watchtower: jury trial day 10, candace conti v. watchtower
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1 SUPERIOR COURT OF CALIFORNIA
2 COUNTY OF ALAMEDA
3 BEFORE THE HONORABLE JUDGE ROBERT MCGUINESS
4 DEPARTMENT 22
5
6
7 JANE DOE, ) No. HG115588324)
8 Plaintiff, )) A SS IG NE D F OR A LL P UR PO SE S T O
9 v. ) JUDGE ROBERT McGUINESS,) D EP AR TM EN T 2 2
10 WATCHTOWER BIBLE AND )T RA CT S OC IE TY O F N EW )11 YORK, INC., a )
corporation, et al., )12 )
Defendants. )13 )
_____________________)14
15 JURY TRIAL
16 JUNE 14, 2012
17 D AY 1 0
18
19 ATKINSON-BAKER, INC.COURT REPORTERS
20 (800) 288-3376www.depo.com
21
22 REPORTED BY: KATHRYN LLOYD, CSR NO. 5955
23
24 JOB NO: A605EC5
25
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1 APPEARANCES (CONTINUED)
2 FOR THE DEFENDANT:
3 THE WATCHTOWER BIBLE AND TRACT SOCIETY
4 O F N E W Y OR K, I NC .
5 JACKSON LEWIS, LLP
6 B Y: R OB ER T SC HN AC K, E SQ .
7 801 K Street, Suite 2300
8 Sacramento, CA 95814
9 Tel: (916) 341-0404
10 Fax: (916) 341-0141
11 Email: [email protected]
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1 INDEX OF EXAMINATIONS:
2 PAGE
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4 JURY INSTRUCTIONS BY: THE COURT 12
5 CLOSING ARGUMENT BY: MR. SIMONS 14
6 CLOSING ARGUMENT BY: MR. SCHNACK 19
7 REBUTTAL ARGUMENT BY: MR. SIMONS 24
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1 INDEX OF EXHIBITS:
2 NUMBER ADMITTED
3 (NO EXHIBITS WERE ADMITTED)
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1 JUNE 14, 2012 10:17 A.M.
2 PROCEEDINGS
3 (Whereupon, the following proceedings
4 were heard outside the presence of jurors)
5 TH E CO UR T: B ac k o n t he r eco rd i n th e m at te r
6 of the Candace Conti versus The Watchtower Bible and
7 Tract Society of New York, Inc.
8 The record should reflect that the jury
9 returned a verdict yesterday; that the issue of punitive
10 damages was bifurcated; that they determined, pursuant
11 to special verdict that was agreed upon, that The
12 Watchtower Bible and Tract Society of New York, Inc. did
13 act with malice.
14 Relative to the proceedings this morning, and
15 t ha t m ay o cc ur i n t hi s f as hi on a t t hi s t im e, b as ed u po n
16 p ri or c ou rt o rd er s t ha t I m ad e p re tr ia l i n t er ms o f
17 amendment of Complaint, timing and disclosure of
18 financial information.
19 Regarding financial information, by
20 a gr ee me nt , t he C ou rt i s g oi ng t o f ir st r ea d t o t he j ur y
21 t hi s m or ni ng s om et hi ng t ha t I w il l t el l t he m i s a
22 stipulated fact. And that stipulation is as follows:
23 "It is hereby stipulated to the
24 Defendant, Watchtower Bible and Tract Society
25 of New York, Inc. and Plaintiff, that
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1 Watchtower has current assets of $30 million
2 in cash, and real property estimated to be
3 valued at approximately $1 billion."
4 It is so stipulated.
5 To Defense counsel, Mr. Schnack, and to
6 P la in ti ff 's c ou ns el , M r. S im on s. C or re ct ? I a m a ll ow ed
7 t o r ea d t ha t o ne s ti pu la te d f ac t t o t he j ur y?
8 MR. McCABE: Correct, your Honor.
9 MR. SIMONS: Correct, your Honor.
10 THE COURT: Okay. Moving on. Mr. Simons
11 presented to the Defense, Casey 3949, Punitive Damages
12 Corporate Defendants, Second Phase.
13 The Defense, appropriately in the Court's
14 opinion under the Gagnon case felt that the Casey
15 instruction was deficient relative to what the jury must
16 consider, vis-a-vis, the current draft of Casey that
17 basically said in quotes.
18 "Is there a reasonable relationship between
19 the amount of punitive damages and Plaintiff's harm?"
20 After discussion -- multi-level discussions
21 between Court and counsel, I believe that the parties
22 have agreed that this instruction, as modified, may be
23 read as the instruction given to the jury this morning.
24 I am going to put it in the record -- so
25 t he re c an b e n o q ue st io n a bo ut i t - - a s a me nd ed a s
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1 follows:
2 " Yo u m us t n ow d ec id e t he a mo un t, i f
3 any, that you should award punitive damages.
4 The purposes of punitive damages are to punish
5 a wrongdoer for the conduct that harmed the
6 Plaintiff and to discourage similar conduct in
7 the future.
8 T he re i s n o f ix ed f or mu la f or
9 determining the amount of punitive damages,
10 a nd yo u a re no t r eq ui re d t o a wa rd an y p un it iv e
11 damages. Any amount of punitive damages that
12 you award must bear a reasonable relationship
13 to Candace Conti's harm.
14 If you decide to award punitive
15 damages, you should consider all of the
16 following factors separately in determining
17 the amount.
18 (A) How reprehensible was Defendant,
19 Watchtower Bible and Tract Society Inc.'s
20 conduct?
