Gerry Armstrong--Application for OSC re Contempt 157680

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ANDREW H. WILSON, ESQ., SBN # 063209
WILSON CAMPILONGO LLP
San Francisco, California 94104
(415) 391-3900
(415) 954-0938 (fax)

KENDRICK L. MOXON, ESQ., SBN # 128240
MOXON & BARTILSON
550 N. Brand Blvd., Suite 700
Glendale, CA 91203
(818) 546-5064
(818) 546-5068 (fax)

Attorneys for Plaintiff/Judgment Creditor
CHURCH OF SCIENTOLOGY INTERNATIONAL

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF MARIN

CHURCH OF SCIENTOLOGY
INTERNATIONAL, a California not-for-profit
religious corporation,

Plaintiff,

vs.

GERALD ARMSTRONG, et al.,

Defendants.

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CASE NO. 157 680

[CONSOLIDATED]

EX PARTE APPLICATION FOR
ORDER TO SHOW CAUSE WHY
DEFENDANT GERALD
ARMSTRONG SHOULD NOT BE
HELD IN CONTEMPT;
MEMORANDUM OF POINTS AND
AUTHORITIES
(CCP § 1212)

Date:
Time:
Place:

Plaintiff/Judgment Creditor, Church of Scientology International (" CSI") applies ex

parte for an order directing Defendant/Judgment Debtor Gerald Armstrong ("Armstrong")to

show cause why he should not be held in contempt of this Court, pursuant to section 1209

(a)(5) of the California Code of Civil Procedure, for willful disregard of this Court's Order

entered on October 17, 1995, in the above-entitled action (the "Order").

This application is made on the grounds that Armstrong has committed at least thirteen

separate and distinct violations of the Order. Specifically, Armstrong: (i) prepared and posted

on the Internet five documentary works in violation of the Order; (ii) appeared on a television

program on Channel 4 in England entitled "The Secret Lives of L. Ron Hubbard" in which he

violated the Order and gratuitously made numerous false statements concerning the Church of

Scientology and the founder of the Scientology religion, L. Ron Hubbard; (iii) made three

television appearances in Germany on or about October 26-28, 1997 on television stations N-

TV, B1 TV, and SATI TV, making many of the same statements as well as others; (iv) made

a speech in Berlin, Germany in which he also violated the Order in several respects; (v) gave

an interview to the German regional newspaper Taz which violated the Order; (vi) made a

speech which contained statements violating the Order in Hamburg, Germany on October 28,

1997, at an event sponsored by self-styled critics of the Church of Scientology; and (vii)

prepared and posted on the Internet an alleged complaint for libel against CSI and other

Beneficiaries of the Order.

Armstrong has treated this Court's authority with such callous disregard that he should

be criminally sanctioned by fine and imprisonment under Code of Civil Procedure § 1218.

CSI submits that Armstrong's actions also warrant referral to the District Attorney for

misdemeanor prosecution under Penal Code § 166(4).

Armstrong has been notified of this Application as set forth in the Declaration of

Andrew H. Wilson, at ¶ 28.

This Application is based on this Application itself, the concurrently filed declaration of

Andrew H. Wilson; the exhibits submitted therewith; the records on file in this case; and such

further evidence and argument as may be properly presented at the hearing of this Application.

Dated: December 1, 1997

Respectfully submitted,

KENDRICK L. MOXON
MOXON & BARTILSON

WILSON CAMPILONGO, LLP

By: [signed]
Andrew H. Wilson
Attorneys for Plaintiff/Judgment Creditor
CHURCH OF SCIENTOLOGY
INTERNATIONAL

MEMORANDUM OF POINTS AND AUTHORITIES

I. INTRODUCTION

Gerald Armstrong has become an outlaw. He regards himself as being above the law,

and his acts put him outside the law. He entered into a settlement agreement with Church of

Scientology International ("CSI"), but later announced in no uncertain terms that the only

provision in that agreement by which he would abide was the one by which he was paid

$800,000.00.¹ This suit followed, and Armstrong's liability for damages and for permanent

injunction were summarily adjudicated against him. Having "renounced" money and

transferred his assets to friends, Armstrong went to the Bankruptcy Court where the damages

CSI had won were discharged. The injunction, however, remained intact and Armstrong

undertook to violate it, with willfulness and calculation.

