Martin v. Narconon: Complaint

8/11/2019 Martin v. Narconon: Complaint

http://slidepdf.com/reader/full/martin-v-narconon-complaint 1/20

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Ryan A. Hamilton NEVADA BAR NO. 11587HAMILTON LAW5125 S. Durango Dr., Ste. CLas Vegas, NV 89113(702) 818-1818

(702) 974-1139 (fax)[email protected]

Attorney for the plaintiffs

UNITED STATES DISTRICT COURT

DISTRICT OF NEVADA

WES MARTIN, a Texas Citizen; and RICKYMARTIN, a Texas Citizen; and JANAMARTIN,

Plaintiffs,

vs.

NARCONON FRESH START d/b/a RAINBOWCANYON RETREAT, a California Corporation;ASSOCIATION FOR BETTER LIVING AND

EDUCATION INTERNATIONAL; NARCONON WESTERN UNITED STATES; NARCONON INTERNATIONAL; KEVINRAY d/b/a SECOND WIND INTERVENTION,and DOES 1-100, ROE Corporations I – X,inclusive,

Defendants.

Case No.

COMPLAINT AND JURY DEMAND

Plaintiffs Wes, Ricky, and Jana Martin (“Plaintiffs”), by and through their attorney Ryan

Hamilton of Hamilton Law, LLC, file their Complaint and Jury Demand:

I.

PARTIES

Case 2:14-cv-01599 Document 1 Filed 09/29/14 Page 1 of 20



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1. Plaintiffs are residents of, and for the purposes of determining federal diversity jurisdiction

are citizens of, Texas.

2. Defendant Narconon Fresh Start (hereafter “Fresh Start”), is, and at all times relevant to

this Complaint was, a corporation incorporated under the laws of, and with its principal place of

business in, the State of California. Fresh Start has been at all relevant times transacting business

in Caliente, Lincoln County, Nevada. Fresh Start may be served with process through its

registered agent, Mark Kirwin, 4480 Market St., Ste. 804, Ventura, CA 93003.

3. Defendant Narconon International (“NI”) is a California corporation with its headquarters

in Los Angeles, California.

4. NI is the principal and licensor of Defendant Narconon Fresh Start. NI exercises control

over the time, manner, and method of Fresh Start’s operations.

5. NI was doing business in the State of Nevada by and through its agent and

subsidiary/licensee Defendant Narconon Fresh Start. NI may be served with process through its

registered agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.

6. Fresh Start and NI are subsidiaries of the Association for Better Living and Education

(“ABLE”). ABLE oversees the drug rehabilitation, education, and criminal justice activities of the

Church of Scientology including, but not limited to, Fresh Start and NI.

7. Defendant ABLE is a corporation registered in the State of California with its headquarters

in Los Angeles, California.

8. ABLE controls the time, manner, and method of NI’s and Fresh Start’s businesses by

actively managing their daily operations, including conducting inspections of Narconon centers

and creating, licensing, and approving their marketing materials.

9. ABLE transacts business in the State of Nevada by and through its agents, Narconon

International and Narconon Fresh Start. ABLE may be served with process through its registered

agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.




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10. Defendant Narconon Western United States (“Western”) is a corporation registered in the

State of California with its headquarters in Los Angeles, California.

11. Western controls the time, manner, and method of Fresh Start’s business by actively

managing its daily operations, and creating and approving their marketing materials.

12. Western transacts business in the state of California and may be served with process

through its registered agent, Luria K. Dion, 249 N. Brand Blvd #384, Glendale, CA 91203.

13. Kevin Ray d/b/a Second Wind Intervention owns and operates an intervention business

that derives a substantial amount of its revenues from the Narconon network. Mr. Ray is a citizen

of California for purposes of determining diversity jurisdiction.

14. Plaintiffs are unaware of the true names and capacities, whether individual, corporate,

associate, or otherwise, of Defendant DOES 1-100, inclusive, and, therefore, sues these

Defendants by fictitious names. Plaintiffs will seek leave of this Court to amend this Complaint

when the identities of these Defendants are ascertained.

