Keller Complaint
Case 3:14-cv-02379-JM-KSC Document 1 Filed 10/07/14 Page 1 of 20
1 Ryan A. Hamilton CA BAR NO. 291349 2 HAMILTON LAW 5125 S. Durango Dr., Ste. C 3 Las Vegas, NV 89113 (702) 818-1818 4 (702) 974-1139 (fax) [email protected] 5 Attorney for the plaintiff, 6
7 UNITED STATES DISTRICT COURT
8 SOUTHERN DISTRICT OF CALIFORNIA
9 JENNIFER HENNING, a Michigan citizen; and DEANNA TETREAU, a Michigan citizen; 10 Plaintiffs, Case No. '14CV2379 JM KSC
11 vs.
12 NARCONON FRESH START d/b/a COMPLAINT AND JURY DEMAND SUNSHINE SUMMIT LODGE; 13 ASSOCIATION FOR BETTER LIVING AND EDUCATION INTERNATIONAL; 14 NARCONON INTERNATIONAL; 15 NARCONON WESTERN UNITED STATES and DOES 1-100, ROE Corporations I – X, 16 inclusive,
17 Defendants.
18
19 Plaintiffs Deanna Tetreau, and Jennifer Henning (“Plaintiffs”), by and through counsel, 20 Ryan Hamilton of Hamilton Law, LLC, alleges the following: 21 /// 22 /// 23 /// 24 /// 25 /// 1
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1 I.
2 PARTIES
3 1. Plaintiffs Deanna Tetreau, and Jennifer Henning are residents of, and for the purposes of
4 determining diversity jurisdiction are citizens of Michigan.
5 2. Defendant Narconon Fresh Start (hereafter “Fresh Start”), is, and at all times relevant to
6 this Complaint was, a corporation incorporated under the laws of, and with its principal place of
7 business in, the State of California. Defendant has been at all relevant times transacting business in
8 Warner Springs, San Diego County, California. Fresh Start may be served with process through its
9 registered agent, Mark Kirwin, 4480 Market St., Ste. 804, Ventura, CA 93003.
10 3. Defendant Narconon International (“NI”) is a California corporation with its headquarters
11 in Los Angeles, California.
12 4. NI is the principal/licensor of Defendant Narconon Fresh Start. NI exercises control over
13 the time, manner, and method of Fresh Start’s operations.
14 5. NI was doing business in the State of California by and through its agent and
15 subsidiary/licensee Defendant Narconon Fresh Start. NI may be served with process through its
16 registered agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.
17 6. Fresh Start and NI are subsidiaries of the Association for Better Living and Education
18 (“ABLE”). ABLE oversees the drug rehabilitation, education, and criminal justice activities of the
19 Church of Scientology including, but not limited to, Fresh Start and NI.
20 7. Defendant ABLE is a corporation registered in the State of California with its headquarters
21 in Los Angeles, California.
22 8. ABLE controls the time, manner, and method of NI’s and Fresh Start’s businesses by
23 actively managing their daily operations, including conducting inspections of Narconon centers
24 and creating, licensing, and approving their marketing materials.
25
2
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1 9. ABLE transacts business in the State of California by and through its agents, Narconon
2 International and Narconon Fresh Start. ABLE may be served with process through its registered
3 agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.
4 10. Defendant Western (“Western”) is a corporation registered in the State of California with
5 its headquarters in Los Angeles, California.
6 11. Western controls the time, manner, and method of Fresh Start’s business by actively
7 managing its daily operations, and creating and approving their marketing materials.
8 12. Western transacts business in the state of California and may be served with process
9 through its registered agent, Luria K. Dion, 249 N. Brand Blvd #384, Glendale, CA 91203.
10 13. Plaintiff is unaware of the true names and capacities, whether individual, corporate,
11 associate, or otherwise, of Defendant DOES 1-100, inclusive, and, therefore, sues these
12 Defendants by fictitious names. Plaintiff will seek leave of this Court to amend this Complaint
13 when the identities of these Defendants are ascertained.
14 II.
15 JURISDICTION AND VENUE
16 14. This Court has subject jurisdiction pursuant to 28 U.S.C. § 1332. The amount in
17 controversy exceeds $75,000.00, and there is complete diversity between the parties.
18 15. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(a) because a substantial portion
19 of the events and omissions giving rise to this lawsuit occurred in this District, and the Court has
20 personal jurisdiction over each of the parties as alleged throughout this Complaint.
