transaction.8 Moreover, Steinhauer does not contest that as to the relief granted. greater injury will be9 inflicted upon the Plaintiffs by the denial o f relief than will be inflicted upon Defendant by the

10 granting o f the relief herein; and that Plaintiffs have no adequate remedy at law.II Defendants' only objection to the issuance ofthe Preliminary Injunction is that the injunction12 include a list o f those persons and/or entit ies whom PlaintitTs believe were their customers and13 clients as o f March 5, 2004, so that there will be no question as to whom he can or cannot14 communicate with. Plaintiffs have included a list o f such persons and entit ies as an exhibit to the15 proposed Preliminary Injunction submitted, and PlaintitTs request that theCourt maintain the exhibit16 under seal in order to protect this Contidentiallnformation o f Plaintiffs.17 II.18 DEFENDANT STEINHAUER THAT SAFEWAY STORES WAS A CLIENT OFPLAINTIFFS AT TH E TIME OF HIS TERMINA n O N FROM EMPLOYMENT192021

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Although not addressed by Steinhauer in his written opposition, at the time o f the hearing onthe Ex Parte Application for Temporary Restraining Order and OS C Re: Preliminary Injunction,Steinhauer asserted that he had no knowledge that Plaintiffs were involved in negotiations withSafeway for the sale o f the liquor license at issue. However, the attached declaration o fLouis Cano,n,D ~ f e n d a n t s ' supervisorduring his employmentwith Plaintiffs, establishes that Defendant Steinhauerl 'h knowledge o f Plaintiffs' ongoing business relationship with Safeway, because Cano haddilcussed the relationship with all o fPlaintiffs' sales statTat weekly staffmeetings and specificallywt1h Steinhauer on numerous occasions. Moreover, Cano's declaration establishes that Steinhauer.""had ready access to Plaintiffs' written and electronic files concerning all o f their clients, includingthe names, addresses and telephone numbers o f such clients.

Page ::!PLAINTIFF'S REPLY TO OPPOSITION TO ORDER TO SHOW CAUSE RE: PRELIMINARY INJUNCTION


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III.

2 THE PRELIMINARY INJUNCTION SHOULD BE ISSUEDWITH ONLY A MINIMUMUNDERTAKING3 With respect to the issuance of a Preliminary Injunction. the amount of the undertaking4 required in connection therewith is left to the sound discretion of the Court so as to protect the5 interests of all parties affected by the Injunction. (See Hummel vs. Republics Federal Savings &

IV.CONCLUSION

For all of the reasons set forth in the Ex Parte Application and above, Plaintiffs requeststhat this Court issue the Preliminary Injunction as prayed for herein.

Respectfully submitted,ated: April 2, 2004

Loan (1982) 133 Cal.App.3d 49, and County ofInyo vs. City of Los Angeles (976) 61Cal.AppJd 9\). Plaintiffs request that the Court require only a minimum bond of$500 whenthis Court issues the Preliminary Injunction as requested as Defendant does not contend that hewill suffer any damage as a result of the issuance of the Preliminary Injunction.

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Page 3PLAINTlFFS REPLY TO OPPOSITION TO ORDERTO SHOW CAUSE RE: PRELIMINARY INJUNCTION


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DECLARATION OF LOUIE CANO

2 I, Louie Cano, declare as follows:1.

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The facts declared herein are true ofmy own knowledge and, if called upon, I could andwould testify competently thereto.I am employed as a sales manager with Plainti ff Alcohol Enterprises , Inc ("AEI"). I wasMichael Steinhauer's immediate supervisor during his employment with Plaintiffs.In January 2004, AIl successfully brokered the sale of a liquor license to Safeway Storesin Maricopa County, AZ. A copy of the escrow instructions related to this sale is attachedhereto as Exhibit "A." These instructions are signed on behalf of Safeway by Jan Martin.The instructions were kept in AIl 's office files and were readily accessible to all of AEI'semployees, including Steinhauer. The entire sales staffofAEI, including Steinhauer, wasaware of this transaction because I infomled them of the progress and conclusion of it atour weekly sales statTmeetings.After the January 2004 transaction, Safeway desired to acquire additional liquor licensesin Maricopa County, and I discussed this with the sales staff at our weekly meetings. Ispecifically discussed Safeway's needs with Steinhauer on several occasions. In February2004, Steinhauer infomled me that he had located a potential seller of a liquor license inMaricopa County, and we discussed that AEI would try to sell this l icense to Safeway.The details regarding this sale are set forth in Exhibit "8," which was prepared bySteinhauer, and references himself ("Mike") as the salesperson. The license referencedherein is the same license which Steinhauer attempted to sell directly to Safeway after histemlination even though he knew that AEI had already entered into a tentative deal withSafeway for the purchase of this license for $210,000.The names, addresses and telephone numbers of Plaintiffs' customers and clients aremaintained in Plaintiffs' offices in both written form on various documents and electronicfoml on the office computers. The information is readily accessible to AEl's employees.Throughout his employment with AEI, Steinhauer had access to the information that JanMartin was AEl's contact with Safeway, as well as her telephone number and address.

