Making Light of Black PR, Part 3, Appellant's Opening Brief in C$I v.
Armstrong
CALIFORNIA COURT OF APPEAL
FIRST APPELLATE DISTRICT
DIVISION FOUR
CHURCH OF SCIENTOLOGY INTERNATIONAL
Plaintiff and Respondent
v.
GERALD ARMSTRONG,
Defendant and Appellant.
Appeal No. A075027
Marin County Superior Court No. 157680
APPELLANT'S OPENING BRIEF
TABLE OF CONTENTS
I. INTRODUCTION................................................-1-
II. ARMSTRONG'S HISTORY WITH SCIENTOLOGY......................-3-
A. Pre-Settlement........................................-4-
B. The Settlement........................................-7-
C. From Settlement to First Response....................-10-
D. Fair Game After Armstrong's First Response...........-14-
E. Armstrong's Actions..................................-17-
F. Scientology's Enforcement Litigation.................-19-
III. ARGUMENT................................................-29-
A. There is a Triable Issue as to Duress................-29-
B. There is a Triable Issue as to Fraud.................-32-
C. There is a Triable Issue as to Justification.........-34-
D. The Settlement Agreement Obstructs Justice...........-36-
E. There is a Triable Issue as to the Validity
of the Liquidated Damages Provision..................-41-
F. The Settlement Agreement Violates
Freedom of Speech....................................-45-
G. The Settlement Agreement Violates
the Thirteenth Amendment.............................-47-
H. The Settlement Agreement Violates
Freedom of Religion..................................-48-
IV. CONCLUSION...............................................-50-
TABLE OF AUTHORITIES
ITT Telecom Products Corp. v. Dooley (1989)
214 Cal.App.3d 307, 319......................................-46-
Scientology v. Armstrong, (1991)
232 Cal.App.3d 1060, 283 Cal. Rptr. 917......................-13-
Civ. Code, Sec.1671, Subd (b).............................-24,41-
I. INTRODUCTION
The order of injunction states:
"[GA], his agents, employees, and persons acting in concert or
conspiracy with him are restrained and enjoined from doing
directly or indirectly any of the following:
1. Voluntarily assisting any person (not a government organ or
entity) intending to make, intending to press, intending to
arbitrate, or intending to litigate a claim, regarding such
claim or regarding pressing, arbitrating, or litigating it,
against any of the following persons or entities:
- [The Church of Scientology International, Church of
Scientology of California, Religious Technology Center, Church
of Spiritual Technology, all Scientology and Scientology
affiliated Churches, organizations and entities, Author
Services, Inc., and all their officers, directors, agents,
representatives, employees, volunteers, successors, assigns and
legal counsel;]
- The Estate of L. Ron Hubbard, its executor, beneficiaries,
heirs, representatives, and legal counsel; and/or
- Mary Sue Hubbard; (Hereinafter referred to collectively as
"the Beneficiaries");
2. Voluntarily assisting any person (not a government organ or
entity) defending a claim, intending to defend a claim,
intending to defend an arbitration, or intending to defend any
claim being pressed, made, arbitrated or litigated by any of
the Beneficiaries, regarding such claim or regarding defending,
arbitrating, or litigating against it;
3. Voluntarily assisting any person (not a government organ or
entity) arbitrating, or litigating adversely to any of the
Beneficiaries;
4. Facilitating in any manner the creation, publication,
broadcast, writing, filming audio recording, video recording,
electronic recording or reproduction of any kind of any book,
article, film, television program, radio program, treatment,
declaration, screenplay or other literary, artistic or
documentary work of any kind which discusses, refers to or
mentions Scientology, the Church, and/or any of the
Beneficiaries;
5. Discussing with anyone, not a member of Armstrong's
immediate family or his attorney, Scientology, the Church,
and/or any of the Beneficiaries."
GA contends that his signature was obtained by Scn on the SA by
duress, fraud and the compromise of his then attorney. GA
contends that all his alleged breaches of the SA were in
response to and in self-defense against Scn's post-settlement
attacks on him, and that as such his actions were legally
justified. He contends that the purpose and function of the SA
and its enforcement are obstruction of justice, and as such are
against public policy. He contends that the SA and the
injunction impermissibly violate his Constitutional rights to
freedom of religion, freedom of speech, freedom of association,
due process and freedom from slavery; and impermissibly
eliminate his litigant's, clergyman-penitent, therapist-patient
and doctor-patient privileges. GA contends that the liquidated
damages provision impermissibly acts as punishment, that the
amount has no reasonable relationship to Scn's actual damages
for his alleged breaches, and that there are sufficient
disputed facts concerning circumstances at the time of the
settlement of the Los Angeles action to make imposition of
monetary damages and disposition of the case by summary
judgment clear judicial error. GA contends that there is also a
triable issue of fact as to the intentions of the settling
parties regarding Scn's being bound by the same silence
conditions. Finally, GA contends that the court below erred in
not considering his defenses and not considering the
miscarriage of justice which would result from its erroneous
judgment.
GA is not an attorney and has no present access to published
California and US laws and appellate opinions. He was
represented by competent counsel throughout most of the
litigation in the court below, and he relies on and
incorporates herein his counsel's memoranda of points and
authorities in his oppositions, with all arguments and
citations therein, to Scn's various summary adjudication
motions (CT 8252-75; 8243-51; 3875-98; 9349-63) and in his
motion for reconsideration and reply. (CT 9046-62; 9509-18)
II. ARMSTRONG'S HISTORY WITH SCIENTOLOGY
Unless otherwise indicated, all facts in this section are from
GA's Separate Statements of Disputed and Undisputed Facts in
Opposition to Summary Adjudication Motions (CT 8276-410;
8411-553) and GA's Evidence in Support of Oppositions to
Summary Adjudication Motions (CT 5871- 8242), all properly
before the trial court. Any document cited to is identified
only in the initial citation. Facts stated in the Separate
Statements are designated (SS (no.), CT (no.). Certain
documents contained in GA's Evidence before the court below,
which are inexplicably missing from the Clerk's Transcript, and
are designated "Missing."
A. Pre-Settlement
GA was inside Scn from 1969 through 1981. From 1971 until he
left the organization he was a member of the Sea Organization,
the highly dedicated upper echelon of Scn, and worked for Scn
founder and director L. Ron Hubbard. GA's last position inside
Scn involved assembling an archive of Hubbard's personal
documents and providing research assistance and copies of the
archive documents to a writer Omar Garrison who had been
contracted to produce Hubbard's biography. Through his study of
the papers in his possession GA came to see that Hubbard and
his organization had continuously lied about Hubbard's past,
credentials and accomplishments. GA attempted to get the
organization to correct the lies, but his efforts were rejected
and he was ordered to a "security check," a Scn interrogation
using its lie detector, also called an E-meter. GA saw that his
trust, which he had placed in Hubbard and Scn for more than 12
years, had no meaning, and that the frauds perpetrated about
Hubbard's life would continue; and as a result GA left the
organization. (Decision, 6/20/84, Scientology v. Armstrong,
hereinafter, "Armstrong I,"LASC No. 420153, CT 5960-70)
Shortly after leaving, GA became the target of Scn's "Fair Game
Doctrine," which permits individuals designated as "enemies,"
also called "Suppressive Persons," hereinafter "SP's," to be
"deprived of property, injured by any means by any
Scientologist... tricked, sued, or lied to or destroyed." (Scn
Policy, CT 6934; SS 1A, CT 8412) GA says that "fair game" is
the name given by Hubbard to his philosophy of opportunistic
hatred directed at anybody he didn't like. GA observes that
over Hubbard's adult life he used hatred and acts which flow
therefrom (lying, cheating, stealing, compromising, entrapping,
obstructing, bullying, blackmailing, destroying) as the
solution to his problems. (GA Declaration 12/25/90, CT 6139,40)
Scn declared GA an SP, published documents accusing him falsely
of crimes and high crimes including promulgating false
information about Hubbard and Scn (SP Declares, CT 7354-7; SS
1A, CT 8416,7), and seized photographs GA possessed. Fearing
that his wife's and his life were in danger GA, who had
extensive knowledge of covert intelligence operations carried
out by Scn against SPs, obtained from Garrison documents GA
believed he would need to defend himself against Scn, and sent
them to attorneys who had agreed to represent him in his
defense. (CT 5972,3; SS 1A, CT 8412) One of the attorneys was
Michael Flynn, whom Scn considered its foremost lawyer enemy.
(CT 5958)
Scn filed its Armstrong I suit against GA in August, 1982 for
conversion, breach of fiduciary duty and invasion of privacy.
The documents GA sent to his attorneys were ordered to be
delivered to the LASC Clerk where they remained until the 1986
settlement. Scn also hired individuals who followed and
surveilled GA, assaulted him, struck him bodily with a car, and
attempted to involve him in a freeway accident. The same
individuals spied in GA's windows, created disturbances and
upset his neighbors. (CT 5973,4; SS 1A, CT 8412) GA filed a
cross-complaint against Scn for, inter alia, fraud and
intentional infliction of emotional distress.
Scn's suit, from which the cross-complaint was severed, was
tried without a jury by Judge Paul G. Breckenridge, Jr. in the
spring of 1984, resulting in a decision for GA. Judge
Breckenridge found that Scn and Mary Sue Hubbard had unclean
hands and that GA's actions in sending the documents to his
attorneys were reasonable and justified because he reasonably
believed he was the target of "fair game." (CT 5948-59; SS 126,
CT 8517) The Judge stated:
"[GA] did what he did, because he believed that his life,
physical and mental well being, as well as that of his wife
were threatened because the organization was aware of what he
knew about the life of LRH (Hubbard), the secret machinations
and financial activities of the Church, and his dedication to
the truth. He believed that the only way he could defend
himself, physically as well as from harassing lawsuits, was to
take from Omar Garrison those materials which would support and
corroborate everything he had been saying about LRH and the
Church, or refute the allegations made against him in the [SP]
Declare. He believed that the only way he could be sure that
the documents would remain secure for his future use was to
send them to his attorneys, and that to protect himself, he had
to go public so as to minimize the risk that LRH, the Church or
any of their agents would do him physical harm." (CT 5952)
Judge Breckenridge condemned Scn's "fair game" policy:
"In addition to violating and abusing its own members civil
rights, the organization over the years with its "Fair Game"
doctrine has harassed and abused those persons not in the
Church whom it perceives as enemies. The organization clearly
is schizophrenic and paranoid, and this bizarre combination
seems to be a reflection of its founder LRH. The evidence
portrays a man who has been virtually a pathological liar when
it comes to his history, background and achievements. The
writings and documents in evidence additionally reflect his
egoism, greed, avarice, lust for power, and vindictiveness and
aggressiveness against persons perceived by him to be disloyal
or hostile." (CT 5955,6) Judge Breckenridge condemned Scn's
abuse of its participants' auditing or psychotherapy records:
"culling supposedly confidential "P.C. folders or files" to
obtain information for purposes of intimidation and/or
harassment is repugnant and outrageous." (CT 5958,9) Judge
Breckenridge commented on GA's credibility:
"the court finds the testimony of [GA and 7 other named defense
witnesses] to be credible, extremely persuasive, and the
defense of privilege or justification established and
corroborated by this evidence. [ ] In all critical and
important matters, their testimony was precise, accurate and
rang true." (CT 5954) Judge Breckenridge also stated that:
"[GA] and his counsel are free to speak or communicate upon any
of [GA's} recollections or his life as a Scientologist or the
contents of any exhibit received in evidence or marked for
identification and not specifically ordered sealed." (CT 5950)
The decision was entered as a Judgment and Scn appealed.
Following the 1984 decision and until the 1986 settlement Scn
continued its fair game attacks on GA which included at least
these acts: attempted entrapment; illegal videotaping; filing
false criminal charges against him with the Los Angeles
District Attorney; filing false criminal charges against him
with the Boston office of the FBI; filing false declarations to
bring contempt of court proceedings against him on three
occasions; obtaining perjured affidavits from English private
investigators who had harassed him in London, England in 1984,
accusing him of distributing "sealed" documents; international
dissemination of Scientology publications falsely accusing him
of, inter alia, crimes, including crimes against humanity;
culling and disseminating information from his supposedly
confidential auditing or psychotherapy file. (SS 1A, CT 8413-8;
GA Declaration, 3/16/92, CT 6910-1; GA Declaration, 9/15/95, CT
5897-9; LAPD Officer Rodriguez letter re eavesdropping,
11/7/84, CT 6941; LAPD Chief Gates Announcement, 4/23/85, CT
6942; LA DA letter, 4/25/86, CT 6943-55; "Freedom," 1985, CT
7060-71; Scn Directive, 9/20/84, CT 7119,20); GA Declaration,
11/1/86, CT 6411-47. Scn calls falsehoods used to destroy
reputation or public belief in a person, "black propaganda," or
"black PR." (SS 1A, CT 8413; Scn policies 11/21/72 and 11/5/71,
CT 7376-87) Scn also calls black PR "dead agent," and documents
used for black PR purposes "dead agent documents" or "DA docs."
