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Case 1:13-cv-05289-AJN Document 23

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UNIl'ED STATES DIS TRICl'CO UIIT SOT]THEIiN DISTI{TCT OF NEW YOII K

i and WAR CllIrSl- PUi]LISHING. I-LC. Plaintiffs.

'' DUCOI'E.CiJAPMz\1.DiiCOl-tr. "N{.K i KRIS'l'rN

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FITTST AMENDEI) COMPLAII\T KICK STAI{TEI{. INC].. Def-endar-rt

AUO1 4 2013

Plaintil'1s Kristin "M.K." Ducotc("MK"), Chapman Ducote("Chapman"), and war ChestPtrblishing. I-LC ("\\/rr Chest")(collcctivcll', "tltc Lritcoics"). bi andtluoughtlicii undersigned attornel'. RhettO. MillsapsII. fbr their frrst amended contplaint against defendant Kickstarter, Inc. ('-Kickstarter") aliege asfbllows: NATUI{E OF THE ACTION l. l'lris actionarises l'rcim Kickstarter's deceptive consumer business practices.

n'illful and nralicious breach of its obligations underits orvn ferms of tJse,tortiousinterference u'ith prospective business relations, and dcfan-ratory conductwhen it arbitrarilv, irrationally. artd/or in bacifaith suspended the Ducotcs'croud-lundingcampaign on its rvebsite r.vithout just a rveekafterhavingrcvieu'ed lloticecirexplanation and appror.ed the campaign fbr launch andjtrst as the can'rpaign rvastakingolTlbllor.ving the Ducotes'appearance on a rvildlv popular television shou'. 2. MK is an attortrev lurnedaspiring novelist:aftersellpublishing]rerfirst novel,

- a nor,'el NukedPudclock about"life, iove.andthe dramasurrounding the adrenaline fueled uorlcl of motorsports" bersed on her iifc ariderpericnccs rvith her husband. entreprencur and

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noted race-car driver, Chapman she chose Kickstarter as a platform and strategy to raise funds for publication of Naked Paddock concurrently with her and Chapmans appearances on the upcoming season of a popular American television show. 3. As discussed more fully below, in or around January 2013, the Ducotes launched

a campaign to raise funds for publication of Naked Paddock on Kickstarters popular crowdfunding website. In contravention of its advertised policies, in breach of its obligations to the Ducotes, and despite having approved the campaign for Naked Paddock according to its stated guidelines, Kickstarter suspended the campaign for Naked Paddock just days after approving it, with no notice or explanation to the Ducotes, and just as the Ducotes and the campaign began gaining national exposure through their television appearances and related media coverage. 4. As a result of Kickstarters deceptive advertising and business practices, breach

of its own Terms of Use, and other illegal conduct detailed below, the Ducotes have been and continue to be irreparably harmed. Accordingly, the Ducotes are entitled to judgment awarding them injunctive and declaratory relief to restrain Kickstarter from continuing its deceptive business practices and to declare invalid and unenforceable the unconscionable provisions of its Terms of Use. Additionally, the Ducotes are entitled to judgment awarding them no less than $1,000,000 in compensatory, consequential, and punitive damages, together with attorneys fees and costs. PARTIES 5. Plaintiff Kristin M.K. Ducote (MK) is an attorney turned aspiring novelist,

first-time author of the novel Naked Paddock, and, together with her husband, plaintiff Chapman Ducote, the owner of plaintiff War Chest Publishing, LLC. MK resides in Miami-Dade County, Florida.

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6.

Plaintiff Chapman Ducote (Chapman) is an entrepreneur, professional race-car

driver, and well known celebrity who, together with his wife, MK, is the owner of plaintiff War Chest Publishing, LLC. Chapman resides in Miami-Dade County, Florida. 7. Plaintiff War Chest Publishing, LLC (War Chest) is a Florida limited liability

company with its principal place of business in Miami-Dade County, Florida. 8. Defendant Kickstarter, Inc. (Kickstarter) is a Delaware corporation registered in

New York with its principal place of business in New York County, New York. JURISDICTION 9. This Court has diversity jurisdiction over this action pursuant to 28 U.S.C. 1332

because the action is between citizens of different states and the amount in controversy exceeds $75,000, exclusive of interest and costs. 10. This Court has personal jurisdiction over defendant, and venue is proper in this

