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JS 44 (Rev.

10/20) Case 2:24-cv-10603-GAD-CI ECFCOVER


CIVIL No. 1, PageID.1
SHEET Filed 03/08/24 Page 1 of 13
The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as
provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the
purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
I. (a) PLAINTIFFS DEFENDANTS

(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF
THE TRACT OF LAND INVOLVED.

(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)

II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff
(For Diversity Cases Only) and One Box for Defendant)
1 U.S. Government 3 Federal Question PTF DEF PTF DEF
Plaintiff (U.S. Government Not a Party) Citizen of This State 1 1 Incorporated or Principal Place 4 4
of Business In This State

2 U.S. Government 4 Diversity Citizen of Another State 2 2 Incorporated and Principal Place 5 5
Defendant (Indicate Citizenship of Parties in Item III) of Business In Another State

Citizen or Subject of a 3 3 Foreign Nation 6 6


Foreign Country
IV. NATURE OF SUIT (Place an “X” in One Box Only) Click here for: Nature of Suit Code Descriptions.
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
110 Insurance PERSONAL INJURY PERSONAL INJURY 625 Drug Related Seizure 422 Appeal 28 USC 158 375 False Claims Act
120 Marine 310 Airplane 365 Personal Injury - of Property 21 USC 881 423 Withdrawal 376 Qui Tam (31 USC
130 Miller Act 315 Airplane Product Product Liability 690 Other 28 USC 157 3729(a))
140 Negotiable Instrument Liability 367 Health Care/ 400 State Reapportionment
150 Recovery of Overpayment 320 Assault, Libel & Pharmaceutical PROPERTY RIGHTS 410 Antitrust
& Enforcement of Judgment Slander Personal Injury 820 Copyrights 430 Banks and Banking
151 Medicare Act 330 Federal Employers’ Product Liability 830 Patent 450 Commerce
152 Recovery of Defaulted Liability 368 Asbestos Personal 835 Patent - Abbreviated 460 Deportation
Student Loans 340 Marine Injury Product New Drug Application 470 Racketeer Influenced and
(Excludes Veterans) 345 Marine Product Liability 840 Trademark Corrupt Organizations
153 Recovery of Overpayment Liability PERSONAL PROPERTY LABOR 880 Defend Trade Secrets 480 Consumer Credit
of Veteran’s Benefits 350 Motor Vehicle 370 Other Fraud 710 Fair Labor Standards Act of 2016 (15 USC 1681 or 1692)
160 Stockholders’ Suits 355 Motor Vehicle 371 Truth in Lending Act 485 Telephone Consumer
190 Other Contract Product Liability 380 Other Personal 720 Labor/Management SOCIAL SECURITY Protection Act
195 Contract Product Liability 360 Other Personal Property Damage Relations 861 HIA (1395ff) 490 Cable/Sat TV
196 Franchise Injury 385 Property Damage 740 Railway Labor Act 862 Black Lung (923) 850 Securities/Commodities/
362 Personal Injury - Product Liability 751 Family and Medical 863 DIWC/DIWW (405(g)) Exchange
Medical Malpractice Leave Act 864 SSID Title XVI 890 Other Statutory Actions
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS 790 Other Labor Litigation 865 RSI (405(g)) 891 Agricultural Acts
210 Land Condemnation 440 Other Civil Rights Habeas Corpus: 791 Employee Retirement 893 Environmental Matters
220 Foreclosure 441 Voting 463 Alien Detainee Income Security Act FEDERAL TAX SUITS 895 Freedom of Information
230 Rent Lease & Ejectment 442 Employment 510 Motions to Vacate 870 Taxes (U.S. Plaintiff Act
240 Torts to Land 443 Housing/ Sentence or Defendant) 896 Arbitration
245 Tort Product Liability Accommodations 530 General 871 IRS—Third Party 899 Administrative Procedure
290 All Other Real Property 445 Amer. w/Disabilities - 535 Death Penalty IMMIGRATION 26 USC 7609 Act/Review or Appeal of
Employment Other: 462 Naturalization Application Agency Decision
446 Amer. w/Disabilities - 540 Mandamus & Other 465 Other Immigration 950 Constitutionality of
Other 550 Civil Rights Actions State Statutes
448 Education 555 Prison Condition
560 Civil Detainee -
Conditions of
Confinement
V. ORIGIN (Place an “X” in One Box Only)
1 Original 2 Removed from 3 Remanded from 4 Reinstated or 5 Transferred from 6 Multidistrict 8 Multidistrict
Proceeding State Court Appellate Court Reopened Another District Litigation - Litigation -
(specify) Transfer Direct File
Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity) :
VI. CAUSE OF ACTION Brief description of cause:
Tortious Interference and Breach of Contract
VII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION DEMAND $ $3,000,000.00 CHECK YES only if demanded in complaint:
COMPLAINT: UNDER RULE 23, F.R.Cv.P. JURY DEMAND: Yes No
VIII. RELATED CASE(S)
(See instructions):
IF ANY JUDGE DOCKET NUMBER
DATE SIGNATURE OF ATTORNEY OF RECORD

