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  • DI SELLER, INC, ET AL (RESTYLED ORD SIGNED 1/6/15) vs DAVECO INDUSTRIES, LLC, ET AL OTHER CIVIL, DECLARATORY JUDGMENT document preview
  • DI SELLER, INC, ET AL (RESTYLED ORD SIGNED 1/6/15) vs DAVECO INDUSTRIES, LLC, ET AL OTHER CIVIL, DECLARATORY JUDGMENT document preview
  • DI SELLER, INC, ET AL (RESTYLED ORD SIGNED 1/6/15) vs DAVECO INDUSTRIES, LLC, ET AL OTHER CIVIL, DECLARATORY JUDGMENT document preview
  • DI SELLER, INC, ET AL (RESTYLED ORD SIGNED 1/6/15) vs DAVECO INDUSTRIES, LLC, ET AL OTHER CIVIL, DECLARATORY JUDGMENT document preview
  • DI SELLER, INC, ET AL (RESTYLED ORD SIGNED 1/6/15) vs DAVECO INDUSTRIES, LLC, ET AL OTHER CIVIL, DECLARATORY JUDGMENT document preview
  • DI SELLER, INC, ET AL (RESTYLED ORD SIGNED 1/6/15) vs DAVECO INDUSTRIES, LLC, ET AL OTHER CIVIL, DECLARATORY JUDGMENT document preview
  • DI SELLER, INC, ET AL (RESTYLED ORD SIGNED 1/6/15) vs DAVECO INDUSTRIES, LLC, ET AL OTHER CIVIL, DECLARATORY JUDGMENT document preview
  • DI SELLER, INC, ET AL (RESTYLED ORD SIGNED 1/6/15) vs DAVECO INDUSTRIES, LLC, ET AL OTHER CIVIL, DECLARATORY JUDGMENT document preview
						
                                

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153-266829-13 EXHIBIT 7 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM CAUSE NO. 153-266829-13 THOMAS A. WILDER DISTRICT CLERK DAVECO INDUSTRIES, INC., ADA B. IN THE DISTRICT COURT HELTERBRAND, HELTERBRAND FAMILY TRUST, AND HELTERBRAND FAMILY, L.P., Plaintiffs, vs. 153rd JUDICIAL DISTRICT DI BUYER, LLC, DAVECO INDUSTRIES, LLC, ANCHOR FABRICATION, LLC f/k/a ANCHOR TARRANT COUNTY, TEXAS FABRICATION PARTNERSHIP, LTD., JOHN D. WILLBANKS III and BRENDON GRAFT, individually Defendants. DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS COMES NOW Defendants DI Buyer, LLC, DaveCo Industries, LLC, Anchor Fabrication, LLC f/k/a Anchor Fabrication Partnership, Ltd. ("Entity Defendants"), John D. Willbanks III and Brendon Graft, individually ("Individual Defendants") (together, Entity Defendants and Individual Defendants are "Defendants") and file their Second Amended Answer and Second Amended Counterclaims to Plaintiffs' Second Amended Petition and First Amended Answer to Counterclaims ("Second Amended Petition") as follows: I. General Denial 1. Defendants generally deny the allegations in Plaintiffs' Second Amended Petition. II. Specific Denial 2. Defendants specifically deny that Plaintiffs have adequately presented their written contract claims as required by Chapter 38 of the Texas Civil Practice & Remedies Code. 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM THOMAS A. WILDER DISTRICT CLERK III. Verified Denial 3. Defendants deny that Defendant Anchor Fabrication, LLC f/k/a Anchor Fabrication Partnership, Ltd. is liable in the capacity in which it is sued because it is not a party to the contracts at issue. 4. Defendant John D. Willbanks III denies that his is liable in the capacity in which he is sued because he is not a party to the contracts at issue. 5. Defendant Brendon Graft denies that his is liable in the capacity in which he is sued because he is not a party to the contracts at issue. IV. Special Exception 6. Defendants specially except to Plaintiffs' First Amended Petition because Texas does not recognize a bad faith breach of contract claim. V. Affirmative Defenses 7. Entity Defendants are not liable to Plaintiffs because of the doctrine of estoppel. 8. Entity Defendants are not liable to Plaintiffs because of the doctrine of consent. 9. Entity Defendants are not liable to Plaintiffs because Plaintiffs' prior material breaches of the Asset Purchase Agreement and Lease Agreement discharged Defendants' obligations. 10. Entity Defendants are not liable to Plaintiffs because Plaintiffs failed to meet conditions precedent. 11. Entity Defendants are not liable to Plaintiffs because of the doctrine of ratification. DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM 12 Entity Defendants are not liable to Plaintiffs because of the doctrine DfotwelaavvILDER DISTRICT CLERK hands. 13. Entity Defendants are not liable to Plaintiffs because Plaintiffs' injuries were caused by Plaintiffs' own actions. 14 Entity Defendants are not liable to Plaintiffs for the amount of damages claimed because Defendants are entitled to an offset. 15. Individual Defendants are not liable to Plaintiffs for breach of contract because they are not parties to the contracts. 16. Individual Defendants are not liable to Plaintiffs for fraud because they did not make any false statements. 17 Individual Defendants are not liable to Plaintiffs for fraud because any actions taken by them were as agents of Entity Defendants during the course of contract negotiation. 