34-CV-16-560
STA"I'E OF MINNESOTA
COUNTY OF KANDIYOHI
Kris and Jael Paffrath, individually,
Filed in Eighth Judicial District Court
12/27/2016 10:51:08 AM
Kandiyohi County, MN
DISTRICT COURT
EIGHTH JUDICIAL DISTRICT
Case Type: Property Damage
Court File No.:
Judge:
Plaintiffs,
v.
SUMMONS
Trifecta Deals Corporation, a New York
corporation, Daniel Lee, individually,
Ray Lee, individually, John Doe,individually,
Jane Roe, individually, and Mary Roe,
individually,
Defendants.
THIS SUMMONS IS DIRECTED TO THE ABOVE-NAMED DEFENDANTS:
YOU ARE BEING SUED. The Plaintiff has started a lawsuit against you. The
1.
Plaintiffs' Complaint against you is attached to this Summons. Do not throw these papers away.
They are official papers that affect your rights. You must respond to this lawsuit even though it
may not yek be filed with the Court and there may be no file number on this Summons.
YOU MUST REPLY WITHIN 20 DAYS TO PROTECT YOUR RIGHTS.
2.
You must give or mail a written response, called an Answer, to the person who signed this
summons within 20 days of the date on which you received this Summons. You must send a
copy of your Answer to the person who signed this summons located at: 100 North Sixth Street,
Suite 600A, Minneapolis, MN 5.5403.
YOU MUST RESPOND TO EACH CLAIM. The Answer is your written
3.
response to the Plaintiffs' Complaint. In your Answer you must state whether you agree or
disagree with each paragraph of the Complaint. If you believe the Plaintiffs should not be given
anything asked for in the Complaint, you must say so in your Answer.
4.
YOU WILL LOSE YOUR CASE IF YOU DO NOT SEND A WRITTEN
RESPONSE TO THE COMPLAINT TO THE PERSON WHO SIGNED THIS
SUMMONS. If you do not Answer within 20 days, you will lose this case. You will not get to
tell your side of the story, and the Court may decide against you and award the Plaintiffs
everything asked for in the Complains. If you do not want to contest the claims stated in the
Complaint, you do not need to respond. A default judgment can then be entered against you for
the relief requested in the Complaint.
34-CV-16-560
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Kandiyohi County, MN
LEGAL ASSISTANCE. You may wish to get legal help from a lawyer. If you
5.
lawyer,
the Court Administrator may have. information about places where you can
do not have a
get legal assistance. Even if you cannot get legal help, you must still provide a written
Answer to protect your rights or you may lose the case.
ALTERNATIVE DISPUTE RESOLUTION. The parties may agree to or he
6.
ordered to participate in an alternative dispuke resolution process under Rule 114 of the
Minnesota General Rules of Practice. You must still send your written response to the
Complaint even if you expect to use alternative means of resolving this dispute.
ACKNOWLEDGEMENT
Plaintiffs hereby acknowledge that sanctions may be imposed under the circumstances set
forth in Minn. Stat. § 549.211.
r.
PFEFFEI~iIF
,~
1:~1 ~. I ,f~ 1
;ti~
Dated: October 18, 20'16
Steven J. Pfefferle, #173 -~1
Jessica K. Allen,#38684:
100 North Sixth Street, Suite 600A
600A Butler Square Building
Minneapolis, MN 55403
612-573-3Q0()
Attorneys for Plaintiffs Kris and Joel Pafj"rath
34-CV-16-560
STATE OF MINNESOTA
Filed in Eighth Judicial District Court
12/27/2016 10:51:08 AM
Kandiyohi County, MN
DISTRICT COURT
COUNTY OF KANDIY~HI
EIGHTH JUDICIAL DISTRICT
Case Tempe: Property_Damage
Kris and Joel Paffrath, individually,
Plaintiffs,
v.
COMPLAINT
Trifecta Deals Corporation, a New York
corporation, Daniel Lee, individually,
Ray L.ee, individually, John Doe, individually,
Jane: Roe, individually, and Mary Roe,
individually,
Defendants.
Plaintiffs Kris and Joel Paffrath, by their attorneys, Pfefferle Kane LLP, as and for their
complaint against Defendants, state and allege as follows:
TURISDICTIONAL AND GENERAL ALLEGATIONS
1.
Plaintiffs Kris and Joel Paffrath are individuals, who at all times relevant hereto,
resided at 13392 172°`~ Avenue NE, Spicer, Kandiyohi County, Minnesota 562$$(the
`Residence").
2.
