Jacksons vs AEG - Day 14 – May 20 2013

Jacksons vs AEG - Day 14 – May 20 2013 – Summary

Katherine, Rebbie and Trent Jackson were at court.

Before testimony starts, Judge Yvette Palazuelos admonished the audience that no one is allowed to talk to jurors. Someone approached one of them. Apparently someone (person wasn’t identified) spoke with a juror, which is a big no-no. Could lead to a mistrial. (AP&ABC7)

Julie Hollander Testimony


AEG cross

Each member of the crew, dancers, musicians had an agreement as to weekly payment, Hollander explained. (ABC7)

Hollander said AEG never paid Dr. Conrad Murray because the contract had not been fully executed. Based on the contract, Hollander said payment for Dr. Murray should be to GCA, the doctor's employer. (ABC7)

Contract: Dr. Murray represented he's licensed cardiologist practicing in Las Vegas and that he acts as the Artist's general practitioner. (ABC7)

Hollander says Dr. Murray could only be paid after the contract was fully executed, including signature of MJ, due to nature of the service (ABC7) AEG attorney Jessica Stebbins Bina went over part of Conrad Murray’s contract related to how he would have been paid. Julie Hollander testified she was told not to pay Murray until the contract was signed by all parties, including AEG and Jackson. Hollander said last week that she was told not to pay Murray until Jackson’s signature was on the contract. (AP)

Hollander said she has never seen an agreement where the artist had to sign off on a contract for services. (ABC7) Hollander said last week that she was told not to pay Murray until Jackson’s signature was on the contract.AEG exec Julie Hollander re-iterated last week’s testimony that she Murray’s contract was only one she saw requiring MJ’s signature. She said today that she hadn't seen any other contract that required artist’s signature in her experience. Hollander said she thought Jackson’s signature was required due to the personal nature of the services. (AP)

Hollander explained that budget is a tool where you plan your future expenses. The book documents the actual expenses incurred. Bina showed Hollander report she prepared on 10/21/09 that was sent to MJ's Estate with the costs incurred as advances for the TII tour.

Next document Bina showed a comparison of Budget v. Actual expenses as of Oct. 2009.(ABC7) Julie Hollander told a jury the tally involved expenses compiled through October 2009, roughly three months after the death of the pop star. Budget documents shown Monday in the Los Angeles courtroom show the production was more than $2 million over budget, and that AEG made no payments to Conrad Murray (AP).

Budget Total:
Budget: $22,228,000 
Actual: $24,835,011

Management Medical
Budget: $300,000
Actual: Zero

Public Relations
Budget: $18,000
Actual: Zero

Rehearsal Per Diems:
Budget: $175,000
Actual: $89,751

Rehearsal Facilities:
Budget: $871,000
Actual: $1,553,558 (ABC7)


Jackson re-direct

In re-direct, Panish asked Hollander if it was true that public relations was not paid $18,000 because MJ died. She said no. (ABC7)

Panish: Do you know what that $18,000 is for? 
Hollander: No (ABC7)

Panish: Budget and actual payment for rehearsals per diem were different because Mr. Jackson died, correct? 
Hollander: No (ABC7)

Hollander didn't know the per diem schedule, so she said she didn't know the answers. (ABC7)

Panish: You didn't pay Dr. Murray, did you? 
Hollander: No 

Panish: That's why it's not there (on doc shown) 
Hollander: Yes (ABC7)

But all the estimates include payment for Dr. Murray, Panish asked. "That's what shows in this paper," Hollander responded. (ABC7)

Contract: promoter shall make advanced to cover mutually-approved production costs up to but not exceeding $7.5 million. (ABC7)

Panish shows Dr. Murray's contract and asked Hollander if anywhere in the agreement is says this was a draft agreement. In my experience, a draft is a term used to describe an agreement that has not been signed by all parties involved, Hollander explained. Panish: Is it your experience people sign draft agreements? Hollander: My experience is that until everyone signs, it can be changed. If this version had been signed by everybody, would've been final, Hollander said. The contract was from 5/1/09 until the end of TII tour (ABC7)

I was told it was put in there at the request of the artist, Hollander said. Panish asked if MJ had to approve $150K payment for Dr Murray (ABC7)

I've never been involved in a tour where AEG hired a doctor, Hollander said. "It's never happened before." I know in my experience it's not typical for a promoter or producer to hire a doctor, Hollander said. (ABC7)