See also Scn's Request for Judicial Notice, GA Declaration,
2/22/94, (CT 5580-93; GA Declaration, 2/20/94, CT 5624-39; SS
1A)
GA's attorney Michael Flynn was the target of Scientology's
fair game from 1979 through the time of the signing of the
settlement agreements. Fair game acts against Flynn included
infiltrating his office, paying known criminals to testify
falsely against him, suing him and his office some fifteen
times, framing him with the forgery of a $2,000,000 check, and
an international black PR campaign. (SS 1B, CT 8418-20; GA
Declaration, 9/9/95, CT 8245; CT 6125; GA Declaration, 1/13/94,
CT 6967,8; "Juggernaut" Intelligence Eval, 9/13/81, CT
6310-6324; Jonathan Atack Declaration, 4/9/95, CT 7964;
Settlement Agreement between Flynn and clients 6938,9 (signed
version at CT 5483); CT 5899,900).
B. The Settlement
At the beginning of December, 1986 an agreement was reached
between Flynn and Scn to settle the cases in which he was
involved as counsel or party. GA was then working for Flynn in
his Boston office, was aware that settlement talks were
occurring, and had an agreement with Flynn on a monetary amount
to settle his cross- complaint, then set for trial in March,
1987. GA was flown to Los Angeles, as were several other
clients with claims against the organization, to participate in
a global settlement. Only after his arrival in LA was he shown
a copy of the SA and other documents which he was expected to
sign. (CT 6911,2; 6125,6; 5900,1)
Upon reading the SA, GA was shocked and heartsick. He told
Flynn that the condition of strict confidentiality and silence
with respect to his experiences with Scn, since they involved
over seventeen years of his life, was impossible. GA told Flynn
that the liquidated damages provision was outrageous; that
pursuant to the settlement agreement he would have to pay
$50,000.00 if he told a doctor or psychologist about his
experiences from those years, or if he put on a resume what
positions he had held during his Scn years. He told Flynn that
the requirements of non-amenability to service of process and
non-cooperation with persons or organizations adverse to the
organization were obstructive of justice. He told Flynn that
agreeing to leave Scn's appeal of the Armstrong I decision and
not respond to any subsequent appeals was unfair to the courts
and all the people who had been helped by the decision. He told
Flynn that an affidavit the organization was demanding that he
sign along with the SA was false. GA told Flynn that he was
being asked to betray everything and everyone he had fought for
against Scn injustice. (CT 6911-2; 6126,7; 5901)
In answer to GA's objections Flynn said that the silence and
liquidated damages clauses, and anything which called for
obstruction of justice were "not worth the paper they're
printed on." Flynn told GA this a number of times and in a
number of ways; "You can't contract away your Constitutional
rights; "the conditions are unenforceable." Flynn said that he
had advised Scn attorneys that those conditions in the SA were
not worth the paper they were printed on, but that they,
nevertheless, insisted on their inclusion in the SA and would
not agree to any changes. Flynn said that Scn's attorneys had
promised that the affidavit, which all the settling litigants
were signing, would only be used by Scn if GA began attacking
it after the settlement; and if GA did not attack Scn the
affidavit "would never see the light of day." Flynn pointed out
to GA the clauses concerning his release of all claims against
Scn to date and its release of all claims against GA to date
and said that they were the essential elements of the
settlement and were what Scn was paying for. (CT 6912,3; 6127;
5901; SS 116; CT 8509)
Flynn told GA that everyone was sick of the litigation and
wanted to get on with their lives. Flynn said that he was sick
of the litigation, the threats to him and his family and wanted
out. He said that as a part of the settlement he and all
co-counsels had agreed to not become involved in
organization-related litigation in the future. He expressed a
deep concern that the courts in this country cannot deal with
Scn and its lawyers and their contemptuous abuse of the justice
system. He told GA that if he didn't sign the documents all he
had to look forward to was more years of harassment and misery.
Another client in the room with Flynn and GA during this
discussion yelled at GA, accusing him of killing the settlement
for everyone, and saying that everyone else had signed or would
sign, and everyone else wanted the settlement. Flynn said that
Scn would only settle with everyone together; otherwise there
would be no settlement. (SS 1C, 1D, 1E, CT 8420,1; CT 6913;
6127,8; 5902) Flynn said that he had to get out of the fight,
that he had done enough, that he had paid his dues, that
Scientology had ruined his marriage, his wife's health and his
life. (CT 5902)
Flynn told GA that a major reason for the settlement's global
form was to give Scn the opportunity to change its combative
attitude and behavior by removing the threat he and his clients
represented to it. Flynn said that Scn's willingness to pay
substantial sums of money, after its agents and attorneys had
sworn for years to pay his clients "not one thin dime" was
evidence of a philosophic shift within the organization. GA
told Flynn that the SA evidenced the unchanged philosophy of
fair game, and that if Scn did not use the opportunity to
transform its antisocial nature and actions toward its members,
critics and society he would, a few years hence, because of his
knowledge of Scn fraud and fair game, be again embroiled in its
litigation and targeted for extralegal attacks. (SS 98, CT
8487; CT 6913,4; 6128; 5902)
GA had been positioned as a deal-breaker, with all the other
settling parties depending on his signing in order to have the
fair game cease. He reasoned that if he signed, his
co-litigants, some of whom he knew to be in financial trouble,
would be happy, the stress they felt would be reduced and they
could get on with their lives. Flynn and the other lawyers
would be happy and the threat to them and their families would
be removed. Scn would have the opportunity they said they
desired to clean up their act and start anew. GA would have the
opportunity to get on with his life and the financial
wherewithal to do so. He was also not unhappy to at that time
not have to testify in all the litigation nor to respond to the
media's frequent questions. He knew that if Scn continued its
fair game practices toward him he would be left to defend
himself; so, armed with Flynn's advice that the SA conditions
he found so offensive were not worth the paper they were
printed on, and the knowledge that Scn's attorneys were also
aware of that legal opinion, GA put on a happy face and the
following day went through a videotaped signing, which he saw
as a charade. (CT 6914,5; 6129,30; 5902)
C. From Settlement to First Response
It was GA's understanding and intention at the time of the
settlement that he would honor the silence and confidentiality
conditions of the SA, and that Scn had agreed to do likewise.
(CT 6916) GA delivered to Scn the evidence he had accumulated
in his case, released to Scn the documents held by the LASC,
and agreed to the sealing of the Court file. (CT 123,4; 5925;
5940) After the settlement, GA got on with his life, did many
usual or unusual things including pursuing religious studies,
left Scn alone, and did not speak publicly about Scn or his
experiences. (CT 6997-7000; 5902,3)
Scn, however, could not leave GA alone but continued to
disseminate falsehoods about him publicly, and file false
statements about him in legal proceedings. He perceived that he
was still fair game, yet for 3 years, although saddened by the
attacks, he did nothing in response. These fair game attacks
after December, 1986, but prior to any acts by GA which Scn
claims are breaches of the SA, include at least: delivering DA
Documents (black PR) on him to various media representatives;
publishing Scn's own false descriptions of his experiences;
disseminating to the media an edited, misleading and defamatory
version of the secret and illegal videotape its agents made of
him; disseminating his own documents which had been sealed on
Scn's insistence in Armstrong I; filing affidavits about him in
a civil lawsuit in England (Scientology v. Miller & Penguin
Books, High Court of Justice, London, England, Case No. 1987 C
6140) which falsely charged, inter alia, that GA violated court
orders and was an admitted agent provocateur of the US
Government; threatening him with being sued if he even talked
to attorneys in the Miller case in which the false charges
about him were being made; threatening to expose a private
writing if he did not assist Scn's effort to prevent a civil
litigant, Bent Corydon, from obtaining access to the Armstrong
I LASC case file; threatening him with being sued if he
testified about his Scientology experiences even pursuant to a
subpoena. (SS 105A-H, CT 8491-3; CT 6916-9; 5931-46; 5903,4;
Excerpts DA document, CT 6007- 10; videocassette face, Missing;
Affidavits of Kenneth Long, CT 6011-69 (first page missing); CT
6072-102; Affidavit of Sheila Chaleff, CT 6060,1; GA 1977,8
wage and tax statement, CT 6028; GA Affidavit, CT 6029;
Nondisclosure and Release Bond, CT 6030; GA Deposition
Transcript, CT 6031-43; GA Affidavit, CT 6087-102; CT 5926-8;
5943,4; 6919; 5970; 5904; 6135,6; GA Declaration, CT 6219,30).
In 1987 Scn also filed in one of its cases with the IRS the
affidavit it had required GA sign as part of the settlement, in
direct violation of the promise it made through Flynn to only
use the document if GA attacked it. (CT 6138,9; IRS Final
Adverse Ruling re Church of Spiritual Technology, 7/8/88, CT
6241-3; CT 5903)
In October, 1989 GA was served with a deposition subpoena by
plaintiff in the case of Bent Corydon v. Scientology, LASC No.
C694401. (CT 5925; Subpoena, CT 5990-4). Shortly afterward he
was called by Scn attorney Lawrence Heller, with whom he had
three telephone conversations over the next month. In these
conversations Heller threatened that GA could be sued if he
testified, even though he had been subpoenaed, and that he
should refuse to answer the deposition questions put to him by
Corydon's attorney. Heller offered to have Scn pay for a lawyer
to represent GA at the deposition. Heller requested GA to
execute a declaration to assist Scn in preventing GA's
deposition from going forward, and threatened that GA would
have hassles if the deposition did go forward. Heller also
stated to GA that he should honor the SA because Scn had
honored it. Heller said that Scn had signed a non- disclosure
agreement as well and had lived up to it. GA told Heller that
Scn had filed declarations about him, put out dead agent
documents on him, and used the illegal videotape. GA made notes
of the conversations with Heller and recorded his side of the
final conversation. (CT 5925-8; 5943,4; Phone notes, CT
6227-37; Transcript, CT 6238,9; CT 5904; 6135-7; CT 6919; CT
6970; CT 5904; SS 105H, 8493,4; SS 103, CT 8490)
On November 1, 1990 Scn filed a motion in Corydon to delay or
prevent the taking of certain third party depositions, one of
whom was GA. (CT 5995-6006) The motion and supporting
declaration were signed by attorney Heller who stated that he
was personally involved in the settlements. (Heller
Declaration, CT 6002) Heller stated in the motion:
"One of the key ingredients to completing these settlements,
*insisted upon by all parties involved,* was strict
confidentiality respecting: (1) the Scientology parishioner or
staff member's experiences with the Church of Scientology; (2)
any knowledge possessed by the Scientology entities concerning
those staff members orparishioners." (Underline in orig.) (SS
102, CT 8489,90; CT 5998) Heller stated in his declaration:
"The non-disclosure obligations were a key part of the
settlement agreements insisted upon by all parties involved."
(SS 101, CT 8488,9; CT 6003) "The contractual non-disclosure
provisions were the one issue which was not debated by any of
the parties or attorneys involved." (CT 6003) As a result of
Heller's telephoned threats, which deeply troubled him, GA
concluded that the SA and Scn's efforts to enforce it were
acting to obstruct justice, and if he allowed himself to be
intimidated by the threats he would be abetting that
obstruction. He concluded that he had a right, and even a duty,
regardless of whatever the SA said, to not obstruct justice. He
concluded that he could not avoid a confrontation with Scn, and
only then responded to defend himself and to correct what he
perceived were the injustices created by the SA and Scn's
misuse and violations thereof. (CT 5928; 5930; 5940; 5945;
6919; 6970; 5904) Scn was given a period of years to cease fair
game. GA and the other settling litigants had honored the
agreements, removed themselves as threats and allowed Scn the
opportunity to change its combative attitude and behavior. GA
concluded that disclosure of Scn's attitude and behavior would
relieve and ultimately eliminate fair game. (CT 6141,2)
When he researched his rights, responsibilities and how to
proceed in response to Scn's threats and fair game, GA learned
that through the intervening five years Scientology had been
able to maintain its appeal from the 1984 Armstrong I decision,
Scientology v. Armstrong, No. B025920, Second District,
Division Three. GA petitioned for permission to respond in the
appeal. The Court granted his petition, and also unsealed the
SA, which he had filed as a sealed exhibit to his petition. (SS
106, CT 8494,5; CT 6919,20; 5904; Petition, CT 6113-8) At the
same time GA also petitioned Division Four of the Second
District for permission to respond in another appeal, Corydon
v. Scientology, No. B038975, that Scn had taken from a 1988
LASC order granting Corydon's motion to unseal the Armstrong I
court file. (Petition, CT 6119-22) Scn opposed GA's petition
and he filed a declaration dated March 15, 1990, (CT 5925-6123)
detailing many of the organization's post settlement threats
and attacks and stating his position regarding the
unenforceability of several conditions of the SA. (CT 6970,1)
The Division Four Court granted GA's petition, and he filed a
respondent's brief in both appeals, which were ultimately
consolidated.
