Seabreeze Order: Consent Judgement

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COURT, DISTRICT COUNTY, COLORADO DENVER


Court Address:
1437 Bannock Street, Rm 256, Denver, CO, 80202
Plaintiff(s) ST OF COLO
v.
Defendant(s) SEABREEZE AIR LLC et al.
COURT USE ONLY
Case Number: 2013CV35020
Division: 280 Courtroom:
Stipulated Consent Judgment
The motion/proposed order attached hereto: SO ORDERED.
Issue Date: 9/25/2014
CATHERINE A LEMON
District Court J udge
DATE FILED: Septembei 23, 2014 11:32 AM
CASE NUMBER: 2013CV33020
DISTRICT COURT, CITY AND COUNTY OF
DENVER, COLORADO
1437 Bannock Street, Room 256
Denver, Colorado 80202
STATE OF COLORADO ex rel. JOHN W
SUTHERS, ATTORNEY GENERAL

Plaintiff
v.
SEABREEZE AIR LLC, SEABREEZE AIR,
QUALITY AIR, QUALITY AIR LLC, FRESH
AIR, LLC,
and
ANDRE SHATYKO and ALEXANDER
KURDYUKOV, Individually

Defendants.
COURT USE ONLY
Attorneys for Petitioners:
JOHN W. SUTHERS, Attorney General
MARK T. BAILEY*, Assistant Attorney General,
Reg. No. 36861
JAY SIMONSON*, First Assistant Attorney
General, Reg. No. 24077
1300 Broadway, 7
th
Floor
Denver, CO 80203
(720) 508-6000
(720) 508-6040
*Counsel of Record
Case No.: 2013CV35020
Div: 280