21 In deciding however reprehensible a
22 Defendant's conduct was, you may consider,
23 among other factors:
24 (1) whether the conduct caused
25 physical harm;
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1 (2) whether the Defendant disregarded
2 the health or safety of others;
3 (3) whether the Defendant's conduct
4 involved a pattern or practice;
5 (4) whether the Defendant acted with
6 trickery or deceit.
7 ( B) I n v ie w o f W at ch to we r B ib le a nd
8 Tract Society Inc.'s financial condition, what
9 amount is necessary to punish it and
10 discourage future wrongful conduct?
11 You may not increase the punitive
12 damage award above an amount that is otherwise
13 appropriate merely because Defendant has
14 substantial financial resources.
15 A nd t he a wa rd y ou i mp os e m ay n ot
16 exceed that Defendant's ability to pay.
17 P un it iv e d am ag es mu st no t b e u se d t o p un is h a
18 defendant for the impact of its alleged
19 misconduct on persons other than Candace
20 Conti."
21 As read, counsel agreed to, relative to the
22 discussion of the Court and yourself?
23 Mr. Simons?
24 M R. S IM ON S: Y es .
25 T HE C OU RT : M r. S ch na ck ?
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1 M R. S CH NA CK : S ub je ct t o o ur p ri or m ot io ns
2 and that to withdraw punitive damages from the jury, we
3 do agree with this.
4 T HE C OU RT : S ub je ct t o p ri or m ot io ns i t
5 involves.
6 A ll r ig ht . D o w e h av e e ve ry bo dy w it h u s?
7 (Break taken)
8 (Whereupon, the following proceedings
9 were heard in the presence of jurors)
10 TH E CO UR T: F ir st o f a ll t o t he j ury , t ha nk
11 you, as always, for your incredible commitment to this
12 c as e. I 'm g oin g to a dd res s th is n ow. I n ote d, w hen I
13 r ea d t he j ur y v er di ct y es te rd ay t ha t - - a nd I t ol d y ou
14 y ou w ou ld h av e t o d o a l it tl e b it m or e j ur y w or k,
15 otherwise known as judging, I gave you an instruction.
16 A nd I t hi nk yo u ha ve a se ns e o f w ha t I t ol d t he l aw ye rs .
17 I don't pretend to be omniscient up here.
18 I d on' t t hi nk i t i s a ny m yst er y t o y ou, I
19 h av e b ee n m ak in g a l ot o f d ec is io ns i n t hi s c as e o ut si de
20 o f y o ur p ur vi ew . A nd I 'm g oi ng t o t a lk a bo ut t ha t w h en
21 t he d us t s et tl es o n t he n ex t d ec is io n y ou a re g oi ng t o
22 make.
23 B ut w he n I r ea d t he i ns tr uc ti on , i t s ai d i t
24 w ou ld b e d e ci de d l a te r. A nd I d id n' t m ak e t h at
25 instruction. That's the instruction the courts give
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1 t hr ou gh ou t t h e S ta te o f C al if or ni a. A nd t he n w h en I
2 n ot ic ed i n t he b od y o f t he l an gu ag e r ea d b ac k, a nd w he n
3 I w en t h om e l as t n ig ht a nd I r ea d t ha t, I r ea li ze d i t
4 doesn't say by whom.
5 A lt ho ug h I d id n' t l ik e i t, I 'm g oi ng t o t ak e
6 responsibility for it, I'm going to get better about
7 that communication to a jury because I never thought
8 a bo ut i t b e fo re . T he y s p en t e i gh t y e ar s t r yi ng t o g e t
9 these instructions right. Always remember, whether you
10 are a lawyer, whether you are doing business otherwise,
11 the art of communication often carries the day.
12 So I w ant t o b e v ery c le ar , w hen I t rie d to
13 walk in your shoes, I realized it didn't say decided
14 later by whom. So I just wanted to say that as you
15 start this morning.
16 L et m e e xp la in t he p ro ce ss s o y ou c an j us t
17 get a sense. In a moment I'm going to read to you a
18 s ti pu la te d f a ct . I t i s g oi ng t o b e a bo ut t hr ee
19 s en te nc es l on g. I a m t h en g oi ng t o r e ad a n i n st ru ct io n
20 t ha t w e c a n w or k o u t t hi s m o rn in g. O ne i ns tr uc ti on .
21 Then counsel are going to argue their respective
22 positions.
23 Mr. Simons, for Plaintiff, will start first,
24 Mr. Schnack, for The Watchtower Bible and Tract Society
25 will then respond, and then Mr. Simons will have time
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1 f or a r eb ut ta l a rg um en t. A ft er w hi ch y ou w il l c on ve ne
2 again to deliberate, the question is going to be asked
3 of you.
4 Once you have done that and after listening
5 t o t hi s j ud ge , a l it tl e b it a ft er t ha t, y ou w il l b e
6 through with your jury service and commitment to this
7 case.
8 A nd I l oo k f or wa rd t o a dd re ss in g y ou w he n i t
9 is done for many good reasons, including the obvious
10 commitment of time and interest and dealing with the
11 issues presented.
12
13 JURY INSTRUCTION
14 TH E CO UR T: S o, t ha t b ein g t he c as e, l et me
15 read to you the stipulated fact:
16 It is hereby stipulated between Defendant,
17 Watchtower Bible and Tract Society of New York, Inc. and
18 Plaintiff, that Watchtower has current assets of
19 $30 million in cash and real property estimated to be
20 v al ue d a t a pp ro xi ma te ly $ 1 b i ll io n. I t i s s o
21 stipulated.
