USSD Receives Two Consecutive Key Rulings in Attempted Business Takeover Case

Feb. 3, 2011 - PRLog -- IRVINE, CALIF.-- United Studios of Self Defense (USSD) received two key rulings in January in its case against six former USSD executives and their new company Z-Ultimate Self Defense Studios (collectively, “Z-Ultimate”).

   USSD had filed a cross-complaint on October 7, 2010 against Z-Ultimate for numerous counts including breach of fiduciary duty, constructive fraud, conspiracy, misappropriation of trade secrets, trademark infringement and breach of written contract arising out of Z-Ultimate’s attempt to take over USSD karate studio business operations (Cross-complaint: United Studios of Self Defense, Inc., et al. vs. Kris Eszlinger, Hans Prosch, Frank Ley, William Clark, Russell Clegg, Paul Taylor, Z-Ultimate Self Defense Studios, et al., Case No. 30-2010 00404621, Orange County Superior Court, Central Justice Center, October 7, 2010). Z-Ultimate had also asserted various tort and contract claims, and a declaratory relief claim against USSD and USSD founder Charles Mattera.  

   In December, Z-Ultimate asked the court to move part of the action to arbitration and for a stay that would put a hold on the rest of the case.  Meanwhile, USSD and Mattera moved to dismiss Z-Ultimate’s claims. At a hearing on January 21, 2011, the court denied Z-Ultimate’s request for a stay, moved their contract claims to arbitration and ordered USSD’s entire action against Z-Ultimate to go forward in litigation.  One week later, on January 28, 2011, USSD persuaded the court to dismiss Z-Ultimate’s three tort claims.  These consecutive rulings against Z-Ultimate effectively leave them with no claims in court for money damages.  

   ”When Z-Ultimate asked the court to send the case to arbitration, they were capitulating under the pressure of litigation," says Lawrence J. Conlan, USSD co-counsel with A. Barry Cappello of Cappello & Noël, LLP. "They were dealt a major blow when the court denied the request for a stay, and they took another hit when when their tort claims were thrown out.”  Conlan added that “Z-Ultimate started this lawsuit by suing USSD and Charles Mattera, and now they have been forced back onto defense, facing 13 causes of action and a jury trial.”

   For more information on USSD and other recent developments, please visit USSD’s website at http://www.ussd.com.

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USSD, based in Irvine, California, was founded in 1988 by Charles Mattera, a 10th degree Black Belt in Shaolin Kempo-style karate. USSD has studios in the U.S. and Canada.