Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 1 of 19

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION BENJAMIN BURGESS, RHONDA BURGESS, HEIDI HOWARD, JOYCE MARTIN, BETH KARAMPELAS, TERRI DACY, and MICHAEL DACY, individually and on behalf of all others similarly situated, Plaintiffs, vs. RELIGIOUS TECHNOLOGY CENTER, INC., ASSOCIATION FOR BETTER LIVING AND EDUCATION INTERNATIONAL, NARCONON INTERNATIONAL, and NARCONON OF GEORGIA, INC., Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

CIVIL ACTION NO. 1:13-cv-02217

PLAINTIFFS INITIAL DISCLOSURES Plaintiffs make the following initial disclosures pursuant to Fed.R.Civ.P. 26(a)(1) based upon the information now reasonably available to them, and specifically reserve the right to supplement the disclosure pursuant to Fed.R.Civ.P. 26(e) based upon further investigation or upon the Defendants disclosures, supplemental disclosures, and/or discovery responses:

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 2 of 19

1. State precisely the classification of the cause of action being filed, a brief factual outline of the case including Plaintiffs contentions as to what Defendants did or failed to do, and a succinct statement of the legal issues in the case. RESPONSE: Plaintiffs, Benjamin Burgess, Rhonda Burgess, Heidi Howard, Joyce Martin, Beth Karampelas, Terri Dacy, and Michael Dacy, filed their Complaint individually and on behalf of the class of others similarly situated, against Defendants Religious Technology Center, Inc. (RTC), Association for Better Living and Education International (ABLE), International, and Narconon of Georgia, Inc. (NNGA), asserting claims sounding in fraud, contract, quasicontract, and negligence, as well as Georgias Racketeer Influence and Corrupt Organizations (RICO) statute, O.C.G.A. 16-14-1, et seq. Plaintiffs and the proposed class members paid money to one or more of the Defendants to enroll in the Narconon program at NNGA, and to cover costs associated with books, housing, and related goods and services. The Narconon program was established in 1966 as a drug and alcohol rehabilitation program based on the writings of L. Ron Hubbard, a science-fiction writer and the founder of the Church of Scientology. Narconons treatment for drug and alcohol addicts
2

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 3 of 19

is based exclusively on Hubbards writings, also known as technology or tech. Narconons proponents believe that strict adherence to the Hubbard technology alone will completely address the rehabilitation needs of its patients. Therefore, patients receive no counseling or education in drug and alcohol rehabilitation, and the therapeutic discussion of drugs and their effects is actually discouraged. Defendant International owns, licenses, operates, and otherwise directs drug and alcohol rehabilitation services at Narconon centers, including NNGA, and thereby exercises direct control over the time, manner, and method of Defendant NNGAs operations. Defendant International, in turn, is controlled by Defendant ABLE, an umbrella group that oversees the drug and alcohol rehabilitation, education, and criminal-justice activities of the Church of Scientology. Finally, Defendants ABLE, International, and NNGA are controlled by Defendant RTC, which oversees Church of Scientology activities and serves as the final arbiter and enforcer of orthodoxy for all Scientology-related activities and organizations. As referenced above, Plaintiffs seek to represent a class defined as all individuals who have paid money to one or more of the Defendants to procure drug or alcohol rehabilitation services at NNGA for themselves or others, and to cover costs associated with books, housing, and other related or ancillary goods and

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 4 of 19

services. Plaintiffs have reserved the right to amend the description of the class following discovery. Through its websites, marketing materials, advertising, and personnel, the Defendants have repeatedly made a vast array of false and misleading claims and employed other deceptive techniques in their dealings with drug and alcohol addicts and their families. These misrepresentations pertain to: the effectiveness of the Narconon program, which consists of a sauna and vitamin program and written training routines originally devised to teach communication skills to Scientologists; Narconons purported success rate; Narconons connection to Scientology; the certifications of NNGAs staff; NNGAs housing and drug-free environment; and the nature of its government licensing. Defendants misrepresentations directly pertain to Plaintiffs claims of fraud, negligence per se, and civil racketeering. Likewise, Defendants failure to deliver legitimate, properly licensed drug and alcohol rehabilitation services directly pertains to Plaintiffs breach of contract and quasi-contract claims. Each patient at NNGA enrolls for an average of three to four months at a cost of approximately $10,000 to $50,000, exclusive of costs associated with books, room, board, and other related costs. However, almost none of the patients who complete Narconons unscientific and dangerous program will have achieved
4