On July 29, 1991 the Court of Appeal affirmed the 1984 decision
and judgment in Armstrong I (Scientology v. Armstrong, 232
Cal.App.3d 1060, 283 Cal. Rptr. 917.) The Court of Appeal
stated: "These [Suppressive Person] "declares" subjected
Armstrong to the "Fair Game Doctrine" of the Church which
permits a suppressive person to be "tricked, sued or lied to or
destroyed...[or] deprived of property or injured by any means
by any Scientologist." (Id. at 1067; 920) (SS 127, CT 8517,8)
In September, 1991 Scn filed a motion in the Court of Appeal to
seal the record on appeal, (CT 6521-88) based in part on the
assertion that "an integral, indispensable part of that
[Armstrong I] settlement was the sealing of the court's
records." (CT 6529) GA filed an opposition to the motion to
seal (CT 6589-902) in which he stated that "[t]he superior
rights regarding the materials plaintiffs want sealed are those
of defendant whose safety from attack rests in part on the
availability of information and the openness of court files,
and those of the public who have aConstitutional right to
precisely the kind of information these materials contain." (CT
6592). The Court of Appeal denied Scn's motion to seal the
record. (CT 6903)
D. Fair Game After Armstrong's First Response
From the time GA petitioned the Court of Appeal, Scn has
continued to fair game him without letup. These attacks
include, but are not limited to: (SS 107A-L, CT 8495-503; CT
5913-4)
+ Disseminating to the media dead agent packs of black PR on
him which provide Scn's false version of his experiences and
include at least the following lies:
- he testified falsely at trial in 1984 (Scn DA Docs re GA and
Judge Breckenridge, CT 7527; 7533; 7600; 7605)
- he "has adopted a degraded life-style (CT 7528; 7600)
- he was "apparently naked" in a newspaper photo (CT 7528)
- he is connected to Cult Awareness Network, hereinafter "CAN,"
described by Scn as "a referral agency for those who engage in
the illegal activity of kidnapping adults for the purpose of
forcibly persuading them to abandon their religious beliefs"
(CT 7528)
- his defense at his 1984 trial "was a sham and a fraud" (CT
7528,9; 7614)
- the LAPD "authorized" [Scn's] videotapes of GA (CT 7529; 7615)
- GA wanted to plant fabricated documents in Scientology files
and tell the IRS to conduct a raid (CT 7529-31; 7609; 7615,6)
- he wanted to plunder Scientology for his own financial gain
(CT 7530)
- he never intended to stick to the terms of the SA (CT 7532; 7617)
- his motives in writing attorney Eric Lieberman regarding the
case of Malcolm Nothling v. Scn, in South Africa were money and
power (CT 7533; GA letter, 6/21/91, CT 7482-98)
- he was incompetent as a researcher on the Hubbard biography
project (CT 7533; 7622)
- he wanted to orchestrate a coup in which members of the US
Government would wrest control of Scn (CT 7531; 7616)
+ Using transcripts and other documents to attack him which Scn
itself has insisted be sealed (CT 7537-97; 7533; 7534; 7610;
7616; 7623)
+ Publishing black PR on him without stating its source which
provide Scn's false version of his experiences and include at
least these false and/or perverted charges:
- he was formerly a heavy drug user (Scn publication "FACTNet,"
CT 7514)
- he was paid to provide homosexual sex (CT 7514)
- a Marin Independent Journal photo showed him in the nude
holding the globe (CT 7514; Marin IJ article 11/11/92, CT 7184)
- he is a psychotic and lives in a delusory world (Scn
publication "FACTNet," CT 7520)
+ Scn director Michael Rinder wrote a letter to the Mirror
Newspaper Group in London, United Kingdom in which he stated
that GA "has now distinguished himself by posing naked in a
newspaper" (Rinder letter, 5/9/94, CT 7524)
+ Scn President Heber Jentzsch wrote a letter, sent with
documents about GA, to E! Television in which he stated that GA
"has no relation to art or artists...except, of course, for the
photo of himself, nude, hugging the globe (Jentzsch letter
8/5/93, CT 7693)
+ Scn agent Eugene Ingram spread the lie that GA has AIDS (CT
5916; 8226,7; Videotape taken by Ingram of GA at November, 1992
CAN Convention, CT 8242; Notice of Lodging Videotape, CT
8676,7))
+ Scn agent Garry Scarff was briefed by Ingram to expand on the
[invented] "fuck buddy" relationship between GA and attorney
Ford Greene (Scarff declaration, 2/11/93, CT 7510)
+ Filing declarations and other documents in various courts
containing false charges, and then using the SA to prevent GA
from responding or to punish him for responding (Declaration of
David Miscavige, 2/8/94, filed in Scientology v. Fishman, USDC
Cen. Dist. Cal. No. 91-6426 HLH, CT 7655,6; CT 5580-93;
5624-39; Scn's Second Amended Complaint herein, CT 5356,7;
Scn's motion for summary adjudication of 13th, 16th, 17th &
19th causes of action, 3/17/95, CT 5312,3; Scn's separate
statement in support of motion for summary adjudication,
2/23/95, CT 4524.44 CT 9789) (Scn's Supp. Memo. in Support of
Motion to Dismiss, 8/26/91, filed in Aznaran v. Scientology,
USDC Cen. Dist. Cal. No. 88-1786 JMI, CT 6682-6; Declaration of
Sam Brown, 8/26/91, CT 6714,5; Declaration of Lynn Farny,
8/26/91, CT 6725-7; Reply in Support of Motion for Summary
Judgment, 8/26/91, filed in Aznaran, CT 6797-9; GA Declaration,
9/3/91, CT 6802-12; CT 4524.36; CT; CT 9787)
+ Attempting to have Armstrong jailed for contempt of court
based on mischaracterization of his actions and manufactured
actions (Scn's Ex Parte Application herein for OSC re Contempt,
12/31/92, CT 7121-84; GA Declaration, CT 7406,7; Scn's
evidence, GA declaration, 2/2/93, CT 5016-44; Scn's Ex Parte
Application for OSC re Contempt, 7/26/93, CT 1628-739; Order of
Judge Diane Wayne herein discharging OSC, 7/29/94, CT 7499-501)
+ Providing documentation to Premiere magazine about GA,
including partial transcripts of the illegal Ingram videotaping
of him and then using the settlement agreement to punish GA for
responding (Article "Catch a Rising Star, 9/93, CT 7672; GA
letter, 10/11/93, CT 4811-4; CT 4524.48; Scn's motion for
summary adjudication of 20th cause of action, CT 4524.11; CT
9790)
+ Providing a press release to the Marin Independent Journal
concerning the Court's 1/27/95 ruling, which discusses GA's Scn
experiences and contains the false statement that he "promised
[in the SA] to refrain from spreading falsehoods about [Scn];"
and then using the settlement agreement to punish GA for
responding; (Scn press release from Nancy O'Meara and Andrew H.
Wilson, 1/95, CT 7692; GA letter to O'Meara, CT 5056; CT
4524.17,8
+ Secretly videotaping him (GA letters, 8/21/91, 8/22/91, CT
6834-9; CT 6714) E. Armstrong's Actions
In August, 1990, GA was in a new home he had purchased in Marin
County, and living his life. (CT 6998-7000) Although still a
troubled target of fair game, he considered himself free of the
SA's restrictions, not only because of what Flynn had told him
at the time of the settlement, but because of Scn's post
settlement attacks and the SA's unenforceability due to its
obstruction of justice. (CT 6972; 5928; 5930; 5940; 5945) Then
the Iraqi army invaded Kuwait, and his life was again forever
changed. Moved by media reports of the invasion, the global
tension, and the daily events of Desert Shield, GA prayed for
guidance concerning humanity's condition, and specifically the
then developing Middle East crisis. (CT 6988; 5905,6) GA
received a message, which he believed came from God, saying:
"Keep nothing. Give what you have to the poor. Take only what
you need." (Message, CT 7204) The idea of renunciation of
worldly wealth, although coming at that time as a surprise, and
unclear as to the details for its accomplishment, was not
altogether illogical to GA because he had long recognized that
money, greed and power motivated much of the madness that made
human beings war against each other. (CT 6988) He had already
recognized the essential valuelessness of money in an essay he
had written in 1989. (CT 7039-41) GA also recognized that Scn's
leaders were motivated by the same forces of money, greed and
power that made men war against each other and that his
renunciation was spiritually directed at bringing peace for Scn
no less than the rest of the world. (CT 7002) GA gave away his
assets, including his ownership of The Gerald Armstrong
Corporation, hereinafter "TGAC," his philosophic services
company; his ownership of his home; forgave debts owed him; and
determined to go wherever his help was asked for. (CT 7002;
5906) Over the next few months GA gave himself to resolving the
Middle East crisis (CT 7095-103) but he was not successful and
a quarter million people were killed.
In June, 1991 GA received a call from Malcolm Nothing, asking
him to testify in his case against Scn in South Africa.
Nothling said he had not been able to find anyone else in the
world willing to testify about Scn's policies and practices.
After listening to Nothling's story, and because Nothling had
asked, GA agreed to help him. GA said he first wanted to see if
the situation could be resolved peacefully, and he wrote a
letter to attorney Lieberman, who represented Scn in the
Armstrong I appeal. (CT 7482-98) Scn rejected GA's peace
proposal, so he flew to South Africa and helped Nothling, but
did not testify as the trial was postponed. (CT 7004; 5906) (SS
21-2, CT 8438,9)
Before leaving for South Africa, GA received a call from
attorney Joseph Yanny, asking for GA's help in the Aznaran
case. Yanny told GA that he had come into the case after the
Aznarans had been tricked by Scn into firing their attorney
Ford Greene. GA traveled to Los Angeles and wrote a declaration
concerning the unjust effect of the 1986 "global settlement" on
litigants against Scn and in the legal community, and helped
Yanny with moral support and matters of the soul. (CT 7005;
5906)
As GA was leaving for South Africa he learned from Yanny that
Scn had sued Yanny for allegedly inducing GA to breach the SA.
In response, GA wrote a declaration in which he stated his
philosophy regarding his calling to help. (GA Declaration,
7/19/91, CT 6740-9) "But more than a desire to protect myself
or right the organization's unjust acts towards me, however, I
helped Mr. Yanny for the simple reason that he asked. I will do
the same for anyone....It is not only the right of all men to
respond to requests for help, it is our essence. If I was
induced, therefore, to help Mr. Yanny, or anyone else, it was
our Creator Who induced me." (CT 6747)
In its lawsuit, Scientology v, Yanny, LASC No. BC 033035, Scn
claimed that Yanny, who had formerly represented Scn, was
representing GA in Scn-related litigation. Yanny had never
represented GA in any litigation and GA had never consulted
Yanny about his Scn legal battle. Scn's complaint was
ultimately dismissed. (CT 7005,6) Scn considers GA's
declaration, provided by him in a case in which an attorney was
falsely sued for representing him, a SA violation. (CT 4524.8;
4524.37,8; 9787,8) (SS 17-20, CT 8436-8)
Upon his return to the US GA received the complaint Scn filed
against 17 IRS agents, Scientology v. Xanthos, et al., USDC
Cen. Dist. Cal. No. 91-4301-SVW, which contained the allegation
that: "The infiltration of the Church was planned as an
undercover operation by the LA CID (Criminal Investigation
Division of the IRS) along with former Church member Gerald
Armstrong, who planned to seed church files with forged
documents which the IRS could seize in a raid. The CID actually
planned to assist Armstrong in taking over the Church of
Scientology hierarchy which would then turn over all Church
documents to the IRS for their investigation." (Xanthos,
complaint, 8/12/91, CT 6636)
Although GA had seen this attack line in many forms and venues
since 1985, this 1991 charge signaled to him that the
organization was not about to peacefully end its legal and
psychological war in which he knew he was one of its most hated
enemies. (CT 7007,8)
Within a few days GA went by Ford Greene's office, which was
near his residence in San Anselmo in Marin County. Greene, who
was one of few attorneys willing to take cases on behalf of
Scn's victims, had been reinstated as counsel in Aznaran. GA
saw that Greene was facing several summary judgment and other
motions Scn had filed in the case when the Aznarans were
lawyerless, had no time, staff or other resources, and truly
needed GA's help. (CT 7006,7; 6811,2) GA worked for Greene as
his sole office assistant from August, 1991 until, except for a
three week period, December, 1995. (CT 5907) Throughout those
years Scn tried continuously to prevent GA from working with
Greene. (See, e.g., CT 6804-12; 7508; 7510,1; 7131-3; Complaint
herein, CT 0009-10; Bartilson Declaration, 12/31/92, CT
7143-6)(SS 12-16, CT 8432-6)
F. Scientology's Enforcement Litigation
In October, 1991 Scn filed a motion in Armstrong I to enforce
the SA. GA opposed the motion and on December 23, 1991, after a
hearing, LASC Judge Bruce R. Geernaert denied it. Judge
Geernaert stated regarding the SA:
"So my belief is Judge Breckenridge, being a very careful
judge....if he had been presented that whole agreement and if
he had been asked to order its performance, he would have dug
his feet in because that is one .... I'll say one of the most
ambiguous, one-sided agreements I have ever read. And I would
not have ordered the enforcement of hardly any of the terms if
I had been asked to, even on the threat that, okay the case is
not settled. I know we like to settle cases. But we don't like
to settle cases and, in effect, prostrate the court system into
making an order which is not fair or in the public interest."