Upon information and belief, Defendant Trifecta Deals Corporation ("Trifecta
Deals") is a corporation, which is duly organized in the State of New York, with its principal
place of business located at l lfi West 23`d Street, New York, New York 10011 and/or 2$ West
27`h Street, Ground Floor, New York, New York 1001. Upon information and belief, Trifecta
Deals is in the business of distributing, marketing, and selling hoverboards, including conducting
Internet sales. Upon information and belief, Trifecta Deals is a company conducting business
within the State of Minnesota, including entering and selling its products into Minnesota's
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stream of commerce by distributing, marketing, and selling them in Minnesota by way of its
interne[ sits, www.trifectadeals.com.
3.
Upon information and belief, Defendant Ray Lee is an individual who is a
manager, corporate officer, director, shareholder, and/or owner of Trifecta Deals, who at all
times relevant hereto was residing in New York, New York. Upan information and belief, at all
times relevant hereto, Ray Lee was conducting company business within the State of Minnesota,
including marketing and advertising his products to Minnesota residents and by entering his
products into entering his products into Minnesota's stream of commerce by distributing,
marketing, and selling them in Minnesota by way of his Internet site, www.trifectadeals.com.
4.
Upon information and belief, Defendant Daniel Lee is an individual who is a
corporate officer, director, shareholder, and/or owner of Trifecta Deals, who at all times relevant
hereto was residing in I~ie~w York, New York. Upon information and belief, at all times relevant
hereto, Daniel Lee was conducting company business within the State of Minnesota, including
marketing and advertising his products to Minnesota residents and by entering his products into
Minnesota's stream of commerce by distributing, marketing, and selling them in Minnesota by
way of his Internet site, www.trifectadeals.com..
5.
Upon information and belief, at the present time, Defendants John Dne, Jane Roe
and Mary Roe are the fictitious names for unknown corporate officers, directors, shareholders,
and/or owners of Trifecta Deals Corporation, with an unknown address and unknown state of
residence, who are engaged in the distributing, marketing and selling electronic products in the
State of Minnesota and pursuant to Rule 9.08 of the Minnesota Rules of Civil Procedure are
being inserted in place of the real and proper individual defendants, whose identity, as soon as it
y~
34-CV-16-560
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Kandiyohi County, MN
is ascertained, will be substituted in place of John Doe, Jane Roe and Mary Roe, by way of their
Internet site, www.trifectadeals.com.
FAC'T'UAL ALLEGATIONS
6.
Upon information and belief, Defendants Ray I.ee, Daniel Lee, John Doe, Jane
Roe and Mary Roe are corporate officers, directors, shareholders, and/or owners of Trifecta
Deals who are personally liable for the obligations of their corporation.
7.
Upon information and belief, Defendants Ray Lee, Daniel Lee, John Doe, Jane
Roe and Mary Rae use various assumed names and business names, including but not limited to
Icon Q Direct Corporation and Cowboy Distributors USA Corporation, to serve their business
pll]~lOSe S.
8.
Upon information and belief, Defendant Trifecta Deals' corporate headquarters is
merely a virtual office space without an actual office structure, assistants or other corporate
formalities customary for a corporation such as Trifecta Deals.
9.
On or about May 25, 2016, Plaintiffs purchased a 6.5" Shiny Chrome Smart Self-
Balancing Electric Hover Board Unicycle 2 Wheel(Gold) hoverboard (the "Hoverboard")for
$229.99 from Trifecta through an Internet purchase at www.trifectadeals.com.
10.
On or about May 25, 2016, the Hoverb~ard was shipped to Plaintiffs' home,
Order No. 1626, by Trifecta Deals from its address at 28 West 27`h Street, Ground F1oorCowboy, New York, New York 1001.
11.
Prior to May 25, 2016, Plaintiffs and their son had visited the Trifecta Deals
website at www.trifectadeals.com while shopping for a hoverboard, and observed, among other
things, that Trifecta Deals advertised that it had ahigh-star rating, that its products were safe,
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34-CV-16-560
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Kandiyohi County, MN
that its products were inspected and tested, that it provided quality products directly from factory
partners at the lowest prices, and that it provided active customer support and service.
12.
Plaintiffs decided to purchase a hoverboard for their son, in part, due to the
content of the advertisements set forth on the Trifecta Deals website, as well as the statements of
product safety provided on the Trifecta Deals websit~, including the warranty, and that Trifecta
Deals had not encountered one fire-related issue with the hoverboards it sells.
13.