21 III.
22 FACTUAL ALLEGATIONS
23 16. On or about January 10, 2014, Plaintiff Deanna Tetreau was searching the Internet for an
24 alcohol rehabilitation facility for her daughter, Plaintiff Jennifer Henning.
25
3
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1 17. Deanna found a website that advertised substance dependency rehabilitation services.
2 Deanna called the number displayed on the website and left a message. Later that day, a person
3 who identified himself as Darwin and as an independent drug rehab counselor, called from
4 telephone number 866-637-5799. He directed Deanna to a representative named Josh Penn.
5 18. Josh Penn represented that Fresh Start’s program the program had been scientifically and
6 medically proven to be effective.
7 19. Penn further falsely represented to Deanna: (1) that while undergoing detox at Fresh Start,
8 Jennifer would be under the care of a doctor or nurse at all times; (2) that Fresh Start would
9 provide Jennifer with extensive drug and addiction counseling; (3) that Fresh Start staff are
10 properly trained to care for and treat persons with addiction;
11 20. Penn directed Plaintiff to Fresh Start’s website for its facility in Warner Springs,
12 California, www.sunshinesummitlodge.com. This website and Penn represented to Deanna that
13 the Fresh Start’s treatment program has a success rate between 70% and 80%.
14 21. Based on these representations, Deanna agreed to place her daughter Jennifer in the
15 Narconon program at its facility in Warner Springs, California. Deanna executed the contract
16 attached hereto as Exhibit A. The contract describes the founding of the Narconon program as
17 follows: The Narconon Program was founded in 1966 by William Benitez, 18 where it was first used in the Arizona State Prison, after being inspired by the practical betterment philosophy of author and 19 humanitarian L. Ron Hubbard in the book, The Fundamentals of Thought. After reforming himself through the use of this new and 20 innovative rehabilitation technology and establishing the Narconon program, Mr. Benitez found a new purpose in life by helping people 21 not only rehabilitate themselves from drug addiction, but more importantly, restore their personal values, integrity, and 22 responsibility. The Narconon Program is secular (NON- RELIGIOUS) in nature and the program does not include 23 participation in any religious studies of any kind.
24 22. The actual title of the L. Ron Hubbard Book the contract references is Scientology: The
25 Fundamentals of Thought – The Basic Book of Theory and Practice of Scientology for Beginners.
4
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1 23. The Church of Scientology’s website indicates that this book was “designated by L. Ron
2 Hubbard as the Book One of Scientology.” (emphasis in original) See
3 http://www.scientology.org/books/catalog/scientology-the-fundamentals-of-thought-
4 paperback.html
5 24. Deanna paid $34,000, and Jennifer was admitted to Fresh Start on or about January 16,
6 2014.
7 25. Fresh Start uses the Narconon Treatment program.
8 26. The Narconon Treatment Program consists of two components: (1) course materials
9 consisting of eight books by L. Ron Hubbard; and (2) a sauna and vitamin program known as the
10 “New Life Detoxification Program.”
11 27. In the Narconon program each patient receives the exact same written materials regardless
12 of the specific circumstances surrounding the patient’s addiction.
13 28. The Narconon written materials consist of eight books based on the works of L. Ron
14 Hubbard, the founder of the Scientology religion. These eight books contain almost no
15 information about drugs, substance abuse, or its treatment.
16 29. In place of actual addiction treatment, Fresh Start had Jennifer study Scientology.
17 30. The eight Narconon books contain only Scientology doctrines and teachings. Such
18 doctrines include, without limitation, the Eight Dynamics of Existence, the Conditions of
19 Existence, the Suppressive Person and Potential Trouble Source doctrines, the Tone Scale, the
20 Affinity Reality Communication triangle, and the Cycle-of-Action.
21 31. Almost all of the material in the Narconon books has been copied directly out of
22 Scientology scriptures.
23 32. Fresh Start had Jennifer perform drills known as “Training Routines” or TRs. These TRs
24 come straight from Scientology scripture and have no apparent connection to the treatment of
25 substance abuse.
5
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1 33. For example, in TR3, Fresh Start had Jennifer sit with another patient and repeatedly ask
2 the other patient “Do fish swim?” for hours on end.
3 34. To gauge Jennifer’s progress in the program, Fresh Start administered Scientology’s
4 personality or stress test known as the “Oxford Capacity Analysis.” This “analysis” contains 200
5 questions that a patient must answer “yes,” “no,” or “maybe.”