(SS 120, CT 8510,1; Transcript of 12/23/91 hearing, CT 7700)
On February 4, 1992, Scn filed its verified complaint for
damages and for preliminary and permanent injunctive relief for
breach of contract, Marin SC No. 152229, hereinafter "Armstrong
II." (CT 0001-12)On February 7, 1992 Scn filed a motion for
preliminary injunction. (CT 0073-4). GA filed a motion to
transfer the case to the LASC, which was granted March 20,
1992. (CT 75-80. The case was transferred and given LASC No. BC
052395. (CT 0081)
On April 14, 1992 Scn filed a renewed motion for preliminary
injunction (CT 0082-4), a hearing on which was held May 26 and
27 before LASC Judge Ronald Sohigian, who on May 28, issued an
order granting in part Scn's motion. He prohibited GA from:
"Voluntarily assisting any person (not a governmental organ or
entity) intending to make, intending to press, intending to
arbitrate, or intending to litigate a claim against the persons
referred to in sec. 1 of the [SA] regarding such claim or
regarding pressing, arbitrating, or litigating it. Voluntarily
assisting any person (not a governmental organ or entity)
arbitrating, or litigating a claim against the persons referred
to in sec. 1 of the [SA]. "The Court does not intend by the
foregoing to prohibit [GA] from (a) being reasonably available
for the service of subpoenas on him; (b) accepting service of
subpoenas on him without physical resistance, obstructive
tactics, or flight; (c) testifying fully and fairly in response
to questions in either deposition, at trial, or in other legal
proceedings; (d) properly reporting or disclosing to
authorities criminal conduct of the persons referred to in sec.
1 of the [SA]; or (e) engaging in gainful employment rendering
clerical or paralegal services not contrary to the terms and
conditions of this order. The application for preliminary
injunction is otherwise denied." (Order 5/28/92, CT 0091-4) GA
appealed the grant of the preliminary injunction.
On June 4, 1992 Scn filed an amended verified complaint for
damages and for preliminary and permanent injunctive relief for
breach of contract. (CT 0095-115) On June 23, 1992 Scn filed an
amendment to complaint, adding TGAC as Doe 1. (CT 0159) On July
22, 1992 GA filed his answer and a cross-complaint for
declaratory relief, abuse of process, and breach of contract,
(CT 0160-254). On October 8, 1992 he filed an amended answer
and an amended cross- complaint. (CT 0255-333)
On December 31, 1992 Scn filed an application for an OSC why GA
should not be held in contempt. (CT 0428-639) The OSC was
signed by Judge Sohigian. (CT 640,1) The charged contempts were
for a letter GA wrote to Scn leader David Miscavige (CT 0436,7;
GA letter, 12/22/92, CT 0525-34) a discussion with the
Aznarans; signing 2 proofs of service in their case (CT 0438,9;
Proofs of service, CT 0567-70); "assisting" Greene clients
Tillie Good, Denise Cantin and Ed Roberts (CT 0439-40); and
making a videotape discussing his Scn experiences. (CT 0440-2)
GA filed his opposition to the OSC, and various supporting
declarations and other documents. Scn filed a motion in limine
to exclude Scn's prior acts, and various other documents
relating to the OSC. (CT 0644- 1268) On March 5, 1993 a hearing
was held before LASC Judge Diane Wayne, who ruled that because
the 5/28/92 order was on appeal, she would not proceed. Judge
Wayne stated during the hearing:
"I have some serious questions about the validity of the
order." (Transcript, CT 1410) "I'll tell you, when I first
looked at this order, I thought the order was clear until I
read part of the transcript. Then it became unclear to me." (CT
1414)
On March 17, 1993 GA filed an application to stay proceedings
(CT 1269-86) based on his appeal of the 5/28/92 order, which
Scn opposed. (CT 1297-394) On March 23, 1993 LASC Judge David
A. Horowitz granted the motion. (Order, CT 1596)
On July 26, 1993 Scn filed a second application for an OSC re
contempt. (CT 1628-739) The charged contempt was for providing
a declaration of Lawrence Wollersheim in the case of
Scientology v. Wollersheim, LASC No. BC 074815. (CT 1629;
1634,5; GA declaration, 6/4/93, CT 1686-90) On July 26, 1993 GA
filed his opposition to the application. (CT 1740-98) The OSC
was signed by Judge Wayne. (CT 1601,2) On September 7, 1993 GA
filed an opposition to the OSC (CT 1800-98) and on September
10, Scn filed its response. (CT 1905- 1932)
On July 8, 1993 Scn filed a verified complaint for damages and
for preliminary and permanent injunctive relief for breach of
contract, LASC No. BC 084462, hereinafter "Armstrong III." All
the documents filed in this case are missing. On August 27,
1993 the LASC ruled that Armstrong II and Armstrong III were
related cases. (CT 1799) On September 14, 1993, GA filed a
special motion to strike the Armstrong III complaint pursuant
to the SLAPP Statute. On September 29 Scn filed an opposition,
and on October 4, GA filed a reply. On October 6 Judge Horowitz
entered an order consolidating Armstrong III with II and
staying the action. On February 10, 1994 Scn filed a motion to
vacate the stay, GA filed an opposition, and on March 14 Judge
Horowitz entered an order denying the motion.
On July 23, 1993 Scn filed a verified complaint to set aside
fraudulent transfers and for damages; conspiracy, Marin SC No.
157680, hereinafter "Armstrong IV," against GA, TGAC and
Michael Walton. (CT 3071-86) Walton was GA's friend and part
owner of the Marin house to whom GA had transferred his
ownership in August, 1990 at the time of his epiphanic
renunciation. Scn charged that GA had given Walton the house to
make himself judgment proof in order to prevent Scn from
collecting on liquidated damages for GA's planned breaches of
the SA. That case, now part of the consolidated case with the
same number, Marin SC No. 157680, was not disposed of by
summary judgment, and remains to be tried. Walton filed an
answer in Armstrong IV on November, 29, 1993 (CT 3102-7), and
GA and TGAC filed answers on November 30. (CT 3108-3155)
On April 5, 1994 Scn filed in Armstrong II its verified second
amended complaint. (CT 1933-2037)
On May 16, 1994 the Court of Appeal, Second District, Division
Four issued its opinion affirming the 5/28/92 preliminary
injunction order. (CT 2040-50) The Court stated:
"We find no abuse of discretion. We cannot say that the trial
court erred as a matter of law in weighing the hardships or in
determining there is a reasonable probability Church would
ultimately prevail to the limited extent reflected by the terms
of the preliminary injunction." (CT 2048) "This appeal is only
from the granting of a preliminary injunction which expressly
did not decide the ultimate merits. As limited by the trial
court here, the preliminary injunction merely restrains, for
the time being, Armstrong's voluntary intermeddling in other
litigation against Church, in violation of his own agreement."
(CT 2049) On June 15, 1994 Scn filed a motion for summary
adjudication of the second and third causes of action of the
cross- complaint. (CT 2080-249) The second cause of action is
abuse of process; the third is breach of contract. On July 20
GA filed his opposition, (CT 2251-533) and on July 26 Scn filed
its reply. (CT 2589-689) On August 16 Judge Horowitz granted
Scn's motion for summary adjudication, ruling as to breach of
contract that the SA did not prohibit Scn from referring to GA
in the media, legal proceedings or declarations. (CT 3019-21)
A hearing was held on Scn's orders to show cause re contempt
before Judge Diane Wayne on July 28, 1994. On July 29 she
issued an order discharging the OSC and GA, ruling that GA's
"assistance" in Ford Greene's office was permitted
"ministerial" conduct, that providing Wollersheim with a
declaration was permissible as Wollersheim was a defendant in
the relevant litigation, and that GA's 12/22/92 letter did not
assist in litigation. (CT 2690-2)
On September 1, 1994, pursuant to stipulation, Armstrong II was
transferred to Marin County. (CT 3023-5) Pursuant to a joint
application for consolidation filed September 12, 1994 (CT
3156-69) Marin SC Judge Gary W. Thomas consolidated Armstrong
II, III and IV into one case, Marin SC No. 157680. Scn filed an
amendment substituting Solina Behbehani-Walton, Michael
Walton's wife, as Doe 2. (CT 3170,1) On January 5, 1995 Mrs.
Walton filed her answer. (CT 3667-71)
On November 16, 1994 Scn filed its motion for summary
adjudication of the fourth, sixth and eleventh causes of action
of plaintiff's second amended complaint. (CT 3172-3665) On
January 13 GA filed his opposition. (CT 3875-4076; 4097-4224)
The fourth cause of action concerns GA's providing the Aznarans
with a declaration (CT 3184,5); the sixth concerns GA's giving
an interview to CNN TV and American Lawyer magazine; and the
eleventh concerns GA's providing a declaration to defendants in
Scientology v Scott, USDC No. CV 85-711 JMI and 85-7197 JMI (CT
3185,6). On January 19 GA filed a supplemental declaration,
along with evidence (CT 7400- 504), providing his conviction
that what Scn was seeking to prevent him from saying was
religious expression which was above legal prohibition. (CT
7400-7) Judge Thomas struck the declaration as it was filed
late. On January 20 Scn filed its reply. (CT 4077-96) A hearing
was held January 27. (Reporter's Transcript on Appeal,
hereinafter "RT," V. 1, 1-15)
Judge Thomas granted Scn's summary adjudication motion as to
the fourth and sixth causes of action and denied it as to the
eleventh. In his order he stated in part:
"As to all causes of action, defendant fails to raise a triable
issue as to whether the liquidated damages provision is
invalid. [] The law now presumes that liquidated damages
provisions are "valid unless the party seeking to invalidate
the provision establishes that the provision was unreasonable
under the circumstances existing at the time the contract was
made." (Civ. Code, Sec. 1671, Subd (b).) Defendant's evidence
is not sufficient to raise a triable issue in that regard.
Although defendant states in his declaration that he was not
involved in negotiating the provision [] he goes on to say that
he discussed the provision with two attorneys before signing
the agreement. [] Thus he clearly knew of the provision yet
chose to sign it. He has not shown that he had unequal
bargaining power or that he made any efforts to bargain or
negotiate with respect to the provision. [] Defendant next
states that plaintiff's actual damages are zero []. However,
"The amount of damages actually suffered has no bearing on the
validity of the liquidated provision.." [] Finally defendant
points to the fact that other settlement agreements contain a
$10,000 liquidated damages provision. [] This alone is not
sufficient to raise a triable issue that defendant has not
shown that circumstances did not change between 12/86 and 4/87
and that those settling parties stand in the same or similar
position to defendant (i.e., that they were as high up in the
organization and could cause as much damage by speaking out
against plaintiff or that they have/had access to as much
information as defendant). "Defendant also has not raised a
triable issue regarding duress. Defendant's own declaration
shows that he did not execute the agreement under duress in
that it shows he carefully weighed his options. It certainly
does not show that he did something against his will or that he
had "no reasonable alternative to succumbing." [cite] In
addition, defendant is relying on the conduct of a third party
(Flynn) to establish duress, yet he sets forth no fact or
evidence in his separate statement showing that plaintiff had
reason to know of the duress. "Defendant fails to raise a
triable issue regarding obstruction of justice/suppression of
evidence. The settlement agreement expressly does not prohibit
defendant from disclosing information pursuant to subpoena or
other legal process. [cite] Nor is plaintiff in this cause of
action seeking to prohibit disclosure to government agencies
conducting investigations pursuant to statutory obligations.
