SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANGELES

Civil Division
Central District, Stanley Mosk Courthouse, Department 26

BC716374 August 28, 2019

PLAYBOY ENTERPRISES INC VS GLOBAL BLOCKCHAIN 8:30 AM
TECHNOLOGIES CO

Judge: Honorable Elaine Lu CSR: None

Judicial Assistant: E. Lopez ERM: None
Courtroom Assistant: B. Ly Deputy Sheriff: None

APPEARANCES:
For Plaintiff(s): Susan Kay Leader; Brett Michael Manisco
For Defendant(s): Cyrus Naim
Other Appearance Notes: Stephen Kernan, third party
SEE NUNC PRO TUNC MINUTE ORDER OF 08/28/2019 4:00 PM

NATURE OF PROCEEDINGS: Hearing on Motion to Quash Service of Summons; Order to

Show Cause Re: status of Global Blockchain Technologies Corporation’s representation ; Order
to Show Cause Re: why Global Blockchain Technologies Corporation’s answer should not be
stricken, why cross-complaint should not be dismissed, and why a default and default judgment
should not be entered ; Order to Show Cause Re: why sanctions, including dismissal should not
be imposed; Order to Show Cause Re: why sanctions, including dismissal, should not be
imposed

The Court's Tentative Order is provided to all sides via the Court's website.

Matter is called for hearing and argued.

After Oral argument the Court rules as indicated below and as more fully reflected in the Order
which is signed and filed this date and incorporated herein by reference.

The Motion to Quash Service of Summons filed by shidan gouran, shidan gouran, Shidan
Gouran on 04/18/2019 is Denied.

Plaintiff’s motion to seal is granted. Defendant Shidan Gouran’s motion to quash for lack of
personal jurisdiction is denied. Defendant Shidan Gouran is to file a responsive pleading within
10 days.

The moving party is ordered to provide notice of this order and file proof of service of such
within three days.

The Court and counsel having conferred re: above entitled Orders to Show Cause rules as
follows:

Minute Order Page 1 of 3

 SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANGELES
Civil Division
Central District, Stanley Mosk Courthouse, Department 26

BC716374 August 28, 2019

PLAYBOY ENTERPRISES INC VS GLOBAL BLOCKCHAIN 8:30 AM
TECHNOLOGIES CO

Judge: Honorable Elaine Lu CSR: None

Judicial Assistant: E. Lopez ERM: None
Courtroom Assistant: B. Ly Deputy Sheriff: None

Upon granting counsel Raines Feldman LLP’s motion to be relieved as counsel for
Defendant/Cross-Complainant Global Blockchain Technologies Corporation on June 26, 2019,
the Court ordered Global Blockchain Technologies Corporation ("GBT") to timely retain new
counsel and to file a substitution of counsel within 21 days of service of the signed order. GBT
failed to do so.
SEE NUNC PRO TUNC MINUTE ORDER OF 08/28/2019 4:00 PM

As noted in the June 26, 2019 order, a corporation, unlike a natural person, cannot represent
itself before courts of record in propria persona, nor can it represent itself through a corporate
officer, director or other employee who is not an attorney. (CLD Const., Inc. v. City of San
Ramon (2004) 120 Cal.App.4th 1141, 1145.) “[A Corporation] must be represented by licensed
counsel in proceedings before courts of record. (Id.)

GBT failed to comply with the Court's June 26, 2019 order requiring GBT to appear on July 30,
2019 with its new counsel and to show cause why Global Blockchain Technologies
Corporation’s answer should not be stricken, why Global Blockchain Technologies
Corporation’s cross-complaint should not be dismissed, and why a default and default judgment
should not be entered against Global Blockchain Technologies Corporation on Plaintiff’s First
Amended Complaint. Raines Feldman gave notice of the Court’s June 26, 2019 orders and filed
proof of service of such on June 27, 2019. GBT failed to file any substitution of counsel. GBT
also failed to appear as ordered on July 30, 2019.

On July 30, 2019, the Court further continued the OSC regarding the status of GBT's
representation to today's date, August 28, 2019 at 8:30 am in Department 26. GBT has again
failed to comply with any aspect of the Court's last order (issued July 30, 2019). GBT has failed
to file any substitution of counsel. GBT failed to appear at today's hearing. GBT has failed to
show cause why its answer should not be stricken, and why its cross-complaint should not be
dismissed in light of its failure to timely retain new counsel and in light of GBT’s failure to
comply with the Court’s July 30, 2019 order. The Court warned that GBT's failure to appear on
August 28, 2019 at 8:30 am in Department 26 would be deemed consent to: striking of GBT's
answer, dismissal of GBT's cross-complaint, and entry of default and default judgment against
GBT on Plaintiff’s First Amended Complaint.

Thus, GBT's answer to the First Amended Complaint is stricken. GBT's cross-complaint is
dismissed without prejudice.

The Answer filed by Global Blockchain Technologies Corporation, a Canadian corporation on

04/12/2019 is ordered stricken.
Minute Order Page 2 of 3
 SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANGELES
Civil Division
Central District, Stanley Mosk Courthouse, Department 26

BC716374 August 28, 2019

PLAYBOY ENTERPRISES INC VS GLOBAL BLOCKCHAIN 8:30 AM
TECHNOLOGIES CO

Judge: Honorable Elaine Lu CSR: None

Judicial Assistant: E. Lopez ERM: None
Courtroom Assistant: B. Ly Deputy Sheriff: None

The Court orders Playboy Enterprises, Inc., a Delaware corporation, Stuart Duncan, Tokken
MSB Inc. and Vice Industry Token, Inc. in Cross-Complaint filed by Global Blockchain
Technologies Corporation, a Canadian corporation on 04/12/2019 dismissed without prejudice.

As the Court previously noted in the July 30, 2019 order, the First Amended Complaint does not
SEE NUNC PRO TUNC MINUTE ORDER OF 08/28/2019 4:00 PM

identify the amount of damages that Plaintiff seeks to recover. Therefore, no default judgment
may be entered against Global Blockchain based on the current operative complaint. (CCP §
585(b) [“The plaintiff thereafter may apply to the court for the relief demanded in the complaint.
The court shall hear the evidence offered by the plaintiff, and shall render judgment in the
plaintiff’s favor for that relief, not exceeding the amount stated in the complaint.”]) If Plaintiff
will seek a default judgment against Global Blockchain, Plaintiff must file and serve an amended
complaint before entry of default against Global Blockchain.

Court Clerk is ordered to give notice.

Certificate of Mailing is attached.

Minute Order Page 3 of 3