II.

JURISDICTION AND VENUE

15. This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332. The amount in

controversy exceeds $75,000.00, and there is complete diversity between the parties.

16. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(a) because a substantial portion

of the events and omissions giving rise to this lawsuit occurred in this District, and the Court has

personal jurisdiction over each of the parties as alleged throughout this Complaint.

III.

FACTUAL ALLEGATIONS

17. On or about July 23, 2014, Plaintiff Ricky and Jana Martin were looking for a

rehabilitation facility for his son, Plaintiff Wes Martin.




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18. Plaintiffs spoke with Fresh Start representative Dan Carmichael about obtaining addiction

treatment and counseling for Wes.

19. Carmichael recommended that Plaintiffs admit their son to Fresh Start for treatment.

20. Carmichael represented to Plaintiffs that the Fresh Start program has a 76% “success rate.”

21. As set forth below, even one of Narconon’s own experts in a prior litigation testified that

he did not know where Narconon’s claimed success rate comes from.

22. Carmichael further falsely represented to Plaintiffs that Fresh Start would reduce or

eliminate his drug cravings by having Wes undergo Fresh Start’s sauna detoxifying program, the

New Life Detoxification Program. Carmichael claimed that the New Life Detoxification Program

has been scientifically shown to flush out residual drug toxins stored in fatty tissues to thereby

reduce or eliminate a patient’s drug cravings.

23. Fresh Start’s website also made this false claim that its sauna program can reduce or

eliminate an addict’s drug cravings.

24. Carmichael and Fresh Start’s website represented that the treatment program offered at

Fresh Start does not involve religion. In fact, the treatment program at Fresh Start is comprised

entirely of the study and practice of Scientology.

25. Carmichael represented to Plaintiffs that at Fresh Start Wes would be under the care of

licensed medical professionals. But there were no medical professionals on-site at Fresh Start.

Instead, staff at Fresh Start consisted almost entirely of recent “graduates” of the program.

26. Based on the representations from Carmichael and the claims on Fresh Start’s website,

Plaintiffs admitted Wes to Fresh Start and paid an upfront fee of $31,000.00 for Wes’s

participation in the program. Plaintiffs executed the Admissions Agreement attached hereto as

Exhibit A days after they paid Fresh Start’s fee and Wes had entered the program.

27. Carmichael also recommended that Plaintiffs employ Kevin Ray d/b/a Second Wind

Intervention as an interventionist. Plaintiffs did so and paid Ray an additional $2,500.00.




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28. Ray flew to Plaintiffs’ home in Texas and conducted an intervention.

29. Wes flew with Ray to Nevada to participate in treatment at Fresh Start.

30. Fresh Start uses the Narconon treatment program. The Narconon treatment program

consists of eight course books written by or based on the works of L. Ron Hubbard, the founder of

the Scientology religion.

31. The Narconon treatment program has patients unwittingly study and practice introductory

Scientology under the premise that Scientology can treat or cure substance abuse.

32. The Narconon course books teach foundational Scientology concepts and doctrines. They

have patients perform drills known as “Training Routines” in which patients shout at ashtrays and

engage in other bizarre behavior with no apparent connection to substance abuse counseling.

33. Further, the Narconon course books have patients demonstrate their understanding of

Scientology doctrines by making clay sculptures related to those doctrines.

34. Narconon’s sauna program, the New Life Detoxification Program, is actually a

Scientology ritual known as the “Purification Rundown.” The Purification Rundown is a required

ritual for practicing Scientologists as they move up “The Bridge To Total Freedom,”

Scientology’s spiritual journey.

35. Fresh Start had Wes unwittingly studying and practicing Scientology in lieu of substance

abuse treatment.

36. Wes did not receive any substance abuse counseling at Fresh Start despite the promises he

would receive extensive counseling. In fact, the Narconon program contains no counseling.

37. The written materials for the Narconon program are the same for each patient. The written

materials consist of L. Ron Hubbard “technology.”

