NORTH CAROLINA CUMBERLAND COUNTY

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IN THE GENERAL COURT OF JUSTICE SUPERIOR COURT DIVISION File No.: lO-CVS-9863

ISABEAU DAKOTA INC., and J. K. IDEMA, Plaintiffs, ) JOHN HAGLER,

v.
WILLIAM

ORDER

Defendant.

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This matter having come before the undersigned Superior Court Judge at the August 21, 2011 session of the Cumberland County Superior Court on Plaintiffs' Motion to Show Cause and for Additional Supplemental Relief and on Plaintiffs' Motion to Compel and for Sanctions, the Court enters the following Order: Findings of Fact and Conclusions of Law on Plaintiffs' Motion to Show Cause and for Additional Supplemental Relief: The Court hereby adopts and incorporates by reference all findings of fact contained in the Order executed on May 15,2011 and entered on May 19, 2011 in this action and makes the additional findings of fact: 1. The May 15, 2011 order referenced above was entered after Defendant William

John Hagler ("Hagler") recorded a fraudulent document in the Cumberland County Registry purporting to convey title in real property at 450 Robeson Street, Fayetteville, North Carolina to himself in violation of previous Court Orders. 2011, at Book 8616 Page 434. That document was recorded on March 30, and was signed by the same

It showed no consideration,

individual, Penny Alesi, who signed a similar fraudulent deed on October 27, 2010 which was voided by Judge Robert F. Floyd, Jr. on February 2,2011. 2. On April 8, 2011, the matter was brought before the Court on an emergency ex

parte basis, and a temporary restraining order was granted. The matter was heard on April 11, 2011. At the conclusion of that hearing, the Court announced its ruling striking the March 30, 2011 deed ab initio, quieting title to the property, and finding defendant Hagler in contempt of court for recording the fraudulent document. The ruling was subsequently formerly

memorialized in the May 19, 2011 Order. 3. The May 19, 2011 Order continued the Court's April 8, 2011 injunction

prohibiting Defendant Hagler from recording any further document purporting to transfer 450 Robeson Street, Fayetteville, NC 28301 or any interest in any real property owned by or previously owned by Isabeau Dakota, Inc. The Order also directed the Cumberland County

Register of Deeds not to record any further documents submitted by Defendant William John Hagler, his agents, or his associates affecting the title of Isabeau-Dakota, Robeson Street, Fayetteville, North Carolina property. 4. On April 18, 2011, prior to the May 19,2011 order but after the Court's ruling Inc. in the 450

was announced in open Court, Defendant Hagler executed a fraudulent Deed of Trust on the 450 Robeson Street property to Ms. Penny Alesi as trustee in favor of Mr. Michael L. Sanford of Santa Barbara, California. The fraudulent Deed of Trust is recorded in the Cumberland

County Registry in Book 8636 Page 164, and lists the addresses for both Defendant Hagler and Ms. Alesi at Defendant Hagler's Post Office Box 1163, Fayetteville, NC 28301. 5. Additionally, on this same date, April 18, 2011, Defendant Hagler executed and

recorded a second fraudulent Deed of Trust on the 450 Robeson Street property to Ms. Alesi in

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favor of Mr. Michael L. Sanford of Santa Barbara, California.

The second fraudulent Deed of

Trust is recorded in the Cumberland County Registry in Book 8636 Page 169. It also lists the address for both Defendant Hagler and Ms. Alesi as Post Office Box 1163, Fayetteville, NC 28301. 6. Defendant's actions as set forth above are in knowing violation of the Court's

previous Orders. 7. Defendant has made no attempts to cure his violation of the Court's previous Inc.

Orders quieting title to 450 Robeson Street in PlaintiffIsabeau-Dakota, 8. All previous

orders entered in this case, including the Orders entered on

February 2, 2011 and May 19,2011, were not appealed and are the law ofthis case. 9. The February 2,2011 order granting summary judgment on the issue of title in

450 Robeson Street to Plaintiffs remains in full force and effect. 10. On their face, the filing of the deeds of trust on April 18,2011 were recorded in

violation of the Court's previous Orders granting possession and title in Isabeau Dakota, Inc.'s 450 Robeson Street building and land to Plaintiffs. 11. Defendant Hagler's recording of the April 18, 2011 deed of trust in the

Cumberland County Registry and other actions by Defendant Hagler interfering with Plaintiff Isabeau-Dakota, Inc.'s ownership and possession of 450 Robeson Street were contemptuous of

the Court's previous Orders, in that the Court's Orders referenced above remain in force, the purpose of the Orders may still be served by compliance with them, Defendant's

noncompliance was willful and criminal in nature.ipurpose, and motive, and Defendant was and is able to comply with the Orders.

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Findings of Fact and Conclusions of Law on Plaintiffs' Motion to Compel and For Sanctions 1. On January 12, 2011, Plaintiff Isabeau-Dakota, Inc. served its First Set of

Interrogatories upon Defendant William Hagler. 2. On January 14,2011, Plaintiff lK. Idema served his First Set ofInterrogatories

upon Defendant William Hagler. 3. After Defendant Hagler's attorney was allowed to withdraw, both of these sets of

Interrogatories were mailed again to Defendant Hagler. 4. On April 25, 2011, Defendant Hagler, pro se, filed a copy of his response to The Interrogatory Responses were not

Plaintiff J.K. Idema's First Set of Interrogatories.

notarized. Defendant Hagler has not responded to Plaintiff Isabeau-Dakota, Inc.'s First Set of Interrogatories in any way whatsoever. 5. As set forth in Plaintiffs' motion, Defendant Hagler's response to Plaintiff lK.

