The evidence/CXF-S-C88657046877

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Charles Watts declaration — pre-removal notice and opposition to voluntary dismissal

Original sourceFiled sworn declaration, not a court finding or complete set of referenced exhibits.
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claimallegation

Filed 1 April 2024 as SDCA17-3 in3:24-cv-00196-RBM-VET, this declaration supports Cyberlux and Schmidt’s opposition to voluntary dismissal.

Filed 1 April 2024 as SDCA17-3 in3:24-cv-00196-RBM-VET, this declaration supports Cyberlux and Schmidt’s opposition to voluntary dismissal. Watts identifies himself as Cyberlux special counsel, licensed in North Carolina, and signs under penalty of perjury at Charlotte on1April. The cover’s15April hearing date is not the execution date.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 DECLARATION OF CHARLES WATTS 3:24-cv-00196-RBM-VET 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 tlocko@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 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 Case 3:24-cv-00196-RBM-VET Document 17-3 Filed 04/01/24 PageID.464 Page 1 of 3
claimallegation

Watts states Cyberlux was served12January2024 and Schmidt23January2024, and that the company retained Thompson Coburn, Allen Chesson and Hah

Watts states Cyberlux was served12January2024 and Schmidt23January2024, and that the company retained Thompson Coburn, Allen Chesson and Hahn Loeser in response to threatened litigation and the complaint. He claims personal knowledge; the declaration does not attach service returns or retainer records.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 DECLARATION OF CHARLES WATTS 3:24-cv-00196-RBM-VET 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, Case 3:24-cv-00196-RBM-VET Document 17-3 Filed 04/01/24 PageID.465 Page 2 of 3
claimallegation

He states that before30January2024 removal neither defendant had been served with or informed of substitutions replacing Ozols and Shulz. Th

He states that before30January2024 removal neither defendant had been served with or informed of substitutions replacing Ozols and Shulz. This establishes his declared notice position, not the absence of substitutions in the court file or their legal effect.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 DECLARATION OF CHARLES WATTS 3:24-cv-00196-RBM-VET 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, Case 3:24-cv-00196-RBM-VET Document 17-3 Filed 04/01/24 PageID.465 Page 2 of 3
claimallegation

Watts says neither defendant was told before removal that Atlantic Wave, Welter or counsel intended dismissal, that no dismissal was served,

Watts says neither defendant was told before removal that Atlantic Wave, Welter or counsel intended dismissal, that no dismissal was served, and that he personally was not told the filing was erroneous, unintended or unauthorised. The last assertion concerns communications to him; it does not prove the filing was authorised or what opposing counsel privately intended.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 DECLARATION OF CHARLES WATTS 3:24-cv-00196-RBM-VET 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, Case 3:24-cv-00196-RBM-VET Document 17-3 Filed 04/01/24 PageID.465 Page 2 of 3
claimallegation

The caption includes claims and counterclaims involving Atlantic Wave, Secure Community and Strikepoint. No dismissal order or disposition o

The caption includes claims and counterclaims involving Atlantic Wave, Secure Community and Strikepoint. No dismissal order or disposition of the counterclaims appears in these three pages; the declaration’s position is not the outcome of the motion.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 DECLARATION OF CHARLES WATTS 3:24-cv-00196-RBM-VET 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 tlocko@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 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 Case 3:24-cv-00196-RBM-VET Document 17-3 Filed 04/01/24 PageID.464 Page 1 of 3
entityobservation

Charles Watts

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 DECLARATION OF CHARLES WATTS 3:24-cv-00196-RBM-VET 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, Case 3:24-cv-00196-RBM-VET Document 17-3 Filed 04/01/24 PageID.465 Page 2 of 3
inferenceinference

The declaration supplies an opposing account of notice and reliance before removal. Its strongest scope is what Watts and the defendants say

The declaration supplies an opposing account of notice and reliance before removal. Its strongest scope is what Watts and the defendants say they received, not opposing counsel’s authority or private intent.

otherattribution

Complete supplied 3-page source reviewed at SHA-256 c88657046877a6f165a7fc17cb1e7a67efe3f53756633439420b4973d416a0ef. Source assertions, ori

Complete supplied 3-page source reviewed at SHA-256 c88657046877a6f165a7fc17cb1e7a67efe3f53756633439420b4973d416a0ef. Source assertions, original visual features, filing/communication context and identified missing attachments are retained. Full 3-page reading of version_23349205f0454d2ab4f9b1a5a77bff29, SHA256 c88657046877a6f165a7fc17cb1e7a67efe3f53756633439420b4973d416a0ef; source bytes and original extraction preserved.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 DECLARATION OF CHARLES WATTS 3:24-cv-00196-RBM-VET 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 tlocko@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 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 Case 3:24-cv-00196-RBM-VET Document 17-3 Filed 04/01/24 PageID.464 Page 1 of 3
questionquestion

What dated service returns, substitution filings and communications confirm or rebut the asserted absence of pre-removal notice?

questionquestion

What entered order resolved dismissal and preserved or disposed of the counterclaims?

distillateobservation

CONNECT

Reviewed relationships

The canvas follows the database: source to DISTIL record, DISTIL record to knowledge object, then reviewed relationship. Position alone means nothing.