22 T ha t i s t he e vi de nc e b y s ti pu la ti on . T ha t i s
23 a s ti pu la te d f a ct . T ha t i s t he e vi de nc e y o u a re t o
24 consider this morning within your deliberations
25 contextually and concurrently with the following
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1 instruction:
2 Casey 3949 Punitive Damages Corporate
3 Defendant Second Phase as amended by agreement:
4 Y ou m us t d ec id e t he a mo un t, i f a ny , t ha t y ou
5 should award in punitive damages. The purposes of
6 punitive damages are to punish a wrongdoer for the
7 conduct it harmed the Plaintiff and to discourage
8 similar conduct in the future.
9 There is no fixed formula for determining the
10 amount of punitive damages, and you are not required to
11 award any punitive damages. Any amount of punitive
12 damages you award must bear a reasonable relationship to
13 Candace Conti's harm.
14 If you decide to award punitive damages, you
15 should consider all of the following factors separately
16 in determining the amount:
17 (A) How reprehensible was Defendant,
18 Watchtower Bible and Tract Society Inc.'s conduct?
19 In deciding how reprehensible a defendant's
20 conduct was, you may consider, among other factors:
21 (1) whether the conduct caused physical harm;
22 (2) whether the Defendant disregarded the
23 health or safety of others;
24 (3) whether the Defendant's conduct involved
25 a pattern or practice;
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1 (4) whether the Defendant acted with trickery
2 or deceit.
3 (B) In view of Watchtower Bible and Tract
4 Society, Inc.'s financial condition, what amount is
5 necessary to punish it and discourage future wrongful
6 conduct?
7 You may not increase the punitive damages
8 award above an amount that is otherwise appropriate
9 merely because Defendant has substantial financial
10 r es ou rc es . A ny a wa rd y ou i mp os e m a y n ot e xc ee d t h at
11 defendant's ability to pay.
12 P un it iv e d am ag es m ay n ot b e u se d t o p un is h a
13 defendant for the impact of its alleged misconduct of
14 persons other than Candace Conti.
15 Mr. Simons.
16
17 CLOSING ARGUMENT BY MR. SIMONS
18 MR. SIMONS: Ladies and Gentlemen, thank you
19 all once again for your dedication and your service and
20 the seriousness of which you have approached your tasks
21 in this case.
22 A nd w e d o h av e t he o ne r em ai ni ng i ss ue f or u s
23 t o d is cu ss a nd f or y ou t o d et er mi ne , a nd t ha t i s t he
24 question, as his Honor has put forth in the instruction,
25 of punitive damages to discourage future conduct in the
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1 future that would be similar to what harmed Candace
2 Conti in this case.
3 A nd i f y ou b el ie ve , f ro m a ll y ou h av e s ee n
4 and heard, that Watchtower New York and its managing
5 agents, the governing body, fully appreciate and
6 understand that the policy of secrecy which allows for
7 an identified child sex offender to strike again is
8 w ro ng a nd t ha t i t w as w ro ng i n 1 98 3 a nd i t r em ai ns w ro ng
9 t od ay , t he n t he re i s n o n ee d f or f ur th er d am ag es o f a
10 punitive nature.
11 Bu t if yo u fi nd f ro m a ll y ou h av e s ee n a nd
12 heard that the understanding and acceptance of the need
13 t o c ha ng e t ha t p ol ic y a re n ot t he re , t he n t he l aw
14 authorizes you and gives you the power, through the use
15 of punitive damages, to provide an incentive to provide
16 discouragement, if you will, of future repetitions of
17 the type that we have learned about here.
18 A nd i f w e c ou ld l oo k a t t he i ns tr uc ti on s v er y
19 briefly:
20 "The purposes of the punitive damages
21 are to punish for the conduct that harmed
22 Candace Conti and to discourage similar
23 conduct in the future."
24 L et 's l oo k a t t he c ri te ri a t ha t w e a re g oi ng
25 t o b e c on si de ri ng . T he re a re a n um be r o f f ac to rs t he
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1 instruction has laid out for consideration, including:
2 "How reprehensible was the Defendant's
3 conduct?"
4 This was the question that you previously
5 decided with regard to what is despicable conduct,
6 deliberate indifference.
7 And, specifically, we look at whether the
8 c on du ct c au se d p h ys ic al h ar m. W e k n ow t ha t i t d id .
9 We look at whether the Defendant disregarded
10 t he h ea lt h a n d s a fe ty o f o t he rs . A nd t ha t h a s b e en y ou r
11 f in di ng . T ha t i s w ha t t he p ol ic y' s r o ot a nd t he
12 i nf or ma ti on t ha t w e s aw i n t he e ar li er p ar t o f t he t ri al
13 established by clear and convincing evidence.
14 "Whether the conduct involved a pattern and
15 practice."
16 A nd w e k no w t ha t i t d id b ec au se t he B od y o f
17 Elder Letter must be followed by every elder in every
18 congregation throughout the country with no power, no
19 discretion to deviate whatsoever.
20 A nd s o, e ve n t ho ug h y ou h av e f ou nd t ha t t he
21 Watchtower's fault was 27 percent of what caused Candace
22 Conti's harm, they are 100 percent responsible for this
23 p ol ic y a n d i t s e n fo rc em en t. A nd t ha t i s w ha t t h is
24 p ar ti cu la r p ar t o f t he i ss ue t ha t y ou a re n ow g oi ng t o
25 address concerns.
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1 "Whether the Defendants acted with deceit or
2 trickery."
3 A nd I w ou ld s ub mi t t o y ou , L ad ie s a nd
4 Gentlemen, that allowing a known child sex offender to
5 s it i n t he c on gr eg at io n a nd t o g o o ut i nt o f ie ld s er vi ce
6 a nd t o h ide wh o he i s f ro m th e pa re nt s a nd f ro m t he
7 others in the congregation who could act to protect
8 c hi ld re n i s d ec ei t. A nd t ha t i s t he r oo t o f t he p ro bl em
9 of this policy.
