Shareholders update on Lewin dispute.

Greetings HHSE Friends - we have received some shareholder emails asking “what’s next” and “what does this mean” regarding filings made by HHSE in the Lewin matter. 

Here’s the brief answer:

1).  Arkansas - the collection agent for Lewin has 21 days to oppose our motion for “stay of enforcement.” If  they oppose, a hearing will be scheduled for the judge to rule. If they don’t oppose, it’s expected that the HHSE motion will be granted. Meanwhile, enforcement is stayed by virtue of this motion and the actual facts in the case. 

2). New York - the HHSE attorney response in New York is much more complex as it involves four motions plus an affirmative defense and answers to all Discovery and Interrogatories that were ignored while Shefte was hospitalized in 2018. If for some reason the NY Court declines to reopen the case, all of these filings can be used in Arkansas, where we can open the case for adjudication under Arkansas law. The Lewin claim in New York was “breach of contract” - yet they were unable to produce a contract as HHSE only had a contract with the production company, and not with Lewin (who was providing P&A on behalf of the production company). 

As stated previously on this blog - our attorneys are confident in the HHSE position and that we will prevail. Already, we stopped their attempt to enforce a non-existent debt... so that’s a big victory. 

TIMING WISE – as a result of our clear victory in stopping the attempted writ actions in Arkansas (which could have possibly raised questions for the S.E.C. during the review period) we can now move to reinstate our corporate filing activities (Form 10, S1, Q1 on Edgar), as well as to commence Publicity and Outreach activities that had been on hold for the past two weeks.

This is a great time to be a HHSE shareholder – and a sad period for those betting against the company.

In an unrelated matter, the 2004 exam of former HHSE President Fred Shefte was completed yesterday - with the trustee and counsel disallowing attempts to obfuscate Shefte’s personal circumstances with Hannover House business activities and ventures. This hearing went exactly as predicted on this blog.

We are invigorated with the new corporate mandate to swiftly attack and dismiss the four remaining default matters against the company (described in recent blogs). Armed with competent counsel and meritorious defenses in each case, we can now remove these perception threats and in the process, also remove about $4-mm in reserves that the company has held back off the balance sheet. In three of the four cases, we are also moving for sanctions and legal fees… so we hope to establish a precedent that we are no longer tolerating fraudulent claims against HHSE in litigation. It’s time to get these distractions off the HHSE / MyFlix plate. 

Much more good news to come!

Final Cabling / Wiring is underway for the new Dolby 7.1 Surround Studio Facility (previously mentioned in this blog). Watch for more news on production ventures, facilities and financing as part of a slate of upcoming HHSE / MyFlix News!

 

'

FACILITIES MANAGER:  So, do you just want a representative image of what the Post-Sound room and recording booths will look like when completed?

ERIC - Yeah, why show the work-in-progress before the walls are sound-proofed, before the windows are double-glassed, before the giant screen and mixer are installed? I want to hold the completed facilities reveal until after the corporate filings are posted.

FACILITIES MANAGER:  Yes, you have smart shareholders who will understand the use of a representative image.

ERIC - Our shareholders are smart. But there are stock chat board posters that don't reach room temperature I.Q.  Maybe for the cheap seats, we should show a few images of the work-in-progress?

Update On Removal of Legal Dispute Obstacles

Good Morning HHSE Friends & Followers - In furtherance to the company's current actions with our Form 10 and S1 filings, the past few days have been focused on affirmative actions to address, dispute or otherwise discharge five "foreign" (sister-state) default judgments. 

Counsel had previously advised that the company should provide detailed explanations of proposed actions to dispute these foreign defaults in the Form 10 and S1 documents. However, in response to an immediate attempt to enforce one of these actions, the company has now moved into full response mode in order to "stay" such enforcement activities. In the process of addressing this particular judgment, it was decided that the company will proceed ahead on making all of the additional filings for these four other foreign matters (even though, the process of making these forward steps on the remaining defaults is not urgently required and are not current obstacles to an expeditious filing of the company's Form 10 or S1 filings).  

1).  LEWIN (NY Default) - Filings have been made today in the Arkansas Courts - and additional pleadings will be made later this week in the New York courts - to set aside this foreign default. A copy of today's motion to the court in Arkansas from the Nixon & Alexander Law Firm is included below.

