Case 2:15-cv-00872-JCM-VCF Document 1 Filed 05/08/15 Page 1 of 16
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Ryan A. Hamilton
NV BAR NO. 11587
HAMILTON LAW
5125 S. Durango Dr., Ste. C
Las Vegas, NV 89113
(702) 818-1818
(702) 974-1139 (fax)
[email protected]
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Attorney for the Plaintiffs,
Paul and Carla Savoie
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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PAUL SAVOIE, an individual; and CARLA
SAVOIE, an individual,
Case No.
Plaintiffs,
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vs.
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COMPLAINT AND JURY DEMAND
NARCONON FRESH START d/b/a
RAINBOW CANYON RETREAT;
ASSOCIATION FOR BETTER LIVING AND
EDUCATION INTERNATIONAL;
NARCONON INTERNATIONAL;
NARCONON WESTERN UNITED STATES
and DOES 1-100, ROE Corporations I – X,
inclusive,
Defendants.
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Plaintiffs Paul Savoie and Carla Savoie (“Plaintiffs”), by and through counsel, allege the
following:
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I.
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PARTIES
1.
Plaintiffs Paul Savoie and Carla Savoie are residents of, and for the purposes of
determining federal diversity jurisdiction citizens of, Saskatoon, Canada.
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Case 2:15-cv-00872-JCM-VCF Document 1 Filed 05/08/15 Page 2 of 16
Defendant Narconon Fresh Start (hereafter “Fresh Start”), is, and at all times relevant to
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2.
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this Complaint was, a corporation incorporated under the laws of, and with its principal place of
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business in, the State of California. Defendant has been at all relevant times transacting business in
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Caliente, Lincoln County, Nevada. Fresh Start may be served with process through its registered
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agent, Mark Kirwin, 4480 Market St., Ste. 804, Ventura, CA 93003.
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3.
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State of California with its headquarters in Los Angeles, California.
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4.
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managing its daily operations, and creating and approving their marketing materials.
Defendant Narconon Western United States (“Western”) is a corporation registered in the
Western controls the time, manner, and method of Fresh Start’s business by actively
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5.
Defendant Narconon International is a California corporation with its headquarters in Los
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Angeles, California.
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6.
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its agent and subsidiary/licensee Defendant Narconon Fresh Start. NI may be served with process
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through its registered agent, Timothy Bowles, One South Fair Oaks Avenue, Pasadena, California
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91105.
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7.
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Education (“ABLE”). ABLE oversees the drug rehabilitation, education, and criminal justice
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activities of the Church of Scientology including, but not limited to, Fresh Start and Narconon
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International.
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8.
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in Los Angeles, California.
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9.
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Start’s businesses by actively managing their daily operations, including conducting inspections of
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Narconon centers and creating, licensing, and approving their marketing materials.
Narconon International (“NI”) was doing business in the State of Nevada by and through
Fresh Start, NI, and Western are subsidiaries of the Association for Better Living and
Defendant ABLE is a corporation registered in the State of California with its headquarters
ABLE controls the time, manner, and method of Narconon International’s and Fresh
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10.
ABLE transacts business in the State of Nevada by and through its agents, Narconon
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International and Narconon Fresh Start. ABLE may be served with process through its registered
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agent, Timothy Bowles, One South Fair Oaks Avenue, Pasadena, California 91105.
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11.
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associate, or otherwise, of Defendant DOES 1-100, inclusive, and, therefore, sues these
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Defendants by fictitious names. Plaintiff will seek leave of this Court to amend this Complaint
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when the identities of these Defendants are ascertained.
Plaintiffs are unaware of the true names and capacities, whether individual, corporate,
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II.
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JURISDICTION AND VENUE
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13.
This Court has subject jurisdiction pursuant to 28 U.S.C. § 1332. The amount in
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controversy exceeds $75,000.00, and there is complete diversity between the parties.
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14.
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of the events and omissions giving rise to this lawsuit occurred in this District, and the Court has
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personal jurisdiction over each of the parties as alleged throughout this Complaint.
Venue is proper in this Court pursuant to 28 U.S.C. § 1391(a) because a substantial portion
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III.
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FACTUAL ALLEGATIONS
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15.
On or about January 8, 2015, Carla Savoie was searching the Internet for a drug
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rehabilitation facility for her son, Joshua Savoie. Carla found a website that advertised assistance
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to persons in finding an appropriate drug rehabilitation facility.