38. The “technology” must be administered to a patient at a Narconon facil ity exactly as

prescribed in the Narconon written materials. If an individual Narconon center deviates from the




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prescribed manner in which the written materials are to be applied, the Narconon center risks

losing the use of both the Narconon materials and the Narconon trademark.

39. Because Narconon staff cannot go beyond the written Narconon materials or deviate from

the manner in which the “technology” is to be applied, counseling is actively discouraged.

40. Fresh Start had Wes participate in Narconon’s sauna program. On entering the sauna,

Fresh Start required each student to ingest increasing doses of Niacin and a “vitamin bomb.” Fresh

Start increased Wes’s dosages of Niacin well beyond the recommended daily allowance while

instructing him to sit in a sauna up to five hours per day.

41. There were no medical personnel such as doctors or nurses overseeing Wes during his

participation in the New Life Detoxification program.

42. Fresh Start’s New Life Detoxification Program fails to live up to Narconon’s claims about

its benefits.

43. In a prior lawsuit, Dr. Louis A. Casal, an expert retained by Narconon International and

Narconon of Northern Georgia in a wrongful death suit filed against those entities, testified at a

deposition. A true and complete copy of Dr. Casal’s deposition testimony is attached hereto as

Exhibit B. When asked under oath about Narconon’s sauna program, he testified that there is no

scientific basis for the notion that sweating in a sauna detoxifies a person’s body or treats

addiction:

Q. Have you looked at the Narconon literature on what Narconon contends the

benefits from the sauna are?

A. [Dr. Casal] Yes, I have.

Q. And the sauna program, what Narconon contends is that in – it in fact detoxifies

your body. True?

A. True.




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Q. But there’s no scientific basis that you can point to to support that contention, is

there, sir?

A. You’re correct.

Q. So when Narconon states that the sauna program detoxifies its students, you’re not

aware, as a medical doctor, of any scientific basis for that contention?

A. I agree.

Exhibit A, Deposition of Dr. Louis Casal, 136:21 – 137:9.

44. Further, by having patients ingest extreme doses of Niacin and other vitamins while sitting

in extreme temperatures for hours, the sauna program unnecessarily exposes students to serious

health risks including severe dehydration. There is scientific consensus that, contrary to the

premise of the New Life Detoxification Program, recreational drugs are not stored in fatty tissues

for years but leave the body within a few days to a few weeks. Experts in medicine and toxicology

have repeatedly concluded that sweating does not expel drugs from the body.

45. Despite their own expert’s admission that there is no scientific basis for the idea that

patients sweating in the New Life Detoxification Program treats addiction, Narconon continues to

represent to prospective patients, as they did to Plaintiffs, that research has shown the New Life

Detoxification program to be effective.

46. NI claims a success rate of 76% for all Narconon centers, including Narconon Fresh Start

d/b/a Rainbow Canyon Retreat. Narconon has published no studies or other verifiable evidence to

support their claimed success rates. Dr. Casal, the medical expert retained by Narconon

International in another lawsuit, testified at his deposition that he was not convinced Narconon’s

claimed success rate was true:

Q. Okay. What are you relying on – well, let me ask you this; do you believe that 76

percent success ratio is accurate?

A. [Dr. Casal]. Mr. Harris, I’ll be honest with you, that’s a big number.




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Q. Yeah, it’s – it’s a real big number.

A. It’s a big number.

Q. And it’s completely inconsistent –

A. I – I hope it’s true, but, I mean, I would need some convincing.

…

Q. Okay. Do you have any idea where Narconon is getting the numbers that it’s using?

A. You know, in the interest of time – I just didn’t have enough time to delve deeper

into those studies, Mr. Harris. And I – I would be happy to, but, no, I don’t have a clear

understanding of where that 70 – 70-something number came from, no, sir.

Exhibit B, Deposition of Dr. Louis Casal, 124:21 – 125:5; 126:1 – 7.

47. Likewise, the Director of Legal Affairs for Narconon International, Claudia Arcabascio,

advised the Narconon Freedom Center in Michigan not to claim the high success rate in

responding to a Better Business Bureau complaint. Ms. Arcabascio advised Narconon Freedom

“do not say we have 70% success (we do not have scientific evidence of it).” See email from Ms.

