This comes from a U.S. Tax Court decision. Please note this decision was issued a year before Paulette Cooper claimed she had no evidence that Hubbard ran the CoS.

__________________________________________________

Church of Scientology of California, Petitioner v. Commissioner Of Internal Revenue, Respondent

Docket No. 3352-78

UNITED STATES TAX COURT

83 T.C. 381; 1984 U.S. Tax Ct. LEXIS 30; 83 T.C. No. 25

September 24, 1984

September 24, 1984, Filed

[snip]

[*389] L. Ron Hubbard officially resigned his position as executive head of the California and other churches of Scientology in 1966. Despite his official resignation, various charts of petitioner depicting management functions during the docketed years continued to place him in the top position. He also held the rank of Commodore, the highest rank in the Sea Organization, which was an elite fraternity of Scientologists. He kept control over the California Church policy by authoring numerous policy [**19] letters and by allowing others to go out in his behalf. He also wrote other types of policy directives including Flag Orders, L. Ron Hubbard Executive Directives, and Orders of the Day. He made important decisions affecting Church administration, transferring "U.S. Pubs" from the Denmark Church to ASHO and disbanding the Executive Council Worldwide which had overseen the day-to-day operations of the Church. He supervised the activities of the Franchise Office. Staff consulted with him before inaugurating major plans and whenever an operation of the Church was foundering.

L. Ron Hubbard's control over petitioner's financial affairs was particularly notable and was long standing. In the years immediately preceding the taxable years, L. Ron Hubbard was a signatory on all churches of Scientology bank accounts including petitioner's. His approval was required for all financial planning. He was the sole "trustee" of a major Scientology fund into which petitioner made substantial payments. He decided to open Swiss bank accounts for petitioner and to put them in the name of OTC. He sent a Flag executive to AOLA to revamp its financial operations. He authorized the purchase of a [**20] ranch in Ensenada, Mexico, and wrote a check for $ 80,000 on one of petitioner's Zurich accounts for its purchase. His control continued during the docketed years. He remained a signatory on petitioner's bank accounts including the OTC accounts. His approval was required for financial planning. He authorized the removal of huge sums of money from petitioner's Swiss bank accounts maintained in the name of OTC.

[snip]

_________________________________________________

This next ruling comes from a Florida case. It comes from a lawsuit Paulette Cooper's friend Nan McLean filed against the Church of Scientology. This opinion came out 3 years before Paulette Cooper signed the affidavit claiming she had no knowledge that L. Ron Hubbard controlled the Church of Scientology.

NANCY McLEAN and JOHN McLEAN, Her Son, Plaintiffs, v. THE CHURCH OF SCIENTOLOGY OF CALIFORNIA, et al., Defendants

Case No. 81-174 Civ T-K

UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA

538 F. Supp. 545; 1982 U.S. Dist. LEXIS 12091

March 16, 1982

[snip]

Plaintiffs allege, in summary, that the Hubbards controlled the Guardian's Office of the Church of Scientology of California, and that it took the alleged actions against plaintiffs in Florida for the purpose of [*548] realizing a pecuniary benefit. They allege the Hubbards were residents of Florida in Late 1975 and early 1976, during which time the actions complained of arose, and that the Hubbards have become non-residents and are concealing their whereabouts. It is clear that such allegations support a reasonable inference of jurisdiction over the Hubbards.

Defendants, however, challenge these allegations with an unsworn statement indicating the Hubbards' independence of the Church of Scientology of Florida, an affidavit stating [**5] their similar independence of the Church of Scientology of Boston, two affidavits which tie the Hubbards to Florida as of early 1976 and confirm their leaving Florida thereafter, and an affidavit by the President of the Church of Scientology of California disclaiming any connection by Ron Hubbard with the Church other than as Founder and Author since 1966. No personal affidavits of the Hubbards were submitted.

The plaintiffs respond with exhibits and deposition excerpts supporting jurisdiction. The issue for the Court is whether plaintiffs' evidence sufficiently establishes those material facts supporting jurisdictional allegations in order to overcome defendants' counter evidence and to justify service of process under Florida's constructive service statute.