2).  JSJ INVESTMENTS (Dallas) - The company is filing the motion for dismissal on the basis of proof of satisfaction.

3).  DAISY WINTERS - SHUTTLEWOODS (Los Angeles) - Among other defenses being presented, the existence of an agreement to release the film's distribution rights in waiver of litigation is applicable and relevant.

4).  UPTONE PICTURES (Los Angeles) - The performance on the existing settlement agreement is one of several affirmative defenses to setting aside this confusing second-lawsuit on the same matter, and Plaintiff's ill-gotten judgment.

5).  HINDS-SHANKMAN (Los Angeles) - The requirement for full prepayment of legal fees, combined with never having received any bills from this firm (nor having the firm follow California Bar Association protocols requiring arbitration of billing disputes), are some of the defenses that are being presented in a motion to set-aside.

None of these five foreign default judgments are legitimate debts, and all were obtained through the Plaintiffs making material misrepresentations to their respective courts. Still, as the existence of a judgment - even if easily disputed and discharged - can be a blemish on the company's profile and misleading to unenlightened parties looking at HHSE. Accordingly, the decision was made to get rid of these distractions sooner-rather-than-later, so that the company's luster is bright and shiny for the incredible summer we have in store!

STAY TUNED!

(BELOW:  Response-Pleading filed in Washington County, Arkansas Courts today - May 18 - regarding a Motion to Stay enforcement of a foreign default judgment).  

 

IN THE CIRCUIT COURT OF WASHINGTON COUNTY, ARKANSAS

CIVIL DIVISION

 

 

BRUCE LEWIN                                                                                                     PLAINTIFF

 

VS.                                               CASE NO.: 72CV-18-3357

 

HANNOVER HOUSE, INC.;

MEDALLION RELEASING, INC.;

ERIC PARKINSON; and

D. FREDERICK SHEFTE                                                                           DEFENDANTS

 

 

DEFENDANTS’ MOTION TO SET ASIDE FOREIGN DEFAULT JUDGMENT, OR IN THE ALTERNATIVE, TO MODIFY THE JUDGMENT AND FOR STAY OF EXECUTION PENDING RULING ON SUCH MOTIONS

 

COME NOW the Separate Defendants, Hannover House, Inc., Medallion Releasing, Inc., Eric Parkinson (collectively “Separate Defendants”), by and through their attorneys, The Nixon & Alexander Law Firm, and for their Motion to Set Aside this Foreign (Sister-State) Default Judgment or, in the Alternative, to Modify the Judgment pursuant to Arkansas Rule of Civil Procedure 55, and to State Execution pursuant to Ark. Code Ann § 16-66-301, state as follows:

1.      Defendant Hannover House, Inc. is a Wyoming corporation, with its principal

place of business at 355 N. College Ave., Suite 4, Fayetteville, AR  72701. Hannover House, Inc. is publicly-traded company with stock on the OTC Markets exchange, and approximately 2,275 total shareholders.  Defendant Medallion Releasing, Inc. is an Arkansas corporation, and a wholly-owned subsidiary of Defendant Hannover House, Inc., which conducts business from its principal offices at 355 N. College Ave., Suite 4, Fayetteville, AR, 72701. Individual Defendant Eric Parkinson is a resident of Washington County, Arkansas.

2.      Plaintiff Bruce R. Lewin (“Lewin”) is a resident of the state of New York,

residing at 40 Channel Pond Court, Southampton, NY 11968. Defendants believe that Plaintiff Lewin is a member of the New York State registered entity BRL IV, LLC, with 185 E. 85^th St., # 15E, New York, NY, 10028 as its address for delivery of service.

3.      On October 15, 2018, the Supreme Court of the state of New York, County of

New York, entered a default and later a judgment (the “Judgment”) in favor of the Plaintiff against the above-described Defendants jointly and severally. Subsequently, the Judgment was registered in the Circuit Court of Washington County, Arkansas as a foreign default judgment from a sister state, and the case was assigned the above-described number.