This Court then held Armstrong in contempt and sentenced him to jail. Armstrong fled

the country, and from his Canadian refuge, continued his open disregard for the Court's

injunction, its bench warrant, and its authority. His violations of that injunction now number

thirteen since September 2, 1997, on the Internet, in televised interviews on British television,

and by making speeches and giving interviews in Germany.

Still not satisfied, he has now announced on the Internet that he has filed a suit in

Nevada, a state in which he does not even reside, alleging the very claims previously

dismissed or summarily adjudicated against him by this Court. In that suit he ignores this

Court's rulings, repeats the same false and insupportable assertions that were rejected here,

and, from his hiding place, continues to flout this Court's authority. His intent to harm and to

flout this Court's lawful orders are evidenced by the introduction to the Internet posting in

which he announces the lawsuit

¹ "I have absolutely no intention of honoring that settlement agreement. I
cannot. I cannot logically, I cannot ethically. I cannot morally. I cannot
psychically. I cannot philosophically. I cannot spiritually. I cannot in any
way. And it is firmly my intention to not honor it." (Gerald Armstrong, June
24, 1992, Depo. Tr. 124.)

with a "Happy Thanksgiving" salutation to CSI and the other beneficiaries of his settlement

agreement.

Armstrong leaves himself only one fate. He must be held in contempt again, and he

must face that same result each time he commits a contumacious action and his contempt must

be enforced whenever he is within the jurisdiction. There is no other remedy for a

calculating, deliberate outlaw.

II. FACTUAL SUMMARY

This Court may recall the extent of Armstrong's behavior which gave rise to the

Injunction, and his past disregard for the authority of the courts of this State. To summarize,

in December 1986, Armstrong freely and voluntarily entered into a Mutual Release of All

Claims and Settlement Agreement ( the "Agreement") pursuant to which CSI paid Armstrong

$800,000.00. Declaration of Andrew H. Wilson ("Wilson Decl. "), at ¶ 2. In exchange for

his receipt of such funds, Armstrong promised, in essence, to cease disseminating

"information" concerning CSI and to cease assisting others litigating or defending claims

against CSI and related entities. Id. Beginning in approximately 1990, Armstrong

fraudulently transferred substantially all of his assets to his attorney and close friends, and then

began repeatedly breaching almost every covenant he made in the Agreement. Id., at ¶ 3.

As a result of Armstrong's conduct, CSI brought this action for breach of the

Agreement seeking,inter alia, a permanent injunction preventing Armstrong from further

breaching the Agreement. Id., at ¶ 4. For his part, Armstrong filed various claims against

CSI for breach of the Agreement and other purported claims. Id.

On October 17, 1995, this Court granted an Order of Permanent Injunction against

Armstrong (hereinafter the "Order" or the " Injunction") following motions for the Summary

Adjudication of Issues brought by CSI. Id., at ¶ 9. The Order was later incorporated into the

judgment entered against Armstrong on May 2, 1996 (the " Judgment"). The Injunction, inter

alia, prohibits Armstrong from voluntarily assisting persons litigating claims against CSI or

any named "beneficiaries." In addition, it also prohibits Armstrong from " Facilitating in any

manner the creation, publication, broadcast, writing, filming, audio recording, video

recording, electronic recording or reproduction of any kind of any book ... television program

... or documentary work of any kind which discusses, refers to or mentions Scientology, the

Church, and/or any of the Beneficiaries [of the Settlement Agreement] ."

Despite the Injunction, Armstrong's wrongful conduct continued as if nothing had

happened. Earlier this year, he wrote and filed a lengthy declaration (the " Declaration") in

support of litigants adverse to a beneficiary of the Settlement Agreement in three cases

currently pending in the United States District Court for the Northern District of California.

Armstrong then sent copies of the Declaration to the parties and their counsel. On CSI's

application, an Order to Show Cause re Contempt was issued which was served by publication

because Armstrong had fled the jurisdiction. Armstrong was subsequently held in contempt,

and ordered punished by the imposition of a $1,000 fine and confinement for a period of forty-

eight hours.

Even this did not deter Armstrong, who has violated the Injunction repeatedly.

