INDEX NO.

811246/2014

FILED: ERIE COUNTY CLERK 12/11/2014 01:08 PM

NYSCEF DOC. NO. 17

RECEIVED NYSCEF: 12/11/2014

STATEOFNEWYORK
SUPREME COURT : COUNTY OF ERIE

PHILLIP A. DELMONT, as Administrator

of the Estate of WILLIAM A. DELMONT,
Plaintiff,
Index No.: 811246/2014

V.

SOUTH PARK AVE. PROPERTIES, LLC,

G. STEVEN PIGEON,
JOHN F. O'DONNELL, JR., and
SADEQ S. AHMED,
Defendants.

STATE OF NEW YORK

COUNTY OF ERIE

)
)ss.:
)

G. STEVEN PIGEON, being duly sworn, deposes and says:

1.

I am a defendant in the within action, and I make this Affidavit in

opposition to Plaintiff's Motion for Summary Judgment in Lieu of Complaint.

2.

Plaintiff's Affidavits in support of his motion attempts to make the case

that the transaction underlying this dispute was an everyday, cut-and-dry deal. Such is
simply not the case. This transaction was the result of a long friendship among the
Defendants Pigeon and O'Donnell and the decedent, William A. Delmont ("Delmont").
The value of the stock was arrived upon based on the assurances of the decedent as to the
state of his businesses, and the defendants agreed to said value based on their friendship
with and trust in the decedent and upon Delmont assurances as to said value.
3.

Throughout the course of the year 2010, I, along with my co-defendant

Jack O'Donnell, were in many talks with Delmont leading up to the purchase of both his

newspapers and a building owned by a friend of his, Beverly Mazur ("Mazur"). These
two transactions were to be simultaneous and were contingent on each other.
4.

Delmont consistently maintained to the Defendants herein that we were

purchasing a viable and profitable business. Delmont also published the distribution of
his papers on his adve1iising rate cards, on which he based the price of advertising in his
papers. These rate cards, which were provided to, and relied upon by South Park, listed
the combined circulation as 13,500. See attached Exhibit A.
5.

Based on our long friendship with and implicit trust in Delmont, the

Defendants herein agreed to purchase both his stock and Mazur's building, and agreed to
his proposed purchase price of$150,000.00 for the stock in the Front Page group and
$250,000 for the building.
6.

On October 22,2010, South Park Ave. Prope1iies, LLC, an LLC of which

I am a member, simultaneously executed a Secured Promissory Note and Stock Purchase

Agreement accomplishing the above mentioned stock transaction. A separate real estate
closing accomplished the purchase of the building.
7.

As Delmont's former employees' continued employ was a further

condition of the execution of the Note and Stock Purchase Agreement, this information
was not as quickly conveyed to the Defendants, but some time operating The Front Page
News and The South Buffalo News revealed a vastly different picture than that painted
by Delmont.
8.

Investigation of the rapid loss of money at The Front Page News and The

South Buffalo News showed that the circulation was not 13,500, as it had consistently
been adve1iised by Delmont, but was instead around 6,000. This drastic discrepancy

cannot be attributed to a math error. The business described to Defendants ODonnell

and Pigeon, as well as advertised to the public, was fundamentally different than that
which we purchased.
9.

If it were not for Delmonts repeated representations and public

advertising that The Front Page News and the South Buffalo News were profitable and
well circulated entities, representations upon which I relied, South Park would not have
purchased his stock in The Front Page Group.
10.

As set forth in the accompanying memorandum of law, Plaintiff has failed

to meet its burden. Accordingly, its motion should be denied and this action should be
dismissed. At a minimum, this action should be converted into a normal proceeding and
South Park should be given an opportunity to assert counterclaims and defenses to
Plaintiffs cause of action
WHEREFORE, I respectfully request that Plaintiffs Motion for Summary
Judgment in Lieu of Complaint be denied in its entirety.

___________________________
G. Steven Pigeon

EXHIBIT A

RATE CARD
FRONT l?AIG!

SOUTH BUFFALO

Founded in '1959

NEWS

Dlsttibut~ct L~ ti;t~

Founded In 1919

Cit"j of lackawcmna,
Village of Blasdell, Woodlawn,
Town of West Seneca,
Ha.rnburg ~;orthern f.reu)
Zips: 1441$, 14219, 14<24. 14075

Distributed in th'
south Areas of Buffalo
Primarily Zip Codes 14210.
14220, 14204, 14205

... -----.-.... -.----..----- ..---.---

--------- l'A~ie SPC:t!r!Cf.\i!Ol'!S "

iab!ofct 5 Column x iG Inches
- eo Total Inches Per Page

IJIS!PlLAY ADV9Rii$HiH:i

$6. '15 PER COLUMN !filCH

(Mininum Size 3 Column lnchesl
COI.OR

eOWMI\l Wlil'i'H
- '1 Column

can for Information

. 1-7/8 rnches = 11 Picas

-2 Columns
37/8 Inches "" 25 V2 Picas
-3 Columns
6 Inches = 36 Picas
- 4 Columns

SE~if{;1:1 DIRI!:t:iOI\!Y
1 COL X 2" - $13.50

13 WEEK CO!\JTRACT ADS

1 col }< 'l" $?.oo Per week
P!JSUSI-iciJ
~V~RY

II

WIH)N!:Si'Jf.W

8 l!iCIIES "" 48 Picas

Advertising and Editorial

Copy Deadline: Friday, 4:00 p.rn.

I
I

10

~Ji:WS i:V~OPS

1/8 PAGE .ll.D

Increase customer traffic by offerin1

1/4 PAGE AD
112 PAGE AD

the Front Page or Qoutli Buffalo News

for sale in your establishment.

- 10 Col.umn Inches~ $ 67.50

20 Co_lumn Inches: $11.\l!'::l.OO

- 40 ccilumnlnches:
*27o.oo
. .
.
FULL PAGE AD - 80 Column Inches: ~5.!10.00

HIO!ii.IC!H"i' YOUR !:!U!lilN!:lSS

Tell readers of the Front Page and
souti1 Buffalo News what your business as to offer.
In conjunction with your advertlsing, aS I( at10Ut an
article highlighting your business.

P.A~D

s co1umris ~

Jncrtes = 60 Picas

(Other Sizes Aval!a!Jie - C<11/ for Details!

All Rates Include Publication of

Your Advertisement In BOTH EDITIONS

CIRCUlATUlN

'fti!e l'l~ONi PAGI: & SOL!Tl-( BL!FrALO NEWS

Are Distributed tv Periodical M~II and Sold on News Stands

(Ccmbined Circulation B,500l

1

FRONT PACE GROU-P; INC.

lasiGlwanna~

NY 14218 Cl16) 823-8:222 Fax (i'16l 939-3924

AdvP-rtising Email Add:ess: prepressfpg@wtw.twcbc,com
. .
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2703 Soutt1 Pari( Avenue