Labor Smart Inc (LTNC)

[stevenmaese]

As requested:

Today we had arguments on both Labor Smart's and our motions for summary judgment. I won't bury the headline: We won three causes of action, Labor Smart won two.

Labor Smart successfully dismissed our breach of good faith and fair dealings claim and our abuse of process claim.

We won three breach of contract claims: Inadequate share reserves; Liquidating branches; and Borrowing. Damages have yet to be determined.

As for liquidated damages, the judge ruled our the liquidated damages provision of the note is not unconscionable, meaning we are entitled to liquidated damages. He did limit the liquidated damages time to as little as 40 days but no more than about 100 days.

The judge also ordered party present mediation by February 28th, so Ryan is coming back to Salt Lake.

Any questions?