Free Motion to Strike - District Court of Colorado - Colorado

,,

Case 1:01-cv-02315-LTB-CBS

Document 490-2

Filed 10/14/2005

Page 1 of 11

RECEIVED
. SEP 2 1
2005

WHEELER TRIGG KENNEDY

IN THE UNITED STATES DISTRICT C~URT FOR THE DISTRICT OF COLORADO

Civil Action No. OIR

23 I 5 (CBS)

In re:

HARVEY SENDER, TRUSTEE OF TIIE LIFEBLOOD BIOMEDICAL, ! NC. L IQUIDA TION

TRUST and
HARVEY SENDER, TRUSTEE OF THE LIFEBLOOD BIOMEDIGAL I NC.O PTTRUST
Plaintiffs

WILLIAM JEFFREY MANN, an individual; FREEBORN & PETERS, an Illinois partnership; MICHAEL SABIAN an individual; DARWIN J. POWFAIR, a n individual; JAMES RL EONE, P. A., a Florida professional association; and JAMES RL EONE, 8 n individual
Defendants.

PLAINTIFF'S SUPPLEMENTAL EXPERT DISCLOSURE

Plaintiff, Harvey- Sender, Trustee of the Lifeblood Biomedical Liquidation and OptTrusts , by his counsel and- pursuant to Fed. R. CJv. P. 26(e), respectfully supplements his expert

disclosures with the second supplemental report, ~'ttached hereto as ExJIibit A.

EXHIBIT
. Doc#. 20607SS\J

Case 1:01-cv-02315-LTB-CBS

Document 490-2

Filed 10/14/2005

Page 2 of 11

" Dated: September 20, 2905.

John C. Smiley, 16210
Ann H. Cisneros, #32547 Theodore J. Hartl , #32409 LINDQUIST & VENNUM P. LL.P. 600 Seventeenth Street S uite 1800 South Denver, CO 80202-~441 Telephone: (303) 573- 5900 Facsimile:" (303) 573. 1956

Counsel for Harvey Sender, Trustee of the Lifeblood Biomedical l nc.L iquidation Trust and Trustee of the Lifeblood Biomedical,! DC. Opt-

Trust

Doell 2060755\1

Case 1:01-cv-02315-LTB-CBS

Document 490-2

Filed 10/14/2005

Page 3 of 11

CERTIFICATE OF SERVICE
I hereby certify that on the 20th day PLAINTIFF" S SUPPLEMENTAL EXPERT DISCLOSURE
po~tage prepaid ,

of September; 2005 , a copy of the foregoing

was deposited in the U.

Mail

addressed to the following:

James R. Leone , Esq. James R. Leone , P.
318"S Oak Lane

Edgewater, FL 32132
William Jeffi"ey Mann 419 Abbeyridge Ct. Ocoee, FL 34761
Michael 1. O' Donnell, Esq.

Carolyn J. Fairless, Esq.
Julie Walker, Esq.

Wheeler, Trigg & Kennedy 1801 California StJ:eet, Suite 3600 Denver, CO 80202

DoC# 2060755\1

Case 1:01-cv-02315-LTB-CBS

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Filed 10/14/2005

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EXHIBIT "

).
,.

....:

Case 1:01-cv-02315-LTB-CBS

Document 490-2

Filed 10/14/2005

Page 5 of 11

HEIN&ASSOCIATES LiP
AccoUntants and Advisors

CeaifiedPUbliC
September 15

2005

Harvey Send~r

, Trustee

LifeBlood Biomedical , Inc. Liquidation Trust LifeBlood Biomedical , Inc. Opt-In Trust Sender & Was sennan , P. 1999 Broadway, Suite 2305 Denver CO 80202 .

Re: Harv~y ~ender, Trustee v. William Jeffrey Mann, et aI. our October 31, 2003 report
Dear Mr.. Sender:

Second suppl~ment .

On October 31 , 2003, we issued our report in the above-referenced matter. On May 2005 , we issued a first supplem,ent to our October 31 2003 report. Since the" date of our. first supplemental report, we have become aware that certain additional promissory note creditors el~ted to assign their individual litigation claims against the Defendants "to, and became beneficiaries of, the LifeBlood Biom~icaI , Inc. OptIn Trust ("Opt-In Trust"

The purpose oftbis second supplemental report is to update " our damages calculations
" to reflect the additional beneficiaries of the Opt-In Trust. These updates may cause some rehited: changes to our October 31, 2003 and May 4 , 2005 reports: However, in

this second supplemental report we have limited our work to an update of the figure included in our May 4 , 2005 report summarizing damages;

For claims for which the measur~ of damages is principal and interest due "on the
unpaid promissory Notes, darriages to the Trusts are sumniarized as follows:

, Figure 3 of our October 31, 2003 and May 4, 2005 reports was our " Damages Summary. " Fig\lfe of our May 4, 2005 report superseded Figure 3 of our October 31 , 2003 report. This second supplemental report supersedes Figure 3 of our May 4 , 2005 report.

