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DECLARATION OF ANDREW H. WILSON IN SUPPORT
OF MOTION TO DISMISS APPEAL

 

    ANDREW H. WILSON deposes and says:

    1. I am a partner in the law firm of Wilson Campilongo LLP and am an

attorney admitted to practice law in the State of California. I was the attorney

principally responsible for the representation of the Plaintiff and Appellant, Church

of Scientology International (the "Church or CSI") and was lead counsel for CSI in

the litigation of this matter at the superior court level. As such I have personal

knowledge of the facts set forth below and, if called upon to testify on such matters,

would and could do so competently.

    2. In December 1986 the Church entered a settlement (the Settlement

Agreement") with Gerald Armstrong. This settlement was part of a settlement of a

number of lawsuits, which included litigation between the Church and Armstrong.

Armstrong was the "lead" plaintiff, and all plaintiffs were represented by the same

attorney. Armstrong was also the principal witness for the other plaintiffs, as a self-

proclaimed expert on the workings and management of the Church. In settling this

litigation, it was the Church's desire to end its relationship with Armstrong once and

for all. In order to accomplish this, the Church insisted on the following covenants

by Armstrong: (i) Armstrong's agreement to end his active and voluntary support

to anti-Scientology litigants which he had been voluntarily providing in the form of

purported expert declarations and testimony for the preceding several years, (ii)

 

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Armstrong's agreement to return to the Church documents which he had stolen and

all copies of them and (iii) Armstrong's agreement to refrain from discussing with

third parties his experiences with the Scientology religion and to keep confidential

all terms of the settlement itself. In exchange., and as his part of the overall

settlement, Armstrong received $800,000.

    3. Armstrong, however, quickly betrayed his agreement. In 1990 he

conveyed to his friends and attorney virtually all of his assets, including an expensive

house which he had built in Marin County with proceeds from his settlement with

the Church. Then he resumed voluntary and active litigation support in direct

violation of the terms of the Settlement Agreement and began making and publicizing

statements of his purported experiences in and knowledge of the Church.

    ;4. CSI filed the action underlying this appeal in Marin County Superior

court in February 1992 (where Armstrong resided). The complaint sought injunctive

relief to prohibit Armstrong from committing further violations of the Settlement

Agreement and also liquidated damages for the violations which Armstrong had

already committed. The Church rapidly obtained a Temporary Restraining Order,

compelling Armstrong to adhere to the Settlement Agreement but Armstrong was

able to delay the motion for preliminary injunction through various procedural

maneuvers, including a motion to change venue to Los Angeles County. In May,

1992, after an extensive evidentiary hearing, the Hon. Ronald Sohigian entered a

preliminary injunction which prohibited Armstrong from further violations of the key

provisions of the settlement agreement.

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    5. In June, 1992 I took Armstrong's deposition in this case. During the

deposition, in the face of Armstrong's assertions that he did not consider himself

restrained in any way by the contract which he had entered with CSI in 1986, I

questioned him as to whether he intended to obey the order of Judge Sohigan.

Armstrong responded:

A. When I mean, I have, 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 not to honor it.
Q. No matter what a court says?
A. No court could order it. They're going to have to kill me.

A true and correct copy of the relevant pages of that deposition are attached hereto

and incorporated herein as Exhibit [A].

    6. Armstrong sought review of the preliminary injunction by writ of

mandate which was denied on November 20, 1992 and then prosecuted an

interlocutory appeal. On May 16, 1994, the Court of Appeal for the Second

Appellate District affirmed the issuance of the preliminary injunction by its

unpublished opinion of that date, a true and correct copy of which is attached hereto

and incorporated herein by reference as Exhibit [B].

    7. True to his challenge to the order of the Court and his avowal to

disregard his contractual obligations, Armstrong continued to engage in breaches of

the terms of settlement arid of the preliminary injunction issued by Judge Sohigan.

CSI responded by amending its complaint several times in order to incorporate these

new breaches. After Armstrong stipulated to a transfer of the action back to Marin

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County where it had originally been brought and where Armstrong had resided

throughout the case, the Church then brought and won a series of summary

adjudication motions on specific breaches, ultimately being awarded a total of

$300,000 in liquidated damages. CSI filed and won a motion for summary

adjudication on its claim for a permanent injunction. Further, on summary

adjudication the Church obtained the dismissal of Armstrong's cross-complaint

attacking the validity and enforceability of the settlement agreement and also obtained

the dismissal of Armstrong's affirmative defenses. Judge Gary H. Thomas entered

a detailed, carefully crafted Order of Permanent Injunction of October 17, 1995 and

entered Judgment in the breach of contract case on May 2, 1996.

    8. In his Order of permanent injunction, Judge Thomas enumerated 31

breaches of the settlement agreement by Armstrong in the period from 1991 to 1995.

A true and correct copy of the Order of Permanent Injunction and the subsequent

Judgment attached hereto and incorporated herein by reference as Exhibit [C]. After

devoting five pages to the itemization of Armstrong's breaches of the agreement --

all of which were carried out in violation of Judge Sohigian's preliminary injunction

-- the Court recognized the futility of attempting to bring Armstrong into compliance

with his settlement contract through the imposition of a monetary sanction and noted

the need for a court order to compel Armstrong's compliance:

Defendant Armstrong has reiterated numerous times
that he intends to continue breaching the Agreement
unless he is ordered by the Court to cease and desist.

Accordingly, the Court finds that entry of a permanent
injunction in this action is necessary in this action

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because pecuniary compensation could not afford the
Church adequate relief, and the restrain is necessary in
order to prevent a multiplicity of actions for breach of
contract.

