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SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF MARIN
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right to maintain those beliefs is the subject of one of the Constitution's most dear protections, freedom of religion. At first blush it is difficult to overcome the inferences which arise from the fact that Armstrong received $800,000 from Scientology to keep his mouth shut, but that is not what Scientology paid him to do. It paid him to dismiss his cross-complaint and mutually agreed to maintain confidentiality as to him in consideration for his reciprocal promise. When Scientology breached this promise, Armstrong was free to speak about it.
actions which it claims to violate the agreement. Indeed, such would have violated the agreement had Scientology not induced Armstrong to enter it based on the fraudulent representations that it wanted a chance to forsake its practice of fair game, both as to the world in general and Armstrong in particular. Of course, continuing to engage in such conduct invalidates the agreement Scientology would have this Court enforce. After all, why would the man - whose defense caused a Los Angeles County Superior Court judge to find that L. Ron Hubbard was a "pathological liar" and the Scientology Organization to be "schizophrenic" and both to systematically violate the civil rights of members - agree that Scientology could slander him for life - Would such a man sell his reputation for $800,000 - No, he would not sell his reputation for any amount of dollars.
leading up to and after the agreement's execution. If the Court does so, and provides a fair hearing to Mr. Armstrong, it will have no choice but to deny summary judgment.
subject of the unrelenting application of Scientology's fair game policy. ( Sep.St. Defendant's Evidence ¶ 1, A.) Such fair game actions included publishing "Suppressive Person Declares" on him, assaulting him, spying on him, filing false charges with the Los Angeles County District Attorney and with the Federal Bureau of Investigation, efforts to entrap him, illegal surveillance and videotaping, battery with a car |
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driven by a hired agent, attempting to involve Armstrong in a freeway accident, filing false declarations, international publications falsely accusing him of crime (so-called "black propaganda"), filing false contempt of court charges, and disseminating confidential statements by Armstrong in pastoral counseling sessions. (Ibid.)
Flynn had been the subject of the unrelenting application of Scientology's fair game policy. (Sep.St. Defendant's Evidence ¶ 1, B.) Such fair game actions included infiltrating Flynn's office, paying known criminals to testify falsely against him, suing him, framing him with a forgery of a $2,000,000 check, and subjecting him to an international "black propaganda" campaign. ( Ibid.)
targeted for further fair game activities. ( Id. at ¶ 1, C) Flynn also told Armstrong that the other fifteen people involved in the "global settlement," of which the Armstrong agreement was a part, would continue to be attacked by Scientology. (Id. at ¶ 1,D)
agreement Scientology had promised to cease all of its fair game activities and attacks against Armstrong and others. (Id. at ¶ 98) In consequence, paragraph 7-I of the settlement agreement states "... the "slate" is wiped clean concerning past actions by any party." Paragraph 18-D states that the agreement is confidential and the parties however may state the civil action was settled. Paragraph 18-D stated that the parties agreed to forbear and refrain from doing any act or exercising any right which was inconsistent with the agreement. (Id. at ¶ 99) Scientology attorney Lawrence Heller, who is the representative of Scientology depicted on the videotape of Armstrong's signing of the agreement, advised one court in 1989 in a motion to quash a deposition subpena served on Gerald Armstrong (that was based on the agreement) that he "was personally involved in the [1986] settlement" and stated under oath "The non- disclosure obligations were a key part of |
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the settlement agreements insisted upon by all parties involved." (Id. at ¶ 101) He further stated,
(Id. at ¶102) When Heller spoke to Armstrong on November 20, 1989, Heller stated that Scientology had obligations of non-disclosure as well as Armstrong. (Id . at ¶ 103)
at ¶ 105) Said attacks included (1) delivering "dead agent" documents to various media representatives ( Id. at ¶ 105, A); (2) publishing its own false descriptions of Armstrong's Scientology experiences (Id. at ¶ 105, B); (3) disseminating to the media an edited, misleading and defamatory version of an illegal videotape that Scientology agents had made of him ( Id. at ¶ 105, C); (4) disseminating documents from the original Armstrong litigation which Scientology had demanded be sealed (Id. at ¶ 105, D); (5) filing affidavits about him in a lawsuit in England which falsely stated that Armstrong violated court orders and was an admitted agent provocateur of the U.S. Government (Id. at ¶ 105, E); (6) threatening to sue Armstrong if he even talked to attorneys in the English case where false statements were being made about him (Id. at ¶ 105, F); (7) threatening to expose Armstrong's private writing if he failed to help prevent a litigant from gaining access to the original Armstrong case file (Id . at ¶ 105, F); (8) threatening him with being sued if he testified about Scientology pursuant to a subpoena ( Id. at ¶ 105, G); and (9) threatening to sue Armstrong for attending the public hearing on its motion to quash service of the deposition subpoena with which he had been served. ( Id. at ¶ 105, H.)
