W49) JfJ

_______________
_
IN THE CHANCERY COURT FOR THE THIRTIETH JUDICIAL DISTRICT
AT MEMPHIS, SHELBY COUNTY, TENNESSE]
I r:&oJ*
JfJ
OV
CHRISTINA STEVISON and
STEVISON GROUP, LLC dlb/a
GRACE MAGAZINE and
SISTERHOOD SHOWCASE,
)
)
)
)
DONNA L. RUSSELL, C & M
TIME:
BY:______
)
v.
)
TONI B. HARVEY, CHRIS BOYD,
and NONKARTA LLC,
Defendants.
MAR 312014
)
Plaintiffs,
)
No.
Part
W49)
)
)
)
)
VERIFIED COMPLAINT FOR INJUNCTIVE RELIEF AND DAMAGES
TO THE CHANCELLORS OF THE CHANCERY CQURT FOR THE THIRTIETH
JUDICIAL DISTRICT:
COMES NOW Plaintiffs, Christina Stevison and Stëvison Group, LLC dlb/a Grace
Magazine and Sisterhood Showcase, by and through their counsel, and for their causes of action
against Defendants, Toni B. Harvey, Chris Boyd, and NonKarta, LLC, state as follows:
NATURE OF ACTION
1.
ur
This dispute arises as a result of Defendants’ tortious interference with the
business of Plaintiff, Stevison Group, LLC d!b/a Grace Magazine and Sisterhood Showcase
(“Stevison Group”), as well as Defendants’ misappropriation and conversion of property and
funds belonging to Plaintiffs, Christina Stevison and Stevison Group, LLC
2.
While Plaintiffs are seeking monetary damages in this action, a real threat of
irreparable harm exists to Plaintiffs if immediate injunctive relief is not granted, restricting
Defendants’ ongoing actions and Defendants’ use of certain misappropriated property and funds.
PARTIES
3.
Plaintiff, Christina Stevison (“Ms. Stevison”), is an adult resident citizen of
Memphis, Shelby County, Tennessee.
4.
PlaIntiff, Stevison Group, LLC, is a. Tennessee limited liability company d/b/a
Grace Magazine and Sisterhood Showcase with its principal place of business located at 90 S.
Front Street, Memphis, Tennessee 38103.
5.
Defendant, Toni B. Harvey (“Ms. Harvey”), is an adult resident citizen of
Memphis, Shelby County, Tennessee, with a known residence located at
Tennessee
6.
Defendant, Chris Boyd (“Mr. Boyd”), is an adult resident citizen of Memphis,
Shelby County, Tennessee, with a known residence located at
Tennessee
7.
.
Defendant, NonKarta LLC, is a Tennessee limited liability company with its
principal place of business located at
Avenue, Suite
Memphis, Tennessee
38 l032360. NonKarta, LLC may be served with process via its registered agent Tony Farmer at
Memphis, Tennessee
I
On March 24, 2014, NonKarta, LLC chpged its registered agent. The previous registered agent for NonKarta,
LLC was Christopher Harris at
Memphis, Tennessee 38103.
JURISDICTION AND VENUE
8.
Ann.
§
This Court has subject matter jurisdiction over this matter pursuant to Tenn. Code
16-1 1-101 in the exercise of its inherent equity jurisdiction and Tenn. Code Ann.
§
16-
11-102 in the exercise of its concurrent jurisdiction.
9.
This Court has personal jurisdiction over the Defendants in this matter.
10.
Ms. Harvey and Mr. Boyd reside in and transact business in this jurisdiction, and
their acts as alleged herein occurred in this jurisdiction.
11.
NonKarta, LLC is a limited liability company formed under the laws of
Tennessee with its principal place of business within this jurisdiction, and the acts of NonKarta,
LLC as alleged herein occurred in this jurisdiction. Upon information and belief, NonKarta,
LLC is a litigation support company formed by Defendant Ms. Harvey.
12.
Pursuant to Tenn. Code Ann.
§
20-4-101, venue is proper in this Court.
Defendants reside in and/or may be found in Shelby County, Tennessee, and all acts and/or
omissions alleged herein occurred in Shelby County, Tennessee.
FACTUAL ALLEGATIONS
13.
Grace Magazine i a bi-monthly publication pub1ishd in Memphis, Tennessee
that highlights the accomplishments of and issues important to women of color.
14. The Sisterhood Showcase is a yearly event that has been held at the Memphis Cook
Convention Center in Memphis, Tennessee for the past eighteen (18) years. The Sisterhood
Showcase is designed for women and features local, regional, and national exhibitors that
provide products and demonstrations related to fashion, beauty, health, home, and more.