18. Individual Defendants are not liable to Plaintiffs for fraud because they owed no duty to Plaintiffs. 19. Individual Defendants are not liable to Plaintiffs for fraud because any alleged fraudulent representations are contradictory to the terms of the Lease and Asset Purchase Agreement. 20. Individual Defendants are not liable to Plaintiffs for equitable rescission or equitable reformation because they are not parties to the contracts. 21 Plaintiffs' claims for equitable rescission and equitable reformation are barred in whole or in part because there is an adequate remedy at law. 22 Plaintiffs' claims for equitable rescission and equitable reformation are barred in whole or in part because of the doctrine on unclean hands. DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46.50 AM 23 Plaintiffs' claims for equitable rescission and equitable reformation arenitetwilAirtmwER DISTRICT CLERK whole or in part because of the doctrine of estoppel. 24. Plaintiffs' claims for equitable rescission and equitable reformation are barred in whole or in part because of Plaintiffs' prior material breach. 25. Plaintiffs' claim for equitable rescission is barred in whole or in part because Plaintiffs have failed to offer to return the consideration paid by the Entity Defendants. VI. Second Amended Counterclaims Parties 26. Defendant and Counter Plaintiff DaveCo Industries, LLC is a Texas limited liability company. Defendant DI Buyer, LLC, the entity that purchased the Plaintiffs' business, is now known as DaveCo Industries, LLC. A true and correct copy of the Restated Certificate of Formation With New Amendments for DI Buyer, LLC is attached hereto as Exhibit 1. DaveCo Industries, LLC and DI Buyer, LLC will be collectively referred to as "DaveCo Industries." 27. Plaintiff and Counter Defendant DaveCo Industries, Inc. is a Texas corporation with its principal place of business in Dallas County, Texas. DaveCo Industries, Inc. is now known as D.I. Seller, Inc. 28. Plaintiff and Counter Defendant Ada B. Helterbrand is an individual residing in Dallas County, Texas. 29. Plaintiff and Counter Defendant Helterbrand Family Trust is a trust organized under the laws of the State of Texas. 30 Plaintiff and Counter Defendant Helterbrand Family, L.P. is a Texas limited partnership with its principal place of business in Dallas County, Texas. 2. Jurisdiction and Venue 31. Jurisdiction is proper in the District Court, Tarrant County because the parties DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM agreed to submit to the jurisdiction of any state or federal court in Tarrant County, TexastomAs A. WILDER DISTRICT CLERK 32 Venue is proper in the District Court, Tarrant County because the parties agreed that venue is proper in Tarrant County, Texas. 3. Facts Relevant to Counterclaims 33. Plaintiffs and DaveCo Industries are in the business of manufacturing, distributing, and selling metal fabrication parts and other materials for the military, aerospace, oil and gas, and consumer product industries. 34. Plaintiffs and Counter-Defendants DaveCo Industries, Inc., Ada B. Helterbrand, and the Helterbrand Family Trust ("Sellers") sought to sell, and DaveCo Industries sought to acquire, the assets used by Sellers in the course of their business. 35 Accordingly, on June 5, 2012, Sellers and DaveCo Industries entered into an Asset Purchase Agreement (the "APA"), whereby DaveCo Industries purchased certain o Sellers assets, including inventory and intellectual property. 36. Contemporaneously, Plaintiff Helterbrand Family L.P. ("Landlord") d DaveCo Industries entered into the Lease Agreement (the "Lease") pursuant to which DaveCo Industries leased from Landlord certain real property located in Dallas County, Texas (the "Property"). A true and correct copy of the Lease is attached hereto as Exhibit 2. 37. The Lease term was initially for one year and then automatically renewed for successive one year periods unless either party provided 30 days' notice of its intent to terminate the Lease. The Lease has not been terminated. 38. Under the Lease, DaveCo Industries has the option to purchase the Property. To exercise this option to purchase, DaveCo Industries is required to give Landlord written notice of its intent to exercise the option to purchase on or before the end of the Lease term. 39. The agreed sale price of the Property, stated in the Lease, is $1,300,000, less any DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM amount that DaveCo Industries, in its sole discretion, deducts, sets-off, and TRICIACAS icartVILDER DISTRICT CLERK indemnification claim for, as provided in Section 11 of the APA. To claim these deductions, DaveCo Industries only has to provide Seller with notice of the claimed deductions and the basis therefor. See Lease, Article XIX, Section 19.2(a). 