Jacksons vs AEG - Day 13 – May 17 2013 – Summary
Katherine, Rebbie and Trent Jackson are in court.
Jackson attorney Brian Panish has decided not to call Dr. Emery Brown a propofol expert. (AP) Panish told ABC7 he thought Dr. Brown's testimony wasn't going to add anything new to the jury. (ABC7)
There’s no witness available now to testify in the morning session, so Jackson attorney Panish plays video deposition of Marty Hom, defense expert witness. (AP & ABC7)
Marty Hom Video Depostion
Marty Hom has been in the music industry 25-30 years. (ABC7) Hom is a tour manager who’s worked with the Eagles, Bette Midler, Alicia Keys, Janet Jackson and other big-name acts. (AP).
The artist is usually who hires and pays him, Hom said. He gets a check from the artist. Hom doesn't know if MJ was paying Gongaware. Hom said his role changes from one tour to the next. He has to adapt quickly to the artist's need, since they are just very different. (ABC7)
Live Nation and AEG Live are the biggest companies in the business, Hom said. He's been friends with Randy Phillips for probably 10 years. Hom said he worked with Phillips and AEG Live once in the Bette Midler Tour in Las Vegas. Hom has no social relationship with Phillips. (ABC7) Hom said he knows AEG executives Paul Gongaware and Randy Phillips, who he called a friend. Hom said he and Phillips weren’t close -- they didn’t visit each others’ homes or otherwise socialize. (AP)
The music business in general is very small, Hom said, and Randy Philips used to manage a former client of his,Lionel Richie. Hom said he's never worked w/ Paul Gongaware. He knows him for many years, ran into each other all the time. He considers Gongaware a friend (ABC7)
“This business is a very, very small business. I probably know most of the people in this business,” Hom said during his deposition. (AP)
Jacksons attorney Kevin Boyle asked if Hom's friendship with Phillips and Gongaware, defendants in the case, would sway his testimony. Hom said he worked w/ Janet Jackson and met Mrs. Jackson as well. "I probably know everyone in the business, this is a very small business" (ABC7) He was questioned by plaintiff’s attorney Kevin Boyle, who asked Hom given his ties to AEG how he could convince the jury he was objective. Hom said he’s worked with Janet Jackson, and had met Katherine Jackson on a few occasions. (AP)
This is Hom’s first case serving as an expert witness. (AP) Hom said defendant's attorney called him asking if he'd be interested in being an expert witness in this case. Hom thought about it, agreed. Hom told the atty he didn't know what an expert witness makes. He was told they make between $400 - $500 an hour. They settled on $500/hour. (ABC7)
Hom: They just wanted me to testify in general scope on what I do for living. I think they were looking for someone who knew the tour biz (ABC7).
Hom said he's seen artists travel w/ physical therapists, masseuses, cooks, but he's not been on tour where artist takes doctor on the road. Hom said he hired doctors in individual cities when artist was ill, wanted B12 shots, crew was sick. Hom said the tour paid the doctor.(ABC7) Boyle asked Hom whether he’d ever hired a doctor to go on tour. Hom said no. He hires local doctors if an artist is sick or needs treatment. Marty Hom said he’d never worked on a tour in which the artist or artists’ brought along a doctor. (AP) Hom said he knew the Rolling Stones have physician on tour, Blink-182 also had doctors on tour, but he didn't know what their agreements are (ABC7)
"The doctor should look for the best interest of the artist," Hom opined, "I'd never put artist on stage if it wasn't for his best interest" (ABC7)
Boyle asked if Hom knew Kenny Ortega. Hom said yes. Boyle asked if Ortega would ever falsely sound alarm about artist health. Hom said no (ABC7)
Hom said it was not appropriate for the tour manager or promoter to inject themselves into the doctor-patient relationship. (LAtimes) Hom said he never injected himself in doctor-patient relationship. He said he didn't believe it was appropriate 4 concert promoters to do it. Hom: Is it appropriate? I don't know, but it's a question I have to ask for best interest of the show. I think it's a legitimate question. (ABC7)
Hom said he didn't see a problem asking the doctor questions. It's up to the physician to set the limits, he opined.(ABC7) Asked if it would be OK for someone to speak to the performer's doctor without the artist present, he answered, "I thought it was the doctor's responsibility to say no." (LATimes)
He said he knew of no instance where a promoter or producer had a private conversation with the artist's doctor.(LATimes)
Hom said he needs to know if artist can perform and/or for how long he needs to be on leave. That's why he'd ask doctor status of the artist. Hom said he would ask the doctor questions to determine what kind of condition the artist/dancer would be and his capability to do the tour (ABC7)
He testified that when performers were ill, "my natural instinct is to go to that doctor and ask him, 'Is that dancer going or musician going to be able to make that show in a week?”(LATimes)