15.
Grace Magazine and the Sisterhood Showcase were founded by Tina Birchett.
Tina Birchett was Plaintiff Christina Stevison’s mother.
16.
Prior to her death on August 18, 2013, Tina Birchett owned and ran the day-to
day operations of Grace Magazine and Sisterhood Showcase.
17.
After her mother’s death in August 2013, Ms. Stevison inherited the business and
took over her mother’s responsibilities at Grace Magazine and Sisterhood Showcase.
18.
Ms. Stevison is the President and Chief Executive Officer of the Stevison Group
d!b/a Grace Magazine and Sisterhood Showcase.
19.
In September 2013, Ms. Stevison hired Defendants Toni B. Harvey and Chris
Boyd to work for the Stevison Group.
Ms. Harvey became the Editor-in-Chief of Grace
Magazine, and Mr. Boyd served as Director of Operations for the company.
20.
Ms. Harvey was a personal friend of Ms. Stevison’s mother, and prior to Tina
Birchett’s passing, Ms. Harvey worked for her as a contract employee.
Mr. Boyd is Ms.
Harvey’s companion and business partner.
21.
Ms. Stevison hired Defendants to help her produce the Grace Magazine
publication and annual Sisterhood Showcase event.
22.
Instead, Defendants took deliberate steps to misappropriate funds from the
business for their own personal use, intentionally interfered with and interrupted Plaintiffs’
ongoing business, and misappropriated Plaintiffs’ confidential business information, property,
and trade secrets for use in Defendants’ own emerging, competitive business.
Defendants’ Pattern of Misconduct and Misappropriation of Funds
23,
Through their respective roles as Editor4n-Chief and Director of Operations, Ms.
Harvey and Mr. Boyd took over the day-to-day operation of Grace Magazine and Sisterhood
Showcase.
4
24.
After September 2013, the daily operations of Grace Magazine and Sisterhood
Showcase occurred in commercial space owned by Defçndants. Plaintiffs paid rent to NonKarta,
LLC to use the commercial space.
25.
Ms. Harvey operated her independent litigation support company, NonKarta,
LLC, out of the same commercial space rented by Plaintiffs.
26.
Defendants had access to Plaintiffs’ business bank account.
27.
In October 2013, Mr. Boyd opened a Capital One credit card in Ms. Stevison’s
name; however, Ms. Stevison never received the credit card. Ms. Stevison was not provided the
login information or password to viçw financial statements showing purchases and activity on
the card until February 4, 2014.
28.
Defendants also used an American Express card purportedly for Grace Magazine
and Sisterhood Showcase expenses; however, Ms. Stevison did not have access to the account,
did not receive a card for the account, and did not receive any statements or invoices showing
purchases, and activity on the card.
29.
Beginning ir September 2013 and continuing into March 2014, Ms. Stevison
wrote checks at the request of Ms. Harvey and Mr. Boyd for amounts represented to her by
Defendants to be business expenses of the Stevison Group d/b/a Grace Magazine and Sisterhood
Showcase.
30.
On or about December 9, 2013, Ms. Stevison noticed a $998.00 PayPal® charge
for a television on her personal bank account,
Defendants had Ms. Stevison’s PayPal®
password, which was linked to her personal bank account.
31.
When confronted by Ms. Stevison about the charge, Ms. Harvey and Mr. Boyd
both denied making the purchase. Defendants volunteered to investigate the charge but never
followed up with Ms. Stevison.
32.
On information and belief, the telephone number used for the delivery of the
television appears to be the cell phone of Ms. Harvey’s daughter, a Verizon cell phone which
Defendants have been improperly paying for out of Plaintiffs’ funds, without Plaintiffs’
authorization.
33.
Unbeknownst to Ms. Stevison, Defendants made other unauthorized, non
business charges in the name of Grace Magazine and Sisterhood Showcase.
Unauthorized
charges include, but are not limited to, payments to luxury stores, retail stores, nail salons,
automobile repair shops, personal storage facilities, as well as cash payments to Defendants.
34.
Defendants also increased their monthly salaries, other employees’ monthly
salaries, and Plaintiffs’ monthly rent payments to Defendants without authorization or
consultation with Ms. Stevison.
35.
To date, the total amount of Defendants’ unauthorized charges is unknown and
growing.
Defendants Refuse to Provide Access to Plaintiffs’ Business Records and Property
36.
In early January 2014, Ms. Stevison grew concerned about unauthorized charges
and requested information from Mr. Boyd regarding the company’s financial accounts.