Page 4PLAINTIFF'S REPLY TO OPPOSITION TO ORDER TO SHOW CALISE RE: PRELIMINARY INJUNCTION


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003/0034/01/2004 THU 16:54 FAX 31i1if9 3688 AB C ESCROW \ LLS. , . ' . . .. . I' ... . '" ' . ' :'. .' "" '1 ".1. . I.declare utlder peualty ofperjury undertb.elawsof the StateofCalifomia thattheforegoing2 is true and correct. Executed on April L. 2004, at Los3456789

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Pw10PLAINTIFF'S REP!.YTO OPPOSInON TO ORDER TO SHOW CAuse RIl: PRELIMINARY INlilNCIlON

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ABC Escrow Ino . .Clare H. Abol, Eiq,. -,g",i702 E. Osbomc Ro . N200PlIOOIllx. AZ 8SOjqPlIo", ( ~ :>34-1920PlIonc (602) ~ " ' 0 3 4 1

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~ _ 17383 SUn.et Blvd.. SuiteA310.. PacifIC Pali.ades, CA 90272. Tel: (310)4593466Fox,(311l-459-368l1

ESCROW INSTRUCTIONSSALE OF ALCOHOLIC BEVERAGE CONTROL LICENSETO: ABC ESCII.OW COMPANY """ J..uaty 2&, 2004mS3 5IIIlmBlvd SIll" AJ 10 0'-"'" CUllISTINAMOlO!NOh:0lIc PoIlsIdcs, CA 90'112 . . . . . . No., 7983.cMThis lna.aw:uOD. is,givm this 'I'wl::UQ'-SWh cb.y of JaoUC)', 2004. by z4 betwc=.lbeS ! ~ L ! R s (b"';D

SS 200.000.00200,000.00

9 0 0 / Z 0 0 ~

3. EscroW'w.u. c:lo.sc onJ. . . . 17%8,2004 .. ABC ESCR.OW ic l i by CalitonU.1l or Corpor.llltioDs. Licmse No. H3-1735. aad Is spproved. tooperateAS. tw-c:ign cocporadob by the Slate or /6rimaa,.uC ESCROW, me. (F"ale No. 0890S00o-9) A r i ~ ~ LicI!l1S'eNo. EA0903Ol.5. In tbc CVQl thai: escrow CaU: to toDSuIM'IatC tClr lJ1y rwan, ABC Escrow ~ , I s authorIzed b)l Buyer and Seller IOretaiD. in r., md C::oIit, im:urnd !rom deposit!! wadI: ill CSCrO"N YiithCl.lt fuzthcr wrl,rteD. AUlhOrizalioD. t : . ~The !.strow Ho1det dW:IOSCI C n i ~ Block 1w a p r i n c l ~ lDtes'CIt in ABC &crow CoPpy.Li.qnor License ~ i s c s .6. BUl'er IIld Selic< lldamlJled by Em West Bank!o& Regullllo$e11cl" it rmpooriblc Ufo .a.od Iba1l PJ,)' lor, all C I bwniYC fcc'. owed. u> Ari:2ou. ~ of Uquor Lio=se m:lCoDnol, it.lll,f, up lOWe ekIIc of ItCIOW datt After thc closc otC5C:rOW, Buyer thaIl be f e S P O ~ c for, IlQd _11 Pif (or. Il l)'UId Jllld4ltioul iuedve: ra',. dw: Ihtlhl)'el' nuy acr:rued. fortallUft lei InMttr Nid 1 i i n . ~ : r NQWCr.Escrow Hold=' 1'1 b.ereby awhofi2m aQd ~ by both Sd1er aDd the BuycT ~ obtaUI 3. UCC SeatdI. from tb.e ArifDllaSe=taly of S.... ODd_po Cowuy Rcoorder.Sd1tn R q l r ~ I . i Q . : Seller wmlQtllhd tqK'ekIIl (0 Buyer tbar.:1. (X) SellaOWN: the Uceme, bas 11lo ri&ht to coavcy Lic:c:a=:. mel will dl::1i.vcr to Bu)'er It C1osi'Qg III a c ~ t o d BIU o(Sale in the fOQJI of the- Bill 01 Sale mat:bcd as ~ i b i t h. It CJosln&. th' LiUDlt win be ttansf'em:d free atld dear ofall claln>ll.i=.