On July 21, 2016, while the Hoverboard was plugged in and charging, it ignited a
fire in Plaintiffs' kitchen resulting in significant damages to Plaintiffs' home and property° in
excess of $50,000.
14.
On July 27, 2016, Trifecta Deals was provided "Notice of a Claim" via email at
Ray~«%trifectadeals.com and operations(c~trifectadeals.com, and by FedEx shipment delivery,
signature required, and on July 28, 2016, Ray Lee, Manager of Trifecta Deals, signed to receive
the "Notice of Claim" letter that was delivered by FedEx to Ray Lee at 116 West 23`d Street,
Office 504, New York, New York 10001.
15.
The July 27, 2016 "Notice of Glaim" letter provided notice of an inspection of the
loss site at Plaintiffs' home to take place on August 17,?016 and invited and encouraged
Trifecta Deals, including Ray Lee, its other corporate officers and representatives, as well as its
liability insurer t~ attend the loss site inspection.
16.
Numerous additional attempts were made to follow-up with Trifecta Deals, its
corporate officers and representatives as well as its liability insurer to confirm attendance at the
August 17, 2016 loss site inspection, including telephone calls on July 26, 2016, August 11,
2016, and August 15, 2016, and emails to Ray Lee and Daniel L.ee on August 11, 201b and
August 12, 2016.
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34-CV-16-560
17,
Filed in Eighth Judicial District Court
12/27/2016 10:51:08 AM
Kandiyohi County, MN
Neither T'rifecta Deals, Ray Lee, Daniel Lee, Trif~cta Deals' other corporate
officers and representatives nor `I'rifecta Deals' liability insurer ever responded to Plaintiffs'
numerous attempts to contact Defendants to advise whether a representative of Trifecta Deals
would be attending the August 17, 2016 loss site inspection.
18.
Na one representing Trifecta Deals, its corporate officers, representatives or
liability insurer appeared for or otherwise attended the loss site inspection on August 17, 2016.
FIRST CAUSE OF ACTION —STRICT LIABILITY AGAINST DEFENDANTS
19.
Plaintiffs, for their first cause of action against Defendants reallege the above
Paragraphs as if fully set forth herein and further state as follows.
20.
Upon information and belief, Trifecta Deals and Defendants Ray Lee, Daniel I.ee,
John Doe, Jane Roe and Mary Roe advertised, marketed, sold and shipped the Hoverboard to
Plaintiffs and as entities in the chain of distribution are responsible for any design and/or
manufacturing defects in the Hoverboard and any failure to warn of hazards associated with the
operation of the Hoverboard.
21.
The Hoverboard was defective and unreasonably dangerous in design and
manufacture, and failed to warn of hazards associated with it and was sold by Defendants in a
defective condition, unreasonably dangerous for its intended use or reasonably foreseeable use.
22.
The Hoverboard was expected to and did. in fact, reach Plaintiffs without
substantial change in the condition in which it was designed, manufactured, distributed,
marketed, sold and shipped by Defendants, and therefore was in a defective condition when it
left the possession of Defendants.
23.
The defect was in a condition not contemplated by Plaintiffs and made the
product unreasonably dangerous to Plaintiffs.
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On July 21, 2016, the Hoverboard, while being operated in the manner and under
24.
conditions reasonably foreseeable to Defendants, directly, proximately, and foreseeably caused
the fire at Plaintiffs' home.
25,
As a direct, proximate, and foreseeable result of the defective condition of the
Hoverboard, a fire occurred that resulted in damage to Plaintiffs' home and property in excess of
$SQ000.
SECOND CAL`SF OF ACTION —NEGLIGENCE AGAINST DEFENDANTS
26.
Plaintiffs for their second cause of action against Defendants, reallege the above
Paragraphs as if fully set forth herein and further state as follow.
27.
On July 21, 2016, as a result of the negligence of Defendants in the design,
manufacture, failure to warn, marketing, sale and distribution of the Hoverboard, a fire occurred
in Plaintiffs' home, referred to above, as a result of which Plaintiffs sustained damage to their
real and personal property.
28.
AS entities in the chain of distribution of the Hoverboard, Defendants are
responsible for the negligence in the design and manufacture of the Hoverboard.
29.
As a direct and proximate result of said negligence of Defendants, all as referred
to above, Plaintiffs sustained damage to their real and personal property in an amount in excess
THIRD CAUSE OF ACT10N —VIOLATION OF MINNESOTA CONSUMER
FRAUD ACT AGAINST DEFENDANT TRIFECTA DEALS CORPORATION
30.