40. Section 11(e) of the APA in turn, provides that DaveCo Industries may, in its sole discretion, deduct, set-off, and make a claim for indemnification against and from any amounts owed to Sellers, the shareholders, or Landlord under the APA and Lease. This right to deduct, set-off, and make a claim for indemnification specifically applies to the right and option to purchase the Property, as described in Section XIX of the Lease. As with the Lease, in order to claim these deductions, DaveCo Industries is only required to notify the Sellers and provide the basis for the deductions. 41. Thus, under the terms of both the APA and the Lease, Sellers and Landlord agreed to a reduction in the purchase price of the Property in an amount to be determined in the sole discretion of DaveCo Industries, so long as DaveCo Industries provides notice and the basis for said deductions. 42. Sellers and Landlord also agreed that any failure to perform would be subject to the remedy of specific performance. Indeed, the APA expressly provides that specific performance is available where any party refuses to perform. Each of the parties to this Agreement recognizes that if any party refuses to perform under the provisions of this Agreement or any other agreement or instruments provided herein, then money damages alone would not be adequate to compensate the other parties for their injury. Therefore, each party will be entitled, in addition to any remedies that may be available at law or in equity (including, without limitation, monetary damages), to obtain specific performance of the parties' obligations hereunder. APA §12(o). 43. As Plaintiffs allege, DaveCo Industries attempted to exercise its option to DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM purchase the Property on multiple occasions. For instance, in March 2013 DaveCo IndnatishusntekLDER DISTRICT CLERK with Plaintiffs and provided information concerning its deductions and in April 2013 again provided Plaintiffs with notice of their intent to purchase the Property subject to certain off-sets and deductions, and included a draft purchase agreement. 44 Subsequently, after no performance by the Plaintiffs, on June 27, 2013, DaveCo Industries again provided written notice to Landlord and Sellers of its intent to exercise its option to purchase the Property and claim deductions, as provided for in Section 11(e) of the APA and Article XIX of the Lease (the "Notice"). A copy of the Notice is attached to Plaintiffs' Petition as Exhibit A. 45. That Notice set forth, in detail, the deductions DaveCo Industries claimed. The specific deductions were for inventory that resulted in losses, intellectual property that resulted in losses, and attorneys' fees.. In total, DaveCo Industries deducted $459,514 from the $1,300,000 purchase price, resulting in a sale price of $840,486. Importantly, DaveCo Industries only deducted 70% of its actual losses in an attempt to be reasonable to Plaintiffs should any of the inventory that resulted in losses ultimately be sold. Indeed, DaveCo Industries even verbally offered to reimburse the Plaintiffs for any inventory that had resulted in a loss but subsequently sold after it purchased the Property. 46. In both the April 2013 letter and Notice, DaveCo Industries demonstrated that it was ready, willing, and able to timely perform its obligations under the APA and Lease; namely, to purchase the Property. 47. Indeed, DaveCo Industries attempted to perform under the APA and Lease by exercising its option to purchase the Property and pay the Plaintiffs the purchase price less the deductions to which DaveCo Industries is entitled. DaveCo Industries did not actually tender DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM money, however, because Plaintiffs refused to sell the Property, thus making performarrerofutiba. WILDER DISTRICT CLERK 48. Instead of complying with their contractual obligations under the APA and Lease, Sellers and Landlord have refused to sell the Property to DaveCo Industries. 49. As a result of Plaintiffs' failure to abide by the terms of the APA and Lease and sell the Property to the DaveCo Industries, DaveCo Industries has suffered and is continuing to suffer damages. First Counterclaim — Declaratory Judgment 50. DaveCo Industries seeks a declaration that under the Asset Purchase Agreement and Lease Agreement it may, in its sole discretion, deduct, set-off, and make a claim for indemnification against and from the purchase price stated in the Lease. 