S e n e t m l ~ :

Qnn/rnnill


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ABC Escrow Company D,,R6 wilh escROW HOLOER.4. S1lould.1I1)' c U l p u ~ arial: bctwQ or aml)DS thc: parties hemo or lhitd pa:nies or mould FSCR.OW HOLI>!i. KCCiveC O D ~ l c t I n : dcmar.d.8 whb ~ ~ t o tile escrow. ESatOW HOLDElm.ay, .It itslO1c: OJItiCtll., bul wj(b,wt .IiDlili"l In ot!ll:rtights hcn:lfctr 5Ct fertb. do a_ ofme t o l l ~

.... Scop all iu !:he,pcrforwzaceor this escrow and w!r.bbo1d. dcUvcl)' of dOClItJa1I ormoma; iu.1upolR$dOD unlJ.I wdl c U l p u t ~ Of t o f t f U c d . ~ demal:ld..t.have been resolved In4 writtell. pmol ~ Iw ~ t t 1 deposltUIiD tse:tow.B. Pne aD. iJ:tlClpleader Alit in any 'Oun 01 c o m p e t C I f t t i l U ' b d i e ~ o o . , U.pon the.6.UDg of mQh :mit. BSCR.OW HOLDER

Ih!J.1 be tully J;!tced 1IZl.Cl ~ J d ' l . a r t c d or;ad, trom,dl ob1i.atioDS wil.l.ability in coDlJllGtion w.i.th the C'lJI'O"lY, IW l till:pwti "ox or 10)'_ , or _ filed or rctmcd 10 ~ n D. All)' . .adI . at dilCltlion by EScaOW HOLOEil plOY__ . . . . . . . . ; , SlIlborized by Cha. inolnlOli"",;5. Iudvenem failure of :E.SCR.O'W HOUJR. fa comply w i JC5ClWClUCtiOIll or' ury 1tttctt1CD., or l 1 ~ t fllr.:d orreferred to herein:

8. E a c h p ; . n y l O l b . l s l s a o ' f { 1 ' l u t b e r w a r r t V l . t I ~ t = ) , J l e & C l l l a b l c ~ t ( I n ~ )d.ellve:ed to Esclow by or onbcbaIr ofNdl. pitt]' ("Delivtrin1 P a n y ~ ) :dIul be bonolal. upon ptaetdadoz1by B=ow. IrI. the ....eo.t such 1 1 U ~ ~ 11 nOtbooored OpoD p""""ation. _ DdlYwliolder. diohooored


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.. - .,.., ..... , . ~ . " ... ..:. v 'ABC Escrow Company Oate: J ' Q D ~ 26, 2004