[snip]

Persons associated together

The first issue is whether plaintiffs' allegations that the Hubbards are "any person or persons individually, or associated together as a copartnership or any other form or type of association" are sufficiently supported. Significantly, plaintiffs allege that the Church was agent of the Hubbards, rather [**7] than that the Hubbards were merely non-resident officers of the resident corporate Church. Defendants submit affidavits and documents refuting the Hubbards' official status subsequent to 1966.

Thus plaintiffs are not required to establish personal involvement by the Hubbards as officers. See Wright & Miller, Sec. 1068; Escude Cruz v. Ortho Pharmaceutical Corp, 619 F.2d 902 (1st Cir. 1980)

The file is replete, however, with support for the allegation that the Church and the Hubbards are closely connected, including the following:

Plaintiff's allegations that the Hubbards controlled the Guardian's Office of the Church is corroborated by the findings in United States v. Mary Sue Hubbard, et al (C.A.D.C. October 2, 1981). (Exhibit B to plaintiff's opposition to defendant Lisa's motion for protective order filed October 15, 1981. The indictment there covers the same general time span as this case.) The Court of Appeals found the Hubbards to be the first and second highest officials in the Scientology organization. Id. at 8.

[*549] Defendant Lisa was with the Guardian's Office for the Church in Florida for thirteen years. His deposition, taken October 20, 1981 and submitted [**8] as an exhibit, reveals that Mary Sue Hubbard supervised the Guardian's office as Commodore Staff Guardian (CSG) and, as such, was sent reports as late as 1981 (pp 17-20). Numerous documents attached to the deposition show a copy sent to CSG.

L. Ron Hubbard received mail addressed to him through the Church's office in Florida, according to the Church's Standing Order No. 1, in effect until January 21, 1981. He still receives gifts via the Church according to revised Standing Order No. 1 of the Church according to revised Standing Order No. 1 of the Church, and messages from him are printed regularly in Church publications.

The fact that the Church has paid for the representation of the Hubbards' attorney is corroborative of an association between Hubbards and the Church. (See e.g., Goldfarb deposition, p.19).

There is significant evidence that the Hubbards were once residents and are now non-residents. Defendants themselves submitted affidavits by Vickie Mead and Kenneth Urquhart stating that Mary Sue and L. Ron Hubbard were in Florida between December, 1975, and June and February, 1976, respectively. Both affidavits state they have not been in Florida since. The numerous [**9] efforts to serve the Hubbards at the best address known to plaintiffs indicate that the Hubbards are no longer residents of this state.

Further, the file as a whole supports the allegations that the Hubbards are concealing themselves. The file is full of certified mailings to various known addresses of the Hubbards, including that given by the Church representative returned as non-deliverable. The same is true of attempts at service of the Hubbards in 80-501 Civ T-K (hereinafter referred to as the "Burden" case) which is another case pending before this court with similar defendants, and counsel on both sides.

The Court of Appeals opinion confirms such projects as "red box", an organized effort on the part of persons within the Church to hide the whereabouts of key personnel and key documents. Exhibit 3 to Lisa's deposition is "Operation Bulldozer Leak", the stated purpose of which is to spread the rumor that L. Ron Hubbard has no control of the Church and no legal liability for it. To the extent that the Church is shown to be Hubbard's agents, these are efforts of concealment attributable to him.

Relative to the deposition in this case of Hubbards' attorney, plaintiffs [**10] in the Burden case filed a motion to compel on October 27, 1981. In the Church's response to that motion, the Church represented that one of the major objectives of the employment of Hubbards' attorney is to "assert his [Hubbard's] right to privacy and seclusion". Moreover, the Hubbards' attorney has refused to answer questions concerning the Hubbards' whereabouts or representatives' contacts with him, claiming such information was given to him in confidence, in spite of this Court's ruling elsewhere in this case and in the Burden case that such information is not protected by the attorney-client privilege.

These comprise corroborative and supportive evidence of the Hubbards' efforts and intent to conceal themselves. Accordingly, the file herein presents a showing sufficient to indicate concealment under Florida law. Cortez v. N.Y. Capital Group, Inc. 401 So.2d 1163 (Fla. 3DCA 1981). Carrying on a business venture in Florida

The Court is of the opinion that the plaintiffs have adequately supported their allegation that the Hubbards, through their agent the Church, accepted "the privilege to operate, conduct, engage in or carry on a business or business venture in Florida, [**11] or to have an office or agency in the state."

