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16Court Digest - April, 2007

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  • Greg Kersten
    Apr 18, 2007
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      Thank you all for your patience as you wait for the " translation" of what the recent
      events in court actually mean. I think we have almost gotten our head around the
      decisions in order to explain them. . .

      1. First, in the hearing regarding the Judge's decision to award attorney's fees to EAGALA
      (for their response to the initial complaint Greg filed on behalf of EAGALA), the award was
      limited to the actual amount spent in areas and on motions prescribed by the Judge.

      EAGALA claimed that they were entitled to over $40,000 for attorney's fees specifically
      covered by the Judge's prescription.

      Greg's attorney spent a good amount of time researching these fees, and delineating
      which of the fees were actually legitimate.

      The Judge's memorandum decision was entered on March 16, 2007, and awarded $14,038
      to EAGALA for legitimate attorney's fees. The Judge stated, "The Court agrees with
      Plaintiff (Greg Kersten) that despite the limited scope of the Court's decision awarding
      attorney fees, defense (EAGALA) counsel's Affidavits appear to claim an award of all, or
      nearly all, attorney fees expended on all activities for Defendants." The Judge refused to
      grant thousands of dollars in unrelated attorney fees and travel expenses – including
      those for the private jet chartered by board members to fly from Omaha to Salt Lake City.

      The Court also awarded $3,600 to Greg for attorney's fees incurred when his attorney had
      to research and segregate the fees.

      In the same memorandum decision, the Court found that Greg had purged himself of
      contempt, and the Court accepted the Proposed Order Denying EAGALA's Motion to
      Compel Service of Sentence, and the Court accepted Greg's Order Denying EAGALA's
      Motion to Enforce Settlement.

      2. Next, on April 9, 2007 we attended the hearing on the Motion for Contempt against
      EAGALA for selling the truck and horse trailer Greg had turned over to EAGALA in Feb.
      2006 – this sale was against the Judge's order, as he recognized that there was a clear
      dispute as to the ownership of the truck and horse trailer.

      Because Lynn Thomas (current President and CEO of EAGALA) and Mickey DiGiacomo
      (EAGALA's Equine Director) were both present in court on the day the Judge issued that
      order from the bench, Lynn Thomas and Mickey DiGiacomo were both found guilty of
      contempt of court and sentenced to 30 days in jail and a fine of $1000.

      The Judge offered to stay this sentence and purge the contempt ruling if they each pay a
      fine of $200 and serve two days of community service within 30 days.

      Greg was also awarded the attorney's fees (to be determined) which were required to bring
      this motion against EAGALA (this amount will be deducted from the balance he owes
      EAGALA from above).

      3. Also, on Friday, April 6, Greg's attorney sent a "Cease and Desist" letter to EAGALA
      demanding that they stop using, demonstrating, and selling his intellectual property –
      exercises, models, and techniques to folks who are paying to go through "EAGALA's"
      training program.

      As you may know, Greg created the exercises which formed the basis of EAGALA's
      certification program – many of these exercises were taught and used under Greg's
      company Equine Services, Inc. before EAGALA ever existed.

      We have reason to believe that EAGALA continues to use and demonstrate this intellectual
      property without authorization, license, or permission in its certification training program.
      This will be the basis of a lawsuit for unauthorized use and sale of
      intellectual property as matters progress.

      On a personal note, it is encouraging that the Court seems to be concurring with our views
      on the above issues.

      When it comes to attorney's fees, I believe Greg makes a good point – he believes that he
      is actually paying all of EAGALA's attorney's fees as long as they continue to make money
      by selling his ideas, techniques, and intellectual property, because Lynn Thomas has
      admitted to using the nonprofit's funds to pay their attorney.

      If you are curious or concerned . .

      You know where to find us if you have any further information or questions.

      We are not so naive as to believe that the current leadership of EAGALA sees things the
      same way we do, so we do hope you will also follow up with them with any questions or
      concerns you might have.

      If you don't know what to think or believe about this whole legal mess, we would be so
      happy if you would simply pray for justice.


      Jennifer Kersten
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