Download Ryan A. Hamilton NEVADA BAR NO. 11587 HAMILTON LAW 5125

Case 2:14-cv-01083 Document 1 Filed 07/02/14 Page 1 of 15
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Ryan A. Hamilton
NEVADA BAR NO. 11587
HAMILTON LAW
5125 S. Durango Dr., Ste. C
Las Vegas, NV 89113
(702) 818-1818
(702) 974-1139 (fax)
[email protected]
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Attorney for the plaintiffs
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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MICHAEL TINO, a Nevada Citizen; and,
DAVID TINO, a Nevada Citizen,
Case No.
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Plaintiffs,
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vs.
COMPLAINT AND JURY DEMAND
NARCONON FRESH START d/b/a RAINBOW
CANYON RETREAT, a California Corporation;
ASSOCIATION FOR BETTER LIVING AND
EDUCATION INTERNATIONAL;
NARCONON INTERNATIONAL and DOES 1100, ROE Corporations I – X, inclusive,
Defendants.
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Plaintiffs Michael Tino and David Tino (“Plaintiffs”), by and through their attorney Ryan
Hamilton of Hamilton Law, LLC, allege the following:
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I.
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PARTIES
1.
Plaintiffs are residents of, and for the purposes of determining federal diversity jurisdiction
are citizens of, Nevada.
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Defendant Narconon Fresh Start (hereafter “Fresh Start”), is, and at all times relevant to
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this Complaint was, a corporation incorporated under the laws of, and with its principal place of
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business in, the State of California. Fresh Start has been at all relevant times transacting business
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in Caliente, Lincoln County, Nevada. Fresh Start may be served with process through its
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registered agent, Mark Kirwin, 4480 Market St., Ste. 804, Ventura, CA 93003.
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3.
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in Los Angeles, California.
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4.
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time, manner, and method of Fresh Start’s operations.
Defendant Narconon International (“NI”) is a California corporation with its headquarters
NI is the parent/licensor of Defendant Narconon Fresh Start. NI exercises control over the
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NI was doing business in the State of Nevada by and through its agent and
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subsidiary/licensee Defendant Narconon Fresh Start. NI may be served with process through its
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registered agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.
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(“ABLE”). ABLE oversees the drug rehabilitation, education, and criminal justice activities of the
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Church of Scientology including, but not limited to, Fresh Start and NI.
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in Los Angeles, California.
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actively managing their daily operations, including conducting inspections of Narconon centers
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and creating, licensing, and approving their marketing materials.
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9.
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International and Narconon Fresh Start. ABLE may be served with process through its registered
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agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.
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10.
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associate, or otherwise, of Defendant DOES 1-100, inclusive, and, therefore, sues these
Fresh Start and NI are subsidiaries of the Association for Better Living and Education
Defendant ABLE is a corporation registered in the State of California with its headquarters
ABLE controls the time, manner, and method of NI’s and Fresh Start’s businesses by
ABLE transacts business in the State of Nevada by and through its agents, Narconon
Plaintiffs are unaware of the true names and capacities, whether individual, corporate,
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Defendants by fictitious names. Plaintiffs will seek leave of this Court to amend this Complaint
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when the identities of these Defendants are ascertained.
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II.
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JURISDICTION AND VENUE
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11.
This Court has subject jurisdiction pursuant to 28 U.S.C. § 1332. The amount in
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controversy exceeds $75,000.00, and there is complete diversity between the parties.
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12.
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of the events and omissions giving rise to this lawsuit occurred in this District, and the Court has
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personal jurisdiction over each of the parties as alleged throughout this Complaint.
Venue is proper in this Court pursuant to 28 U.S.C. § 1391(a) because a substantial portion
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III.
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FACTUAL ALLEGATIONS
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13.
On or about October 25, 2013, Plaintiff David Tino was looking for a rehabilitation facility
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for his son, Plaintiff Michael Tino. David found Fresh Start’s website,
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www.rainbowcanyonretreat.com and called the 800 number on the website.