The inquiry concerns the nature, not extent, of a defendant's activities in the state. Florida courts have shown a willingness to liberally construe " business venture" under Fla. Stat. 48.181. Continuous and systematic activities provide a reasonable basis for the assertion of jurisdiction. Ford Motor Co. v. Atwood Vacuum Machine [*550] Co., 392 So.2d 1305 (Fla. 1981). A commercial transaction for pecuniary benefit is not necessarily required. Participating in the proceeds of an uncle's estate has been held to be a business venture, McCarthy v. Little River Bank & Trust Co., 224 So.2d 338 (Fla. 3 DCA 1969), as has contracting with an in-state hospital for services. Maryland Casualty Co. v. Hartford et al, 264 So.2d 842 (Fla. 1DCA 1972).

The file contains numerous documents and articles as to the extent of the activities of the Church of Scientology of California in Florida and the effect thereof. The exhibits attached to the defendant Church's motion for change of venue, and the Lisa deposition and its exhibits indicate substantial business in the state, including the purchasing of property. In addition, the underlying suit [**12] by the Church against the plaintiffs which gave rise to the instant complaint was in Florida and sought a pecuniary award of $ 300,000. Arises out of the business venture in Florid.

Finally, the plaintiffs have met the burden of adequately alleging and praying that this suit arises "out of [a] transaction or operation connected with or incidental to the business or business venture." The underlying suit complained of was brought by defendants against plaintiffs in Florida It concerned statements plaintiffs made in Florida about the Church of Scientology of California's operations in Florida.

Upon consideration of the file as a whole, including but not limited to the particular evidence reviewed above, the Court is convinced that plaintiffs have met the burden of alleging and sufficiently establishing those material facts which support constructive service of process in Florida pursuant to Fla. Stat. 48.181. The requirements of the statute having been met, plaintiffs' constructive service of L. Ron Hubbard and Mary Sue Hubbard through the Secretary of State of Florida has been accomplished. Further, defendants have failed to present clear and convincing proof that the service [**13] is invalid. Accordingly, defendants' motion to quash is DENIED.

At hearing, defendants moved for certification of the Court's order pursuant to 28 USC 1292(b). That motion was, and is, GRANTED. The Court is of the opinion that this order involves a controlling question of law as to which there is substantial ground for difference of opinion, of which an immediate appeal would materially advance the case.

Subsequent to the hearing, but prior to this order, the Hubbards each filed a motion to dismiss and for reconsideration on January 27, 1982, to which plaintiffs have responded. The Hubbards have joined in each others motion, and ask the Court to reconsider its denial of the motions to quash at hearing, explained herein. The argument by defendants is essentially that presented previously on the motion to quash. The motions are DENIED for the reasons given herein.

Defendants raise the new argument, however, that plaintiffs failed to allege diversity jurisdiction in that the citizenship of the Hubbards is not alleged. Plaintiffs allege that the Hubbards were once Florida residents, have become non-residents of Florida, and are concealing their whereabouts.

The diversity [**14] statute provides for jurisdiction between "citizens of a State and foreign states or citizens or subjects thereof." 28 USC § 1332 (a)(2). Plaintiffs are Canadian citizens.

The Court hereby waives the Local Rule requirement of filing a complete, amended pleading, and grants leave to plaintiff to file an amendment to the amended complaint with jurisdictional allegation within 10 days of this order. 28 USC § 1653.

IT IS SO ORDERED at Tampa, Florida on this 15 day of March, 1982.

_________________________________________

I'll post some more in another message.

Diane Richardson referen@bway.net

From: referen@bway.net (Diane Richardson)
Subject: Yet More Hubbard Ran the CoS
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This time a newspaper article written by a reporter for the Globe and Mail. The reporter filed two feature articles, one specifically about Paulette Cooper going through the Operation Snow White files in Washington, D.C. and another which appears below. This story appeared in 1980, five years before Paulette Cooper claimed she had seen no evidence that Hubbard was running the CoS. ______________________________________________

The Scientology Papers Hubbard still gave orders, records show

John Marshall

01/24/1980 The Globe and Mail P11; (ILLUST) All material copyright Thomson Canada Limited or its licensors. All rights reserved.

