DAVID E. MILLER (CA BARnarcononreviews.net/documents/narconon_lawsuits/Lawsuit... · 2014. 8....

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Complaint for Damages

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DAVID E. MILLER (CA BAR #294-095)

[email protected]

SAEED & LITTLE, LLP 1433 N. Meridian St., Ste 202

Indianapolis, IN 46202

Office: (317) 721-9214

Facsimile: (888) 422-3151

Attorney for Plaintiffs

IN THE UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

SAMANTHA NORD-SHAFER, a Delaware Citizen; & REBECCA KENNEDY, a New York Citizen; Plaintiff, vs. ASSOCIATION OF BETTER LIVING AND EDUCATION INTERNATIONAL, a California Corporation; NARCONON INTERNATIONAL, a California Corporation; NARCONON FREEDOM CENTER d/b/a NARCONON FREEDOM TREATMENT CENTER, a Michigan Corporation; & DOES 1-100; ROE CORPORATIONS I-X, inclusive, Defendants.

Case No.:

REQUEST FOR INJUNCTIVE

RELIEF, COMPLAINT FOR

DAMAGES, AND JURY TRIAL

DEMAND

Count 1: Breach of Contract

Count 2: Negligence

Count 3: Fraud

Count 4: Premise Liability

Count 5: Request for Injunctive

Relief

I. INTRODUCTION

1. Plaintiff Samantha Nord-Shafer (hereinafter “Plaintiff”) and Plaintiff

Rebecca Kennedy (hereinafter “Ms. Kennedy”) (known collectively as

Case 2:14-cv-06438-SVW-E Document 1 Filed 08/15/14 of 33 Page ID #:1

mailto:[email protected]

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“Plaintiffs”) alleges on information and belief against Association of Better Living

and Education International, Narconon International, Narconon Freedom Center

d/b/a Narconon Freedom Treatment Center, and Does 1-100, ROE Corporations I-

X, inclusive, the following:

II. PARTIES

2. Plaintiff Samantha Nord-Shafer is currently a resident of Dover,

Delaware and is twenty four years old. Ms. Nord-Shafer attended the Albion,

Michigan facility to seek treatment for her drug addiction.

3. Plaintiff Rebecca Kennedy is the mother of Samantha Nord-Shafer and is

a resident of Windsor, NY. Ms. Kennedy discovered the Narconon facility in

Albion, Michigan and paid for Ms. Nord-Shafer to attend there based on

information she was provided by Defendants.

4. Defendant Narconon International (hereinafter “NI”) is a California

corporation with its principal place of business is Los Angeles, California.

Narconon International may be served with process through its registered agent,

Sherman D. Lenske, 6400 Canoga Avenue, Suite 315, Woodland Hills, CA 91367.

5. NI is the parent/licensor of Narconon Freedom Center d/b/a Narconon

Freedom Treatment Center (hereinafter “NFC”). NI exercises control over the

time, manner, and method in which the operations and administration of NFC’s

facility are run.


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6. NI was doing business in the State of California by and through its agent

and subsidiary/licensee NFC. NI may be served with process through its registered

agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA

91367.

7. NFC and NI are subsidiaries of the Association for Better Living and

Education (hereinafter “ABLE”). ABLE oversees the drug rehabilitation,

education, and criminal justice activities of the Church of Scientology including,

but not limited to, NFC and NI.

8. Defendant ABLE is a corporation registered in the State of California

with its headquarters in Los Angeles, California.

9. ABLE controls the time, manner, and method of NI’s and NFC’s

businesses by actively managing their daily operations, including conducting

inspections of Narconon centers and creating, licensing, and approving their

marketing materials.

10. ABLE transacts business in the State of California by and through its

agents, NI and NFC. ABLE may be served with process through its registered

agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA

91367.

11. Defendant Narconon Freedom Center d/b/a Narconon Freedom

Treatment Center, is, and at all times has relating to Plaintiffs’ injuries was, a


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corporation incorporated under the laws of, and with its principal place of business

in, the State of Michigan. Defendant has been at all relevant times transacting

business in Albion, Calhoun County, Michigan. Narconon Freedom Center may be

served with process through its registered agent, Alan Kellman, 645 Griswold,

Suite 1370, Detroit, MI 48226.

12. At this time, Plaintiffs are unaware of the true names and capacities,

whether they are solely individual, corporate, agents, horizontal associations,

contracted medical professionals, or otherwise, Defendant DOES 1-100, inclusive,

and therefore, sues these Defendants by a fictitious name. Plaintiff will seek leave

of the Court to amend this Complaint when the identities of any Defendants are

made known.

III. JURISDICTION AND VENUE

13. This Court has subject matter jurisdiction as it relates to the parties

pursuant to 28 U.S.C. §1332(a). The amount in controversy exceeds $75,000.00.

