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.