District pursuant to 28 U.S.C. 1391, because defendant maintains its principal place of business in New York County, New York. 11. Venue additionally is proper in this District because the dispute is based in part on

an agreement entered by the parties that contains a New York forum-selection clause. STATEMENT OF FACTS Kickstarters Service and Representations to Public Consumers 12. Upon information and belief, Kickstarter is a private, for-profit company founded

in 2009 that provides an online platform for individuals to raise funds for creative projects such as books, films, video games, and stage shows from members of the consuming public through crowd funding. Kickstarters website boasts that, since its launch in 2009, more than 4.4 million people have pledged over $697 million, funding more than 45,000 creative projects and

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that [t]housands of creative projects are raising funds on Kickstarter right now. Time magazine named Kickstarter one of the Best Inventions of 2010 and Best Websites of 2011. 13. Kickstarter allows members of the public, such as plaintiffs, to create individual

project pages on its website to solicit and receive donations from other members of the public to fund their creative projects. Individual project creators set concrete fundraising goals (i.e., a specific dollar amount and date by which the goal must be reached) on their project pages; members of the public are able to browse, review, and pledge funds to any of the live projects on Kickstarters website. If enough individuals pledge enough money to reach a projects fundraising goal by the specified date, Kickstarter collects the pledged funds from the project backers (using their pre-provided credit card information) and passes those funds to the project creator, retaining a fee (currently 5% of the total amount raised) for its services. 14. Kickstarter advertises its service and makes representations to the general public

through its website, which states, Our mission is to help bring creative projects to lifeWe believe that creative projects make for a better world, and were thrilled to help support new ones. Building a community of backers around an idea is an amazing way to make something new. 15. Kickstarter boasts on its website that to date an impressive 44% of projects have

reached their funding goals. Kickstarters website is replete with examples of success stories like Amanda Palmer, who rallied 25,000 backers to support her album, book, and tour. Kickstarter further advertises that 94% of successfully funded projects raise more than their funding goal. 16. Upon information and belief, high-profile individuals like the Ducotes have been

particularly successful in using Kickstarter to fund their creative projects, including authors Dan

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Harmon, Kevin Kelly, Neal Stephenson, and Seth Godin; filmmakers Bret Easton Ellis, Colin Hanks, Ed Begley, Jr., Gary Hustwit, Hal Hartley, Jennie Livingston, Mark Duplass, Matthew Modine, Paul Schrader, Ricki Lake, Whoopi Goldberg, and Zana Briski; and musicians Amanda Palmer, Daniel Johnston, Stuart Murdoch, and Tom Rush. 17. For example, upon information and belief, producers and stars of the television

series Veronica Mars launched a campaign on Kickstarter around March 2013 to fund production of a Veronica Mars movie; the effort received widespread media attention, and they reached their $2 million fundraising goal in less than ten hours (ultimately raising $5.7 million by the time the campaign ended). 18. Kickstarter additionally states on its website, The filmmakers, musicians, artists,

and designers you see on Kickstarter have complete control over and responsibility for their projects. Kickstarter is a platform and a resource; were not involved in the development of the projects themselves. Anyone can launch a project on Kickstarter as long as it meets our guidelines. 19. Consistent with this representation, Kickstarters website advertises, Once your

project has been submitted, a Project Specialist will review it against our Project Guidelines and let you know if its ready to go, needs a little work, or isnt a fit for Kickstarter. We'll get back to you in 2-3 business days on average. If changes need to be made, we'll let you know and rereview your project once its been updated. Depending on the amount of changes to be made, the entire process can take up to a week or more. Kickstarter further represents, were not screening for taste at all, we only take this step to ensure that your project meets our guidelines. Kickstarters Terms of Use 20. Kickstarter makes the same representations in its website Terms of Use (a true

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and correct copy of which is attached hereto as Exhibit 1), which unequivocally state, We dont curate projects based on taste. Instead, we do a quick check to make sure they meet these guidelines. 21. Kickstarters Terms of Use constitute an agreement that purports to set[] forth

the legally binding terms and conditions for [an individuals] use of Kickstarters website and service, and state, By using the Service in any manner, including, but not limited to, visiting or browsing the Site or contributing content, information, or other materials or services to the Site, you agree to be bound by this Agreement. 22. In addition to clearly defining eligibility criteria and approval guidelines for