Her
requests were ignored.
37.
On or about January 22, 2014, Ms Stevison requested that Mr. Boyd meet with
her to discuss the company budget and requested that he produce certain financial business
6
records, which included passwords and access information to accounts, credit card statements,
invoices, salary records, vendor payment records, and other documentation.
38.
Mr. Boyd delayed the scheduled meeting. On or about February 4, 2014, Mr.
Boyd sent Ms. Stevison some business ledger information and stated that they could discuss any
questions that she had. On or about February 5, 2014, Ms. Stevison informed Mr. Boyd that she
had questions about the ledger but Mr. Boyd ignored Ms. Stevison’s request to discuss the issues.
39.
Throughout February 2014, Ms. Stevison made repeated requests for meetings
with Defendants and for production of the previously requested fmancial information and
documents. These requests were all ignored.
40.
On or about February 20, 2014 and after repeated requests from Ms. Stevison, Mr.
Boyd provided her with the username and password for the Sisterhood Showcase’s PayPal®
Account.
This is the account containing accounts receivable from vendors paying fees for
participation in the Sisterhood Showcase.
41.
Shortly after Mr. Boyd supplied Ms. Stevison with the PayPal® username and
password; however, Defendants discontinued use of the PayPal® account and instead had
vendors make payments into a new Square® account.
42.
The username and password for the company’s Square® account has never been
provided to Ms. Stevison. Plaintiffs currently have no way to access the Square® account.
43.
At the end of February 2014, Ms. Harvey met with Ms. Stevison, No documents
or information were produced at the meeting, but Ms. Harvey assured Ms. Stevison everything
was within budget and that the business’ financials were in order.
44.
On or about March 11, 2014, Ms. Stevison called a meeting with Defendants and
renewed her request for critical financial, business, and vendor information, documents,
7
passwords, and log-in access information.
Ms. Stevison also requested copies of all
communications between Defendants and Sisterhood Showcase vendors.
45.
From September 2013 to March 2014, Ms. Stevison invested substantial funds
into Grace Magazine and Sisterhood Showcase.
46.
Yet, at the March 11, 2014 meeting and still without producing any, of the
requested information or documents, Ms. Harvey informed Ms. Stevison that the company could
not meet its payroll obligations unless Ms. Stevison immediately paid an additional Thirteen
Thousand. Dollars ($13,000.00) into the company.
47.
On or alout March 12, 2014, Ms. Stevison again renewed her request to Ms.
Harvey and Mr. Boyd for the previously requested financial information, invoices, documents,
vendor information, passwords, and log-in information.
This information was needed to
determine whether the requested Thirteen Thousand Dollars ($13,000.00) was actually necessary
to meet payroll.
48.
Defendants’ only response to Ms. Stevison’s requests was that the 1
requested
information was either already in Ms. Stevison’s possession or could be found in the filing
cabinets at the office.
49.
On or about March 12, 2014, Ms. Stevison tried to access the office filing
cabinets to obtain the required information, but the office filing cabinets were locked.
50.
On or about March 12, 2014 and without Ms. Stevison’s authorization,
Defendants also instructed Plaintiffs’ other employees not to come into work.
51.
Despite Defendants’ contentions and without the requested Thirteen Thousand
Dollar ($13,000.00) deposit, the business met its payroll obligations.
8
52.
On or about March 13, 2014, Ms. Stevison again renewed her request to
Defendants for the previously requested financial information, invoices, documents, vendor
information, passwords, and log-in information. Defendants again ignored the request.
53.
Further, Defendants refuse to return Plaintiffs’ business property, including, but
not limited to, files, a telephone system, and a laptop computer, as well as certain personal
property of Ms. Stevison’s, including, but not limited to, artwork and a 2008 Toyota Corolla
automobile.
Defendants’ Interference With and Sabotage To Grace Magazine and Sisterhood Showcase
54.
The March/April issue of Grace Magazine was printed and published; however,
upon information and belief, most of Grace Magazine’s subscribers did not receive the
March/April issue.
55.
Upon information and belief, the majority of the March/April issues of Grace
Magazine are being held at Ms. Harvey’s residence.
56.
Ms. Harvey and Mr. Boyd resigned from their respective positions at Grace
Magazine and Sisterhood Showcase, effective March 11, 2014.
57.
Despite their resignations, Defendants continue to prevent Plaintiffs’ access to
Grace Magazine’s and Sisterhood Showcase’s confidential business information, financial
records, vendor, advertiser, complete sponsor, and customer information, vendor, advertiser,
sponsor, and customer communications, vendor, advertiser, sponsor, and customer payments,
vendor, advertiser, complete sponsor, and customer lists, and other sensitive, proprietary
information of the business.