14. Venue is proper in this Court pursuant to 28 U.S.C. §1391(a) because

there is diversity between the parties as the Plaintiff resides in Delaware, Ms.

Kennedy resides in New York, Defendants ABLE and NI reside in California, and

the final Defendant resides in Michigan. The Supreme Court recently issued the

decision in Diamler AG v. Bauman, 134 S.Ct. 746, 2014, stating that a corporation

is subject to general personal jurisdiction only where it is “at home.” The majority


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of Defendants reside in Central District of California; this Court therefore has the

jurisdictional authority over this matter.

15. Furthermore, Defendants NI and ABLE have filed a 12(b)(2) motion in a

similar case currently being heard in Nevada asserting their desire to avail

themselves of the jurisdiction of the California District Courts. (See Exhibit 1,

Defendant’s 12(b) Motion filed in District Court of Nevada, Cause No.: 2:14-cv-

00629-JCM-NJK (hereinafter “12(b) Motion”)).

IV. FACTUAL ALLEGATIONS

16. On January 3rd

, 2013, Plaintiff was on her way to the Narconon Freedom

Center in Albion Michigan. Plaintiff’s parents, Ms. Kennedy and Plaintiff’s Father,

made the arrangements for her to meet one of Narconon’s independent drivers in

Ohio. The NFC and the Narconon Program were discovered by Ms. Kennedy and

her husband as a way to treat Plaintiff’s addictions. Plaintiff was not given much

detail about the Narconon Program or the facility she would be attending prior to

leaving home. All of the information she was provided came from a recruiter for

Narconon named “David”. At this time Plaintiffs, are unaware of what David’s

full name is and anticipate this information becoming known through discovery.

17. David did say that the facility at Albion, Michigan was a very nice rehab

facility, that there would be 24/7 medical staffing, a massage table, a Jacuzzie tub,

plenty of activities for the patients to engage in and an assortment of other benefits


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to choosing Narconon over other drug treatment facilities. David also informed

Ms. Kennedy that it would be a three to six month program depending on

Plaintiff’s progress and the program had a 99% success rate. Ms. Kennedy paid

$19,900.00 to NFC for her daughter to attend their rehabilitation program. This

cost was only for the treatment, it did not include other incidentals like phone

cards, basic hygiene supplies, and other assorted needs.

18. The information provided to Plaintiffs through David and the websites

associated with Narconon indicated a high rate of success with the NI program in

the range of 70-80% of those that completed the program. (See Exhibit 2,

Narconon: 40 Years of Evidence of Recovery (hereinafter “40 Year Study”)). The

information provided through the NI website and the information provided by the

David did not indicate any relationship with Scientology, and never stated that

techniques used were based on the work of L. Ron Hubbard. (See Narconon’s

Website, http://www.narconon.org/about-narconon/faq.html#religious-component,

last visited on 07/21/14. See Exhibit 3, Printed Screen Captures of Narconon’s

Website (hereinafter “Screen Captures”)).

19. NI’s own website states the following “[t]he Narconon program is secular

(non-religious).” (See Exhibit 3, Screen Captures at pg. 3 and pg. 5). Despite this

assertion, NFC, NI, and ABLE set out a program based on the teachings of L. Ron

Hubbard and the Church of Scientology. Patients are unwittingly practicing and


http://www.narconon.org/about-narconon/faq.html#religious-component

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studying Scientology in place of counseling for substance abuse, as set forth in

more detail below. Additionally, Defendants NI and ABLE’s own sworn pleading

provided in the 12(b) Motion, asserts that the Narconon Program is in fact a “faith

based” healing program. (See Exhibit 1, 12(b) Motion at pg. 23, ln. 10-11).

20. When Plaintiff arrived at NFC she was required to turn over all of her

belongings so that they could be searched. After the search of her belongings was

completed she was required to be strip searched by one of the female security staff

members. At any point where Plaintiff or any patient left the facility grounds they

were subjected to a full strip search. This included supervised trips to church on

Sundays, where Plaintiff and other patients were under the constant supervision of

a staff member. Typically these types of searches were conducted by a member of

the same sex and the patient. Plaintiff was made uncomfortable by this practice

once she became aware that the guard conducting the female searches was a

lesbian.

21. After the conclusion of the initial search of the Plaintiff when she arrived

she was required to submit a drug test. Plaintiff tested positive as she had inhaled

two bags of heroin along with Vicodin pain medication prior to her arrival at NFC.

After the searches were completed David required Plaintiff to sign papers for her to

enter NFC, but Plaintiff was still intoxicated from the substances she ingested in


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route to the facility. Plaintiff has no knowledge of what documents she signed or

the contents of those documents at this time.