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named “Tibor Palatinus” the following day, January 9, 2015.
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15.
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traumatic events he had experienced.
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named “Josh” at Narconon Fresh Start, and a telephone number to call.
Carla and Paul called an “800” number listed on the website, and spoke to an individual
They spoke to Tibor at length about Joshua’s background, drug usage, prescriptions, and
Tibor directed Plaintiffs to Narconon Fresh Start in Nevada. Tibor also gave them a contact
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Over the next three days, Paul and Carla Savoie spoke on several occasions to “Josh” and
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17.
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another individual named “Dan Carmichael” as representatives of Narconon Fresh Start.
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18.
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professional trauma counseling and a medically supervised detox all at Fresh Start’s Nevada
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facility.
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high success rate.
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necessary information about their son’s substance abuse for Fresh Start to render services.
Dan Carmichael and Josh represented to Plaintiffs that Narconon Fresh Start offered
Dan Carmichael and Josh further represented that Narconon Fresh Start had an extremely
Finally, Dan Carmichael and Josh represented to Plaintiffs that Plaintiffs had provided all
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21.
Arrangements were then made for Plaintiffs’ son to enter the Narconon Fresh Start
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program in Caliente, Nevada.
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Narconon Fresh Start’s facility in Caliente, Nevada.
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transported to Fresh Start’s facility in Caliente, Nevada.
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informing Plaintiffs that Fresh Start could not care for their son at their Nevada facility because his
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withdrawal was too severe.
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to a facility in Huntington Beach, California.
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concerned about the Narconon program.
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Agreement”).
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28.
Paul and Carla Savoie paid Narconon Fresh Start $33,000.00 to for their son’s treatment at
On or about January 13, 2015 Plaintiffs’ son arrived in Las Vegas, Nevada, to be
Plaintiffs received a phone call on January 14, 2015 from a Narconon representative
Instead, the Narconon representative informed Plaintiffs that their son had been transferred
After being told that their son had been sent to Huntington Beach, Paul and Carla became
Fresh Start sent Plaintiffs a “Narconon Fresh Start Admission Agreement,” (“Admission
Plaintiffs never signed nor ratified the Admission Agreement.
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29.
The Admission Agreement defines the treatment program Narconon Fresh Start offers as
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follows: “Fresh Start delivers a comprehensive drug and alcohol treatment program using the
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Narconon program methodology. This methodology was written and developed by founder
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William Benitez, and author L. Ron Hubbard.”
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30.
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all religious doctrine and religious texts in the Scientology religion.
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about any connection between the Narconon Fresh Start program and L. Ron Hubbard or the
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Scientology religion.
L. Ron Hubbard was the Founder of the Scientology religion. Hubbard is the sole source of
In their discussions with Dan Carmichael and Josh, Plaintiffs had never been informed
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32.
Plaintiffs called Josh and Dan Carmichael at Narconon to discuss their concerns about their
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son’s treatment and whether the Narconon program had any connection Scientology.
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and Narconon.
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34.
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January 20, 2015 about 2:30 p.m. at Huntington Beach.
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35.
Plaintiffs’ son never began the Narconon program.
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36.
Plaintiffs requested a refund from Narconon Fresh Start.
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Narconon Fresh Start agreed to provide a partial refund but has to date not returned any
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portion of Plaintiffs’ funds.
Plaintiffs spoke to Josh and he denied that there was any connection between Scientology
Plaintiffs did not believe Josh. Consequently, Plaintiff Paul Savoie picked up his son on
The Narconon Program
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Fresh Start uses the the Narconon “Treatment” Program. This program consists of two
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components: (1) course materials consisting of eight books based on the works of L. Ron
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Hubbard; and (2) a sauna and vitamin program known as the “New Life Detoxification Program.”
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39.
Each patient in the Narconon program receives exactly the same written materials.
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40.
The Narconon program has patients study introductory Scientology as a means of
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treatment for substance abuse.
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philosophy such as the A-R-C triangle, the Eight Dynamics, the Conditions of Existence, Overts
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and Withholds, “word clearing,” Suppressive Persons and Potential Trouble Sources,
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Disconnection, Training Routines, and Objective Processing.
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42.
The courses in the Narconon program are largely self-taught by the patients.