6 35. A typical question on the Oxford Capacity Analysis is question 3: “Do you browse through
7 railway timetables, directories, or dictionaries just for pleasure?”
8 36. Jennifer, like all patients at Fresh Start, was required to undergo the sauna program.
9 Narconon calls this program the “New Life Detoxification” program.
10 37. The “New Life Detoxification” program is identical to the Scientology ritual known as
11 “Purification Rundown,” or the “Purif.” The Purification Rundown is a required component of
12 Scientology training and is part of Scientology’s “Bridge to Total Freedom.”
13 38. Fresh Start’s rationale for the sauna program is that residue of many different types of drug
14 remain the body’s fatty tissue long after use. The drug residue is released from the fatty tissue
15 from time-to-time into the bloodstream causing the individual to crave the drug, and, ultimately,
16 relapse. Fresh Start claims that the sauna program flushes these residual drug toxins out of the
17 addict’s system thereby reducing the cravings the residue causes.
18 39. Under the New Life Detoxification program, students first exercise vigorously before
19 entering the sauna each day. On entering the sauna, Narconon requires each student to ingest
20 increasing doses of Niacin and a “vitamin bomb.” Even though Jennifer suffered from pancreatitis,
21 Fresh Start increased Jennifer’s dosages of Niacin way beyond the recommended daily allowance.
22 40. Fresh Start requires students to spend five hours per day for five weeks in a sauna at
23 temperatures between 160 and 180 degrees Fahrenheit.
24 41. There were no medical personnel overseeing Jennifer while was undergoing the sauna
25 program.
6
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1 42. Fresh Start’s claims about the benefits of its sauna program, i.e., Scientology’s Purification
2 Rundown, are false and do not withstand scientific scrutiny.
3 43. In a prior lawsuit, Dr. Louis A. Casal, an expert retained by Narconon International and
4 Narconon of Northern Georgia in a wrongful death suit filed against those entities, testified at a
5 deposition. Relevant portions of Dr. Casal’s deposition testimony are attached hereto as Exhibit
6 B. When asked under oath about the New Life Detoxification Program, he testified that there is no
7 scientific basis for the notion that sweating in a sauna detoxifies a person’s body or treats
8 addiction:
9 Q. Have you looked at the Narconon literature on what Narconon contends the
10 benefits from the sauna are?
11 A. [Dr. Casal] Yes, I have.
12 Q. And the sauna program, what Narconon contends is that in – it in fact detoxifies
13 your body. True?
14 A. True.
15 Q. But there’s no scientific basis that you can point to support that contention, is there,
16 sir?
17 A. You’re correct.
18 Q. So when Narconon states that the sauna program detoxifies its students, you’re not
19 aware, as a medical doctor, of any scientific basis for that contention?
20 A. I agree.
21 Exhibit B, Deposition of Dr. Louis Casal, 136:21 – 137:9.
22 44. Narconon International claims a success rate of 76% for all Narconon centers, including
23 Narconon Fresh Start d/b/a Sunshine Summit Lodge. Narconon has published no studies or other
24 verifiable evidence to support their claimed success rates.
25
7
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1 45. Narconon International, ABLE, and Western direct individual Narconon centers such as
2 Narconon Fresh Start d/b/a Sunshine Summit Lodge to advertise that their treatment programs
3 have a 76% success rate.
4 46. Narconon Fresh Start d/b/a Sunshine Summit Lodge does not have data supporting a 76%
5 success rate for patients at its facility.
6 47. Dr. Casal, the medical expert retained by Narconon International in another lawsuit,
7 testified atherdeposition that he was not convinced Narconon’s claimed success rate was true:
8 Q. Okay. What are you relying on – well, let me ask you this; do you believe that 76
9 percent success ratio is accurate?
10 A. [Dr. Casal]. Mr. Harris, I’ll be honest with you, that’s a big number.
11 Q. Yeah, it’s – it’s a real big number.
12 A. It’s a big number.
13 Q. And it’s completely inconsistent –
14 A. I – I hope it’s true, but, I mean, I would need some convincing.
15 …
16 Q. Okay. Do you have any idea where Narconon is getting the numbers that it’s using?
17 A. You know, in the interest of time – I just didn’t have enough time to delve deeper
18 into those studies, Mr. Harris. And I – I would be happy to, but, no, I don’t have a clear
19 understanding of where that 70 – 70-something number came from, no, sir.