10 The second category that is listed is whether
11 o r n ot , i n v ie w o f t he f in an ci al c on di ti on , t he re i s a n
12 appropriate amount to discourage future wrongful
13 conduct.
14 You may not increase the punitive damage
15 award above an amount that is otherwise appropriate
16 merely because this Defendant is a billion-dollar plus
17 organization.
18 We d o n ot p un is h t hat -- w el l, t ha t i s n ot
19 t he p ur po se o f t h e p un it iv e d am ag es . H ow ev er , i t i s
20 appropriate to consider it in determining the amount of
21 punitive damages just for two reasons.
22 F ir st o f a ll , w e c an no t e xc ee d t he
23 D ef en da nt 's a bi li ty t o p a y. T ha t, I d on 't t hi nk i s a
24 relevant factor, given the amount of assets that are
25 here.
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1 And, secondly, the fact that they have
2 substantial resources is not a reason to increase the
3 award above what is appropriate.
4 B ut t ur ni ng t ha t a ro un d i s a ls o n ot
5 appropriate to award less than what is necessary to
6 a cc om pl is h t h e g o al h er e. A nd t ha t i s t o c h an ge t hi s
7 policy, discourage it from being conducted in the
8 f ut ur e. T ha t i s t he m is si on t ha t C a nd ac e C o nt i s e t o ut
9 on three years ago.
10 C an w e g o b ac k t o t he b eg in ni ng ?
11 Th er e i s a ru le y ou m ust f ol lo w. An d t ha t i s
12 t ha t t he a mo un t o f p un it iv e d am ag es , i f y ou s o c ho os e t o
13 award, must bear a reasonable relationship to Candace
14 Conti's harm.
15 Y ou h av e f ou nd t ha t t o b e i n a d ol la r a mo un t.
16 And there was really not contrary evidence or argument
17 a s t o t ha t a mo un t.
18 An d so we m us t fi nd : Wh at i s a r ea so na bl e
19 relationship if you choose to award these kinds of
20 damages to the harm?
21 A nd s om e p eo pl e m ay v ie w t ha t a s a o ne -t o- on e
22 ratio, that the amount of the damages necessary to
23 d is co ur ag e t he c on du ct i n t he f ut ur e i s e qu al t o t he
24 a mo un t o f t he d am ag es o f t he h ar m t ha t C an da ce C on ti
25 suffered.
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1 Some people may feel that this is childhood
2 s ex ua l a bu se , a nd i t h as b ee n f ou nd t o b e d es pi ca bl e
3 conduct, and that amount should be ten times the amount
4 of harm that Candace Conti has suffered.
5 I w oul d s ub mi t to y ou th at i n th e l aw , w e
6 have a principle called Treble damages. And it assesses
7 a p un is hm en t w he re a p ar ty w as f ou nd t o h av e a ct ed i n a
8 manner that requires and is appropriate to administer
9 punishment by awarding three times the amount of the
10 actual harm that is measured in compensable damages.
11 And I would submit to you, Ladies and Gentlemen, that
12 that is the appropriate measure here.
13 I w ou ld l ik e t o s ay , o n b eh al f o f C an da ce
14 C on ti , t ha t y ou w e t ru st i n y ou r j ud gm en t a nd w e w il l
15 a cc ep t it . T ha nk y ou .
16 T HE C OU RT : M r. S ch na ck .
17
18 CLOSING ARGUMENT BY MR. SCHNACK
19 M R. S CH NA CK : L ad ie s a nd G en tl em en o f t he
20 j ur y, t he j ud ge h as i ns tr uc te d y ou t ha t i t i s y ou r
21 c ho ic e t o a wa rd o r n o t t o a wa rd p un it iv e d a ma ge s. Y ou
22 h av e b ee n r ea d t he i ns tr uc ti on a nd y ou h av e s ee n i t
23 there.
24 D oe s W at ch to we r n ee d t o b e p un is he d? T he
25 policies of Watchtower continue to evolve. You heard
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1 Monica Applewhite testify that Watchtower has published
2 articles and educational materials for parents, for its
3 church members starting in the 1970s and into the '80s
4 a nd i t c on ti nu es u p t o t he p re se nt d ay .
5 Those materials were in the forefront of
6 educational materials for parents and for members in
7 this regard.
8 Plaintiff's counsel has made a lot of the
9 J ul y 1 , 1 98 9 l et te r. I nd ee d, t ha t' s w ha t h e r ef er re d
10 h er e t o t o da y. H ow ev er , y o u a ls o h e ar d M r . S hu st er
11 t es ti fy t ha t t h at w as n ev er t he l as t w o rd . I t w a sn 't
12 the be-all end-all on policies.
13 So l et me j us t br ie fl y g o th ro ug h a f ew o f
14 t he o th er A ll B od ie s o f E ld er s L et te rs t ha t w er e i n
15 evidence before you today.
16 Remember the March 23, 1992 letter? Several
17 references there that the elders in the congregation
18 should be conscious of victims of abuse, treat them with
19 thoroughness and kindness, that you should be tenderly
20 compassionate to them.
21 I t a ls o s ay s i n t ha t s am e l et te r:
22 " If a c ur re nt c as e o f c hi ld a bu se
23 comes to light in the congregation, the elders
24 s ho ul d d o w ha t t he y c an to pr ot ec t t he
25 children from further abuse. These policies
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1 are evolving as we go forward."
2 In evidence was the August 1, 1995 letter.
3 There it says:
4 "Steps should be taken to protect the
5 child or other children from further sexual
6 abuse once abuse became apparent."
7 T he e ld er s, t oo , w an te d t o a ct - - s ho ul d a ct
8 in a way that demonstrates their protective care since
9 the word "overseer" as that's used within the church,
10 carries the thought of one who watches over in guarding
11 and shepherding the flock.
