Date: 10-07-2015

Case Style: Paul Davis Systems of Greater Lawrence and Topeka, Inc. v. Curtis Edwin Gochenour, Christine Ann Gochenour, Code Red, LLC and Code Red Roofing, LLC

Case Number: J-2014-31

Judge: Bryan C. Dixon

Court: District Court, Oklahoma County, Oklahoma

Plaintiff's Attorney: John W. Gile

Defendant's Attorney: Brad Miller, Logan Johnson, Jami Rhoads and Weston White

Description: Oklahoma City, OK - Paul Davis Systems of Greater Lawrence and Topeka, Inc. d/b/a Paul Davis Restoration of Greater Lawrence and Topeka and Goldman Enterprises of Oklahoma, Inc. d/b/a Paul Davis Restoration of Northern Oklahoma v. Curtis Edwin Gochenour, Christine Ann Gochenour, Code Red, LLC and Code Red Roofing, LLC on fraud theories claiming:

1. Plaintiffs are in the property restoration and water extraction business.
Plaintiff, Paul Davis Systems of Greater Lawrence and Topeka, Inc. d/b/a Paul Davis
Restoration of Greater Lawrence and Topeka hired Defendant, Curtis Edwin
Gochenour (Mr. Gochenour), in October 2010 to run and manage Plaintiffs’ business in
the Oklahoma County, Oklahoma, metropolitan area. Mr. Gochenour was to use all of
his best efforts as an employee in furtherance of his employment with Plaintiffs, Mr. Gochenour was to work strictly for Plaintiffs and he was not to have any other type of employment.
2. On April 13, 2012, the entity of Goldman Enterprises of Oklahoma, Inc. was granted a Certificate of Incorporation through the office of the Secretary of State, State of Oklahoma and took over the running of the predecessor corporation in the State of Oklahoma.
3. The employment relationship between the Plaintiffs and Mr. Gochenour was to continue under the same terms and conditions as when Mr. Gochenour was initially hired.
4. Mr. Gochenour is married to Christine Anne Gochenour (Mrs. Gochenour). Mrs. Gochenour was also hired as an employee of Goldman Enterprises of Oklahoma, Inc. dlb/a Paul Davis restoration of Northern Oklahoma City.
5. Mr. Gochenour, on December 21, 2012, with the knowledge and consent of Mrs. Gochenour, formed a company through the office of the Secretary of State, State of Oklahoma, known as Code Red LLC. Mr. Gochenour requested the Plaintiffs to permit the creation of Code Red LLC, but was emphatically told that said actions would not be approved nor consented to by Plaintiffs’ President, Jeffrey S. Goldman. Therefore, the incorporation of Code Red LLC was done without the knowledge, consent and approval of the Plaintiffs. Mr. Gochenour, on January 3, 2013, with the knowledge and consent of Mrs. Gochenour, formed another company through the office of the Secretary of State, State of Iowa, known as Code Red Roofing, LLC. This entity was created without the knowledge, consent and approval of the Plaintiffs. The purpose
of Code Red, LLC and Code Red Roofing, LLC was to perform the exact services of the Plaintiffs. Consequently, Code Red, LLC and Code Red Roofing, LLC acted as competitors of Plaintiffs and all the while the Defendants were employed and received compensation from the Plaintiffs. This conflict of interest and direct competition with the Plaintiffs was absolutely forbidden by the Plaintiffs and contrary to the parties’ employment agreement.
6. The Plaintiffs have uncovered evidence whereby the Defendants, individually and jointly, while working for the Plaintiffs, while using Plaintiffs’ computer programs, while using Plaintiffs’ assets and ostensibly acting as the agents, servants and employees of the Plaintiffs, billed and were paid by certain customers individually, as Code Red LLC and as Code Red Roofing LLC. The money received by the Defendants was not accounted for or deposited into the Plaintiffs’ bank accounts. Rather the money received was kept by the Defendants for their own personal gain and profit. On November 13, 2013 the Defendant, Mr. Gochenour, submitted his resignation which was immediately accepted by the Plaintiffs.
First Cause of Action
Breach of Employment Contract
7. The agreement reached between the Plaintiffs and the individual Defendants was that they were going to only work for the Plaintiffs doing property restoration and water extraction business. The Plaintiffs knew that Mrs. Gochenour’s position with them was only on a part-time basis as she had other employment, but her other employment did not in any way involve property restoration and water extraction. As a result of the creating and operating under the business of Code Red LLC and Code Red Roofing LLC, they have breached their oral contract with the Plaintiffs.
Simultaneously, the Defendants were working for themselves, Code Red LLC and Code Red Roofing, LLC and all the while representing to Plaintiffs that they were furthering Plaintiffs’ business interests. The individual Defendants were paid a salary from Plaintiffs during their employment. The Defendant, Mr. Gochenour, also hired employees which were paid by Plaintiffs, but performed services for the Defendants in furtherance of their secret enterprises for which the Plaintiffs should be reimbursed.