20 Exhibit B, Deposition of Dr. Louis Casal, 124:21 – 125:5; 126:1 – 7.
21 48. Likewise, the Director of Legal Affairs for Narconon International, Claudia Arcabascio,
22 advised the Narconon Freedom Center in Michigan not to claim the high success rate in
23 responding to a Better Business Bureau complaint. Ms. Arcabascio advised Narconon Freedom
24 “do not say we have 70% success (we do not have scientific evidence of it).” See email from Ms.
25 Arcabascio, attached hereto as Exhibit C.
8
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1 49. Defendants are well aware that there is no basis for the claimed success rate of the
2 Narconon program. Nevertheless, Fresh Start claimed a 76% success rate for the Narconon
3 program to Plaintiff Deanna to induce her to send her daughter to Fresh Start for treatment.
4 50. Narconon documents indicate that the Narconon program is used to recruit patients into the
5 Church of Scientology. For example, a Narconon titled the “Narconon Technical Line-Up”
6 provides a flow chart of a patient’s experience into and through the Narconon program. The
7 document shows that when a patient finishes the Narconon program, the patient is to be “route[d]
8 to the nearest Org for further services if the individual so desires.” “Org” is Scientology jargon for
9 an individual church providing services for the Church of Scientology. A copy of the “Narconon
10 Technical Line-up” is attached hereto as Exhibit D.
11 51. Narconon considers its program to be the “Bridge to the Bridge.” That is, Narconon
12 considers its program to be an initial step into getting on Scientology’s “Bridge to Total
13 Freedom,” the key spiritual journey that practitioners of the Scientology religion undertake. See,
14 e.g., “Narconon News, 1974, Volume 6, Issue 3: Narconon Is The Bridge to The Bridge,” attached
15 hereto as Exhibit E. 52. Fresh Start displays tokens of gratitude it has received for introducing patients to 16 Scientology around its offices. At Fresh Start’s headquarters in Glendale, California, hangs a 17 plaque from the Church of Scientology that thanks Larry Trahant and “The Narconon Fresh Start 18 Team” for introducing patients to L. Ron Hubbard and “The Bridge.” The writing on the plaque 19 provides, in relevant part: 20 Larry and his dynamic team at Narconon Fresh Start are hereby warmly 21 thanked and highly commended for their dedication and hard work. They 22 give us tremendous back up in introducing LRH to the world and are saving lives on a daily basis. There are thousands of beings who have 23 taken their first steps on The Bridge, thanks to the compassion and efforts of this team. 24 A photo of this plaque is attached hereto as Exhibit F. 25
9
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53. Scientology’s own marketing documents show that the Narconon program is part of 1 Scientology’s plan to “clear “civilization. (To “go clear” is the ultimate spiritual goal for a 2 Scientologist, achieved after one goes up the “Bridge to Total Freedom.”) The document attached 3 hereto as Exhibit G, shows a Church of Scientology, or an “Org” as it’s known, with an arrow 4 directed at the Narconon “Jumping Man” logo. The document reads: 5 The question is not how to clear an individual, it’s how to clear a 6 civilization … by making every one of our orgs a central organization 7 responsible for every sector of Scientology activities across it’s [sic] entire geographic zone. 8 In other words, the Church of Scientology is supposed to direct Narconon to achieve Scientology’s
9 spiritual goal of “clearing” civilization.
10 54. Fresh Start is using the Narconon program to introduce Scientology and L. Ron Hubbard’s
11 “technology” to unwitting patients seeking drug rehabilitation. This is exactly as the Church of
12 Scientology directed as part of its “Social Coordination Strategy.” Scientology explicitly outlined
13 this strategy in an urgent Executive Directive from the Authorization, Verification, and Correction
14 Department of its Religious Technology Center. The Executive Directive outlining the “Social
15 Coordination Strategy” is attached hereto as Exhibit H (hereafter the “SOCO Directive”).
16 55. The SOCO Directive instructed all SOCO GROUPS, which includes Narconon, as follows:
17 YOU ARE THERE TO SELL LRH’s TECH TO THE SOCIETY AND 18 GET IT USED, AS THE TECH. You do this through a SMOOTH JOB OF PROMTIONAL ORGANIZATION – FRONT GROUPS, 19 CORPORATIONS, FIELD WORKERS, ETC. (emphases in original).