L. Ron Hubbard, the former science fiction writer who publicly resigned in 1966 from leadership of the Church of Scientology, continued to give orders to its leaders into 1977, a Washington court has been told.

Evidence obtained in 1977 in raids on U. S offices of the cult by the Fed eral Bureau of Investigation revealed there was a detailed rogram to cover up Mr. Hubbard's involvement in the leadership of Scientology.

Called Operation Bulldozer Leak, it was part of the documentary evidence filed by federal prosecutors with the U. S. District Court that last month gave long prison terms to Mr. Hub bard's wife and eight other Scientolo gy leaders for their roles in conspira cies to steal government documents and to obstruct justice by kidnapping an informer. The nine are free pending an appeal of the validity of some of the evidence.

Three other Scientologists, includ ing two world leaders in England and the informer, also were indicted in 1978 but have not yet been tried. Mr. Hubbard and 22 others were named as unindicted co-conspirators.

Probe continues

Federal prosecuting attorneys say investigations into Scientology operations are continuing within the Internal Revenue Service (a meeting of which was bugged by the cult's spies) and at state levels in various areas.

Mr. Hubbard never appeared at any of the long and complex judicial pro ceedings that began with unsuccessful efforts immediately after the 1977 FBI swoop to have the raids declared illegal.

His name, however, has cropped up frequently. It appears in various forms in some of the 33,000 documents seized from Scientology files and submitted to a grand jury and to trial and appeal courts by U. S. attorneys. He is referred to variously as Found er, Commodore, LRH and Ron.

He also is at times referred to by various code names, according to documents found in the FBI raids and made public by U. S. District Judge Charles Richey after the Scientologists lost appeals of his decision to do so.

In the so-called Zeus code Mr. Hubbard is Joko, his wife, Jigo; in a code called Amber he is Neon, and Mrs. Hubbard is Lily.

A document with FBI number 7822, dated Nov. 5, 1976, and signed by Judy Taussig, a U.S. national official of Scientology, defined the correct use of the codes.

They were to be used, the court learned, for groups or actions that we don't want connected to LRH or MSH. This is handled by coding their names. Also coding the group or action if it falls into categories #1-#8 That list included incriminating activities, unpunished crimes, and things like lobbying where this is prohibited in non-profit corporations, or money deals that might provoke government tax offices.

The document also said the codes should be used for words of actions that could tend to dispute the fact that the C of S motives are humanitarian, i.e., harass, eradicate, attack, de stroy, annihilate . . . spreading a rumor, entrapment, stir up opposi tion.

And codes should be used for the names of front groups that we do not want connected with the C of S and for anything that gives specific and actual evidence that the C of S is in legal control of B6 groups. These are groups that are separate legal entities to the C of S.

Narconon front

An attachment to the document, listed in the prosecution inventory as item 104 in Box C16, said B6 groups include Narconon, a drug treatment organization staffed by Scientologists and using Mr. Hubbard's mental health techniques.

The use of codes, according to the court documents, was part of the operation of the cult's Guardian office, which also produced Operation Bulldozer eak.

FBI item 1454 from the raid on U. S. Scientology headquarters in California was dated July 21, 1976, and defined Bulldozer's major target as:

To effectively spread the rumor that will lead Government, media, and individual SPs (for suppressive persons, meaning critics) to conclude that LRH has no control of the C of S and no legal liability for Church activity.

The document, classified secret, constituted a series of orders to assistant Guardians in all branches to recruit, teach, and test agents on cover stories (it suggested they could pretend to be writing a book and should not use their real names) to spread the rumor.

Existing agents working in anti-Scientology groups also were to be used.

They were to approach all government officials, journalists and others who had ever been critical of the cult, the Guardians were told, and sample scripts were provided.

An agent will in several different ways mention that he has heard that LRH no longer has any control of the Church; and that an ex-Scientologist has shown some articles . . . that stated that it had definitely been established in several court cases precedents that LRH had no liability for any Church activity.

Contacts who could not be personally seen were to be telephoned, the Bulldozer program said, and the cover story and rumor given.

A sample script said the agents could add: So while the press likes to ride with the one-leader idea so as to make press, they could not be further from the truth.

Documentary evidence of another Guardian operation was submitted to the court. FBI number 3205, it was Guardian order 1206, The Snow White Program.

