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Receivership Demand Letter

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! ATTORNEYS AND COUNSELORS AT LAW 437 West Colfax Avenue, Suite 300 Denver, Colorado 80204 USA Telephone 303-634-2244 Facsimile 720-420-9084 303-634-2244 www.robcorry.com April 10, 2018 Peter Moore Langdon J. Jorgensen Jennifer C. Alldredge ROBINSON WATERS & O’DORISIO P.C. th 1099 18 Street, Suite 2600 Denver, CO 80202-1937 [email protected] Counsel for Respondent Kiri Humphrey John Goutell 12776 Roundup Road Parker, CO 80138 [email protected] Counsel for Respondent Kiri A. Humphrey John M. Tanner Fairfield and Woods, P.C. 1801 California St., Suite 2600 Denver, CO 80202 [email protected] Counsel for Receiver Sterling Consulting Corp. R. Kirk Mueller Kyler K. Burgi th DAVIS GRAHAM & STUBBS LLP 1550 17 Street, Suite 500 Denver, CO 80202 [email protected] [email protected] Counsel for Porter Yates and Former Claimant Richard Yates Carolyn C. Witkus Duncan Griffiths Jon Eric Stuebner Griffiths Law PC 10375 Park Meadows Dr., Suite 520 Littleton, CO 80124 [email protected] [email protected] [email protected] Counsel for Petitioner Kelsey M. Yates Re: In re the Receivership Estate of MYH, Denver District Court Case No. 2017CV31274 Dear Counsel: This letter is a settlement communication pursuant to Colorado Rule of Evidence 408, intended to be confidential. This law firm represents Claimants in the above matter Miguel Lopez/ Denver 420 Rally Non-Profit Organization (“NPO”) and Santino Walter. Our clients each have valid contractual claims against entities included within the above receivership, as well as personal guarantees from Kiri Humphrey individually, who is not included within the receivership, but whom my clients cannot pursue individually until this case is over. My clients’ claims are for comparatively modest amounts, in comparison to the large claims in the multi- million dollar case. Mr. Lopez/NPO has a claim for $224,082.25 plus attorney fees pursuant to contract. Mr. Walter has a claim for $57,000.00 pursuant to an employee severance agreement. The Receiver has articulated no good faith facts or law to contradict these claims of either Lopez/NPO or Walter. In the case of Lopez/NPO, the sole surviving substantive response of the Receiver to deny his claims in its entirety is the bogus assertion of a “trademark infringement” counterclaim that is obviously now time-barred and cannot be brought due to the Denver District Court’s Order requiring counterclaims to be brought previously to today’s date. Even more damning to the Receiver’s position relating to infringement, it admits that Mr. Humphrey and the entity 420 Events, LLC allowed Mr. Lopez to use the mark, dismantling any potential infringement counterclaim ad initio. In the case of Walter, the Receiver admits Walter is owed $9,853.77, concedes therefore that the severance contract is valid, but provides zero explanation why Mr. Walter’s easily-verifiable $57,000.00 figure is somehow reduced by $47,146.23. Overall, my clients are frustrated with the slow pace and lack of substance of this litigation. In contrast to most of the other claimants and parties to this litigation, who are either individuals inheriting wealth through birth or marriage, or corporate entities that engage in ongoing business, Mr. Lopez and Mr. Walter are not independently wealthy individuals and depended on these valid, signed contracts for their daily necessities. It has become known that the Receiver is settling other claimants’ matters now, while ignoring reasonable and polite outreach to attempt to resolve my clients’ matters. Moreover, based on the Court’s comments at a recent status conference, the Court may rule on my client’s claims without a hearing or any further briefing, which gives us optimism since there is no legal nor factual reason that remains to deny either claim partially or in full. However, this optimism is tempered by the pessimism inspired by further delay, exacerbated by the Receiver’s stated strategy to file a Petition for Writ of Certiorari with the Colorado Supreme Court for the non-even-concealed purpose of delay to allow the Receiver to continue to commit the criminal offense of operating a licensed marijuana enterprise without any licensure, contrary to the holding of the Colorado Court of Appeals. My clients depend on the funds from these contracts to pay for basic life necessities. Accordingly, deprived of the standard device of discovery to press this matter to a fair and reasonable conclusion, Lopez/NPO will use the tools that are available to them. Lopez/NPO are sophisticated civil rights activists, political players, and business entrepreneurs with deep roots in the Denver community and connections to, and knowledge of how to use, mass media and social media. They are able to contact opinion leaders