58.
Defendants are effectively holding Plaintiffs’ business hostage.
59.
Meanwhile, Ms. Harvey is still meeting with advertisers, vendors, sponsors, and
customers under the guise of representing Grace Magazine and Sisterhood Showcase.
Defendants still have access to their Grace Magazine and Sisterhood Showcase email addresses
and other modes of communications with advertisers, vendors, sponsors, and customers.
60.
Upon information and belief, Defendants are still accepting payments and
advertising copy from Grace Magazine advertisers, without forwarding the payments or
advertising copy to Plaintiffs.
61.
Upon information and belief, Defendants are still accepting payments from
Sisterhood Showcase vendors, without forwarding the payments to Plaintiffs.
62.
Plaintiffs have no access to the Stevison Group, Grace Magazine, or Sisterhood
Showcase email servers. Defendants also deleted the Grace Magazine and Sisterhood Showcase
websites. Neither website has been operating since at least March 27, 2014.
63.
Meanwhile, Defendants have also, contacted Grace Magazine’s printer and other
business partners of Grace Magazine for quotes and estimates on a new magazine that
Defendants’ are purportedly starting.
64.
Defendants have also contacted a number of Sisterhood Showcase’s sponsors and
business partners regarding possible sponsorship and participation in a new project produced by
Defendants in Memphis, Tennessee that would be similar to the Sisterhood Showcase.
COUNT I
65.
-
CONVERSION
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 64 as though fuiiy set forth herein.
66.
Defendants engaged in a pattern of illegal conduct that resulted in the wrongful
conversion of Plaintiffs’ funds and property.
10
67.
Defendants misappropriated Plaintiffs’ monetary funds to their own use and
benefit by exercising dominion over the funds in violation of Plaintiffs’ rights as true owners.
68.
In addition to money, Defendants have also converted Plaintiffs’ business and
personal property, including among other tangibles, files, artwork, a laptop computer, a
telephone system, and a 2008 Toyota Corolla automobile.
COUNT II- TORTIOUS INTERFERENCE WITH BUSINESS
69.
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 68 as though fully set forth herein.
70.
By committing the actions outlined herein, Defendants have intentionally
interfered with and disrupted Plaintiffs’ business and Plaintiffs’ business relations with its
customers, advertisers, sponsors, and vendors with the malicious intent to cause harm to
Plaintiffs.
71.
As a result of Defendants’ intentional interference with Plaintiffs’ business,
Plaintiffs have been substantially damaged.
COUNT III
72.
-
MISAPPROPRIATION OF TRADE SECRETS
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 71 as though fully set forth herein.
73.
At all times relevant to the issues raised in this Cdmplaint, Defendants were and
still are in possession of confidential trade secret information as defined by the Tennessee
Uniform Trade Secrets Act, T.C.A.
74.
§ 47-25-1701, et seq., andior Tennessee common law.
As discussed in the above allegations, by virtue of their positions as key
employees of the Stevsion Group d/b/a Grace Magazine and Sisterhood Showcase, Defendants
had access to, did access, and continue to possess and access trade secret information including,
11
but not limited to, Grace Magazine’s confidential customer, advertiser, and printer information
and contacts; Grace Magazine’s customer, advertiser, and printer needs and preferences; Grace
Magazine’s customer sales volumes; Grace Magazine’s pricing structure, revenue, and margins;
Grace Magazine’s market and customer growth strategies for past, existing, and new customers,
advertisers, and markets; Sisterhood Showcase’s confidential sponsor and vendor information
and contacts; Sisterhood Showcase’s customer, sponsor, and vendor needs and preferences;
Sisterhood Showcase’s pricing structure, revenue, and margins; and Sisterhood Showcase’s
market and customer growth strategies for past, existing, and new customers, sponsors, and
vendors.
75.
The proprietary trade secret information to which Defendants have access to has
actual and potential independent economic value to Plaintiffs and is important to the success of
Plaintiffs’ ongoing business.
76.
Defendants have access to this proprietary information solely as a result of their
employment with Plaintiffs and they continue to have knowledge of and access to such
proprietary information, notwithstanding the fact that they are no longer employed by Plaintiffs.
77.
Such information is not generally known or readily ascertainable by proper means
by other persons or entities who could obtain economic value from its disclosure or use. Instead,
the information was collected andlor developed by Plaintiffs and Ms. Stevison’s deceased
mother at substantial cost and effort over the course of many years.
