FROM :|_PNAK AND HANNA

<
FAX NO. =7145500734 Mnv. 07 2006 11:45AM P3
^ 5^ y

CMC/Tt 1 LANAK & HANNA, P.C.

14148 400 North Tustin Avenue, Suite 120
2 Santa Ana, CA 92705-3815 IF O L E ! ® u v
11/02/07 Tel: 714/550-0418 Fax: 714/550-7603
3
By; CHRISTOPHERM. CULLEN, Bar No. 211166
4 cmcullen@lanak-hanna.com
5 Attorneys for Defendants
KENNETH M. PETERS, JK. AND A1.AN R. SPITALNICK
6
&
7 SUPERIOR COURT FOR THE STATE OF CALIFORNIA
8 COUNTV OF RIVERSIDE, RIVERSIDE BRANCH
9
10 SOUTHERN CALIFORNIA DISTRICT CASE NO. RIC 482762
COUNCIL OF THE ASSEMBLIES OF GOD, a
11 California Non-Profit Religious Corporation; and
NEW HOPE FAMILY WORSHIP CENTER, a "BY FAX"
12 California Non-Profit Religious Corporation
13 Plaintiffs,
v.
14
KENNETH M. PETERS, JR.; ALAN R.
15 SPITALNICK; ALL PERSONS UNKNOWN,
CLAIMING ANY LEGAL OR EQUITABLE
16 RIGHT, TITLE, ESTATE, LIEN, OR
INTEREST IN THE PROPERTY DESCRIBED
17 IN THE COMPLAINT ADVERSE TO
PLAINTIFFS' TITLE, OR ANY CLOUD ON
18 PLAINTIFFS' TITLE THERETO; and DOES 1
to 500, inclusive,
19 Defendants.
20
KENNETH M. PETERS, JR.; and CROSS-COMPLAINT OF KENNETH
21 ALAN R. SPITALNICK, M. PETERS, JR. AND ALAN R.
SPITALNICK FOR:
22 Cross-Complainants,
v. 1. DECLARATORY RELIEF;
23 2. ACTION TO QUIET TITLE;
THE SOUTHERN CALIFORNIA DISTRICT 3. TRESPASS TO LAND;
24 COUNCIL OF THE ASSEMBLIES OF GOD, a 4. CONVERSION
California non-profit corporation; and
25 ROES 1 through 50, inclusive,

26 Cross-Defendants.
27

28
tiMtNk * H*ADA, t.a.

CuUfl ISO
Ran ha Ana, Cfc
-1-
'/14/SSfl. 041ft CROSS-COMPLAINT
 K
FROM :l_ANAK AND HANNA FAX NO. :7145500734 '-"v\ 07 2006 11:46AM P4

CMC/rt
14148
11/02/07
1 GENERAL ALLEGATIONS

2 1. New Hope Family Worship Center ("New Hope") is and, at all times relevant hereto,

3 was an authorized California non-profit corporation authorized to do business in the state of

4 California.

5 2. Cross-Complainants Kenneth M. Peters, Jr. and Alan R. Spitalnick arc individuals

6 residing in the County of Riverside, State of California, and members of the Board of Directors of

7 New Hope,

8 3. Cross-Complainants are informed and believe and thereon allege that at all times

9 herein mentioned, Cross-Defendants, and each of them, were residents and/or doing business

10 Within the County of Riverside, State of California, and farther, that the activities complained of

11 and/or obligations sued upon herein arose within this judicial district, and that Cross-Defendants,

12 and each of them, are indebted to Cross-Complainants on the obligation sued on herein.

13 4. Cross-Complainants arc informed and believe and thereon allege that at all times

14 herein mentioned, Cross-Defendant, The Southern California District Council of the Assemblies

15 of God ("AOG"), is a non profit corporation with its principal location at 17951 Cowan, Irvine,

16 located in the County of Orange and State of California.

17 5. Cross-Complainants are ignorant of the true names and capacities of Cross-

18 Defendants sued herein as Roes 1 through 50, inclusive, and therefore sue these Cross-

19 Defendants by such fictitious names. Cross-Complainants will amend this Complaint to allege

20 their true names and capacities when ascertained. Cross-Complainants are informed and believe,

21 and thereon allege, that each of the fictitiously named Cross-Defendants is indebted to Cross-

22 Complainants as hereinafter alleged, and that Cross-Complainants' rights against such fictitiously

23 named Cross-Defendants arises from such indebtedness,

24 6. Cross-Complainants arc informed and believe and on that basis allege that, at all

25 times mentioned in this cross-complaint, one or more Cross-Defendants were the agents and

26 employees of one or more of their co-Cross-Defendants and, in doing the things alleged in this

27 cross-complaint, were acting within the course and scope of that agency and employment,

