Free Statement - District Court of Arizona - Arizona

EXHIBIT 9
Case 2:04-cv—00384—ROS Document 412-11 Filed 12/15/2006 Page 1 of 4 »

1 Dan W. Goldfine (#018788)
Richard G. Erickson (#019066)
2 Emma Harty (#022490)
SNELL & WILMER LLP.
3 One Arizona Center
400 E. Van Buren
4 Phoenix, AZ 85004-2202
Telephone: 602-3 82-6216
5 Attomeys for Plaintiff Meritage Corporation
6
7
IN THE UNITED STATES DISTRICT COURT
8
FOR THE DISTRICT OF ARIZONA
9
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E Meritage Corporation, a Maryland
,_, ll Corporation, Case No. CV-O4-03 84-PHX-ROS
cu
E l _i§O I2 Plaintiff, DECLARATION OF LARRY SEAY IN
§‘ SUPPORT OF MERITAGE’S
;6;§§ 13 v. RESPONSE TO DEFENDANT'S RICH
28* ggiig HANCOCK AND RICK HANCOCK
3 “ I4 Greg Hancock, and individual; Rick HOMES, L.L.C.'S MOTION FOR
CE 15 Hancock, an individual, SUIVIMARY JUDGMENT
6 A Defendants.
16
17 I, Larry Seay, declare as follows:
18 1. I am the Chief Financial Officer, Vice President-Finance, and Secretary of
19 Meritage Corporation. I am offering this declaration in support of Plaintiff Meritage's
20 Response to Defendants Rick Hancock and Rick Hancock Homes, L.L.C. Motion for
21 Summary Judgment. I have personal knowledge of the matters set forth in this
22 declaration, and if called upon to do so, could and would testify competently thereto.
23 2. Meritage's employees have used email addresses (i.e., [employee
24
name]@hancockcommunities.com) to communicate with subcontractors, lenders, and
25
26 potential consumers.
ase 2:04-ov—00384—ROS Document 412-11 Filed 12/15/2006 Page 2 of 4

{ .
l 3. Both Hancock-MTH Builders, Inc. and Hancock-MTH Communities, Inc.
2 have subsequently merged into Meritage.
2 4. Greg Hancock and Rick Hancock (the president of HC Sales, Inc.) permitted
5 Meritage to operate as a licensee since May 2001.
6 5. Defendant Greg Hancock permitted Meritage to advertise and market homes
7 under the Hancock name.
; 6. Potential customers can access Meritage's website to find out information
10 about the homes sold under the "Hancock Communities" series name — the same potential
M ll customers who could become confused by a "Rick Hancock Homes" website. Many are
an · fe
E 12 from out of state. Meritage also acquires financing and supplies from out of state.
@$.11 7. As part of its $88 million acquisition of the Hancock businesses, Meritage
g I 15 acquired the exclusive use of the Hancock mark and that portion of the purchase price
O 16 cannot be otherwise recaptured.
17 8. Meritage uses the marks "Hancock" name in conjunction with single-family
18 homes.
19
20 9. Defendant Hancock‘s wrongful conduct poses a substantial risk that it will
21 cause Meritage to lose future sales
22 10. In 2001, Meritage acquired the Hancock Communities and HC Builders
if homebuilding businesses (the Hancock businesses) for approximately $88 million.
25 11. Meritage’s pricing strategies, market strategies relating to its marks and
26 services, land development strategies, house plans, advertising strategies, customer lists
ase 2:04-cv—00384—ROS Document 412:121- Filed 12/15/2006 Page 3 of 4

l and files, and employee compensation are confidential and proprietary information
2 compiled and maintained by Meritage.
3
4 I declare under penalty of perjury under the laws of the United States that the
5 foregoing is true and correct, and that I have executed this declaration in Scottsdale,
6 Arizona on this 2 day of December, 2004.
7 I
9 Larry Seay A
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