He said he’d never gotten involved in a doctor-patient relationship. He said he does ask doctors about prognosis for injured artists. He said it’s a legitimate question to ask “How long is that musician going to be sick?” and similar questions for the sake of the tour. (AP)
Hom said it was proper for AEG lawyers to inquire of Murray whether Jackson would be able to perform all of the scheduled shows in London. (CNS)
He’s also worked with AEG on a couple occasions, including the Alicia Keys tour. He was approached about working on the Rolling Stones tour. (AP) Timm Wooley contacted Hom earlier this year to ask if he would be willing to be the tour manager for the Rolling Stones show. Hom said he was pretty busy this year, but since it's the Rolling Stones, he would like to throw his resume in the pot. Hom said AEG ended up hiring someone else to be Rolling Stones' tour manager. (ABC7)
Hom said that Dr. Murray asking for $5 million raised a red flag. "It's outrageous." (ABC7 &AP)
Hom said he's never seen a draft agreement between promoter/producer and a doctor. He's been in the business for 30 years. (ABC7)
Hom said he wasn't aware of promoter/producing ever paying artist personal manager. Plaintiff says they have evidence AEG paid MJ's manager (ABC7) (Panish said outside court that he will later introduce evidence that AEG was paying Jackson's managers, which could be a conflict of interest. – LATimes)
Boyle: Would you ever hire a doctor to give an opiate-dependent artist Demerol?
Hom: No
Boyle: Would you hire a doctor to be feeding the chemical dependency of the artist?
Hom: I would not (ABC7)
Hom also said he would never tell a director he had checked out a doctor if he hadn’t, a reference to claims by the Jackson family about an AEG executive (LATimes)
Hom said he had no opinion whether the defendants hired Dr. Murray. Hom never talked with Phillips, Gongaware or Wooley about MJ.(ABC7) Marty Hom said he had never talked to Gongaware and Phillips about Michael Jackson. (AP)
Plaintiff’s attorney Kevin Boyle asked Hom several questions about whether he wanted to work with AEG Live in the future. Hom said yes. (AP) Hom said he'd like to work with AEG Live in the future, not for them. He said the promoters don't have any saying on who hires him. Hom said he works for an artist, he's hired and paid by the artist, promoters have no say on his contract. (ABC7) Hom noted that AEG and Live Nation are the two biggest concert promoters. He wants to keep working with both of them, he said. (AP)
Julie Hollander Testimony
Katherine and Rebbie Jackson was not present for the afternoon session.
Jackson Direct
Plaintiff’s attorney Brian Panish walked her through "This Is It" concert budgets, both those generated before and after MJ’s death. The documents show that AEG budgeted to pay Murray for his work with Jackson as “preproduction cost.” Murray was never paid. (AP)
Panish showed Hollander a document from April 30, 2009. It shows management medical for $300,000. Hollander said her job was to facilitate payments and sometimes she approved payment as well. (ABC7)
Panish asked Hollander if people worked for AEG without fully executed contracts. She said yes, they may start work in general terms. Standard company police is that no payments are made without fully executed contract, Hollander said. The contract could get executed later. (ABC7)
"People commence work before their contract is executed, yes" Hollander said. (ABC7)
Panish said people did the work before MJ died, but got paid after he died. Hollander said she didn't recall specifics. Hollander said there were people who had contracts renegotiated after MJ's death. Hollander said AEG renegotiated contracts after MJ died to mitigate the burden on MJ's Estate. (ABC7)
Panish shows email from 7/10/09 asking Hollander to sign a tour contract so vendor could get paid. Hollander signed it after MJ had died. Panish shows email from 8/4/09 showing another vendor who negotiated contract after MJ died and got paid for prior services. (ABC7)
Panish also displayed several emails about how other vendors were paid, including makeup/hairstylist Karen Faye. The emails show some vendors were complaining about that they weren’t being paid after Jackson’s death. Hollander said many were paid. (AP)
One of the emails was regarding $11,500 that Karen Faye charged AEG for wigs she purchased for Jackson. After he died, AEG stopped a payment. Faye was upset that they rescinded the payment and was threatening to go to AEG Live CEO Randy Phillips. (AP)
Email from 6/30/09 from Randy Phillips to Holland: "This is from Karen Faye who did MJ's hair and makeup. She bought three wigs for use in the tour and one of them is going to be used for his final rest.” (ABC7) He was copied in on a message. “Pay it immediately,” Phillips wrote in an email. “Do not stiff any vendors.” (AP)
The amount for the wigs was $11,500, which Hollander said it's a nominal amount, thus there's no need for contract. (ABC7)