20 56. The SOCO Directive expressly directed using front groups to introduce L. Ron Hubbard’s
21 “technology,” i.e., Scientology to society.
22 57. Narconon is well aware that there is no support for Narconon’s claimed success rate, but
23 nonetheless advertised a 70% to 80% success rate to Deanna despite that awareness.
24 58. During Jennifer’s time at Fresh Start, the facility was staffed with recent patients from the
25 Narconon program who were still at risk of relapse.
10
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1 59. Despite Narconon’s representations that Jennifer would receive counseling, at no point did
2 Narconon staff ever speak to Jennifer about the specifics of her life or her alcohol use and its
3 causes. In fact, no one at Fresh Start ever spoke to Jennifer about substance abuse at all.
4 60. Jennifer received no education about substance abuse, its causes and effects, or methods to
5 deal withheraddiction. Instead, Jennifer received instruction only in Scientology.
6 61. Jennifer was unable to complete the Fresh Start program because during her time in the
7 sauna treatment she had to be taken to the emergency room due to pain she was experiencing in
8 her pancreas. Jennifer developed acute pancreatitis due to the high doses of Niacin she was
9 required to take during the sauna treatment.
10 RELATIONSHIP AMONG DEFENDANTS
11 62. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set 12 forth in the preceding paragraphs and further allege as follows: 13 63. Defendant Narconon Fresh Start has all appearances of being a corporate sham illusion and 14 mere instrumentality of Defendants NI, ABLE, and Western. 15 64. ABLE, NI and Western heavily influence Narconon Fresh Start and govern and control 16 nearly every aspect of Narconon Fresh Start’s business activities. 17 65. NI publishes operations manuals and require that individual Narconon centers such as 18 Narconon Fresh Start d/b/a Sunshine Summit Lodge abide by these manuals in their operations. 19 These operations manuals are called “Running An Effective Narconon Center” and “Opening A 20 Successful Narconon Center.” 21 66. These manuals show that NI, ABLE, and Western have the ultimate authority over 22 Narconon Fresh Start employees. Narconon Fresh Start cannot demote, transfer, or dismiss a 23 permanent staff member at Narconon Fresh Start without approval from the Senior Director of 24 Administration at NI. 25
11
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1 67. NI, ABLE and Western have the ultimate authority over the hiring of staff members at
2 Narconon Fresh Start. If a Narconon Fresh Start staff member does not meet the qualifications of a
3 staff member, the staff member may petition the Senior Director of Administration at NI to remain
4 on staff.
5 68. If a staff member at Narconon Fresh Start believes she has been given orders or denied
6 materials that make it hard or impossible for her to do her job, she may file a “Job Endangerment
7 Chit” with the Ethics Department at NI. NI and Western then investigate and work to resolve the
8 staff member’s issue.
9 69. The operations manuals require staff members at Narconon Fresh Start to report
10 misconduct and “nonoptimum conduct’ to the Quality Control Supervisor at NI. NI and Western
11 investigate misconduct at Narconon Fresh Start and may take disciplinary actions against its staff
12 members.
13 70. NI receives ten percent of the weekly gross income from Narconon Fresh Start.
14 71. NI requires Narconon Fresh Start to send it detailed weekly reports containing statistics of
15 more than 40 different metrics. NI and Western review these weekly reports and order changes at
16 Narconon Fresh Start based on increases or decreases in the statistics in the reports.
17 72. NI, Western, and ABLE require that Narconon Fresh Start receive approval on all
18 promotional materials before Fresh Start disseminates them. Further, Fresh Start must obtain
19 approval as to its Internet websites from NI, Western, and ABLE before the sites “go live.”
20 73. NI, Western and ABLE also assist in creating Narconon Fresh Start’s advertising
21 materials. NI, Western and ABLE dictate the contents of those advertising materials.
22 74. NI requires that Narconon Fresh Start maintain a “building account fund” in which weekly
23 monies from the gross income are used to purchase new premises and also as a cushion to salvage
24 the organization in dire circumstances. The “building fund” is under the control of NI.
25 75. Upon information and belief, Western receives a percentage of Fresh Start’s gross income.
12
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1 76. NI, Western and ABLE conduct “tech inspections” at Narconon Fresh Start. These
2 inspections entail NI, Western, and ABLE monitoring and correcting the manner in which
3 Narconon Fresh Start delivers the Narconon treatment program to patients at Fresh Start. NI,
4 Western, and ABLE instruct staff at Fresh Start as to the exact manner in which they are to
5 perform their services and deliver the Narconon treatment program.