/s/ Douglas LaLone


FOR OFFICE USE ONLY

RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE


Case 2:24-cv-10603-GAD-CI ECF No. 1, PageID.2 Filed 03/08/24 Page 2 of 13
Case 2:24-cv-10603-GAD-CI ECF No. 1, PageID.3 Filed 03/08/24 Page 3 of 13

IN THE UNITED STATES DISTRICT COURT


FOR THE EASTERN DISTRICT OF MICHIGAN

PATMOS HOSTING, INC., a Missouri


corporation,
Case No.
Plaintiff,

v.

TRUTH ARMY PRODUCTIONS, LLC,


a Delaware limited liability company,
GEOFFREY B. SANDO, a California
citizen, and JOSEPH GALLAGHER, a
Michigan citizen.

Defendants.

COMPLAINT FOR A CIVIL CASE


ALLEGING TORTIOUS INTERFERENCE WITH CONTRACT
(28 U.S.C. § 1332; Diversity of Citizenship)

I. Basis of Federal Jurisdiction

1. The court has jurisdiction under 28 U.S.C. § 1332. First, there is complete

diversity. Based on its state of incorporation and principal place of business, plaintiff, Patmos

Hosting, Inc., is a citizen of Missouri. On information and belief, defendant Truth Army

Productions LLC’s members are not individuals who are citizens of Missouri. Defendant Joseph

Gallagher is a citizen of Michigan. Finally, defendant Geoffrey Sando is a citizen of California.

In sum, there exists complete diversity of citizenship. Second, plaintiff alleges that defendants

owe plaintiff over $3 million.

1
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II. The Parties to This Complaint

2. Plaintiff is Patmos Hosting, Inc., a Missouri corporation with its principal place of

business at 117 S. Lexington Street, Suite 100, Harrisonville, MO 64701.

3. Defendant Truth Army is a Delaware limited liability company. Its registered agent

is URS Agents, LLC, 614 N. DuPont Highway, Suite 210, Dover, DE 19901.

4. Joseph Gallagher is an individual residing at 1063 Erksine Way, Waterford, MI

48328.

5. Geoffrey B. Sando is an individual residing at 3415 Seabreeze Lane, Corona Del

Mar, CA 92625.

III. Statement of the Claim

A. Background

6. Plaintiff, Patmos, is a cloud hosting service and software developer.

7. Patmos had a long-time client, St. Michael’s Media, Inc. d/b/a Church Militant

(hereinafter, “Church Militant”). 1 Patmos and Church Militant entered a contract (the “Contract”).

8. The Contract states that Patmos would provide cloud-hosting services, software

development, and maintenance to Church Militant. The Patmos services formed the foundation

supporting the Church Militant video library and paywall.

9. Church Militant’s business was based on its video library and paywall, which drew

subscribers who paid Church Militant money in exchange for being granted access to the video

library.

1
The term “Church Militant” refers to St. Michael’s Media, Inc., as well as all entities relating to St.
Michael’s Media, Inc., including entities bearing the name St. Michael’s Media, Church Militant, or both.
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Case 2:24-cv-10603-GAD-CI ECF No. 1, PageID.5 Filed 03/08/24 Page 5 of 13

10. Through the Contract, Church Militant acknowledged Patmos’ ownership of the

software (including source code) that supported the Church Militant video library and paywall.