Wherefore, Plaintiffs pray for judgment against the Defendants for this cause of action a sum of not less than $10,000.
Second Cause of Action
Accounting
8. The Defendants received income from various sources during the employment with the Plaintiffs. The sources consisted of Plaintiffs’ customers, Code Red LLC customers and Code Red Roofing LLC customers. There was never to be an instance whereby the Defendants received money from Plaintiffs’ customers that was not to have ultimately been deposited into Plaintiffs’ banking account. There was never to be an instance whereby the Defendants would receive money individually by working for themselves or through Code Red LLC or Code Red Roofing LLC or any other entity involved in the property restoration and water extraction business. The Defendants received substantial and illegal sums of money, the exact amount of which is unknown to the Plaintiffs. The Plaintiffs have no knowledge as to where the illegal money was deposited. Therefore, the Court should conduct a hearing and then enter an Order of accounting pursuant to the case of Wheelerv. Benson-Taylor, Inc., 394 P.2d 523 (OkI. 1964), and require the Defendants to account for the money they collected and for the Defendants to identify the banking institution(s) in which the funds were deposited.
Wherefore, Plaintiffs pray for judgment against the Defendants for this cause of action a sum of not less than $10,000.
Third Cause of Action
Temporary and Permanent Iniunction
9. The Plaintiffs are fearful that the Defendants will hide, secrete and transfer the illegal money they obtained while employed by Plaintiffs. The Plaintiffs request the Court to enter a temporary and permanent Restraining Order and Injunction to prevent the Defendants from having access to the funds in any of their bank accounts until further order of the Court. The Plaintiffs state that if a temporary and permanent Injunction is not immediately entered, the Plaintiffs will suffer irreparable harm as the illegal money will be transferred out of this Court’s jurisdiction.
Wherefore, Plaintiffs pray that the Court should enter an Order for an accounting and a temporary and permanent injunction.
Fourth Cause of Action
Conversion
10. During the term of the Defendants’ employment with the Plaintiffs and while drawing a salary from the Plaintiffs, the Defendants converted corporate assets of the Plaintiffs to their own use and benefit.
11. The Plaintiffs have confirmed that Defendants have solicited Plaintiffs’ customers and have converted assets of the Plaintiffs by using Plaintiffs’ computer systems, computer programs, vehicles, and other assets while charging Plaintiffs’ customers for services in which the funds did not go into the Plaintiffs’ bank account. The funds went to the individual Defendants or Code Red LLC or Code Red Roofing
LLC.
Wherefore, Plaintiffs pray for judgment against the Defendants for this cause of action a sum of not less than $10,000.
Fifth Cause of Action
Conspiracy to Defraud and Actionable Fraud
12. Defendants developed their separate businesses of Code Red LLC and Code Red Roofing LLC while being paid a salary to work for Plaintiffs and using Plaintiffs’ assets to build their new business. The Defendants knew that they did not have authority or permission from the Plaintiffs to operate and be employed by any company doing Plaintiffs’ type of work.
13. Defendants1 while ‘on the clock” for Plaintiffs, did conspire together to defraud and in fact did defraud Plaintiffs for the express purpose of benefiting themselves, Code Red LLC and Code Red Roofing LLC.
Wherefore, Plaintiffs pray for judgment against the Defendants for this cause of action a sum of not less than $10,000.
Sixth Cause of Action
Uniust Enrichment
14. The actions of the Defendants and each of them as set forth above constitute unjust enrichment to the Defendants assets of the Plaintiffs. Defendants should be ordered to return to the Plaintiffs all of its profits derived from their illegal enterprises.
Wherefore, Plaintiffs pray for judgment against the Defendants for this cause of action a sum of not less than $10,000.
Seventh Cause of Action
Punitive Damages
As the results of Defendants acts and conduct, they should be punished by way of punitive and exemplary damages awarded to the Plaintiffs. The above acts constitute a willful and wanton disregard for their employment contract with the Plaintiffs for which they should pay punitive damages to the Plaintiffs.
Wherefore, Plaintiffs pray for judgment against the Defendants for this cause of action a sum of not less than $10,000.
WHEREFORE, Plaintiffs prays for judgments on their combined causes of actions against the Defendants in a sum not less than $10,000, a reasonable attorney fee and all costs of the action.

Outcome: Settled for an undisclosed sum and dismissed with prejudice.

Plaintiff's Experts:

Defendant's Experts:

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