STIPULATED CONSENT JUDGMENT
This matter is before the Court on the parties Stipulation for Entry of a Final
Consent Judgment. The Court has reviewed the Stipulation, the Complaint and is
otherwise advised in the grounds therefore. The Court concludes that good cause
has been shown for entering this Final Consent Judgment.
Accordingly, IT IS ORDERED that:
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I. GENERAL PROVISIONS
1.1 Scope of Final Consent Judgment. The injunctive provisions of this
Final Consent Judgment are entered pursuant to the Colorado Consumer Protection
Act, 6-1-101, et seq. C.R.S. (2014) (CCPA). This Final Consent Judgment shall
apply to DEFENDANTS SEABREEZE AIR, LLC, SEABREEZE AIR, QUALITY
AIR, QUALITY AIR LLC, FRESH AIR, LLC, ANDRE SHATYKO AND
ALEXANDER KURDYUKOV (collectively, DEFENDANTS), and any person
under the direction or control of any DEFENDANT, including but not limited to any
principals, officers, directors, agents, employees, representatives, successors,
affiliates, subsidiaries, contractors, and assigns who has received actual notice of
this Courts Order.
1.2 Release of Claims. The State of Colorado, ex rel. John W. Suthers,
Attorney General (hereinafter the STATE), acknowledges by its execution hereof
that this Final Consent Judgment constitutes a complete settlement and release of
all claims under the CCPA on behalf of the STATE against the DEFENDANTS,
their owners, employees and former employees, with respect to all claims, causes of
action, damages, fines, costs, and penalties which were asserted or could have been
asserted under the CCPA in the Complaint, that arose prior to this date and
relating to or based upon the acts or practices which are the subject of the
Complaint filed in this action. The STATE agrees that it shall not proceed with or
institute any civil action or proceeding under the CCPA against the DEFENDANTS
for any conduct or practice prior to the date of entry of this Final Consent Judgment
which relates to the subject matter of the Complaint filed in this action.
1.3 Liability. Both parties are entering into this Final Consent Judgment
for the purpose of compromising and resolving disputed claims and to avoid the
expense of further litigation.
1.4 Preservation of Law Enforcement Action. Nothing herein precludes the
STATE from enforcing the provisions of this Final Consent Judgment, or from
pursuing any law enforcement action under the CCPA with respect to the acts or
practices of the DEFENDANTS not covered by this lawsuit and Final Consent
Judgment or any acts or practices of the DEFENDANTS conducted after the entry
of this Final Consent Judgment.
1.5 Compliance with and Application of State Law. Nothing herein relieves
the DEFENDANTS of their duty to comply with applicable laws of the State of
Colorado nor constitutes authorization by the STATE for the DEFENDANTS to
engage in acts and practices prohibited by such laws. This Final Consent Judgment
shall be governed by the laws of the State of Colorado.
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1.6 Non-Approval of Conduct. Nothing herein constitutes approval by the
STATE of the DEFENDANTS past or future business practices. The
DEFENDANTS shall not make any representation contrary to this paragraph.
1.7 Preservation of Private Claims and Relation to Private Settlements.
Unless otherwise noted, nothing herein shall be construed as a waiver of any
private rights, causes of action, or remedies of any person against the
DEFENDANTS with respect to the acts and practices covered by this Final Consent
Judgment.
1.8 Use of Settlement as Defense. The DEFENDANTS acknowledge that it
is the STATEs customary position that an agreement restraining certain conduct
on the part of a defendant does not prevent the STATE from addressing later
conduct that could have been prohibited, but was not, in the earlier agreement,
unless the earlier agreement expressly limited the STATEs enforcement options in
that manner. Therefore, nothing herein shall be interpreted to prevent the STATE
from taking enforcement action to address conduct occurring after the entry of this
Final Consent Judgment that the STATE believes to be in violation of the law. The
fact that such conduct was not expressly prohibited by the terms of this Final
Consent Judgment shall not be a defense to any such enforcement action.
1.9 Use of Settlement in Business Activity. Under no circumstances shall
this Final Consent Judgment or the name of the Attorney General or any of the
STATEs employees or representatives be used by the DEFENDANTS or any person
under their direction or control in any way that suggests an endorsement of
DEFENDANTS conduct, past, present, or future. However, nothing in this
paragraph shall prohibit the DEFENDANTS from otherwise commenting on or
quoting this Final Consent Judgment, changes to their business practices or the
resolution of this case.
1.10 Retention of Jurisdiction. This Court shall retain jurisdiction over this
matter for the purpose of enabling any party to this Final Consent Judgment to
apply to the Court at any time for any further orders which may be necessary or
appropriate for the construction, modification or execution of this Final Consent
Judgment, and for the enforcement of compliance herewith and the punishment of
violations hereof.
1.11 Contempt. The parties understand and agree that a finding of any
violation of any term or provision of this Final Consent Judgment may give rise to
all contempt remedies available to the Court, including those provided under C.R.S
6-1-112(1)(b) and C.R.C.P. Rule 107.
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1.12 Execution in Counterparts. This Final Consent Judgment may be
executed in counterparts.
1.13 Severability. If any provision(s) of this Final Consent Judgment is held
to be invalid, illegal, unenforceable or in conflict with the law of any jurisdiction,
the validity, legality and enforceability of the remaining provisions shall not in any
way be affected or impaired thereby.
1.14 Successors in Interest. The terms and provisions of this Final Consent
Judgment may be enforced by the current Colorado Attorney General, and by any of
his duly authorized agents or representatives, as well as by any of his successors in
interest, and by any of his successors in interests agents or representatives.
1.15 Bankruptcy. In the event any of the DEFENDANTS file a petition for
bankruptcy within one hundred days of their payments to the STATE and if the
STATE must return any portion of the money it has collected pursuant to this Final
Consent Judgment to the bankruptcy estate, then a judgment shall enter against
the DEFENDANT who filed for bankruptcy, in the amount of $1 million
($1,000,000) in favor of the STATE.
1.16 Amendment. This Final Consent Judgment may be amended solely by
written agreement signed by the STATE and the DEFENDANTS.
1.17 Notice. Any notices sent to DEFENDANTS pursuant to this Final
Consent Judgment shall be sent Andrii Shatyko 111 Towne Street #110 Stamford,
CT 06902 and to Alexander Kurdyukov 31 St. Jacques Avenue #3 Agawam, MA
01001.
II. PERMANENT INJUNCTION
2.1 DEFENDANTS, and any person under the direction or control of any
DEFENDANT, including but not limited to, any principals, officers, directors,
agents, employees, representatives, successors, affiliates, subsidiaries, contractors,
and assigns who has received actual notice of this Courts Order, are hereby
PERMANENTLY ENJOINED from:

a) Soliciting, advertising or providing air duct cleaning services in Colorado;

b) Accepting payment from any Colorado consumer in connection with air
duct cleaning services;

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c) Accepting payment for air duct cleaning services in Colorado from any
entity that offers prepayment for services, including but not limited to
Groupon and Living Social;

d) Operating, controlling, or receiving payment from any air duct cleaning
company that has any presence in the State of Colorado.