12 I n t ha t s am e l et te r, t he A ug us t 1 , 1 99 5
13 l et te r t ha t y ou h ad i n e vi de nc e a nd t ha t y ou h ad i n t he
14 r oo m w it h y ou , i t a ls o s ay s o n t he f ir st p ag e t ha t:
15 "It would be appropriate to talk very
16 frankly with the abuser that he should never
17 b e i n t he pr es en ce of a ch il d w it ho ut an ot he r
18 adult being present."
19 An d ju st o ne l ast o ne he re t hi s m orn in g. T he
20 M ar ch 1 4, 1 99 7 A ll B od ie s o f E ld er s L et te r t ha t w as
21 b ef or e y o u. T ha t a d dr es se d t h e i s su e o f w he n a m em be r
22 m ov es f ro m o n e c on gr eg at io n t o a n ot he r. A nd i f t h at
23 m em be r i s k no wn t o b e a c hi ld m ol es te r, t ha t l et te r
24 directed the elders in the local congregations to:
25 "Outline his background, including
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1 any needs for cautions that should be provided
2 t o t he b od y o f e ld er s. "
3 That letter would be presented to the
4 c on gr eg at io n t o w hi ch t ha t p er so n w ou ld m ov e. A nd s o,
5 again, that's taking steps to help prevent child abuse.
6 M r. S hu st er a ls o t es ti fi ed , w he n h e w as u p o n
7 t he s ta nd , t ha t t he c hu rc h h as a l on g h is to ry , s in ce h e
8 has been an elder, since '79, that child abusers cannot
9 be appointed to serve as elders, as ministerial servants
10 or pioneers.
11 That was reiterated in the March 14, 1997
12 that I just referenced.
13 The policy of Watchtower has continued to
14 emerge on a case-by-case basis in which the Service
15 Department elders sent letters to the local
16 congregations, to the local elders to strongly warn, if
17 they have a known child abuser within their
18 congregation, that he should not be alone with children,
19 a nd h ow t he e ld er s c an d ea l w it h t ha t i f t he m em be r t ha t
20 is an abuser violates those instructions.
21 N ow , I h av e n o d ou bt t ha t y ou r v er di ct
22 yesterday has already sent a message to Watchtower, and
23 w e w il l s oo n s ee a no th er A ll B od ie s o f E ld er s L et te r
24 addressing the very issues that were raised.
25 On e th in g I w ou ld a sk yo u to k ee p i n mi nd .
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1 The Jehovah's Witnesses Church is not the Catholic
2 Church, that it has had verdict after verdict after
3 v er di ct o ve r t he y e ars . I t' s b een in t he p re ss . We a re
4 a ll a wa re o f i t. T his i s t he f ir st v er di ct t hat t he
5 J eh ov ah 's W it ne ss es c hu rc h h as f ac ed . S o, a ga in , i t i s
6 not the Catholic Church with multitudes of cases over a
7 couple of decades.
8 W e h av e b ee n o n t he t el ep ho ne , b ot h l as t
9 night and early this morning, speaking with the managing
10 directors of Watchtower and the elders in the --
11 M R. S IM ON S: I 'm g oi ng t o o bj ec t, y ou r H on or .
12 It is not evidence.
13 TH E CO UR T: W el l, i t i s a rgu me nt . B ut ,
14 c ou ns el , w hy d on 't y ou g o f or wa rd f or a m in ut e t o m ak e
15 s ur e i t i s l eg it .
16 MR. SCHNACK: Your Honor, I didn't interrupt
17 his argument.
18 THE COURT: Understood.
19 MR . SC HN AC K: A s I me nt io ne d, we w er e on th e
20 phone to managing directors of Watchtower and to the
21 e ld er s i n t he S er vi ce D ep ar tm en t. A nd I c an t el l y o u
22 t he y a re s tu nn ed b y t he v er di ct . A ga in , I m en ti on ed , i t
23 i s t he f irs t o ne . A nd i t' s, i nde ed , t he f irs t o ne w e
24 a re a ll a wa re o f t ha t h as e ve r f ou nd l ia bi li ty o n a
25 congregation in a church based on a congregation member
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1 causing harm to the child of another member.
2 However, I sincerely believe, and I put this
3 t o y ou , t ha t W at ch to we r d oe s n ot n ee d t o b e p un is he d b y
4 another monetary award.
5 W hy i s t ha t?
6 Ms. Conti said she wanted to change policies.
7 T ha t' s w hy s he b ro ug ht t hi s s ui t. An d w e f ee l b ad f or
8 M s. C on ti . B ut I c an a ssu re y ou, a nd I c an a ssu re h er ,
9 that Watchtower's policies continue to evolve. And I
10 can safely say that, with her verdict yesterday, Ms.
11 C on ti h as s uc ce ed ed . I e nc ou ra ge y ou t o a w ar d n o
12 punitive damages in this case.
13 A ga in , I t ha nk y ou f or y ou r s er vi ce , f or y ou r
14 time and your attention.
15 Thank you, your Honor.
16 T HE C OU RT : A ny r eb ut ta l, M r. S im on s?
17 M R. S IM ON S: Y es .
18
19 REBUTTAL ARGUMENT BY MR. SIMONS
20 BY MR. SIMONS:
21 Q. I am sad to say that I did not hear that the
22 policy will be changed.
23 I a m s ad t o h ea r t ha t t he g ov er ni ng b od y h as
24 n ot s en t a p er so n t o t hi s e vi de nt ia ry p ha se o f t he t ri al
25 to so testify.