enforced was that Scientology was free to attack him or anyone else, that it was going to continue fair game as before the agreement's execution, and that he would be legally unable to respond to attacks on his reputation or otherwise defend himself and others, he would have never signed the agreement for all the money in the world. (Id. at ¶ 104 )
to file petitions in the Court of Appeal requesting permission to participate in the then-pending appeal that Scientology had taken from the 1984 decision in the Armstrong case, and the appeal that Scientology had |
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taken from the order unsealing the Armstrong court file. Over the objections of Scientology, the Court of Appeal granted Armstrong's petitions (which on their face violated the provisions of 4-B of the agreement), and unsealed the settlement agreement which Armstrong had attached as a "sealed exhibit" to his petitions. (Id. at ¶ 106)
attacks on him which included disseminating "dead agent packs" of "black propaganda" which provided Scientology's false characterizations of Armstrong including that Armstrong (1) testified falsely at trial (Id. at ¶107, A, a); (2) had "adopted a degraded lifestyle" (Id. at ¶ 107, A, b); (3) was "apparently naked" in a newspaper photo ( Id. at ¶107, A, c); (4) is connected to a "referral agency for those who engage in the illegal activity of kidnapping adults" (Id. at ¶ 107, A, d); (5) defense at his 1984 trial "was a sham and a fraud" (Id . at ¶ 107, A, e); (6) that the Los Angeles Police Department "authorized [Scientology's] surreptitious videotapes of Armstrong (Id. at ¶ 107, A, f); (7) conspired to plant fabricated documents in Scientology files and tell the internal Revenue Service to conduct a raid (Id. at ¶ 107, A, g); (8) wanted to plunder Scientology for his own financial gain (Id. at ¶ 107, A, h); (9) never intended to adhere to the terms of the settlement agreement (Id. at ¶ 107, A, i); (10) was motivated in writing attorney Lieberman regarding the Nothling litigation by greed and power ( (Id. at ¶ 107, A, j); (11) was incompetent as a researcher on the Hubbard biography project (Id. at ¶ 107, A, k); (12) had perjured himself about surrendering documents to the Court (Id. at ¶ 107, A,1); and (13) wanted to orchestrate a coup in which members of the U.S. Government would wrest control of Scientology (). Id. at ¶107, A, m
time that Armstrong petitioned the Court of Appeal, Scientology continued its attacks on him which included that he was formerly a heavy drug user, paid to provide homosexual sex, is psychotic and lives in a world of delusion. ( Id. at ¶ 107, C, a-d) Scientology used transcripts and other documents which it had insisted be sealed in the original Armstrong litigation to attack him, ( Id . at ¶ 107, B), and stating in the media that Armstrong had posed naked in the newspaper (Id. at ¶ 107, D, E) One of its agents stated that Armstrong has AIDS, and that he and his attorney Ford Greene have a "fuck buddy" relationship. (Id. at ¶ 107, F, G) Scientology has filed declarations in various courts containing false charges about Armstrong, and then using the settlement agreement to prevent or punish him from or for responding thereto. (Id . at ¶ 107, H) |
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It has attempted to have Armstrong jailed for contempt of court based on mischaracterizations of his actions in conjunction with the manufacture of evidence: (Id. at ¶ 107, I) Scientology provided documents to Premiere Magazine regarding Armstrong including partial transcripts of the illegal Ingram videotaping of Armstrong and then using the settlement agreement to punish Armstrong for responding thereto. (Id. at ¶ 107, J) Scientology has perpetrated fair game actions on Armstrong's friends and associates including Ford Greene, Hana Whitfield, Dennis Erlich, Lawrence Wollersheim, Jonathan Atack, Margery Wakefield, Nancy McLean and Malcolm Nothling. (Id. at ¶ 108)