Arcabascio, attached hereto as Exhibit C.

48. Narconon is well aware that there is no support for Narconon’s claimed success rate, but

nonetheless advertised a 76% success rate to Plaintiffs despite that awareness.

49. Narconon documents indicate that the Narconon program is used to recruit patients into the

Church of Scientology. For example, a Narconon document titled the “Narconon Technical Line-

Up” provides a flow chart of a patient’s experience into and through the Narconon program. The

document shows that when a patient finishes the Narconon program, the patient is to be “route[d]

to the nearest Org for further services if the individual so desires.” “Org” is Scientology jargon for

an individual church providing services for the Church of Scientology. A copy o f the “Narconon

Technical Line-Up” is attached hereto as Exhibit D.




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50. Further, Narconon considers its program to be the “Bridge to the Bridge.” That is,

Narconon considers its program to be an initial step into getting on Scientology’s “Bridge to Total

Freedom,” the key spiritual journey that practitioners of the Scientology religion undertake. See,

e.g., “Narconon News, 1974, Volume 6, Issue 3: Narconon Is The Bridge to The Bridge,” attached

hereto as Exhibit E.

51. Fresh Start displays tokens of gratitude it has received for introducing patients to

Scientology around its offices. At Fresh Start’s headquarters in Glendale, California, hangs a

plaque from the Church of Scientology that thanks Larry Trahant and “The Narconon Fresh Start

Team” for introducing patients to L. Ron Hubbard and “The Bridge.” The writing on the plaque

provides, in relevant part:

Larry and his dynamic team at Narconon Fresh Start are herebywarmly thanked and highly commended for their dedication andhard work. They give us tremendous back up in introducing LRH tothe world and are saving lives on a daily basis. There are thousandsof beings who have taken their first steps on The Bridge, thanks tothe compassion and efforts of this team.

A photo of this plaque is attached hereto as Exhibit F.

52. Scientology’s own marketing documents show that the Narconon program is part of

Scientology’s plan to “clear” the planet. (To “go clear” is the ultimate spiritual goal for a

Scientologist, achieved after one goes up the “Bridge to Total Freedom.”) The document attached

hereto as Exhibit G, shows a Church of Scientology, or an “Org” as it’s known, with an arrow

directed at the Narconon “Jumping Man” logo. The document reads:

The question is not how to clear an individual, it’s how to clear acivilization … by making every one of our orgs a centralorganization responsible for every sector of Scientology activitiesacross it’s [sic] entire geographic zone.

In other words, the Church of Scientology is supposed to direct Narconon to achieve Scientology’s

spiritual goal of “clearing” the planet.




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53. Fresh Start is using the Narconon program to introduce Scientology and L.

Ron Hubbard’s “technology” to unwitting patients seeking drug rehabilitation. This

is exactly as the Church of Scientology directed as part of its “Social Coordination

Strategy.” Scientology explicitly outlined this strategy in an urgent Executive

Directive from the Authorization, Verification, and Correction Department of its

Religious Technology Center. The Executive Directive outlining the “Social

Coordination Strategy” is attached hereto as Exhibit H (hereafter the “SOCO

Directive”).

54. The SOCO Directive instructed all SOCO GROUPS, which includes

Narconon, as follows:

YOU ARE THERE TO SELL LRH’s TECH TO THE SOCIETYAND GET IT USED, AS THE TECH. You do this through aSMOOTH JOB OF PROMTIONAL ORGANIZATION – FRONTGROUPS, CORPORATIONS, FIELD WORKERS, ETC.(emphases in original).

The SOCO Directive expressly directed the use of front groups to introduce L. Ron

Hubbard’s “technology,” i.e., Scientology, to society.

55. No one at Fresh Start ever spoke to Wes about the specifics of his life or substance abuse.

56. Wes was alarmed by the bizarre practices in which he was instructed to engage at Fresh

Start. They bore no apparent connection to the treatment of substance abuse.

