Diamond Claims & Investigation Services, Inc. - Page 9

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               their detriment, as follows:                                           
                         a)   Defendants repeatedly represented to                    
               plaintiffs that plaintiffs were receiving and would                    
               continue to receive all of CID's assignments to outside                
               investigators in Oregon, Washington, Idaho, Montana and                
               Utah, when plaintiffs were not receiving all such                      
               assignments, defendants had no intention of giving                     
               plaintiffs all such assignments, and CID's policy                      
               expressed to its regional Criminal Investigators was                   
               that assignments would be made on a case-by-case basis.                
                       *     *     *     *     *     *     *                          
                         d)   Defendants repeatedly represented to                    
               plaintiffs that plaintiffs would be indemnified and                    
               held harmless by defendants when defendants never                      
               intended to indemnify plaintiffs, and never did indem-                 
               nify plaintiffs or reimburse plaintiffs for plaintiffs'                
               legal fees, costs, and expenses.                                       
                        *     *     *     *     *     *     *                         
                    28. As a result of defendants' fraudulent acts as                 
               described above, plaintiffs were damaged as set out * *                
               * [in connection with their claim for breaches of                      
               contract]; plaintiffs Peter and Shirley Diamond suf-                   
               fered embarrassment, humiliation, emotional distress                   
               and mental pain and suffering to their damage in the                   
               amount of $500,000 each; plaintiff DCI is entitled to                  
               punitive damages of $25 million; and plaintiffs Peter                  
               and Shirley Diamond are entitled to punitive damages of                
               $25 million.                                                           
                        *     *     *     *     *     *     *                         
          VII.      Contentions of Law                                                
                        *     *     *     *     *     *     *                         
                    1.   All of the named defendants are liable to                    
               plaintiffs for the damages described above.                            
                    2.   All defendants and all plaintiffs were par-                  
               ties to and are bound by the agreement, and are enti-                  
               tled to the benefits thereof.                                          
                       *     *     *     *     *     *     *                          





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