Scientology's interpretation of the settlement agreement is that it can say whatever it wants about Armstrong to anyone in any form, and that he has no right to respond thereto. ( Id. at ¶ 109 ) Armstrong has been subjected to Scientology's policy of fair game since 1982. (Id. at ¶ 110) Armstrong's original cross-complaint against Scientology for fraud and years of fair game was set in December 1986 for trial in March 1987. (Id. at ¶ 111 ) Scientology promised to pay money, cease fair game against him and others, and execute a general release. Armstrong promised to dismiss his cross- complaint and execute a general release. Neither side was to use information about the other in the future so that there would be a "clean slate" between them. Armstrong never agreed and the agreement does not state that Scientology may say or publish whatever it wants about Armstrong, and that he waived the right to respond to such statements. (Id. at ¶ 112 )
complaint and release it from liability for its acts prior to settlement. Armstrong never agreed to continue to be fair game, a punching bag, willing victim, or a tool for Scientology's obstruction of justice. He would never do so for any amount of money. (Id. at ¶ 116-117)
Judge Breckenridge's 1984 decision, the Court of Appeal nonetheless allowed Armstrong to so do. (Id. at ¶ 113-115) In addition, a trial judge has condemned the agreement as one-sided and fundamentally unfair.
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(Id. at ¶ 120) By dint of contract, Scientology has prevented Armstrong's witnesses, including his former attorneys Michael J. Flynn, Bruce Bunch and Julia Dragojevic - from providing evidence to Armstrong in the instant action. Were they not so constrained, they would provide evidence devastating to Scientology.
fair game policy, Judge Breckenridge ruled that Scientology did not have "clean hands" as to Armstrong. (Id. at ¶126) Judge Breckenridge's decision was affirmed in its totality by the Court of Appeal which stated that the "declares" subjected Armstrong to the "Fair Game Doctrine" "which permits a suppressive person to be 'tricked, sued, or lied to or destroyed ... [or] deprived of property or injured by any means by any Scientologist." (Id . at ¶ 127) Following the Breckenridge decision Scientology continued to subject Armstrong, and his attorney Michael J. Flynn, to fair game. (Id. at ¶ 128- 129) Scientology promised to discontinue fair game against Armstrong and others as an inducement for settlement, and continued fair game against Armstrong since the settlement. (Id. at ¶ 130 )
pubic controversy by publishing and disseminating its own versions of his experiences, and had continued thereafter to publish and disseminate its versions of his experiences. (Id. at ¶ 131) Scientology claims by the settlement that it is free to comment on Armstrong, but that Armstrong is prohibited from commenting in response. (Id. at ¶ 132) Scientology characterizes Armstrong's statements, which it claims it is free to comment on, as "often bizarre allegations." (Id. at ¶ 133 )
Scientology lawyer Lawrence Heller testified that "[a]t the time of the Armstrong settlement, information from Mr. Armstrong was being used in a number of cases around the world."(Id. at ¶ 134 ) Scientology staff member Kenneth Long stated in a declaration executed January 19, 1995, that prior to December 1986, Armstrong had testified in 15 cases for a total of 28 trial days, and had executed 28 declarations in 15 cases all of which concerned Scientology and/or its related entities. Long characterizes |
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Armstrong as "an anti-Church litigant and a professional witness against the Church in other litigation" and "a paralegal who worked extensively on anti-Church cases." (Id. at ¶ 136) In Armstrong's opinion "[t]he whole set of 'settlement agreements,' which are commonly known as the Flynn agreement,' are unfair to anyone who litigates either as a defendant or plaintiff against Scientology, since these agreements remove knowledgeable witnesses from the legal arena and drive up litigation costs. The 'agreements' are also unfair to the public because they allow Scientology's leaders to rewrite history, lie about judicially credited information, attack the sources of that information without response, and convey the idea that it is futile to speak the truth or oppose their tyranny." (Id. at ¶ 137)