57. Wes left Fresh Start after approximately three weeks because he was not receiving

anything resembling treatment nor anything resembling what Plaintiffs had been promised.

RELATIONSHIP AMONG DEFENDANTS

58. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set

forth in the preceding paragraphs and further alleges as follows:

59. Defendant Narconon Fresh Start has all appearances of being a corporate sham illusion and

mere instrumentality of Defendants NI, ABLE, and Western.




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60. ABLE, NI and Western heavily influence Narconon Fresh Start and govern and control

nearly every aspect of Narconon Fresh Start’s business activities.

61. NI publishes operations manuals and requires that individual Narconon centers such as

Narconon Fresh Start d/b/a Sunshine Summit Lodge abide by these manuals in their operations.

These operations manuals are called “Running An Effective Narconon Center” and “Opening A

Successful Narconon Center.”

62. These manuals show that NI, ABLE, and Western have the ultimate authority over

Narconon Fresh Start employees. Narconon Fresh Start cannot demote, transfer, or dismiss a

permanent staff member at Narconon Fresh Start without approval from the Senior Director of

Administration at NI.

63. NI, ABLE and Western have the ultimate authority over the hiring of staff members at

Narconon Fresh Start. If a Narconon Fresh Start staff member does not meet the qualifications of a

staff member, the staff member may petition the Senior Director of Administration at NI to remain

on staff.

64. If a staff member at Narconon Fresh Start believes she has been given orders or denied

materials that make it hard or impossible for her to do her job, she may file a “Job Endangerment

Chit” with the Ethics Department at NI. NI and Western then investigate and work to resolve the

staff member’s issue.

65. The operations manuals require staff members at Narconon Fresh Start to report

misconduct and “nonoptimum conduct’ to the Quality Control Supervisor at NI. NI and Western

investigate misconduct at Narconon Fresh Start and may take disciplinary actions against its staff

members.

66. NI receives ten percent of the weekly gross income from Narconon Fresh Start.




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67. NI requires Narconon Fresh Start to send it detailed weekly reports containing statistics of

more than 40 different metrics. NI and Western review these weekly reports and order changes at

Narconon Fresh Start based on increases or decreases in the statistics in the reports.

68. NI, Western, and ABLE require that Narconon Fresh Start receive approval on all

promotional materials before Fresh Start disseminates them. Further, Fresh Start must obtain

approval as to its Internet websites from NI, Western, and ABLE before the sites “go live.”

69. NI, Western and ABLE also assist in creating Narconon Fresh Start’s advertising

materials. NI, Western and ABLE dictate the contents of those advertising materials.

70. NI requires that Narconon Fresh Start maintain a “building account fund” in which weekly

monies from the gross income are used to purchase new premises and also as a cushion to salvage

the organization in dire circumstances. The “building fund” is under the control of NI.

71. Upon information and belief, Western receives a percentage of Fresh Start’s gross income.

72. NI, Western and ABLE conduct “tech inspections” at Narconon Fresh Start. These

inspections entail NI, Western, and ABLE monitoring and correcting the manner in which

Narconon Fresh Start delivers the Narconon treatment program to patients at Fresh Start. NI,

Western, and ABLE instruct staff at Fresh Start as to the exact manner in which they are to

perform their services and deliver the Narconon treatment program.

73. NI and ABLE also publish all training materials for Narconon Fresh Start. This includes

seven different training materials on subjects ranging from the Narconon sauna program to

overseeing to delivering the Narconon treatment program.

74. NI, Western, and ABLE micro-manage individual Narconon centers such Fresh Start d/b/a

to such a large extent that they publish the exact materials authorized to be sold in an individual

Narconon center’s bookstore.




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75. Further, the NI Director of Technology and Approval demands and ensures that there are

good photos of L. Ron Hubbard visible in every center and that materials are available to students

and staff as to L. Ron Hubbard’s contributions in the field of alcohol and drug rehabilitation.

76. NI, Western, and ABLE work with individual Narconon centers such as Fresh Start on

legal problems, including patient requests for refunds and complaints to the Better Business

Bureau. In addition, NI, Western, and ABLE work to combat negative publicity for Fresh Start.