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and counseling for Michael.
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Penn recommended that David admit his son to Fresh Start for treatment.
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Penn represented to David that the Fresh Start program has a 76% “success rate.” This
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claim was also made on Fresh Start’s website.
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he did not know where Narconon’s claimed success rate comes from.
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drug cravings by having Michael undergo Fresh Start’s sauna detoxifying program, the New Life
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Detoxification Program. Penn claimed that the New Life Detoxification Program has been
David spoke with Fresh Start representative Josh Penn about obtaining addiction treatment
As set forth below, even one of Narconon’s own experts in a prior litigation testified that
Penn further falsely represented to David that Fresh Start would reduce or eliminate his
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scientifically shown to flush out residual drug toxins stored in fatty tissues to thereby reduce or
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eliminate a patient’s drug cravings.
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eliminate an addict’s drug cravings.
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Start does not involve religion. In fact, the treatment program at Fresh Start is comprised entirely
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of the study and practice of Scientology.
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medical professionals. But there were no medical professionals on-site at Fresh Start. Instead, staff
Fresh Start’s website also made this false claim that its sauna program can reduce or
Penn and Fresh Start’s website represented that the treatment program offered at Fresh
Penn represented to David that at Fresh Start Michael would be under the care of licensed
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at Fresh Start consisted almost entirely of recent “graduates” of the program.
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admitted Michael to Fresh Start and paid an upfront fee of $33,000.00 for Michael’s participation
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in the program. David entered into the contract with Narconon. Attached hereto is a copy of the
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invoice as Exhibit A.
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turkey” as part of his detox. He also was withdrawing from alcohol.
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under the supervision of any licensed medical personnel.
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taken to the emergency room.
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After completing withdrawal, Michael began the program.
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Fresh Start uses the Narconon treatment program. The Narconon treatment program
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consists of eight course books written by or based on the works of L. Ron Hubbard, the founder of
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the Scientology religion.
Based on the representations from Penn and the claims on Fresh Start’s website, David
On Michael’s entry into the program, Fresh Start had him stop all medications “cold
Michael was taken to the “Treehouse” or withdrawal cabin. During this time he was not
Michael was detoxed in an unsafe manner and began having seizures requiring him to be
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The Narconon treatment program has patients unwittingly study and practice introductory
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Scientology under the premise that Scientology can treat or cure substance abuse.
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have patients perform drills known as “Training Routines” in which patients shout at ashtrays and
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engage in other bizarre behavior with no apparent connection to substance abuse counseling.
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Scientology doctrines by making clay sculptures related to those doctrines.
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Scientology ritual known as the “Purification Rundown.” The Purification Rundown is a required
The Narconon course books teach foundational Scientology concepts and doctrines. They
Further, the Narconon course books have patients demonstrate their understanding of
Narconon’s sauna program, the New Life Detoxification Program, is actually a
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ritual for practicing Scientologists as they move up “The Bridge To Total Freedom,”
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Scientology’s spiritual journey.
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substance abuse treatment.
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he would receive extensive counseling. In fact, the Narconon program contains no counseling.
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materials consist of L. Ron Hubbard “technology.”
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prescribed in the Narconon written materials. If an individual Narconon center deviates from the
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prescribed manner in which the written materials are to be applied, the Narconon center risks
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losing the use of both the Narconon materials and the Narconon trademark.
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the manner in which the “technology” is to be applied, counseling is actively discouraged.
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Fresh Start required each student to ingest increasing doses of Niacin and a “vitamin bomb.” Fresh
Fresh Start had Michael unwittingly studying and practicing Scientology in lieu of
Michael did not receive any substance abuse counseling at Fresh Start despite the promises
The written materials for the Narconon program are the same for each patient. The written
The “technology” must be administered to a patient at a Narconon facility exactly as
Because Narconon staff cannot go beyond the written Narconon materials or deviate from
Fresh Start had Michael participate in Narconon’s sauna program. On entering the sauna,
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Start increased Michael’s dosages of Niacin well beyond the recommended daily allowance while
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instructing him to sit in a sauna up to five hours per day.