projects, Kickstarter states in the Terms of Use, but nowhere in the extensive advertising and representations on the face of its website, that Kickstarter (i) may, in its sole discretion, refuse to offer the Service to any person or entity and change its eligibility criteria at any time; (ii) reserves the right to reject, cancel, interrupt, remove, or suspend a campaign at any time and for any reason; and (iii) may terminate your access to the Service, without cause or notice, which may result in the forfeiture and destruction of all information associated with your account. The Terms of Use further purport to limit and/or disclaim Kickstarters liability for suspending or terminating a campaign with no notice and for any or no reason. The Ducotes Submit, Kickstarter Approves, and the Ducotes Rely on a Campaign for Naked Paddock 23. Based on Kickstarters representations on its website and extensive media

coverage regarding projects successfully funded using its service, including books similar to MKs novel, Naked Paddock, the Ducotes decided to use Kickstarter as the sole platform through which they would raise funds for the publication of Naked Paddock (the Project). 24. The Ducotes planned the launch of the Project around their appearances on the

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third season of the popular television show, Kourtney & Kim Take Miami (Kardashians), to maximize the Projects exposure to their fans and supporters. The Ducotes began their appearances on Kardashians on the third season premiere, which aired on January 20, 2013. Upon information and belief, the second season finale of Kardashians drew 3.656 million viewers, and the second season averaged 2.717 million viewers. 25. In or around January 2013, and in preparation for the upcoming season premiere

of Kardashians, the Ducotes registered with Kickstarter and submitted their Project for approval. The Project page sought to raise $20,000 to be used for publication of Naked Paddock; individual funders were offered various rewards for their contributions to the campaign, including electronic and printed copies of Naked Paddock and opportunities to meet the Ducotes. 26. While the Ducotes expected to raise more than $100,000 through Kickstarter for

the publication of Naked Paddock based on Chapmans celebrity, the Ducotes upcoming appearance on a popular television show, and the success of many other Kickstarter creators with similarly high profiles and public exposure the Ducotes intentionally set their Project fundraising goal at $20,000 because, upon information and belief, substantially exceeding the target fundraising goal would have placed the Project page in the most funded category of projects listed on the front page of Kickstarters website. Moreover, Kickstarter encourages project creators to set low goals, stating in its published materials, Because funding is all-ornothing, you can always raise more than your goal but never less. 27. The Ducotes invested substantial resources in planning, creating, and launching

the Project, following Kickstarters own published guidelines to ensure a successful campaign. The Ducotes, inter alia, (i) spent substantial time and effort to complete Kickstarters setup process, including without limitation organizing bank account details, tax paperwork, and

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identity verification; (ii) invested a substantial sum of money and time to create a video trailer for the Project based on Kickstarters representation that [p]rojects with a video succeed at a much higher rate (50% vs. 30%), and they also raise more money. So we highly recommend that you include one!; and (iii) dedicated a full-time employee to handle all Kickstarter-related correspondence and paperwork based on their reasonable expectation of success. 28. In addition to preparing materials to submit to Kickstarter for the Projects

campaign page during the fourth quarter of 2012, the Ducotes hired a top-tier public relations firm to guide and promote the Project based on Kickstarters published advice to [c]ontact your local newspaper, TV, and radio stations and tell them about your project. Seek out like-minded blogs and online media outlets to request coverage. Writers are always looking for stories to write about, and the media has a big soft spot for DIY success stories. 29. On January 14, 2013, Kickstarter sent the Ducotes an email stating that the

Project had been reviewed by Kickstarter and approved for launch. Kickstarter concurrently gave the Ducotes the ability to make the Project live on Kickstarters website at any time of their choosing; the Ducotes did so on January 17, 2013, based on careful planning with their publicrelations advisors. 30. Had Kickstarter not approved the Project for launch, the Ducotes would have used

a different platform and strategy to raise funds for the publication of Naked Paddock. 31. Moreover, the Ducotes went forward with the Project on Kickstarter based on

representations and conduct by Kickstarter that led them to believe that they would have a chance to cure any problems with the Project should they arise. For instance, with regard to copyright disputes, Kickstarter states on its website, To avoid unnecessary disruption, projects in question are typically removed from public view but are not immediately canceled. This

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keeps pledge authorizations and lines of communication intact, and leaves room for project recovery where appropriate. 32. Beginning on January 17, 2013, individuals began making pledges on the Project

page. Upon information and belief, traffic to the Page began rising dramatically after the first Kardashians episode featuring the Ducotes aired on January 20 and 21, 2013. Without Warning or Explanation, Kickstarter Suspends the Project Just One Week After Having Reviewed and Approved It 33. On January 22, 2013, without notice or explanation to the Ducotes, Kickstarter

suspended the Project just one week after it had reviewed and approved the Project for launch by freezing the Project page and placing the word SUSPENDED in large, red letters at the top of the page. 34. In an email on January 22, 2013, Kickstarter notified the Ducotes that their