77. NI, Western, and ABLE are intimately involved in the day-to-day operations of Narconon

Fresh Start. NI, Western, and ABLE have the final authority over all decisions at Narconon Fresh

Start relating to hiring and firing, delivery of services, finances, advertising, training, and general

operations.

78. NI, Western, and ABLE perpetrate this scheme to recruit for and promote the Scientology

religion under the guise of providing drug rehabilitation.

79. NI, Western, and ABLE all are principals served by their agent, Fresh Start.

80. NI, Western, ABLE, and Fresh Start work with the same interventionists on a routine basis

such as Defendant Kevin Ray d/b/a Second Wind Intervention.

81. Persons from the Narconon network such as Defendants herein recommend that families

use on of Narconon’s recommended interventionists. Because the interventionist receives the

referral from Narconon, the interventionist does not inform the family of Narconon’s connections

to Scientology.

82. The Narconon network also warns interventionists against telling families that Narconon is

associated with Scientology.

83. Each of the claims below is made against NI, ABLE, Western, and Fresh Start only.

Plaintiffs’ claim for civil conspiracy is made against all Defendants herein.




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FIRST CLAIM FOR RELIEF

DAMAGES FOR FEDERAL WIRETAP VIOLATIONS UNDER 18 U.S.C. § 2520

84. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation

set forth in the preceding paragraphs and further allege as follows:

85. Defendants use scripts to route person from a website that purports to be a site for a non-

profit referral service for persons seeking help finding an appropriate rehabilitation facility. This

website is www.drug-rehabs.org.

86. The website www.drug-rehabs.org is owned and operated by Narconon Fresh Start. A copy

of the script that Defendants use to route persons from this site to Narconon Fresh Start is attached

hereto as Exhibit I.

87. Using this script, a Fresh Start staff member poses as a drug and alcohol counselor

working for a non-profit referral service. The staff member manipulates the caller by, inter alia,

purporting to make an assessment of the addict’s situation and declaring that the addict has a

“Category 3 Drug Addiction.” Exhibit I, p.4. In reality, the Fresh Start staff member is not making

an assessment, but instead is merely reading from the script that has pre-determined the addict has

a “Category 3 Drug Addiction.”

88. The Fresh Start staff member then uses the script to steer the person to want to seek

treatment at Fresh Start. When the caller is ready to speak to a salesperson or “registrar” at Fresh

Start, the caller is to be “tagged live” to the Fresh Start salesperson. Id . at p.8. This means that the

call is transferred from the Fresh Start staff member posing as an independent referral service to a

Fresh Start salesperson.

89. The script advises Fresh Start staff to “ALWAYS TAG LIVE, if the person does not want

to talk to a counselor, bring them back to the ruin, remind them they said they were willing to do

whatever it takes, ICE WATER DIP them with major problems you uncovered, let them know

what will happen if ____ doesn’t get the right help.” Id . at 8. (emphases and blank in original)


http://www.drug-rehabs.org/










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90. The script then indicates that Fresh Start is recording its sales calls and using the

recordings to conduct further analyses: “(Typically if the person does not want to get tagged, you

have left out a step or not handled an objection properly, bring a copy of the reach sheet and the

TAPE (you should have taped it) to Qual and ask qual to listen to the tape with you to see where

the TECH went out or was left out).” Id . at 8.

91. Fresh Start, acting on behalf of all Defendants, routinely records its sales calls and saves

those recordings in a library of sorts for further study.

92. Fresh Start deliberately and purposely recorded its calls with Plaintiffs without their

knowledge.

93. During Plaintiffs’ calls with Fresh Start they provided extremely private information about

their family, financial situation, and embarrassing details about Plaintiff Wes Martin’s substance

use. Plaintiffs had a reasonable expectation of privacy in conversations with Fresh Start.

94. Fresh Start never asked Plaintiffs for permission to record their conversations. If Fresh

Start had asked, Plaintiffs would not have granted the request.