28 ///

b u n k i Hanna, F.C.
400 N. Til a t i n Ave
fltitt.n 130 -2-
Santa Ana, CA
•/•i«/i!m-<n.ni CROSS-COMPLAINT
 FROM :LPNPK PND HPNNP FPX NO. :7145500734 Mnv. 07 2006 11:46PM P5

CMC/rt
14148
11/02/07
1 7. At all relevant times leading up to August 15, 2007, New Hope conducted its

2 Teligious services and related activities at a certain real property (the "Property'*) located at 803

3 South Lincoln Ave., Corona, California 92882, legally described as:

4 Parcel 3, as shown on Record of Survey on file in Book 42 page 15, of

Records of Survey, Records of Riverside County California. Except the
5 portion granted to the City of Corona pursuant to a deed recorded April
1, 1965 as instrument # 37481 of Official Records of Riverside County,
6 California.

7 8. New Hope has held, and continues to hold, title to the Property in fee simple by

8 virtue of a grant deed recorded on or about November 4, 1997 as Instrument # 402488 of the

9 Official Records of Riverside County.

10 9. At all relevant times hereto, Cross-Complainant Kenneth M. Peters, Jr. ("Pastor

11 Peters") has continuously served and continues to serve as pastor at New Hope.

12 10. At all relevant times hereto, Pastor Peters held and continues to hold the title of the

13 chief executive officer of the New Hope, and president of the board of directors, and Cross-

14 Complainant Alan Spitalnick held and continues to hold the office of Treasurer of New Hope, and

15 serves as a member of the board of directors.

16 11. On August 9,2007 Pastor Peters renounced his AOG ministerial credential.

17 12. On or around August 9,2007 the New Hope board of directors voted to disaffiliate

18 from AOG and continue operating as an independent church.

19 13. Since its inception New Hope has been, and continues to act as, an independent and

20 sovereign church unbeholden to AOG or any other association of churches.

21 14. On or about August 15, 2007 Cross-Defendants, AOG, and Roes 1 through 50,

22 inclusive, attended a New Hope board meeting, forcefully removed Pastor Peters from the premises,

23 wrongfully attempted to oust Pastor Peters from his position as pastor, wrongfully attempted to

24 replace New Hope's existing board members, including Mr. Spitalnick.

25 15. From August 15, 2007 to the present time, Cross-Defendants, AOG, and Roes 1

26 through 50, inclusive, changed the locks to the Property, wrongfully maintained complete and

27 exclusive possession of the church, and have been wrongfully accessing Cross-Complainants' assets

28 including, but not limited to, funds in Cross-Complainants* bank accounts.

Xianak ft H u m s , P.C.
4UO N. T u n t i n Ave
SuiLd 120
•WHM A P A , CA
-3-
92705 3815
Yll/SSO-0-UO CROSS-COMPLAfNT""
 FROM 1LANRK PND HANNA FAX NO. 17145500734 WQV. 0 7 2 0 0 6 11:46AM P6

CMC/rt
14148
11/02/07
1 FIRST CAUSE OF ACTION

2 DECLARATORY RELIEF

3 (As against Cross-Defendants AOG, and Roes 1 through 50, inclusive)

4 16. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

5 complaint as though they are fully set forth, herein.

6 17. An actual controversy has arisen and now exists between Cross-Complainants, as

7 the duly elected and acting board of directors of New Hope, and Cross-Defendants AOG, and Roes

8 1 through 50, inclusive, concerning their respective rights and duties in that Cross-Defendants,

9 AOG, and Roes 1 through 50, inclusive, and New Hope both claim right to the funds in New

10 Hope's bank account and to possession of the Property, whereas each disputes Cross-Complainants'

II contention and alleges they are both individually entitled to the entirety of the funds in the Bank

12 Accounts and possession to the Property. Additionally, Cross-Complainants Pastor Peters and Alan

13 Spitalnick, as Board Members of New Hope, find their authority to act in such capacity has been

14 challenged by false and misleading representations and claims by Cross-Defendants, AOG, and

15 Roes 1 through 50, inclusive.

16 18. Cross-Complainants desire a judicial determination of its rights and duties, and a

17 declaration as to ownership of New Hope's assets, including but not limited to the funds in the New

18 Hope's Bank Accounts and possession of the Property. Further, Cross-Complainants requests a

19 declaration as to how the said assets should he released to the respective parties, to the extent such

20 assets arc held in trust or otherwise, by third parties. Finally, Cross-Complainants request a

21 declaration as to the officers as directors of the board of New Hope.

22 l3. Such a judicial determination is necessary and appropriate in order for Cross-

23 Complainants to recover its assets including, but not limited to, the funds located in various bank

24 and investment accounts and possession of the Properly.