6 77. NI and ABLE also publish all training materials for Narconon Fresh Start. This includes
7 seven different training materials on subjects ranging from the Narconon sauna program to
8 overseeing to delivering the Narconon treatment program.
9 78. NI, Western, and ABLE micro-manage individual Narconon centers such Fresh Start d/b/a
10 to such a large extent that they publish the exact materials authorized to be sold in an individual
11 Narconon center’s bookstore.
12 79. Further, the NI Director of Technology and Approval demands and ensures that there are
13 good photos of L. Ron Hubbard visible in every center and that materials are available to students
14 and staff as to L. Ron Hubbard’s contributions in the field of alcohol and drug rehabilitation.
15 80. NI, Western, and ABLE work with individual Narconon centers such as Fresh Start on
16 legal problems, including patient requests for refunds and complaints to the Better Business
17 Bureau. In addition, NI, Western, and ABLE work to combat negative publicity for Fresh Start.
18 81. NI, Western, and ABLE are intimately involved in the day-to-day operations of Narconon
19 Fresh Start. NI, Western, and ABLE have the final authority over all decisions at Narconon Fresh
20 Start relating to hiring and firing, delivery of services, finances, advertising, training, and general
21 operations.
22 82. NI, Western, and ABLE perpetrate this scheme to recruit for and promote the Scientology
23 religion under the guise of providing drug rehabilitation.
24 83. NI, Western, and ABLE all are principals served by their agent, Fresh Start.
25 FIRST CLAIM FOR RELIEF
13
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1 BREACH OF CONTRACT
2 84. Plaintiff incorporates by reference, as if fully set forth herein, each and every allegation set
3 forth in the preceding paragraphs and further alleges as follows:
4 85. On or about January 16, 2014, Defendants contracted with Deanna Tetreau to provide, in
5 exchange for consideration, secular, residential drug and alcohol treatment.
6 86. Defendants breached this contract by, inter alia: (i) failing to provide services constituting
7 drug and alcohol treatment; and (ii) providing Scientology in lieu of drug and alcohol treatment.
8 87. Defendants’ breaches have caused Plaintiff to suffer damages in excess of $75,000.00.
9 SECOND CLAIM FOR RELIEF
10 FRAUD
11 88. Plaintiff incorporates by reference, as if fully set forth herein, each and every allegation set
12 forth in the preceding paragraphs and further alleges as follows:
13 89. The following is a non-exhaustive list of false representations Defendants knowingly made
14 to the Plaintiffs: (i) that the Narconon Fresh Start program has a 70% to 80% success rate; (ii) that
15 the Narconon program is secular and does not involve the study or practice of any religion; (iii)
16 that Jennifer would receive counseling related to substance abuse; (iv) that Narconon’s sauna
17 program, i.e, the Purification Rundown, is safe and has been scientifically proven as effective; (v)
18 and that Jennifer would be under the supervision of doctors or nurses at all times duringherdetox.
19 90. On or about January 10, 2014, Josh Penn, a Fresh Start employee, made these statements to
20 Deanna Tetreau, to induce her to send her daughter Jennifer to Fresh Start.
21 91. Defendants also made these statements on their website, www.sunshinesummitlodge.com,
22 and Penn directed Deanna to the site. Staff made these same false representations to Jennifer
23 throughoutherstay at Narconon.
24 92. Had Deanna known that any of the above representations Defendants made were false, she
25 would not have admitted her daughter to Fresh Start.
14
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1 93. As a proximate result of Defendants’ fraudulent conduct, Plaintiffs have suffered mental
2 anguish, including intense paranoia, and pecuniary damages in excess of $75,000.00.
3 THIRD CLAIM FOR RELIEF
4 NEGLIGENT MISREPRESENTATION
5 94. Plaintiff incorporates by reference, as if fully set forth herein, each and every allegation set
6 forth in the preceding paragraphs and further alleges as follows:
7 95. On or about January 10, 2014, Josh Penn, acting on behalf of all Defendants, represented
8 to Plaintiff Deanna Tetreau: (i) that the Narconon Fresh Start program has a 70% to 80% success
9 rate; (ii) that the Narconon program is secular and does not involve the study or practice of any
10 religion; (iii) that Jennifer would receive counseling related to substance abuse; (iv) that
11 Narconon’s sauna program, i.e, the Purification Rundown, is safe and has been scientifically
12 proven as effective; (v) and that Jennifer would be under the supervision of doctors or nurses at all
13 during times duringherdetox.