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participation in the New Life Detoxification program.
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its benefits.
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Narconon of Northern Georgia in a wrongful death suit filed against those entities, testified at a
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deposition. A true and complete copy of Dr. Casal’s deposition testimony is attached hereto as
There were no medical personnel such as doctors or nurses overseeing Michael during his
Fresh Start’s New Life Detoxification Program fails to live up to Narconon’s claims about
In a prior lawsuit, Dr. Louis A. Casal, an expert retained by Narconon International and
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Exhibit B. When asked under oath about Narconon’s sauna program, he testified that there is no
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scientific basis for the notion that sweating in a sauna detoxifies a person’s body or treats
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addiction:
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Q.
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Have you looked at the Narconon literature on what Narconon contends the
benefits from the sauna are?
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A. [Dr. Casal] Yes, I have.
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Q.
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your body. True?
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A.
True.
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Q.
But there’s no scientific basis that you can point to to support that contention, is
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there, sir?
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A.
You’re correct.
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Q.
So when Narconon states that the sauna program detoxifies its students, you’re not
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And the sauna program, what Narconon contends is that in – it in fact detoxifies
aware, as a medical doctor, of any scientific basis for that contention?
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I agree.
Exhibit B, Deposition of Dr. Louis Casal, 136:21 – 137:9.
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Further, by having patients ingest extreme doses of Niacin and other vitamins while sitting
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in extreme temperatures for hours, the sauna program unnecessarily exposes students to serious
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health risks including severe dehydration. There is scientific consensus that, contrary to the
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premise of the New Life Detoxification Program, recreational drugs are not stored in fatty tissues
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for years but leave the body within a few days to a few weeks. Experts in medicine and toxicology
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have repeatedly concluded that sweating does not expel drugs from the body.
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patients sweating in the New Life Detoxification Program treats addiction, Narconon continues to
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represent to prospective patients, as they did to Plaintiffs, that research has shown the New Life
Despite their own expert’s admission that there is no scientific basis for the idea that
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Detoxification program to be effective.
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Fresh Start d/b/a Rainbow Canyon Retreat. Narconon has published no studies or other verifiable
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evidence to support their claimed success rates.
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Dr. Casal, the medical expert retained by Narconon International in another lawsuit, testified at his
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deposition that he was not convinced Narconon’s claimed success rate was true:
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Narconon claims a success rate of 76% for all Narconon centers, including Narconon
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Okay. What are you relying on – well, let me ask you this; do you believe that 76
percent success ratio is accurate?
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A. [Dr. Casal]. Mr. Harris, I’ll be honest with you, that’s a big number.
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Q.
Yeah, it’s – it’s a real big number.
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It’s a big number.
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Q.
And it’s completely inconsistent –
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I – I hope it’s true, but, I mean, I would need some convincing.
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Q.
Okay. Do you have any idea where Narconon is getting the numbers that it’s using?
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You know, in the interest of time – I just didn’t have enough time to delve deeper
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into those studies, Mr. Harris. And I – I would be happy to, but, no, I don’t have a clear
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understanding of where that 70 – 70-something number came from, no, sir.
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Exhibit B, Deposition of Dr. Louis Casal, 124:21 – 125:5; 126:1 – 7.
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nonetheless advertised a 76% success rate to Plaintiffs despite that awareness.
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Church of Scientology. For example, a Narconon document titled the “Narconon Technical Line-
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Up” provides a flow chart of a patient’s experience into and through the Narconon program. The
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document shows that when a patient finishes the Narconon program, the patient is to be “route[d]
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to the nearest Org for further services if the individual so desires.” “Org” is Scientology jargon for
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an individual church providing services for the Church of Scientology. A copy of the “Narconon
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Technical Line-Up” is attached hereto as Exhibit C.
