Preview
8/5/2019 12:09 PM
Marilyn Burgess - District Clerk Harris County
Envelope No. 35689332
By: bradley darnell
Filed: 8/5/2019 12:09 PM
CAUSE NO. 2018-49711
E.D. IMAGING AND SOLUTIONS, § IN THE DISTRICT COURT
INC. §
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Plaintiff, § 234TH JUDICIAL DISTRICT
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v. § OF HARRIS COUNTY TEXAS
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COAST 2 COAST AUTO GROUP, §
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INC., COAST TO COAST §
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MOTORS, LLC, FONALITY, INC., §
COMCAST PHONE, LLC, §
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PENNINGTON AUTO GROUP, §
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LLC, MYRON MILLER, § REQUESTED FOR SUBMISSION (WITHOUT
CHRISTOPHER DONNELLEY, § HEARING) ON AUGUST 26, 2019 PURSUANT TO
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AND LARRY PENNINGTON, § THIS COURT’S PROCEDURES
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Defendants. §
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______________________________________________________________________________
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FONALITY, INC.’S NO-EVIDENCE MOTION FOR SUMMARY JUDGMENT
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AND SUPPORTING BRIEF
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TO THE HONORABLE JUDGE OF SAID COURT:
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COMES NOW Fonality, Inc. (“Fonality”) and files this Motion for No-Evidence
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Summary Judgment with Supporting Brief. Defendant would respectfully show this Court the
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following:
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I. INTRODUCTION AND BACKGROUND
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1. Plaintiff E.D. Imaging and Solutions, Inc. (“EDI”) initiated this lawsuit against
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Defendants Fonality, Coast to Coast Auto Group, Inc.1, Coast to Coast Motors, LLC, Comcast
Phone, LLC, Pennington Auto Group, LLC, Myron Miller, Christopher Donnelly, and Larry
1 Plaintiff alternatively refers to this Defendant as Coast 2 Coast Auto Group, Inc. and Coast to Coast Auto Group,
Inc.
Pennington on July 26, 2018 through the Original Petition (“Petition”).
2. The Petition seeks unspecified damages (including exemplary damages, specific
performance, declaratory judgment, restitution, attorneys’ fees, and a permanent injunction) for
breaches of contract (apparently between Coast to Coast Motors, LLC and EDI), alleged
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tortious interference (presumably with the same contract), and alleged unspecified
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misrepresentations.
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3. As to Defendant Fonality, Plaintiff contends that it had an agreement with
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Fonality to provide enterprise communications solutions and managed network services.
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(Petition at ¶ 20). Plaintiff alleges that these contracts were to assist Plaintiff in providing IT
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services for Defendants “Coast to Coast Auto Group, Inc. and/or Coast to Coast Auto Motors,
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LLC.” (Petition at ¶¶ 18 & 20). Plaintiff alleges that in April 25, 2018, Defendant Pennington
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Auto Group, LLC terminated the contract between Plaintiff EDI and Coast to Coast Motors,
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LLC and that this termination was wrongful. (Petition at ¶¶ 27-31.)
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4. Plaintiff alleges that Defendant Fonality engaged in unspecified willful, tortious
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conduct that caused the breach of the Plaintiff’s agreement with Coast to Coast. (Petition at ¶¶
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43-46). Plaintiff has no evidence of any such conduct, or of any breach of contract proximately
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caused by such conduct, or of any damages caused by this unspecified conduct.
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5. Moreover, the evidence will show that, pursuant to the plain language of
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Plaintiff’s agreement with Fonality, Plaintiff was not permitted to use Fonality’s products for
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Coast to Coast, and any such use would have been in breach of Plaintiff’s contract with
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Fonality:
Customer [EDI] agrees and represents that it is purchasing the Product for its own
internal use. Customer shall not sell, resell, transfer or assign, or make a charge
for the Product without the advance written permission of Fonality. (See attached
Contract with incorporated Terms of Service at ¶ 5.2)
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Plaintiff cannot recover for engaging in conduct that was in breach of its contract with Fonality.
6. Plaintiff also alleges that Defendant Fonality engaged in unspecified negligent
misrepresentations. (Petition at ¶¶ 38-42). Plaintiff has no evidence of any such
misrepresentations, or of any negligence of Fonality in making these unspecified
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misrepresentations, or of any justifiable reliance by Plaintiff on such misrepresentations, or how
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such reliance proximately caused EDI damages.