14 96. Defendants made these representations of fact without using reasonable care.
15 97. Defendants knew that Deanna would rely on these representations of fact.
16 98. Defendants made these statements to guide Plaintiffs in their business transaction with
17 Defendants.
18 99. Plaintiffs relied on these false representations of fact to their detriment and, as a result,
19 Plaintiffs suffered damages in excess of $75,000.00.
20 FOURTH CLAIM FOR RELIEF
21 CLAIMS UNDER CALIFORNIA UNFAIR COMPETITION ACT,
22 Cal. Bus. & Prof. Code § 17200
23 100. Plaintiffs incorporates by reference, as if fully set forth herein, each and every allegation
24 set forth in the preceding paragraphs and further alleges as follows:
25
15
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1 101. Defendants, both on their website at www.sunshinesummitlodge.com, and through their
2 sales representative Josh Penn, advertised to Plaintiff the following false statements of fact: (i) that
3 the Fresh Start program has a 70% to 80% “success rate;” (ii) that Defendants’ sauna program, the
4 New Life Detoxification program flushes residual drug toxins from a patient’s tissues and thereby
5 reduces or eliminates drug cravings; (iii) that Fresh Start or the Narconon treatment program has
6 the highest “success rate” in the drug and alcohol rehabilitation field; and (iv) that Fresh Start
7 provides “cognitive behavior modification therapy” when, in fact, the courses and education Fresh
8 Start offers is nothing more than entry-level Scientology.
9 102. NI, Western, and ABLE control and approve Fresh Start’s advertising materials and scripts
10 that salespersons such as Josh Penn use when speaking to prospective patients.
11 103. Salespersons such as Josh Penn conceal the Narconon treatment program’s connection to
12 L. Ron Hubbard and Scientology when speaking to prospective clients such as Plaintiffs.
13 104. Defendants’ marketing materials for Narconon Fresh Start d/b/a Sunshine Summit Lodge
14 do not disclose that all rehabilitation materials used at Fresh Start are based on the works of L.
15 Ron Hubbard, the founder of Scientology. Further, the marketing materials for the New Life
16 Detoxification Program do not disclose that it is based on the work of L. Ron Hubbard and is a
17 Scientology ritual known as the “Purification Rundown.”
18 105. Relying on Defendants’ false advertisements has injured plaintiffs. Members of the public
19 are likewise likely to be deceived by Defendants’ false and misleading advertising.
20 106. Defendants’ deceptive and unlawful business practices complained of herein continue to
21 this day. Defendants repeatedly have shown that they will continue engaging in these deceptive
22 and unlawful practices until they are judicially compelled to stop.
23 107. Accordingly, Plaintiffs are entitled to all relief available under Cal. Bus. & Prof. Code §
24 17200 et seq.
25 FIFTH CLAIM FOR RELIEF
16
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1 DAMAGES FOR FEDERAL WIRETAP VIOLATIONS UNDER 18 U.S.C. § 2520
2 108. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
3 forth in the preceding paragraphs and further allege as follows:
4 109. Defendants use scripts to route person from a website that purports to be a sites for a non-
5 profit referral service for persons seeking help finding an appropriate rehabilitation facility. This
6 website is www.drug-rehabs.org.
7 110. The website www.drug-rehabs.org is owned and operated by Narconon Fresh Start. A copy
8 of the script that Defendants use to route persons from this site to Narconon Fresh Start is attached
9 hereto as Exhibit I.
10 111. Using this script, a Fresh Start staff member poses as a drug and alcohol counselor
11 working for a non-profit referral service. The staff member manipulates the caller by, inter alia,
12 purporting to make an assessment of the addict’s situation and declaring that the addict has a
13 “Category 3 Drug Addiction.” Exhibit I, p.4. In reality, the Fresh Start staff member is not
14 making an assessment, but instead is merely reading from the script that has pre-determined the
15 addict has a “Category 3 Drug Addiction.”