Plaintiffs far their third cause of action against Defendant Trifecta Deals
Corporation, reallege the above Paragraphs as if fully set forth herein and further state as
follows.
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34-CV-16-560
31.
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Kandiyohi County, MN
Trifecta Deals falsely represented material facts about the Hoverboard to
Plaintiffs through its Internet website when iC stated on www.trifectadeals.com that that its
products were safe, that ICs producCs were inspected and tested, that it provided quality products
directly from factory partners at the lowest prices, and that it provided active customer support.
32.
Upon information and belief, at the time that Trifecta Deals sold the Hoverboard
to Plaintiffs, Trifecta Deals either did not know and/or misrepresented that its producks, including
the Hoverboard sold to Plaintiffs, were safe, had been tested for safety and had never been
involved in fire-related incidences, without making Plaintiffs aware of these facts.
33.
Thus, the statements nn the Trifecta Deals website were false representations
because the Hoverboard ignited a fire at Plaintiffs' home.
34.
Trifecta Deals made the false representations on its website intending that
Plaintiffs would rely upon them and purchase the Hoverboard.
35.
Plaintiffs did rely and act nn Trifecta Deals' false representations when they
purchased the Hoverboard.
36.
Trifecta Deals' conduct violates the Minnesota Consumers Fraud Act, Minnesota
Statutes sections 325.F.68-70 and is the proximate cause of Plaintiffs' damages, expenses and
attorney fees, in excess of $50,000.
37.
By virtue of Minnesota Statutes section 8.31, subdivision 3a, Plaintiffs are entitled
to bring a civil cause of action for Trifecta Deals' violation of the Minnesota Consumers Fraud
Act and recover damages, together with costs and disbursements, including attorney's fees and
other equitable relief as determined by Court.
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34-CV-16-560
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Kandiyohi County, MN
FOURTH CAUSE OF ACTION —
VIOLATION OF MINNESOTA CONSUMER FRAUD ACT
AGAINST DEFENDANTS
I~1Y LEE,DANIEL LEE,JOHN DOE.JANE ROE AND MARY ROE
38.
Plaintiffs for their fourth cause of action against Defendants Ray Lee, Daniel Lee,
John Dae, Jane Roe and Mary Rot, reallege the above Paragraphs as if fully set forth herein and
further state as follows.
39.
Defendants Ray Lee, Daniel Lee, John Doe, Jane Roe and Mary Roe falsely
represented material facts about the Hoverboard to Plaintiffs through their internee website when
they stated on www.trifectadeals.com that that their products were safe, that their products were
inspected and tested, that Choy provided quality products directly from factory partners at the
lowest prices, and that they provided active customer support.
40.
Upon information and belief, at the time that Defendants Ray Lee, Daniel Lee,
John Doe, Jane Roe and Mary Roe sold the Hoverboard to Plaintiffs, Defendants Ray L.ee,
Daniel Lee, John Doe, Jane Roe and Mary Roe either did not know and/or misrepresented that
their products, including the Hoverboard sold to Plaintiffs, were safe, had been tested for safety
and had never been involved in fire-related incidences, without making Plaintiffs aware of these
facts.
41.
Thus, the statements made by Defendants Ray Lee, Daniel Lee, John Doe, Jane
Roe and Mary Roy on their Trifecta Deals website were false representations because the
~~overboard ignited a fire at Plaintiffs' home causing significant damage to Plaintiffs' real and
personal property.
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34-CV-16-560
42.
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Kandiyohi County, MN
Defendants Ray Lee, Daniel L.ee, John Doe, Jane Roe and Mary Roe made the
false representations on their Trifecta Deals website intending that Plaintiffs would rely upon
them and purchase the Hoverboard.
43.
Plaintiffs did rely and act on the false representations made by Defendants Ray
Lee, Daniel Lee, John Doe, Jane Roe and Mary Roe when they purchased the Hoverboard.
44.
The conduct of Defendants Ray Lee, Daniel Lee, John Doe, Jane Roe and Mary
Roe violates the Minnesota Consumers Fraud Act, Minnesota Statutes sections 325.F.68-7U and
is the proximate cause of Plaintiffs' damages, expenses and attorney fees, in excess of $SQ,00~.
45.
By virtue of Minnesota Statutes section 8.31, subdivision 3a, Plaintiffs are entitled
to bring a civil cause of action for the violation of the Minnesota Consumers Fraud Act by
Defendants Ray Lee, Daniel L.ee, John Doe, Jane Roe and Mary Roe and recover damages,
together with costs and disbursements, including attorney's fees and other equitable relief as
determined by Court.