Panish questioned Hollander about Dr. Murray's company and she said it was a LLC in Nevada. "Do you know what GCA is? Does it sell popcorn?" (ABC7)

Panish asked Hollander if there's written policy against someone working for AEG without executed contract? She said she isn't aware of any. Hollander said there's a policy against paying people without fully executed contract. (ABC7)

Hollander said tour promoters don't get involved in what it takes to actually put the show together. The artist does. AEG Live is more promoter than producers of shows, Hollander said. They promoted upwards of 100 tours, produced only few, she testified. Acting as producer you get more money than just as promoter, right? Panish asked. Hollander agreed, saying they have earning potentials. (ABC7)

Hollander said the Michael Jackson Estate approved the cost of the tour expenses incurred by AEG. (ABC7)

Panish: You don't know whether the artist was supposed to approve the cost while it was incurred and not after his death, correct? (ABC7)

Panish asked Hollander how it was that she testified last week she worked in 20 concerts and today she said it was more than 100. Hollander said she looked through materials at work and it refreshed her recollection. Panish said he wants to see the list of tours. My estimates was 20 tours up until 2009, Hollander said. From 09 to today, she said it's upward of 100. (ABC7)

Panish: Do you have any understanding whether Dr. Murray expected to get paid? Hollander: Only along those lines, yes (ABC7)


Julie Hollander was then excused subject to recall if needed.



Shawn Terrell Testimony

Jackson Direct

Katherine Jackson's attorneys called Shawn Trell as next witness. Brian Panish doing questioning, Trell is an adverse witness. (ABC7)

Shawn Trell is the Senior Vice President and General Counsel for AEG Live for 10 years. He's been with the company for 13 years. (ABC7)

Trell said he met with defendants attorneys for a few hours Saturday and Sunday, reviewed documents to refresh his recollection. (ABC7)

I'm the client's representative in the court, Trell said. (ABC7)

Plaintiff’s attorney Brian Panish asked Trell about his relationship with AEG’s trial counsel, Marvin Putnam.Putnam and Trell went to law school together, but Trell said he’s only known Putnam for three or four years. (AP). Marvin Putnam and Trell went to Georgetown Law School together, but only realized they went to same school after trial started. (ABC7)

Attorney Shawn Trell was the one who drafted and edited Michael Jackson’s contract with AEG Live. (AP) Panish: Did you enter in a contract with Mr. Jackson for TII tour? Trell: Yes 

Trell said he was involved in drafting the agreement, but in his deposition, he said he had drafted it himself. (ABC7)

Panish also asked Trell about his knowledge of Michael Jackson’s interest in producing movies with an AEG film group. Trell said he knew Jackson wanted to produce movies, but he wasn’t aware that MJ wanted to work specifically with AEG. (AP) Trell said he's aware MJ wanted to produce films and Anschutz has a film company. He wasn't aware that MJ and Anschutz met about TTI movie (ABC7) Trell said he never heard that Randy Phillips spoke with DreamWorks about producing a MJ movie. (ABC7)

Trell said he never discussed with Tim Leiweke, former AEG's CEO, about MJ. Leiweke is no longer with AEG, Trell said.(ABC7)

Trell was interviewed by LAPD. "I think they were interested in what we knew about Dr. Murray," she testified. (ABC7) Trell said he produced all the materials LAPD asked of him. Panish asked if he turned over only one email, and he said he didn't recall. (ABC7)

Trell said he's confident he turned over all the material requested of AEG Live. Outside the presence of the jury, Jessica Stebbins Bina said there are about 200,000 pages of documents. Panish said Trell has been designated in 24 categories as having knowledge and being the most qualified to speak on behalf of AEG. Panish said the witnesses he will spend most time on are Randy Phillips, Paul Gongaware and Shawn Trell. (ABC7)

Panish asked if AEG Live sent a letter to MJ's Estate after he died trying to recoup money. Trell said he didn't recall. Panish showed an AEG Live letter written to MJ's Estate with costs incurred for the tour. It was signed by AEG's CFO. "This report was sent to the Estate as an accounting and an effort to recoup the money based on the agreement," Trell said. The report indicated around $30 million had been spent on the production of the tour. The report included $300K to pay Dr. Murray. Panish noted that the report was sent to MJ's Estate to recoup money "spent." AEG never paid Dr. Murray. "To me, it was a mistake," Trell said about including payment to Dr. Murray. (ABC7) Plaintiff's attorney showed Trell a July 2009 letter to Jackson's estate aiming to recoup production expenses, including $300k for Murray. Trell said including Murray as a production cost in the budgets and letter to Jackson estate was a mistake. (AP)