The order was prepared by Fred Hare, assistant to Mrs. Hubbard. (She was identified in this document as Controller, while in others she was called Commodore Staff Guardian.)

It began: For the past year there has been a massive program in operation in the Guardian office and on Flag. (Flag was the Apollo, the sea-going ship from which Mr. Hubbard operated until a land base for Flag was opened in a hotel in Clearwater, Fla., bought by the cult in late 1975.)

This program was written by the Commodore.

The purpose was to trace back the attacks of the past 24 years to find and handle the SOURCE and it involves most of the areas of the planet that have been touched by Scientology.

The order said a special stamp was being made for all documents used in the program. (The stamp, a copy of the Disney Snow White character, appeared on a great many items in the documentary evidence.)

The Hubbard program was to be given the biggest possible priority.

Another document outlining the Hubbard program was dated March, 1976. Now bearing FBI number 13887, it was identified as Guardian order 302 and was over the names of four of the convicted U. S. leaders and the two accused in England.

Major target

It said the major target of the top-priority Hubbard program was the need to get all false and secret files on Scientology, LRH . . . that cannot be obtained legally, by all possible lines of approach . . . i.e., job penetration, janitor penetration, suitable guises utilizing covers.

It said nothing done was to reflect back on Scientology.

There were a number of other references to Mr. Hubbard's leadership in the documents submitted to the court.

In 1970 a top Guardian wrote to Mr. and Mrs. Hubbard his appreciation for their continually superb leadership.

Another order to Scientology directors and deputies from Richard Weigand, one of the Guardians ultimately convicted as a conspirator, said: I have been over your lists of major orders . . . LRH-MSH are the highest priorities.

Gregory Willardson, another convicted conspirator, described his duties in January, 1976, according to Item 64 of Box C10 in the court documents, as including the need for increasing my reality of seniors' viewpoints all the way to LRH.

Another convicted conspirator, Henning Heldt, wrote to Mrs. Hubbard about a package of sensitive Scientology documents from world headquarters that had been seized by U. S. customs officers in 1976. He said one item could be embarrassing but assured Mrs. Hubbard that quotes under policy are not directly stated to be LRH's.

Prosecuting attorneys used documentary evidence to show the Scientologists stole material from the seized packages and replaced them with innocuous documents before customs inspectors saw the package contents.

They also submitted evidence describing the material in the packages that the Scientologists considered sensitive.

One was a report on the incorporation of the Cleveland Scientology mission that could be used by IRS if they ever got hold of it to prove legal control invalidating board of directors.

Another item was a report on a group called the Association of Scientologists for Reform that, a Guardian said, could show more control and connection between C of S and ASR than we would like.

Reports to Hubbard

The documents seized by the FBI in 1977 and filed in court included reports on Scientology operations sent directly to Mr. Hubbard.

One, given FBI number 3197, was a 13-page year-end listing of U. S. Guardian office wins. It covered a wide field of activities in the United States and Canada.

It told Mr. Hubbard that Guardians penetrated a hospital and obtained medical records and also infiltrated Better Business Bureaus, the American Medical Association, Associations of Mental Health in the United States and Canada, the American Psychiatric Association, the American Sexual Freedom Movement and a Toronto mental health hospital.

It reported to him on insurance matters and on state and federal tax issues, and on how had the IRS tied up in knots.

It told Mr. Hubbard of successful public relations attacks on conventional psychiatry and reported on public relations gains through the expansion of Narconon.

The drug-treatment program is referred to often in the court documents.

In a Guardian logbook for early 1976, Barbara Code asked another officer: Has Narconon U. S. established itself as an admin unit functioning w/out bypass from your bureau? There was also criticism in the log of a church official who visited a Narconon operation in Palo Alto, Calif., without settling its debt problems.

Another document contained a report that a U. S. municipality wanted local leaders named to the Narconon board before they would consider granting it taxpayers' funds. The Scientologists rejected the proposal.

Many of the Church of Scientology operations, according to the documentary evidence and the prosecutors' stipulation of evidence in the conspiracy trial, were programs set up to fight so-called enemies.

There was Operation Kettle against the American Medical Association, Operation Rook against the Better Business Bureau, Humanist Humiliation against scientists investigating the paranormal, Operation Smoke against the American Cancer Society.