Egrnw No.: 798J..CMeashier',t chea.!n tht: IDIOUDt of. !be oriiMI ~ plus a i s J 1 o ~ lnstNmeIl.t r ~ 1'1:1 Ill!' Mnt t cuhier' oS e ~ Is~ i by bow Holder, at Jcs col!' cUscmion. [0 replace tho opcni.Dr: dCpO,tit 1'IIDdt. thtll only .iI. cmner'll Chcck Will bel=epted !or pAyltlell.( o( III further depDli1l bIn1 &crow on behalfof streb. partY,9. The or eMorrer of lOy ched:. depo,si&ecllrl. eccro.... (i) ....1tt1Zl.1$lhal: the chtd:wiU b!' honoJ14upoD. preMrlWlon. (ii)=t1Ioriu:s ESCROW HOLDER. aE ics. dceUon (0 caforcc ~ of KId!. check by 1itigitiOD If DecelSK[y. 'and (iii) t&retS torepa)' ESC;ftOW HOLDER for aU"PdSec so i=umd. ~ ' l l d i n : ; ama.t i1ttDmc)'S' fed.10. 1'bc ~ o : $ jointly :md ~ m . U y promiK: to iJ.cScnmify '" bold :esCROW HOWEll hamlen: or md fronJ !!Ill c o ~ s .charges. damates, e 1 . u m s . . j ~ . anomeys' feet, CltpctJdiQlR:S, cbli:arl.OlU, al:Id. liabilities of every kilYJ, andJDNrc "'hidl !SCR.OWHOLDa may W:ur or SU5taiD. iD co=e:ctioDwit11lhil ac:ow. ESCROW aOLDER. iii hcteby ;iV'm a11m upon all ot the tithl, 1it14as itI&c:rc:n at 111 panlea bcttEO in ilIl QCrDw ~ docuD2=ts. iIrId. \lrtitinCS atid odI:er propenyaDd 1J1ClI1ie.s deposited mesc.tow to CC:CW'!' perfoamDce01 the ptOtnLses COD.Wned I.D. this paragraph.It . Ifw. coMf4er2lion La be recaved by lad!. partY is hlSUUIalem to pay u" fW1 the clliw duly filed In escrow againn :.uchpmy. ascrww HOLDER may di$lrlbute die CODJ1dc:OIUoD. pro m J to r:.he c1J.iInamJ withO\,ll iUrther aotiee to, 0( ' awboriution_ "" ponieshetelo. ESCROW HOLDER.my delI1Ia olllI P'l' ftorn IllY .... all tIlO>lIes dq>orilO1l wilbia Illis "" . ' " liltfu1j amo\Ult or Its c;QICs. tlw'JC:!. 0lDd f prior to 'lbc pro r. wltnoution c:tetcribed II.=lDaIxJve.12. AlIC :&crow ComPJD)', is ,1,Itb0ri=41.1W11D1we'cedby t!lo 'Buyer lAc! Se11.e:: herelD. loCI to=lply wi,1h insuuetlotf.VhereiA comained w1t!l.out ::ID)' l ~ i C ) o etC ira k 1'0 doma.I:!. Tbi:li Agreement shall iwrc lO tbt: bmct.it ot IDd. be bUtding upon Ihc !:1M, ClCeOIItDrIi. PodmiDlstnton. ~ O I 1 wtassi,11S ot the parnes t1.crctO.14. Where the c o n ~ ~ o( thil ~ .teq,u1r=. lhemauUne tend.ez' shall include the rcminice IDd ntUtClr s,mdert. w ithe :s-iD&ular ah&Il inc.IUde Ihc plur3l. The "WOrd.!; PBRSQN or PAltTY CbaU ltIo1udt all c:mhie, n=cogujzed by the 1;..".. of tileSts.t(: orArizoDilDclu4in& iDdividual.5. ~ joint Ymtl l re i ; and. c o l p O f U i l ; J ~ .lS, ShoWd p ~ n p h , clmce, 01' p,roviJiO'l of thb A ~ be eatlS'l::tW:d or In[tt'preted by court of C O m p c 1 ~jtlritdietiotl. [0 be void, iD.'nlJ:d. or uncn(orcable, IUCb dedSIOD l!uJlaffect OZlly the ~ - r ; r ~ . or PrQ..,Uion IecomtNed l)I' iDlr;IpreCcd I!1d chan ill DO aent alftct !he rtmainin& parathPH. tJauu:. or provlsions of Ehcs; Ulttll.U:tiOt1$wtl.ieb. .lWI M n a i . ~ valid. s u b ' i ~ IDd tarorceablc:.lIS. 1 ( ' l b G I ' C ~ o ~ . r c q u i r c : t I ! e p r c p l l l a t 1 o A a a d C M C l , 1 t i O D o t l D Y p r o m i s l i O I ) ' $ l C H C other Ylritiq whfdl. eY14wl.'\tS Jftill4cblcdnea or ehOJ'e 111: .JCtiClll., M Ill)' ~ t OJ' otbcr documo:Ll which iIlteodcd to ~ l ~ 1 1 Y mtcft$'l Inru I or pctIODal plOpeft)'. tb.aI c b e ~ .,roc furailh ESCROW HOt.DBR, approplWc IoDns to ~ o J n P U ! h the saidrcql,lirc:nlcn&s. ShcuJ.d thepMdef elcel to la c such fotm m.de ilvaUable to tbm. by ascaow HOLDER, it is .weed thuESCROW ROLDER hu made lwillbIc hCb. farms as 81\ ICCOI:l'JrIdaloD oflly. anel ESCROW HOLDER Ih;II act be liable tothe putiq; for felcctioa o(the l'orm or the ~ aDd S\ltficieDcy.17. Should h become neeaNl) ' for BSCROW HOLDER. \0 employ aD. IUOlDeY in co=mioa. WiU:r. this r::Il:fOW tQfC Q M . l J t ~ o t l . dOOlmClJlS, S T : n ~ JIDticcs or btil.tmt. prosecu.tlD& or de&ndIDC Ii\ijlatio:l. ~ C puue.r. lI.=to dQjoinJ:lymd ~ a 1 l y pronDle to PI)' ESCR.OW HOl.DBR 011 d il l IUODIC1s' rees m1 OOSl5 & I ) ~ . ISClWW.HOLDER is au.tbori= to deduat frol:l:llD)' fI1ZIdI deposited \1I'W:l it 1M 10 pay d1realy 'to uy ItlOme)' it mIpl(1)'S the MIID\OUDt of NCb lUOI'D.C)'s' !ccs and, com.18. $Il.o\,lld. parcle5 fail to dOl1af;: 1DstnK:&icw wjth.iQ d:qy (60) dii)"5" from q ;I Jfkr the: clo.DnS date I. forth in thCliliOlnsmzalan.s:, thcrI. ESCROW HO!J)E1t shall be em.Ided I:O r c c : i ~ e aD. a4d.itioull'WOrlable Nm . tach JIJOQ'lhas ,bola-optll ftc...M", """ ""y bed _ '.''''