22. Plaintiff was then transferred to the withdrawal unit at NFC. At which

point she was required to sign additional documents and answer questions. All of

which Plaintiff retains no memory of due to her condition upon arriving at the

facility. Plaintiff remained in the withdrawal unit for ten days, over the course of

which she spent the first four days vomiting in response to her withdrawals.

23. Eventually, a nurse at the facility, but not overseeing the withdrawal unit,

had a staff member of NFC take Plaintiff to a nearby emergency room. Plaintiff

does not know the full name of the nurse, only that her first name was Megan.

Plaintiff was released from the emergency room several hours later; the Hospital

diagnosed her with extreme dehydration and withdrawal symptoms. Plaintiff upon

beginning withdrawal treatment learned that unlike other rehabilitation facilities,

NFC and NI does not administer medication to ease the withdrawal symptoms but

instead uses alternative techniques used only in NI based programs or found

exclusively in the teachings of Scientology.

24. During Plaintiff’s time in the withdrawal unit, she was required to

complete exercises. These exercises required Plaintiff to go on walks where she

was asked to look at things or touch things on the walls and NFC staff members


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expected a certain response, once Plaintiff gave them that response of a

"realization" she would be allowed to go lay back down.

25. While Plaintiff remained in the withdrawal unit, NFC staff constantly

talked about drugs and their addiction problem which made Plaintiff’s cravings for

drugs worse. On the 9th day in the withdrawal unit, Plaintiff had an interview with

a NFC staff member named Sandra. In the interview, Sandra asked Plaintiff how

she was feeling overall and whether anyone promised her something about the

program/facility. Plaintiff answered yes to promises being made by David to both

herself and to Ms. Kennedy. David promised Plaintiff that she could leave at any

time if she wanted to do so.

26. At this point, Plaintiff was sent back into withdrawal unit. Plaintiff was

approached by one of the staff members asking her why she wanted to leave,

pressuring her into staying. Plaintiff explained that she wanted assurance that if she

decided to leave that she would have the freedom to do so. The NFC staff decided

to keep her another night to ensure that she would not try to leave without their

knowledge. The tenth day she was given another interview and the staff

transferred her out of the withdrawal unit to the rehabilitation portion of the NI

program. All communication between the Plaintiff and her family during her time

in the withdrawal unit, including to her son, was denied by the staff of NFC.


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27. Plaintiff transitioned to the rehabilitation portion of the NI Program and

was assigned a room. It was at this time that Plaintiff began to realize that all of

the information she and Ms. Kennedy was provided about the quality of the NFC

facility was completely untrue. In the assigned room there was one big shower

room and two small showers, which were mold covered. The common area where

Plaintiff and other patients were allowed to watch TV and relax had missing

windows which were stuffed with pink insulation and made the room all but

unusable in the winter because of the cold air moving through the openings.

28. The NFC facility as a whole was dilapidated, the sink in Plaintiff’s room

was busted so it was constantly dripping water and like the common area the

window would not shut all the way. So like the common area, during the winter

months cold air would make the room almost unlivable. NFC’s solution to this

issue was to bring in a small space heater instead of addressing the overall issue.

The NFC facility was in such poor disrepair that mice, head lice, and bed bugs

became a serious problem. These problems were never really addressed by NFC

and were a constant issue during Plaintiff’s time at the Albion facility.

29. While Plaintiff was at the NFC facility, the Health Department had to be

called because patients were getting sick from improperly cooked food. (See

Exhibit 7, Health Department Records for NFC (hereinafter “Health Records”)).

The NFC facility kitchen was subsequently shut down for over a week. Over this


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time, NFC bought limited amounts of take out that was not sufficient to feed the

patient population at the facility during this time creating a necessity for patients to

spend money over and beyond what they contracted for to receive proper nutrition.

30. Information provided by NFC and NI informed patients and their families

that there would be around the clock medical staffing at the facility to address any

medical needs that may arise with a patient. NFC’s male doctor was supposed to

be there once a week, usually Thursdays. Plaintiff was only able to see him once

during her six months at NFC. On multiple occasions Plaintiff had scheduled

appointments to meet with him and he simply did not show, and the one time that

Plaintiff did see him, his advice consisted of “keep going through the program.”

NFC did not and does not have adequate on-site medical staff to address the patient

and situational load experienced at their location. Once a week a doctor makes a

round at NFC and during the remaining time there is a single registered nurse that

has an office not associated with the withdrawal portion of the program where

patients are treated.

31. At the same time, the nursing staff at NFC did not appear qualified to be

conducting work as a registered nurse. Many of the nurses were not allowed to

draw blood and were unable to answer the most basic of common health questions

asked by Plaintiff. At most they would try to schedule another appointment with

the doctor or call off site to ask another nurse.


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32. During this time, Plaintiff became aware that most, if not all, of the NFC

staff members or counselors were “graduates” of the NI program. Some of the

staff members had been patients only a few months prior to taking a position as a

counselor. These staff members are now responsible for the care and supervision

of patients with serious substance abuse problems and have little to no educational

qualifications to support such a position.