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1 I a m s ad t o h ea r t ha t we a re st il l t alk in g
2 about Dr. Applewhite, who said great education program
3 f or p ar en ts . I 'm n ot s ay in g a t hi ng a bo ut t he c hi ld s ex
4 abuse prevention program.
5 I a m s ad t o h ea r f ro m c ou ns el 's c om me nt s t ha t
6 we have representations but no evidence.
7 W e h av e n o w ay t o b el ie ve t ha t t hi s p ol ic y
8 w il l b e c ha ng ed i n a ny m an ne r o th er t ha n f ro m t he
9 o ut si de , b y t he p ow er t ha t t he l aw g iv es t o y ou .
10 And, therefore, I ask you to exercise it.
11 Thank you.
12 TH E CO UR T: O ka y. Al l ri gh t. M r. B ai li ff ,
13 w ou ld y ou b e k in d e no ug h t o p ut t he j ur y - - I b el ie ve
14 they are in Department 21.
15 Y ou h av e b ee n t he m os t m ob il e j ur y I h av e
16 had. So, again, thank you for your consideration,
17 patience and mobility.
18 (Whereupon, the following proceedings
19 were heard outside the presence of jurors)
20 TH E CO UR T: A ll r ig ht . C ou ns el , I w il l h and
21 y ou t he i ns tr uc ti on . I wa nt y ou t o a ll t ak e a l oo k a t
22 it again as modified and the special verdict form before
23 I g iv e i t t o t he j ur y.
24 S o, I 'l l s ta rt w it h M r. S im on s a nd t he n t o
25 Mr. Schnack.
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1 M R. S IM ON S: T o C ha nc e?
2 THE COURT: No. Ms. Eckert.
3 M R. S CH NA CK : T he se a re b ot h f in e, J ud ge .
4 M R. S IM ON S: Ye s, t he y a re .
5 T HE C OU RT : C ou ns el 's , e ac h a nd a ll , h av e
6 reviewed the special verdict form and the Casey
7 instruction as revised by agreement which will now be
8 given to the jury for their consideration during
9 deliberations.
10 Al l ri gh t. A nd t he c ou rt wi ll s ta nd i n
11 recess, pending --
12 O h, l et 's t al k a l it tl e b it - - I , o f c ou rs e
13 w il l d o t he sa me t hi ng I h ave d on e w it h y ou. I w oul d
14 l ik e t o h av e y ou a l it tl e c lo se r. An d i f y ou ne ed a
15 room, I will try to find one for you. But you are
16 w el co me t o h a ng a ro un d t h e c o ur tr oo m. O r i f y ou n ee d
17 a no th er p la ce , I w il l t ry t o f in d o ne f or y ou .
18 (Break taken)
19 (Whereupon, the following proceedings
20 were heard in the presence of jurors)
21 TH E CO UR T: A ll r ig ht . T he r eco rd s ho ul d
22 reflect that Ms. Kraetsch is here with us by agreement
23 w it h M s . C o nt i. M r. S im on s' p ar tn er i s h e re , M r .
24 J as po vi ce i s s it ti ng i n f or h im a t t hi s t i me . C or re ct ,
25 Ms. Conti?
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1 M S. C ON TI : C or re ct .
2 TH E CO UR T: D o we h av e a v er di ct ?
3 M R. F OR EP ER SO N: W e d o, y ou r H on or .
4 TH E CO UR T: A ll r ig ht . M ad am Cl er k, i f y ou
5 would be kind enough to read the verdict.
6 T HE C LE RK : L ad ie s a nd G en tl em en o f t he j ur y,
7 y ou w il l n ow l is te n t o t he r ea di ng o f t he v er di ct
8 omitting the title of court and cause.
9 S pe ci al V er di ct , P ha se 2 : W e, t he j ur y i n
10 the above-entitled action, answer the question submitted
11 t o u s a s f o ll ow s:
12 Q ue st io n 1 : D id y ou a wa rd p un it iv e d am ag es
13 against The Watchtower Bible and Tract Society of New
14 York, Incorporated?
15 A ns we r: Y es .
16 I f y ou r a ns we r t o N um be r 1 i s y es , w ha t
17 amount of punitive damages do you award?
18 A ns we r: $ 21 ,0 00 ,0 01 . D at ed J un e 1 4, 2 01 2,
19 Presiding Juror, Hugh Huey.
20 TH E CO UR T: M r. H ue y, i s t ha t th e ju ry 's
21 verdict?
22 MR. FOREPERSON: Yes, your Honor.
23 TH E CO UR T: A ll r ig ht . W ou ld yo u li ke t he
24 jury polled?
25 M R. S CH NA CK : Ye s, y ou r H on or .
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1 THE COURT: All right. May I have the
2 verdict form?
3 F ir st o f a ll , y ou w er e a sk ed a q ue st io n:
4 Do you award punitive damages against The
5 Watchtower Bible and Tract Society of New York, Inc.?
6 The answer is yes.
7 How many voted yes?
8 (Jurors raised hands)
9 TH E CO UR T: A ll r ig ht . T he r eco rd m ay
10 reflect ten jurors voted yes.
11 A ll r ig ht . A nd t he n h av in g a ns we re d t he
12 question "yes," the amount of punitive damages awarded
13 is $21,000,001.
14 How many jurors voted that punitive damages
15 be awarded in this matter against Watchtower Bible and
16 T ra ct S oc ie ty o f N ew Y or k, I nc . i n t he a mo un t o f
17 $21,000,001?
18 (Jurors raised hands)
19 TH E CO UR T: T he r ec or d ma y r ef le ct - - le t m e
20 make sure I got the accounting right.
21 (Jurors raised hands)
22 T HE C OU RT : N in e j ur or s v ot ed f or t ha t
23 verdict.