Keithly says he contacted defendants’ counsel February 15, 2024 to stipulate to dismissal of a complaint he calls incorrectly filed by prior counsel in case 00196. He says defendants refused, prompting a Rule 41 motion; he reports that motion and plaintiffs’ anti-SLAPP motion against counterclaims were fully briefed and awaiting decisions. His prediction of disposing of counterclaims is not a ruling.qualifiesWatts says neither defendant was told before removal that Atlantic Wave, Welter or counsel intended dismissal, that no dismissal was served, and that he personally was not told the filing was erroneous, unintended or unauthorised. The last assertion concerns communications to him; it does not prove the filing was authorised or what opposing counsel privately intended.

Keithly alleges February 15 notice, whereas Watts denies pre-January 30 notice; these dated propositions can coexist and do not establish a direct contradiction.

50%
Confidence 75%Link weight 50%
Watts states Cyberlux was served12January2024 and Schmidt23January2024, and that the company retained Thompson Coburn, Allen Chesson and Hahn Loeser in response to threatened litigation and the complaint. He claims personal knowledge; the declaration does not attach service returns or retainer records.supportsThe declaration supplies an opposing account of notice and reliance before removal. Its strongest scope is what Watts and the defendants say they received, not opposing counsel’s authority or private intent.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
The caption includes claims and counterclaims involving Atlantic Wave, Secure Community and Strikepoint. No dismissal order or disposition of the counterclaims appears in these three pages; the declaration’s position is not the outcome of the motion.supportsWhat entered order resolved dismissal and preserved or disposed of the counterclaims?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
He states that before30January2024 removal neither defendant had been served with or informed of substitutions replacing Ozols and Shulz. This establishes his declared notice position, not the absence of substitutions in the court file or their legal effect.supportsDoes Watts’s lack of notice prove the original complaint was authorised?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Watts says neither defendant was told before removal that Atlantic Wave, Welter or counsel intended dismissal, that no dismissal was served, and that he personally was not told the filing was erroneous, unintended or unauthorised. The last assertion concerns communications to him; it does not prove the filing was authorised or what opposing counsel privately intended.supportsDoes Watts’s lack of notice prove the original complaint was authorised?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Watts says neither defendant was told before removal that Atlantic Wave, Welter or counsel intended dismissal, that no dismissal was served, and that he personally was not told the filing was erroneous, unintended or unauthorised. The last assertion concerns communications to him; it does not prove the filing was authorised or what opposing counsel privately intended.supportsThe declaration supplies an opposing account of notice and reliance before removal. Its strongest scope is what Watts and the defendants say they received, not opposing counsel’s authority or private intent.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Filed 1 April 2024 as SDCA17-3 in3:24-cv-00196-RBM-VET, this declaration supports Cyberlux and Schmidt’s opposition to voluntary dismissal. Watts identifies himself as Cyberlux special counsel, licensed in North Carolina, and signs under penalty of perjury at Charlotte on1April. The cover’s15April hearing date is not the execution date.supportsWhat entered order resolved dismissal and preserved or disposed of the counterclaims?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Watts states Cyberlux was served12January2024 and Schmidt23January2024, and that the company retained Thompson Coburn, Allen Chesson and Hahn Loeser in response to threatened litigation and the complaint. He claims personal knowledge; the declaration does not attach service returns or retainer records.supportsWhat dated service returns, substitution filings and communications confirm or rebut the asserted absence of pre-removal notice?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
He states that before30January2024 removal neither defendant had been served with or informed of substitutions replacing Ozols and Shulz. This establishes his declared notice position, not the absence of substitutions in the court file or their legal effect.supportsWhat dated service returns, substitution filings and communications confirm or rebut the asserted absence of pre-removal notice?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Watts says neither defendant was told before removal that Atlantic Wave, Welter or counsel intended dismissal, that no dismissal was served, and that he personally was not told the filing was erroneous, unintended or unauthorised. The last assertion concerns communications to him; it does not prove the filing was authorised or what opposing counsel privately intended.supportsWhat dated service returns, substitution filings and communications confirm or rebut the asserted absence of pre-removal notice?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
He states that before30January2024 removal neither defendant had been served with or informed of substitutions replacing Ozols and Shulz. This establishes his declared notice position, not the absence of substitutions in the court file or their legal effect.supportsThe declaration supplies an opposing account of notice and reliance before removal. Its strongest scope is what Watts and the defendants say they received, not opposing counsel’s authority or private intent.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%

WEIGH

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