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 5 of 19

sobriety or sufficient tools for managing their addictions. As a direct result of the actions described herein, Plaintiffs and all class members suffered actual physical, mental, and economic harm, and they seek restitution, compensatory damages, and punitive damages, in an amount to be determined by the enlightened conscience of the jury and as demonstrated by the evidence. Plaintiffs seek damages from the Defendants, which acted in concert either as agents or principals of one another, partners, joint venturers, or co-conspirators. 2. Describe in detail all statutes, codes, regulations, legal principles, standards and customs or usages, and illustrative case law which Plaintiffs contend are applicable to this action. RESPONSE: Plaintiffs rely upon the general principles of fraud contained in O.C.G.A. 51-6-1 et seq. As to Plaintiffs allegation of negligence per se, Plaintiffs rely on O.C.G.A. 51-1-6 (setting forth when the breach of a legal duty provides a cause of action), the Drug Abuse Treatment and Education Act, O.C.G.A. 26-5-1 et seq., Ga Comp. R. & Regs. 290-4-2-.02 to -.21 (setting forth licensing requirements for drug and alcohol rehabilitation facilities), and the principals illustrated by Walter v. Orkin Exterminating Co., 385 S.E.2d 725 (Ga. Ct. App.
5

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 6 of 19

1989) (providing that, for the violation of a statute or regulation to amount to negligence per se, Georgia courts look to the purposes of the legislation to determine: (1) whether the injured person falls within the class of persons it was intended to protect; and (2) whether the harm complained of was the harm it was intended to guard against). With respect to Plaintiffs contract and quasi-contract claims, Plaintiffs rely on general principles of Georgia contract law, including those illustrated in O.C.G.A. 13-1-1 (definition of a contract), 13-2-3 to -4 (intention of the parties) 13-3-42 (requirement of exchange), and Fisher v. Toombs Cnty. Nursing Home, 479 S.E.2d 180 (Ga. Ct. App. 1996) (providing that a contract may consist of multiple documents and implied terms). Plaintiffs also rely on principles applicable to unjust enrichment, as set forth in O.C.G.A. 9-2-7 (implied obligations to pay) and Cochran v. Ogletree, 536 S.E.2d 194 (Ga. Ct. App. 2000) (setting forth elements of unjust enrichment), and to promissory estoppel, as set forth in O.C.G.A. 13-3-44 (promises reasonably inducing action or forbearance) and Houston v. Houston, 600 S.E.2d 395 (Ga. Ct. App. 2004) (setting forth elements of promissory estoppel). Plaintiffs also rely upon Georgias RICO statute, O.C.G.A. 16-14-1, et seq., and the predicate acts of theft by deception, mail/wire fraud, false statements
6

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 7 of 19

to a government agency, credit card fraud, and identity theft. Plaintiffs have sought the trebling of all compensatory damages as demanded by the provisions of Georgias RICO statute, and they have alleged that an award of punitive damages is warranted, pursuant to O.C.G.A. 51-12-5.1. 3. Provide the name and, if known, the address and telephone number of each individual likely to have discoverable information that you may use to support your claims or defenses, unless solely for impeachment, identifying the subjects of the information. (Attach witness list to Initial Disclosures as Attachment A). RESPONSE: See Attachment A. 4. Provide the name of any person who may be used at trial to present evidence under Rules 702, 703, or 705 of the Federal Rules of Evidence. For all experts described in Fed.R.Civ.P. 26(a)(2)(B), provide a separate written report satisfying the provisions of that rule. (Attach expert witness list and written reports to Responses to Initial Disclosures as Attachment B). RESPONSE: Plaintiffs have not yet determined who will be called as an expert in this matter. Plaintiffs will supplement this response if necessary.
7