25 SECOND CAUSE OF ACTION

26 ACTION TO QUIET TITLE

27 (As against Cross-Defendants AOG, and Rocs 1 through 50, inclusive)

28 20. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

.i

4 0 0 H. T t m h i n *vo
S u i t e 120 • 4-
Santa Ana, CA
037II Ft-.1A IS
711/500-OIID _^_c____r*__
 FROM :LANfiK AND HRNNA FAX NO. :7145500734 Nov. 07 2006 11:47AM P7

CMC/rt
14148
11/02/07
1 complaint as though they are fully set forth herein.

2 21. Cross-Complainants, as the duly elected and acting board of directors of New Hope,

3 has, at all relevant times, maintained valid title to the Property in fee simple. Since November 4,

4 1997, New Hope has been the record title holder of the Property in fee simple by virtue of a grant

5 deed recorded that date as Instrument it 402488 of the Official Records of Riverside County,

6 22. Cross-Complainants arc informed and believe and on that basis allege that one or

7 more Cross-Defendants claim an interest adverse to Cross-Complainants' title to the Property.

8 These claims are without any right and Cross-Defendants have no right, title, stake, lien, or interest

9 in the Property.

10 23. Cross-Defendants, AOG, and Roes 1 through 50, inclusive, asserted an adverse claim

11 over the Property and all of Cross-Complainants* assets when they Physically removed Pastor

12 Peters, Alan Spitalnick and the existing board members of New Hope from the Property against

13 their will and wrongfully look possession of the Property by changing the locks on all of the doors.

14 24. As a result, Cross-Complainant New Hope seeks a determination of its fee simple

15 title in this action as of the date that this complaint is filed.

16 THIRD CAUSE OF ACTION

17 TRESPASS TO LAND

18 (As against Cross-Defendants AOG, and Roes 1 through 50, inclusive)

19 25. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

20 complaint as though they are fully set forth herein.

21 26. Cross-Complainants, as the duly elected and acting board of directors of New Hope,

22 have retained title to the Property in fee simple at all times relevant hereto and, has maintained and

23 continues to maintain, the sole and exclusive property rights to the Property.

24 27. On August 15, 2007, Cross-Defendants, AOG, and Roes 1 through 50, inclusive,

25 unlawfully interfered with Cross-Complainants' possession of the Property. On the said date,

26 Cross-Defendants, AOG, and Roes 1 through 50, inclusive, physically removed the Cross-

27 Complainants for the Property, changed all of the locks on the said Property, and denied and

28 continues to deny the Cross-Complainants access to the Property.

LwtaJi t HUM**, P.fl.
4 0ft N. TUfltin AVrt
Suite lao -5-
UnuLtt Aim, C'A

714/55D-Q411 CROSS-COMPLAINT ™
 FROM :l_ANAK AND HANNA FAX NO. :7145500734 *'-iv. 07 2006 11:47AM P8

CMC/rt
14148
11/02/07
1 28. Cross-Defendants, AOG, and Rocs 1 through 50, inclusive, intentionally trespassed

2 onto Cross-Complainants* property when they wrongfully and forcefully took possession of the

3 Property on August 15, 2007 and are continuing to trespass on the property.

4 FOURTH CAUSE OF ACTION

5 CONVERSION (Count 1)

6 (As against Cross-Defendants AOC, and Roes 1 through 50, inclusive)

7 29. Cross-Complainants incorporate by reference paragraphs 1 through 15 of this

8 complaint as though they are fully set forth herein.

9 30. Cross-Complainants, as the duly elected and acting board of directors of New Hope

10 held a the right of possession to the Property at the time of conversion, because they had been

11 continuously in possession of the Property at all relevant times leading up to August 15, 2007. In

12 addition, Cross-Complainants held deed to the Property in fee simple at all relevant times hereto.

13 31. Cross-Defendants, AOG, and Roes 1 through 50, inclusive, intentionally and

14 wrongfully assumed control over the Property when they intruded on a New Hope board meeting,

15 physically removed Pastor Peter from the Property, changed the locks on the Property, and

16 prevented the Cross-Complainants from accessing the said Property.

17 32. Cross-Complainants, as the duly elected and acting board of directors of New Hope

18 have been damaged in the amount of the market value of the property valued at the time of the

19 conversion on August 15, 2007 plus the value of the business lost as a result of the conversion.

20 CONVERSION (Count ID

21 (As against Cross-Defendants AOG, and Roes 1 through 50, inclusive)

22 33. Cross-Complainants incorporate by reference paragraphs 1 through IS of this

23 complaint as though they arc fully set forth herein.