33. At most, NFC staff members have no other qualification for working

with individuals who have substance abuse problems other than the fact that they

completed the NI program. NFC staff members have no medical training.

34. At various times during Plaintiff’s stay at NFC, it was common

knowledge that staff members were “quarantined off” because they continued to

indulge in their addiction to illegal substances. These counselors had successfully

completed the NFC and NI rehabilitation program and were subsequently cleared

to act as counselors over new patients coming in. Even though, they continue to

discuss with patients in the withdrawal unit and the rehabilitation unit how they

still want to get high or discuss their addiction problem.

35. NFC frequently turned a blind eye to individuals who were able to show

some control while engaging in their addiction so long as they were able to

function in their work capacity. When quarantined off, a counselor would retake a

portion of the NI program and be cleared by a “Core Supervisor” to return to work.


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36. If a Core Supervisor was found to be engaging in the use of illegal

substance they would not be quarantined off in the same manner as the other lower

level counselors. A Core Supervisor would be required to visit the nearest Church

of Scientology and must receive clearance from them before they were allowed to

return to a NI facility. Core Supervisors from NFC were sent to the Church of

Scientology in Battle Creek to receive their clearance to return to work at the

facility.

37. These Core Supervisors, staff members, and counselors were responsible

for the treatments and counseling provided to patients at NFC. Even without staff

members apparent lack of basic training, the materials required for the completion

of the Narconon Program raise serious concerns beyond their application. Instead

of medically recognized substance abuse therapy, patients are directed to adhere to

the NI program of studying eight books written by L. Ron Hubbard. Patients

spend hours most days performing Training Routines contained within the books.

NI and the Church of Scientology refer to the books as “technology” or “study

technology.” To complete the objectives of each book a patient is paired with a

“twin” who must complete the objectives of each book before either can advance.

38. It is because of this use of the books that NFC and NI pays a licensing fee

to the Church of Scientology through ABLE. Each book in the NI program


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contains a 3-page “About the Author” section. This section provides, in pertinent

part:

L. Ron Hubbard’s discoveries make it possible for drug users

to recover fully from their addiction. Narconon drug

education and rehabilitation centers around the world use his

techniques exclusively. For over thirty-five years, Narconon

has been setting the pace in the field of drug rehabilitation,

with (per independent studies) a 70 to 80 percent success rate

in helping people to come off drugs – and stay off them.

L. Ron Hubbard departed his body on 24 January 1986. His

breakthroughs in the field of drugs and their effects have

given the planet its first truly workable and successful

method of drug rehabilitation; and through his efforts,

mankind has been provided with real solutions to the

problems of today’s society. (emphases in original). (See

Exhibit 4, Narconon: Learning Improvement Course, Book 3

at pg. 199-201). (See also, Exhibit 6, The Deposition of

Louis Adolph Casal, M.D. taken on March 21, 2012,

(hereinafter “Deposition of Dr. Casal”) wherein Dr. Casal,

the medical expert hired by Defendant NI and ABLE, states

that he sees no basis to support the success claims made by

Defendants, at pg. 136:21 – 137:9).

39. The books or “technology” use numerous Training Routines (hereinafter

“TR”) as teaching tools. TRs are drills or exercises routinely used in Scientology.

Instead of meeting with a counselor or drug therapy specialist, Plaintiff was


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required to engage in the use of TRs with other individuals present during her

rehabilitation. Plaintiff, like other individuals at NFC, engaged in activities with

no apparent connection to the treatment of substance abuse for hours at a time.

Plaintiff’s own twin was required at one point to punch a wall multiple times,

increasing how hard he hit the wall at the direction of counselors of NFC. The use

of TRs and the books of L. Ron Hubbard are a requirement for a rehabilitation

facility to use the “Narconon” name with the supervision of ABLE and NI. These

books present the teachings of the Church of Scientology as a form of

rehabilitation.

40. NFC and Scientology teach that “misunderstood words” are the root of

all confusion when studying a subject. To that end, NFC and Scientology require

patients to spend hours “clearing” or looking up words, often in Scientology or L.

Ron Hubbard dictionaries. Many of these “misunderstood” words patients must

clear are words invented by, or given special meaning within, Scientology.

Examples of such words include “doingness,” “enturbulate,” “thinkingness,”

“dope-off,” “misemotion,” “divertive,” “reelingness,” “not know,” “randomities,”

“livingness,” “creatingness,” “as-ising,” and “actingness.”

41. NFC staff members use this Scientology-specific language both when

instructing NFC patients, and in ordinary conversation with patients.


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42. L. Ron Hubbard quotes, using this Scientology-specific language, are

displayed prominently around the NFC facility in Albion, Michigan.