FIFTH CAUSE OF ACTION —PERSONAL LIABILITY OF
MARY ROE —
DEFENDANTS RAY LEE,DANIEL LEE..iOliN D4E.SANE ROE
PIERCETHE CORPORATE VEIL
46.
Plaintiffs for their Fifth cause of action against Defendants Ray Lee, Daniel Lee,
.Iohn Doe. Jane Roe and Mary Roe, reallege the above Paragraphs as if fully set forth herein and
further state as follows.
47.
Defendants Ray L,ee, Daniel Lf;e, John Doe, Jane Roe and Mary Roe have
individual responsibility for running the Trifecta Deals corporation and making important
business decisions including protecting the company and providing customers with appropriate
compensation if injured or damaged by defects in any of the products they sell.
~~
34-CV-16-560
48.
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Kandiyohi County, MN
Defendants Ray I.ee, Daniel I.ee, John Doe, Jane Roe and Mary Roe knew or
should have known that hoverboards are prone to causing fires and that there existed a possibility
that their products could do the same. Yet, upon information and belief, Defendants Ray I.ee,
Daniel Lee, John Doe, Jane Roe and Mary Roe ignored the dangers and failed to protect their
customers by purchasing appropriate liability insurance for Trifecta Deals Corporation or
otherwise setting aside appropriate and separate corporate funds to adequately compensate
customers for damages caused by their products.
~9.
The failure of Defendants Ray Lee, Daniel Lee, John Doe, Jane Roe and Mary
Roe to adequately capitalize and insure themselves and/or Trifecta Deals Corporation for
foreseeable liabilities renders them personally liable to Plaintiffs for the property damage caused
by the July 21, 2Q16 fire, and unprotected by the corporate veil.
WHEREFORE,Plaintiffs demand judgment against Defendants Trifecta Deals
Corporation, and Ray I.~e, Daniel Lee, John Doe, Mary Roe and Jane Roe individually, jointly
and severally, in an amount in excess of $50,000, together with Plaintiffs costs, disbursements
and attorney's fees incurred herein and prejudgment interest thereon, and for any other relief the
Court deems just and equitable.
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34-CV-16-560
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r",.
PFEFFE ..E KANE LL,~'
f~
Dated: ~c,tober 18, 2016
~~~~
1
~
~
Steven J. Pfefferle, #17324~~~
Jessica K. Allen,#0386843
1(KJ North Sixth Street
600A Butler Square Building
Minneapolis, MN 55403
612-573-3000
k ~ 4~~~
~
~-~
Attorneys far Plaintiffs Joel rind Kris Paffruth
ACKNOWLEDGMENT REQUIRED BY
MINN.STAT.§ 549.211, subd. 2
The undersigned hereby acknowledges that costs, disbursements, and reasonable attorney
and witness fees may be awarded to the opposing party or parties herein pursuant to Minnesota
Statutes Section 59.211,subdivision 2, if the court should find that the undersigned acted in bad
faith; asserted a claim or defense that is frivolous and that is costly to the other party; asserted an
unfounded position solely to delay the ordinary course of the ~r~?ce~din~;s or to harass; or
committed a fraud upon the court.
~,
4
F~
Dated:
~ ~'
'
~
I ~ ~\
~
~~
`~
~.~. ~_~,
Steven J. PCefferle, #lip:Z~1
, 2016
'~
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34-CV-16-560
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Kandiyohi County, MN
STATE OF MINNESOTA
AFFIDAVIT OF SERVICE
COUNTY OF HENNEPIN
Jl~~rn~o LF~a~S~v~~~s
Mark Miller, being duly sworn, on oath says:
that on October 31, 2016, at 10:42 AM he served the attached:
Summons and Complaint upon:
Trifecta Deals Corporation, a New York corporation, therein named, personally at:
60 Empire Dr., #100, St. Paul, County of Ramsey, State of Minnesota, by handing to
and leaving with ,The Office of the Secretary of State, an expressly authorized agent
for said Trifecta Deals Corporation, a New York corporation, after furnishing proper
fees, a true and correct copy thereof.
(~,,,~~ ~i^~' L~U~-~ Ia l 3 ~ l 2016
Mark Miller, Process Server
Subscribed and sworn to before me on
~~=`"`~ .
WILLIAM R. JENSEN
'
3 NOTAftY PUBLIC -MINNESOTA
^`
, ;~
My Commission Expires
January 31, 2017
~:--:
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"2123590 -1"
-1-
RE: 224.19601 (SJP)