08-26-16 Hogan Objection To Daulerio Exemption Claim Req For Hearing (With Exhibits) OCR

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Filing # 45763406 E-Filed 08/26/2016 04:59:47 PM

IN THE CIRCUIT COURT OF THE SIXTH JUDICIAL CIRCUIT


IN AND FOR PINELLAS COUNTY, FLORIDA
TERRY GENE BOLLEA professionally
known as HULK HOGAN,
Case No.:

12012447-CI-011

Plaintiff,
vs.
HEATHER CLEM; GAWKER MEDIA,
LLC aka GAWKER MEDIA, et al.,
Defendants.
___________________________________________ /

BOLLEAS OBJECTION TO DAULERIOS CLAIM OF


EXEMPTION AND REQUEST FOR HEARING
Plaintiff, Terry Bollea known professionally as Hulk Hogan (Mr. Bollea), by counsel
and pursuant to Florida Statute 77.041, objects to the Claim of Exemption filed by Defendant,
A.J. Daulerio (Mr. Daulerio), on August 23, 2016, and requests a hearing to decide the validity
of Mr. Daulerios claim of exemption. In support, Mr. Bollea states as follows:
Introduction
Mr. Daulerio is a $115.1 million judgment debtor who maliciously posted secretly
recorded, explicit video of Mr. Bollea naked and having sex on the Internet without his consent.
Five months after the verdict, Mr. Daulerios debt remains unpaid. Now, he is trying to falsely
portray himself as a destitute journalist who is being victimized by routine efforts to collect the
money he owes. In reality, while refusing to pay a dime toward the judgment, Mr. Daulerio has
been squandering substantial amounts of money traveling and pampering himself on a lavish
full-time vacation in Florida. He is not entitled to exempt what little money and property he has
not yet dissipated.

{BC000998I1:!}

* * * ELECTRON ICALLY FILED 08/26/2016 04:59:46 PM. KEN BURKE, CLERK OF THE CIRCUIT COURT. PINELLAS COUNTY***

Factual Background
For years, Mr. Daulerio was well-compensated by Gawker for abusing the power of the
Internet and First Amendment to bully and humiliate people by posting private images of them
online against their will. His targets ranged from an NFL quarterback to a girl being raped in a
bathroom; which earned him the title of the Worldwide Leader in Dong Shots.
In October of 2012, Mr. Daulerio picked a fight with someone who found the strength to
endure four years of contentious litigation against Gawkers team of lawyers, and the public
humiliation that went along with it. Mr. Bollea fought back, and in March 2016 brought Mr.
Daulerio before a jury to stand accountable for his actions.12 That jury told Mr. Daulerio and
others like him that he did not have the right to publish revenge pom under the guise of news to
attract shameless voyeurs and deviants to Gawker.com.

That jury also decided that Mr.

Daulerio had a very heavy price to pay for trying to pass off explicit images from a
nonconsensual sex tape as journalism.
Apparently, Mr. Daulerio thinks he should be able to just walk away from this debt. He
also refuses to recognize that what he did was wrong. Instead, he continues to exhibit a defiant
arrogance and lack of appreciation for the consequences of his choices. Immediately following
his August 17, 2016 deposition in aid of execution, Mr. Daulerio lashed out in the press,
referring to the court-ordered discovery as ludicrous, and claimed that he was being held
hostage because $1,500.00 in his bank account was frozen.

(See, Exhibit A)

Shortly

thereafter, Mr. Daulerio had his counsel send a flippant letter (which was needlessly attached to

1 Mr. Daulerio continues to raise litigation funding as a red-herring. The verdict and judgment in this
case are based on the facts, not how Mr. Bollea found the financial wherewithal to stand-up against a
multi-national media conglomerate so that he could try to ensure that the First Amendment would never
again be abused by unscrupulous bloggers to generate millions of dollars by needlessly and gratuitously
inflicting shame and humiliation on others by posting private images of them online against their will.