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 8 of 19

5. Provide a copy of, or a description by category and location of, all documents, data compilations or other electronically stored information, and tangible things in your possession, custody, or control that you may use to support your claims or defenses unless solely for impeachment, identifying the subjects of the information. (Attach document list and descriptions to Initial Disclosures as Attachment C). RESPONSE: See Attachment C. 6. In the space provided below, provide a computation of any category of damages claimed by you. In addition, include a copy of, or describe by category and location of, the documents or other evidentiary material, not privileged or protected from disclosure, on which such computation is based, including materials bearing on the nature and extent of injuries suffered, making such documents or evidentiary material available for inspection and copying as under Fed.R.Civ.P. 34. (Attach any copies and descriptions to Initial Disclosures as Attachment D.) RESPONSE: Plaintiffs damages include economic and non-economic damages for actual physical, mental, and economic harm. Plaintiffs are unable to compute their damages at this point in time because they depend on potential class
8

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 9 of 19

members, continue to accumulate and, in some instances, depend upon the enlightened conscience of the jury. 7. Attach for inspection and copying as under Fed.R.Civ.P. 34 any insurance agreement under which any person carrying on an insurance business may be liable to satisfy part or all of a judgment which may be entered in this action or to indemnify or reimburse for payments made to satisfy the judgment. (Attach copy of insurance agreement to Initial Disclosures as Attachment E). RESPONSE: Plaintiffs are not in possession, custody or control of such information. 8. Disclose the full name, address, and telephone number of all persons or legal entities who have a subrogation interest in the cause of action set forth in Plaintiffs cause of action and state the basis and extent of such interest. RESPONSE: Plaintiffs are not in possession of sufficient information to determine if a valid subrogation or reimbursement claim exists. This 1st day of August, 2013.

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 10 of 19

HARRIS PENN LOWRY LLP /s/ Jeffrey R. Harris _________________________ JEFFREY R. HARRIS (Jeff@hpllegal.com) Georgia Bar No. 330315 JED D. MANTON (Jed@hpllegal.com) Georgia Bar No. 868587 1201 Peachtree Street, N.E. 400 Colony Square, Suite 900 Atlanta, GA 30361 Telephone: (404) 961-7650 Facsimile: (404) 961-7651 FRANKLIN LAW, LLC REBECCA C. FRANKLIN (Rebecca@franklinlawllc.com) Georgia Bar No. 141350 1201 Peachtree Street, N.E. 400 Colony Square, Suite 900 Atlanta, GA 30361 Telephone: (404) 961-5333 Attorneys for Plaintiffs

10

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 11 of 19

CERTIFICATION OF COMPLIANCE Pursuant to the Local Rules of the Northern District of Georgia, the abovesigned counsel certifies that the foregoing document complies with all formatting requirements of the Local Rules and further certifies that this document is printed in Times New Roman font, 14-point, pursuant to Local Rule 5.1(C).

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 12 of 19

ATTACHMENT A Witness List: Discovery in this case is ongoing, and Plaintiffs reserve the right to supplement this disclosure in accordance with the Federal Rules of Civil Procedure. Plaintiffs identify the following individuals likely to have discoverable information: 1. The parties; 2. All individuals identified by Defendants in Defendants Initial Disclosures; 3. The individuals for whom the Plaintiffs procured NNGAs drug and rehabilitation services: Joshua Burgess, Jordon Howard, Kirk Waters, and Eric Martin; 4. Abby Bailey; 5. Allison Riepe 19 Drury Drive, Key Largo, FL 33037; 6. Amy Scobee; 7. Bob Schmidt 5394 Valley Mist Trace, Norcross, GA 30092; 8. Brad Taylor 95 North Broad Street, Apt. 20, Lexington, TN 38351;

12

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 13 of 19

9. Brandon Ormsby 3312 LaSalle Tr., Michigan City, IN 46360 Tel: 219-873-6023; 10. Brenda Evans; 11. Clark Robert Nixdorf Carr; 12. Claudia Arcabascio; 13. Dana Kuebler; 14. David Miscavige; 15. Deb Danos; 16. Debra MacIntyre; 17. Don Delgado 1227 Barrington Oaks Pl., Roswell, GA 30075; 18. Fritz Alders; 19. Gene Adams; 20.Haydn James; 21. Isaac Zrihen; 22. Jamie Thompson 135 Dawn Circle, Brunswick, GA Tel: 912-261-1524 Cell: 912-270-9776; 23. Jennifer Elmore Tel: 678-446-5322;