11. In exchange for Patmos’ services, Church Militant agreed to pay Patmos

approximately $94,000 a month, from September 1, 2022 to August 31, 2026.

12. From the start of the Contract until January 31, 2024, Church Militant paid on time.

13. Beginning in February 2024, however, Church Militant started to share with

Patmos that Church Militant was in financial trouble.

14. Church Militant blamed its trouble on its ex-executive and founder, Michael Voris.

For example, a Catholic priest had filed a defamation lawsuit against Mr. Voris and Church

Militant. By February 2024, this defamation lawsuit was on the eve of trial.

15. On February 13, 2024, the Church Militant board stated to Patmos CEO, John

Johnson, that Church Militant would be dissolving under Michigan law effective March 15, 2024.

16. At the February 13 board meeting, Patmos proposed to Church Militant that Patmos

would look for a third-party purchaser of the Church Militant assets.

17. Alternatively, Patmos proposed to Church Militant that Patmos could bid in the $3

million debt owed from Church Militant to Patmos in exchange for Patmos taking title to the assets.

18. Regarding both proposals made by Patmos to the Church Militant board, Patmos

was trying to help an important client with whom Patmos and its predecessors had had a ten-year

relationship.

19. Church Militant and its executives and affiliates knew of the two proposals that

Patmos made at the February 13 board meeting. For example, on February 16, 2024, Patmos’

counsel discussed the two proposals with Church Militant’s counsel. On this February 16

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telephone call, Church Militant’s counsel stated that a third party was in the process of signing a

letter of intent to purchase the Church Militant assets.

20. Later that day, February 16, Church Militant disclosed a third-party purchaser who

was going to sign a letter of intent—Truth Army.

21. On February 27, 2024, Church Militant disclosed to Patmos that Truth Army

planned to sign a “management agreement.” “Essentially Truth Army takes over management . .

. from bills payroll, content, everything. . . . . You and Joe Gallagher can talk when the agreement

is in place.”

22. On March 4, 2024, John Johnson spoke with Mr. Sando, a member of the Church

Militant board. Mr. Sando stated to Mr. Johnson that Sando had read the Contract, knew what

Patmos was trying to do for Church Militant, had a Church Militant board meeting that night, and

Sando would “try to get you paid.”

23. Later that day, Mr. Johnson talked with Mr. Gallagher. Mr. Gallagher stated that

Truth Army was now managing Church Militant. Mr. Johnson stated that Patmos had been

working overtime at the special request of the client. This substantial project was now nearly

complete. (For context, the rebrand had been in process for 7 months. When the financial trouble

became apparent, Church Militant encouraged Patmos to hurry up on the rebrand so that Church

Militant could pivot after the troubles with a fresh look.) On the March 4 teleconference,

Mr. Gallagher told Patmos that Truth Army would be moving Church Militant in a completely

different direction.

24. Mr. Johnson stated that Truth Army, having assumed management of Church

Militant, was managing an entity in the Contract with Patmos; therefore, what did Truth Army

want Patmos to do? Mr. Gallagher said that there were no action items.

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Case 2:24-cv-10603-GAD-CI ECF No. 1, PageID.7 Filed 03/08/24 Page 7 of 13

25. Mr. Gallagher requested that Gallagher, Patmos, Truth Army, and Geoffrey Sando

have a meeting March 11, 2024, giving Truth Army and Mr. Sando time to assess how the rollout

of their new management of Church Militant went. Mr. Johnson said that that would be fine, but

Patmos had not been paid for February 2024 services rendered. Mr. Johnson stated that if Patmos

was asked to stay in a “holding pattern” while Truth Army tested reception of the new management

of Church Militant, then was it not fair for Truth Army to come current on the services rendered

under the Contract? Mr. Gallagher responded that Geoffrey Sando had mentioned that the Patmos

invoice should be “taken care of.” Mr. Gallagher added, “I’m much more vision; Geoff is

business.”

26. Mr. Johnson asked when the invoices would be paid, and Mr. Gallagher stated that

he would have to defer to Mr. Sando. Mr. Gallager: “We want to make sure it is taken of care of

as soon as possible.” Mr. Johnson said that it was imperative that Church Militant not get so far

behind on the Contract that Church Militant was not online anymore.