24 That being the case, the jury having been
25 polled, this portion of the verdict is now entered.
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1 S ev er al w ee ks a go I i nv it ed y ou i nt o m y
2 c ou rt ro om , a n d I s ai d, " We lc om e t o j u dg in g. " A nd I a ls o
3 t ol d y ou t ha t t he o nl y t hi ng a bo ut j ud ge s i s w he n t he y
4 m ak e t o ug h d e ci si on s. I t hi nk w e a ll a gr ee t hi s h as
5 been a very difficult case.
6 I t ol d t he l aw ye rs e ar ly o n o ut si de o f y ou r
7 p re se nc e, t hi s i s a c as e t ha t i s t ou gh o n t hi s j ud ge ,
8 tough on the professionals involved, and tough on the
9 jurors.
10 A nd I d on 't t hi nk t he re i s a ny m ys te ry w hy
11 t ha t i s t he c as e. T he s ub je ct m at te r, i ts n at ur e, i ts
12 evolution, its fundamental violation of trust -- and
13 let's be clear, that most decent human beings would
14 prefer to have trust in their lives, whether it's their
15 friends, their coaches or whatnot.
16 And clearly and equally the circumstance, I
17 don't think anyone of good character would wish or would
18 h av e a ny s up po rt r el at iv e a t a ll t o t he n at ur e o f t he
19 circumstance and conduct.
20 This case was further complicated by the
21 p as sa ge o f t ime in t er ms o f a ll t ha t h as g on e o n. A nd
22 throughout, and life judging, people can have very
23 different opinions, as you did, in terms of your
24 discussions as to what the result should be.
25 This was a tough case. And I told you when
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1 w e s tar te d t hat my p re fe re nc e i s n ot t o d o a l ot o f
2 s id eb ar s. A nd, a ga in , a s I si t h er e, I m ad e a n um be r o f
3 decisions about what evidence you could hear. That's
4 w ha t j ud ges d o. A nd t he re w as a l ot o f c omp le xi ty i n
5 t er ms o f t he t im e a nd t he n at ur e a nd c ir cu ms ta nc e a s t o
6 both sides.
7 M y g oa l - - a nd p er ha ps o th er 's g oa ls - - w hi ch
8 I m ad e - - w as t o t ry t o f as hi on i t s o th at a ny p rej ud ic e
9 a ny o f u s h ad w ou ld n ot b e v is it ed u po n y ou r
10 deliberation. I made in limine instructions in this
11 c as e. I di d i t be ca us e I t ho ug ht i t w as t he r ig ht t hi ng
12 to do as a judge.
13 I w ill sa y to e ac h o f yo u, h ow y ou c arr ie d
14 o ut y ou r t as ks - - a nd , c an di dl y, I d on 't s ay t hi s i n
15 e ve ry c as e - - i t i s n ot a bo ut m on ey , i t' s n ot a bo ut t he
16 n at ur e, a nd w it h t he v er di ct a s a m at te r o f m on ey - -
17 e ac h o f y ou c ou ld - - I h ad a n a lt er na te a ro un d h er e f or
18 t he l as t se ve n a nd a h al f d ay s -- m ay I s ay t hat th at i s
19 a n u nus ua l c irc um st an ce . I t i s. B ut h ow y ou w en t a bo ut
20 your task was quite impressive.
21 Certainly, I think early on you understood
22 t he s ol em ni ty o f w ha t t hi s c as e w as a bo ut a nd w ha t y ou r
23 t as k i s a s j ur or s. An d h ow y ou d id i t w it ho ut a ny t in ge
24 of what certainly I or anyone else in this courtroom
25 a gr ee s w it h y ou r v er di ct , h ow y ou w en t a bo ut i t, t he
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1 decency you showed of the fundamental understanding of
2 the importance of what you considered was obvious,
3 c er ta in ly t o m e, a nd I w ou ld h op e t o a ll p ar ti es
4 involved in this case.
5 Th is i s s er io us s tu ff . A nd a s a s oc ie ty , t he
6 c ha ll en ge - - y ou r c ha ll en ge a s j ur or s i s t o s it i n
7 judgment.
8 B ut t he c ha ll en ge i s: H ow c an e ve ry on e g et
9 better in terms of recognition, dealing and whatnot?
10 A nd t he re i s n o m ag ic b al l t o t ha t.
11 B ut w ha t i s h ea rt en in g i s t ha t e ac h o f y ou
12 could take the substantial challenge here for the amount
13 of days involved in your everyday lives and render as
14 diligent a judgment collectively as you did.
15 Mr. Huey, I can say this: You had a number
16 of questions. Each of those questions was thoughtful,
17 well-paced, in terms of the time of deliberations up to
18 t ha t p oi nt , a nd i ns ig ht fu l, i nc lu di ng T ab le A . S o w e
19 knew.
20 But, again, we can all have disagreements as
21 t o w ha t h as g on e h er e a nd t he r es ul t a nd w ha tn ot , b ut
22 anybody objectively observing knew that you were very
23 s er io us a bo ut w ha t y ou w er e d o in g. A nd , f o r t ha t, I
24 w il l, I d o, I h av e t ha nk ed y ou b ef or e, b ut I t ha nk y ou
25 a s d e ep ly f ro m t hi s p o si ti on a s I c an . B ec au se ,
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1 again --
2 I a ct ua ll y h ad o ne o f m y s on s s ay , " Da d, y ou r
3 hair seems to have gotten a little whiter."
4 T he h on es t a ns we r i s: I d id n' t k no w i t c ou ld
5 g et a ny w hi te r. A nd i t p er hap s d id .