43. In addition to the required completion of the eight books, each patient at

NFC is required to undergo the Sauna Program. NI and NFC call this program the

“New Life Detoxification” program. A patient must undergo this program to be

considered to have completed the Narconon Program.

44. NI’s and NFC’s “New Life Detoxification” program is substantially

similar, if not identical, to Scientology’s ritual known as “Purification Rundown,”

or the “Purif.” The Purification Rundown is part of Scientology’s “Bridge to Total

Freedom.” The Bridge to Total Freedom is the path a practicing Scientologist

moves up to attain the state of “Clear.” Attaining the state of Clear is often

regarded as the highest goal for a Scientologist.

45. Under NFC’s sauna program, patients first exercise vigorously before

entering the sauna each day. On entering the sauna, NFC requires each patient to

ingest increasing doses of Niacin and a “vitamin bomb.” NFC increases patients’

dosages of Niacin often exceeding 5,000 mg/day – well beyond the recommended

daily allowance.

46. If a patient refuses to ingest the Niacin or other vitamins, the patient faces

discipline, which may include having to spend additional days in the sauna.


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47. NFC requires patients to spend six hours per day for five weeks in a

sauna at temperatures between 160 and 180 degrees Fahrenheit. Plaintiff spent on

or about sixty-four days straight in the sauna program. Every morning Plaintiff

was required to take doses of Niacin and run for about 15-20 minutes to "activate"

the Niacin. Immediately after her run, Plaintiff had to change into her bathing suit

and sit in the sauna for at least four hours.

48. It was during this time that Plaintiff began to show an adverse reaction to

the sauna and Niacin treatments. At first, Plaintiff was started at 100mg of Niacin

a day and was increased quickly to over 1,600mg by the time Plaintiff completed

the sauna program. If Plaintiff would start to react to the treatment by turning red

or rashy, a staff member would force her to remain in the sauna until the reaction

stopped. Plaintiff experienced severe dehydration, headaches, and persistent

nausea in addition to the skin irritation. The Niacin made her feel ill during her

times in the sauna and her general health declined while she was undergoing this

portion of the NI program. Plaintiff continued to have irritation, redness, and

rashes for over six months after leaving NFC. She had no prior history of this type

of reaction before entering NFC for treatment.

49. Patients were given the option to have a small amount of water and

vegetables during their time in the sauna. It was not uncommon for Plaintiff to

find mold or other issues with vegetables that she was offered during this time.


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50. At various times during Plaintiff’s duration in the sauna program it

became apparent that sewage was backing up through the drains in the floor. This

problem was caused by someone using a shower in the women’s bathroom, where

the increase in water entering the drainage system forced sewage to backflow into

the sauna room. (See Exhibit 7, Health Records). This issue again directly relates

to the maintenance and quality of care shown by NFC for their facility and directly

contradicts claims made through NI’s website. (See Exhibit 3, Screen Captures,

pg. 9)

51. At no point during the sauna treatments Plaintiff completed was there

properly trained medical personnel to oversee the health of the patients. There is

only a “sauna supervisor” who sits outside the sauna while the patients are inside.

The sauna supervisor does not have any medical or specialized training to deal

with potential issues that could arise from health complications brought on by the

sauna program, but serves as a policing force for the patients to ensure their

compliance with the program. This again is contradictory to statements made

through NI’s website which states “program is carefully supervised.” (Id.)

52. NFC represented to Plaintiff and Ms. Kennedy that the treatments they

provided were medically safe and has been scientifically-proven as effective. This

assertion is directly countered by Defendants NI and ABLE’s own medical expert

testimony. (See Exhibit 6, Deposition of Dr. Casal). NFC’s rationale for the sauna


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program is that residue of many different types of drugs remain in the body’s fatty

tissue long after use. The drug residue is released from the fatty tissue from time-

to-time into the bloodstream causing the individual to crave the drug, and,

ultimately, relapse. (See Exhibit 3, Screen Captures, pg. 7). NI, ABLE, and

Scientology assert that the sauna program flushes these residual drug toxins out of

the addict’s system thereby reducing the cravings the residue causes.

53. NI’s and NFC’s claims about the benefits of its sauna program, i.e.,

Scientology’s Purification Rundown, are false and do not withstand scientific

scrutiny. Contrary to NI’s and NFC’s claims, there is no scientific evidence that its

sauna program flushes residual drug toxins out of a patient’s fatty tissue. NFC, NI,

and ABLE are all aware that there is no basis for these claims since the Deposition

of Dr. Casal was taken and yet they continue to assert these statements as fact.

(See Exhibit 6, Deposition of Dr. Casal). Nor is there any scientific evidence for

their premise underlying the sauna program: “That residual drug toxins stored in

fatty tissue leak into the bloodstream and cause drug cravings.”