4.      On April 28, 2021, Defendants Hannover House, Inc., Medallion Releasing,

Inc. and individual Eric Parkinson were served a notice that a motion for a Writ of Execution in favor of Plaintiff had been filed in this court. Individual Defendant D. Frederick Shefte was not listed on the Writ of Execution, ostensibly due to a February, 2021 personal bankruptcy filing by Shefte, which was motivated in part the result of excessive and past due medical bills.

5.      This Court should set aside or modify the amount of the Default Judgment, on

the following grounds:

            First, Lewin procured the Default Judgment through multiple fraudulent misrepresentations to the New York court. Lewin represented to the court that Lewin had an “agreement” with Defendants, wherein no such agreement exists; he represented that his complaint was a breach of contract case, yet was not able to produce a contract with Defendants; Lewin also claimed to the court that individual Defendants Parkinson and Shefte had issued him a “personal” guarantee in support of the non-existent agreement, even though Hannover House officers are expressly forbidden under corporate by-laws and OTC Markets guidelines from ever issuing any sort of personal guarantee; Lewin represented to the New York court that he had personally provided $1.3-million dollars to the Defendants, even though the supporting documentation in the New York case showed that Lewin did not provide any personal funds, but that an entity named BRL IV, LLC had provided $350,000 to Defendant Hannover House, Inc. and approximately $950,000 in additional funds in payment directly to third party vendors for marketing and distribution services performed on the theatrical, home video and Netflix release of the movie “Dancin’ It’s On” – a feature film which Defendants believe was produced with investment capital provided by Lewin. The funds paid by BRL IV, LLC – which is not a Plaintiff in the New York case – were for marketing and distribution services provided by Defendant Hannover House, Inc. for the benefit of production company East Side Story Films, LLC – which was also not a named party to the New York Case. Although Defendant Hannover House, Inc. acknowledges the receipt of $350,000 in fees on behalf of East Side Story Films, LLC, which were paid to Hannover House by BRL IV, LLC, on behalf of East Side Story Films, LLC, there is no agreement with any party for Hannover House to be obligated to return or repay its earned fees.  The only agreement that exists with Defendant Hannover House regarding the movie “Dancin’ It’s On” is with the production company, East Side Story Films, LLC of Florida.

            Second, Lewin obtained the default judgment in New York due to the lack of timely responses by Defendant D. Frederick Shefte, then President of Defendant Hannover House, under which job duties he was assigned, authorized and instructed with the responsibility to coordinate all necessary responses on behalf of all of the named Defendants. Shefte’s negligence in responding in a timely manner to the New York court issues is excusable and due primarily to his dire health condition during in 2018, which included at least four hospitalizations and a total of eighteen weeks at the Washington Regional Medical Center and the Walker Heart Institute. The New York court process was proceeding during the time frame that Shefte was physically and mentally incapacitated due to severe cardio-pulmonary issues, from which he ultimately survived but has not yet fully recovered. The lack of responses by Defendants is excusable neglect due to Shefte’s severe health challenges, and is grounds for the New York judgment to be set aside.

            Third, Defendants have engaged counsel in New York to move to set-aside the New York Judgment on various grounds, including those stated above. The attorney for the Defendants in the New York case is Raymond Ragues (“Ragues”), with offices at 33 W 19th St 4th floor, New York, NY 10011, tel. 917-921-1333.  Attorney Ragues believes that the motions he is filing on or about Wednesday, May 19, 2021 in New York will result in a re-evaluation of the merits of the default judgment, and that the New York court’s actions as such will negate the applicability and appropriateness of enforcement actions in Arkansas under the sister-state judgment precedents.

6.      This Court has full authority to set aside or modify the Default Judgment.  A

foreign judgment registered in Arkansas “is subject to the same procedures, defenses, and proceedings for reopening, vacating or staying as a judgment of a court in this state.” Ark. Code Ann. § 16-66-602; Nationwide Ins. Enterprise v. Ibanez, 368 Ark. 432, 246 S. W. 3d 883 (2007) (affirming Benton County Circuit Court’s order granting motion to set aside or reduce foreign default Judgment out of Washington state).

7.      Under Arkansas law, a court may set aside a default judgment previously

entered if the judgment is based on fraud [intrinsic or extrinsic], misrepresentation, or other misconduct of an adverse party, or if there is any other reason justifying relief from the operation of the judgment. See Ark. R. Civ. P. 55 (c) (3) and (4).