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According to manuals for administering the Narconon program, the Narconon program is
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not to be mixed with any other treatment approaches.
Patients undergoing the Narconon program read about Scientology doctrines and
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Consequently, persons undergoing the Narconon treatment program are directed not to go
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beyond the Narconon materials or deviate from the materials.
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The Narconon program contains no trauma counseling or counseling of any other type.
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In addition, Fresh Start has participants engage in a sauna program known as the “New
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Life Detoxification.”
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“Purification Rundown,” or the “Purif.”
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the Scientology religion’s spiritual journey known as the “Bridge to Total Freedom.”
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49.
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remain the body’s fatty tissue long after use. The drug residue is released from the fatty tissue
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from time-to-time into the bloodstream causing the individual to crave the drug, and, ultimately,
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relapse. Fresh Start claims that the sauna program flushes these residual drug toxins out of the
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addict’s system thereby reducing the cravings the residue causes.
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entering the sauna each day. On entering the sauna, Narconon requires each student to ingest
The New Life Detoxification program is identical to the Scientology ritual known as the
The Purification Rundown is a required component of Scientology training and is part of
Fresh Start’s rationale for the sauna program is that residue of many different types of drug
Under the New Life Detoxification program, students first exercise vigorously before
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increasing doses of Niacin and a “vitamin bomb.” This includes dosages of Niacin well beyond
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the recommended daily allowance.
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Rundown, are false and do not withstand scientific scrutiny.
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52.
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Narconon of Northern Georgia in a wrongful death suit filed against those entities, testified at a
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deposition. Relevant portions of Dr. Casal’s deposition testimony are attached hereto as Exhibit
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A. When asked under oath about the New Life Detoxification Program, he testified that there is no
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scientific basis for the notion that sweating in a sauna detoxifies a person’s body or treats
Fresh Start’s claims about the benefits of its sauna program, i.e., Scientology’s Purification
In a prior lawsuit, Dr. Louis A. Casal, an expert retained by Narconon International and
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addiction:
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Q.
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Have you looked at the Narconon literature on what Narconon contends the
benefits from the sauna are?
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A. [Dr. Casal] Yes, I have.
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Q.
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your body. True?
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A.
True.
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Q.
But there’s no scientific basis that you can point to to support that contention, is
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there, sir?
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A.
You’re correct.
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Q.
So when Narconon states that the sauna program detoxifies its students, you’re not
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And the sauna program, what Narconon contends is that in – it in fact detoxifies
aware, as a medical doctor, of any scientific basis for that contention?
A.
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I agree.
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Exhibit A, Deposition of Dr. Louis Casal, 136:21 – 137:9.
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53.
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Fresh Start d/b/a Rainbow Canyon Retreat.
Narconon claims a success rate of 76% for all Narconon centers, including Narconon
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54.
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testified at his deposition that he was not convinced Narconon’s claimed success rate was true:
Q.
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Dr. Casal, the medical expert retained by Narconon International in another lawsuit,
Okay. What are you relying on – well, let me ask you this; do you believe that 76
percent success ratio is accurate?
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A. [Dr. Casal]. Mr. Harris, I’ll be honest with you, that’s a big number.
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Q.
Yeah, it’s – it’s a real big number.
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A.
It’s a big number.
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Q.
And it’s completely inconsistent –
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A.
I – I hope it’s true, but, I mean, I would need some convincing.
…
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Q.
Okay. Do you have any idea where Narconon is getting the numbers that it’s using?
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A.
You know, in the interest of time – I just didn’t have enough time to delve deeper
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into those studies, Mr. Harris. And I – I would be happy to, but, no, I don’t have a clear
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understanding of where that 70 – 70-something number came from, no, sir.
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Exhibit A, Deposition of Dr. Louis Casal, 124:21 – 125:5; 126:1 – 7.
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55.
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advised the Narconon Freedom Center not to say they have a 70% success rate when responding to
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a Better Business Bureau complaint. Arcabascio advised against citing the success rate because
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“we do not have scientific evidence of it.” Attached hereto as Exhibit B is a copy of Ms.
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Arcabascio’s e-mail to the Narconon Freedom Center.
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56.
