Comprehensive Report on TSIG - Exhibit 5G:
Past and Ongoin Legal Proceedings of TSIG.
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Legal Proceedings:
The Registrant is not a party to any pending material legal proceeding; however; the Registrant's subsidiaries are involved in the following legal proceedings:
1. Call Management Systems, Inc. filed a lawsuit against the Registrant's subsidiaries, Visitors Services International Corp. ("VSIC") and American International Travel Agency, Inc. ("AIT"), in Chancery Court of Sevier
County, State of Tennessee on March 12, 1998, claiming approximately $60,000 for alleged breaches of the contract among the parties wherein VSIC and AIT provided travel related call management services. Following a hearing held on May 13, 1998, VSIC agreed to a injunction on an AIT "commission pool" bank account and
to supply a detailed accounting/commission reconciliation to Plaintiff within 30 days.
2. Clarity Consulting, Inc. filed a lawsuit against the Registrant's subsidiary, VSIC, in the Circuit Court of Cook County, Illinois on January 15, 1998, claiming approximately $550,000 for alleged breaches of the contract between the parties regarding the development of certain software for use by
VSIC. VSIC has filed a Motion to Strike a portion of the Complaint.
3. Valley Forge Convention & Visitors Bureau filed a lawsuit against the Registrant's subsidiary, VSIC (under its prior name, Visitors Services, Inc.), in the Court of Common Please of Montgomery County, Pennsylvania on March 17, 1998, claiming approximately $430,000 for alleged breaches of the contract
between the parties wherein VSIC provided travel related call management services. The case has been removed to United States District Court for the Eastern District of Pennsylvania, and VSIC has filed a Motion to Dismiss the Complaint.
4. Boehringer Ingelheim Pharmaceuticals, Inc. filed a lawsuit against the Registrant's subsidiary, VSIC (under its prior name, Visitors Services, Inc.), and Ray Wilson, an officer of the Registrant, in Superior Court, Judicial District of Danbury, Connecticut on December 9, 1997, claiming approximately
$96,000 for alleged amounts due for use of office space under an alleged verbal agreement. VSIC is pursuing settlement negotiations.
5. Harley-Davidson Motor Company filed a lawsuit against theRegistrant's subsidiary, VSIC, in the Circuit Court, Milwaukee County, State ofWisconsin, on February 2, 1998, seeking a Declaratory Judgment to terminate thecontract between the parties VSIC provided travel related call managementservices, and claiming unspecified damages. Following a hearing held on April 1,
1998, the Court entered a Default Judgment against VSIC. A hearing on possible damages is scheduled for June 12, 1998.
6. Camino Real Associates, Inc. and Brian D. Chipman filed a lawsuit against the Registrant's subsidiary, VSIC (under its prior name, Visitors Services, Inc.), in the District Court, El Paso County, State of Colorado, on June 20, 1997, claiming damages of approximately $100,000 for alleged payments owed under a Trade License Agreement with the Plaintiffs that was assumed by
VSIC when it acquired the assets of Global Reservation Systems, Inc. A Default Judgment was entered on January 8, 1998, and VSIC has been making payments to Plaintiffs in accordance with an informal payment schedule.
7. Subsequent to the end of the period covered by this report, Siemens Business Communication Systems, Inc. filed a lawsuit against the Registrant's subsidiary, VSIC, in the Circuit Court for Pinellas County, Florida, on April 10, 1998, claiming damages of approximately $181,000 representing an alleged
unpaid balance due on equipment sold to VSIC, and an action for replevin of the equipment. On May 19, 1998, VSIC filed a Motion to Strike a portion of the Complaint, a Motion for a More Definitive Statement, a Request for an Extension of Time to File a Counterclaim, and an Answer and Affirmative Defenses.
The Registrant and its subsidiaries are also involved in several miscellaneous legal proceedings, with total claims against the subsidiaries aggregating approximately $75,000. |