6 But the respect you showed everyone, the
7 a mo un t o f t im e y ou d ed ic at ed t o t he t as k, h ow y ou w en t
8 a bo ut i t is -- I t ol d y ou w he n we fi rs t m e t e a ch
9 other -- it is what distinguishes this country from all
10 others.
11 I a m h op ef ul - - a nd p le as e u nd er st an d i n
12 t er ms o f t he m an ag em en t o f t hi s c as e a s a j ud ic ia l
13 officer, in terms of the interruptions, in terms of the
14 t im in g. No w, a lo t o f t hi s, a s a m at te r o f l aw, i s w ha t
15 w e w i ll c al l a c as e o f f ir st i mp re ss io n. O ka y.
16 Because, again, as society evolves its understanding of
17 t he k in d o f r es po ns e t o t he se s or ts o f i ss ue s, t he l aw
18 is catching up also.
19 And honestly, because I have said it outside
20 of you, the quality of professional lawyering in this
21 c as e w as a s g oo d a s i t g et s f or t he se l aw ye rs i n t er ms
22 of their professional integrity, their skills and
23 w ha tn ot . T hi s i s n ot t he t ype of c as e w he re y ou a re
24 going to see inexperienced lawyers.
25 And I said to them, as I will say to you,
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1 t ha t, a s d if fi cu lt a c as e a s t hi s i s, a nd w as , o n a ll
2 a nd e ac h o f u s, m y j ob w as c on si de ra bl y a id ed b y t he
3 professionalism and skills of all lawyers involved in
4 t hi s p ro ce ed in g. I d on 't s ay t ha t i n m an y c as es e it he r.
5 B ut t hi s i s a c as e, a s a m at te r o f p ro fe ss io na li sm ,
6 needs good lawyers.
7 So , ag ai n, I w ant t o t ha nk y ou . I n a m om en t,
8 you will be free to go. You can choose, as is your
9 e le ct io n, t o s pe ak t o a c ou ns el o r n ot .
10 A ga in , o nc e I e xc us e y ou - - I 'm g oi ng t o t ak e
11 a l oo k a t m y p ar ti ng i ns tr uc ti on s o I d on 't f or ge t
12 anything.
13 You are free to go. I think we all agree
14 t ha t y ou ha ve d one y ou r s er vic e. A nd I w is h I c ou ld s ay
15 t o y ou , b ec au se o f t he q ua li ty o f t he s er vi ce , i t i s
16 attainable, that you won't hear from the system for
17 several years because you have earned your time.
18 A s I t ol d y ou t hi s m or ni ng , I l ik e t o a lw ay s
19 j ud ge m ys el f i n t er ms o f h ow I d ea l w it h j ur ie s, a nd I
20 will spend my experience in, literally my lifetime, in
21 t he c ou rt ro om . I 'm g oi ng t o b e b et te r, i n t e rm s o f
22 communication and be sensitive in a bifurcated trial as
23 to that instruction as to whose judgment it is.
24 A l ot o f w hat I d id w as d esi gn ed no t to t il t
25 t he w he el o n b eh al f o f e it he r p ar ty h er e. An d i t wa s a
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1 v er y - - c an di dl y, I t ri ed t o b e v er y c ar ef ul i n
2 e ve ry th in g I di d. B ut w ha t I d id , w he n I wa s a t ria l
3 lawyer, after every trial, I assessed what worked, what
4 d id n' t, a nd h ow I c oul d h av e b een b et te r. An d I t el l
5 y ou , in a c ase l ik e th is , a nd i n t erm s o f no t on ly i n
6 i ts n at ur e a nd b ec au se o f i t, b ut i n t er ms o f h ow t he
7 process evolved.
8 I d o t he s ame t hi ng a s t he j ud ge . A nd t her e
9 a re a c ou pl e t hi ng s t ha t I h av e l ea rn ed d ea li ng w it h y ou
10 i n t hi s c as e a nd t he q ua li ty o f l aw ye rs I h av e h er e t ha t
11 I will do differently the next time.
12 So give me a minute. I want to make sure I
13 have covered everything. That was hardly a written
14 s pe ec h. L et m e t a ke a l oo k a t m y p a rt in g i n st ru ct io ns .
15 Otherwise, at which time I will dismiss you.
16 A ll r ig ht . A ga in , I 'm g oi ng t o d is mi ss y ou .
17 Y ou a re f re e t o --
18 Madame Clerk, you may record the verdict.
19 I w ill no w di sm is s yo u. A ga in , y ou m ay s pe ak
20 w it h c ou ns el i f t h at i s y ou r w i sh . O th er wi se , y ou h av e
21 n o o b li ga ti on t o d o s o. E nj oy t he e ve ni ng , a n d t h an k
22 you for your service.
23 (Proceedings were concluded at 4:23 p.m.)
24
25 --oOo--
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1 REPORTER'S CERTIFICATE
2 I, KATHRYN LLOYD, CSR No. 5955, Certified Shorthand
3 Reporter, certify:
4 That the foregoing proceedings were taken before me
5 a t t he t im e a nd p la ce t he re in s et f or th , a t w hi ch t im e
6 the witnesses were put under oath by the court clerk;
7 That the testimony of the witnesses, the questions
8 propounded, and all objections and statements made at
9 the time of the examination were recorded
10 stenographically by me and were thereafter transcribed;
11 That the foregoing is a true and correct transcript
12 of my shorthand notes so taken.
13 I fu rt he r c er ti fy th at I a m n ot a r el at iv e o r
14 employee of any attorney of the parties, nor financially
15 interested in the action.
16 I declare under penalty of perjury under the laws
17 of California that the foregoing is true and correct.
18 Dated this____ day of _____, 2012.
19
20 ____________________________
21 KATHRYN LLOYD,CSR 5955
22
23
24
25