[cite]. Even if a portion of the agreement could be construed
to so prohibit (see e.g., para. 10), plaintiff is not relying
on that section. Nor has defendant shown that the provision is
so substantial as to render the entire contract illegal.
[cite]" (Order, CT 4236-9) On February 23 Scn filed a motion
for summary adjudication of the twentieth cause of action. (CT
4244-5234) In its twentieth cause of action Scn sought a
permanent injunction prohibiting GA from violating any
provisions of the SA. (CT 1963; Memorandum in support of motion
for summary adjudication, CT 4524.21,2)
On March 17 Scn filed a motion for summary adjudication of the
thirteenth, sixteenth, seventeenth and nineteenth causes of
action. (CT 5298-661) The thirteenth cause of action concerned
a videotape interview GA gave at a CAN conference in 1992 (CT
1951,2); the sixteenth concerned GA's being interviewed by
Newsweek magazine (1953,4); the seventeenth concerned GA's
being interviewed by Entertainment Television; the nineteenth
concerned GA's providing a declaration dated 2/22/94 to be
filed in the Scn v. Fishman case. (CT 1957,8)
On April 19 GA filed a notice Chapter 7 Bankruptcy (USBC, Nor.
Dist. Cal. No. 95-10911) and imposition of automatic stay. (CT
5850-2) On April 21 Judge Thomas stayed the state action. (CT
5853)
Scn brought an adversary proceeding in the Bankruptcy Court
(Scientology v. Armstrong, USBC, Nor. Dist. Cal. No. 95-1164)
which resulted in the stay being lifted. (CT 5855) On September
18 GA filed his opposition to Scn's motion for summary
adjudication of the twentieth cause of action, and his
opposition to the motion for summary adjudication of the
thirteenth, sixteenth, seventeenth, and nineteenth causes of
action. (CT 5871-8553)
On September 20, Scn filed an ex parte application for an order
sealing certain exhibits in GA's evidence, claiming that they
were trade secrets. (CT 8579-8598) GA filed an opposition (CT
8554- 77; 8599-617) Judge Thomas sealed certain of those
exhibits pending the hearing on Scn's motions. (CT 8618,9) On
September 25 Scn filed a reply in support of its summary
adjudication motions. (CT 8620- 45) A hearing was held October
6. (RT V. 2, 2-17)
Judge Thomas issued an order granting Scn's motions for summary
adjudication. (CT 8679,80) He stated:
"Invalidity of Liquidated Damages Provision: Defendant's
evidence regarding his attorney's failure to represent his
interests (see facts 43 and 68) is hearsay and/or not based on
personal knowledge. The opinion of defendant's attorney as to
the validity of the provision (see, e.g., facts 52-54, 57-60)
is irrelevant and hearsay. The fact that two other clients
signed a settlement agreement containing the same liquidated
damages amount (see facts 55-56 and 63-64) does not raise an
inference that the provision was unreasonable. Defendant's
evidence is insufficient to raise a reasonable inference of
unequal bargaining power (No personal knowledge shown that
plaintiff, as opposed to Flynn, positioned defendant as a "deal
breaker"; Flynn's statements hearsay; no personal knowledge
shown of plaintiff's wealth; wealth alone does not raise
inference of unequal bargaining power since no showing
defendant desperate for money and had to accept on plaintiff's
terms). Defendant's evidence does not raise an inference that
plaintiff's calculation is "unfathomable" (fourteenth cause of
action seeks $50,000 for each of 18 letters; nineteenth cause
of action is based only on declarations, not on other contacts
between defendant and attorney/other clients). Defendant fails
to establish how he knows plaintiff had not been injured by his
statements at the time of the settlement.
Duress: Flynn's statements to defendant are hearsay. (See,
e.g., D's facts 1C and 1D) Further defendant has now shown that
plaintiff was aware of Flynn's purported duress of defendant.
[cite] Contrary to defendant's statement about duress, "careful
weighing of options" is completely inconsistent with an absence
"of free exercise of his will power" or his having "no
reasonable alternative to succumbing." [cites]
Fraud: Flynn's statements to defendant (See fact 78) are
hearsay. The Court finds that the portions of the agreement
cited by defendant (see facts 79 and 80) do not establish a
mutual confidentiality requirement. Paragraph 7(I) only
prohibits the parties from disclosing information *in
litigation between the parties;* paragraph 18(D) only prohibits
disclosure of the terms of the settlement; defendant has not
shown that plaintiff did either of those things. Further,
"something more than nonperformance is required to prove the
defendant's intention not to perform his promise." [cite]
No Specific Performance, Breach of Express and Implied
Covenant: Defendant relies on the purported mutuality
requirement, which he has failed to establish.
Obstruction of Justice: This argument was rejected by the Court
in connection with plaintiff's first summary adjudication. (See
2/22/95 Order at para.6.)
First Amendment: First Amendment rights may be waived by
contract. [cite]
On October 17, 1995 Judge Thomas signed Scn's order of
permanent injunction. (CT 8685-93)
On October 26 Scn filed a motion for summary adjudication of
the first cause of action for declaratory relief in GA's
cross-complaint; severance of the fraudulent conveyance claim;
dismissal of unadjudicated breach of contract claims; and entry
of final judgment. (CT 8694-927) On November 17 GA filed his
opposition (CT 9218-362), and on November 27 Scn filed its
reply. (CT 9453-65)
On November 2 GA filed a motion for reconsideration of the
grant of summary adjudication as to twentieth cause of action
for permanent injunction, (CT 8928-9045) and on November 16 an
amended motion for reconsideration. (CT 9046-217) GA filed
under seal his evidence previously stricken in Judge Thomas's
10/5/95 order. (CT 9218-20) On November 22 Scn filed its
opposition to the motion for reconsideration. (CT 9364-452) On
November 29 GA filed his reply. (CT 9466-519) A hearing was
held December 1. (RT V. 2, 18-27)
Judge Thomas issued an order denying GA's motion for
reconsideration, and granting in part Scn's motion for summary
adjudication. (CT 9521,2)
On January 24, Judge Thomas signed an order granting Scn's
motion to sever the fraudulent conveyance action, dismiss the
remaining breach of contract causes of action, enter final
judgment, and adjudicate Scn the prevailing party. (CT 9652-6)
On January 24, 1996 Scn filed a renewal motion for summary
judgment of GA's cross-complaint. (CT 9526-642) On February 23
GA filed his opposition (CT 9677-772) and on February 26 an
amended opposition. (CT 9749-9778.1) On March 1 Scn filed its
reply. (CT 9773-8.1) A hearing was held March 8. (RT V. 1,
26-38) Judge Thomas issued an order granting Scn's motion for
summary judgment on GA's cross-complaint.(CT 9780)
On May 2, 1996 the Court entered its Judgment. (CT 9783-94)
On July 8, 1996 GA filed his notice of appeal.
III. ARGUMENT
A. There is a Triable Issue as to Duress
In his January 27, 1995 order on Scn's first summary
adjudication motion of certain causes of action of its
complaint, Judge Thomas stated, regarding GA's defense of
having signed Scn's SA because of duress, that GA's own
declaration shows that he did not execute the agreement under
duress in that it shows he carefully weighed his options. Judge
Thomas also stated that GA relied on the conduct of attorney
Flynn, a third party, to establish duress, yet provided no
evidence showing that plaintiff had reason to know of the
duress. (CT 4236-9)
In his opposition to Scn's second summary adjudication motion
of its complaint GA provided evidence of Flynn's being fair
game and a target of many Scn attacks from 1979 until the
settlement. (SS 1B, CT 8418-20) In that Scn was the source of
the attacks which included some 15 lawsuits, bar complaints and
framing with a check forgery, it is obvious that Scn knew of at
least that aspect of the duress on Flynn. Scn also knew of all
its own acts of fair game directed at GA up to that time, and
at all the other settling parties. It goes without saying that
the purpose of fair game in its many forms is to apply duress
in its many forms to its designated targets. GA filed as part
of his evidence declarations by several individuals who had
knowledge of fair game. (Hana Whitfield, CT 7780-7887; see,
e.g., 7788-91, 7808-27; Dennis Erlich, CT 7888-99 at 7891;
Margery Wakefield, CT 7900-41 at 7903; Keith Scott, CT 7942-52
at 7945; Malcolm Nothling, CT 7953-9 at 7955, 7958; Jonathon
Atack, CT 7960-8038, at 7962-4, 7977-80; Nancy McLean, CT
8939-49 at 40,1; Lawrence Wollersheim, CT 8052-216 at 8053-59,
8074-212)
That Flynn, GA and the other settling individuals were targets
of fair game is also shown in the "settlement agreement"
between Flynn and his clients, wherein is stated:
"We the undersigned, agree and acknowledge that many of the
cases/clients involved in this settlement...have been subjected
to intense, and prolonged harassment by the Church of
Scientology throughout the litigation... that [Flynn] or his
firm's members have been required to defend approximately 17
lawsuits and/or civil/criminal contempt actions instituted by
the Church of Scientology against him, his associates and
clients, that he and his family have been subjected to intense
and prolonged harassment..." (CT 5486,7)
The idea that duress applied by a third party to a person to
get him to sign a document cannot be ascribed to the party
seeking the person's signature is not supported by common
sense. If an agent of a corporation holds a gun to the head of
an attorney's wife, and the attorney tells his client he must
sign the corporation's document or the attorney's wife will be
killed, although the corporate agent doesn't know what the
attorney says to the client, the agent and his corporation are
still the source of and responsible for the duress on the
attorney's client. In this case, the threat of Scn continuing
fair game to Flynn, his wife, family, law firm and clients was
the gun held to all their heads. That Scn was holding its fair
game gun to everyone's head was the communication Flynn relayed
to GA to get him to sign Scn's document.
The nature of the SA itself is also an inference of duress
since what attorney, but one under tremendous duress, would
have his client sign such a document, knowing intimately the
history of fair game by the organization who concocted it. It
is clear that Flynn had, before presenting Scn's SA to GA,
already agreed to sign a contract to not represent or defend GA
if GA was attacked in the future. Such a contract is illegal.
What attorney, one as competent as Flynn, would allow his
client to be so exposed and defenseless to future attacks,
except an attorney under duress, or one thoroughly corrupted.
There is too much evidence of duress to believe that Flynn was
just corrupt.
The duress at the time of the settlement, contrary to how it
might be viewed at first glance, is actually demonstrated by
Scn's continuing to fair game GA afterward. Tricking and lying
to a designated target are parts of the basic fair game
doctrine. CT 6934; SS 1A, CT 8412) Scn tricked GA into signing
its document by lying about ceasing its attacks. This was
acceptable Scn tactics because GA is designated an SP and hence
fair game.
Duress is also evidenced by Flynn's communications to GA
throughout this litigation. Flynn has continually told him that
he would like to help GA but that he is afraid to. Flynn signed
a SA with Scn as well, and has refused to come forward
throughout this litigation, despite telling GA that he "would
be there for [him]" if he had any trouble with Scn after the
settlement. (GA Declaration, 7/20/94 CT 2298) GA filed a
declaration executed April 7, 1995 stating what Flynn would
testify to if he were released by Scn from its contract with
him. (CT 7678-83) Contracts which limit an attorney's ability
to practice or limit his clients are illegal.
In his order of October 6, Judge Thomas stated again that GA
had not shown that Scn "was aware of Flynn's purported duress
of defendant." (CT 8679) That is not the issue; the issue is
Scn's duress of Flynn, GA and everyone else involved. What
Flynn stated to GA may be hearsay, but what Scn did over its
years of attacks on Flynn and GA, and what it would continue to
do if GA didn't sign is the source of the duress.