Operation Strike (File 70, Box C-9, FBI item 11572) was defined by Guardian officer Kathy Gregg in October, 1971, as the action of gathering information on a covert basis.

Squeakless shoes

She gave 12 steps on how to do so, ranging from such details as the acquisition of squeakless shoes to the establishing of a safe reading place if target files could not be removed for study elsewhere.

Some operations were against individuals, the Washington court was told, with documentary evidence to support the state's charges.

A priority was Paulette Cooper, target of the church's Operation Freakout. She was the author of a 1971 book, The Scandal of Scientology, and the subject of a torrent of lawsuits by the Scientologists.

Evidence implicated the Scientologists in a frameup that resulted in the New York writer's being indicted on a bomb-threat charge that took her two years to have dropped.

There were also reports in the files from a Scientology agent who became intimately close to Miss Cooper. He told his superiors at one point that the woman was so depressed she had talked about suicide. He said that he had sympathized with her, but that on the inside he was laughing - wouldn't this be a great thing for Scientology.

Played prostitute

In one case a cult member played the role of a cosmetic-layered, foul-mouthed prostitute who invaded the reception area of a government office to embarrass an official.

And in Program Billy's Baby, a Scientologist was to be rehearsed in playing the role of mistress to an American Medical Association official, so that she could cause a scandal by claiming she was going to have a baby by him.

A Guardian official called Doug reported to another, Sandy, in one document: I recruited a tough OT (operating thetan, a supposedly superior person on the Scientology ladder of courses) female with lots of intention who could act out a few dramatic phone calls . . . . I drilled the FSM (field staff member) so she had the patter exactly as written and could mock up grief, drugged, slurred voice.

Doug noted that another field staff member in the target agency let me know they (the phone calls) created quite an effect.

The press was a special target for attention from both Mr. Hubbard and his wife.

The cult founder's Manual of Justice of 1959 was included in the court documents. In it he ordered his followers to use private detectives to investigate critical journalists and get any criminal or Communist background.

In a policy letter to his followers dated February, 1966, Mr. Hubbard wrote: Start investigating them promptly for felonies or worse using our own professionals, not outside agencies.

He also said Scientologists should feed sexual and criminal information about their enemies to the press.

In Guardian order 121569, Mrs. Hubbard said: It has been virtually impossible to get true press stories in certain newspapers . . . there is a 'party line' . . . we think perhaps this line leads back to psychiatric front groups.

She called on Guardians in all local organizations to investigate the writers of critical material and ascertain their contacts, and to investigate editors, managers and owners of the media outlets involved. The Guardians were to use imagination in obtaining information not publicly available.

In the court documents was an acknowledgement of the order from San Francisco. The church there reported it got an agent into the San Francisco Examiner the day after a second article by a reporter appeared and obtained his entire file on Scientology.

____________________________

Diane Richardson referen@bway.net

From: referen@bway.net (Diane Richardson)
Subject: More Hubbard Ran the CoS
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This appellate court ruling came out in 1984, a year before Paulette Cooper provided the Church of Scientology with an affidavit stating she had no knowledge that Hubbard was still running the CoS. ___________________________________________

MARTIN SAMUELS, Respondent, v. LAFAYETTE RONALD HUBBARD, Defendant, and CHURCH OF SCIENTOLOGY OF CALIFORNIA, INC., and CHURCH OF SCIENTOLOGY, MISSION OF DAVIS, Intervenors-Appellants

CA No. A30844

COURT OF APPEALS OF OREGON

71 Ore. App. 481; 692 P.2d 700; 1984 Ore. App. LEXIS 4684

October 10, 1984, Argued and submitted

December 19, 1984, Filed; Argued and submitted October 10, 1984

[*483] [**701] Plaintiff filed this civil action against Hubbard, the founder of Scientology, alleging that Hubbard had committed torts against him. Plaintiff does not allege that Hubbard personally committed the alleged torts, which include conversion, outrageous conduct, defamation and fraud. Rather, he alleges that he directed and controlled others who did so and that they were Hubbard's agents. They include intervenors Church of Scientology of California, Inc., and Church of Scientology, Mission [***2] of Davis. Plaintiff is a former minister of the California church and a former president of the Davis mission. Plaintiff served Hubbard by substituted service pursuant to an ex parte court order, but Hubbard has not appeared. After the service, the California church and the Davis mission moved to intervene as defendants. The trial court denied their motions, and they appeal. We affirm.