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Church of Scientology. For example, a Narconon document titled the “Narconon Technical Line-
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Up” provides a flow chart of a patient’s experience into and through the Narconon program. The
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document shows that when a patient finishes the Narconon program, the patient is to be “route[d]
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to the nearest Org for further services if the individual so desires.” “Org” is Scientology jargon for
In addition, the Director of Legal Affairs for Narconon International, Claudia Arcabascio
Narconon documents indicate that the Narconon program is used to recruit patients into the
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an individual church providing services for the Church of Scientology. A copy of the “Narconon
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Technical Line-Up” is attached hereto as Exhibit C.
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57.
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to the Bridge.” That is, Narconon considers its program to be an initial step into getting on
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Scientology’s “Bridge to Total Freedom,” the key spiritual journey that practitioners of the
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Scientology religion undertake. See, e.g., “Narconon News, 1974, Volume 6, Issue 3: Narconon Is
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The Bridge to The Bridge,” attached hereto as Exhibit D.
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58.
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that thanks Larry Trahant and “The Narconon Fresh Start Team” for introducing patients to L. Ron
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Narconon and the Church of Scientology consider the Narconon program to be the “Bridge
At Fresh Start’s headquarters in Glendale, California, hangs a plaque received from ABLE
Hubbard and “The Bridge.” The writing on the plaque provides, in relevant part:
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Larry and his dynamic team at Narconon Fresh Start are hereby
warmly thanked and highly commended for their dedication and
hard work. They give us tremendous back up in introducing LRH to
the world and are saving lives on a daily basis. There are thousands
of beings who have taken their first steps on The Bridge, thanks to
the compassion and efforts of this team.
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A photo of this plaque is attached hereto as Exhibit E.
59.
Scientology’s own marketing documents show that the Narconon program is part of
Scientology’s plan to “clear “civilization. (To “go clear” is the ultimate spiritual goal for a
Scientologist, achieved after one goes up the “Bridge to Total Freedom.”) The document attached
hereto as Exhibit F, shows a Church of Scientology, or an “Org” as it’s known, with an arrow
directed at the Narconon “Jumping Man” logo. The document reads:
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The question is not how to clear an individual, it’s how to clear a
civilization … by making every one of our orgs a central
organization responsible for every sector of Scientology activities
across it’s [sic] entire geographic zone.
In other words, the Church of Scientology is supposed to direct Narconon to achieve Scientology’s
spiritual goal of “clearing” civilization.
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Defendant ABLE owns the trademarks for Narconon, including all rights to the Narconon
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“Jumping Man’ logo.
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document attached hereto as Exhibit F.
Defendant ABLE gave permission for the Narconon “Jumping Man” logo to be used in the
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62.
Fresh Start is using the Narconon program to introduce Scientology and L. Ron Hubbard’s
“technology” to unwitting patients seeking drug rehabilitation. This is exactly as the Church of
Scientology directed as part of its “Social Coordination Strategy.” Scientology explicitly outlined
this strategy in an urgent Executive Directive from the Authorization, Verification, and Correction
Department of its Religious Technology Center. The Executive Directive outlining the “Social
Coordination Strategy” is attached hereto as Exhibit G (hereafter the “SOCO Directive”).
61.
The SOCO Directive instructed all SOCO GROUPS, which includes Narconon, as
follows:
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YOU ARE THERE TO SELL LRH’s TECH TO THE SOCIETY
AND GET IT USED, AS THE TECH. You do this through a
SMOOTH JOB OF PROMTIONAL ORGANIZATION – FRONT
GROUPS, CORPORATIONS, FIELD WORKERS, ETC.
(emphases in original).
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The SOCO Directive expressly directed using front groups to introduce L. Ron Hubbard’s
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“technology,” i.e., Scientology to society.
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62.
SOCO, or the Social Coordination Bureau of the Church of Scientology, is the predecessor
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in interest to Defendant ABLE.
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NI, Western, and ABLE Control Narconon Fresh Start
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63.
Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further alleges as follows:
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64.
Defendant Narconon Fresh Start has all appearances of being a corporate sham illusion and
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mere instrumentality of Defendants NI, ABLE, and Western
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65.
ABLE, NI and Western heavily influence Narconon Fresh Start and govern and control
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nearly every aspect of Narconon Fresh Start’s business activities.
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66.
NI publishes manuals that individual Narconon Centers such as Fresh Start d/b/a Sunshine
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Summit Lodge are required to follow in operating the individual Narconon center. Two of these
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manuals are entitled “Opening A Successful Narconon Center” and “Running An Effective
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Narconon Center.”