78.
Plaintiffs’ trade secret information is not generally known to Plaintiffs’
competitors in the industries, and Plaintiffs have taken reasonable measures to keep this
information confidential.
12
79.
Upon information and belief, by improperly withholding information from
Plaintiffs and in light of Defendants’ actions and intentions to enter into competition with
Plaintiffs, Defendants intend to, and have already begun to, improperly use and disclose
Plaintiffs’ trade secret information.
80.
As a result of Defendants’ actual and threatened misappropriation of Plaintiffs’
trade secrets, Plaintiffs have suffered damages and will continue to suffer immediate, u-reparable,
and immeasurable harm to their business, their competitive advantage, and their goodwill in the
marketplace.
--
COUNT IV
81.
-
RELIEF UNDER THE INEVITABLE DISCLOSURE DOCTRINE
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 80 as though fuiiy set forth herein.
82.
Defendants Ms. Harvey and Mr. Boyd did nbt sign employment contracts with
Plaintiffs that contained provisions prohibiting them from directly or indirectly competing with
Plaintiffs or from soliciting Plaintiffs’ customers, vendors, sponsors, and advertisers during and
after their employment with Plaintiffs.
83.
Defendants Ms. Harvey and Mr. Boyd were employed in high-level positions at
Grace Magazine and Sisterhood Showcase and have intimate knowledge of the business’
processes, strategies, goals, and objectives.
84.
Defendants’ intentions and ongoing actions to develop a magazine competitive
with Grace Magazine and an event similar to the Sisterhood Showcase would inevitably lead
them to rely on Plaintiffs’ trade secrets and confidential business information.
13
85.
Defendants’ actions as detailed in this Complaint show the existence of a
substantial threat of impending injury to Plaintiffs, and Plaintiffs are without the protection of
non-competition or non-solicitation agreements with Defendants
86.
Upon information and belief, Defendants are engaged in activities which compete
with Plaintiffs, including using and/or disclosing Plaintiffs’ proprietary and confidential
information for the profit of another entity and taking actions to set up a new competing
magazine and showcase event
87.
In light of Defendants’ actions, under the Inevitable Disclosure Doctrine,
Defendants should be barred from competing with Plaintiffs and from soliciting Plaintiffs’
customers, advertisers, vendors, sponsors, and other business contacts for a reasonable amount of
time to be determined by the Court.
-
88.
COUNT V
-
BREACH OF FIDUCIARY DUTY
-.
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 87 as though fully set forth herein.
89.
A confidential relationship existed between Plaintiffs and Defendants, wherein
Plaintiffs placed confidence in Defendants that while acting for Plaintiffs, Defendants would act
in the utmost good faith for the company.
90.
Defendants owed a duty to their employer to act in the best interests of Plaintiffs.
91.
Defendants violated Plaintiffs’ trust and confidence by misappropriating
substantial funds and property from Plaintiffs.
92.
Defendants misappropriated Plaintiffs’ funds and property for their own benefit,
and upon information and belief, Defendants commingled Plaintiffs’ funds with those of
Defendants’ independent business, NonKarta, LLC, thereby acting against Plaintiffs’ interests.
14
93.
Defendants have further breached their duty by plotting against Plaintiffs in bad
faith for Defendants own private gain.
94.
Defendants’ breach of fiduciary duty has substantially damaged and continues to
damage Plaintiffs.
COUNT VI- BREACH OF DUTY OF LOYALTY I MISAfPROPRIATION OF
BUSINESS OPPORTUNITIES
95.
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs I through 94 as though fully set forth herein.
96.
During their employment relationship with Plaintiffs, Defendants owed a duty of
loyalty to Plaintiffs.
97.
Defendants were required to act solely for the benefit of Plaintiffs in matters
within the scope of their employment.
Defendants could not engage in conduct adverse to
Plaintiffs’ interests while employed by the company.
98.
By their actions as set forth in this Complaint, Defendants breached their duties of
loyalty to Plaintiffs by among other things, misappropriating funds and vendor/customer
payments from Plaintiffs for their own benefit, withholding Plaintiffs’ confidential business
information and trade secrets from Plaintiffs, and scheming to use Plaintiffs’ confidential
business information and trade secrets in Defendants’ emerging competitive ventures.
99.
Defendants’ breach of their duty of loyalty and misappropriation of business
opportunities has substantially damaged and continues to damage Plaintiffs.
COUNT VII- CIVIL CONSPIRACY
100.
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 99 as though fully set forth herein.
15
101.