Between September 2 and October 23, 1997, Armstrong created seven separate publications of

documentary works which discuss CSI and other named beneficiaries of the Settlement

Agreement and published them widely via the Internet. Wilson Decl., ¶ ¶ 15-21. In October,

he recorded an appearance on a British television show entitled The Secret Lives of L. Ron

Hubbard, which was broadcast on November 19, 1997, and on which he made statements

concerning Mr. Hubbard, the founder of the Scientology religion, in violation of the

Injunction. Armstrong engaged in a veritable orgy of violations in Germany between October

26 and 28, making two speeches in which he violated the Injunction repeatedly and gave

interviews in violation of the Injunction to at least three television stations and a regional

newspaper. Wilson Decl., ¶¶ 23-25. Finally, in an obvious but flawed attempt to avail

himself of the litigation privilege, Armstrong again violated the Injunction with an Internet

posting on November 26, 1997, which purported to be a verbatim transcription of a complaint

which he had filed in the United States District Court for the District of Nevada.²

The recent violations of the Injunction in Great Britain and Germany have forced the

Church to expend a great deal of time and money to correct the multiplicity of falsehoods and

lies which Armstrong has promulgated. Armstrong's claimed expertise concerning the

Church, based on nothing more than having been the clerk entrusted with the care of certain of

Mr. Hubbard's personal files, gives him a superficial credibility, even though he has not been

involved in any facet of the Scientology religion since 1981. Evidence of this is the German

media's false reference to Armstrong as Mr. Hubbard's "biographer." The Church did not

pay Armstrong to silence him by the settlement, but to save itself the time and expense of

responding to and correcting every false allegation Armstrong made.

That is precisely why the Church feels it now must return to Court to enforce the

Injunction with the only means available to it. Given the blatant and recurring nature of his

violations, CSI cannot sit idly by while Armstrong thumbs his nose at this Court and the entire

judicial system in general. CSI asks this Court to hold Armstrong in contempt as that is the

only way in which he will be forced to realize that he must obey the Court's orders.

III. ARGUMENT

These facts provide abundant cause for this Court to issue an Order to Show Cause

why Armstrong should not be held in criminal contempt for his willful disobedience of this

Court's October 17, 1995 Order. Code of Civil Procedure § 1209, et seg ., provides this

Court with the power to punish acts, such as Armstrong's, which are in " disobedience of any

lawful . . . order of the court." Code Civ. Proc. § 1209(a) (5). See also, Pacific Telephone

and Telegraph Co. v. Superior Court (1968) 265 Cal. App.2d 370 (section 1209 contempt

² A brief perusal of this complaint reveals that it is based upon the same alleged wrongs
done to Armstrong as was his cross-complaint in this action which this Court dismissed on
summary adjudication. It is also based, in part, on alleged wrongs done to Armstrong prior
to the Settlement Agreement sued on herein which the Settlement Agreement specifically
released. Moreover, the Settlement Agreement pointedly prohibited Armstrong from relying
on those wrongs in subsequent litigation.

proceedings are special proceedings, criminal in character and intended to implement the

inherent power of the court to enforce its lawful orders).

Code of Civil Procedure § 1211 provides that when contempt is not committed in the

immediate view and presence of the court, an affidavit shall be presented to the court of the

facts constituting the contempt. For this purpose, declarations can be used in place of

affidavits. Code Civ. Proc. § 2015.5.

The above declaration "need only make a prima facia showing of the elements of

contempt." Crawford v. WCAB (1989) 213 Cal.App. 3d 156, 169. The declaration must

show: (1) the rendition of a valid order; (2) the respondent's knowledge of the order; (3) the

respondent's ability to comply with the order; and (4) the respondent's wilful disobedience of

the order. See, Conn v. Superior Court (Farmers Group) (1987) 196 Cal.App.3d 774, 784.

All these conditions are present here.

A. The Court's Injunction at Issue Is Valid.

The Order was valid when rendered and remains fully enforceable. A true and correct

copy of the Order is attached as Exhibit D to the Declaration of Andrew H. Wilson, filed

herewith.

1. There has been no successful direct attack against the Injunction.

Since its entry, there has been no successful challenge to the validity of the Order by

Armstrong. Wilson Decl., at ¶ 10. Armstrong has appealed from the Judgment and Order.