54. Not only does NI’s and NFC’s sauna program fail to live up to NI’s

claims about its benefits, the sauna program is dangerous. By having patients

ingest extreme doses of Niacin and other vitamins while sitting in extreme

temperatures for hours, the sauna program unnecessarily exposes patients to

serious health risks including severe dehydration.


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55. NFC operates under the direction and instruction of Defendants NI and

ABLE, Defendant NI publishes directives called, “Opening a Successful Narconon

Center” and “Running an Effective Narconon Center.” (See Exhibit 5 (hereinafter

“Manuals”). NI and ABLE control the curriculum at NFC. Defendants NI and

ABLE have authority to hire, fire, and make human resource decisions on behalf of

NFC.

56. NI and ABLE dictate which books are sold in the bookstores of the

individual Narconon Facilities as well as controlling which pictures of L. Ron

Hubbard are displayed and in the manner it is done. NI and ABLE exercise a great

deal of control over the finances of Defendant NFC as well, requiring regular

reports and accountings and requiring regular royalty payments.

57. Toward the end of Plaintiff’s time at NFC, as she was preparing to

graduate in July of 2013, Plaintiff was suspended from the program. Plaintiff was

suspended because she had been dating a staff member of NFC and even though

they were aware of the relationship they chose not to act until her graduation.

Plaintiff’s parents had to purchase a last minute ticket and she was immediately

taken to the airport. She was only allowed a carryon bag and was required to leave

the rest of her possessions at NFC. Plaintiff was forced to drive back to Albion,

Michigan from Delaware to recover the rest of her possession at NFC.


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58. Plaintiff relapsed in September 2013, only months after being forced out

of NFC. Plaintiff’s family discovered the relapse and directly interceded in her

recovery at her home. Plaintiff sought out local therapy and support to address her

addictions and has since been clean because of it.

V. FIRST CAUSE OF ACTION: BREACH OF CONTRACT

59. Plaintiff incorporates paragraphs (1) through (59) by reference, as if fully

set forth herein, each and every allegation set forth in the preceding paragraphs and

further allege as follows:

60. Plaintiffs and Defendants were bound by a Contract whereby Defendants

agreed, in exchange for consideration, to provide secular, residential drug, and

alcohol treatment to Plaintiff.

61. Defendants breached this contract by, inter alia: (i) failing to provide

services constituting drug and alcohol treatment; (ii) providing Scientology in lieu

of drug and alcohol treatment; and (iii) not adequately addressing known issues of

addiction with the oversight of medical personnel.

62. Defendant NFC, through the direction imposed by Defendants NI and

ABLE, operate a facility which instead of providing trained and medically certified

clinicians and counselors cycles through former patients and other untrained

individuals to address the significant needs of their patients. Through assertions

made on Defendant’s NI website, prospective patients are made to believe that


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facilities associated with Narconon are run by board certified counselors and

medical staff. (See Exhibit 3, Screen Captures at pg. 15). These assertions are

blatantly untrue.

63. Secondly, Defendant NFC institutes policies and procedures delivered

and enforced by Defendant NI. Defendant NI receives their instruction regarding

the application and instruction of those policies and procedures from Defendant

ABLE. Those policies and procedures instruct patients to carry out activities

included in the TRs, the New Life Detoxification, and the application of L. Ron

Hubbard’s vocabulary of “misunderstood words.” The Narconon Program is a

mirrored reflection of the teachings put forth by the Church of Scientology. This

understanding is further asserted in Defendants Motion to Dismiss, which states

“[f]urthermore, as previously stated, faith-based healing is exempt from the

licensing requirements of N.R.S. Chapter 630.” (See Exhibit 1, 12(b) Motion at pg.

23, ln. 10-11). By Defendant’s own pleadings they are not secular and their

rehabilitation program is the disguised teachings of the Church of Scientology.

64. Finally, Defendant NFC made no known or reasonable effort to ensure

that Plaintiff’s addiction be monitored by a professionally competent medical

personnel, physician, or registered nurse. The basic reason for the lack action on

the part of Defendant NFC can be directly traced to the oversight of Defendants NI

and ABLE. A Narconon location cannot engage in activities outside the scope of


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their licensing agreement as it is set down by Defendants NFC and ABLE because

their form of rehabilitation is faith based healing not medically recognized

treatment.

65. While Plaintiff may have contracted and sought treatment with

Defendant NFC, Defendant NFC was operating under the direct control and

supervision of Defendants NI and ABLE.

66. As a direct and proximate result of Defendants’ breaches, Plaintiff has

suffered damages in excess of $75,000.00, with the exact amount to be determined

at trial.

VI. SECOND CAUSE OF ACTION: NEGLIGENCE




68. Defendants owed Plaintiff a duty to render substance abuse treatment to

Plaintiff in a manner that did not subject her to an unreasonable risk of harm.