Exh. C, 6:18-20, 24-27)

    9. Armstrong's immediaatee rinse to the award of $300,000 in

liquidated damages to CSI and to the issuance of the Order of Permanent Injunction

was to file for bankruptcy and request that the bankruptcy court discharge this debt

and the injunction. CSI brought an adversary complaint in opposition. After a one-

day trial, the Hon. Alan Jaroslovsky, of the U.S. Bankruptcy Court, Santa Rosa

Division discharged Armstrong's monetary debt but left whole the Order of

Permanent Injunction.

    10. Unfortunately Armstrong, has chosen to ignore this Order of Permanent

Injunction of the Marin County Superior Court, just as he earlier had ignored the

Order of Preliminary Injunction of the Los Angeles Superior Court. On October 7,

1996 Armstrong sent a letter to the Los Angeles City Council, which at the time was

considering the renaming of a city street in honor of L. Ron Hubbard, the founder

of the Scientology religion. Armstrong's letter (which evidently had no impact on

the City Council as they ruled virtually unanimously to approve the street name

change) was a direct and flagrant breach of both the 1986 settlement agreement and

1995 Order of Permanent Injunction. Armstrong compounded this violation by

having his letter posted on the Internet. A true and correct copy of the Internet

posting of Armstrong's letter is attached hereto and incorporated herein by reference

as Exhibit [D]. In response to this violation, I sent Armstrong a letter warning him

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that such actions constituted a violation of Judge Thomas' order and that " further

violations of the Order will only serve to exacerbate and compound the seriousness

of this matter." A true and correct copy of my latter of october 23, 1996 to

Armstrong is attached hereto and incorporated by reference as Exhibit [E].

    11. Unrestrained, Armstrong again violated the Marin Court's Order.

This time, on January 26, 1994, Armstrong submitted a 45 page declaration against

the Religious Technology Center ("RTC"), one of the named beneficiaries of the

1986 Settlement Agreement. He sent this declaration, containing material directly

violating the agreement and Order, to the Hon. Ronald M. Whyte, of the United

States District Court for the Northern District of California, who was presiding over

several copyright infringement cases brought by RTC. Armstrong's declaration was

rejected by the court as improperly submitted. Nevertheless, since this was a further

and egregious violation of the Order of Permanent Injunction, CSI concluded that

Armstrong's actions must be brought to the attention of Judge Thomas. Accordingly,

CSI moved for an Order to Show Cause why Armstrong should not be held in

contempt of court for his actions. Rather than responding to the OSC Armstrong

fled the country, moving to Canada where, to the best of my knowledge, he currently

.resides. Armstrong's flight required that we serve tire Order to Show Cause by

publication.

    12. Judge Thomas reviewed the evidence and found Armstrong in

contempt of court. On July 5, 1997 he issued an Order of Contempt which states,

in part:

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ARMSTRONG willfully disobeyed the Order [of
Permanent Injunction]. On or about January 26, 1997
ARMSTRONG sent a document entitled
DECLARATION OF GERALD ARMSTRONG to the
United States District Judge Ronald M. Whyte. Judge
Whyte was at the time presiding ever three cases in
which the plaintiff is RTC. In the Declaration,
ARMSTRONG recites his understanding that he was
prohibited from sending such a Declaration directly to
litigants and states that he is instead sending it directly
to Judge Whyte in the hopes of influencing his decision
on a pending matter. This evidences ARMSTRONG's
willful disobedience of the Order and Judgment."

(A true and correct copy of said order is attached hereto and incorporated herein by

reference as Exhibit [F]) In finding Armstrong guilty of Contempt of Court, the

Marin Court noted that "the Order was valid and enforceable; ARMSTRONG had

knowledge of the Order, and had the ability to comply with the Order and willfully

disobeyed the Order." (Id. )

    13. The Court sentenced Armstrong to a $1,000 fine and 48 hours

confinement in the county jail. (Id.) Armstrong did not appeal the Order of

Contempt and the time for filing a notice of appeal has passed. On August 6, 1997

Judge Thomas issued a Bench Warrant for Armstrong's arrest, a true and correct

copy of which is attached hereto as Exhibit [G]. The Warrant is still outstanding and

Armstrong has not appeared to satisfy the terms of the Order of Contempt.

    14. Further, despite the Order of Permanent Injunction, despite the Order

of Contempt, and despite the Bench Warrant, from his refuge in Canada, Armstrong

has continued to flagrantly violate the order of the Marin Court and ignore his

contractual duties to the Church per his 1986 settlement. On October 28, 1997

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Armstrong appeared on a German television broadcast for which he had given an

extensive interview, discussing matters at length which constituted repeated violations

of the Order of Permanent Injunction. I have viewed a videotape of this broadcast

and have personally observed Armstrong's numerous statements in violation of that

Order. The videotape is not made part of the record at this time in order not to

burden the court. The videotape and/or a transcript, can be provided promptly if

necessary.

    I declare under penalty of perjury pursuant to the laws of the State of

California that the foregoing is true and correct. Executed this 18th day of

November, 1997

 

[signed]
ANDREW H. WILSON

 

 

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Exhibit [A]
Armstrong Deposition Excerpt 06-24- 1992

Exhibit [B]
Unpublished opinion Court of Appeal 05-16-1994

Exhibit [C]
a) Injunction
b) Judgment

Exhibit [D]
Armstrong Letter to Los Angeles City Council 10-7-1996

Exhibit [E]
Wilson Letter to Armstrong 10-23-1996

Exhibit [F]
Order of Contempt 07-05-1997

Exhibit [G]
Bench Warrant 08-06-1997

   

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