USSD Receives Two Consecutive Key Rulings in Attempted Business Takeover Ca

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”).

Online PR News – 03-February-2011 – – 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 www.ussd.com.

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Diane Rumbaugh
California
805-493-2877