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7. After taking no discovery for almost a year, just after 12 am on July 23, 2019,
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Plaintiff serve a request for disclosure and request for documents upon all Defendants. None of
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these documents will support Plaintiff’s claim against Fonality.
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8. Pursuant to this Court’s rules and procedures, Fonality brings this no evidence
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motion for summary judgment, within 30 days of trial, because Plaintiff has no evidence to
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support key elements of the alleged claims against Fonality and this action should, in the
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interests of justice and judicial efficiency, be dismissed with prejudice prior to trial as to
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Fonality.
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II. ARGUMENT & AUTHORITY
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A. No-Evidence Summary Judgment Standard
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9. The proponent of a no-evidence motion for summary judgment asserts that there
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is no evidence of one or more essential elements of claims upon which the opposing party
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would have the burden of proof. See TEX. R. CIV. PROC. § 166a(i); McCombs v. Children’s
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Med. Ctr. of Dallas, 1 S.W.3d 256, 258 (Tex. App.—Texarkana 1999, pet. denied). Unlike the
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movant for traditional summary judgment, a movant for no-evidence summary judgment does
not bear the burden of establishing a right to judgment by proving each claim or defense.
Holmstrom v. Lee, 26 S.W.3d 526, 530 (Tex. App.—Austin 2000, no pet.). A no-evidence
motion for summary judgment must be granted if, after adequate time for discovery, the
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respondent produces no summary judgment evidence raising a genuine issue of material fact on
those elements. LMB, Ltd. v. Moreno, 201 S.W.3d 686, 688 (Tex. 2006) (citing Sudan v.
Sudan, 199 S.W.3d 291 (Tex. 2006). Stated another way, a no-evidence summary judgment
motion is properly granted if the nonmovant fails to produce more than a scintilla of probative
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evidence raising a genuine issue of fact as to an essential element of a claim on which the
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nonmovant would have the burden of proof at trial. See TEX. R. CIV. PROC. § 166a(i);
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Holmstrom, 26 S.W.3d at 530.
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B. Discovery Statement
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10. Plaintiff has had adequate time to take discovery in this case and develop its
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theories of liability. This lawsuit was filed on or about July 26, 2018, over a year ago, and trial
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is set for September 23, 2019.
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11. After taking no discovery for almost a year, just after 12 am on July 23, 2019,
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Plaintiff serve a request for disclosure and request for documents upon all Defendants. None of
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these documents will support Plaintiff’s claim against Fonality.
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12. Pursuant to this Court’s procedures, Defendant has set this motion for
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submission, not more than thirty days prior to trial.
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13. Plaintiff has no evidence to support key elements of its claims against Fonality.
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C. No Evidence of Any Element of Negligent Misrepresentation of Any “Fact.”
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14. To assert a claim against Fonality for negligent misrepresentation, EDI must
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prove that “(1) the defendant made a representation in the course of the defendant's business, or
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in a transaction in which the defendant had a pecuniary interest; (2) the defendant supplied
‘false information’ for the guidance of others in their business; (3) the defendant did not
exercise reasonable care or competence in obtaining or communicating the information; and (4)
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the plaintiff suffered pecuniary loss by justifiably relying on the representation.” Lindsey
Constr., Inc. v. AutoNation Fin. Servs., LLC, 541 S.W.3d 355, 366 (Tex. App. - Houston 2017)
(citing Federal Land Bank Ass'n of Tyler v. Sloane, 825 S.W.2d 439, 442 (Tex. 1991).)
15. Plaintiff does not have probative evidence that: (a) Fonality supplied “false
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information” to EDI; (b) Fonality failed to use reasonable care or competence in communicating
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this allegedly “false information”; or (c) EDI suffered a financial loss by justifiably relying
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upon the representation.
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16. EDI’s only allegation of any “representation” at any time by Fonality is that,
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upon receipt of contractually owed payments from EDI, Fonality said “thank you” to their
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apparent EDI contact, Defendant Myron Miller. (Petition at ¶ 23.) According to EDI, Miller
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was not a management level employee with authority to bind EDI. But even if EDI could prove
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that Fonality knew Miller’s role prior to thanking him, it is unclear how Fonality “thanking”
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Miller was “false,” or how EDI relied upon this “thank you” to its detriment (when EDI
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supposedly knew Miller was not the actual payor), or how EDI was “harmed” by Fonality
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“thanking” an apparent agent of EDI.