51. DaveCo Industries seeks a declaration that under the Asset Purchase Agreement and Lease Agreement it may, in its sole .discretion, deduct, set-off, and make a claim for indemnification against and from any rent payments that may be due to Landlord. 52. DaveCo Industries seeks a declaration that, due to the express right to specific performance in the Asset Purchase Agreement, Plaintiffs have to sell the Property at the price offered by DaveCo Industries in June 2013, which includes deductions and off-sets; or in the alternative, at the full $1.3 million Purchase Price with the amount in dispute to be placed in the registry of the Court. 5. Second Counterclaim —Specific Performance Against Landlord 5 The APA and Lease are valid and enforceable contracts. 5. The terms of the Lease are clear as to the parties' obligations. Article XIX, Section 19.1 of the Lease provides that DaveCo Industries has the option to purchase the Property and that the "sale price shall be the amount calculated as (i) One Million Three Hundred Thousand and no/100 Dollars ($1,300,000), less (ii) any amount that by notice to Seller stating DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10.46:50 AM the basis therefor, any of the [Buyers] have, in their sole discretion, deducted, set-off, atubignete. aVILDER DISTRICT CLERK claim for (as such terms are defined in the Purchase Agreement), pursuant to Section 11 of the Purchase Agreement." Lease, Article X X, Section 19.2(a) (emphasis in original). Therefore, these terms are clear as to DaveCo Industries' right to purchase the Property. 55. Moreover, the APA expressly provides for the remedy of specific performance: Each of the parties to this Agreement recognizes that if any party refuses to perform under the provisions of this Agreement or any other agreement or instruments provided herein, then money damages alone would not be adequate to compensate the other parties for their injury. Therefore, each party will be entitled, in addition to any remedies that may be available at law or in equity (including, without limitation, monetary damages), to obtain specific performance of the parties' obligations hereunder. APA §12(o). 56. DaveCo Industries has not repudiated the Lease or materially breached the Lease. 57 DaveCo Industries has performed under the Lease in all respects and is ready, willing, and able to purchase the Property at the calculated purchase price of $1.3 million less the deductions as set forth in the June 2013 Notice, which includes deductions and off-sets; or in the alternative, at the full $1.3 million Purchase Price with the amount in dispute to be placed in the registry of the Court. 58. In fact, DaveCo Industries has demonstrated that it is ready, willing, and able to perform its multiple attempts to purchase the Property, a fact that has been admitted by Plaintiffs. See Plaintiffs' Second Amended Petition and First Amended Answer to Counterclaims at ¶ 4.27 (March meeting at which DaveCo Industries sought to purchase the Property); id. at ¶ 4.32 (In April 2013 DaveCo Industries sent a letter exercising their option along with a draft purchase agreement); id. at Exhibit A (June 27, 2013 letter exercising DaveCo Industries' option to purchase the Property subject to deductions). DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM 59 DaveCo Industries is not required to formally tender performance underrileimksasevILDER DISTRICT CLERK and Asset Purchase Agreement by paying the Plaintiffs because performance would be futile. The Plaintiffs have refused to sell DaveCo Industries the Property so tendering actual performance would be idle ceremony. 60. Moreover, DaveCo Industries is not required to formally tender performance under the Lease and Asset Purchase Agreement by paying the Plaintiffs because the Plaintiffs, in refusing to sell the Property, have repudiated the contracts. 61. There is no adequate remedy at law. Indeed, the APA provides that each party to the agreement recognizes that monetary damages alone would not be sufficient for any party's failure to perform under the provisions of the APA or related agreements and expressly entitles each party to obtain specific performance. See APA at Section 12(o). Moreover, each party specifically waives the defense that there is an adequate remedy at law. 62 Accordingly, DaveCo Industries asks this Court to order that the Landlord abide by the clear terms of the Lease and be required to specifically perform its obligations thereunder by: (1) accepting the purchase price of $1.3 million less the Defendants' deductions, as stated in the June 27, 2013 Notice; or, in the alternative, (2) accepting the entire $1.3 million purchase price stated in the Lease and placing the amount in dispute in the registry of the Court. 