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Narconon considers its program to be an initial step into getting on Scientology’s “Bridge to Total
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Freedom,” the key spiritual journey that practitioners of the Scientology religion undertake. See,
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e.g., “Narconon News, 1974, Volume 6, Issue 3: Narconon Is The Bridge to The Bridge,” attached
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hereto as Exhibit D.
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detoxed at Fresh Start. He is still suffering psychological effects from the bizarre and unsafe
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practices he was subjected to at Fresh Start.
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Narconon is well aware that there is no support for Narconon’s claimed success rate, but
Narconon documents indicate that the Narconon program is used to recruit patients into the
Further, Narconon considers its program to be the “Bridge to the Bridge.” That is,
Michael suffered health complications because of the unsafe manner in which he was
Michael left the program at Fresh Start without receiving any substance abuse treatment.
ALTER EGO LIABILITY
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Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further alleges as follows:
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Defendants Narconon Fresh Start and NI have all appearances of being a corporate sham
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illusion and mere instrumentalities of Defendant ABLE.
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every aspect of their business activities.
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that they are inseparable from one another.
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scheme to perpetrate a fraud. The separate corporate existences of Narconon Fresh Start, NI, and
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ABLE is a scheme to fraudulently induce patients to enroll in one of their treatment facilities and
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pay substantial funds. Further, Defendants perpetrate this scheme to recruit for and promote the
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Scientology religion.
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Fresh Start, NI, and ABLE as identical. Accordingly, each cause of action listed below is made
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against all Defendants.
ABLE heavily influences Narconon Fresh Start and NI and governs and controls nearly
There is such unity of interest and ownership among Narconon Fresh Start, NI, and ABLE
The separate corporate existences of Narconon Fresh Start, NI, and ABLE is a design or
It is interests of justice to disregard the corporate shield and treat Defendants Narconon
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FIRST CLAIM FOR RELIEF
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BREACH OF CONTRACT
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set forth in the preceding paragraphs and further allege as follows:
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exchange for consideration, to provide secular, residential drug and alcohol treatment to Michael
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Tino.
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drug and alcohol treatment; and (ii) providing Scientology in lieu of drug and alcohol treatment.
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Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation
Plaintiffs and Defendants were bound by a Contract whereby Defendant agreed, in
Defendants breached this contract by, inter alia: (i) failing to provide services constituting
Defendants’ breaches have caused Plaintiffs to suffer damages in excess of $75,000.00.
SECOND CLAIM FOR RELIEF
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FRAUD
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Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further allege as follows:
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made to the Plaintiffs: (i) that the Narconon Fresh Start program has a 76% success rate; (ii) that
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the Narconon program is secular and does not involve the study or practice of any religion; (iii)
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that Michael Tino would receive counseling related to substance abuse at Fresh Start; (iv) that
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Narconon’s sauna program, i.e, the Purification Rundown, is safe and has been scientifically
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proven as safe and effective in reducing or eliminating drug cravings; and (v) and that Michael
The following is a non-exhaustive list of false representations Defendants knowingly
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Tino would be under the care of licensed medical professionals such as doctors or nurses at Fresh
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Start.
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to David Tino on or about October 25, 2013, to induce him to send his son to Fresh Start.
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he would not have sent Michael to Fresh Start, nor paid Defendants a substantial sum of money.
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in excess of $75,000.00.
Josh Penn, acting within the scope of his employment at Fresh Start, made these statements
Had David Tino known that any of the above representations Defendants made were false,
As a proximate result of Defendants’ fraudulent conduct, Plaintiffs have suffered damages
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THIRD CLAIM FOR RELIEF
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NEGLIGENCE
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Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further allege as follows:
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manner that did not subject him to an unreasonable risk of harm. Defendants further had a duty of
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care to render reasonably safe and effective treatment to Michael Tino.