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17. Apart from this allegation, Plaintiff has not alleged any representations of any
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kind (“false” or not) by Fonality. Less than 30 days before trial, Plaintiff has no probative
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evidence that (a) Fonality supplied “false” information to EDI; (b) Fonality failed to use
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reasonable care or competence in conveying information to EDI; (c) EDI relied upon
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information supplied by Fonality; (c) EDI justifiably relied upon the information; and/or (d)
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EDI was harmed as a result of this justifiable reliance. Summary judgment should be granted to
Fonality on the claim for negligent misrepresentation.
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D. No Evidence of Any Tortious Interference with Existing Contracts.
18. To succeed on a tortious interference with existing contracts claim a plaintiff
must prove: (1) the plaintiff had a valid contract subject to interference; (2) willful and
intentional interference by the defendant; (3) the defendant’s interference proximately caused
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the plaintiff’s injury; and (4) the plaintiff incurred actual damage or loss. See Prudential Ins.
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Co. of Am. v. Financial Review Servs., Inc., 29 S.W.3d 74, 77 (Tex. 2000).
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19. Although Fonality has not seen such evidence, Fonality assumes EDI will be able
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to prove it had a contract with either Coast to Coast Auto Group, Inc. or Coast to Coast Motors,
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LLC (Plaintiff fails to specify which). However, Plaintiff has no probative evidence that: (a)
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Fonality willfully and intentionally interfered with that contract; or (b) Fonality’s non-existent
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interference with that contract proximately caused Plaintiff’s injury; or (c) Plaintiff incurred
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actual damage or loss as a result of the termination of contract.
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20. Further, as also discussed above, the evidence will show that, pursuant to the
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plain language of Plaintiff’s agreement with Fonality, Plaintiff was not permitted to use
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Fonality’s products for Coast to Coast, and that any such use would have been in breach of
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Plaintiff’s contract with Fonality:
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Customer [EDI] agrees and represents that it is purchasing the Product for its own
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internal use. Customer shall not sell, resell, transfer or assign, or make a charge
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for the Product without the advance written permission of Fonality. (See attached
Contract with incorporated Terms of Service at ¶ 5.2)
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Plaintiff cannot recover for engaging in conduct that was in breach of the contract.
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21. Because Plaintiff has no evidence to support its tortious interference with
existing contracts, summary judgment should be granted to Defendant Fonality.
III. CONCLUSION
22. WHEREFORE, PREMISES CONSIDERED, Defendant Fonality prays that
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upon notice and submission hereof that Defendant’s No-Evidence Motion for Summary
Judgment be granted, that Plaintiff’s claims for negligent misrepresentation and tortious
interference with existing contracts be dismissed with prejudice, that Defendant Fonality, Inc.
thus be dismissed from this case with prejudice, and for all other and further relief to which
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Defendant may be justly entitled at law or in equity.
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Dated: August 5, 2019
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Respectfully Submitted,
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DENTONS US LLP
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/s/Leanna M. Anderson ________________
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Leanna M. Anderson
State Bar No. 24085833
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2000 McKinney Avenue, Suite 1900
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Dallas, TX 75201
Telephone: (214) 259-0900
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Facsimile: (214) 259-0910
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Email: leanna.anderson@dentons.com
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ATTORNEYS FOR DEFENDANT
FONALITY, INC.
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CERTIFICATE OF SERVICE
I hereby certify on August 5, 2019, Fonality, Inc.’s No-Evidence Motion for Summary
Judgment was served by email and electronic service to all counsel of record as follows:
Lucy Nkechinyelumka “Kechi” Chukwurah
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Durham Center
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5151 Katy Freeway, Suite 306
Houston, Texas 7707
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lucy@chukwurahlawgroup.com
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Zeke O. Fortenberry
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Fortenberry Firm PLLC
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17304 Preston Road, Suite 800
Dallas, TX 75252
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zeke@fortenberryfirm.com
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James Phillips
Baker Hostetler Bu
811 Main Street, Suite 1100
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Houston, TX 77002
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jphillips@bankerlaw.com
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adlewis@bakerlaw.com
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/s/Leanna M. Anderson
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Leanna M. Anderson
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