6. Third Counterclaim — Breach of Asset Purchase Agreement Against Sellers 63. The APA is a valid and enforceable contract between Sellers and DaveCo Industries. 64 DaveCo Industries has standing to sue for a breach of contract. 65 Under the APA, DaveCo Industries is permitted to set-off, deduct, and make claims for indemnification for losses from, among other things, the option purchase price of the Property, in its sole discretion, by providing notice and the basis for the deductions. DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 10 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM 66 The terms of the Lease are clear as to the parties' obligations. SpecificaiifypAstiWeviLDER DISTRICT CLERK XIX, Section 19.1 of the Lease provides that: Landlord grants to Tenant, a right and option that shall be valid during the term of this Lease (including any renewals or extensions) (the "Purchase Option Period"), to purchase, on the terms and conditions hereinafter set forth . . . the Leased Premises . . . . To exercise the option to purchase, Tenant shall give written notice of same to Landlord on or before the expiration of the Purchase Option period. (emphasis in original). 67. The Lease further provides that the "sale price shall be the amount calculated as (i) One Million Three Hundred Thousand and no/100 Dollars ($1,300,000), less (ii) any amount that by notice to Seller stating the basis therefor, any of the [Buyers] have, in their sole discretion, deducted, set-off, and made a claim for (as such terms are defined in the Purchase Agreement), pursuant to Section 11 of the Purchase Agreement." Lease, Article XIX, Section 19.2(a) (emphasis in original). 68. DaveCo Industries performed its obligations under the APA in all respects. In particular, DaveCo Industries provided the requisite notice and reasons for the deductions claimed and sought to be applied to the purchase price of the Property, as required by the APA. 69 Sellers refused to abide by the APA. In particular, Sellers refused to accept the deductions and thus breached Section 11(e) of the APA. 70 As a result, DaveCo Industries is suffering and continues to suffer damages. 7. Fourth Counterclaim — Breach of Lease Agreement Against Landlord 71. The Lease is a valid and enforceable contract between Landlord and DaveCo Industries. 72 DaveCo Industries has standing to sue for a breach of contract. 73 Under the Lease, DaveCo Industries is permitted to set-off, deduct, and make claims for indemnification for losses from, among other things, the option purchase price of the DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 11 467376833 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM Property, in its sole discretion, by providing notice and the basis for the deductions. THOMAS A. WILDER DISTRICT CLERK 74 DaveCo Industries performed its obligations under the Lease in all respects. Specifically, DaveCo Industries provided the requisite notice and basis for the deductions claimed and sought to be applied to the purchase price of the Property, as required by the Lease. 75. Specifically, Article XIX, Section 19.1 of the Lease provides that: Landlord grants to Tenant, a right and option that shall be valid during the term of this Lease (including any renewals or extensions) (the "Purchase Option Period"), to purchase, on the terms and conditions hereinafter set forth . . . the Leased Premises . . . . To exercise the option to purchase, Tenant shall give written notice of same to Landlord on or before the expiration of the Purchase Option period. (emphasis in original). 76 The Lease further provides that the "sale price shall be the amount calculated as (i) One Million Three Hundred Thousand and no/100 Dollars ($1,300,000), less (ii) any amount that by notice to Seller stating the basis therefor, any of the [Buyers] have, in their sole discretion, deducted, set-off; and made a claim for (as such terms are defined in the Purchase Agreement), pursuant to Section 11 of the Purchase Agreement." Lease, Article XIX, Section 19.2(a) (emphasis in original). Therefore, these terms are clear as to DaveCo Industries' right to purchase the Property. 77. Landlord refused to abide by the Lease. In particular, Landlord refused to accept the deductions and thus breached Article XIX of the Lease. 78. As a result, DaveCo Industries is suffering and continues to suffer damages. 8. Damages 79. As a result of Plaintiffs' breaches of contract, DaveCo Industries has suffered, and continues to suffer, general damages, including actual damages for rental payments, in an amount to be determined at trial. DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 12 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM 80 As a result of Plaintiffs' breaches of contract, DaveCo Industries has SUSISIMOSIONILDER DISTRICT CLERK continues to suffer, special and/or consequential damages for lost profits and lost business opportunity; however, DaveCo Industries expressly and specifically reserves the right to amend and/or supplement this claim as the litigation progresses. 