LOL a for rent sign causes $750K in damages?? Too funny.
Golf Eviction Case Kicked Back to Circuit Court
10/3/02 12:08:32 PM
By Jeffrey Wood, Daily News
United States District Judge Jimm Larry Hendren on Tuesday remanded an eviction complaint by Cypress Investments Inc. vs. Golf Entertainment Inc. back to the Circuit Court of Washington County.
The original complaint filed Aug. 21 alleges that Golf, the embattled Springdale broadcasting company, has not paid rent since July 1 for the use of Cypress’ property at 1008 Clayton St. in Springdale. The delinquency at that time totaled $3,300 and $40 in late fees and was accumulating at a rate of 77 cents per day.
Executives at Golf, traded over-the-counter as GECC.OB, refused to vacate the property. Then on Sept. 9 Golf made a motion to move the case from the state court to federal court in Fayetteville. The penny stock argued that Cypress — owned by and Tom and Robin Lundstrom of Springdale — through its eviction complaint had done more than $750,000 worth of damage to the company and its shareholders.
John Dodge, Golf’s corporate counsel, wrote that federal securities law gave the U.S. District Court jurisdiction and hinted that the matter related to another federal case in which the company is suing a group of alleged stock manipulators.
Attorneys Angela Berkowitz and Thomas Kieklak of Harrington Miller Neihouse & Krug P.A. represent Cypress. The lawyers argued that Golf’s request didn’t meet the criteria for federal court. The case, they said, doesn’t relate to federal statutes or the U.S. Constitution or involve parties from two different states.
Hendren agreed and cited a March U.S. Supreme Court decision that also prevents a counterclaim from serving as the basis to get federal jurisdiction.
“Judge Hendren made the correct decision quickly,” Berkowitz said.
Hendren did, however, decline Cypress’ request that Golf be responsible for the fees and costs of getting the case remanded. The judge said the Supreme Court clarification was so recent that it didn’t warrant the award.
The case now goes back to Circuit Judge Kim Smith’s court, where a hearing date has not yet been set.
Recent Developments
Arkansas Business Publishing Group published a lengthy report regarding Golf’s questionable business dealings on Aug. 19.
Since that time, Golf’s stock, which spiked at 30 cents in January, has dipped from 3 cents per share in August to $0.004 as of Thursday. Since August, additional developments have included the following:
• On Aug. 29, the Arkansas Securities Department announced that it would launch a full investigation into Golf.
• On Sept. 10, Arkansas Securities Commissioner Michael B. Johnson ordered Golf, Genesis Trust of Bentonville and a long list of their officers to stop selling stock in Arkansas.
Included among the reasons for the rare “cease-and-desist” order Johnson gave were 15 million shares of Golf stock that were issued to Genesis under the terms of a settlement agreement on May 6. The shares were never properly registered with the ASD, nor was any exemption filed.
• On Sept. 18 Golf lost its deal to purchase television equipment and low-power TV station KVAQ-LP, Channels 20/71, in Springdale. Golf had since last December broadcast popular Spanish-language programming as an affiliate of the Hispanic Television Network in Fort Worth. The deal fell through when Golf failed to make a $300,000 payment due to the station’s owner, Christians Incorporated for Christ Inc.
Golf’s business plan was centered on being a Spanish-language TV broadcaster.
Golf also became embroiled in another lawsuit filed against a group of alleged stock manipulators, who have in turn countersued the company. |