Defendants further had a duty of care to render reasonably safe and effective

treatment to Plaintiff. This standard is one of an ordinary person in the same or

similar situation.

69. Defendants breached these duties by: (i) instructing Plaintiff to sit in the

sauna for 4-6 hours a day for at least sixty-four days respectfully, while ingesting


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dangerous amounts of Niacin and other vitamins; (ii) failing to staff the NFC

treatment facility, and particularly the sauna, with any qualified medical personnel;

(iii) failing to provide duly qualified counselors to administer treatment; and (iv)

providing Scientology in lieu of substance abuse treatment.

70. As stated previously, Plaintiff went through the Narconon Program for a

over six months. That program was instituted and controlled by Defendant NFC.

Defendant NFC, through its licensing agreement with Defendant NI, is obligated to

adhere to the program as set out by Defendant NI. This obligation carries the

additional caveat of control exerted by Defendant NI over the facility and practices

of Defendant NFC. And while Defendant NFC receives its orders and direction

from Defendant NI, Defendant NI receives the same from Defendant ABLE. It is

because of this chain of authority, that Defendant NFC was negligent in properly

retaining licensed medical staff to assure the health of Plaintiff and other patients

did not physically deteriorate while in their care or in the care of facilities under

their control.

71. During Plaintiff’s time at NFC, she required emergency treatment at a

local hospital directly relating to her withdrawal symptoms. Additionally, Plaintiff

suffered continuous skin irritation and headaches for months after leaving

Defendant NFC’s facility and she had no prior history of having.


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72. As a proximate result of Defendants’ breaches, Plaintiff has suffered

physical and mental injuries in excess of $75,000.00, with the exact amount to be

determined at trial.

VII. THIRD CAUSE OF ACTION: FRAUD




74. The elements of fraud, which provide a basis for the tort of deceit, are:

(a) misrepresentation (false representation, concealment, or nondisclosure); (b)

knowledge of the falsity (or ‘scienter’); (c) intent to defraud, i.e., to induce

reliance; (d) justifiable reliance; and (e) a resulting damage. From the point

Plaintiffs made their initial contact with Defendants until her final departure,

Plaintiff relied on statements made by or on behalf of Defendants to the detriment

of her own health and wellbeing.

75. Defendants ABLE and NI cannot assert that they are innocent bystanders

in the claims brought forth in the case. The fraudulent conduct of the Defendants

is pervasive and continuous, stemming from Defendant ABLE conveyed through

Defendant NI and implemented in Defendant NFC. Defendant NI publishes

directives through their Opening and Running Manuals. (See Exhibit 5, Manuals).

These Manuals require individual Narconon centers, like Defendant NFC, to


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expressly follow their direction otherwise they risk losing the rights to use the

Narconon name and associated benefits paid for by Defendants NI and ABLE.

These benefits include advertising, referrals through a call center hosted by

Defendant NI, name recognition as it is controlled through both NI and ABLE, and

business and operational planning with constant oversight.

76. The following is a non-exhaustive list of fraudulent representations

Defendants knowingly made to the Plaintiff: (i) that NI, including NFC, has a 70-

80% success rate; (ii) that the NI program is secular and does not involve the study

or practice of any religion; (iii) that NI and NFC is not any way connected to

ABLE or the Church of Scientology; (iv) that Plaintiff would receive effective and

scientifically proven counseling for her substance abuse; (v) that NI’s and NFC’s

sauna program, i.e., the Purification Rundown, is safe and has been scientifically

proven as effective; and (vi) that Plaintiff would be safely medically detoxed at a

facility under medical supervision.

77. Each of the statements listed above, and countless others, have been

made to the Plaintiff, Ms. Kennedy, and their family. These fraudulent statements

were first made to Ms. Kennedy during her initial internet search for drug

treatment centers. (See Exhibit 3, Screen Captures). Plaintiff relied on the

fraudulent representation and enrolled under the belief that she would receive help

for her addictions. Defendants NI and ABLE make continuous and affirmative


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steps to control the message and use the Narconon name with the intent to induce

new patients to their facilities.

78. Defendant NFC is not allowed to independently alter any message or

statement they assert through their own website or printed material without the

express permission of Defendant NI and by proxy Defendant ABLE. “All internet

websites need to be approved by Narconon International by the trademark holders,

Association for Better Living and Education International.” (See Exhibit 5,

Manuals, Running an Effective Narconon Center, at pg. 239). The fraudulent

statements made above are the same contained on the materials posted through

Defendant NI and NFC respective websites. This controlled and calculated

assertion of the benefits of choosing Narconon over other drug treatment centers

illustrates that all parties are aware of the deception and each benefits through the

revenue brought in by new patients.

79. If representations of the NI website and representatives associated with

the Narconon Program, which were known to be false by the Defendants, were not

made to Plaintiffs, they would not have been induced to seek treatment through NI

or NFC.