95. Fresh Start, acting on behalf of all Defendants, violated Plaintiffs’ rights under 18 U.S.C. §

2511 et seq. by intentionally recording their private conversations with Fresh Start salespersons

without Plaintiffs’ permission.

96. Fresh Start further violated Plaintiffs’ rights by disclosing the recording of their

conversations to others as a means of teaching the high pressure and deceptive sales techniques

Fresh Start uses.

97. For Defendants’ violations of 18 U.S.C. § 2511 et seq., Plaintiffs are entitled to all

damages recoverable under 18 U.S.C. § 2520, including, without limitation, costs and reasonable

attorneys’ fees, punitive damages, injunctive relief, and statutory damages.




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SECOND CLAIM FOR RELIEF

UNJUST ENRICHMENT

98. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation

set forth in the preceding paragraphs and further allege as follows:

99. Defendants received benefits from Plaintiffs including, without limitation, $31,000.00 for

drug rehabilitation services that Defendants promised to provide.

100. Defendants did not provide, nor were they even equipped to provide, Plaintiff Wes Martin

any of the drug rehabilitation services they promised to provide.

101. Under the circumstances, it would be unjust to allow Defendants to retain the benefits they

retained from Plaintiffs.

THIRD CLAIM FOR RELIEF

FRAUD


forth in the preceding paragraphs and further allege as follows:

103. The following is a non-exhaustive list of false representations Defendants knowingly

made to the Plaintiffs: (i) that the Narconon Fresh Start program has a 76% success rate; (ii) that

the Narconon program is secular and does not involve the study or practice of any religion; (iii)

that Wes Martin would receive counseling related to substance abuse at Fresh Start; (iv) that

Narconon’s sauna program , i.e, the Purification Rundown, is safe and has been scientifically

proven as safe and effective in reducing or eliminating drug cravings; and (v) and that Wes Martin

would be under the care of licensed medical professionals such as doctors or nurses at Fresh Start.

104. Dan Carmichael, acting within the scope of his employment at Fresh Start, made these

statements to Plaintiffs on or about July 23, 2014, to induce them to send their son to Fresh Start.

105. Had Plaintiffs known that any of the above representations Defendants made were false,

they would not have sent Wes to Fresh Start, nor paid Defendants a substantial sum of money.




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106. As a proximate result of Defendants’ fraudulent conduct, Plaintiffs have suffered damages

in excess of $75,000.00.

FOURTH CLAIM FOR RELIEF

NEGLIGENT MISREPRESENTATION



108. Defendants made the following false representation of fact to Plaintiffs: (i) that the

Narconon Fresh Start program has a 76% success rate; (ii) that the Narconon program is secular

and does not involve the study or practice of any religion; (iii) that Wes Martin would receive

counseling related to substance abuse; (iv) that Fresh Start’s sauna program , i.e, the Purification

Rundown, is safe and has been scientifically proven as safe and effective in reducing drug

cravings; and (v) and that Wes Martin would be under the care of licensed medical professionals

such as doctors or nurses at Fresh Start.

109. Dan Carmichael, acting within the scope of his employment at Fresh Start, made these

statements to Plaintiffs on or about July 23, 2014, to induce them to send their son to Fresh Start.

110. Defendants made these statements to Plaintiffs in the course of their business. These

statements were for Plaintiffs’ guidance in their transaction with Defendants. Plaintiffs relied on

these false statements of fact resulting in substantial pecuniary loss and other injuries.

111. Defendants made these statements without exercising reasonable care.

FIFTH CLAIM FOR RELIEF

BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING






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113. The contract Plaintiffs entered into with Defendants for Defendants to provide treatment

to Wes Martin contained an implied covenant of good faith and fair dealing.

114. Defendants acted unfaithfully to the purpose of the contract and Plaintiffs justified

expectations by, inter alia: (1) having Wes Martin unwittingly study and practice Scientology in

lieu of engaging in drug treatment; and (2) attempting to have Wes Martin surrender his legal

rights in exchange for services for which Plaintiffs had already provided consideration; and (3)

persuading Plaintiffs to send Wes to Fresh Start with promises that Narconon’s sauna program

would reduce or eliminate his drug cravings by flushing toxins and then asking Wes at Fresh Start

to sign an acknowledgement that the sauna program is not a medical program and that it provides

no physical gains.