Judge Thomas stated that "careful weighing of options" is
completely inconsistent with an absence "of free exercise of
[GA's] will power" or his having "no reasonable alternative to
succumbing." That cannot be true. A person with a gun at his
head may weigh his options just as carefully as a person with
free exercise of his will. His options are, however, radically
different. In this case, GA's options were either sign Scn's
document or have Scn continue to threaten and attack his
attorneys, their families, the 20 other people who wanted out
from the threats and attacks, and himself. Also included in
GA's weighing of his options was Scn's promise through Flynn
that it would cease all its fair game activities against
everyone. Flynn's statements to GA that the SA's prohibitions
were not worth the paper they were printed on and
unenforceable, although perhaps ultimately true, are also
reflective of duress, and were also part of GA's weighing of
his options. Some people carefully weigh things; some people
don't. It is the nature of the options being weighed, carefully
or not, which is the true indicator of duress. Judge Thomas did
not examine GA's options. These are options which must be
examined by the trier of fact.
B. There is a Triable Issue as to Fraud
GA has stated throughout this case that he intended to honor
the silence and confidentiality conditions of the SA agreement
and that he understood Scn was to do likewise. (CT 6916) Indeed
Scn's being silent about him, and therefore ceasing to lie
about him, was inherent in Scn's promise to cease all fair game
activities, as relayed by Flynn. Scn has maintained throughout
this case that it may say whatever it wants about GA publicly,
and file whatever it wants in legal proceedings, and is not
bound by any agreement to refrain from such acts. GA only began
to speak out about Scn and his experiences after Scn published
and filed false statements about him and he perceived that Scn
was using his silence to obstruct justice.
In his opposition to Scn's second summary adjudication motion
GA presented considerable evidence of Scn's promise of
mutuality as an inducement to have him settle his
cross-complaint. This included certain parts of the SA, notes
of telephone calls from Scn attorney Lawrence Heller, and a
motion and supporting declaration authored by Heller stating
that confidentiality was mutual. (CT 5925-8; 5943,4; Phone
notes, CT 6227-37; Transcript, CT 6238,9; CT 5904; 6135-7; CT
6919; CT 6970; CT 5904; SS 105H, 8493,4; SS 103, CT 8490)
In his order granting summary adjudication, Judge Thomas only
commented on two of the SA parts, but did not mention Heller's
telephone statements to GA or Heller's sworn statements. (CT
8680) Judge Thomas stated that paragraph 18(D) only prohibits
disclosure of the terms of the settlement. But Paragraph 18(E),
which he did not take note of, states: "The parties further
agree to forbear and refrain from doing any act or exercising
any right, whether existing now or in the future, which act or
exercise is inconsistent with this Agreement." (SS 99, CT
8487,8) GA still believes that this means that Scn must forbear
and refrain from publishing and filing anything about him,
other than "stating that this civil action (Armstrong I) is
settled in its entirety." (SA, 18(D), SS 99, CT 8487,8) If GA
had understood that Scn's forbearing and refraining from acts
inconsistent with the SA meant that Scn would publish or file
whatever it wanted about him in the future, he would have, as
he has said consistently throughout this case, never signed. It
is clear that the SA was cleverly worded by clever lawyers, who
were more clever than GA.
Judge Thomas also stated that "something more than
nonperformance is required to prove the defendant's intention
not to perform his promise." But GA presented a great deal more
to prove Scn's representation of its intention, and to prove
that there is a triable issue regarding both parties' intention.
In the fall of 1989 attorney Heller threatened GA with
"hassles" if his deposition in the Corydon litigation went
forward, and threatened him with being sued if he testified
about his knowledge even though pursuant to a subpoena. In this
conversation Heller told GA he should honor the SA because Scn
had honored it, and that Scn had signed a non-disclosure
agreement as well and had lived up to it. GA told Heller that
Scn had filed declarations about him, put out dead agent
documents on him, and used an illegal videotape of him. GA's
notes of the Heller calls and his recording of his side of the
final conversation support his declaration containing Heller's
comments. (CT 5925-8; 5943,4; Phone notes, CT 6227-37;
Transcript, CT 6238,9; CT 5904; 6135-7; CT 6919; CT 6970; CT
5904; SS 105H, 8493,4; SS 103, CT 8490)
In a motion he filed in Corydon to prevent GA's deposition,
Heller stated:
"One of the key ingredients to completing these settlements,
*insisted upon by all parties involved*, was strict
confidentiality respecting: (1) the Scientology parishioner or
staff member's experiences with the Church of Scientology; (2)
any knowledge possessed by the Scientology entities concerning
those staff members or parishioners." (Underline in orig.) (SS
102, CT 8489,90; CT 5998)
In his declaration Heller stated:
"The non-disclosure obligations were a key part of the
settlement agreements insisted upon by all parties involved."
(SS 101, CT 8488,9; CT 6003)
Heller also stated in his declaration:
"The contractual non-disclosure provisions were the one issue
which was not debated by any of the parties or attorneys
involved." (CT 6003)
Heller's statements make absolutely clear Scn's intention of
mutuality as it was promised to GA to get him to sign its
contract. The whole of Scn's litigation to enforce what it now
claims is a non-mutual contract, in order to be able to further
fair game GA, is something far more than mere nonperformance,
and far more than what is required to prove Scn's intention not
to perform its promise.
C. There is a Triable Issue as to Justification
Even, assuming arguendo, that the silence provision only
applied to GA, and that Scn was not required by contract to
remain silent about him, GA was still manifestly justified in
speaking out as soon as Scn did.
Scn claims that it can say whatever it wants, no matter how
false or injurious, and GA cannot respond. That is essentially
what Judge Thomas has ruled in ignoring GA's defense of
privilege. GA is justified in responding to protect his
reputation, and indeed his life. This a matter for the trier of
fact to decide and cannot be dispensed with on summary judgment.
Putting aside defenses and arguments of free speech, freedom of
religion, freedom from slavery, due process and assembly, if
Scn had remained silent about GA, saying no more than that the
parties' litigation was settled in its entirety, and GA had
gone public about his Scn experiences, conceivably Scn could
have legally enforced the SA.
If, on the other hand, Scn had accused GA of being a serial
chain saw murderer; taken out a full page ad or a hundred full
page ads, in the New York Times, in the Washington Post, and in
Newsweek, all accusing him of being a serial chain saw
murderer; bought a satellite, a daily hour on network TV, and
produced a show called "Gerry Armstrong - Serial Chain Saw
Murderer," it is inconceivable that GA could be judicially
prevented from responding in the media, and to anyone who would
listen, in order to defend his reputation; in order to show
that he is not a serial chain saw murderer and to explain what
entity is attacking him and why.
Somewhere between GA discussing his Scn experiences without Scn
having said anything about GA, and Scn spending a billion to
run its GA serial chain saw murderer black PR campaign, there
is a line crossed where GA becomes justified in breaching his
contract in order to defend his reputation, and his life. It is
the line Judge Breckenridge recognized in the Armstrong I trial
when he said that in 1982, GA, being the target of fair game,
was "privileged to reveal information confidentially acquired
by him in the course of his agency in the protection of a
superior interest of himself or a third person." (CT 5952) In
1991, GA was no less fair game's target, and no less privileged
to respond to Scn's attacks, even though his responses might
be, absent Scn's attacks, breaches of contract.
That is a line for the trier of fact, in this case, a jury, to
determine. It is a line involving a look at what a reasonable
person would have done. It is a line involving a set of facts
completely ignored by Judge Thomas in his grant of Scn's
summary judgment. If GA's actions were reasonable, then a
contract which prevents them must be unreasonable. It is indeed
unreasonable that GA who had been fair game would continue to
be fair game.
In truth, Scn's post-settlement attacks on GA are more
vilifying, and call for a different, more complete response,
than does a libel like GA being a serial chainsaw murderer. Scn
gives its black PR titles like "False Report Correction," (CT
7598, 7612) makes it look authoritative by providing many
"facts," (CT 7514,5) or presents it in the form of a sworn
affidavit. (CT 6068) Scn's statements about GA are black PR
going beyond his Scn experiences; e.g., claiming falsely that
he posed nude in a newspaper (CT 7514; 7524) or, also falsely,
that he has AIDS. (CT 8242; 8676,7) These are matters to be
examined by the jury to determining if GA acted reasonably in
responding as he did, and whether first of all Scn crossed over
the line.
Sadly, there is sometimes an assumption of guilt in the public
mind when a charge is not responded to. There can be little
doubt that Scn would use GA's failure to respond to its
calumnies to further amplify the illusion of his guilt it
manufactured in that public mind. No one can be compelled to
respond to false charges made to the public, and it is the most
courageous man who does not respond. But no one also can be
prevented by human agency from responding to falsehoods,
definitely not by our Courts. GA has been moved to respond, no
matter how uncourageous or dangerous responding might be, so
that this terrible injustice can be seen and stopped, and
perhaps stopped from happening to others.
D. The Settlement Agreement Obstructs Justice
In his order granting Scn's first motion for summary
adjudication Judge Thomas stated that there was no triable
issue regarding obstruction of justice/suppression of evidence
because the SA does not prohibit GA from disclosing information
pursuant to subpoena or other legal process. (CT 4237) But the
fact that the SA allows GA to testify pursuant to subpoena does
not automatically mean that the SA does not have as its object
obstruction of justice. The facts of GA's relationship with Scn
and other litigants, particularly Scn's litigant victims (see,
e.g., CT 5486,7), and the facts of the uses to which Scn put
the SA are essential to determining whether it obstructed
justice. Thus an examination by the trier of fact is necessary.
Although instances of the SA acting to obstruct justice abound,
one will serve to show that obstruction is its object. On
February 8, 1994 Scientology leader David Miscavige, filed in
the Scientology v. Fishman case, supra, a declaration (CT
7625.1-65) in which he attacked GA, claiming, inter alia, that
GA advised people to falsely accuse Scn of criminal acts, that
the IRS repudiated GA's credibility, and that in a
police-sanctioned investigation GA acknowledged his motives
were to overthrow Scn leadership and gain control. (CT 7655,6)
On February 22, 1994 GA executed a declaration correcting the
falsehoods in Miscavige's declaration. GA's declaration was
filed in Fishman March 9, 1994 as part of defendants' pending
motion for costs. (CT 5579; 5646) GA appended to his
declaration as an exhibit a public announcement by then LAPD
Chief Daryl Gates that the "authorization" given to Scn agent
Eugene Ingram by police officer Phillip Rodriguez to eavesdrop
upon or record the confidential communications of GA or
attorney Flynn (CT 5641) was invalid and unauthorized and not a
correspondence from the LAPD. (CT 5643)
It would have been obstructive of the justice the Fishman
defendants were due if GA had not responded and Miscavige's
lies about him had adversely influenced the Judge in the case.
That is exactly what Scn sought with its SA and its judicial
enforcement. It would also have been obstructive of the justice
GA was due in the Fishman case, which is enshrined in the
litigant's privilege. (See opposition to motion for summary
adjudication, CT 3886-92) It would be obstructive of the
justice GA is due and every party in all Courts of California
and the United States are due if Scn can lie when it wants
about him and prevent him from responding to correct its sworn
to lies. Since the SA's purpose is to silence GA so that Scn
can say whatever it wants about him, his credibility,
litigation, testimony and character with impunity, including in
legal proceedings, it is obstructive of justice.
There was no opportunity for the Fishman defendants to subpoena
GA for his testimony to refute Miscavige's charges. Discovery
was closed, and in fact the case had been dismissed, as can be
seen by the fact that GA's declaration concerned defendants'
motion for costs. There are many instances in litigation where
there is neither time nor legal opportunity to take someone's
deposition to obtain testimony to present needed information or
refute presented misinformation. Additionally, requiring one
party in litigation to obtain third party testimony by
deposition that he is prevented from obtaining by declaration
only by the opponent's "contracts," senselessly, but
dramatically, runs up litigation costs. That is one of Scn's
tactics and is in itself obstruction of justice.
Judge Thomas also stated in his January 27, 1995 order that,
since Scn was not seeking in the causes of action on which it
then sought summary adjudication to prohibit disclosure to
government agencies conducting investigations pursuant to
statutory obligations, GA had not raised a triable issue
regarding obstruction of justice. He went on to state that
"even if a portion of the agreement could be construed to so
prohibit (see e.g., para.10), plaintiff is not relying on that
section, nor and has defendant shown that the provision is so
substantial as to render the entire contract illegal."(CT
4236-9) But that paragraph certainly is indicative of the
overall object of the SA being the obstructive of justice, and
thus having an illegal objective. The SA is very clear about
assistance to government agencies:
"[GA] agrees that he will not assist or advise anyone,
including individuals, partnerships, associations,
corporations, or governmental agencies contemplating any claim
or engaged in any litigation or involved in or contemplating
any activity adverse to the interests of any entity or class of
person (the beneficiaries)"
The fact that the non-assistance to governmental agencies was
itself illegal is evidenced by Judge Thomas's permanent
injunction which expressly excludes "government organ[s] or
entit[ies]" from its prohibitions. If the prohibiting of
assistance to government entities is obstructive of justice and
illegal, is not the prohibiting of assistance to non-government
entities equally as obstructive and equally as illegal?