Trell, testifying Monday in the Michael Jackson wrongful death trial, also said his company's chief financial officer made another major error by classifying Dr. Murray's fees as "production costs" and not "advances" in all of the budgets for Jackson's "This It It" tour. (CNN)

"Mistakenly, yes," Trell said.
Despite these "mistakes," Trell called the CFO "a very detailed-oriented guy." (CNN)

MJ was given $5 million in advance: $3 million was to pay settlement of a lawsuit, $100,000/month for Carolwood house lease. Trell said MJ was already in the house at Carolwood when they entered into the agreement. AEG was to assist MJ to get $15 million in credit line, or would advance the money, so MJ could buy a house in Las Vegas, Trell testified. (ABC7)

Trell said Tohme Tohme was acting as MJ's manager at the time and was to be paid no more than $100,000. Panish asked if AEG Live ever had a contract that included pay for artist's personal manager's salary: "I don't recall one." "This was the only time we paid a personal manager," Trell testified. AEG Live's producer's fee: 5 percent of net tour income. (ABC7)

Panish asked if Dr. Murray was listed in every budget after May 8, 09: "He was listed incorrectly as production cost," Trell said. (ABC7)

After lunch break, Panish asked Trell is AEG was getting 5% as producer and 10% as promoter of the show, and he said yes. Panish shows a document with AEG Mission Statement. One of bullet points is "to create land maximize revenue streams." (ABC7)

As of June 2009, Trell said AEG was not sure the extent of Jackson's assets to secure the interests of the company. "There's an inherent risk in any commercial undertaking," Trell said. It wasn't a sure thing that AEG would get back the $35 million spent. By the time they spent $35 million, tickets were already been sold, Trell said and they knew tour was sold out. The development of a tour is a fluid thing, there were conversations between our side and MJ's side all the time, Trell said. "I don't know when I became aware the production cost exceeded $7.5 million," Trell testified. As to non-appearance insurance, Trell said he got insurance for $17.5 million. (ABC7)

Panish: After MJ died, you drafted an agreement to approve productions costs?
Trell: Yes (ABC7)

The letter was drafted on June 28, 2009, 3 days of MJ's death. "I wouldn't characterize it as trying to get the monies back," Trell said. Panish explained the letter was to get confirmation of all the money spent so AEG could recoup the money spent. (ABC7)
Trell said there was nothing in writing saying Mr. Tohme was an officer of MJ's company. He said Mr. Tohme verbalized it to him, though. "I had nothing in writing," Trell said about Tohme representing MJ. "Presumably they could've objected if they felt it wasn't true." Trell said Mr. Tohme represented to him he was representing MJ. "I had no reason not to believe him," Trell said. (ABC7)
He was also asked about a letter he sent to Tohme Tohme, MJ’s onetime manager. Jackson’s agreement with AEG Live called for Tohme to be called $100,000 a month, but Tohme was never paid. (AP) Trell said he drafted the agreement that Mr. Tohme was going to be paid by AEG as part of production cost. "We were making that payment." Trell said he didn't know who came up with the $100K figure to pay Mr. Tohme. "AEG was facilitating an agreement between MJ and Dr. Tohme." Tohme was not paid. "That was because there were some conditions in the agreement not met." (ABC7) Shawn Trell testified that he found out after the contract was signed that Jackson didn’t authorize Tohme’s payments.(AP) "Subsequently, I learned Mr. Jackson had not approved the payment," Trell testified. "MJ didn't authorize, so it wasn't going to get paid," Trell said, explaining he learned it either from Randy Phillips or Frank DiLeo. (AB7) “If Michael Jackson didn’t authorize it, it wasn’t going to get paid,” Trell said regarding Tohme Tohme’s payments. (AP) On 5/5/09, MJ wrote: "At my direction and effective immediately, Dr. Tohme Tohme is no longer authorized to represent me in any capacity" (ABC7)

Panish: are you license to practicing law in CA?
Trell: no, not in all aspects (ABC7)

Trell is registered as in-house counsel for AEG. He's never taken the CA bar test.(ABC7)