words of L. Ron Hubbard. (Id. at ¶ 140-141) The purpose of Scientology's religious orders is to carry out the religious and administrative activities of Scientology. (Id. at ¶ 140-141.) From 1971 through 1981, Armstrong was a member of Scientology's religious order, the Sea Organization, which is the period of almost all of his significant experiences with Scientology. (Id. at ¶ 144) Armstrong believes that his experiences in Scientology are religious, that God guided him to see that the faith he had put in L. Ron Hubbard and Scientology was misplaced, that God kept him from being completely taken over by Scientology's indoctrination, mind control, threats and punishments, and that God kept Armstrong's heart from hardening despite the way that Scientology treated him. (Id. at ¶ 146) Armstrong also believes that God led him into L. Ron Hubbard's archives and biography project in order to study Hubbard's secret papers so as to document Hubbard's duplicity and to free Armstrong's faith from Scientology where it had been misplaced. (Ibid.) Armstrong believes that God both protected Armstrong (Id. at ¶ 147 ) let him be terrorized and set up by Scientology. (Id. at ¶ 148) Armstrong also believes that God brought him and his attorney Michael Flynn together to fight the evil of Scientology. (Id. at ¶ 149) Armstrong believes that God speaks to him, and in 1986 founded a church. (Id. at ¶ 150)
allowed Flynn to "lose heart" and have Armstrong agree to the instant settlement agreement. ( Id. at ¶ 151- 152) Armstrong believes that God allowed Flynn to respond to Armstrong's objections about the impossibility of the agreement and the liquidated damages clause by saying, "Gerry, it's not worth the |
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paper it's printed on. You can't contract away your Constitutional rights" and that Scientology was paying Armstrong to dismiss his lawsuit. (Id. at ¶ 152) Armstrong believes that God kept him from responding to Scientology's violations of the settlement agreement until he was served with a deposition subpena at which time Armstrong believes that God brought him to a determination to do what he could to bring to light and correct injustice and evil. (Id. at ¶ 155) III. ARMSTRONG HAD NO FREEDOM OF CONSENT
real or free when it has been obtained through duress or menace. ( Civil Code § 1567 (1)(2).) Sections 1569 (1) and (3) of the Civil Code defines duress as the (1) "[u]nlawful confinement of the person of the party, . . ." or (2) "[c]onfinement of such person, lawful in form, but fraudulently obtained, or fraudulently made unjustly harassing or oppressive." The cases, however, have established much broader definitions, and consequently, the language of the decisions can rarely be reconciled with the statutory language. For example, in Harlan v: Cladding, McBean & Co. (1907) 7 Cal.App. 49, duress means a condition of mind produced by improper external pressure or influence that practically destroys the free will of a person and causes him to do an act or enter into a contract not of his own volition. In Sistrom v. Anderson (1942) 51 Cal.App.2d 213, duress is effectuated by an unlawful threat which overcomes the will of the person threatened and induces him to do an act that he is not bound to do and would not otherwise have done. Steffen v. Refrigeration Discount Corp. (1949) 91 Cal.App.2d 494, states that the test of duress, at its harshest, is what would have influenced the conduct of a reasonable man. Indeed, the modern tendency is to find duress wherever one, by the unlawful act of another, is induced to make a contract under circumstances which deprive him of the exercise of free will. See Keithley v. Civil Service Board (1970) 11 Cal.App.3d 443; Balling v. Finch (1962) 203 Ca1.App.2d 413; Gross v. Needham (1960) 184 Ca1.App.2d 446; Lewis v. Fahn (1952) 113 Ca1.App.2d 95; Sistrom, 51 Ca1.App.2d at 213. Under this standard, duress is to be tested, not by the nature of the threat, but by the state of mind induced in the victim. Balling, 203 Ca1.App.2d at 413; Lewis, 113 Ca1.App.2d at 95.
