Evidence Record
Declaration of Charles Watts in Support of Defendants Cyberlux Corporation and Mark D. Schmidt’s Opposition to Plaintiff’s Motion to Voluntarily Dismiss Complaint
1. I am the special counsel for Defendant Cyberlux Corporation ("Cyberlux"), of which Mark D. Schmidt ("Schmidt") is the Chief Executive Officer. I am an attorney licensed to practice and in good standing in...
DISTIL analysis
DISTIL Run
Profile
Standard
Version
1
Doc Type
Legal Declaration
Total Nodes
22
Node Legend
Entity (ENT)
Event (EVT)
Claim (CLM)
Anchor (ANC)
Omission (OMI)
Tension (TEN)
Tell (TEL)
Inference (INF)
Hypothesis (HYP)
Stage 1
Index
Orientation · No nodes
Document Classification
Legal Declaration Defense Counsel Federal Civil Litigation - Southern District of California 2024-01-12 to 2024-04-01
attorney_declarationservice_disputeremoval_timelinesubstitution_issue
Analytical Frame
Procedural Opposition to Voluntary Dismissal
Analytical Summary
This is a declaration by Charles Watts, special counsel for defendant Cyberlux Corporation, filed in support of opposition to plaintiff's motion to voluntarily dismiss. The declaration establishes a procedural timeline demonstrating that defendants were served with the complaint in January 2024, retained multiple law firms in response, and removed the case to federal court on January 30, 2024. Critically, Watts attests that defendants were never informed of substitutions of counsel replacing previous attorneys, were never notified of any intent to dismiss prior to removal, and were never told the complaint filing was erroneous, unintended, or unauthorized before removal. The declaration creates a factual record suggesting plaintiffs' dismissal attempt may be untimely or improper under federal procedural rules.
Key Points
- Cyberlux served with complaint January 12, 2024; Schmidt served January 23, 2024
- Defendants retained three law firms in response to litigation threats
- Case removed to federal court January 30, 2024
- Defendants never informed of substitutions of counsel for Ozols and Shulz
- Defendants never notified of dismissal intent prior to removal
- No communication that complaint filing was erroneous or unauthorized before removal
Stage 2
Core — Entities, Events, Claims
16 nodes
ENT-001
Entity
Charles Watts
Special counsel for Defendant Cyberlux Corporation, attorney licensed in North Carolina
Page 2 — I, Charles Watts, declare: I am the special counsel for Defendant Cyberlux Corporation ("Cyberlux"), of which Mark D. Schmidt ("Schmidt") is the Chief Executive Officer. I am an attorney licensed to practice and in good standing in North Carolina and am located in North Carolina.
ENT-002
Entity
Cyberlux Corporation
Nevada corporation, defendant in civil litigation, represented by multiple law firms
Page 1 — CYBERLUX CORPORATION, a Nevada Corporation; MARK D. SCHMIDT, an individual; and DOES 1 to 50, Inclusive, Defendants
ENT-003
Entity
Mark D. Schmidt
Individual defendant, Chief Executive Officer of Cyberlux Corporation
Page 2 — I am the special counsel for Defendant Cyberlux Corporation ("Cyberlux"), of which Mark D. Schmidt ("Schmidt") is the Chief Executive Officer.
ENT-004
Entity
Atlantic Wave Holdings, LLC
Virginia limited liability company, plaintiff and counterclaim defendant
Page 1 — ATLANTIC WAVE HOLDINGS, LLC, a Virginia limited liability company, SECURE COMMUNITY, LLC, a Virginia limited Liability company, and STRIKEPOINT CONSULTING, LLC, a Virginia limited liability company, Plaintiffs
ENT-005
Entity
Thompson Coburn LLP
Law firm retained by Cyberlux and Schmidt for representation
Page 2 — In response to threats of litigation and the filing of the Complaint in this action, Cyberlux retained the law firms of Thompson Coburn LLP, Allen Chesson, and Hahn Loeser & Parks, LLP to represent its interests and those of Mr. Schmidt.
ENT-006
Entity
Allen Chesson
Law firm retained by Cyberlux and Schmidt for representation
Page 2 — In response to threats of litigation and the filing of the Complaint in this action, Cyberlux retained the law firms of Thompson Coburn LLP, Allen Chesson, and Hahn Loeser & Parks, LLP to represent its interests and those of Mr. Schmidt.
ENT-007
Entity
Hahn Loeser & Parks, LLP
Law firm retained by Cyberlux and Schmidt for representation
Page 2 — In response to threats of litigation and the filing of the Complaint in this action, Cyberlux retained the law firms of Thompson Coburn LLP, Allen Chesson, and Hahn Loeser & Parks, LLP to represent its interests and those of Mr. Schmidt.
EVT-001
Event
Service on Cyberlux - January 12, 2024
Cyberlux Corporation was served with Plaintiff's Complaint on January 12, 2024
Page 2 — On January 12, 2024, Cyberlux was served with Plaintiff's Complaint.