24 34. Cross-Complainants, as the duly elected and acting board o f directors of New Hope,

25 had the right to possession of all of the funds in the disputed bank accounts, because the accounts

26 were opened by Cross-Complainants and Cross-Complainants and its agents maintained sole and

27 exclusive control over the funds in the bank accounts prior to and until they were converted by

28 Cross-Dclbndants, AOG, and Roes 1 through 50, inclusive.

I*n*k * KAMI*. B.C.
400 H. T i i s i l n kv*i
Rulr.A 1311 -6-
Santn Ana, CA
CROSS-COMPLAINT
 FROM :l_ANAK AND HANNA FAX NO. :7145500734 K'^v. 07 200S 11:47AM P9

CMCM
14148
11/02/07
1 3 5. Cross-Defendants, AOG, and Roes 1 through 50, inclusive, wrongfully seized Cross-

2 Complainants' bank accounts by fraudulently representing to the bank that Pastor Peters was no

3 longer the pastor for Cross-Complainants and that Cross-Defendants, AOG, and Roes 1 through 50,

4 inclusive, had rightfully assumed control of Cross-Complainants, by changing the names of the

5 individuals that were entitled to access the accounts, and using the said funds within the Cross-

6 Complainants' accounts,
7 36. Cross-Complainants seeks damages in the value of funds contained within the
8 wrongfully converted bank accounts.
9 WHEREFORE, Cross-Complainants prays:
10 1. A declaration of rights regarding the Cross-Complainants' assets;

11 2. A judgment quieting Cross-Complainants' fee simple title to the real Property and

12 that Cross-Defendants have no right, title, or interest in or to the real Property,

13 3.' For attorney's fees and costs incurred;

14 4.1 That all monies in question be awarded to Cross-Complainants; and,

15 5. All other relief the court deems proper.

16
17 DATED: November • T* , 2007 LANAK & HANNA, P.C.

18
19
CHRTSTOPHERM.
20 Attorneys for Defendant
NEW HOPE FAMILY WORSHIP CENTER,
21 a California non-profit corporation

22
23
24
25
26
27
28
Lanak ft Banna. F . c ,
100 N. -1MBtill Av6
fllltl-.O 130 -7-
a a n ta Ana, CA
<mos ssis
714/55(1-041(1 CROSS-COMPLAINT
 FROM :l_ANAK AND HANNA FAX NO. =7145500734 ^'-v. 07 2006 11:48PM P10

PROOF OF SERVICE
2 STATE OF CALIFORNIA )
) ss.
3 COUNTY OF ORANGE )
4 I am employed in the County of Orange, State of California. I am over the age of 18 years and not
a party to this action, My business address is 400 North Tustin Avenue, Suite 120, Santa Ana,
5 California 92705-3815.
6 On November <7 _, 2007,1 served the foregoing document described as CROSS-COMPLAINT
OF KENNETH M. PETERS, JR. AND ALAN R. SPITALNICK FOR t. DECLARATION
7 RELIEF; 2. ACTION TO QUIET TITLE; 3. TRESPASS TO LAND; 4. CONVERSION on the
persons listed below as follows:
8
Julian B. Bellenghi Attorneys for Plaintiffs and Cross-
9 Collins & Bellenghi LLP Defendant
1201 Dove Street, Suite 570
10 Newport Beach CA 92660
11
X (By U.S. Mai!) I enclosed the documents) listed above in a sealed envelope or package
12 addressed to the persons listed above and placed the envelope for collection and mailing,
following ordinary business practices of Lanak & Hanna, P.C. I am readily familiar with the
13 firm's practice for collecting and processing correspondence for mailing. On the same day
that correspondence is placed For collection and mailing, it is deposited in the ordinary course
14 of business with the United States Postal Service, in a scaled envelope with postage fully
prepaid,
15
(By Express/Overnight Mail Service) T enclosed the documents in an envelope or package
16 provided by an overnight delivery carrier and addressed to the persons listed above. 1 placed
the envelope or package for collection and overnight delivery at an office or a regularly
17 utilized drop box of the overnight delivery carrier.

18 (By Facsimile Transmission) Based on an agreement of the parties to accept service by fax
transmission, 1 faxed the documents to the persons at the fax numbers listed above. No error
19 was.reported by the fax machine I used. A copy of the record of the Fax transmission, which
I printed out, is attached.
20
1 declare under penalty of perjury under the laws of the State of CalifornijUhat the above is true and
21 correct, and that this Proof of Service was executed on November / , 2007, at Santa Ana,
California.
22
23
Wtu-Mtfasfr.—^
Yvonne Patterson
24
25
26
27
28
Imnak 6 Haan», P,c.
40U M. TUB t i l l Ave
S u i t e Liu
Sttntti A I M , CA
9 2 7 0 5 3S15
7 1 * / S 5 0 041B