Project had been suspended and that the action was not reversible. The email further stated, As a policy, Kickstarter does not comment on specific reasons for a projects suspension to the creators or backers, but included below is information from our FAQ regarding suspensions. Kickstarters FAQ (also posted publicly on Kickstarters website) states that a project may be suspended by Kickstarter if it [v]iolates or acts inconsistently with the letter or spirit of the Kickstarter Guidelines or Terms of Use, [m]aterially changes the stated use of funds, [m]akes unverifiable claims, or [e]xhibits actions that are more closely associated with fraudulent or high-risk activity. 35. As a result, anyone who visited the Project page on or after January 22, 2013 saw

that the Project was suspended, with no explanation as to why, and was unable to pledge funds to the Project or communicate with the Ducotes through Kickstarter. 36. The Ducotes were surprised and shocked by Kickstarters actions, having been led

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to believe by Kickstarters advertising, the widely publicized and successful completion of similar campaigns, and communications from Kickstarter that their campaign met Kickstarters guidelines. Moreover, the Ducotes had been careful to follow and comply with Kickstarters stated policies and guidelines prior to and after the launch of the Project to ensure its success. 37. The Ducotes made repeated attempts to contact Kickstarter to ascertain a reason

for the Projects suspension and to remedy the situation; to date, those communications have gone unanswered by Kickstarter. 38. Because the Ducotes and the Project met Kickstarters stated policies and

guidelines, and based on the successful completion of similarly situated, widely publicized campaigns on Kickstarters website, the only reasonable conclusion is that Kickstarter suspended the Project based on its own unstated criteria of taste, in direct contradiction of its advertised policies and the Terms of Use. 39. In the wake of the Projects suspension, the Ducotes friends and acquaintances

who had visited the Project page and tried to pledge their donations called MK and Chapman with questions about the suspension that the Ducotes were unable to answer; many had the mistaken impression before speaking with the Ducotes that the Ducotes had done something wrong, that the book did not exist, or that the Ducotes themselves had pulled the plug on the campaign and their plans to publish the book. 40. Press articles subsequently were written about the Ducotes, Kardashians, and

Naked Paddock that discussed the Project and its suspension that likewise gave no explanation for the suspension, thus inevitably leaving the impression that the Ducotes had done something nefarious and/or that the book did not exist or was somehow a fraudulent product. 41. To date, the suspended Project page remains on Kickstarters website, is readily

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available to the public by searching Kickstarters website or any popular web search tool (e.g., Google), and gives no explanation as to why the Project was suspended five days after launch and after individuals had begun pledging funds to the Project. FIRST CAUSE OF ACTION Violation of New York General Business Law 349 42. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 43. Kickstarters actions alleged herein constitute unlawful, unfair, and deceptive

business practices. 44. Kickstarters conduct constitutes acts, uses, and/or employment by Kickstarter

and/or its agents or employees of deception, fraud, unconscionable and unfair commercial practices, false pretenses, false promises, misrepresentations and/or the knowing concealment, suppression, and/or omission of material facts with the intent that others rely upon such concealment, suppression or omission, in connection with the sale or advertisement of services and with the subsequent performance of services and transactions, in violation of section 349 of New Yorks General Business Law. 45. 46. Kickstarters acts and omissions were generally directed at the consuming public. The unfair and deceptive trade acts and practices of Kickstarter have directly,

foreseeably, and proximately caused damages and injury to the Ducotes. 47. Kickstarters violations of section 349 of New Yorks General Business law have

damaged the Ducotes and threaten additional injury if the violations continue. 48. 49. The Ducotes have no adequate remedy at law. The Ducotes accordingly are entitled to damages, injunctive relief including an

order enjoining Kickstarters Section 349 violations alleged herein reasonable attorneys fees,

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and costs. SECOND CAUSE OF ACTION Breach of Implied Covenant of Good Faith and Fair Dealing 50. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 51. In or around January 2013, the Ducotes accepted Kickstarters Terms of Use by

registering, creating, and launching the Project on Kickstarters website, thereby entering a binding contract with Kickstarter. 52. New York law implies in every contract a covenant of good faith and fair dealing

pursuant to which neither party may do anything that has the effect of destroying or injuring the right of the other party to receive the fruits of the contract. 53. Where, as here, a contract contemplates the exercise of discretion by one party