Defendants participated in a civil conspiracy for the underlying torts of
conversion, tortious interference with business, misappropriation of trade secrets, breach of
fiduciary duty, and breach of duty of loyalty/misappropriation of corporate opportunities.
102.
Defendants committed the overt actions set forth above in furtherance of the
conspiracy and shared a common design among themselves to accomplish by concerted action an
unlawful purpose and/or acted by unlawful means to act against Plaintiffs and to maliciously and
intentionally cause harm to Plaintiffs.
103.
By their participation in the civil conspiracy against Plaintiffs, Defendants are not
only responsible for their own actions in furtherance of the conspiracy. Defendants are also
responsible for each and every action of their co-conspirator Defendants.
COUNT VIII- DEFAULT ON PROMISSORY NOTE OBLIGATION
104.
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 103 as though fully set forth herein.
105.
On or about October 22, 2013, Ms. Stevison made a loan in the amount of Sixteen
Thousand Dollars ($16,000.00) to Defendants Mr. Boyd and NonKarta, LLC.
106.
Per Ms. Harvey, NonKarta, LLC required the funds to reimburse a client escrow
account.
107.
The loan is secured by a promissory note.
The promissory note is in the
possession of Defendants.
108,
On or about March 1 1. 2014. Ms. Stevison made a demand [‘or payment of the
109.
Defendants refused to pay the obligation, and Defendants are in default on their
debt.
loan and promissory note obligation.
16
1 10.
As a result, Ms. Stevison should be awarded damages in an amount of Sixteen
Thousand Dollars ($16,000.00), plus interest, and any other amount related to the loan and
promissory note to be proven at trial.
COUNT IX
111.
-
CONSTRUCTIVE TRUST / EQUITABLE LIEN
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 110 as though fully set forth herein.
112.
Defendants wrongfully misappropriated and converted ascertainable monetary
amounts from Plaintiffs.
113.
On information and belief, Plaintiffs assert that these misappropriated funds can
be traced into specific property held by Defendants Ms. Harvey and Mr. Boyd.
114.
Defendants also wrote unauthorized checks to their litigation support company,
Defendant NonKarta, LLC.
Upon information and belief, Plaintiffs’ funds have been
commingled with NonKarta, LLC’s funds.
115.
In the interest ofjustice and fairness, Plaintiffs request that a constructive trust be
imposed on the real and personal property of Defendants forcing Defendants to convey the unfair
interests they hold in property to Plaintiffs, who are justly entitled to the property.
116.
In the alternative, Plaintiffs request that an equitable lien be imposed on the real
and personal property of Defendants to secure the value of the funds misappropriated from
Plaintiffs.
COUNT X
117.
PUNITIVE DAMAGES
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 116 as though fully set forth herein.
17
118.
In committing the underlying torts of conversion, tortious interference with
business, misappropriation of trade secrets, breach of fiduciary duty, and breach of duty of
loyalty/misappropriation of corporate opportunities, Defendants acted intentionally, maliciously,
fraudulently, and/or recklessly.
119.
In addition to compensatory damages, Plaintiffs should be awarded punitive
damages.
COUNT Xl- INJUNCTIVE RELIEF
120.
Plaintiffs reassert and incorporate by reference the allegations set forth in
Paragraphs 1 through 119 as though fully set forth herein.
121.
Plaintiffs seek a Temporary Restraining Order pursuant toTenn. R. Civ. P. 65.03
and a subsequent Preliminary Injunction pursuant to Tenn. R. Civ. P. 65.04, and in support of its
prayer for a Temporary Restraining Order, undersigned coune1 certifies that none of the
Defendants are known to be represented by counsel and that, considering the egregious nature of
the allegations herein, the evidence of Defendants’ unlawful. activities and the threat of further
misappropriations, interference, and/or the destruction of êvidehce of Defendants’ unlawful
activities, no notice should be required prior to the entry of a Temporary Restraining Order
enjoining each Defendant from further tortious activities against Plaintiffs.
122.
As a direct and proximate cause of Defendants’ actions, Plaintiffs have suffered,
are suffering, and, absent equitable relie1 will continue to suffer actual damages, including
without limitation, lost sales revenue and profits in amounts presently incalculable, and
irreparable harm, including, without limitation, loss of customers, advertisers, vendors, sponsors,
good will, and proprietary information.
18
124.
Without the requested restraining order and injunctive relief, Plaintiffs will
experience irreparable harm, because Plaintiffs will continue to interfere with Plaintiffs’
business, and further misappropriate, convert, withhold, and destroy property belonging to
Plaintiffs resulting in further damage to Plaintiffs.
