Free Status Report - District Court of Arizona - Arizona

FILED 1 LODGED
__ RECEIVED __ COPY
STEVEN J DELAPORTAS, In Pro Per
PO Box 32770 NOV 0 8 2007
PHOENIX ARIZONA 85064 cuaax u s oasmacr couRT
602.840.4730 (Ph) DISTRICT or= ARIZONA
6029529077 (Fax) BY——é-Q DEPUTY
/
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ARIZONA
Northem Wisconsin Produce, Co.
Plaintiff, Case No. CV-02-02366 (HRH)
v.
Ionian Foods, LLC, an Arizona Limited
Liability Company; Steven Delaportas, and
Christopher Vasilas,
Defendants.
/
STEVEN DELAPORTAS’ STATUS REPORT
The Federal Criminal Action.
This matter was put on administrative hold when the U.S. Govemment began a criminal
action against myself, and Robert Bertola. After numerous delays, Judge Martone held a
hearing on October 18 and 23, 2007 to accept plea agreements and hold a hearing on
potential restitution.
At that hearing, the United States government acknowledged that it had "proof problems"
with the original charges against me, and dismissed all charges in its original indictment
against me which originally alleged conspiracy, concealment in bankruptcy, wire fraud,
and aiding and abetting.
The Government filed a new information which simply charged me with Accessory-
After-the-Fact—Failure to Report Bankruptcy Crime committed by Robert Bertola.
Judge Martone held a hearing on restitution. The restitution amount claimed by Northem
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Wisconsin Produce (NWP) was based upon a bankruptcy court judgment it obtained
against Bertola at a trial where I was not a party; nor a witness. I believe that since I was
not a party to that Bankruptcy Court trial; I am not bound by the findings of the
Bankruptcy Court. NWP seeks the same damages from me in this case, that it sought
from Bertola in the Bankruptcy Case; and that it sought from Judge Martone in the
restitution portion of the Criminal Action.
Judge Martone accepted the previous Bankruptcy Court Ending that NWP’s damages
from the Bertola matter was approximately 315,000.00; and ordered restitution in that
amount. Judge Martone ordered that Bertola and I were jointly and severally responsible
to pay the restitution. I agreed to pay the following money towards the total restitution
amount-- $160,000 on October 23, 2007 (which was paid on that date); and $500
per month for 60 months (during the period of my non-reporting probation period).
The Instant Matter
In NWP’s previous Status Reports, it claimed that whatever amount Judge Martone found
in the Criminal Action would control in this case, since the amounts sought in this case,
the Bertola Bankruptcy, and the restitution portion of the Criminal Action, were all the
same amounts. At the conclusion of the restitution hearing, NWP suddenly changed its
position and, although not a party to the Criminal Action, was allowed to speak both as a
witness (Mark Lindemann) and through legal counsel (Dan Collins) that the restitution
amount was "only a floor" to NWP’s damages. I disagree.
The Remaining Issues in this Case.
In any event, I understand that in this case, NWP still seeks a judgment against me for the
following:
• $315,000 which is the iigure found by the Bankruptcy Court against Bertola, and
which was adopted by Judge Martone in the Criminal Action.
• $38,000 in slotting fees
• Attorneys Fees
• Lost Profits
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This case should be settled by NWP and me; or dismissed. The 315,000 is no longer an
issue as Judge Martone already ordered restitution in that amount. To date, I have paid
160,000; and NWP has received another 25,000 to 50,000 collectively Hom Bertola, and
the Bankruptcy trustee. Judge Martone ordered the full amount paid over the next 5 years
by Mr. Bertola and myself I have agreed to do that. .
NWP is not entitled to slotting fees. In a prior deposition, NWP swore that its lost
slotting fees were only 2500 to 5000 dollars. Now it claims 38,000. NWP also admitted
in sworn deposition testimony that even if slotting fees are paid to a store, there is no
guarantee of any specific time period that the store will keep the slot open. NWP’s
request for slotting fees would be uncollectible since they are "speculative damages."
Also, I have proof that I paid for my own slotting fees for my own product.
NWP is not entitled to attomey fees. NWP already argued to the 9th Circuit Bankruptcy
Court of Appeals that it was entitled to attomey fees in the bankruptcy matter (which is
the same facts and arguments in this case). The 9°’ Circuit said that NWP was not
entitled to attomey fees under Arizona state law because it was not an action based on a
written contract. The same is true here. There was never a written contract between me
and NWP. So, even if NWP won this case, they would not be entitled to attomeys fees in
this case.
I have spoken with a lawyer and am researching whether in a case like this NWP would
be entitled to lost proiits. I don’t think they would be.
Settlement Discussions.
I am confident that if NWP’s attorneys take the above into account, we can get this case
settled. Mr. Collins wrote to me this week asking me to meet with him to discuss
settlement. I agreed to do that if Mr. Collins would first put a settlement offer in writing
so I can consider if it is reasonable, or if we have anything to talk about prior to meeting
to discuss settlement. I have not received any written offer yet, despite two requests. I
am willing to discuss any reasonable settlement offer.
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Reguest for Additional Status Conference
I would like to explore settlement of this case with Mr. Collins before we continue to
litigate; or before I hire a lawyer, or consider filing bankruptcy for myself and Ionian
Foods, LLC. I am asking to have 45 days to try and get this case settled. If not settled
within 45 days, I will consider hiring a lawyer and Hling a Motion To Dismiss the rest of
this case; or to put myself and Ionian into Bankruptcy. (I know that I still have to pay the
restitution amount ordered by Judge Martone even if I tile bankruptcy, and that is fme
with me).
Respec · ly,
) \
Steven J. Delaportas I
Co y of the foregoing faxed this
_§day of November, 2007 to:
Daniel Collins, Esq.
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