Defendants owed Plaintiffs a duty to render substance abuse treatment to Michael Tino in a
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66.
Defendants breached these duties by: (i) instructing Michael to sit in a sauna for 5 hours
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per day while ingesting extreme dosages of Niacin; (ii) failing to staff the Narconon treatment
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facility, and particularly the sauna, with any qualified medical personnel; (iii) failing to provide
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duly qualified counselors to administer treatment; and (iv) providing Michael Tino Scientology in
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lieu of substance abuse treatment.
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has suffered physical and mental injuries in excess of $75,000.00.
As a proximate result of Defendants’ breaches of the above duties, Plaintiff Michael Tino
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FOURTH CLAIM FOR RELIEF
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INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS
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Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further allege as follows:
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with reckless disregard of the probability of causing Plaintiffs severe or extreme emotional
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distress. Defendants’ extreme and outrageous conduct consisted of, inter alia: providing Michael
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Tino Scientology in lieu of the drug treatment or substance abuse counseling Defendants had
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promised to provide him.
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Tino has suffered severe and extreme emotional distress way beyond what any person in a
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civilized society should be expected to endure.
Defendants engaged in extreme and outrageous conduct with the intention of causing, or
As a proximate result of Defendants’ extreme and outrageous conduct, Plaintiff Michael
FIFTH CLAIM FOR RELIEF
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NEGLIGENT MISREPRESENTATION
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Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further allege as follows:
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Narconon Fresh Start program has more than a 76% success rate; (ii) that the Narconon program is
Defendants made the following false representation of fact to Plaintiffs: (i) that the
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secular and does not involve the study or practice of any religion; (iii) that Michael Tino would
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receive counseling related to substance abuse; (iv) that Fresh Start’s sauna program, i.e, the
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Purification Rundown, is safe and has been scientifically proven as safe and effective in reducing
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drug cravings; and (v) and that Michael Tino would be under the care of licensed medical
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professionals such as doctors or nurses at Fresh Start.
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to David Tino on or about October 25, 2013, to induce David to send his son to Fresh Start.
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statements were for Plaintiffs’ guidance in their transaction with Defendants. Plaintiffs relied on
Josh Penn, acting within the scope of his employment at Fresh Start, made these statements
Defendants made these statements to Plaintiffs in the course of their business. These
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these false statements of fact resulting in substantial pecuniary loss and other injuries.
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Defendants made these statements without exercising reasonable care.
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SIXTH CLAIM FOR RELIEF
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NEGLIGENCE PER SE
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76.
Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further allege as follows:
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license was required under NRS § 630.160. Such procedures included non-physicians instructing
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Michael Tino to ingest extreme doses of Niacin while undergoing Narconon’s sauna program.
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630.160 is intended to protect and the injury he sustained is of the type against which the statute is
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intended to protect.
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Defendants performed medical procedures on Plaintiff Michael Tino for which a medical
Plaintiff Michael Tino is in the class of persons the license requirement under NRS §
As a proximate result, Plaintiff Michael Tino sustained physical and mental injuries.
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SEVENTH CLAIM FOR RELIEF
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BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING
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80.
Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further allege as follows:
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Michael Tino contained an implied covenant of good faith and fair dealing.
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expectations by, inter alia: (1) having Michael Tino unwittingly study and practice Scientology in
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lieu of engaging in drug treatment; and (2) attempting to have Michael Tino surrender his legal
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rights in exchange for services for which Plaintiffs had already provided consideration; and (3)
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persuading David Tino to send Michael to Fresh Start with promises that Narconon’s sauna
The contract Plaintiffs entered into with Defendants for Defendants to provide treatment to
Defendants acted unfaithfully to the purpose of the contract and Plaintiffs justified
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program would reduce or eliminate his drug cravings by flushing toxins and then asking Michael
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at Fresh Start to sign an acknowledgement that the sauna program is not a medical program and
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that it provides no physical gains.