EVT-002
Event
Service on Schmidt - January 23, 2024
Mark D. Schmidt was served with Plaintiff's Complaint on January 23, 2024
Page 2 — On January 23, 2024, Mr. Schmidt was served with Plaintiff's Complaint.
EVT-003
Event
Removal to Federal Court - January 30, 2024
Cyberlux and Schmidt removed the case to federal court on January 30, 2024
Page 2 — Prior to Cyberlux and Mr. Schmidt's removal of this case to federal court on January 30, 2024
EVT-004
Event
Declaration Execution - April 1, 2024
Charles Watts executed declaration under penalty of perjury on April 1, 2024 in Charlotte, North Carolina
Page 3 — I declare under penalty of perjury that the foregoing is true and correct. Executed this 1st day of April, 2024, at Charlotte, North Carolina.
EVT-005
Event
Retention of Multiple Law Firms
In response to litigation threats and complaint filing, Cyberlux retained three law firms to represent its interests and those of Schmidt
Page 2 — In response to threats of litigation and the filing of the Complaint in this action, Cyberlux retained the law firms of Thompson Coburn LLP, Allen Chesson, and Hahn Loeser & Parks, LLP to represent its interests and those of Mr. Schmidt.
CLM-001
Claim
No Notice of Substitution of Counsel
Defendants were never served with nor informed of substitutions of counsel replacing Mr. Ozols and Ms. Shulz prior to removal
Page 2 — Prior to Cyberlux and Mr. Schmidt's removal of this case to federal court on January 30, 2024, neither Cyberlux nor Schmidt were served with nor informed that Substitutions of Counsel had been filed replacing Mr. Ozols and Ms. Shulz.
CLM-002
Claim
No Notice of Dismissal Intent
Defendants were never informed by Atlantic Wave, Mr. Welter, or their attorneys of any intent to dismiss the complaint prior to January 30, 2024
Page 2 — Cyberlux and Schmidt were also never informed by Atlantic Wave, Mr. Welter, or their attorneys at any time that they intended to dismiss their Complaint prior to January 30, 2024.
CLM-003
Claim
No Service of Dismissal
Defendants were never served with a dismissal of the complaint
Page 2 — Cyberlux and Schmidt were never served with a dismissal of the Complaint.
CLM-004
Claim
No Communication of Error
Defense counsel was never told the complaint filing was erroneous, unintended, or unauthorized prior to removal
Page 2, 3 — I was also never told, in any manner, by Atlantic Wave, Mr. Welter, or their attorneys, that the filing of the Complaint was in any way erroneous, unintended, or unauthorized prior to the removal of this case to federal court.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
3 nodes
TEN-001
Tension
Timing of Dismissal Motion vs. Removal
The declaration establishes a procedural tension: defendants incurred substantial legal costs by retaining three law firms and removing the case to federal court, yet plaintiffs now seek voluntary dismissal without having notified defendants of any intent to dismiss before removal
Page 2 — In response to threats of litigation and the filing of the Complaint in this action, Cyberlux retained the law firms of Thompson Coburn LLP, Allen Chesson, and Hahn Loeser & Parks, LLP to represent its interests and those of Mr. Schmidt. Prior to Cyberlux and Mr. Schmidt's removal of this case to federal court on January 30, 2024, neither Cyberlux nor Schmidt were served with nor informed that Substitutions of Counsel had been filed replacing Mr. Ozols and Ms. Shulz. Cyberlux and Schmidt were also never informed by Atlantic Wave, Mr. Welter, or their attorneys at any time that they intended to dismiss their Complaint prior to January 30, 2024.
QST-001
Question
Identity of Mr. Welter
Who is Mr. Welter referenced in the declaration? The document does not identify his role or relationship to the parties
Page 2 — Cyberlux and Schmidt were also never informed by Atlantic Wave, Mr. Welter, or their attorneys at any time that they intended to dismiss their Complaint prior to January 30, 2024.
QST-002
Question
Identity and Role of Ozols and Shulz
Who are Mr. Ozols and Ms. Shulz? The declaration references substitutions of counsel replacing them but provides no context about their prior role
Page 2 — Prior to Cyberlux and Mr. Schmidt's removal of this case to federal court on January 30, 2024, neither Cyberlux nor Schmidt were served with nor informed that Substitutions of Counsel had been filed replacing Mr. Ozols and Ms. Shulz.
Stage 4
Interpretive — Inferences, Omissions, Patterns
3 nodes
INF-001
Inference
Procedural Strategy Opposition
The declaration's emphasis on lack of notice, non-service of dismissal, and timing relative to removal suggests defendants are building a procedural argument that voluntary dismissal is no longer available without their consent under federal rules
Page 2 — Cyberlux and Schmidt were also never informed by Atlantic Wave, Mr. Welter, or their attorneys at any time that they intended to dismiss their Complaint prior to January 30, 2024. Cyberlux and Schmidt were never served with a dismissal of the Complaint.
