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JEFFREY W. LUDWIG
9826 South Bucknell Way
May 31, 2001
CERTIFIED MAIL RETURN RECEIPT REQUESTED
Ms. Karen Dudnikov
Re: Rocky Mountain Construction Lending Corp.
Dear Ms. Dudnikov:
I represent Rocky Mountain Lending Corp. ("Rocky Mountain"). My client has informed me that you have a web site, www.NorthStar-sucks.com, that sets forth false, derogatory and defamatory statements concerning Rocky Mountain. Demand is hereby made that you immediately cease making any false and defamatory statements regarding Rocky Mountain on the web site referenced above, on any other web site or any other medium. In the event that you fail to do so, my client will have no other alternative but to file an action against you for injunctive relief and/or damages. I urge you to give this matter your serious attention as these defamatory statements relate to Rocky Mountain's business and are defamatory per se.
It is apparent that you are operating under a fundamental misunderstanding of the relationship between you and Mr. Meadors, and Rocky Mountain. Rocky Mountain was merely the construction lender on the construction contract that you had with NorthStar Construction & Design, LLC. Ordinarily, the relationship between a lender and its borrower is a creditor-debtor relationship. The Construction Loan Agreement provided that Rocky Mountain may disburse the net proceeds of the loan, only in proportion of its inspector's report of progress. So far as I can determine from the correspondence that I have reviewed, you have not disputed that the work referenced in the draw requests was actually performed. Furthermore, each draw request that you and Ms. Dudnikov executed specifically stated that you warranted, "that all of the labor and materials identified above has been furnished to and incorporated into the construction of improvements at the above named property address."" Accordingly, you approved, authorized and ratified the amounts set forth in the draw requests. If you had concerns about cost overruns with respect to work represented by draw requests, you shouldn't have signed the draw requests.
I note that you have included on your web site certain information about defamation obtained from Greg Abbott, Attorney at Law. It is unfortunate that you have not heeded his suggestions. Mr. Abbott advises to report facts, not conclusions. You do not report facts. You state false and defamatory conclusions about Rocky Mountain. Your web site indicates that this defamatory material has been viewed by third parties evidenced by the site counter indicating more than 24,000 hits.
I look forward to your favorable reply, so that any further unpleasantness can be avoided.
If you should have any questions, please do not hesitate to contact me.
Very truly yours,
Jeffrey W. Ludwig