{BC00099811:1}

the Claim of Exemption so that it would be publicly available), in which they mock Mr. Bollea
for trying to collect the money that the jury decided Mr. Daulerio owes.
Mr. Bollea is not to blame for Mr. Daulerios financial situation. Likewise, Mr. Bollea
bears no fault for Nick Dentons decision to cut Mr. Daulerio loose to face the consequences of
the judgment alone; while Mr. Denton secured a $200,000 loan for himself from Gawker before
it filed bankruptcy so that he could retain independent counsel to file for bankruptcy protection.
The fact that Mr. Denton abandoned Mr. Daulerio, and Mr. Daulerios self-inflicted financial
situation, do not excuse him from paying what he can toward the judgment.
Mr. Daulerio is Not Legally Entitled to Florida or New York Exemptions
As it now stands, Mr. Daulerio is not legally domiciled in Florida or New York. In May
2016, Mr. Daulerio decided to leave New York for an extended vacation in Florida.

apparently about to leave Florida for a new job in California.

(See, Ex. A to Claim of

Exemption.)
Given these facts, Mr. Daulerio is not entitled to claim any personal property exemptions
under New York or Florida law. These exemptions are only available to residents domiciled in
those states. See In re. Dixson, 153 B.R. 594, 597 (M. D. Fla. 1993); In re: Jewell, 347 B.R.
120 (W.D. N.Y. 2006).23

2 Despite publicly discussing his current financial condition and some of his assets, Mr. Daulerio
designated his entire August 17, 2016 deposition Confidential. Accordingly, portions of this Objection
have been redacted. Mr. Bollea has filed a Motion to Determine Confidentiality contemporaneously
herewith. Thus, while Mr. Daulerio is publicly taunting Mr. Bollea and crying poor, Mr. Bollea cannot
disclose the specific facts to refute that claim at this time.

BC00099811:1}

Mr. Daulerios Waste of Assets Should be Charged Against Him


Even if Mr. Daulerio could claim statutory exemptions under Florida or New York law,
he is not entitled to exempt the garnished funds in his bank account (nor any of his other
remaining property) because he has already wasted more money and property than such
exemptions (if available) would allow. It is settled law that a debtors exemptions may be
charged with the value of property that he concealed or withheld from his creditors; and that the
concealment of or failure to surrender property is treated as a selection pro tanto by the debtor of
his property exemptions.

In re. Wallace, 191 B.R. 929, 933 (M. D. Fla. 1996). When a debtor

fails to account adequately for property, the court may also charge against the personal property
exemptions allowed under law. Id. Notably, no specific finding of fraudulent or corrupt intent
on the part of the debtor is necessary to charge against the personal property exemptions. Id.

{BC00099811:1}

Notably, much like his indemnity rights, Mr. Daulerio did not disclose any of this personal

property

in his June 9, 2016, Affidavit filed in support of his request to

stay execution.
Mr. Daulerio has concealed, dissipated, failed to surrender and failed to account for a
substantial amount of money and property. The value of this money and property must be
charged against any valid exemptions which Mr. Daulerio could claim; but that value already far
exceeds the limits of any exemptions available under New York and Florida law.
Mr. Daulerio chose to waste his potential exemptions on an extended vacation. He
cannot protect the remaining assets he has not yet dissipated.
WHEREFORE, Mr. Bollea respectfully requests that the Court hold a hearing to
determine the validity of Mr. Daulerios claimed exemptions, deny Mr. Daulerios Claim of
Exemptions, and grant such other relief as the Court deems just and appropriate.
DATED: August 26, 2016.