Non-government entities are equally due justice, perhaps even
more due justice than the government entities, whose
responsibility it is to provide justice.
The purpose of the SA is to tilt the legal playing field in
Scn's favor. This should be declared illegal. For justice to be
obstructed it is not necessary to obstruct the whole justice
system. For justice to be obstructed it is enough for one side
to use any obstruction to gain an unfair advantage. The SA
certainly gains Scn an unfair advantage over GA, and there is
much evidence that the SA gives Scn an unfair advantage over
all its litigant adversaries. (See, e.g., Long affidavits filed
in Scn v. Miller, supra., CT 6011-102) Adding into the legal
arena the other SAs signed by the other settling litigants in
December, 1986, including attorneys, the obstruction becomes
gargantuan.
The obstruction of justice inherent in the SA is compounded by
its judicial enforcement. Because GA filed his declaration in
Fishman, as, pursuant to the litigant's [absolute] privilege,
he should have, to correct Miscavige's lies, Scn added the
declaration as a cause of action in its complaint, and
ultimately was awarded $50,000 in liquidated damages. (CT
5312,3; 8679)
The SA's obstruction of justice is also compounded by Scn's
proclivity for attempting its enforcement and using it as a
threat in a scope even beyond its already obstructive language.
Scn brought contempt of court charges against GA for 10 alleged
violations of the preliminary injunction issued May 28, 1992 by
Judge Sohigian. (CT 0428-639) These contempts were discharged
July 29, 1994. (CT 2690-2) Before he responded to Scn's attacks
GA was threatened by Scn attorney Heller who said that GA could
be sued if he testified, even though he had been subpoenaed in
the Corydon case, and that to prevent his being sued GA should
refuse to answer Corydon's attorney's questions. (CT 5926-8)
The trier of fact in determining whether the SA's object is to
obstruct justice must look at the nature of the entity using it
and that entity's intentions. Judge Thomas did not do this.
GA again argued that the SA obstructs justice in his opposition
to Scn's second summary adjudication motion. (CT 8270,1) Judge
Thomas commented merely that the argument had been rejected
with Scn's first summary adjudication. (CT 8679)
In his separate statement GA included a statement in a
declaration by Scn member Long that prior to December, 1986 GA
had testified in 15 cases a total of 28 trial days, had been
deposed for 19 days, and had executed 28 declarations in 15
cases all of which concerned Scn. (SS 135, CT 8520; Long
Declaration, CT 7742) The Court of Appeal in denying GA's
appeal from the 5/28/92 injunction stated that it merely
restrains, for the time being, GA's "voluntary intermeddling"
in other litigation against Scn. (CT 2049) GA has never
intermeddled in those litigations. His testimony and assistance
has been sought by the parties in those cases. Nothling called
him from South Africa (See, e.g., CT 7004); Yanny called him
from Los Angeles (See, e.g., CT 7004); Corydon subpoenaed him
(CT 5990-4); Fishman's attorney put GA on his expert witness
list; Miscavige involved him by filing a false sworn
declaration. (CT 7655,6)
The answer to Scn's problem with GA's testimony, and with
anyone's testimony, concerning the discreditable facts about
its nature and activities is not to attempt to suppress or
prohibit that testimony with its illegal SA and to punish GA,
or anyone, for testifying. Scn's answer, if it wishes to escape
liability, is to remove those discreditable facts from its
nature and activities so that there is nothing to be held
liable for. When Scn does so, GA's, and anyone's, testimony
regarding discreditable facts will no longer be relevant and
will no longer be sought.
Indeed it is the vital corrective or reformative function of
the justice system which Scn seeks to avoid or obstruct with
its dependence on its SAs and their enforcement. It is not in
the public interest that the justice system lose its power to
bring about correction and reform by enforcing obstructive
contracts which suppress knowledge of matters truly needing
correction and reform. As Judge Geernaert said when Scn urged
him to enforce the same SA Judge Thomas has enforced: "I know
we like to settle cases. But we don't like to settle cases and,
in effect, prostrate the court system into making an order
which is not fair or in the public interest." (CT 7700) Scn
seeks to prostrate the court system. The system, on which
everyone depends to prevent injustice, must let Scn, and
everyone, know that it is not for sale and will not be
prostrated for any amount of money.
It would be obstructive of justice to prevent perceived
obstruction of justice from being reported. If a Court failed
to acknowledge obstruction of justice as obstructive it would
be obstructive to prevent that fact from being reported. If the
court system failed to acknowledge obstruction of justice as
obstructive it would be obstructive to prevent any of those
facts from being reported to the media, to government and to
anyone who would listen. That is the situation here. The
reporting of obstruction of justice cannot be obstructed. The
reporting of perceived obstruction of justice, or any other
crime, cannot be prohibited until such time as the obstruction
or other crime is proven. GA has been unshakable in his
conviction that the SA and Scn's enforcement are obstructive of
justice since he first petitioned the Court of Appeal for
permission to respond in the Armstrong I appeal in 1990. (CT
6119-21) He continues to make the argument the moment these
words are typed. His argument is not without merit. For that
reason alone he cannot be silenced by the obstructive SA, nor
by the Marin Court's enforcement, and it is enough reason for
this Court to rule that there is a triable issue regarding that
obstruction.
E. There is a Triable Issue as to the Validity of the
Liquidated Damages Provision
Judge Thomas stated in his January 27, 1995 order that GA had
failed to raise a triable issue as to whether the liquidated
damages provision is invalid, and that, quoting Civ. Code,
§§1671, Subd (b), the law presumes that liquidated damages
provisions are "valid unless the party seeking to invalidate
the provision establishes that the provision was unreasonable
under the circumstances existing at the time the contract was
made." Judge Thomas stated that, although GA states that he was
not involved in negotiating the provision, GA goes on to say
that he discussed the provision with two attorneys before
signing the agreement. Judge Thomas stated that GA clearly knew
of the provision yet chose to sign it, and that GA had not
shown that he had unequal bargaining power, or that he made any
efforts to bargain or negotiate with respect to the provision.
Judge Thomas stated that GA pointed to the fact that other SAs
(the Aznarans') contain a $10,000 liquidated damages provision,
but that this alone was not sufficient to raise a triable issue
that GA did not show that circumstances did not change between
12/86 and 4/87 and that the Aznarans stood in the same or
similar position to GA. Judge Thomas described the same or
similar position as being as high up in the organization and
able to cause as much damage by speaking out against Scn, or
having access to as much information as GA.
It is up to the trier of fact to decide what all the
circumstances were at the time the SA was presented to GA for
signing and whether the liquidated damages provision was
unreasonable under those circumstances. The circumstances at
the time and leading up to that time were complex, and involved
many people and many complex legal and personal relationships.
GA presented more than sufficient evidence to raise a question
concerning the unreasonableness of the liquidated damages, and
Judge Thomas erred in his grant of summary adjudication.
In his opposition to Scn's second summary adjudication motion
GA again argued the unenforceability of the liquidated damages
provision. (CT 8244-50; SS 41-88, CT 8324-40) GA provided the
deposition testimony of two Flynn "clients," Nancy Rodes and
Michael Douglas, both of whom signed similar SAs to that signed
by GA. Each of their SAs contained a $50,000 liquidated damages
provision. Rodes and Douglas each were paid $7,500 to settle
their claims. (SS 55,6, CT 8329,30; SS 63,4, CT 8331,2;
Deposition transcript of Michael Douglas, CT 7702-10;
Deposition transcript of Nancy Rodes, CT 7716; "Mutual Release
Agreement," CT 7732-40) Rodes testified that she had been told
by Flynn that the "settlement agreement" is "not really
enforceable...no legal document can really take away your
rights." She testified that in her decision to sign she relied
"to a fairly large extent" on Flynn's telling her that he
thought the provisions with respect to maintaining silence were
not enforceable. (SS 57-60, CT 7726) GA provided his own
testimony that the liquidated damages provision was
unreasonable at the time because it applied to over seventeen
years of his life, about which it was impossible for him to be
silent. On its face the SA did not permit GA to communicate his
experiences to a doctor, lawyer, girlfriend, counselor,
minister, or any agency of the government; or face a $50,000
penalty. (SS 44, CT 8325; 8218) Scn was not intending to honor
its promise to cease fair game but was intending to subject GA
and his friends to more attacks including publishing its own
untrue and perverse accounts of his history. (SS 45, CT 8326;
8218,9) Scn's intention is shown by the fact that immediately
after the settlement it provided its account of GA's history
and documents concerning him to at least the Los Angeles Times,
and shortly thereafter to at least the London Sunday Times. (SS
46, CT 8326; 8218) Since Scn knew that it was going to continue
to fair game GA after the settlement, continue the public
controversy, and very possibly draw GA into that controversy in
order to defend his reputation, it was patently unreasonable to
require of him a $50,000 per utterance liquidated damages
provision in Scn's SA.
GA testified that the unreasonableness of the liquidated
damages provision is clearly demonstrated by the way Flynn
dealt with it. When GA protested the provision and the
impossibility of being silent about his seventeen years of
experiences, Flynn said, "It's not worth the paper it's printed
on;" "it's unenforceable." Flynn also said that "[Scn] won't
change it." For that reason and that reason alone there was no
discussion of the liquidated damages provision beyond that
point. (SS 52, CT 8328; 8219-20) GA saw the liquidated damages
provision at the time of the settlement as stupid, cruel and
diabolic. Flynn said "It's not worth the paper it's printed
on;" but "[Scn] won't change it." Armstrong was left with only
one option: if Scn wants to keep the stupid, cruel and diabolic
provision in its unenforceable SA, so be it. (SS 53, CT 8328,9;
8220)
GA testified that Scn had not been damaged in any way
monetarily by any statement he had made at any time prior to
the settlement; that there was no relationship between actual
damages sustained by Scn and the amount of the liquidated
damages; that all the money Scn spent on litigation concerning
GA has been to further its fair game goals in violation of his
basic human and civil rights, not on repairing damage he has
done. (SS 49-51, CT 8327,8; 8219)
GA testified that he had an utterly unequal bargaining power at
the time of the settlement and yet made a sincere effort to
address the provision and negotiate, only to be told by Flynn
"it's not worth the paper it's printed on. GA was positioned by
Flynn and Scn as a "deal breaker." He was flown to Los Angeles
from Boston without seeing one word of the SA, and after
Flynn's other clients had been brought to Los Angeles. He was
told by Flynn that Scn would continue to subject GA, all
Flynn's clients, and Flynn himself to fair game unless GA
signed. (SS 67,8, CT 8335,6; 8220,1)
GA testified that Scn had millions of dollars, a formidable
litigation machine in place and operating, and GA's own
attorney intimidated and compromised. (SS 71, CT 8337; 8221)
Flynn's co- counsel in GA's case, Julia Dragojevic, was not
representing his interests, but was going along with whatever
deal Flynn obtained from Scn. (SS 70, CT 8446, 8221)
Flynn's statement that "it's not worth the paper it's printed
on" was not a shock to GA because he had been required to sign
similar "non-disclosure" documents with liquidated damages
provisions while inside Scn, and Flynn had stated many times to
him that such documents were "not worth the paper they were
printed on." These documents were also found to be
unenforceable by the Court in Armstrong I. (SS 73, CT 8337,8;
8221; CT 6030)
If Flynn had stated or even implied at the 1986 settlement that
the liquidated damages provision was valid and enforceable GA
would never have signed. (SS 74, CT 8338; 8221) It is ironic
that, although Flynn did not properly represent GA's interests,
and in fact succumbed to the point of acting as Scn's agent, he
was truthful in his representation that the liquidated damages
provision was not worth the paper was printed on. It still
isn't.
In his October 6 order granting Scn summary adjudication Judge
Thomas stated regarding the liquidated damages provision that
GA's evidence regarding Flynn's failure to represent him was
not based on person knowledge. (CT 8679) GA's evidence of
Flynn's failure to represent him was of course based on person
knowledge. GA was there, spoke with Flynn, and had many
personal dealings with Flynn before and after the settlement.
GA was the client, and Flynn's employee. Flynn's
non-representation is also evidenced by the SA itself, and his
signing side deals with Scn.
Judge Thomas stated that GA's evidence did not raise a
reasonable inference of unequal bargaining power, and that he
had no personal knowledge of Scn's wealth. (CT 8679) But GA did
have personal knowledge of Scn and its wealth and power, having
been inside for over twelve years, much of that near the
organization's top. He also had personal knowledge of its
litigation machine and fair game, from his intelligence
position inside Scn, because he was himself a fair game target,
and because he had worked with Flynn in the Scn litigation.