16 112. The Fresh Start staff member then uses the script to steer the person to want to seek
17 treatment at Fresh Start. When the caller is ready to speak to a salesperson or “registrar” at Fresh
18 Start, the caller is to be “tagged live” to the Fresh Start salesperson. Id. at p.8. This means that the
19 call is transferred from the Fresh Start staff member posing as an independent referral service to a
20 Fresh Start salesperson.
21 113. The script advises Fresh Start staff to “ALWAYS TAG LIVE, if the person does not want
22 to talk to a counselor, bring them back to the ruin, remind them they said they were willing to do
23 whatever it takes, ICE WATER DIP them with major problems you uncovered, let them know
24 what will happen if ____ doesn’t get the right help.” Id. at 8. (emphases and blank in original)
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1 114. The script then indicates that Fresh Start is recording its sales calls and using the
2 recordings to conduct further analyses: “(Typically if the person does not want to get tagged, you
3 have left out a step or not handled an objection properly, bring a copy of the reach sheet and the
4 TAPE (you should have taped it) to Qual and ask qual to listen to the tape with you to see where
5 the TECH went out or was left out).” Id. at 8.
6 115. Fresh Start, acting on behalf of all Defendants, routinely records its sales calls and saves
7 those recordings in a library of sorts for further study.
8 116. Fresh Start deliberately and purposely recorded its calls with Plaintiff Deanna Tetreau
9 without her knowledge.
10 117. During Plaintiff Deanna Tetreau’s calls with Fresh Start she provided extremely private
11 information about her family, her financial situation, and embarrassing details about Plaintiff
12 Jennifer Henning’s substance abuse. Plaintiff Deanna Tetreau had a reasonable expectation of
13 privacy in conversations with Fresh Start.
14 118. Fresh Start never asked Plaintiff Deanna Tetreau for permission to record their
15 conversations. If Fresh Start had asked, Plaintiff Deanna Tetreau would not have granted the
16 request.
17 119. Fresh Start, acting on behalf of all Defendants, violated Plaintiff’s rights under 18 U.S.C. §
18 2511 et seq. by intentionally recording her private conversations with Fresh Start salespersons
19 with Plaintiff Deanna Tetreau’s permission.
20 120. Fresh Start further violated Plaintiffs’ rights by disclosing the recording of their
21 conversations to others as a means of teaching the high pressure and deceptive sales techniques
22 Fresh Start uses.
23 121. For Defendants’ violations of 18 U.S.C. § 2511 et seq., Plaintiffs are entitled to all
24 damages recoverable under 18 U.S.C. § 2520, including, without limitation, costs and reasonable
25 attorneys’ fees, punitive damages, injunctive relief, and statutory damages.
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1 SIXTH CLAIM FOR RELIEF
2 NEGLIGENCE
3 122. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
4 forth in the preceding paragraphs and further allege as follows:
5 123. Defendants owed Plaintiffs a duty to render substance abuse treatment to Jennifer in a
6 manner that did not subject her to an unreasonable risk of harm. Defendants further had a duty of
7 care to render reasonably safe and effective treatment to her.
8 124. Defendants breached these duties by: (i) failing to staff the NFS treatment facility with any
9 qualified medical personnel; (ii) administering high doses of Niacin even though Jennifer suffered
10 from pancreatitis; (iii) failing to provide duly qualified counselors to administer treatment; and (iv)
11 providing Jennifer Scientology in lieu of substance abuse treatment.
12 125. As a proximate result of Defendants’ breaches of the above duties, Plaintiff suffered
13 physical injuries and damages in excess of this Court’s jurisdictional minimum.
14 DEMAND FOR JURY TRIAL
15 Plaintiffs demand a jury trial on all issues triable.
16 PRAYER FOR RELIEF
17 WHEREFORE, Plaintiff prays for the following relief:
18 A. Judgment in favor of Plaintiffs and against Defendants for damages in such amounts as
19 may be proven at trial;
20 B. Compensation for special, general, and treble damages;
21 C. Reasonable attorney’s fees and costs of suit;
22 D. Interest at the statutory rate;
23 E. Punitive or exemplary damages against Defendants;
24 F. All further relief, both legal and equitable, that the Court deems just and proper.
25 DATED this 7th Day of October, 2014.
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1 Respectfully submitted,
2 By:/s/ Ryan A. Hamilton 3 RYAN A. HAMILTON, ESQ. 4 CA BAR NO. 291349 HAMILTON LAW 5 5125 S. Durango Dr., Ste. C Las Vegas, NV 89113 6 (702) 818-1818 (702) 974-1139 7 [email protected]
8 Attorney for Plaintiff
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