/s/Kenneth G. Turkel________________________
Kenneth G. Turkel, Esq. - FBN 867233
Shane B. Vogt - FBN 257620
BAJO CUVA COHEN & TURKEL, P.A.
100 North Tampa Street, Suite 1900
Tampa, Florida 33602
Tel: (813) 443-21991Fax: (813) 443-2193
Email: [email protected]
Email: [email protected]
Charles J. Harder, Esq.
PHVNo. 102333
HARDER MIRELL & ABRAMS LLP
132 S. Rodeo Drive, Suite 301
Beverly Hills, CA 90212
Tel: (424) 203-1600
Fax: (424) 203-1601
Email: [email protected]
Counselfor Plaintiff

{BC00099811:1}

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished by
E-Mail via the e-portal system this 26th day of August, 2016 to the following:
Gregg D. Thomas, Esquire
Rachel E. Fugate, Esquire
Thomas & LoCicero PL
601 S. Boulevard
Tampa, Florida 33606
[email protected]
[email protected]
[email protected]
[email protected]
Counselfor Gawker Defendants

Seth D. Berlin, Esquire


Paul J. Safier, Esquire
Alia L. Smith, Esquire
Michael D. Sullivan, Esquire
Levine Sullivan Koch & Schulz, LLP
1899 L. Street, NW, Suite 200
Washington, DC 20036
[email protected]
[email protected]
[email protected]
[email protected]
Pro Hac Vice Counselfor
Gawker Defendants

Steven L. Brannock, Esquire


Celene H. Humphries, Esquire
Brannock & Humphries
1111 West Cass Street, Suite 200
Tampa, FL 33606
[email protected]
[email protected]
[email protected]
Co-Counselfor Gawker Defendants

Michael Berry, Esquire


Levine Sullivan Koch & Schultz, LLP
1760 Market Street, Suite 1001
Philadelphia, PA 19103
[email protected]
Pro Hac Vice Counselfor
Gawker Defendants

David R. Houston, Esquire


Law Office of David R. Houston
432 Court Street
Reno, NV 89501
[email protected]
[email protected]

Stuart C. Markman, Esquire


Kristin A. Norse, Esquire
Kynes, Markman & Felman, P.A.
Post Office Box 3396
Tampa, Florida 33601
smarkman@kmf-law. com
knorse@kmf-law. com
[email protected]
Appellate Co-Counselfor Plaintiff

Allison M. Steele
Rahdert, Steele, Reynolds & Driscoll, P.L.
535 Central Avenue
St. Petersburg, FL 33701
amnestee@,aol.com
[email protected]
[email protected]

Charles D. Tobin
Holland & Knight LLP
800 17th Street N.W., Suite 1100
Washington, D.C. 20006
[email protected]
Attorneys fo r Intervenors, First Look Media,
Inc., WFTS-TVand WPTV-TV, Scripps Media,

{BC00099811:1}

Attorneys for Intervenor Times Publishing


Company

Inc., WFTX-TV, Journal Broadcast Group, Vox


Media, Inc., WFLA-TV, Media General
Operations, Inc., Cable News Network, Inc.,
Buzzfeed and The Associated Press.

Timothy J. Conner
Holland & Knight LLP
50 North Laura Street, Suite 3900
Jacksonville, FL 32202
timothy. conner@hklaw. com
/s/Kenneth G. Turkel
Attorney

{BC000998U:!}

Filing # 45763406 E-Filed 08/26/2016 04:59:47 PM

EXHIBIT A
TO BOLLEAS OBJECTION TO DAULERIOS CLAIM OF
EXEMPTION AND REQUEST FOR HEARING

* * *ELECTRONICALLY FILED 08/26/2016 04:59:46 PM: KEN BURKE, CLERK OF THE CIRCUIT COURT, PINELLAS COUNTY***

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T ech / #H ulkV sG aw k
AUG 18, 2016 @ 08:08 PM

6 5 , 5 0 9 VIEWS

Former Gawker Editor


Lashes Out At Peter
Thiel, Calls Freeze On
His Checking Account
'Ludicrous'
M att Drange,

forbesstaff

I write about technology and money +power in Silicon


Valley. FULL BIO

Former Gawker editor A.J. Daulerio sits in a Florida courtroom earlier


this year during a trial against Terry Bollea, aka Hulk Hogan, over a
story Daulerio wrote that included an excerpt o f a sex tape featuring
Hogan and his friends wife. (Photo by John Pendygraft/Getty Images)

Bv Matt Drange and Ryan Mac

Forbes

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wrote the 2 0 1 2 story that originally included
an excerpt of the Hulk Hogan sex tape he
and his employer were successfully sued
over, lashed out at Peter Thiel on Thursday.
Daulerio questioned the motives of going
after his personal assets to satisfy a portion
of the $ 1 4 0 .1 million judgement in the case.

i\.o .