13

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 14 of 19

24. Jette McGregor; 25. Joan Daniel; 26. Joseph Schroeder; 27. Justin Shope; 28. Linda Hall; 29. Lisa Mooty Tel: 321-637-5541; 30. Lucas Catton; 31. Maria Delgado 1536 Pinebreeze Dr., Marietta, GA 30062; 32. Marc Headley; 33. Mark Becker; 34. Mark ODonnell Florida Department of Corrections Brevard County Drug Court and PTI Programs Titusville Probation Office (18-0) 2853 Garden St., Titusville, FL 32796 Tel: 321-264-4073; 35. Mary Morton; 36. Mary Rieser; 37. Matt Crosby; 38. Nick Parsons 394 Stewart Ave., Marietta, GA 30064;
14

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 15 of 19

39. Nina Edidin Community Legal Services 201 South 1st Avenue Yuma, AZ 85364 Tel: 928-782-7511 x 2175; 40. Patti Elmore; 41. Randall Shively; 42. Randy Taylor 133 Whipperwill Lane Decaturville, TN 38329 Cell: 731-733-1130; 43. Rhonda Riepe; 44. Robin Muse; 45. Ryan Lovelady Tel: 334-410-2101; 46. Stephen Alan Kent, Ph.D. Department of Sociology University of Alberta Edmonton, Alberta, Canada T6G 2H4; 47. Susan Blank, M.D. 1846 Old Norcross Road, Suite 100 Lawrenceville, Georgia 30044 Tel: 770-696-9862; 48.Terris Alene; 49. Tommy Zapata;
15

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 16 of 19

50. Tracey Stepler 111 Warm Springs Circle Roswell, GA; 51. Yarko Manzaneres; 52.Yet-to-be identified potential class members, as well as the individuals for whom the class members procured NNGAs rehabilitation services; 53.Plaintiffs will provide a list of damages witnesses which include friends, family members and former co-workers.

16

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 17 of 19

Attachment C Document List and Description: 1. Any and all documents and category of documents identified or produced by any Defendant; 2. Plaintiffs proof of payments to Narconon of Georgia, Inc.

17

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 18 of 19

CERTIFICATE OF SERVICE I hereby certify that I have this day electronically filed the foregoing PLAINTIFFS INITIAL DISCLOSURES with the Clerk of Court using the CM/ECF system which will automatically send e-mail notification of such filing to the following attorney of record: Cari K. Dawson, Esq. Daniel F. Diffley, Esq. David B. Carpenter, Esq. Alston & Bird LLP 1201 W. Peachtree Street Atlanta, GA 30309-3424 Attorneys for Narconon International and Association for Better Living and Education International Edward H. Lindsey, Jr., Esq. James T. Hankins, Esq. Goodman McGuffey Lindsey & Johnson, LLP 3340 Peachtree Road NE, Suite 2100 Atlanta, GA 30326-1084 Matthew S. Coles, Esq. Thomas M. Barton, Esq. Coles Barton LLP 150 South Perry Street, Suite 100 Lawrenceville, GA 30046

Attorneys for Narconon International and Association for Better Living and Education International John K. Larkins, Jr., Esq. William Taylor McNeil, Esq. J.D. Dalbey, Esq. Chilivis, Cochran, Larkins & Bever LLP 3127 Maple Drive NE Atlanta, GA 30305

Attorneys for Narconon of Georgia, Inc. Attorneys for Narconon of Georgia, Inc. John H. Fleming, Esq. Valerie S. Sanders, Esq. Stacey M. Mohr, Esq. Sutherland Asbill & Brennan LLP 999 Peachtree Street NE, Suite 2300 Atlanta, GA 30309-3996 Attorneys for Religious Technology Center, Inc. This 1st day of August, 2013.

Case 1:13-cv-02217-SCJ Document 22 Filed 08/01/13 Page 19 of 19

HARRIS PENN LOWRY LLP /s/ Jeffrey R. Harris _________________________ JEFFREY R. HARRIS (Jeff@hpllegal.com) Georgia Bar No. 330315 JED D. MANTON (Jed@hpllegal.com) Georgia Bar No. 868587 1201 Peachtree Street, NE 400 Colony Square, Suite 900 Atlanta, GA 30361 Telephone: (404) 961-7650 Facsimile: (404) 961-7651