Hollund countersued by Briner for intimidation
2008-08-15 16:10 ET - Street Wire
by Mike Caswell
Controversial Vancouver lawyer John Briner denies allegations that he breached a contract to deliver 98 per cent of a pink sheets company, Hollund Industrial Inc., to Langley businessmen Lonnie Hayward. He has also filed a counterclaim, alleging that somebody has since tried to intimidate him into cancelling Hollund share certificates with a threatening note.
Hollund's suit
Hollund filed the case in B.C. Supreme Court on June 17, 2008. It alleged that Mr. Briner breached a contract to deliver 98 per cent of the company's shares to Mr. Hayward, and that Vancouver businessman Erwin Liem's company ended up holding 25.5 million of its shares.
According to the complaint, Mr. Briner agreed to deliver certificates for 98 per cent of Hollund in an Oct. 30, 2007, agreement, but he failed to deliver one in the name of President's Corporate Group Inc., a private company Mr. Liem controls. Hollund was then known as Carver Corp.
When Hollund changed its name, it also split 17:1. This turned the 1.5 million shares that President's Corporate Group controlled into 25.5 million.
Hollund claimed that Mr. Liem has since divided the stock into five separate certificates, and now has 17 million shares held in the name of Rahn and Bodmer Banquiers, a Swiss brokerage, and 8.5 million in the registration name Cede & Co.
In addition to Mr. Liem and Mr. Briner, the suit named as defendants Rahn and Bodmer and Oregon transfer agent Transfer Online Inc.
Hollund sought damages, an interim injunction to keep the certificates from being further divided and a mandatory injunction ordering the return of the certificates. It also sought damages against Mr. Liem and Mr. Briner for conspiracy.
Briner's defence and counterclaim
Mr. Briner filed his defence and counterclaim at the Vancouver Law Courts on Aug. 13, 2008. In it, he denies the allegations, and makes a counterclaim for defamation and intimidation.
Mr. Briner claims that he carried out all of the services for Mr. Hayward, as instructed. He denies that he breached any agreement to deliver 98 per cent of the company, or that such an agreement even existed.
He also denies that he conspired with Mr. Liem, and says the allegation is "grossly defamatory" and "without foundation."
Mr. Briner says that Hollund and Mr. Hayward have suffered no loss, and if they have, they took no steps to mitigate it. He says the lawsuit states no cause of action, and he asks that it be dismissed with special costs.
The note
In his counterclaim, Mr. Briner says a threatening note arrived at his house on June 23, 2008, in a brown paper envelope marked "JOHN." The text was in a typed statement that said "225,000 USD certified cheque in the name of 'Jasmine Investments' in 5 days from today. We will consider this return on damages. Courier will pick up at John's office on day five." Mr. Briner says Jasmine Investments is a company owned by Mr. Hayward.
The note also instructed Mr. Briner to deliver certificates for 20.5 million shares to the transfer agent, with instructions to cancel them.
On the reverse, it allegedly had a hand-written statement in block letters, which read, "SOME PEOPLE ARE BOOK SMART AND LIFE STUPID JOHN." Mr. Briner says the note caused fear, alarm and emotional distress to his family.
The counterclaim is against Mr. Hayward, Hollund and Michael Lacy, Hollund's president.
In addition to the allegations of intimidation, Mr. Briner also claims that Hollund has defamed him. On June 25, 2008, the company published a news release announcing the lawsuit, and further stating that the company was granted a temporary restraining order preventing the transfer of 25.5 million shares.
It continued, stating that "because of the past conduct and questionable dealings relating to PCG, and because Mr. Briner and Mr. Liem improperly obtained the 25.5 million shares, the Company will suffer continuing and irreparable harm."
Mr. Briner says the news release was false and defamatory, and was a deliberate attempt to damage or destroy his reputation, "and to subject him to public shame and embarrassment." He says it meant he was untrustworthy, that he engaged in theft and that he was guilty of misappropriating property.
"By reason of the publication of the words, this Defendant has been seriously injured in his character, credit and reputation and he has suffered damage," the counterclaim reads.
Mr. Briner also alleges that he was granted 100,000 shares of Hollund as payment for his services, but the company cancelled them. He says they were then worth $30,000.
He claims damages for defamation, intimidation, breach of contract, plus aggravated, punitive and exemplary damages. He is represented by David Lunny of Devlin Jensen.
Liem's defence
Mr. Briner's co-defendant, Vancouver businessman Erwin Liem, also filed a statement of defence on Aug. 8. He denies allegations that he improperly obtained 25.5 million shares of Hollund, and says the lawsuit does not contain particulars of any improper behaviour, without which it should be thrown out.
Mr. Liem says he knows nothing about an agreement between Hollund and Mr. Briner. He denies that he and Mr. Briner engaged in any sort of conspiracy.
He admits that he owns 25.5 million shares of Hollund, but denies that they were improperly obtained. He also denies that Hollund or Mr. Hayward suffered any loss.
He asks that the suit be dismissed with special costs. He is represented by Vancouver lawyer John Frank.
AI