8.      A default judgment will be set aside where a defendant is lulled into a false

sense of security through fraud or misrepresentation on the part of the plaintiff. See McAllester v. Koban, 214 Ark. 14, 19, 214 S.W. 23d 500, 503 (1948). Defendants were told by David Winters, director of the film “Dancin’ It’s On” and manager of East Side Story Films, LLC that he was working with Lewin to placate his concerns that the critical response to “Dancin’ It’s On” was poorly received and that the film’s release would not be profitable. Defendants were lulled into a false belief as stated by David Winters that the Lewin case in New York was to be withdrawn, which proved later to have not been an accurate assessment. David Winters was the signatory on behalf of East Side Story Films, LLC for the film releasing agreement with Defendant Hannover House. During 2018, while Shefte was hospitalized and the Lewin case was proceeding without Defendant’s knowledge, Winters was communicating with Defendant Parkinson regarding a variety of new projects, including a multi-title distribution pact, and a new holiday feature film entitled “Nicholas Jingle” to star Johnny Depp and Angelina Jolie (both actors had previously worked with director David Winters in the past). Accordingly, Defendants were lulled into believing that Winter’s pledge to get the Lewin case withdrawn was both sincere and accurate.

9.      Toward its objective of obtaining the Default Judgment in New York, Plaintiff

Lewin represented to the court that: 

a. An agreement existed between the Plaintiff and Defendants (which is untrue);

b. That Plaintiff funded the release of the film “Dancin’ It’s On” (which is untrue as all of the release funding occurred through the entity BRL IV, LLC, which was not a party to the New York case);

c.  That “no monies had been received” even though all theatres were instructed by Defendant Hannover House to remit all payments directly to BRL IV, LLC at their registered address in New York City;

d.  That Defendants Parkinson and Shefte had issued “personal guarantees” despite the corporate prohibition on such an action.  In making these misrepresentations, Lewin abused the judicial process and is attempting to utilize the authority of this Court and the resources of Washington County to collect a debt that is not owed.

10. This Court should order a hearing on damages to review the actual contract

between Hannover House and East Side Story Films, LLC, as well as evidence of payments made by theatres and other parties and charges, and to rule on the proper status of the judgment. Pending hearing, this Court should stay execution of the judgment.

11. The stay of execution is necessary because Plaintiff’s local attorney, J. Brian

Ferguson, is attempting to take the physical assets of the Defendants, including all furniture, fixtures, computers and work equipment that Hannover House uses in its daily operations. Plaintiff’s local counsel is also attempting to enforce the writ against Defendant Parkinson in a manner which greatly exceeds the authority of a judgment creditor under New York and Arkansas law, which has expressed and specific exceptions for personal possessions, furnishings, work tools (including computers and cell phones) and limitations on what sort of vehicle can legally be attached under New York judgment enforcement laws. Any such execution at this time would cause the Defendants irreparable harm. On the other hand, Plaintiff Lewin will suffer no prejudice as the result of a modest stay to permit an orderly resolution of the issues and to avoid a gross injustice.

WHEREFORE, Separate Defendants respectfully request that this Court grant their Motion to Set Aside Default Judgment, or in the alternative, to Modify the Judgment, and to stay execution of the judgment pending further orders of this Court.

Respectfully submitted,

 

________________________________

                                                                        Stacy E. Alexander, ABA # 06259

                                                                        David G. Nixon, ABA #88048

                                                                        The Nixon & Alexander Law Firm

                                                                        4100 Wagon Wheel Rd.

                                                                        Springdale, AR  72762

                                                                        stacy@nixonlaw.com

                                                                        david@nixonlaw.com

                                                                       

 

CERTIFICATE OF SERVICE

 

I hereby certify that I have on May 17, 2021, sent via electronic email, a true and correct copy of the foregoing document, addressed to:

 

J. Brian Ferguson, Esq.

brian@ozarkfunds.com

 

                                                            _________________________________

                                                            Stacy E. Alexander

 

 

 

 

 

 

 

 

 

 

 

 

Wire Services Press Release & Other Updates

Good Tuesday Evening to our HHSE Friends & Followers - The review and approval of the wire service release was delayed until mid-afternoon today, at which time we were advised that the news would likely have greater impact if held until pre-market Wednesday (tomorrow).  So we are following their advice.