9. Attorneys' Fees Pursuant to the APA 81. The APA provides that the prevailing party in any litigation will be entitled to recovery attorneys' fees and court costs in addition to any other relief that may be awarded. 8 Accordingly, DaveCo Industries seeks to recover its attorneys' fees pursuant to the APA. 10 Attorneys' Fees Pursuant to the Civil Practice and Remedies Code 83. DaveCo Industries also seeks to recover attorneys' fees pursuant to Section 38.001 of the Texas Civil Practice and Remedies Code. 84. DaveCo Industries further seeks to recover attorneys' fees pursuant to Section 37.009 of the Texas Civil Practice and Remedies Code because this suit is for declaratory relief. VII. PRAYER WHEREFORE Defendants pray that, subject to their Second Amended Answer, Verified Denial, Specific Denial, Special Exception, and Affirmative Defenses, and without waiving the same, Plaintiff take nothing by reason of this suit and that Entity Defendants be awarded a judgment against Plaintiffs for the following: a. A declaration that under the Asset Purchase Agreement and Lease Agreement DaveCo Industries may, in its sole discretion, deduct, set-off, and make a claim for indemnification against and from the purchase price stated in the Lease; DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 13 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10146:50 AM A declaration that under the Asset Purchase Agreement and Lease ethibtaint/VILDER DISTRICT CLERK DaveCo Industries may, in its sole discretion, deduct, set-off, and make a claim for indemnification against and from any rents due under the Lease; c. A declaration that Plaintiffs have to sell DaveCo Industries the Property at the price offered by DaveCo Industries in the June 27, 2013 Notice; or in the alternative, at the full $1.3 million Purchase Price as stated in the APA with the amount in dispute to be placed in the registry of the Court; d. Specific performance requiring Plaintiffs to sell the Property to DaveCo Industries at the price offered in the June 27, 2013 2013 Notice; or in the alternative, at the full $1.3 million Purchase Price as stated in the APA with the amount in dispute to be placed in the registry of the Court; e. Actual damages; f. Special and/or consequential damages for lost profits and lost business opportunity; Attorneys' fees and court costs; and All other relief to which Defendants are entitled. DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 14 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM Dated: January 6, 2014 THOMAS A. WILDER DISTRICT CLERK Respectfully submitted, /s/ Lean K Capps Leane K. Capps State Bar No. 00796301 Caitlin J. Morgan State Bar No. 24074757 Polsinelli PC 2501 N. Harwood, Suite 1900 Dallas, Texas 75201 Telephone: (214) 661-5513 Facsimile: (214) 397-0033 lcapps@polsinelli.com cmorgan polsinelli.com Attorneys for Defendants CERTIFICATE OF SERVICE I hereby certify under Texas Rule of Civil Procedure Rule 21a that a true and correct copy of the foregoing Defendant's Second Amended Answer and Second Amended Counterclaims has been served on the following via certified mail return receipt requested, this 6th day of January, 2014. Mark C. Enoch, Esq. Glast, Phillips & Murray 14801 Quorum Drive, Suite 500 Dallas, Texas 75254 Phone: (972) 419-8366 Facsimile: (972) 419-8329 Attorney for Plaintiffs Daveco Industries, Inc., Ada B. Helterbrand, Helterbrand Family Trust, and Helterbrand Family, L.P. /s/ Caitlin J. Morgan Caitlin J. Morgan DEFENDANTS' SECOND AMENDED ANSWER AND SECOND AMENDED COUNTERCLAIMS 15 46737683.3 153-266829-13 153-266829-13 FILED TARRANT COUNTY 1/6/2014 10:46:50 AM THOMAS A. WILDER CAUSE NO. 153-266829-13 DISTRICT CLERK DAVECO INDUSTRIES, INC., ADA B. § IN THE DISTRICT COURT HELTERBRAND, HELTERBRAND FAMILY TRUST, AND HELTERBRAND FAMILY, L.P., Plaintiffs, § 153rd JUDICIAL DISTRICT VS. DI BUYER, LLC, DAVECO INDUSTRIES, LLC, AND ANCHOR FABRICATION PARTNERSHIP, LTD., § TARRANT COUNTY, TEXAS JOHN D. WILLBANKS III and BRENDON GRAFT, individually Defendants. VERIFICATION STATE OF TEXAS COUNTY OF , \.cc(-1 Before me, the undersigned notary, on this day personally appeared John D Willbanks the affiant, a person whose identity is known to me. After I administered an oath to affiant, affiant testified: "My name is John D Willbanks III. I am over 18 years of age, of sound mind, and capable of making this verification. I am the CEO of Anchor Fabrication, LLC, formerly Anchor