3 -

717 17th Street , Suite 1600
Denver, Colorado 80202
Phone: 303- 298- 9600
Fax: 303. 298- 8118 www. heincpa.com

. "

Case 1:01-cv-02315-LTB-CBS

Document 490-2

Filed 10/14/2005

Page 6 of 11

Harve Sende Trustee

tember

2005

Paoe

Figure 3
LifeBlood Entities
Damages ' Summary
INote AI
U"uldatlon TrUBt

Ool- In TruSI

Compound
SlmpJeDefault tnleresl
Compound DeI~~lt

Int"""" IAnnual
312,415
2O4, 16C

Simple Cefault II1leresl

Deraun Interest

IAnnuail
$5, 479 744 103, 291

Ptindpal

Interest. Slaled Rale
Inlei'es! . Default Rate

59. 312, 416 204, 160

$5,419,144

10~91

28180586
31677161
(5, 655) (359, 202) (52, 197) (220,004)
(4DS,OOO)

113, 346180
122 1164 755

16552031
,.2.13$072
(6, 655) (359 202) (52. 191) (~20. 0O4)

60 546 950
72"130 G01

Total Damages

less recoveries oflhe Trusls, a. of Apn11, 2005: Mr. Manrl ResWuUon Mr. Wells Resmu1lorl Snell & Wilmer. UP Relum 01

_Iner

(6, 655) (359, 202)
152, 1811 (2:20, 004)

BroIo.er Selnemerlls

(6. 655) (359, 202) (52. 7971 (220 !!04)

MarlaNe, Applelon & Weatherford Settlement Funds released from reglslryor'tI1e court

Olher
Net Salas Proceeds From Stodc Sold ByThD Trusls

EsUmaled Vslue or Stock HeJd ByThe~rusls
Total Reco",,"es

(180,140) (8, 133) (71, COO) isa caDi

(405,000) 1180, 140) 18, 133)

5:1 000
'1, 31309211

1405,000) (180. '40) (8, 133) (71 CCO)

(40s.o00) (180 140)
19, 133) OOO)

i68 000\

000
" 360 921

11360. 921\

'1, 35092"

Damallo., lIIotor RHCOY"""

$36316, 240

5121~3 834

520114.151

SID 189 080

lIIote II -Amounts In bold ropresenn:hanges or additions to l11e amounts shaNn In FIgure 3 or"", MoY4, 2005 fllSl supplemental report.

We have been advised that there are nine additional beneficiaries of the Opt-In Trust. For each of these promissory note creditors, we reviewed the respective "Irrevocable Assigrunent of Claims " ~o verify that the promissory note creditor elected to assign their individual litigation claims against the Defendants to , and becarnea beneficiary , the Opt-In Trust.
These beneficiaries, ' and their promissory note princIpal balances , are as follows:
Daniel Cranston

$25 000. $25 000.

iii Carolyn Freeman
iii '

Bobby G. Gib~on, Sr.

$65 000.
$45 035.

iii William Kohl
iii Frank

Matz

$25 000. $79 041. 992 $83 083, 98
$25 000.
3

. iii Patricia Rausch
ItJ Bomrie Rausch

iii Vaughn Webb
!if Mack Webster
Total

$60 000.
$432 161.

2 Patricia Rausch has two promissory notes ($50, 000. 00 and $29 041. 99) which total $79 041.99. J Bbnrue Rausch has two promissory notes ($25 000, 00 and $58 083. 98) which total $83;083. 98.

Case 1:01-cv-02315-LTB-CBS

Document 490-2

Filed 10/14/2005

Page 7 of 11

HStV8 Sende Trustee

tember

2005

Paae

The effect of including the nine additional beneficiaries in the Opt-In Trust is to
~crease the " Principal"
balance related to the Opt-In Trust

by $432 162 (rounded).

The stated and default interest amounts .
balance, also increased.

since they are related to the principal

We have also updated the interest calculations

included in Figure 3

above. Our

October 31 , 2003 report and May 4 , 2005 first supplemental report included interest ca1culatl()ns through May ' 17 , 2004. In this second supplemental'report . we have calclliated interest through September 15 , 2005. An updated copy of oUr. interest damag~ calculations is attached as Exhibit E. 4 Once a trial date has been detennined in this matter , we will update Figure 3 , and Exhibit E, to include interest through the

~al d~.
This supplemental report has been prepared in accordance with the terms of our

engagement to provide consulting services regarding the above-referen~ed matter and shou1d not be used for any other purpose. The infonnation in this report is based on infonnation provided to us, wlIich has not been examined or reviewed by us in accordanc e with attestation standards promulgated by the AICP A. This report is based on infOlmation available to date and is subject to" change as new infonnation becomes available.
Sincerely,
HEIN ASSOCIA TES

LLP

Peter S~hulman , CPA

Partner

UTIGATION, VALUATION ADVISORY SERVICES

4 Exhibit" E of our October 31, 2003 report included our inter~t damage calculations. For ease of
reference; in" this second supplemental report, we continue to refer to our updated interest damage

calculations as Exhibit E.

UfeBlood En!iUes
EKhib;1 e - Interasl C,"nage.

/lY""",
From
Nola Dale
Nate En~ Dale

II Yea", From

Slated
Inleresl

Case 1:01-cv-02315-LTB-CBS

TO

Document 490-2 Filed 10/14/2005 Page 8 of 11

Page 1 01.

L"eB!aod Entine.

Exhibit E - Int.""" Damag..

/lVean;
From

Case 1:01-cv-02315-LTB-CBS

Nate End Date

Document 490-2 Filed 10/14/2005 Page 9 of 11

Pag."2 of 4

LifeBlood En~li", exhibit EO- Inleresl Damages

/lYeam
/lY.81S
",rom

Fmm

Not. Dale
Noto End Dal. Slaled
InIOfU!

Case 1:01-cv-02315-LTB-CBS Document 490-2 Filed 10/14/2005 Page 10 of 11

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LJfeSlood EnUti... Evhibll E - In!erest Cemeg..

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Case 1:01-cv-02315-LTB-CBS

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Document 490-2
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415.14

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11041&8.48 "129100588.40-

Slalad Inleresl

Filed 10/14/2005

cereulliniaresl Totals

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