We did receive some emails today expressing confusion or concern over the relevance or applicability of the matters.  The first news was actually from last week (May 5), in which the "Daisy Winters" (Shuttlewoods) California case went to default.  The California counsel for Plaintiff entered a judgment against Hannover House, Inc. and against an unrelated entity called "FilmWorks Creative Services, LLC" which was closed in California back in the year 2000.  

We believe that Plaintiff's counsel may have been confused as several years ago, the Arkansas corporation Medallion Releasing, Inc. filed a "dba" of FilmWorks for possible future use (but has not actually conducted any business under FilmWorks, nor would the company incorrectly use the full name of a totally separate and defunct California entity). The registered but virginal-from-use dba of  "FilmWorks" under Medallion is not an entity, it's just a proposed trade name. 

Regardless, HHSE has been waiting several months for the "Daisy Winters" / Shuttlewoods California default.  If / when they file in Arkansas as a foreign judgment, this will enable the company to actually respond and adjudicate the dispute in Arkansas (per the actual CONTRACT stated governing law and location). One of the meritorious defenses will be the email agreement from Plaintiff that they would NOT pursue litigation if HHSE released the ongoing distribution rights to "Daisy Winters."  HHSE complied with this agreement, but, ooopsie, they did not honor their terms as evidenced by the later filing of a lawsuit.  The film has since been released onto DVD, BluRay and streaming to a level of high "success" as publicly touted by the new distributor (whose Head of Sales there is Tom Sims... yep, that very same Tom Sims who was working with HHSE during the theatrical release of "Daisy Winters." Ooopsie-again).

The other legal matter that generated confusion among some shareholders today was a filing by the SAME oopsie attorney, Marc Lazo.  This was a filing in the SHEFTE Bankruptcy case that named as PLAINTIFFS Uptone Pictures, Daisy Winters and Shuttlewoods.  As DEFENDANTS, it named a crazy number of individuals and entities including Shefte's family members and even an entity that has not existed since 1992 (so HOW is it related to the Shefte bankruptcy? Enquiring minds are befuddled).  In any event, counsel is making the motions to have this outrageous distraction of legal baloney dismissed, as well as a request for sanctions and legal fees.  HHSE is not a party to the Shefte bankruptcy, and we have not been served this impressively absurd filing. Perhaps it will be dismissed on grounds before HHSE is served. In any event, it's a Shefte BK matter, not HHSE.  But we WILL aggressively seek sanctions and fees if served. 

Last but not least, we are filing any day now the NY and Arkansas motions to stop the Lewin foreign default enforcement attempts.  Counsel believes in the merits of the HHSE defenses and that this will freeze their efforts and force an actual adjudication of the matter.

So, moving these distractions off our plate, we are free to focus on the activities with the MyFlix launch and operations... which is the locomotive to pull us all into the new media era!

THURSDAY UPDATE:  Both the New York and Arkansas Court Filings (both designed to move to set-aside or otherwise adjudicate the Lewin Foreign Default Judgment) are completed and will be filed prior to the response deadline (end-of-day, Tuesday, May 18). At the request of counsel, neither filing is being posted HERE TO THIS BLOG prior to the formal court filings, due to legal protocols which require prior notification to the opposing party and counsel.  But the filings look great and the legal foundations are solid... which explains the confidence in both the NY and Arkansas attorney's for this case.  Yes, it was a big and scary looking monster... so we expect that the persistent "sky is falling" chickens will cluck just as loudly with praise and congratulations as HHSE prevails again... right?  Yeah, probably not, as reality is not their realm.  Regardless... we are reinvigorated and excited to get back on track again with our corporate endeavors.  WHEN THE COURT FILINGS ARE PUBLIC, WE WILL POST THEM HERE. 

FRIDAY MORNING UPDATE:  HHSE has elected to temporarily delay the release of news and other publicity outreach that we believe will attract attention to the company, UNTIL the various court filings are made in the Lewin foreign default matter. It is our belief that the news and outreach will be very effective... and that it's important for new people looking at HHSE to see that the Lewin foreign default is just another fraudulent action taken against HHSE that is being dismissed by the courts. On its surface, the size of the Lewin foreign default judgment looks ominous... until the facts emerge that there were at least four substantive misrepresentations to the court that were made in obtaining the foreign default (and that these are the basis for HHSE counsel to move to Stay or Strike the foreign judgment).  The positive news and outreach that we have been holding are all still applicable, but better suited for better timing.  We are most likely looking at next Tuesday and Wednesday for news and awareness activities.