Judge Thomas also stated that Rodes' and Douglas's signing SAs
with the same liquidated damages amount as GA did not raise an
inference that the provision was unreasonable. (CT 8679) But
the Rodes and Douglas SAs do raise an inference of
unreasonability. They were paid $7,500 and yet had the same
liquidated damages figure in their SAs, $50,000 per utterance.
Rodes, like GA, was told by Flynn that the provision was
unenforceable. Scn makes much of GA's being paid over $500,000
to settle his case. In truth it is irrelevant what Scn paid GA
to settle his cross-complaint, or for anything else. It did not
know what it was paying him since the amount of the settlement
was confidential between Flynn and his clients. (CT 117,8) The
issue is whether the liquidated damages provision was
unreasonable if GA had been paid $0. Did the fact that GA was
paid $500,000 mean that his cross-complaint was valued at
$492,500 and his silence was worth $7,500? Or did it mean that
GA knew 65 times as many discreditable things about Scn as
Rodes and Douglas?
In his January 27, 1995 order Judge Thomas had stated that the
disparity between the Aznarans' liquidated damages of $10,000
and GA's of $50,000 had to do with changing circumstances
between 12/86 and 4/87, or how high up in the organization they
were relative to GA, or whether they were able to able to cause
as much damage by speaking out against Scn, or had access to as
much information as he did. (CT 4236) The only fact that is
absolutely clear when examining the 6 documents containing
liquidated damages provisions filed in this case is that there
is a triable issue regarding the circumstances at the time of
GA signing of the subject SA containing the liquidated damages
provision, and consequently a triable issue regarding its
validity.
F. The Settlement Agreement Violates Freedom of Speech
In his opposition to Scn's motion for summary adjudication of
its twentieth cause of action, GA argued that what Scn sought
with its SA and its enforcement was to impermissibly prohibit
hisConstitutionally guaranteed First Amendment rights. (CT
8272,3) Judge Thomas's ruling on GA's presented defense was
incredibly clipped: "First Amendment: First Amendment rights
may be waived by contract. (See ITT Telecom Products Corp. v.
Dooley (1989)214 Cal.App.3d 307, 319.)" (CT 8680)
But Dooley concerns an employee's agreement not to disclose
confidential information. It is not at all similar to the
situation in this case. None of the information GA possessed
was confidential. Indeed, Judge Breckenridge stated in his
decision, affirmed on appeal:
"[GA] and his counsel are free to speak or communicate upon any
of [GA's} recollections or his life as a Scientologist or the
contents of any exhibit received in evidence or marked for
identification and not specifically ordered sealed." (CT 5950)
The Court of Appeal which affirmed the decision also refused
Scn's effort to have the record on appeal sealed. (CT 6903) All
of what GA has to say is already a matter of public record, and
in no way confidential to anyone.
This case is different from Dooley because it involves, not
confidential information learned on a job, but GA's
experiences, now over a 28 year period, with an organization
which has subjected him, and continues to subject him, to the
nightmare that goes by the name fair game. This case is
profoundly different from Dooley because it involves the
unthinkable concept of Scn being able to say whatever it wants
about GA, in exercise of its free speech right and in
furtherance of its fair game doctrine, while he may not
exercise his free speech right to defend himself. Pursuant to
the SA and the permanent injunction, every Scientologist, every
Scn lawyer and every Scn agent can say whatever they want about
GA and he may not respond. Dooley does not support such an
obnoxious idea.
That "First Amendment [free speech] rights may be waived by
contract" does not mean that all free speech rights may be
waived by contract. As with all contracts, a contract waiving
the very basic right of free speech must be reasonable, and
must be legal. There is a limit, and that is a limit to be
decided by the trier of fact, not hidden away with the gloss
that first amendment rights may be waived by contract.
Could the US require, in order to settle a case, that a person
never again mention this great nation? Unless of course
subpoenaed? Could California require to settle a case, or for
any reason, that a person never again mention this great state?
Or rather, would any court consider enforcing such "contracts?"
Could a court enforce a contract requiring that a person not
discuss the Republicans? The Democrats? The Communists?
Politics? Would any court entertain a lawsuit to collect on a
$50,000 liquidated damages provision in such a contract? If
free speech rights can be waived by contract, could a court
enforce a contract someone signed, perhaps because his attorney
told him it was not worth the paper it was printed on, in which
he agreed to not speak at all, about anything?
No. There must be a limit to what speech can be contracted
away. Here, GA has been sued 5 times, driven into bankruptcy,
driven from his job, black PRed and pilloried. The purpose of
the First Amendment guarantee of free speech is to provide a
defense for all citizens from such things, and indeed to
prevent them from happening. It is perhaps acceptable that Scn
pays people, or even contracts with them for their silence. It
is, however, completely unacceptable and impermissible for our
Courts to enforce such contracts. When Courts cease such
enforcement, Scn will perhaps cease its determination to
silence people and its determination to rewrite history. The
people will then get what they are owed in order to make
informed choices which is their due: the free flow of truthful
information.
G. The Settlement Agreement Violates the Thirteenth Amendment
Slavery is a state in which the slave is subject to a master
and does not have the recourse to defenses available to free
men. GA is subject to Scn's fair game abuse and pursuant to the
SA, and now the permanent injunction, GA may not respond. Scn
and the Marin Court have acted to dispossess GA of the right to
defend himself that free men possess. Scn is using the Courts
to make and keep GA its punching bag and slave.
The Thirteenth Amendment made slavery illegal in the United
States. At the end of the twentieth century, clever lawyers in
the employ of an entity that would enslave people, have found a
way to reinstitute it. Psychological peonage is still peonage.
Attorney Flynn did not have the legal right to sell GA into
slavery, and Scn does not have the legal right to keep him
there. The SA and all such "contracts" should be seen for the
instruments of slavery they are, and struck down summarily.
H. The Settlement Agreement Violates Freedom of Religion
Scn claims to be a religion, and claims all the extraordinary
benefits conferred by the Constitution on religions. It claims
that it is organized solely for religious purposes and that its
policies and bulletins are "scriptures." (SS 138-143, CT
8522-4; revised by- laws, CT 7746, 7748,9)
It is axiomatic that there is no freedom of religion where
there is no freedom to criticize, oppose or reform religion.
The US was founded in great part by people fleeing "religious
persecution" for opposing, criticizing or seeking to reform a
religion which had the power, often provided by the State, to
persecute them. The US recognized the need for its citizens to
be free from religious persecution in the Religious Expression
and Religious Establishment Clauses in the First Amendment to
the Constitution.
Religious expression in the US has traditionally only been
limited by an overriding State interest or need; e.g., to
maintain peace, safety or morality. It is not permitted to
destroy a fellow citizen as an expression of one's religion. It
is not permitted religious expression to yell "hell fire" in a
crowded theater. It is not permitted to enter private property,
to wiretap, to steal, or to commit fraud, although called for
in one's religious "scriptures."
The prohibition against the State's establishment of a religion
has traditionally been interpreted to mean that no religion
will be favored or given more support by government than any
other religion. Christianity and Christians, Buddhism and
Buddhists, and Scientology and Scientologists will be treated
by government and all its branches in every way equally. Also
anti- christians, anti-buddhists and anti-scientologists will
be treated in every way equally.
With its SAs, Scn is attempting to suppress and eliminate
criticism; as well as opposition and reformation efforts. Any
court's enforcement of Scn's SA necessarily involves the State
in one religion's suppression and elimination of criticism.
Judicial enforcement also results in the promotion and
establishment of Scn by the removal of opposition to promotion
and establishment. Unless the State is also willing to become
involved in and support every other religion's suppression or
elimination of criticism, it may not assist Scn in its campaign.
It is, however, inconceivable that any US Court would prosecute
someone who under any circumstances signed a contract which
required that he not discuss God, Jesus Christ, the Holy Bible,
or his experiences in the Christian religion; or for that
matter Allah, Islam, Mohammed, the Koran, the Vedas, Krishna,
or Xenu. Scn must learn that no Court will or may prosecute
someone for breaking one of its unholy contracts which requires
that he not discuss L. Ron Hubbard, Scn, Scientologists, Scn
scriptures and the person's experiences in that religion.
It is inconceivable that a Christian church in the US would do
what Scn has done to silence its critics. But even
Christianity, although it would never silence anyone about
itself, must not be given the opportunity. Therefore Scn's
efforts to silence its critics and prevent discussion of itself
must not be given judicial support. Its SAs must be ruled to be
judicially unenforceable.
The acceptance of criticism, opposition and calls for reform
must be the natural balance to the extraordinary benefits
conferred on religions. Scn chose to call itself a religion,
and, when it did so, in this country, it also had to accept its
critics' freedom to criticize it without State intervention.
Scn's SA impermissibly creates a religious discrimination by
prohibiting GA from assisting anyone adverse to its, a
religion's, interests. If such a contractual, and now
judicially enforced, prohibition of help is legal along
religious lines, it could be equally as legal along racial
lines, or political, or sexual. But no court would consider
enforcing a contract which required non- assistance to Chinese
people, Conservatives, or women. No court should also consider
enforcing Scn's contract.
It is abundantly clear in the reading of the complete record
(and GA prays that this Court will take the time to do so) that
GA has believed throughout this litigation in the existence of
God. (See, e.g., GA 6/21/91 letter, CT 7482-98) It clear that
he has come to believe that his being involved in this case,
and indeed all of his persecution by Scn, is for God's Purpose.
(See, e.g., SS 146-156, CT 8525-39; 5894-923) It is also clear
that he sees fair game as a terrible evil, and sees Scn's SAs
and their enforcement as part of that evil.
The Holy Bible is certainly clear that God is intimately
involved with man, religion and justice. He sends His prophets
to decry injustice. The Court cannot say that GA is not guided
by God. If GA had done something to disturb the peace or
threaten public safety, the State can act against him. But here
there is no question of peace, safety or morality; there is
only a person speaking out to decry injustice, to decry what he
sees as a real threat to peace, safety and morality. There is
only a person speaking his thoughts. No US Court can say these
are not God's thoughts. GA's words are religious expression
about a religion, and they must be left completely free of
State control.
By the direction of God or not this Court has the opportunity
to do a great work and eliminate a great evil. It is great not
because GA is great, but because the freedom of every person to
freely express his conscience, freely tell the truth and freely
help any of his fellows is great. IV. CONCLUSION
Nothing calls out for the enforcement of Scn's SA but the voice
of vindictiveness. Justice calls out for nonenforcement. GA
performed fairly; he dismissed his suit and gave Scientology
the criticism-free opportunity it said it wanted in order to
reform. Scn says it paid for peace. But there is no peace if
one side continues to be attacked. Scn performed unfairly. It
still has the opportunity to reform and embrace fairness. GA
asks this Court to reject the Judgment in this case and do
Justice to bring Scientology to take this opportunity.
Respectfully submitted, Dated August 25, 1997
Gerald Armstrong
© 1997, 2000 Gerry Armstrong
Gerald Armstrong
C/O George W. Abbott, Esquire
2245-B Meridian Boulevard
P.O. Box 98
Minden, Nevada 89423-0098
Defendant and Appellant
In Propria Persona
(702)782-2302
This is an appeal from a Marin County Superior Court judgment
obtained by plaintiff Church of Scientology International,
hereinafter (also with other components of the global
Scientology organization) "Scientology" or "Scn," against
defendant Gerald Armstrong, hereinafter "Armstrong" or "GA,"
pursuant to a series of summary adjudication motions. The
judgment (Clerk's Transcript on Appeal, hereinafter "CT,"
9783-85) includes a monetary award of $300,000 in "liquidated
damages," $334,671.75 in costs, and an order of permanent
injunction against GA. The judgment and injunction (CT 9786-94)
are the result of the enforcement by way of breach of contract
action of a 1986 "Mutual Release of All Claims and Settlement
Agreement," hereinafter "SA" (CT 116-31) which was to end then
existing Los Angeles Superior Court litigation between Scn and
GA. The SA requires, inter alia, that GA not mention Scn, his
knowledge thereof or experiences therein(CT 121-3), not
voluntarily assist or advise Scn's litigation opponents
including governmental agencies (CT 125,6; 128), and avoid
service of process (CT 125,6). The SA also included a
liquidated damages provision of $50,000 (CT 123) for any such
mention or assistance by GA. Scn claims that GA violated the SA
some 50 times, which are listed in the injunction, between 1991
and 1995. (CT 9787-91)