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CATE: 211212004

STATEEscmw Number. "6-""'O"'lL=


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PROOF OF SERVICE2 STATE OF CALIFORNIA, COUNTY OF LOS ANGELES,I am employed in the County of Los Angeles, State ofCalifornia. I am over the age of 183 and not a party to the within action; my business address is 911 Linda Flora Drive, Los Angeles,CA 90049.4 On April 2, 2004, I served the following documents described as PLAINTIFFS' REPLYTO OPPOSITION TO ORDER TO SHOW CAUSE RE: PRELIMINARY INJUNCTION;5 DECLARATION OF LOUIE CANO and PRELIMINARY INJUNCTION (PROPOSED) on theinterested parties in this action by as follows:

Michael Steinhauer7 1541 Poinsettia # ISLos Angeles, CA 900468 FAX: 323/874-8838910I I121314

BY MAILAs follows: "I am readily familiar" with the firnl's practice of collection and processingcorrespondence for mailing. Under that practice, it would be deposited with the U.S.Postal Service on that same day with postage thereon fully prepaid at Los Angeles,California, in the ordinary course of business. I am aware that on motion of the partyserved, service is presumed invalid if the postal cancellation date or postage meter date ismore than one day after date of deposit for mailing in affidavit.. lL BY FACSIMILE

15 . lL I faxed copies of such document listed above to the persons whose name, address andfacsimile number appears above.16171819

BY PERSONAL SERVICEI caused such envelope to be delivered by hand to the individual(s) whose name(s)appear(s) above.

Executed on April 2, 2004, at Los Angeles, California.. lL (STATE) I declare under penalty of perjury20 the foregoing is true and correct. .

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eState ofCalifornia that

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Page 6PLAINTlFF'S REPLY TO OPPOSITION TO ORDERTO SHOW CAUSE RE: PRELIMINARY INJUNCTION

abc escrow inc. / alcohol enterprises inc. v michael steinhauer - reply to motion

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