TO: State Bar of California Attention:  Luis  J.  Rodriguez.  Case Number: SC118806 DIANE GREENBERG VS. ALEXANDER KRONIK ET. AL. Filing Date: 10/22/2012  Complaint  with  a  State  Bar  on  the  ground  of  fraud  and  misrepresentation.   Reference: Diane Greenberg order with Palace of Glass Diane Greenberg approached Palace of Glass in 2010, contacting management directly and asking about placing an order for decorative glass. Knowing that Palace of Glass does not sell to retail clients, she initially approached our distributor in Santa Monica Economy glass, got a quote from them. Them obtaining the contact information for Palace of Glass there, she decided to save money by skipping the distributor and approached Palace of Glass directly, presenting herself as a certified designer. Being the point of contact and respecting the arrangements we have with our distributors I explained Diane the nature of our business and told her that we only work with " the trade": glass businesses, architects and designers. She stated that she is a designer and that her current project is designing her own house in Malibu. She said that her order as a designer will meet 50 SQF minimum and that she could provide a license at a later time. She said that she will do the installations by her own means, being a professional of the trade. After hours of conversations with Diane on the phone she stated that the order will not be placed any time soon. No designer license was ever provided. In April 2012 Diane called Palace of Glass again and said that she is finally ready to place the order. This time the order seems to much smaller than initial request, Diane provided very complicated custom images of what she wanted to be done in 3 panels of glass with the 24 SQF total. I explained to her that our normal lead time of 8 weeks could stretch longer as I would have to place such a small order as part of a bigger job to facilitate the discounted rate she was asking for. She agreed. In April 2012 invoice was issued for $ 2995 and Palace of Glass received a deposit of $1635 that got cleared in the first week of June. Sketches were approved by Diane on the June 2 via email:" Alex, I'm  delighted  and  it  is  a  gorgeous  sketch  ...Just  what  I  wanted."  

     Following  week  she  expressing  concerns  about  the  coloring  of  the  glass  and  I  advised  her  to  use  color  swatches  in  order  to  facilitate  the  production.  She  provided  extremely  complicated  rendition  of  colors,  Which  were  practically  impossible  to  implement.  (  Image  below  )  

   Palace  of  Glass  agreed  to  try  to  match  as  close  as  possible  to  the  client  requirement.  The  coloring  sketches  being  approved  by  Diane,  The  order  was  then  send  for  production  and  we  began  manufacturing.    

     Following  week  I  was  contacted  by  Diane  asking  me  to  change  all  the  sizes  on  the  order:  Please  decrease  the  WIDTH  in  the  following  manner: Panel  #1  -­‐  (left  panel)  should  have  the  left  side  of  the  image  decreased  by  3"  making  21inches  in  width In  other  words,  Some  of  the  coral  will  be  removed  on  the  left  (see  the  red  line  on  the  left) Panel  #2  remains  the  same  (24") Panel  #3  (right  panel)  should  have  the  right  side  of  the  image  decreased  by  3"  making  the  width  21inches,                                      In  other  words,    3  inches  of  the  right  side  background  but  NOT  taking  the  tail.  Please  include  all  of  the  tail,  if  possible!  (see  the  red  line  on  the  right)

 It  is  our  Palace  of  Glass  policy  and  practical  sense  not  to  adjust  things  once  they  are  sent  for  production:  once  we  begin  manufactruing  glass  by  cutting  it  to  the  needed  sizes.  I  agreed  to  make  another  change  and  absorb  the  cost  of  this  extra  step.  We  provided  the  3rd  version  of  sketches  and  the  order  was  then  again  approved  by  Diane.      

       On  June  14  I  was  contacted  by  Diane  stating  that  the  order  needs  to  be  adjusted  again  and  that  this  time  we  need  to  add  holes  into  the  corners  of  the  glass....see  the  email  below:  Good  Morning  Alex,  I  have  just  realized  that  the  Panel  3  (RIGHT)    -­‐-­‐hole  must  be  2"  in  from  the  LEFT  EDGE  and  2"  up  from  bottom  so  that  I  can  plull  it  out  of  the  Pocket  enclosure. I  apologize  for  the  change..........there's  just  too  much  going  on  at  one  time  and  I  need  to  slow  down.  Attached  is  the  corrected  SKETCH  labeled  TUESDAY  JUNE  12,  2012  PANEL  3  HOLE  PLACEMENT  CORRECTION  

Wanting to provide satisfactory service I decided to continue working on this project even though had all rights to cancel order at that time or charge extra for beginning production twice. I absorbed not only the cost of starting production for the second time, but did not charge extra for making those holes. I wanted to be done with this small order and once again promised myself to never work with retail clients.