(e.g., Kickstarters discretion to suspend an active project campaign), the implied covenant of good faith and fair dealing includes a promise not to act arbitrarily, irrationally, or in bad faith in exercising that discretion. 54. Kickstarter breached the implied covenant of good faith and fair dealing between

the parties by acting arbitrarily, irrationally, and/or in bad faith by suspending the Project and failing to provide its service without notice, reason, or opportunity to cure to the Ducotes on January 22, 2013, one week after Kickstarter had approved the Project for launch pursuant to its publicly advertised policies and guidelines stated in its own Terms of Use. 55. The Ducotes fully performed their obligations under the Terms of Use by, inter

alia, creating and submitting the Project materials pursuant to Kickstarters guidelines, directing their supporters to the Project page on Kickstarters website, and agreeing to Kickstarters fee arrangement.

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56.

As a direct and proximate result of Kickstarters breach of its obligations under

the covenant of good faith and fair dealing implied in the Terms of Use, the Ducotes have incurred substantial compensatory and consequential damages in an amount to be determined at trial, but no less than $1,000,000, comprising lost potential fundraising and book sales, lost media exposure, wasted publicity and campaign expenditures, and reputational damage. 57. In addition, the Ducotes are entitled to reasonable attorneys fees and costs for

this action pursuant to the Terms of Use. THIRD CAUSE OF ACTION Declaratory Judgment - Unconscionability 58. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 59. An actual controversy exists as to whether the provisions of Kickstarters Terms

of Use that allow Kickstarter to suspend and/or terminate a previously approved, live project campaign without notice, for any or no reason, and without opportunity to cure, and that limit and/or disclaim Kickstarters liability for doing so (the Suspension Terms), are unconscionable and therefore invalid and unenforceable. 60. The Suspension Terms are procedurally unconscionable because the Ducotes

were forced to accept them, with no meaningful alternative, to use Kickstarters service. 61. The Suspension Terms are substantively unconscionable because they lack

mutuality, are entirely one-sided, and benefit only Kickstarter to the substantial detriment of its customers like the Ducotes. 62. Accordingly, the Ducotes are entitled to a declaratory judgment that the

Suspension Terms in Kickstarters Terms of Use are invalid and unenforceable as written, and therefore should be severed from the Terms of Use, due to procedural and/or substantive

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unconscionability. FOURTH CAUSE OF ACTION Breach of Contract 63. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 64. In or around January 2013, the Ducotes accepted Kickstarters Terms of Use by

registering, creating, and launching the Project on Kickstarters website, thereby entering a binding contract with Kickstarter. 65. Kickstarter breached the valid and enforceable provisions of the Terms of Use by

suspending the Project and failing to provide its service as agreed without notice, reason, or opportunity to cure to the Ducotes on January 22, 2013, just one week after Kickstarter had approved the Project for launch pursuant to its publicly advertised policies and guidelines stated in the Terms of Use. 66. The Ducotes fully performed their obligations under the Terms of Use by, inter

alia, creating and submitting the Project materials pursuant to Kickstarters guidelines, directing their supporters to the Project page on Kickstarters website, and agreeing to Kickstarters fee arrangement. 67. As a direct and proximate result of Kickstarters breach of its obligations under

the Terms of Use, the Ducotes have incurred substantial compensatory and consequential damages in an amount to be determined at trial, but no less than $1,000,000, comprising lost potential fundraising and book sales, lost media exposure, wasted publicity and campaign expenditures, and reputational damage. 68. In addition, the Ducotes are entitled to reasonable attorneys fees and costs for

this action pursuant to the Terms of Use.

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FIFTH CAUSE OF ACTION Tortious Interference with Prospective Business Relations 69. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 70. The Ducotes had established prospective business relationships with multiple

third parties, who pledged their financial support through Kickstaters website for the publication of Naked Paddock. 71. Kickstarter interfered with those business relationships by use of dishonest,

unfair, or improper means through the conduct detailed herein. 72. Kickstarters conduct was motivated solely by malice or to inflict injury by

unlawful means, beyond mere self-interest or other economic considerations. 73. As a direct and proximate result of Kickstarters tortious interference with the

Ducotes prospective business relationships, the Ducotes have incurred substantial compensatory and consequential damages in an amount to be determined at trial, but no less than $1,000,000, comprising lost potential fundraising and book sales, lost media exposure, wasted publicity and campaign expenditures, and reputational damage. 74. In addition, Kickstarters willful and malicious tortious conduct entitles the

Ducotes to punitive damages in an amount to be determined at trial. SIXTH CAUSE OF ACTION Libel Per Se by Implication Injury to Professional Reputation 75. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 76. Kickstarters statements and publications described herein concerned the Ducotes

and indicate the existence of other facts that are false and defamatory.