An Abundance of Momentum for HHSE Activities

Greetings HHSE Friends & Followers, and Happy Mother's Day to each of you and to your Mothers.  I hope that everyone reading this blog enjoys an emotionally rich personal and family life, and that you took time off today to appreciate the wondrous gift of life that our Mothers have bestowed onto each of us. Would your actions today - or for the whole of your life - make your Mother proud? Let's hope that each of us chooses to make a positive use of each precious day in a productive manner that would inspire the admiration from all of our Mothers. We are blessed to be living at this time, and fortunate that our Mothers have made it possible!

There's so much news and activity at HHSE / MyFlix that it's quite challenging to try to decide WHERE TO START.  With 43 supplier studios - each of which have requested a singular press announcement for their affiliation with MyFlix - that supplier news alone can be overwhelming. But when you add in new factors such as MAJOR STUDIO titles, PREMIERE titles, EXCLUSIVE titles... along with news of Consumer Promotions, Pricing Deals, Site & App Options and Launch Details... where to start with the news launch can be a major challenge.  In fact, our teaser-art and pre-launch promo materials and graphics must be carefully tailored & edited so as to NOT unintentionally tip-the-hat as to a particular supplier partner or title.  Accordingly, the teaser items on the site and in press and blog listings are an incomplete picture of what the promo materials will ultimately look like the day-after we launch the portal. 

We will try to be brief with the following summary of what exactly we are launching with on the MyFlix site & APP initially.  As we have stated in the past, there will be additional features added soon after the consumer-streaming launch (including an educational portal, interactivity and gaming). But for now, here's a quick snapshot of what consumers will see this summer when they log-in and sign-up for MyFlix:

·        90 Major Studio Titles;

 

·        120 “MyFlix” Exclusives (not available on any other streaming service);

 

·        5 “MyFlix” Premiere Titles (first window of release in USA being MyFlix);

 

·        10 “VIP Pass” Movies (available for FREE after MyFlix user registration);

 

·        2,500+ Titles sorted by 30 Genres (Action, Adventure, Animated, Anime, Art, Children’s, Comedy, Crime, Documentary, Drama, Educational, Fantasy, Foreign, Historic, Horror, Independent, Interactive, LGBTQ, Martial Arts, Musical, Music Video, Mystery, Noir, Romance, Sci-Fi, Spanish, Superhero, Television, Urban, Western);

 

·        Over 1,000 Initial Titles will be covered under the Monthly Subscription Plan.  All MyFlix titles will be available to registered users on a Transactional Video-On-Demand basis with prices ranging from $1 to $3 for regular programming, with Premium Rates for 4k or Featured New Release / Event titles.

 

·        All MyFlix titles will have Captions as a viewer-selected option.

 

In keeping with the stated programming policy for MyFlix, the site will NOT offer pornography.  If a producer-supplier delivers titles that are not MPAA rated, MyFlix will review for program suitability and will issue an age-based, MyFlix Rating Equivalency to provide viewers and parents with an advanced awareness of the relative nature of the content. 

Additional HHSE updates not related to MyFlix will be released on Tuesday, including our first wire-services press release in quite a few months.  It is possible, perhaps even likely, that prospective new shareholders will be looking into HHSE and MyFlix this week, and we won't disappoint.

The Stars Shine At MyFlix

Just a Few of the Featured Talent from Initial MyFlix Titles:

CHECK THIS BLOG ON TUESDAY FOR MORE MYFLIX UPDATES!

* * * * *

A Personal Note from ERIC PARKINSON, re: Mothers & Character

Some Thoughts for Specific Parties - Whether you live in BEVERLY HILLS, TOLEDO OHIO or in a tiny apartment in a TEXAS Suburb, I ask you to ask yourself:  are you a BUILDER or a DESTROYER?  

Have you worked to build something positive - a notable and lasting legacy for others to see, enjoy and admire?  Or are you merely taking up space, consuming resources and generating negativity?  