and media, gain interest in publishing particular stories, and then disseminate such information through viral social media. A public relations firm informally vetted by Lopez/NPO has suggested that, due to the players involved, circumstances of the divorce, and the marijuana angle, this would be a national news story. Mr. Lopez/NPO’s contract has no confidentiality provision, so he is free to speak without restriction. Mr. Walter’s contract has a confidentiality clause that lasts for two years after the agreement is terminated. The agreement was signed in July 2015. Mr. Walter’s agreement further requires maintaining “confidential” information forever, but none of the above is “confidential,” having been made known to my clients through third parties and none of it in confidence from Mr. Humphrey. As a courtesy, I am notifying you that if these claims are not formally settled by 12:00 noon on April 25, 2018, a public relations firm will compile and publicize the above information to news outlets: MAINSTREAM/NATIONAL/ BUSINESS ❏ 20/20 ❏ 420 Intel ❏ 60 minutes ❏ ABC News ❏ ABC World News Tonight ❏ America This Morning ❏ Associated Press ❏ BBC ❏ Bloomberg Business ❏ Bloomberg Television ❏ Boston Globe ❏ Bravo TV/ WWHL ❏ BroBible ❏ Business Insider ❏ Buzzfeed ❏ Cannifornian (also Mercury News) ❏ CBS Evening News ❏ CBS Morning News ❏ CBS News ❏ CBS Sunday Morning ❏ CBS This Morning ❏ Chicago Sun Times ❏ CNBC ❏ Cnet ❏ CNN ❏ Complex ❏ Cosmopolitan ❏ Culture Trip ❏ Daily Beast ❏ Dateline ❏ Digital Trends ❏ Early Today ❏ Elite Daily ❏ Engadget ❏ Esquire ❏ Face the Nation ❏ Fast Company ❏ Forbes ❏ Fortune ❏ Fox Business Network ❏ Fox News ❏ Future of Everything ❏ Good Morning America ❏ GQ ❏ HLN ❏ Houston Chronicle ❏ Huffington Post ❏ Inc. ❏ Industry Leaders Magazine ❏ International Business Times ❏ LA Magazine ❏ LA Times ❏ LA Weekly ❏ Live with Kelly & Ryan ❏ Magnetic Magazine ❏ Mashable ❏ Material World ❏ Maxim ❏ Meet the Press ❏ Men's Health ❏ Men's Journal ❏ Mic ❏ Money ❏ MSNBC ❏ National Geographic ❏ NBC News ❏ NBC Nightly News ❏ New York Daily News ❏ New York Post ❏ New York Times ❏ Newsweek ❏ NPR ❏ NPR, All Things Considered ❏ NY Daily News ❏ Observer ❏ Parade ❏ PC Magazine ❏ People ❏ Playboy ❏ PopSugar ❏ Primetime ❏ Refinery 29 ❏ Reuters ❏ Rolling Stone ❏ Salon ❏ SF Chronicle ❏ SFGate ❏ Slate ❏ Tech Radar ❏ Tech Weeds ❏ TechCrunch ❏ The Atlantic ❏ The Daily Beast ❏ The Fresh Toast ❏ The Guardian ❏ The Guardian/Politico ❏ The Motley Fool ❏ The New Yorker ❏ The Next Web ❏ The Verge ❏ The Washington Post ❏ This Week ❏ Time ❏ Today ❏ Up to the Minute ❏ Uproxx ❏ USA Today ❏ Vanity Fair ❏ Vice ❏ Vice (Video) ❏ Wall Street Journal ❏ Washington Post ❏ Weekend Today ❏ Wired ❏ World News Now ❏ XXL CANNABIS ❏ 420 Intel ❏ 420 Magazine ❏ 420 Meta ❏ 420 Radio ❏ B Real TV ❏ Baked Life ❏ Big Buds Magazine ❏ Canna Blog ❏ Canna Brief ❏ Canna Law Blog ❏ Canna Magazine ❏ Cannabis Business Times ❏ Cannabis Chronicles ❏ Cannabis Culture ❏ Cannabis Industry Today (blog) ❏ Cannabis Now ❏ Cannabis Radio ❏ CannaInsider (podcast) ❏ Cannasseur Magazine ❏ Cannifornian (also Mercury News) ❏ CBC ❏ Civilized ❏ Colorado Pot Guide ❏ Cronic Lifestyle Magazine ❏ Culture ❏ Dabs Magazine ❏ Daily Marijuana Observer ❏ Dope Magazine ❏ Dude Grows Show ❏ EntrePOTneur ❏ Extract ❏ Extract Sun Times ❏ Freedom Leaf ❏ Get High ❏ Getting High With Adam ❏ Green Market Report ❏ Hail Mary Jane Blog ❏ High Times ❏ Huffington Post (Cannabis) ❏ Leafly ❏ Living The High Life - 1100 KFNX ❏ Marigene ❏ Marijuana (weedmaps) ❏ Marijuana Business Daily ❏ Marijuana Inc. 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    November 29 - December 5, 2020 Time Sta. Sun, 11/29 Sta Mon, 11/30 Sta Tues, 12/1 Sta Wed, 12/2 Sta Thur, 12/3 Sta Fri, 12/4 Sta Sat, 12/5 Time 6am KYES CBS Sunday Morning KTUU Morning Edition KTUU Morning Edition KTUU Morning Edition KTUU Morning Edition KTUU Morning Edition KYES CBS Saturday 6am 6:30 Morning 6:30 7:00 The Today Show The Today Show The Today Show The Today Show The Today Show Lucky Dog 7:00 7:30 Face the Nation Innovation Nation 7:30 8:00 NFL Today Animal Rescue 8:00 8:30 Inside College Bball 8:30 9:00 NFL KYES Let's Make KYES Let's Make KYES Let's Make KYES Let's Make KYES Let's Make NCAA Basketball 9:00 9:30 A Deal A Deal A Deal A Deal A Deal Baylor @ Gonzaga 9:30 10:00 Price is Right Price is Right Price is Right Price is Right Price is Right 10:00 10:30 10:30 11:00 The Young & The Young & The Young & The Young & The Young & College Football Today 11:00 11:30 The Restless The Restless The Restless The Restless The Restless College Football 11:30 12pm News at 12 News at 12 News at 12 News at 12 News at 12 12pm 12:30 NFL The Bold & The Beautiful The Bold & The Beautiful The Bold & The Beautiful The Bold & The Beautiful The Bold & The Beautiful 12:30 1:00 The Talk The Talk The Talk The Talk The Talk 1:00 1:30 1:30 2:00 Dr.