115. As a consequence of Defendants’ breaches, Plaintiffs have suffered damages.

SIXTH CLAIM FOR RELIEF

CIVIL CONSPIRACY (AS TO ALL DEFENDANTS)



117. Defendants intended to act in concert to accomplish the unlawful objectives of

indoctrinating and recruiting Plaintiff Wes Martin into Scientology under the guise of providing

him with drug treatment.

118. In carrying out this conspiracy, it was necessary for Defendants to commit numerous

deceptive trade practices under NRS 598.0915 to 598.0925, inclusive.

119. Defendant Ray, in his capacity as Plaintiffs’ interventionist, was a knowing participant in

this conspiracy to indoctrinate Plaintiff Wes Martin into Scientology under the guise of providing

him drug treatment.

120. As a proximate result of Defendants’ intentional actions in concert to accomplish unlawful

objectives to harm Plaintiff Wes Martin, he has been deprived of actual drug treatment.




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SEVENTH CLAIM FOR RELIEF

INJUNCTIVE RELIEF PURSUANT TO NRS § 41.600



122. By reason of Defendants’ actions complained of herein, Plaintiffs are victims of consumer

fraud.

123. Defendants have engaged in numerous deceptive trade practices as defined in NRS

598.0915 to 598.0925, inclusive. The following is a non-exhaustive list of the deceptive trade

practices Defendants have engaged in with respect to Plaintiffs: (i) advertising substance abuse

treatment with the intent not to sell them as advertised by providing Scientology instead; (ii)

knowingly making false representations about the Narconon treatment program’s success rate, the

personnel delivering the treatment program, and the benefits of the sauna program; (iii) using “bait

and switch” advertising whereby Defendants advertise extensive substance abuse counseling and

treatment and then deliver a “treatment” program wherein the patient receives only Scientology

teaching and dangerous Scientology rituals; (iv) failing to disclose material facts to Plaintiffs

about the services Defendants were selling including, but not limited to, the fact that Defendants’

“treatment” program consisted of Scientology doctrines and practices and the staff at Fresh Start

consisted of graduates of the Narconon treatment program without any other qualification; and (v)

making assertions of scientific, clinical, or quantifiable fact without having appropriate evidence

such as Defendants’ assertions of its 76% “success rate” for its treatment program and Defendants’

claims that the New Life Detoxification Program can reduce or eliminate drug cravings.

124. Plaintiffs have been the victims of Defendants’ deceptive trade practices listed above and,

as a result, have suffered substantial pecuniary damages and other injuries.

125. Defendants’ deceptive trade practices are likely to continue without court intervention.




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126. Plaintiffs are entitled to all available relief under NRS § 41.600 including Plaintiffs’

attorney’s fees and costs of this action, Plaintiffs’ damages, and an injunction restraining

Defendants from further engaging in the deceptive trade practices complained of herein.

DEMAND FOR JURY TRIAL

Plaintiffs demand a jury trial on all issues triable.

PRAYER FOR RELIEF

WHEREFORE, Plaintiffs prays for the following relief:

A. Judgment in favor of Plaintiffs and against Defendants for damages in such amounts as

may be proven at trial;

B. Compensation for special, general, and treble damages;

C. Reasonable attorney’s fees and costs of suit;

D. Interest at the statutory rate;

E. Punitive or exemplary damages against Defendants; and

F. Injunctive relief prohibiting Defendants from further engaging in deceptive trade practices.

DATED this 29th day of September, 2014.

Respectfully submitted,

By:_/s/Ryan A.Hamilton_

RYAN A. HAMILTON, ESQ. NEVADA BAR NO. 11587HAMILTON LAW5125 S. Durango Dr., Ste. CLas Vegas, NV 89113(702) 818-1818

(702) [email protected]


Documents

Martin v. Narconon: Complaint