Idema's First Set of Interrogatories contains numerous evasive answers, knowingly false statements, and refusals to answer appropriate questions calculated to elicit relevant information and admissible evidence. 6. Defendant Hagler filed his interrogatory responses with the Court and therefore

subjected them and himself to the requirements of Rule 11 of the North Carolina Rules of Civil Procedure. 7. Defendant Hagler's interrogatory responses, and particularly Defendant Hagler's

responses to Interrogatories No. 20 and 42, are not well grounded in fact and therefore are in violation of N.C. R. Civ. P. 11. 8. Defendant Hagler's failure to respond to Plaintiff Isabeau-Dakota, Inc.'s January

12, 2011 First Set of Interrogatories, as well as Defendant Hagler's false, evasive, and

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incomplete answers to Plaintiff 1.K. Idema's First Set of Interrogatories are sanctionable under Rule 37 of the North Carolina Rules of Civil Procedure. 9. Pursuant to N.C. R. Civ. P. 37, just cause exists to sanction Defendant Hagler by

dismissing with prejudice his remaining counterclaim and award monetary sanctions, including attorneys' fees. IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that:

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Plaintiffs' Motion for Additional Supplemental Relief is granted. As previously Plaintiffs shall retain lawful possession of 450 Robeson Street,

ordered by the Court,

Fayetteville, North Carolina, with the right to lease part or all of the same.

The purported

Deeds of Trust filed with the Cumberland County Register of Deeds on April 18, 2011 at Book 8636 Page 164, (Instrument No. 14436) and Book 8636 Page 169. (Instrument No. 14437) are declared void ab initio. Title remains quieted in Isabeau Dakota, Inc. to the real estate located at 450 Robeson Street, Fayetteville, North Carolina with the following legal description: A certain tract or parcel of land containing 0.27 acres lying and being in Cross Creek Township, Fayetteville, North Carolina, bounded on the North and West by the City of Fayetteville (see Deed Book 529, Page 10), on the East by Robeson Street, On the South by Patterson Bonded Warehouse (see Deed Book 1177, Page 321) and more particularly described as follows: BEGINNING at a P,K. nail at the intersection of the southern margin of Italy Street with the northemline of the tract of this isa part (see Deed Book2774, Page 315, Cumberland County Registry), and runs thence along the new RJW which is a sight line for Robeson Street South 24 degrees 42 minutes 10 seconds East 6.Ufeetto ail existingRJW disk set in the new Western RlW for Robeson Street, thence with said Western margin of Robeson Street South 22 degrees 41 minutes 03 seconds West 129.44 feet to an existing spike set in the southern line of the tract of which this is a part; thence with said existing spike set in the southern line of this tract of which this is a part; thence with said line North 63 degrees 07 minutes 25 seconds West 94.66 feet to an existing three-quarter inch iron pipe; thence with the Western line of said tract North 29 degrees 26 minutes East 145 feet to an existing three-quarter inch iron pipe; thence with the Northern line South 53 degrees 56 minutes East 74.90 feet to the beginning ..

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Containing .27 acres and being part of a tract as recorded in Deed Book 2774 Page 315, Cumberland County Re gistry. Being the same lot or parcel of land conveyed by deed dated June 26, 1980 from Quincy J. Scarborough, Jr. and wife, Betty T. Scarborough to William J. Likert and duly recorded in Book 2774, Page 315 Cumberland County Registry. 2. A copy of this Order shall be recorded with the Cumberland County Register of

Deeds, who shall index it in the Cumberland County Registry in a manner which references it to the document filed on October 27,2010 at Book 8509, Pages 322-324, the document filed on March 30, 2011 at Book 8616 Page 434, and the documents filed on April 18, 2011 at Book 8636 Page 164 and Book 8636 Page 169. 3. Defendant Hagler and any of his agents or associates, included but not limited to

Ms. Penny Alesi, are hereby enjoined from recording any further documents in the Cumberland County Registry purporting to convey 450 Robeson Street, North Carolina or any interest of any real estate property owned or previously owned by Isabeau-Dakota, Inc. The Cumberland County Register of Deeds is directed not to record any further documents submitted by

Defendant William John Hagler, his agents, or his associates or co-conspirators, such as Penny Alesi, affecting the title ofIsabeau-Dakota, 4. Inc. in 450 Robeson Street, North Carolina.

Plaintiffs' Motion to Compel and For Sanctions is granted. Defendant Hagler is

directed to answer, fully, truthfully, and completely all Interrogatories propounded to him in this action without objection or reservation within 30 days of the service of this Order, and 37-42 of

including but not limited to Interrogatories Nos. 2-9, 14-16, 19-21,24-26,30-32,

Plaintiff 1.K. Idema's First Set of Interrogatories to Defendant Hagler. To the extent Defendant Hagler may have preserved an objection concerning any of these specific Interrogatories, such objection is overruled.

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5.

Pursuant to N.C. Civ. P. 37, Defendant Hagler's Counterclaim for Breach of

Contract is dismissed with prejudice. 6. All previous orders and injunctions entered in this case shall remain in full force

and effect and Defendant Hagler is directed to abide by them. 7. A copy of this Order shall be submitted to the Cumberland County Register of

Deeds, who shall take all reasonable steps to refuse any documents submitted for recordation in violation of this Order, and to all appropriate North Carolina law enforcement agencies who shall enforce this Order and all Orders previously entered in this action. 8. Defendant Hagler is ordered to pay attorneys fees to Plaintiffs, c/o Stark Law

Group, PLLC in the amount of $ 700.00 within 30 days of service of this order upon him in accordance with N.C.R. Civ. P. 5. SO ORDERED.

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This the_":\ day of August, 2011

SUPERIOR COURT JUDGE PRESIDING

.CLERKOF SUP~OcauNTt
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