27. Mr. Gallagher also stated that he, as of March 4, was a member of the Church

Militant board, along with Geoffrey Sando and others. In his capacity as a Church Militant board

member, Mr. Gallagher stated that he had the authority to ask regarding past Patmos services to

Church Militant.

28. On March 5, 2024, Truth Army, Joseph Gallagher, and Geoffrey Sando began to

disable the Church Militant website and posted media content stating that Church Militant

subscribers should access the Truth Army website. In other words, Messrs. Gallagher and Sando,

both Church Militant board members, disabled paying customers’ access to Church Militant and

encouraged them to pay Truth Army instead.

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Case 2:24-cv-10603-GAD-CI ECF No. 1, PageID.8 Filed 03/08/24 Page 8 of 13

29. Mr. Gallagher explained in a four-and-half minute video what they had done.

According to Mr. Gallagher, Truth Army was “managing” the Church Militant assets. In a posted

comment to this Joeseph Gallagher video, an incredulous subscriber responded to this statement

as follows: “What does it mean to manage not-owned assets? Who owns the assets? To whom

does my monthly premium subscription go?”

30. This aggrieved consumer’s comment underscores defendants’ bad conduct. Truth

Army is an entity that purports to have been “managing” Church Militant. In fact, however, Truth

Army disabled the Church Militant website, attempted to take the paywall that Patmos had

developed for Church Militant’s use and tried to use the paywall on the Truth Army website,

funneled unwitting Church Militant consumers from Church Militant to Truth Army. And perhaps

most egregious to the public interest, Truth Army, with knowledge of Messrs. Gallagher and

Sando, shut off access to Church Militant and stripped a consumer’s ability to cancel his or her

subscription.

31. Messrs. Gallagher’s and Sando’s conduct as Church Militant board members also

reeks of bad faith and self-dealing, warranting liability against them as individuals. According to

Mr. Gallagher, Mr. Sando was “business,” and Gallagher was “vision.” Based on conversations

between Mr. Johnson and defendants Gallagher and Sando, Mr. Sando directed that the bad acts

set forth in paragraph 30 occur as a condition to Mr. Sando loaning Truth Army money or investing

in Truth Army. Mr. Gallagher, for his part, was the individual who, forward-facing, committed

the bad acts for all to see and hear. Patmos saved evidence demonstrating the bad acts listed in

paragraph 30 and will introduce this evidence into the record at summary judgment or trial.

Showing their bad faith, defendants attempted to destroy this evidence on March 7, 2024.

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Case 2:24-cv-10603-GAD-CI ECF No. 1, PageID.9 Filed 03/08/24 Page 9 of 13

32. In the video where Mr. Gallagher describes disabling Church Militant as “managing

Church Militant,” Truth Army shows that Truth Army was trying to use the paywall that Patmos

had built for Church Militant.

33. Mr. Johnson had conversations with the other Church Militant board members

during the week of March 4. One of them, named Mike Sherry, stated to Mr. Johnson that Mr.

Sando directed Church Militant to not pay Patmos invoices.

B. Count 1: Tortious interference with contract against Truth Army.

34. Plaintiff incorporates paragraphs 1 through 33 as if fully set forth herein.

35. The Contract is legally enforceable, Patmos performed all its obligations under the

Contract, and Patmos holds an at least $3 million right of payment under the Contract.

36. Church Militant, the counterparty to the Contract, breached the Contract by refusing

to pay Patmos. Moreover, the Church Militant board repudiated the Contract on February 13 and

March 4, 2024.

37. Truth Army instigated the breach of the Contract. First, Truth Army used its control

of Church Militant to ensure that Church Militant would not pay Patmos. Second, starting March

5, 2024, Truth Army disabled the Church Militant website and directed the Church Militant

subscriber base to Truth Army, again ensuring that Church Militant would breach the Contract.

Third, starting March 5, 2024, Truth Army published media encouraging the Church Militant

subscriber base to join and pay Truth Army, again ensuring that Church Militant would breach the

Contract. Fourth, Truth Army disabled the Church Militant website and stripped consumers of

their ability to cancel their subscriptions, ensuring that there would be no subscriber base in the

future supporting Church Militant’s ability to perform under the Contract.