80. As a direct and proximate result of Defendants’ fraudulent conduct,

Plaintiff has suffered damages in excess of $75,000.00, with the exact total to be

determined at trial.


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VIII. FOURTH CAUSE OF ACTION: PREMISES LIABILITY




82. Defendants owed Plaintiff a duty to render a safe environment as the

Plaintiff was an invitee. Plaintiff was at NFC for a commercial benefit to the

possessor of the place of business. The possessor has a duty to use ordinary care to

protect an invitee from risks of harm from a condition on the possessor’s place of

business if: (i) the risk of harm is unreasonable, and (ii) the possessor knows or in

the exercise of ordinary care should know of the condition, and should realize that

it involves an unreasonable risk of harm to an invitee.

83. Defendants are aware that (i) the sauna program can be dangerous to

individuals who have preexisting conditions that may make them susceptible to

injury from prolonged exposure to high temperatures; (ii) Defendants do not

provide medical oversight at their facilities to ensure any complication from

withdrawal or treatment can be addressed without having to remove the patient off

sight for emergency care; and (iii) Defendants were aware that illegal substances

were being used at their facilities and did not take proper care to control their

employees or their facility in a manner that would be considered reasonable.


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These lacks of control directly lead to the use of illegal drugs being consumed by

the staff or patients of that facility.

84. As a direct and proximate result of Defendants’ breach, Plaintiff has

suffered damages in excess of $75,000.00, with the exact total to be determined at

trial.

IX. REQUEST FOR INJUNCTIVE RELIEF




86. Defendants have been the subject of numerous law suits across North

America and have been made abundantly aware of the dangerous conditions

created by their sauna program.

87. ABLE, NI, and NFC have no scientific justification for the use of its

sauna program despite claims asserted by them.

88. Defendant’s own retained experts have testified that there is no scientific

justification for the sauna program.

89. In a prior lawsuit, Dr. Louis A. Casal, an expert retained by NI and

Narconon of Northern Georgia in a wrongful death suit filed against those entities,

testified at a deposition. A true and complete copy of Dr. Casal’s deposition

testimony is attached hereto as Exhibit 6. When Asked under oath about NI’s


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sauna program, he testified that there is no scientific basis for the notion that

seating in a sauna detoxifies a person’s body or treats addition:

Question (Q.). “Have you looked at the Narconon literature on what

Narconon contends the benefits from the sauna are?”

Answer (A.). [Dr. Casal] Yes, I have.

Q. And the sauna program, what Narconon contends is that in – it in

fact detoxifies your body. True?

A. True

Q. But there’s no scientific basis that you can point to to support that

contention, is there, sir?

A. You’re correct.

Q. So when Narconon states that the sauna program detoxifies its

patients, you’re not aware, as a medical doctor, of any scientific basis

for that contention?

A. I agree. (See Exhibit 6, Deposition of Dr. Louis Casal, 136:21 –

137:9).

90. Because there is no-scientific justification for the dangerous sauna

program Plaintiff is likely to prevail at trial.


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91. Allowing Defendants to continue to operate such a dangerous sauna

program is needlessly endangering the lives of patients treated through the

Narconon Program.

92. Common sense, science, and the safety of all present and future NI and

NFC patients necessitate the immediate suspension of the sauna and Niacin

program at NFC via a temporary restraining order from this court.

X. DEMAND FOR A JURY TRIAL

93. Plaintiff demands a jury trial on all counts.

XI. PRAY FOR RELIEF

WHEREFORE, Plaintiff prays for the following relief:

A. Judgment in favor of Plaintiff against Defendants for damages in such

amounts as may be proven at trial;

B. Compensation for special and general damages;

C. Reasonable attorney’s fees and costs of suit;

D. Interest at a statutory rate;

E. Punitive or exemplary damages against Defendant; and

F. All other relief the Court deems to be just and proper.


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Respectfully submitted,

/s/David E. Miller

David E. Miller

Saeed & Little LLP

1433 N. Meridian Street

Indianapolis, IN 46202

(317) 371-5535

[email protected]

CA Bar No.: 294-095


mailto:[email protected]

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CERTIFICATE OF SERVICE

I, hereby certify that on August 15, 2014 that the foregoing document was

submitted electronically via the court’s Electronic Filing System (CM/ECF). A

Court certified copy will be served on the parties listed below via U.S. Certified

Mail.

Narconon Freedom Center d/b/a

Narconon Treatment Center

via its registered agent:

Alan Kellman

645 Griswold Street, Suite 1370

Detroit, MI 48226

Narconon International


Sherman D. Lenske

6400 Canoga Avenue, Suite 315

Woodland Hills, CA 91367

Association for Better Living and

Education


Sherman D. Lenske

6400 Canoga Avenue, Suite 315

Woodland Hills, CA 91367

/s:/ David Miller

David Miller


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