WHEREFORE, PREMISES CONSIDERED, Plaintiffs, Christina Stëvison and Stevison
Group, LLC dlb/a Grace Magazine and Sisterhood Showcase, pray for the following relief
against Defendants, Toni B. Harvey, Chris Boyd, and NonKarta LLC:
A.
That process issue summoning Dçfen4ants to answer this Complaint as required
B.
That upon application, the Court inunediately issue a Temporary Restraining
by law;
Order enjoining the Defendants, and any and all persons acting in concert with them, as follows:
(1)
from accessing, transferring, moving, disposing of, altering, tampering
with, or damaging in any way any of Plaintiffs’ assets, property, accounts, business
records, files, business information or data, computers, computer systems or domains, or
any other things, tangible or otherwise, in Defendants’ possession that belong to
Plaintiffs;
(2)
from spending, using, dissipating, or depleting any funds belonging to
Plaintiffs or paid to Defendants by Plaintiffs’ customers, vendors, sponsors, advertisers,
or other partners;
(3)
from accessing or incurring any further charges or debts on any financial
account, credit card, or service belonging to or related to Plaintiffs;
(4)
from conducting any meetings, conferences, correspondence, negotiations,
or business of any kind on behalf of or on the alleged behalf of Plaintiffs;
20
(5)
from accessing, using, disclosing, copying, or otherwise utilizing any of
Plaintiffs’ confidential business information or trade secrets, including but not limited to
Plaintiffs’ customer, vendor, sponsor, and advertiser information or lists;
(6)
from directly, indirectly, or through another person or entity soliciting,
calling on, diverting, or attempting to call on any customer, vendor, advertiser, sponsor,
supplier, contractor, designer, licensee or other business relation or partner of the
Stevison Group dlb/a Grace Magazine and Sisterhood Showcase; and
(7)
from taking any other action to harm or interfere with Plaintiffs’ business
or property.
C.
That upon a subsequent hearing, the provisions set forth in the preceding prayer
“B” be incorporated into a Preliminary Injunction to renain in effect until trial of this action;
D.
That upon trial of this action, the provisions set forth in prayer “B” be
incorporated into a Permanent Injunction;
B.
That an Order be entered requiring Defendants to immediately return all of
Plaintiffs’ assets, property, records, files, business information or data, computers, computer
systems, websites, and domains, and any other things, tangible or otherwise, belonging to
Plaintiffs that are in Defendants’ possession;
F.
That Plaintiffs be granted judgment against Defendants for Conversion in an
amount not less than Three-Hundred Thousand Dollars ($300,000.00) or other amount to be
proven at trial;
G.
That Plaintiffs be granted judgment against Defendants for Tortious Interference
With Business in an amount not less than Four-Hundred and Fifty Thousand Dollars
($450,000.00) or other amount to be proven at trial;
21
(
H.
That Plaintiffs be granted judgment against Defendants for compensatory
damages under the Tennessee Uniform Trade Secrets Act, T.C.A.
§
47-25-1701, et seq., and/or
the common law of Tennessee in an amount not less than Three-Hundred Thousand Dollars
($300,000.00), plus applicable statutory, treble damages and/or common law punitive damages;
I.
That Plaintiffs be granted judgment against Defendants for Breach of Fiduciary
Duty in an amount not less than Three-Hundred Thousand Dollars ($300,000.00) or other
amount to be proven at trial;
J.
That Plaintiffs be granted judgment against Defendants for Breach of Duty of
Loyalty/Misappropriation of Business Opportunities in an amount not less than Three-Hundred
Thousand Dollars ($300,000.00) or other amount to be proven at trial;
K.
That Plaintiff Christina Stevison be granted judgment against Defendants Chris
Boyd and NonKarta, LLC for their Breach of Promissory Note Obligation in an amount not less
than Sixteen Thousand Dollars ($16,000.00), plus interest, and any other amount related to the
loan and promissory note to be proven at trial;
L.
That an Order be entered adopting the InevitableDisclosure Doctrine and barring
Defendants from competing with Plaintiffs and from soliciting Plaintiffs’ customers, advertisers,
vendors, sponsors, and other business contacts for a reasonable amount of time to be determined
by the Court;
M.
That an Order be entered imposing a constructive trust on the real and personal
property of Defendants:
N.
In the alternative, that an Order be entered imposing an equitable lien on the real
and personal property of Defendants securing the value of the funds misappropriated from
Plaintiffs;
0.
That Plaintiffs be granted judgment against Defendants for Punitive Damages in
an amount not less than One Million Dollars ($1,000,000.00) or in another amount that the Court
deems adequate;
P.