INF-002
Inference
Cost and Prejudice Argument
By documenting retention of three separate law firms in response to litigation threats, the declaration implies defendants have incurred substantial costs, supporting an argument of prejudice if dismissal is granted
Page 2 — In response to threats of litigation and the filing of the Complaint in this action, Cyberlux retained the law firms of Thompson Coburn LLP, Allen Chesson, and Hahn Loeser & Parks, LLP to represent its interests and those of Mr. Schmidt.
OMI-001
Omission
No Explanation for Dismissal Motion
The declaration does not address or acknowledge any reasons plaintiffs may have provided for seeking voluntary dismissal, focusing exclusively on procedural defects in notice
Page 2, 3 — I was also never told, in any manner, by Atlantic Wave, Mr. Welter, or their attorneys, that the filing of the Complaint was in any way erroneous, unintended, or unauthorized prior to the removal of this case to federal court.
Extracted text
3 pages · 3883 charactersFiling Header
HAHN LOESER & PARKS LLP Gabe P. Wright (SBN 208647) Trevor S. Locko (SBN 323313) One America Plaza 600 W. Broadway, Suite 1500 San Diego, CA 92101 Telephone: 619.810.4300 Facsimile: 619.810.4301 gwright@hahnlaw.com flocko@hahnlaw.com
THOMPSON COBURN LLP JEFFREY N. BROWN, CSB 105520 jbrown@thompsoncoburn.com 10100 Santa Monica Blvd., Suite 500 Los Angeles, California 90067 Tel: 310.282.2500 / Fax: 310.282.2501
EDWARD W. GRAY, JR. (SBN 80966) egray@thompsoncoburn.com 1909 K Street, NW Suite 600 Washington, D.C. 20006 Tel: 202.585.6967 / Fax: 202.585.6969
ALLEN CHESSON DOUGLAS GRIMES (pro hac vice application to be filed) dgrimes@allenchesson.com 505 N. Church Street Charlotte, NC 28202 Tel: 704.755.6012
Attorneys for Defendants CYBERLUX CORPORATION and MARK D. SCHMIDT
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA
ATLANTIC WAVE HOLDINGS, LLC, a Virginia limited liability company, SECURE COMMUNITY, LLC, a Virginia limited Liability company, and STRIKEPOINT CONSULTING, LLC, a Virginia limited liability company,
Plaintiffs,
V.
CYBERLUX CORPORATION, a Nevada Corporation; MARK D. SCHMIDT, an individual; and DOES 1 to 50, Inclusive,
Defendants
Case No. 3:24-cv-00196-RBM-VET Honorable Ruth Bermudez Montenegro
Declaration
DECLARATION OF CHARLES WATTS IN SUPPORT OF DEFENDANTS CYBERLUX CORPORATION AND MARK D. SCHMIDT'S OPPOSITION TO PLAINTIFF'S MOTION TO VOLUNTARILY DISMISS COMPLAINT
Date: April 15, 2024 Time: 8:30
CYBERLUX CORPORATION; and MARK D. SCHMIDT,
Counterclaimants,
V.
ATLANTIC WAVE HOLDINGS, LLC; SECURE COMMUNITY, LLC, and STRIKEPOINT CONSULTING, LLC,
Counterclaim Defendants.
I, Charles Watts, declare:
1.
I am the special counsel for Defendant Cyberlux Corporation ("Cyberlux"), of which Mark D. Schmidt ("Schmidt") is the Chief Executive Officer. I am an attorney licensed to practice and in good standing in North Carolina and am located in North Carolina. If called as a witness, I would competently testify as to the following facts based on my personal knowledge.
2.
On January 12, 2024, Cyberlux was served with Plaintiff's Complaint.
3.
On January 23, 2024, Mr. Schmidt was served with Plaintiff's Complaint.
4.
In response to threats of litigation and the filing of the Complaint in this action, Cyberlux retained the law firms of Thompson Coburn LLP, Allen Chesson, and Hahn Loeser & Parks, LLP to represent its interests and those of Mr. Schmidt.
5.
Prior to Cyberlux and Mr. Schmidt's removal of this case to federal court on January 30, 2024, neither Cyberlux nor Schmidt were served with nor informed that Substitutions of Counsel had been filed replacing Mr. Ozols and Ms. Shulz.
6.
Cyberlux and Schmidt were also never informed by Atlantic Wave, Mr. Welter, or their attorneys at any time that they intended to dismiss their Complaint prior to January 30, 2024. Cyberlux and Schmidt were never served with a dismissal of the Complaint. I was also never told, in any manner, by Atlantic Wave, Mr. Welter, or their attorneys, that the filing of the Complaint was in any way erroneous,
unintended, or unauthorized prior to the removal of this case to federal court. I declare under penalty of perjury that the foregoing is true and correct. Executed this 1st day of April, 2024, at Charlotte, North Carolina.
Charles Watts
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