injury to the character of such person. (Civil Code § 1570 (3) .) |
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"Menace" means something different from "force." Thus, a
mere verbal threat to have a mother
in order to deprive him of contractual volition and induce him to act to his own detriment, consent thereto is said to have been vitiated by menace. (Goldstein v. Enoch (1967) 248 Cal.App.2d 891, 894-895)
"suppressive person," subjected him to certain actions, pursuant to its fair game policy, which constituted duress and menace. ( Sep.St. ¶ 1, A) Such acts included assaulting him, spying on him, filing false charges with the Los Angeles County District Attorney and with the Federal Bureau of Investigation, efforts to entrap him, illegal surveillance and videotaping, battery with a car driven by a hired agent, attempting to involve Armstrong in a freeway accident, filing false declarations, international publications falsely accusing him of crime (so-called "black propaganda"), filing false contempt of court charges, and disseminating confidential statements by Armstrong in pastoral counseling sessions. (Ibid.)
Flynn had also been the subject of the unrelenting application of Scientology's fair game policy. (Sep.St. Defendant's Evidence ¶ 1, B.) Such fair game actions included infiltrating Flynn's office, paying known criminals to testify falsely against him, suing him, framing him with a forgery of a $2,000,000 check, and subjecting him to an international "black propaganda" campaign. ( Ibid.)
for further fair game activities. (Id. at ¶ 1, C) Flynn also told Armstrong that the other fifteen people involved in the "global settlement," of which the Armstrong agreement was a part, would continue to be attacked by Scientology. (Id. at ¶ 1, D).
Flynn represented, it is clear that Armstrong's consent to the agreement was obtained by duress and menace, and therefore not free. The elements of actual fraud, whether in contract or in tort, have been stated as follows: There |
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must be (1) a false representation or concealment of a material fact (or, in some cases, an opinion) susceptible of knowledge, (2) made with knowledge of its falsity or without sufficient knowledge on the subject to warrant a representation, (3) with the intent to induce the person to whom it is made to act upon it; and such person must (4) act in reliance upon the representation (5) to his damage. (Harding v. Robinson (1917) 175 Cal. 534, 538; Wolfe v. Severns (1930) 109 Cal.App. 476, 485; 1 Witkin, Summary of California Law § 393.)
Specifically, "[t]he suppression of that which is true, by one having knowledge or belief of the fact" is actual fraud. (Civil Code § 1572 (3); Williamson & Vollmer Engineering v. Sequoia Ins. Co. (1976) 64 Cal.App.3d 261, 273; 1 Witkin, Summary of California Law, § 398.) The Restatement points out that concealment is an affirmative act, equivalent to a misrepresentation (comment a), and that it usually consists either in actively hiding something from the other party, or preventing him making an investigation that would have disclosed the true facts (Comment b).
Cal.App. 137.
was to provide it with an opportunity to cease its fair game activities against him and others. Since it is clear that Scientology not only did not cease such activities, but never intended to do so, Armstrong's consent to the agreement was vitiated. (Civil Code § 1565, 1567)
1 Armstrong asks the Court to realize that this argument was never
presented to Judge Sohigian when |
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Paragraph 7-I of the agreement states that the slate between Scientology and Armstrong is wiped clean and that neither party shall use in the future any information obtained regarding the other that was the subject of the settled litigation. (Sep.St. 99) The parties' intent in this regard was clearly articulated by Scientology attorney Lawrence Heller almost three years later.