The order was sent for production 3rd time. Due to the complicated nature of this order and an extreme amount of detailed requested by the client, we needed to do some extra layers of carving and alter the thickness of glass to the limits. That extreme endeavor caused technical problems and while the carved glass was going through a tempering oven it caused major explosion and fire. The production line was stopped for several days due to this incident At the end of June I start getting numerous e-mails and phone calls from Diane demanding the glass to be delivered on Aug 2. The last sketch she send with the updates requested was sent on June 14, the order got approved on June18 for production. The invoice state 10 weeks for manufacturing once the sketch is approved, plus delivery time of 7-10 days. That would make expected delivery time mid-late September. On Aug 12 I responded to the email confirming the situation on the factory and the expected delivery date. I stated that we will deliver the order as promised and offered in case of delay not to charge the balance ( 50% $1635) which I did not expect. On Aug 16 on behalf of Diane Greenberg I received a letter from David Greenberg, her husband, stating: " You have breached the agreement by failing to deliver on time. You have admitted that you are unable to perform an essential element of the agreement. We have made arrangements to obtain the glass from another vendor." To say the least I was puzzled: after all the troubles that Palace of Glass went through, the order is now being cancelled. Based on the company's policy and common sense Palace Of Glass does issue refunds for the deposits once the order is set for production. This is clearly stated as one of the company’s policy on the home page of the website. http://palaceofglass.com/terms-and-conditions In a threatening nature David started asking for refund on the order, Palace of Glass trying to negotiate did not bring to any positive results: Your email to my wife is totally unacceptable. Let me make this perfectly clear for you. I have done a skip trace on you. Suing people is what I do for a living. You have breached the agreement by failing to deliver on time. You have admitted that you are unable to perform an essential element of the agreement. We have made arrangements to obtain the glass from another vendor. Therefore, we do not want, nor will we accept late delivery. You

are to refund the money in full within ten days. If you fail to do so, I will sue for breach of contract and fraud. Fraud is not dischargeable in bankruptcy. Therefore, the judgment I obtain for the deposit, plus filing fee, cost of service of process and punitive damages will follow you for the rest of your life. We will continue to skip trace your car, bank accounts, home and any and all assets for as long as it takes to get all of the judgment plus interest which will accrue on the judgment at 10% per annum. We will continue to make you appear periodically at judgment debtor proceedings until all of the judgment plus interest is paid in full. If I do not receive payment in full within ten days, I will proceed without further notice. In September 2012, Not wanting to deal with the client that was bringing nothing but trouble, I agreed to issue refund and send 3 installments paid each month that would cover the full amount of the deposit and did not ask for any compensation for waited time and resources. I have not heard back a single line from either Diane or David on my offer to issue a refund. In May 19, 2013 I receive the letter from David, stating this: We have filed suit, published the summons and complaint and are about to take a default judgment which we will continue to list with credit agencies, and search for your assets. You were named and served by publications personally. If you want to take care of this matter, feel free to call me. Please note: even though David was in correspondence with me via email and was aware of the company’s mailing address, no summons was ever delivered to the business address, rather it was made “ by publications”, in some Los Angeles periodicals, even though, company’s address is in San Francisco area. David deliberately failed to notify about the filled suite and chosen a deceitful backdoor way to obtain a “ default judgment” without letting the other party aware of the issue. Palace of Glass replied to this confirming his intent to pay off the balance: I am still willing to work with you on your claim and refund you the deposit, minus the designer costs per sketches provided. I offered you to reimburse the deposit in 400$ installments paid by check. I never heard back or receive a response to this proposal that I did to you last September.

Only to get this answer May 29, 2013: My letter was not intended to negotiate, it was to put you on notice to file an answer or that a default judgment will be taken against you personally and Palace of Glass. If you want to avoid a judgment, you can issue a cashier check for the amount you were paid, plus costs to date. However, when we take a default judgment, we will be asking the what was paid, the costs, and the additional costs of getting a replacement. We are proceeding with the default judgment. At this point, I have received a letter from David Greenberg office, request for a default judgment, attached below. Please note this letter was mailed to the proper address of the company, but not the initial summons. This was the first letter ever sent to me from his office:

I have contacted the LA Superior Court and discovered that I missed a whole track of court dates regarding this case, that was apparently filed on 10/22/12. It has become obvious to me, that the whole arrangement of Greenberg family ordering custom glass from Palace of Glass was a preconceived

plot to order something expensive and custom, then cancel it on pretext of some complain and demand the refund and additional damages. I believe this type of personalities misrepresent the honesty and straightforwardness of the court system in the US and give attorneys a bad name. I am filing a counter claim on the same case and strongly recommend you look closely at this situation and act accordingly. Regards Alex Kronik