[snip] _________________________________________

This appellate court decision was considered a major victory by Michael Flynn and other lawyers representing ex-Scientologists against the Church of Scientology. It is cited in later cases as precedent, holding Hubbard responsible for directing and controlling activities directly aimed at harassing opponents.

One of these cases was a lawsuit filed by Cooper's attorney Michael Flynn against Hubbard directly for harassment.

_________________________________________

MICHAEL J. FLYNN, Plaintiff, Appellee, v. LAFAYETTE RONALD HUBBARD a/k/a L. RON HUBBARD, Defendant, Appellee. CHURCH OF SCIENTOLOGY OF CALIFORNIA, INC., Appellant; MICHAEL J. FLYNN, Plaintiff, Appellee, v. LAFAYETTE RONALD HUBBARD a/k/a L. RON HUBBARD, Defendant, Appellee; MARY SUE HUBBARD, Appellant

Nos. 85-1397, 85-1398

UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT

782 F.2d 1084; 1986 U.S. App. LEXIS 22104; 4 Fed. R. Serv. 3d (Callaghan) 18

February 7, 1986

OPINION:

[*1085] BOWNES, Circuit Judge.

The question in this case is whether intervention under Federal Rule of Civil Procedure 24(a)(2) or 24(b)(2) was properly denied where the sole named defendant has, as yet, failed to appear. The plaintiff-appellee, Michael J. Flynn, is a Massachusetts attorney who has sued various Churches of Scientology and individual Scientologists over a number of years. [**2] L. Ron Hubbard, the defendant, is the founder of Scientology. On September 7, 1983, Flynn brought the complaint in this case naming Hubbard as the sole defendant and alleging that Hubbard had caused a wide range of torts to be committed against him.

The complaint alleges a written conspiracy by Hubbard and his individual and organizational agents and employees "to destroy" Flynn. This conspiracy was carried out, it is alleged, by various named Scientology organizations and individuals over which Hubbard has absolute authority. The torts alleged to have been committed at Hubbard's direction are: malicious abuse of process; malicious prosecution; intentional infliction of emotional distress; trespass; conversion; interference with contractual rights; invasion of privacy; unfair or deceptive practices in violation of Mass. Gen. Laws Ann. ch. 93A; assault and [*1086] battery; and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. §§ 1961-68. There are no allegations in the complaint that Hubbard, acting by himself, committed any torts against Flynn; all torts it is alleged were committed by Hubbard's agents and/or employees. [**3]

The putative intervenors are the Church of Scientology of California (CSC) and Mary Sue Hubbard, wife of the defendant. Both are named in the complaint as coconspirators. In addition to filing motions to intervene, CSC and Mary Sue Hubbard filed answers to the complaint. Mary Sue Hubbard also filed a counterclaim for malicious prosecution, abuse of process and libel. We note in passing that the tone, tenor, and language of the voluminous pleadings, affidavits and exhibits filed in this case (over 1,500 pages) is, at times, so accusatory, emotional and vitriolic as to make the reading of them a decidedly unpleasant chore.

[snip]

As already noted, we have found no federal cases allowing or denying intervention where the defendant has failed to appear. There is, however, one state case directly on point. Not surprisingly, the defendant is the same person as in the case before us, L. Ron Hubbard. In Samuels v. Hubbard, 71 Or. App. 481, 692 P.2d 700 (1984), [**12] the court held that the Church of Scientology of California, Inc., and Church of Scientology, Mission of Davis, had no right, under Oregon law, to intervene as of right in a tort action against Hubbard. As here, the plaintiff in the Oregon case alleged that Hubbard directed and controlled others to commit torts against him. The torts alleged are similar to the ones alleged here: conversion, outrageous conduct, defamation and fraud. And, as here, defendant failed to appear and the putative intervenors asserted that he would not appear. The Oregon court was careful to point out: "The record shows only that he [Hubbard] has not yet appeared." 692 P.2d at 703 n.1. _________________________________________________

Diane Richardson referen@bway.net

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