That Defendants be ordered to pay all discretionary costs incurred by Plaintiffs in
this matter;
Q.
That Defendants be ordered to pay all court costs incurred in this matter; and
R.
Any other relief that the Court deems necessary and proper.
THIS IS PLAINTIFFS’ FIRST REQUEST FOR EXTRAORDINARY RELIEF.
Respectfully submitted,
Kacey L. Faughna
# 24421)
WYATT, TA
T & COMBS, LLP
1715 Aaron Brenner Drive, Suite 800
Memphis, Tennessee 38120
Telephone: (901) 537-1000
Facsimile: (901) 527-1010
Counsel for Plaintffs, Christina Stevison
and Stevison Group, LLC d/b/a Grace
Magazine and Sisterhood Showcase
23
VERIFICATION
STATE OF TENNESSEE
)
)
)
COUNTY OF SHELBY
I, Christina Stevison, having been first duly sworn, make oath that I
am a Plaintiff in this
action and the President and Chief Operating Officer of the
Stevison Group dlb/a Grace
Magazine and Sisterhood Showcase, the other Plaintiff in this action,
and that I have read the
Verified Complaint for Injunctive Relief and Damages in this matter
. I hereby make oath that
the facts and statements contained therein are true and corr ct
to the best of my knowledge,
information and belief.
CH
STATE OF TENNESSEE
COUNTY OF SHELBY
STINA STEVISON.
)
)
)
-
31
On this
day of March, 2014, before me personally appeared Christina Stevison,
to
me known to be the person described in and who executed the
foregoing instrument, and
acknowledged that such person executed the same as such person’s
free act and deed.
-‘
NOARYP
My Commission Expires:
1
t4CI
i
i,
24
kq.
LIC
rfl4
FIAT AND TEMPORARY RESTRAINING ORDER
TO THE CLERK OF THIS COURT:
Issue notice to Defendants, Toni B. Harvey, Chris Boyd, and NonKarta, LLC, that the
application of Plaintiffs, Christina Stevison and Stevison Group, LLC d/b/a Grace Magazine and
Sisterhood Showcase, for Restraining Order as prayed for in the Complaint for Injunctive Relief
and Damages, Paragraph B of the Prayer for Relief, is granted upon said Plaintiffs’ giving bond
therefor in the amount of $ (.) U —
,
and issue notice to said Defendants, Tom B.
Harvey, Chris Boyd, and NonKarta, LLC, that Plaintiffs’ application for preliminary injunction
in the Complaint will be heard ont_______________ the
atO’ C o’clock
of
,
2014,
and that Defendants, Toni B. Harvey, Chris Boyd, and NonKarta,
LLC, are ordered to appear before this Court at that time to show cause why a preliminary
injunction should not be granted.
Accordingly, the Court temporarily restrains and enjoins Defendants Toni B. Harvey,
Chris Boyd, and NonKarta, LLC, and all persons in active concert or participation with them
who receive actual notice of this restraining order, as follows:
(1)
from accessing, transferring, moving, disposing of, altering, tampering
with, or damaging in any way any of Plaintiffs’ assets, property, accounts, business
records, files, business information or data, computer systems or domains, or any other
things, tangible or otherwise, in Defendants’ possession that belong to Plaintif’s;
(2)
from spending, using, dissipating, or depleting any funds belonging to
Plaintiffs or paid to Defendants by Plaintiffs’ customers, vendors, sponsors, advertisers,
or other partners;
(3)
from accessing or incurring any further charges or debts on any financial
account, credit card, or service belonging to or related to Plaintiffs;
(4)
from conducting any meetings, conferences, correspondence, negotiations,
or business of any kind on behalf of or on the alleged behalf of Plaintiffs;
25
(5)
from accessing, using, disclosing, copying, or otherwise utilizing any of
Plaintiffs’ confidential business information or trade secrets, including but not limited to
Plaintiffs’ customer, vendor, sponsor, and advertiser information or lists;
(6)
from directly, indirectly, or through another person or entity soliciting,
calling on, diverting, or attempting to call on any customer, vendor, advertiser, sponsor,
supplier, contractor, designer, licensee or other business relation or partner of the
Stevison Group d!bla Grace Magazine and Sisterhood Showcase; and
(7)
or property.
from taking any other action to harm or interfere with Plaintiffs’ business
tcEtJ(Y w. ARMSThONO
CHANCELLOR
A TRUE CO Y’ATTEST
e,Ierka::
9
Date:
Thne:
26
3-31
1°

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