Briefing is not yet complete and CSI has moved to dismiss the appeal on the grounds that a

party may not simultaneously appeal from an injunctive order while willfully disobeying it.

That motion is still pending. Id. Significantly, the Preliminary Injunction which preceded the

Order was affirmed following Armstrong's petition to the Court of Appeals. Id .

2. Any collateral attack against the Injunction by Armstrong would be

meritless. The only permissible collateral attack against the Order would be based on a

wholly meritless claim by Armstrong that it is invalid on its face. People v. Gonzalez (1996)

12 Ca1.4th 804, 823-4.

The Court's file reflects that, prior to the entry of the Order, Armstrong fully litigated,

and lost, the various claims he made against enforcing the Agreement through injunctive

relief. Considerable time and effort was expended by the parties and this Court in addressing

Armstrong's arguments.

B. Armstrong Had Actual Knowledge Of The Injunction When He Violated It.

There can be no question that Armstrong had actual knowledge of the Order.

Armstrong's counsel appeared at the hearing pertaining to the Order and received notice of

entry thereof. Wilson Decl., at ¶ 11. Armstrong further received a Notice of Entry of Order,

served on his counsel, with a copy of the Order attached., Id. The law does not require that a

party subject to an order be personally served with a copy of such order before he may be

held in contempt of it. People v. Superior Court (1965) 239 Ca1.App.2d 99. In fact, service

on Armstrong's counsel raises a rebuttable presumption that Armstrong had actual knowledge

of it. Id. at 104.

Armstrong's actual knowledge of the Order is also shown by the fact that Armstrong

himself signed and filed a Notice of Appeal and, on August 25, 1997, while appearing in pro

per, signed and mailed for filing the APPELLANT'S OPENING BRIEF with respect thereto.

Wilson Decl., at ¶ 10. Armstrong cannot, and apparently does not, deny that he has actual

knowledge of the Order. To the contrary, he apparently delights in boasting of his refusal to

honor it. See, e.g., Wilson Decl., at ¶ 8.

C. Armstrong Was Fully Capable Of Complying With This Court's Injunction.

The restrictions placed on Armstrong's behavior by the Order are very specific and

limited. The Order provides, in pertinent part, as follows:

Defendant Gerald Armstrong, 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:

* * *

3. Voluntarily assisting any person (not a governmental organization or
entity) arbitrating or litigating adversely to the Beneficiaries.

4. Facilitating in any manner the creation, publication, broadcast,
writing, . . . electronic recording or reproduction of any kind of . . .

documentary work of any kind which discusses, refers to or mentions
Scientology, the Church, and/or any of the Beneficiaries [of the Order].

5. Discussing with anyone, not a member of Armstrong's immediate family
or his attorney, Scientology, the Church, and/or any of the Beneficiaries.

Nothing in the Order requires that Armstrong engage in any affirmative action.

Instead, Armstrong is merely restrained from continuing to disclose his " information" and

opinions. The restrictions on Armstrong's behavior in the Order stem from an agreement

which Armstrong made freely and voluntarily and for which he was paid $800, 000.00. Id., at

¶ 2.

The above sum of money was paid to Armstrong by CSI to end once and for all the

relationship between Armstrong and CSI and to eliminate Armstrong's very deliberate

campaign of harassment against CSI and its affiliates. Again, the Court's file in this case

reflects that Armstrong's ability to cease such conduct was an issue fully litigated prior to the

entry of the Order. This Court rejected all of Armstrong's claims as to his inability to comply

with the Order.

D. Armstrong Has Willfully Disobeyed The Injunction And Must Be Appropriately
Sanctioned.

The requirement that there be a "willful disobedience" of a court order to support the

sanction of criminal contempt is undeniably met here. Armstrong's violation of the Injunction

is clear, and his intent to do so is manifest.

From the moment he was first enjoined from the violation of the Agreement by the

Hon. Ronald Sohigian in June 1992, Armstrong has made plain his disdain for the court's

power to affect his actions and his intent to violate orders of court. See Wilson Decl., at ¶ 5.

In late 1994, Armstrong's disobedience of the preliminary injunction issued by Judge Sohigian

led to the issuance of an OSC re Contempt which was heard before the Hon. Diane Wayne,

who admonished Armstrong for his conduct, but discharged the contempt with only a warning.