Life is a very limited and precious resource. No one escapes it with their lives... and ultimately all that remains are the memories within others of how we helped them with kindness, wisdom, generosity and integrity.  

Make 2021 the year that you rise above the petty emotional anger of mediocrity, jealousy and abandonment. Each of us manifests our own realities, and our daily momentum creates more  momentum. If you fill your hearts and minds with false and ugly thoughts, then that is the life that you are manifesting upon yourself.  

Let the negativity go... and let into your life the positive impact that would make your mother proud. There is nothing better in the world.  

HHSE Moves to Set-Aside Disputed Legal Matter

Greetings HHSE Friends & Followers - As stated earlier this week, HHSE is taking aggressive legal action to set-aside or otherwise actually adjudicate the matter of the "Lewin New York" Judgment - which was obtained via default and misrepresentations, despite no agreement existing between the company and Mr. Lewin.  

As of today, counsel has been engaged in BOTH New York as well as in Arkansas. Our New York Counsel is making several motions in the case, including the Order to Show Cause and the Meritorious Defenses of HHSE and other (arbitrarily-named) Defendants. Company counsel in Arkansas is filing the motion to stay enforcement due to the default status in New York and the case never having been adjudicated (which is allowed under Arkansas Law regarding the enforcement of foreign, sister-state default judgments). 

Rather than attempt to describe the legal positions of these filings, we prefer to let the filings present the merits of the motions to the courts directly.  Accordingly, once these motions are posted live to the two separate court sites, we will re-post them here (but without the lengthy exhibits).

Court actions to stop the attempted enforcement and the Writs are a precursor to getting this disputed matter removed, dismissed or otherwise adjudicated in favor of HHSE. This will remove the fear-and-uncertainty that stock manipulators and short-sellers have tried to nurture over the past few weeks since this matter emerged as an issue requiring immediate resolution. 

A separate blog dealing with company activities and developments will be posted this weekend, as we are anticipating some positive, forward movement next week.

HAVE A GREAT WEEKEND!

OTC Status Restored to Current - News and Other Activities Back On Track

Greetings HHSE Friends - after weeks of waiting, the OTC Markets finally approved the updated / newly-formatted filings from Hannover House.  Our "Current Reporting Status" has finally been restored.

Several significant news items have developed or finalized over the past few weeks. As stated previously, our goal in releasing these news items was to beneficially impact and motivate shareholders.  We were concerned that great news - if timed with a "Yield" sign - would diminish shareholder enthusiasm.  Accordingly, getting the OTC Markets to confirm our status was an obstacle that was finally resolved.

There is, however, a new obstacle that we feel could temporarily impede shareholder enthusiasm for HHSE news.  The "Lewin NY Judgment" heated up after the resignation and bankruptcy of former HHSE President D. Frederick Shefte. Existing shareholders will recall that Bruce R. Lewin - an investor in the movie "Dancin' It's On" - filed a lawsuit in New York against Hannover House and our two principal officers at the time, even though there is no agreement (verbal, written or otherwise) with Mr. Lewin for HHSE or the officers to have any obligations to him.  In fact, the only contract that exists for "Dancin' It's On" is with the production company and director (David Winters), and the company has been performing its obligations under that agreement.  In any event, Mr. Lewin's attorneys in New York were able to force a default judgment, which they are NOW (finally, after several years), seeking to enforce in the State of Arkansas.  Counsel for Hannover House will respond by the end of the week with the initial filings available under Arkansas law, to stay any such foreign enforcement actions and to open and adjudicate the facts of the matter. Our counsel believes that we will prevail with both goals ("freeze" of enforcement actions and "victory" in the actual matter of the\non-existent agreement with Lewin).

However, this foreign judgment has an absurdly high dollar amount listed - almost $2-million dollars.  So, we are concerned that new or limited information shareholders might see this nuisance lawsuit as something real, existential or scary... and thus the impact of positive HHSE news from the real world could be diminished.  Accordingly, we will not be releasing significant news over the next few days, until our court filings in the Lewin matter have initiated (later this week). That way, the positive news of our progress and deals will not be diluted by misinformation about a crazy, foreign lawsuit.

Hold tight!  The soup is brewing-up wonderfully!