From time to time, Mr. Gongaware asked Hollander to expedite payment, she testified. He's an impatient person, vendors are important to him(ABC7)
As to Tohme Tohme, Hollander knows who he is, but is aware that at some point he was released from duties as MJ's manager. Hollander says she knew Tohme was terminated before MJ died, therefore had no legal power to sign on his behalf. (ABC7)
Panish said $36 million was spent in MJ's project. He asked if Hollander knew AEG filed claim against Lloyds of London 2 collect insurance. Hollander said she knew it through the press. She doesn't have recollection of specifically providing information for an insurance claim. (ABC7)
Panish shows Pre-Tour Cost Projection from 5/20/09 where AEG was to pay Dr. Murray $300,000. It was pursuant to the contract, Panish said. Budget prepared by Wooley, approved by Gongaware showed "Management Medical" and amounts to be paid to Dr. Murray are listed "Per Contract" (ABC7)
On 6/18/09, Hollander received email from Brigitte Segal, who worked on the tour for the estimated cost 4 some living arrangements in London. AEG pays for entertainment arcade & bowling alley because of precondition in terms of what MJ needed at the house as and part of the bargain. AEG pays for 3 of the local houses: Bush, Faye and Murray (wardrobe dresser, make-up/hair & personal physician). Pays for additional furniture, staffing, security, nanny, food. (ABC7)
Gongaware response on June 19, 2009: "I agree with Timm's allocation and the charges. Approved" (ABC7)
Hollander said AEG had to pay those costs pursuant to the terms of the contract for the tour, as advance payment. (ABC7)
Panish shows a pre-production budget vs what was paid. Dr. Murray still appears budgeted on 7/1/09 for $300,000. Hollander said she did not see a contract with Dr. Murray signed by AEG. Panish: If the $300,000 was supposed to be advance for MJ to be repaid, it would be under category "Artist's Advances". Hollander agreed. (ABc7) There was $300k listed for Murray under “preproduction costs” in “This Is It” budgets. It wasn't listed under terms MJ was supposed to pay. (AP)
Panish: Dr. Murray was supposed to be paid $150,000 per month, correct?
Hollander: Yes, according to the un-executed contract (ABC7)
Brian Panish ended his direct examination of Hollander by playing testimony from her deposition about 20 tours she’d handled finances for. (AP) Hollander said that "This Is It" tour was the first time she saw the situation where AEG Live hired a physician for the tour. It was also the first time she saw AEG Live pay for an artist's personal physician, Hollander said. (ABC7) Hollander said “This Is It” was the first time she’d seen costs for an artists’ physician included in a tour budget. (AP)
AEG Cross
AEG attorney Jessica Stebbins Bina started her questioning of Julie Hollander. Her early questions focused on money advanced to Jackson. Hollander told Stebbins Bina that it was her first time testifying and that’s why she was so nervous answering questions. (AP)
Hollander explained what advance meant, it was like cash advance and, depending on the contract, it would be paid back by the artist. Hollander testified that MJ was responsible for 100% of the production costs should the concert not go forward. But if the tour went forward, MJ was responsible for repayment of 95% of the costs and AEG would pay 5%. (ABC7)
Hollander said that if something is on the budget, it means it was planned to be paid. But things changed very often. (ABC7)
In the "This Is It" tour, Hollander said she had contracts with staging, lighting, choreographers, sound equipment, etc. She testified that only the contract that had been drafted for Dr. Murray required Michael Jackson's signature. (ABC7)
"My understanding was that Mr. Jackson had asked to include Dr. Murray in the tour personnel," Hollander explained. "Mr. Murray was requested by the artist, and that was my understanding," explained Hollander. (ABC7)
"I was instructed that no payments were to be made until MJ signed the contract," Hollander said, due to the personal nature of the services (ABC7) Hollander told jurors she was instructed not to pay Murray until Jackson signed the physician’s contract. (AP)
Hollander: Tour manager maintains the budget, negotiates some of the vendor's contract, may be involved in mitigating tax exposure. "My role (in TII tour) was to make sure the items created were in line with the budget made," Hollander described. (ABC7)
Hollander said she never saw a version of Dr. Murray's contract signed by AEG or MJ. AEG never paid Dr. Murray, Hollander said. (ABc7)
Before court adjourned, Hollander made the point that a budget is a guide for a concert tour. “A budget is just a tool,” Hollander said. She said sometimes an executed contract differs from the budget. In that case, the contract’s terms dictate the payments, Hollander said. (AP)
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Hollander resumes testimony Monday morning, then AEG's general counsel Shawn Trell takes the stand.