Bob Taylor is an insurance broker, Trell said, and Lloyds of London is one of the underwriters of the type of insurance they were seeking. Panish shows a document where MJ was required to have a physical exam so broker could take the results to the insurance companies. Trell said he asked the question why insurance broker had chosen Dr. Slavit in NY and not a doctor in LA. The payment of the doctor was going to be 50/50 between the insurance broker and AEG, Trell said. Trell testified that it was the broker's belief that without physical exam there would be no way to get insurance. An email shows Trell inquired if it was really necessary to incur $10K in expense to get the medical exam completed. Trell said he never saw Dr. Slavit's report, or any other report, regarding MJ's physical exam; didn't know what kind of doctor he was. Trell said he learned through Taylor they wanted to get a number of years about MJ medical history. "They were concerned he had skin cancer" "The policy was otherwise issued, but this was to add illness," Trell said. They required 2nd examination in London; wanted to see rehearsal. Trell said he never saw a request for a second medical exam in any tour. (ABC7) Plaintiff’s attorney Brian Panish also questioned Trell extensively about concert cancellation insurance for Jackson. An insurance broker was pressing AEG for a medical examination of Jackson before agreeing to write the policy. Emails between Trell and the broker showed there were concerns by insurers in London about Jackson’s health. One of the emails said Jackson was getting “mauled” by tabloid press over health concerns. Trell said concern was Jackson had skin cancer. Trell and the broker went back-and-forth a lot over in Jan. 2009 which doctor would do the exam. In the end, a NYC doc examined Jackson. Trell said he never saw the results of the medical examination. In March, insurers wanted another exam of Jackson in London. The second examination would cover illness, but insurers wanted another med exam and to attend full dress rehearsal, Trell said. Trell said he also inquired about life insurance for Jackson. He said AEG had inquired about that for other artists, but didn't specify. (AP)

Panish: the insurance wanted additional medical exams because they were concerned, weren't they?
Trell: I have no idea (ABC7)

Panish showed email from the insurance broker to AEG execs with several question: details of coverage required, if artist had doctor on tour. Trell said he doesn't know whether this email with the requests was ever sent to MJ's people. Trell said Dr. Murray was asked later to help with these answers. "It was thought that he might be of some help." Panish asked if Trell sought life insurance on MJ where they would be the beneficiaries. "An inquire of that was made to Mr. Taylor." "We have no coverage against MJ sickness unless and until MJ submits to another medical in London." "It was important to get that medical done," Trell testified. He said policy would kick in on death, but not illness. (ABC7)

Panish: You were working on getting insurance on the day MJ died, weren't you sir?
Trell: I don't recall (ABC7)

Given the hour MJ died, Trell said he thinks he was not on the phone with Bob Taylor negotiating more insurance for MJ. (ABC7)
Panish showed email from Gongaware to the insurance broker on June 24, 2009:
"Dr. Murray can comment on the availability of the records." (ABC7)

Panish said the amount of coverage was the maximum the underwriters were willing to cover, Trell agreed; it was effective April/early May. Two days before MJ died, Trell asked broker for longer insurance coverage: "Term insurance is a reference to a form of life insurance" Trell said he was looking for other options to cover the gap for what had already been spent. (ABC7)

AEG made a claim on the insurance, Trell said.
Panish: You made the claim the night MJ died, didn't you?
Trell: I don't recall the date; it wasn't Jun 25th when I sent letter to Taylor
Panish: Were you speaking with Taylor about MJ being sick on the day he died?
Trell: I don't recall speaking with Mr. Taylor on the 25th (ABC7)

Panish asked if Trell discussed w/ Taylor about recouping Dr. Murray's production cost. He said they'd typically pass along the costs. (ABC7)

Trell said he spoke with Randy Phillips about MJ's health and physical condition, as well as Phillips' interaction with Dr. Murray. 