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67.
These manuals indicate that an individual Narconon center can do very little without the
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approval of NI, Western, and ABLE.
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68.
Narconon Fresh Start cannot transfer, demote, or dismiss a permanent staff member
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without the approval of NI.
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69.
NI, Western, and ABLE have ultimate authority over the hiring of any Fresh Start staff
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member. If a Narconon Fresh Start staff member does not meet the qualifications of a staff
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member, the staff member may petition the Senior Director of Administration at NI to remain on
staff.
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70.
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materials that make it hard or impossible for her to do her job, she may file a “Job Endangerment
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Chit” with the Ethics Department at NI. NI and Western then investigate and work to resolve the
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staff member’s issue.
If a staff member at Narconon Fresh Start believes she has been given orders or denied
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72.
The operations manuals require staff members at Narconon Fresh Start to report
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misconduct and “nonoptimum conduct’ to the Quality Control Supervisor at NI. NI and Western
investigate misconduct at Narconon Fresh Start and may take disciplinary actions against its staff
members.
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Western receives ten percent of the weekly gross income from Narconon Fresh Start.
74.
NI requires Narconon Fresh Start to send it detailed weekly reports containing statistics of
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more than 40 different metrics. NI and Western review these weekly reports and order changes at
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Narconon Fresh Start based on increases or decreases in the statistics in the reports.
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75.
NI, Western, and ABLE require that Narconon Fresh Start receive approval on all
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promotional materials before Fresh Start disseminates them. Further, Fresh Start must obtain
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approval as to its Internet websites from NI, Western, and ABLE before the sites “go live.”
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76.
NI, Western and ABLE also assist in creating Narconon Fresh Start’s advertising
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materials. NI, Western and ABLE dictate the contents of those advertising materials.
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Narconon International and ABLE monitor the delivery of the “treatment” that Fresh Start
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provides. The written materials in the Narconon program consist of the writings and works of L.
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Ron Hubbard. Narconon and Scientology refer to these materials as “technology” or “tech.”
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77.
NI requires that Narconon Fresh Start maintain a “building account fund” in which weekly
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monies from the gross income are used to purchase new premises and also as a cushion to salvage
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the organization in dire circumstances. The “building fund” is under the control of NI.
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78.
NI, Western and ABLE conduct “tech inspections” at Narconon Fresh Start. These
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inspections entail NI, Western, and ABLE monitoring and correcting the manner in which
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Narconon Fresh Start delivers the Narconon treatment program to patients at Fresh Start. NI,
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Western, and ABLE instruct staff at Fresh Start as to the exact manner in which they are to
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perform their services and deliver the Narconon treatment program.
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79.
NI and ABLE also publish all training materials for Narconon Fresh Start. This includes
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seven different training materials on subjects ranging from the Narconon sauna program to
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overseeing to delivering the Narconon treatment program.
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80.
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good photos of L. Ron Hubbard visible in every center and that materials are available to students
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and staff as to L. Ron Hubbard’s contributions in the field of alcohol and drug rehabilitation.
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81.
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legal problems, including patient requests for refunds and complaints to the Better Business
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Bureau. In addition, NI, Western, and ABLE work to combat negative publicity for Fresh Start.
Further, the NI Director of Technology and Approval demands and ensures that there are
NI, Western, and ABLE work with individual Narconon centers such as Fresh Start on
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82.
NI, Western, and ABLE are intimately involved in the day-to-day operations of Narconon
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Fresh Start. NI, Western, and ABLE have the final authority over all decisions at Narconon Fresh
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Start relating to hiring and firing, delivery of services, finances, advertising, training, and general
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operations.
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83.
NI, Western, and ABLE all are principals served by their agent, Fresh Start.
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FIRST CLAIM FOR RELIEF
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UNJUST ENRICHMENT
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84.
Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation
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set forth in the preceding paragraphs and further allege as follows:
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85.
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drug rehabilitation services that Defendants promised to provide.
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86.
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services Defendants promised to provide, including without limitation, medically supervised
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detox, trauma counseling, and drug rehabilitation.
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87.
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they obtained from Plaintiffs.
Defendants received benefits from Plaintiffs, including without limitation, $33,000.00 for
Defendants did not provide, nor were they equipped to provide to Plaintiffs’ son the
Under the circumstances, it would be unjust to allow the Defendants to retain the benefits
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SECOND CLAIM FOR RELIEF
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FRAUD
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88.
Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further alleges as follows:
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89.
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represented to Plaintiffs that Fresh Start (i) would provide Plaintiffs’ son medically supervised
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detox at their Nevada facility; and (ii) that Fresh Start’s treatment program provided trauma
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counseling.
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90.
Defendants, through Narconon representatives Josh and Dan Carmichael, falsely
Dan Carmichael and Josh, Narconon representatives, made these statements to Plaintiffs on
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or about January 10-13, 2015, to induce Plaintiffs to admit their son to Narconon.
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91.
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Fresh Start $33,000.00, nor would they have admitted their son to Fresh Start for treatment.
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92.
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damages.
Had Plaintiffs known these statements to be false, they would not have paid Narconon
As a proximate result of Defendants’ fraudulent conduct, Plaintiffs have suffered pecuniary
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THIRD CLAIM FOR RELIEF
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NEGLIGENT MISREPRESENTATION
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93.
Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further alleges as follows:
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94.
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and Dan Carmichael, falsely represented to Plaintiffs that Fresh Start (i) would provide Plaintiffs’
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son medically supervised detox at their Nevada facility; and (ii) that Fresh Start’s treatment
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program provided trauma counseling.
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95.
Defendants made these representations of fact without using reasonable care.
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96.
Defendants knew that Plaintiffs would rely on these representations of fact.
On or about January 10 – 13, 2015, Defendants, through Narconon representatives Josh
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97.
Defendants made these statements to guide Plaintiffs in their business transaction with
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Defendants.
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98.
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Plaintiffs suffered damages in excess of $75,000.00.
Plaintiffs relied on these false representations of fact to their detriment and, as a result,
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FOURTH CLAIM FOR RELIEF
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FRAUD CLAIMS PURSUANT TO NRS § 41.600
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99.
Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
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forth in the preceding paragraphs and further allege as follows:
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100.
By reason of Defendants’ actions complained of herein, Plaintiffs are victims of consumer
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fraud.
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101.
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598.0915 to 598.0925, inclusive.
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102.
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respect to Plaintiffs: (i) advertising substance abuse treatment with the intent not to sell them as
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advertised by providing Scientology instead; (ii) using “bait and switch” advertising whereby
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Defendants advertise extensive substance abuse counseling and treatment and then deliver a
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“treatment” program wherein the patient receives Scientology teachings and rituals; and (iii)
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failing to disclose material facts to Plaintiffs about the services Defendants were selling including,
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but not limited to, the fact that the Narconon treatment program consisted of Scientology doctrines
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and practices.
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103.
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as a result, have suffered substantial pecuniary damages and other injuries.
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104.
Defendants have engaged in numerous deceptive trade practices as defined in NRS
The following is a list of the deceptive trade practices Defendants have engaged in with
Plaintiffs have been the victims of Defendants’ deceptive trade practices listed above and,
Defendants’ deceptive trade practices are likely to continue without court intervention.
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Case 2:15-cv-00872-JCM-VCF Document 1 Filed 05/08/15 Page 16 of 16
Plaintiffs are entitled to all available relief under NRS § 41.600 including Plaintiffs’
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105.
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attorney’s fees and costs of this action, Plaintiffs’ damages, and an injunction restraining
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Defendants from further engaging in the deceptive trade practices complained of herein.
DEMAND FOR JURY TRIAL
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Plaintiffs demand a jury trial on all issues triable.
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PRAYER FOR RELIEF
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WHEREFORE, Plaintiffs pray for the following relief:
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A. Judgment in favor of Plaintiffs and against Defendants for damages in such amounts as
may be proven at trial;
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B. Compensation for special, general, and treble damages;
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C. Reasonable attorney’s fees and costs of suit;
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D. Interest at the statutory rate;
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E. Punitive or exemplary damages against Defendant;
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F. All further relief, both legal and equitable, that the Court deems just and proper.
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DATED this May 8, 2015.
Respectfully submitted,
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By:/s/ Ryan A. Hamilton
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RYAN A. HAMILTON, ESQ.
NV BAR NO. 11587
HAMILTON LAW
5125 S. Durango Dr., Ste. C
Las Vegas, NV 89113
(702) 818-1818
(702) 974-1139
[email protected]
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Attorney for Plaintiffs
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