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77. 78.

Kickstarters statements were widely published and not privileged in any manner. Kickstarters statements were made with reckless disregard of their truth or falsity

and/or with malice. 79. Kickstarters statements were libelous per se because they injure the Ducotes

professional reputation. 80. Kickstarters publication of the Project page with a permanent suspension notice,

taken in the context of other statements published on Kickstarters website and written communications, gives the false impression that the Ducotes did something wrong, were engaged in fraudulent activity, and/or otherwise engaged in unprofessional or incompetent conduct, resulting in substantial damage to their professional reputations. 81. As a direct and proximate result of Kickstarters per se libelous conduct, the

Ducotes are entitled to compensatory and consequential damages in an amount to be determined at trial. SEVENTH CAUSE OF ACTION Trade Libel 82. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 83. Kickstarters statements and publications described herein concerned goods

offered for sale by the Ducotes and indicate the existence of other facts that are false and defamatory. 84. 85. Kickstarters statements were widely published and not privileged in any manner. Kickstarters statements were made with reckless disregard of their truth or falsity

and/or with malice. 86. Kickstarters publication of the Project page with a permanent suspension notice,

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taken in the context of other statements published on Kickstarters website and written communications, gives the false impression that the book, Naked Paddock, is a fraudulent product and/or that the book is no longer being published or available for sale. 87. As a direct and proximate result of Kickstarters libelous conduct, the Ducotes

have suffered special damages in the form of lost potential fundraising and book sales, lost media exposure, and wasted publicity and campaign expenditures in an amount to be determined at trial, but no less than $1,000,000. EIGHTH CAUSE OF ACTION Promissory Estoppel 88. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 89. Kickstarter, through its words and conduct, made definite and clear promises and

representations to the Ducotes that their Project met all of the guidelines for approval and use of the Kickstarter service, and that the Ducotes would have an opportunity to cure any deficiencies. 90. Kickstarter made the promises with the expectation that they would be relied upon

by the Ducotes. 91. The Ducotes acted reasonably and justifiably relied upon Kickstarters promises

and representations to their detriment by choosing Kickstarter as the sole platform to fulfill their Project and by planning, creating, and launching the Project on Kickstarters website following Kickstarters explicit approval of the Project for its service. 92. By virtue of Kickstarters breach of its promises, the Ducotes have been damaged

in all of the way described above. Accordingly, Kickstarter is estopped from suspending and/or terminating its provision of service for the Project.

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NINTH CAUSE OF ACTION Equitable Estoppel 93. The Ducotes incorporate by reference the allegations in each of the preceding

paragraphs as if fully set forth in this paragraph. 94. Kickstarter acted voluntarily, through words and deeds, with the intention that the

Ducotes rely upon those words and deeds. 95. The Ducotes relied in good faith upon the conduct, promises, and representations

of Kickstarter to their detriment. 96. As a result of Kickstarters misleading and inequitable conduct, Kickstarter is

precluded and estopped from suspending and/or terminating its provision of service for the Project. JURY TRIAL DEMAND Plaintiffs hereby request a trial by jury on all claims so triable. PRAYER FOR RELIEF WHEREFORE, plaintiffs respectfully request that the Court: A. Issue a permanent injunction, enjoining and prohibiting defendant from the

deceptive advertising practices described herein and requiring defendant to provide its customers with notice and an opportunity to cure before permanently terminating a live, active campaign on its website; B. Issue a judgment declaring that the Suspension Terms in defendants Terms of

Use are unconscionable and therefore invalid and unenforceable; C. Award compensatory and consequential damages to plaintiffs in an amount to be

determined at trial, but no less than $1,000,000, plus interest; D. Award punitive damages to plaintiffs in an amount to be determined at trial by

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virtue of defendants willful and intentional misconduct; E. F. Award reasonable attorneys fees and costs to plaintiffs; and Grant such other or further relief as the Court deems just and proper.

Dated: August 8, 2013 New York, New York

By: Rhett O. Millsaps II 44 W. 28th St., 8th Floor New York, NY 10001 Phone: (646) 535-1137 Fax: (646) 355-2816 rhett@rhettmillsaps.com Attorney for Plaintiffs Kristin M.K. Ducote, Chapman Ducote, and War Chest Publishing, LLC

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