Panish: Did Mr. Phillips tell you MJ was in bad shape prior to June 25?
Trell: Yes, on June 19 (ABC7)

Trell said there were no AEG employees at rehearsal on June 19. He learned about MJ's feeling ill during the executive management meeting. Trell said he never spoke with Dr. Murray about MJ's condition. Randy Phillips learned about MJ's physical condition through Kenny Ortega, the tour director for TII, Trell said. (ABC7)

Panish: Within one week of MJ's death, the executive management was told about MJ poor physical condition?
Trell: The events on June 19, yes (ABC7)

The tour's director Kenny Ortega was being paid based on an agreement laid out solely in emails, AEG General Counsel Shawn Trell told jurors. (AP) "Ortega's contract was a series of emails between us" Trell said. "He didn't have agreement of the nature as other people had on the tour". Trell: I don't recall, but I know initially it was more informal agreement. He (Ortega) was being paid based on the email agreement. (ABC7)

Dr. Murray was an independent contract, Trell said. An agreement is a term of conditions, not only agreement on compensation. "He was rendering services to Mr. Jackson; he had not been engaged for TII tour," Trell testified. (ABC7)

Panish: And Dr. Murray had an agreement with AEG based on the emails?
Trell: No, Dr. Murray didn't have an agreement with AEG (ABC7)

In court, attorneys for Katherine Jackson displayed emails sent to Murray a month before the death of MJ in which Murray's contract terms were laid out. Trell said those emails did not demonstrate an employment relationship.Trell acknowledged, however, that Ortega was paid for his work on the shows despite working under terms laid out only in a series of emails."Kenny Ortega is different from Conrad Murray," Trell testified. (AP) Panish said Ortega didn't have a memorialized agreement. "Kenny Ortega is different from Conrad Murray," Trell said. (ABC7)

Email from Dr. Murray to Wooley on May 29, 2009:"I have performed and continue to fulfill my services to the client in good faith. Therefore, I am asking you to deposit my fee for May in reciprocity of good faith on your part as per our agreement the usual and customary date for deposit is around 15th of each month, by today's date we're 13 days beyond my monthly fee.”
Trell said they had agreed on the compensation for Dr. Murray, but needed to memorialize the deal in an agreement. (ABC7) Email from Wooley to Murray on May 8, 09 details terms of the contract: contracting company, mode of travel, living arrangements in London. Another email shows Wooley asking Dr. Murray for a cancelled check for direct deposit of his monthly compensation. (ABC7)

Email from Gongaware to Brother Michael on 5/6/09 regarding Dr. Murray:
"Done at $150K per month, per MJ."

Trell said Gongaware was authorized to negotiate with Dr. Murray, but he was still subject to an AEG contract.(ABC7) Another email said executive Paul Gongaware informed others that Murray would be "full time" on the tour by mid-May.(AP)

Panish asked if before a contract is written, the "meeting of the minds" is necessary. Trell agreed. (ABC7)

Panish: And Dr. Murray was working for AEG Live in May of 2009
Trell: No, I would totally disagree with that statement (ABC7)

Plaintiff's attorney Brian Panish asked Trell to agree with a statement that Murray was working for AEG. "I would totally disagree with that statement," Trell said, noting that Ortega and Murray were considered independent contractors. (AP)

Trell testified that five days before Jackson's death, top AEG executives were informed the singer was in poor health. By that point, Ortega had sent executives an email titled "Trouble at the front" detailing Jackson's problems.(AP)

Email from Ortega to Phillips on 6/20/09
Trouble at the Front
"I honestly don't think he's ready for this based in his continued physical weakening and deepening emotional state. It is reminiscent if what Karen, Bush, Travis and I remembered just before he fainted causing the HBO Concerts to be canceled. There are strong signs of paranoia, anxiety and obsessive-like behavior. I think the very best thing we can do is get a top Psychiatrist in to evaluate him ASAP. It’s like there are two people there. One (deep inside) trying to hold on to what he was and still can be and not wanting us to quit him, the other in his weakened and troubled state … I honestly felt if I had encouraged or allowed him on stage last night he could have hurt himself. I believe we need professional guidance in this matter." (ABC7 & LA Times)

Phillips turned down the request for a psychiatrist. In emails previously published by The Times, Phillips wrote, "It is critical that neither you, me or anyone around this show become amateur psychiatrists or physicians." (Latimes). Trell said Phillips did not contact a psychiatrist, doctor or any other medical provider, but they had a meeting that same day. "I think someone took it seriously," Trell said. He was not present at the meeting, but it was with Dr. Murray. (ABC7) Trell said the company’s response was to hold a meeting that day with Jackson and his doctor, Conrad Murray. “…so I think they took it seriously,” he said. (LAtimes)

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Shawn Trell will continue to testify and is expected to last all day on the witness stand. Paul Gongaware is next witness. He'll be at the courthouse first thing on Wednesday, assuming they finish with Trell by then. (ABC7)