Jackson attorney Brian Panish has decided not to call Propofol expert Dr. David Brown to testify as next witness, as Panish decided that Dr. Brown’s testimony would not add additional information for the jury.
As there was no witness to testify this morning , Panish subsequently plays the video deposition testimony of AEG defense expert witness, Marty Hom.
Hom was questioned by Plaintiff’s attorney Kevin Boyle on March 25, 2013 for the taped deposition.
Panish tells Judge Palalzuelos he intended to call AEG’s Shawn Trell as the next witness. However, AEG stated that Trell he was not available to testify.
Therefore, Judge Palalzuelos recessed for a 4-hour lunch break.
(AEG Accounting Executive Controller)
Plaintiff’s Adverse Witness.
Continued direct examination by Brian Panish.
Panish asks Hollander if it’s true she had lunch with AEG attorneys today. She says she did.
Panish asks her about This Is It tour budgets — from both before and after Michael’s death.
He shows Hollander a document from April 30, 2009. It lists ‘management medical’ for $300,000.
Hollander said her job was to facilitate payments and sometimes approve payments.
Panish: Do people worked for AEG without fully executed contracts.
Hollander: Yes, they may start work in general terms.
She stated that it was standard AEG policy that no payments be issued without fully executed a contract — and that the contract could get executed at a later date.
Panish said people did the work before Mr. Jackson died, but got paid after he died.
Hollander: I don’t recall specifics.
Hollander said there were people who had contracts renegotiated after Michael Jackson’s death. She said AEG renegotiated contracts after Michael died so as to ‘mitigate the burden on the Michael Jackson Estate‘.
Hollander: People commence work before their contract is executed, yes.
Previous evidence exhibited of a chain of emails show some people were complaining that they weren’t being paid after Michael’s death. But Hollander added that many were paid.
Panish shows email from July 10, 2009 asking Hollander to sign a tour contract so vendors could get paid. Hollander signed it after Michael Jackson’s death.
Panish shows email from August 4, 2009 showing another vendor who renegotiated contract after Michael Jackson’s death and got paid for services rendered prior to Michael Jackson’s death.
Panish shows email from June 30, 2009 from Randy Phillips to Holland: This is from Karen Faye who did MJ’s hair and make up. She bought three wigs for use in the tour and one of them is going to be used for his final rest.
Karen Faye charged AEG for the wigs she purchased for Michael. After he died, AEG stopped a payment. Faye was upset and in email correspondence. Hollander forwarded it to Phillips. Cost for the wigs was $11,500 — Hollander said that it was a nominal amount, so there was no need for a contract and it was paid.
Hollander said Gongaware would occasionally require that she expedite payments. Hollander: He’s an impatient person. Vendors are important to him.
Hollander said she knew who Tohme Tohme was — and that she knew he had been let go at some point from duties as Mr. Jackson’s manager. Hollander testified she knew Tohme was terminated before Mr. Jackson died — and had no legal signing authority for Mr. Jackson.
Panish said $36 Million was spent on This Is It. He asked if Hollander she knew AEG had filed a claim against Lloyd’s of London to collect insurance.
Hollander said she knew it through the media — but that she didn’t specifically recall giving any information for the claim.
Panish shows an AEG Pre-Tour Cost Projection document dated May 20, 2009. It states AEG was to pay Conrad Murray $300,000. Panish: This was pursuant to the contract. The document shows that AEG budgeted to pay Murray for his work with Michael Jackson as ‘preproduction cost.’ Murray was not paid.
Panish shows a Timm Woolley prepared budget approved by Paul Gongaware which cited ‘Management Medical’ amounts to be paid to Murray listed ‘Per Contract‘.
Hollander received email on June 18, 2009 from Brigitte Segal, who worked on the tour. She was requesting estimated cost for living arrangements in London. Woolley wrote Segal on June 18, 2009: I’ve prepared what I think is an equitable division if expenses between MJ and The Tour.
(listing as follows):
AEG pays for entertainment arcade and bowling alley as a precondition in terms of what Michael requested at the Carolwood house as and part of the agreement.
AEG pays for 3 of the houses — for Bush, Faye and Murray (wardrobe dresser, makeup/hair and personal physician). Panish also exhibited several additional emails showing that other vendors were paid — including Karen Faye.
Michael Jackson pays for additional furniture, staff, security, nanny, food.
Gongaware responded on June 19, 2009: I agree with Timm’s allocation and the charges. Approved.
Hollander said it was pursuant to the terms of the contract that AEG must pay those costs relating to This Is It tour — as an advance payment.
Panish exhibits a pre-production budget in relation to what AEG paid. As of July 1, 2009, Dr. Murray still appears budgeted for $300,000.
Hollander said she had not seen a contract with Dr. Murray signed by AEG.
Panish: If the $300,000 was supposed to be advance for Mr. Jackson to be repaid, it would be listed under category ‘Artist’s Advances’.
Panish: Dr. Murray was supposed to be paid $150,000 per month, correct?
Hollander: Yes, according to the un-executed contract.
Panish played Hollander’s deposition testimony of her talking about 20 tours she has handled finances for.
Panish: Was the This Is It Tour the first time you have seen where AEGLive hired a physician for the tour?
She also acknowledged it was the first time she saw AEGLive pay for an artist’s personal physician.
Recross examination by Jessica Stebbins
Stebbins asks Hollander what is an advance. Hollander said it was like a cash advance and — depending on the contract — it would be paid back by the artist.
Hollander testified that Michael Jackson was responsible for 100% of the production costs if the tour did not go forward.
And if the tour went forward, Michael Jackson was responsible for paying 95% of the costs — AEG would pay 5%.
Hollander said if something is listed on the budget, it means it was planned to be paid — but things often change.
For This Is It, Hollander said she had contracts with choreographers, lighting, staging, sound equipment, etc.
Hollander told Stebbins she was nervous answering questions because it was her first time testifying.
She testified that the only contract that required Michael Jackson sign it was the one drafted for Conrad Murray.
Hollander: My understanding was that Mr. Jackson had asked to include Dr. Murray in the tour personnel. Dr. Murray was requested by the artist — that was my understanding. I was instructed that no payments were to be made until Michael Jackson signed the contract due to the personal nature of the services.
Hollander said she was instructed not to pay Murray until Jackson signed his contract.
Hollander: Tour manager maintains the budget, negotiates some vendor’s contracts — may be involved in mitigating tax exposure. My role in the tour was to make sure the items created were in line with the budget made.
Hollander said she never saw a version of Dr. Murray’s contract signed by AEG or Mr. Jackson. AEG never paid Dr. Murray.
Hollander: A budget is just a tool. Sometimes an executed contract differs from the budget. In that case, the contract’s terms dictate the payments.
Court adjourned until Monday.