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As a consequence of Defendants’ breaches, Plaintiffs have suffered damages.
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EIGHTH CLAIM FOR RELIEF
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CIVIL CONSPIRACY
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84.
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forth in the preceding paragraphs and further allege as follows:
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indoctrinating and recruiting Plaintiff Michael Tino into Scientology under the guise of providing
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him with drug treatment.
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Plaintiff Michael Tino for which a medical license was required under NRS § 630.160.
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87.
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objectives to harm Plaintiff Michael Tino, he has been harmed.
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Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
Defendants intended to act in concert to accomplish the unlawful objectives of
Defendants further acted in concert to have non-physicians perform medical procedures on
As a proximate result of Defendants’ intentional actions in concert to accomplish unlawful
NINTH CLAIM FOR RELIEF
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FRAUD CLAIMS PURSUANT TO NRS § 41.600
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88.
Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further allege as follows:
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89.
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fraud.
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90.
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598.0915 to 598.0925, inclusive. The following is a non-exhaustive list of the deceptive trade
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practices Defendants have engaged in with respect to Plaintiffs: (i) advertising substance abuse
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treatment with the intent not to sell them as advertised by providing Scientology instead; (ii)
By reason of Defendants’ actions complained of herein, Plaintiffs are victims of consumer
Defendants have engaged in numerous deceptive trade practices as defined in NRS
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knowingly making false representations about the Narconon treatment program’s success rate, the
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personnel delivering the treatment program, and the benefits of the sauna program; (iii) using “bait
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and switch” advertising whereby Defendants advertise extensive substance abuse counseling and
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treatment and then deliver a “treatment” program wherein the patient receives only Scientology
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teaching and dangerous Scientology rituals; (iv) failing to disclose material facts to Plaintiffs
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about the services Defendants were selling including, but not limited to, the fact that Defendants’
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“treatment” program consisted of Scientology doctrines and practices and the staff at Fresh Start
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consisted of graduates of the Narconon treatment program without any other qualification; and (v)
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making assertions of scientific, clinical, or quantifiable fact without having appropriate evidence
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such as Defendants’ assertions of its 76% “success rate” for its treatment program and Defendants’
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claims that the New Life Detoxification Program can reduce or eliminate drug cravings.
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91.
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as a result, have suffered substantial pecuniary damages and other injuries.
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92.
Plaintiffs have been the victims of Defendants’ deceptive trade practices listed above and,
Defendants’ deceptive trade practices are likely to continue without court intervention.
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Plaintiffs are entitled to all available relief under NRS § 41.600 including Plaintiffs’
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attorney’s fees and costs of this action, Plaintiffs’ damages, and an injunction restraining
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Defendants from further engaging in the deceptive trade practices complained of herein.
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DEMAND FOR JURY TRIAL
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Plaintiffs demand a jury trial on all issues triable.
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PRAYER FOR RELIEF
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WHEREFORE, Plaintiffs prays for the following relief:
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A. Judgment in favor of Plaintiffs and against Defendants for damages in such amounts as
may be proven at trial;
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B. Compensation for special, general, and treble damages;
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C. Reasonable attorney’s fees and costs of suit;
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D. Interest at the statutory rate;
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E. Punitive or exemplary damages against Defendants; and
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F. Injunctive relief prohibiting Defendants from further engaging in deceptive trade practices.
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DATED this 2nd day of July, 2014.
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Respectfully submitted,
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By:_/s/Ryan A.Hamilton_
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RYAN A. HAMILTON, ESQ.
NEVADA BAR NO. 11587
HAMILTON LAW
5125 S. Durango Dr., Ste. C
Las Vegas, NV 89113
(702) 818-1818
(702) 974-1139
[email protected]
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Attorney for Plaintiffs
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