III. MONETARY PROVISIONS
3.1 This Court orders DEFENDANTS, jointly and severally, to pay a total
amount of $916,000. The STATE agrees to suspend DEFENDANTS payment of
$766,000 of this amount pending full compliance with all injunctive terms and full
payment of the remaining $150,000. DEFENDANTS shall make an initial payment
of $2,500 immediately upon entry of this Final Consent Judgment, followed by
monthly payments of $1,000 starting November 1, 2014 and continuing for one
hundred forty seven (147) months for a total of $147,000 and a final monthly
payment of $500.
3.2 The payments provided for in 3.1 shall be held, along with any
interest thereon, in trust by the Attorney General to be used in the Attorney
General's sole discretion for attorney fees and costs, restitution, if any, and for
future consumer education and for consumer enforcement.
3.3 All payments shall be made payable to the Colorado Department of Law
with a reference to State v. Seabreeze et al., 2013CV35020, and shall be delivered to:
Kyle Odegaard, Program Assistant
Consumer Fraud Unit
Colorado Department of Law
1300 Broadway
Denver, Colorado 80203

3.4 Failure to make the initial payment of $2,500 will constitute contempt
of this Court and result in the entire $916,000 being due and payable immediately,
without the need for trial. In the event DEFENDANTS fail to make any
subsequent monthly payment under 3.1, the STATE shall provide the
DEFENDANTS written notice of default and provide the DEFENDANTS with 30
days to cure the default without penalty. If the DEFENDANTS fail to cure the
default within 30 days, the entire $916,000 (minus any payments previously made
by DEFENDANTS) shall be due and payable immediately, without the need for
trial.
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3.5 In the event DEFENDANTS fail to make any payment under 3.1 or
violate any injunctive term of this Final Consent Judgment, DEFENDANTS agree
to waive and accept service of C.R.C.P. Rule 69(d) Interrogatories through their
counsel, Robert Driscoll.
IV. REPRESENTATIONS AND WARRANTIES
4.1 Except as expressly provided in this Final Consent Judgment, nothing
in this Final Consent Judgment shall be construed as relieving the DEFENDANTS
of their respective obligations to comply with all state and federal laws, regulations
or rules, or granting permission to engage in any acts or practices prohibited by
such law, regulation or rule.
4.2 The DEFENDANTS acknowledge that they have thoroughly reviewed
this Final Consent Judgment with their counsel, that they understand and agree to
its terms, and that they agree that it shall be entered as an Order of this Court.
4.3 Each of the non-Court signatories to this Final Consent Judgment
warrants and represents that he or she has authority to agree to this Consent
Judgment on behalf of the specified parties.
V. VIOLATIONS OF THIS CONSENT JUDGMENT
5.1 Any violation of any injunctive term of this Consent Judgment shall
constitute contempt of this Court and result in the entire $916,000 (minus any
payments previously made by the TRUJILLO DEFENDANTS) being due and
payable immediately, without the need for trial, and any further remedies that the
Court deems appropriate.
5.2 In any action brought by the STATE to enforce this Final Consent
Judgment, the DEFENDANTS consent to personal and subject matter jurisdiction
in the District Court for the City and County of Denver.
SO ORDERED and SIGNED this ____ day of ___________, 2014.
BY THE COURT:


Catherine A. Lemon
District Court Judge

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This Consent Judgment concerning the DEFENDANTS, signed and agreed to
this _____ day of September, 2014.
In all respects, on behalf of Defendants
Seabreeze Air, LLC, Seabreeze Air,
Quality Air, Quality Air LLC, Fresh
Air, LLC
______________________________________
Robert Driscoll
DRISCOLL LAW FIRM
455 Sherman Street, Suite 110
Denver, CO 80203
In all respects, on behalf of Defendant
Andre Shatyko




_______________________________
Andrii Shtyko




In all respects, on behalf of Defendant
Alexander Kurdyukov
______________________________
Alexander Kurdyukov

In all respects, on behalf of the Plaintiff
the State of Colorado, ex rel.
JOHN W. SUTHERS, Attorney General


____________________________________
MARK T. BAILEY*, Reg. No. 36861
Assistant Attorney General
JAY SIMONSON*, Reg. No. 24077
First Assistant Attorney General
Consumer Fraud Unit
Consumer Protection Section
Office of the Colorado Attorney General
Attorneys for Plaintiff

*Counsel of Record

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