Id., at ¶ 3. Recently, Armstrong was held in contempt and punished by a fine of $1,000 and

forty-eight hours confinement for transmitting his declaration to Judge Whyte.

Armstrong's willfulness is shown starkly in his own Internet posting of October 20,

1997, Wilson Decl., Ex. I, in which he states: "[British television producers] 3BM did not

induce me to breach any agreement or judgment. The fact is I am willing to communicate to

anyone about Scientology or Hubbard and my experiences therewith at any time . . . and

require no inducement. I was more than willing to be interviewed by 3BM . .."

Armstrong apparently feels that he is immune from the actions of this Court and that he

can disregard its orders with impunity. While the issuance of an additional contempt citation

may not immediately deter Armstrong, failure to act will send exactly the wrong message to

him - that CSI and the Court have despaired of ever bringing Armstrong into compliance

with the Order and will not even attempt to do so. This Court should exercise all of its

available powers to stop Armstrong's mockery of its authority and his violation of CSI's

rights. Armstrong should be subject to a $1,000 fine and incarcerated for not more than five

days pursuant to Code of Civil Procedure § 1218 for each of the thirteen separate contempts

set forth above. CSI should also be awarded the costs and attorneys' fees it has incurred in

bringing this Application. In fact, since Armstrong has publicly disavowed money as a

meaningful or valuable commodity, incarceration appears especially necessary to impress upon

him the gravity of his behavior. ³

CSI also submits that upon a finding of contempt under Code of Civil Procedure §

1209, et seq., referral to the District Attorney for misdemeanor prosecution under Penal Code

§ 166(4) is also necessary to curtail Armstrong's continued defiance of this Court's authority.

IV. CONCLUSION

Enough is enough. In light of the foregoing, plaintiff Church of Scientology

International respectfully requests that the Court order that Armstrong show cause why he

should not be held in contempt of court and why the Church should not be awarded its costs,

³ Armstrong, in fact, declared bankruptcy in the effort to avoid his obligations under
the Agreement. Armstrong successfully discharged the approximately $300, 000.00 awarded
by this Court in damages to CSI in his bankruptcy proceedings. Wilson Decl., at ¶ 4.
Armstrong, however, failed in his effort to have the Bankruptcy Court discharge him from
the contractual obligations upon which the Order is based. Id.

including attorneys' fees, in bringing this motion. Further, upon finding Armstrong in

contempt under Code of Civil Procedure § 1209, et seq., referral to the District Attorney for

misdemeanor prosecution under Penal Code § 166(4) is also necessary to curtail Armstrong's

continued defiance of this Court's authority.

Dated: December 1, 1997

Respectfully submitted,

KENDRICK L. MOXON
MOXON & BARTILSON

WILSON CAMPILONGO, LLP

By: [signed]
Andrew H. Wilson

Attorneys for Plaintiff/Judgment Creditor
CHURCH OF SCIENTOLOGY
INTERNATIONAL

PROOF OF SERVICE

I declare that I am employed in the City and County of

San Francisco, California.

I am over the age of eighteen years and not a party to

the within entitled action. My business address is 115

Sansome Street, Suite 400, San Francisco, California.

On December 5, 1997, I caused the attached copy of:

ORDER TO SHOW CAUSE RE CONTEMPT; EX PARTE APPLICATION FOR

ORDER TO SHOW CAUSE WHY DEFENDANT GERALD ARMSTRONG SHOULD NOT

BE HELD IN CONTEMPT; MEMORANDUM OF POINTS AND AUTHORITIES;

DECLARATION OF ANDREW H. WILSON IN SUPPORT OF EX PARTE

APPLICATION FOR ORDER TO SHOW CAUSE RE CONTEMPT to be served

on the following in said cause, by placing for deposit with

the U.S. Mail on this day in the ordinary course of business,

true copies thereof enclosed in sealed envelopes. The

envelopes were addressed as follows:

Gerald Armstrong
C/O George W. Abbott, Esq.
2245-B Meridian Blvd.
P.O. Box 98
Minden, Nevada 89423-0098.

I declare under the penalty of perjury under the

laws of the State of California that the foregoing is true and

correct. Executed at San Francisco, California on December 5,

1997.

[signed]
JUNE WILLIAMS