California judge grants motion to quash in a dispute between businesses seeking to provide Indonesian pay TV service

By Sandra Lane | Sep 15, 2018

SAN FRANCISCO – Judge Kathleen M. Bank  has ruled in favor of a motion to quash and threw out the claims of another in a dispute between D-Rock Holdings and Axxis Financial of California.  

The hearing was conducted on Aug. 21,  in the California Court of Appeal, First Appellate District, Division One.

The lawsuit was between two businesses that had joined forces to try and secure a contract to provide video service to Indovision, an Indonesian pay TV service. 

 In 2013, D-Rock Holdings,organized in Delaware, and owned by Wendall Brown of Bermuda began a long-distance collaboration with businessman George Gonzalez of Virginia to further the satellite TV venture, communicating primarily by email, phone calls, and text messages. 

Brown then entered into a business agreement with Charles Sweeney, owner of Axxis Financial Of California.

Axxis Financial "would endeavor to procure a contract for D-Rock, Inc. to provide its video service to Indovision, an Indonesian pay-TV provider... Sweeney became D-Rock, Inc.’s interim CFO and head of business development. He was eventually successful in procuring the desired contract between DRock, Inc. and Indovision," according to the lawsuit. 

The parties’ relationship soured, and D-Rock removed Sweeney from the company, according to court documents. D-Rock sued Sweeney for breach of contract. More disputes arose and resulted in multiple court actions being filed.

Charges and counter-charges went back and forth as the companies responded to each court action of the other. As a result, the trial court granted the motions to quash and dismissed the cross-complaint as to both companies and later denied a motion to reconsider as to D-Rock Holdings.

 Eventually, the ongoing battle between the two companies wound up in the California Court of Appeal. 

Brown moved to quash the cross-complaint for lack of personal jurisdiction. D-Rock Holdings, which also had not yet filed an answer, also moved to quash.

Concluding there was no basis for specific jurisdiction over Brown or D-Rock Holdings, the trial court granted the motions to quash, and dismissed the cross-complaint as to both.

After considering the appeals of all the parties, Judge Bank ruled that: “We affirm as to D-Rock Holdings and reverse as to Brown. The order granting D-Rock Holdings’ motion to quash is affirmed. The order granting Brown’s motion to quash is reversed. Parties to bear their own costs on appeal.”

Judge Robert L. Dondero and Judge Jim Humes concurred with the ruling.

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