Its ludicrous that a billionaire like Peter


Thiel is spending his wealth on lawyers to
freeze my $ 1 ,5 0 0 bank account and figure
out the value of my rice cooker and old
furniture, Daulerio told FORBES in a
statement. If Mr. Thiel really believed in the
First Amendment, he would not be funding
lawyers to chase my meager assets and
instead would try to justify the $ 115.1 million
verdict in front of an appeals court. Instead,
hes using his fortune to hold me hostage to
settle a decade-long grudge that has nothing
to do with me or Hulk Hogan.

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As FORBES first revealed in May, Thiel


financed Hogans lawsuit as part of an effort
to bring down the media
company. Daulerios comments are his first
public statements about case since the jury
awarded its verdict in March.

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Home Finnntific ieiher


Recommended by Forbes
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The judgement, awarded to Hogan (real
name: Terry Bollea) earlier this year after a
Florida jury found that Gawker invaded the
former wrestlers privacy, triggered a series
of events that culminated today in the
approval of Gawker Medias sale to media
conglomerate Univision. Daulerio is jointly
liable, along with Gawkers parent company
and Denton, for $ 115.1 million of the
judgement. Daulerio, however, is the only
defendant in the case who hasnt filed for
bankruptcy protection. Hogans lawyers are
now going after Daulerio, even though he
has told the court he is essentially broke.

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In a signed affidavit submitted to the court

Forbes

^ount, all of
s attorneys.

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Daulerios net worth is negative, according to


his affidavit. Daulerio was deposed for hours
on Wednesday afternoon about his assets.
Thiel declined to comment through a
spokesman. In an op-ed published by the
New York Times in advance of Gawkers
auction earlier this week, Thiel said that
cruelty and recklessness were intrinsic parts
of Gawkers business model. He condemned
the website for blurring the line between an
individuals right to privacy and the public
interest. For my part, I am proud to have
contributed financial support to his case. I
will support him until his final victory
Gawker said it intends to appeal and I
would gladly support someone else in the
same position.
Denton announced earlier on Thursday that
Gawkers flagship website, Gawker.com,
will cease to exist after next week. Denton,
who is expected to leave once the sale he
negotiated with Univision is completed next
month, told staff that he was unable to find
a single media company or investor willing
also to take on Gawker.com. The campaign
being mounted against its editorial ethos
and former writers has made it too risky.
Lawyers for Hogan declined to comment, but
are expected to continue pursuing Daulerio
in the coming weeks, starting with a review
of his bank statements going back four years.
Daulerio is living in a short-term apartment
in Florida, and hasnt worked since shutting
down the startup he founded after leaving

Forbes
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when he will face possible sanctions from the
court for allegedly misrepresenting the value
of his limited shares in Gawker Media.
Before the company filed for bankruptcy in
June, Daulerio and Denton pledged all of
their shares as collateral while Gawkers
lawyers appeal the verdict in the case.
Daulerio doesnt have his own attorney, and
Gawkers request to cover the cost of his
continued legal defense is currently pending
with a federal judge in New York (Hogans
lawyers objected to the request, arguing that
it would constitute a conflict of interest).
Gregg Leslie, the legal defense director for
the Reporters Committee for Freedom of the
Press, said the case is exceptional. Leslies
organization represents news outlets around
the country, and is unaware of any case
where an individual journalist has had to pay
the lions share of a jury verdict. Its hard to
say whether its a particularly vindictive
streak on [Hogan's] part, or is the just the
normal way they do business, where you win
a verdict and go after anything you can,
Leslie said. It certainly starts to look like an
act of harassment if you arent ever going to
recover anything meaningful from the
person and you are dragging them through
it.

Forbes
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email him at [email protected]. Follow
Matt on Twitter at @MattDrange or email
him at [email protected].
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