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Case 2:24-cv-10603-GAD-CI ECF No. 1, PageID.10 Filed 03/08/24 Page 10 of 13

38. Truth Army’s acts of instigation have caused Patmos no less than $3 million in

damages.

C. Count 2: Tortious interference with contract against Joseph Gallagher.

39. Plaintiff incorporates paragraphs 1 through 38 as if fully set forth herein.

40. The Contract is legally enforceable, Patmos performed all its obligations under the

Contract, and Patmos holds an at least $3 million right of payment under the Contract.

41. Church Militant, the counterparty to the Contract, breached the Contract by refusing

to pay Patmos. Moreover, the Church Militant board repudiated the Contract on February 13 and

March 4, 2024.

42. Joseph Gallagher instigated the breach of the Contract. First, Gallagher used his

board position with Church Militant to ensure that Church Militant would not pay Patmos. Second,

starting March 5, 2024, Gallagher disabled the Church Militant website and directed the Church

Militant subscriber base to Truth Army, again ensuring that Church Militant would breach the

Contract. Third, starting March 5, 2024, Gallagher published media encouraging the Church

Militant subscriber base to join and pay Truth Army, again ensuring that Church Militant would

breach the Contract. Fourth, Mr. Gallagher disabled the Church Militant website and stripped

consumers of their ability to cancel their subscriptions, ensuring that there would be no subscriber

base in the future supporting Church Militant’s ability to perform under the Contract.

43. Gallagher’s acts of instigation have caused Patmos no less than $3 million in

damages.

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Case 2:24-cv-10603-GAD-CI ECF No. 1, PageID.11 Filed 03/08/24 Page 11 of 13

D. Count 3: Tortious interference with contract against Geoffrey Sando.

44. Plaintiff incorporates paragraphs 1 through 43 as if fully set forth herein.

45. The Contract is legally enforceable, Patmos performed all its obligations under the

Contract, and Patmos holds an at least $3 million right of payment under the Contract.

46. Church Militant, the counterparty to the Contract, breached the Contract by refusing

to pay Patmos. Moreover, the Church Militant board repudiated the Contract on February 13 and

March 4, 2024.

47. Geoffrey Sando instigated the breach of the Contract. First, Sando used his board

position with Church Militant to ensure that Church Militant would not pay Patmos. Second,

starting March 5, 2024, Sando caused the Church Militant website to be disabled and directed that

the Church Militant subscriber base be moved to Truth Army, again ensuring that Church Militant

would breach the Contract. Third, starting March 5, 2024, Sando funded and otherwise caused

media to be published encouraging the Church Militant subscriber base to join and pay Truth

Army, again ensuring that Church Militant would breach the Contract. Fourth, by causing the

Church Militant website to be disabled, Mr. Sando stripped consumers of their ability to cancel

their subscriptions, ensuring that there would be no subscriber base in the future supporting Church

Militant’s ability to perform under the Contract.

48. Sando’s acts of instigation have caused Patmos no less than $3 million in damages.

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IV. Prayer for Relief

49. Based on the forgoing, plaintiff Patmos requests that the court enter a judgment in

favor of plaintiff and against defendants providing as follows:

a. A judgment holding Truth Army, Joseph Gallagher, and Geoffrey Sando

liable for at least $3 million;

b. A judgment awarding plaintiff pre- and post-judgment interest; and

c. Such other relief as the court finds is due to Patmos at law or in equity.

Date: March 8, 2024 s/ Douglas P. LaLone______

Douglas P. LaLone
MI. Bar # 45,751
FISHERBROYLES, LLP
400 Renaissance Center, Suite 2600
Detroit, MI 48243
Douglas.LaLone@FisherBroyles.com

Matthew M. Wawrzyn
(pro hac vice application forthcoming)
(IL ARDC #62763138)
Matthew.Wawrzyn@fisherbroyles.com
FISHERBROYLES, LLP
200 East Randolph Street, Suite 5100
Chicago, IL 60601
(224) 777-1787 (telephone)
(312) 233-0063 (facsimile)

Counsel for Patmos Hosting, Inc.

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Verified Statement

I, John Johson, am CEO of plaintiff Patmos Hosting, Inc., and I have read the Complaint

in this matter and I confirm that the statements made herein are accurate to the best of my

knowledge.

Signed:_____s/John Johnson_______________

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