International, Inc., et al., LASC No. C694401, Scientology attorney Lawrence E. Heller filed a motion to prevent Armstrong from testifying pursuant to subpena. In his memorandum, Heller discussed the "block settlement" of which the Armstrong agreement was a part. He stated:
(Sep.St. 102: Ex. 1 (A)(D) at 4:9-19.) In his sworn supporting declaration, attorney Heller testified:
(Sep.St. 101: Ex. 1 (A)(D) at 8:15-9:7.)
rules are the following:
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is expressed. (Wal-Noon Corp. v. Hill (1975) 45 Cal.App.3d 605, 611-12.) A contract includes not only what is expressly stated, but also what is necessarily implied from the language used. (Mercer v. Lemmens (1964) 230 Cal.App.2d 167, 171.) Where express covenants fail to cover phrases necessary to make workable and meaningful the covenants expressed, implied covenants may be resorted to. (Foley v. US. Paving Co. (1968) 262 Cal.App.2d 499, 505-06.) Stipulations which are necessary to make a contract reasonable are implied in respect to matters as to which the contract manifests no contrary intention. (Straus v. North Hollywood Hospital (1957) 150 Cal.App.2d 306, 309 P.2d 541, 545.) A fair and reasonable interpretation of a contractual provision, rather than one leading to harsh, unreasonable or inequitable results, is always preferred. (Ibid.) When the law implies a promise from the terms of a written contract, the promise is as much a part of the .contract as if it were written out. (Amen v. Merced County Title Co. (1962) 58 Cal.2d 528, 532.) Unexpressed provisions of a contract may be inferred from the writing or from external facts. (California Lettuce Growers v. Union Sugar Co. (1955) 45 Cal.2d 474, 289 P.2d 785, 790.) The rules controlling the exercise of judicial authority to insert implied covenants require several concurrent conditions: (1) the implication must arise from the language used or it must be indispensable to effectuate the intention of the parties; 2 (2) it must appear from the language used that it was so clearly within the contemplation of the parties that they deemed it unnecessary to express it; (3) implied covenants can only be justified on the grounds of legal necessity; (4) a promise can be implied only where it may be rightfully assumed that it would have been made if attention had been called to it; and (5) there can be no implied covenant where the subject is completely covered by the contract. (Adkins v. Lear, Inc. (1968) 67 Cal.2d 882, 905; Addiego v. Hill (1965) 238 Cal.App.2d 842, 847; Walnut Creek Pipe Distrib. v. Gates Rubber Co. (1964) 228 Cal.App.2d 810, 815-16.) Both the language of the agreement and the November 1989 declaration and memorandum of Scientology attorney Heller illustrate that confidentiality was indispensable to effectuate the intentions of 2 One vital element in the construction of a contract is the
intention of the parties in relation to its |
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both Armstrong and Scientology. Indeed, a review of the agreement makes it clear that both parties desired to terminate their disputatious interactions with one another and leave one another alone. There is nothing in the agreement that states that Scientology could make whatever public statements it wanted to about Armstrong, but that he would have to remain silent no matter what aspersions were cast his way. To impose such a condition would make no sense because it would allow Scientology to slander Armstrong and literally re-write history in order to suit its own ends without any regard to truth or accuracy. Armstrong's history in the litigation before Judge Breckenridge illustrates a profound rejection of any such result. 3 Thus, under the circumstances there is a legal necessity for the Court to imply that the settlement terms were reciprocal because it would be grossly unfair to Armstrong since it was never his intent to have his own personal history revised according to the predilections of Scientology, and ultimately be jailed after a Court issued injunctive relief based on the agreement that he could never respond thereto.
with respect to Scientology. Although the agreement is silent whether Scientology was similarly prohibited from discussing its knowledge of Armstrong, Mr. Heller was not. Therefore, to imply that the parties' intention was for Scientology to be subject to the same confidentiality as was Armstrong does not contravene any express term of the agreement and conforms with Mr. Heller's initial representations to the judiciary regarding the intent of the agreement. To imply reciprocity would not violate the intent of the parties. Indeed, not to imply such a term would violate the expectations of Armstrong and deny him the fruits of his bargain. "If without the implied obligation the fruits of the contract would be denied to one of the parties, the intent that such an obligation should not exist must clearly appear from the express terms of the contract." (Bergum v. Weber (1955) 136 Cal.App.2d 389, 288 P.2d 623, 626.) Moreover, the "clean slate" provision supports the conclusion that the confidentiality provisions were reciprocal, and rebuts the conclusion that the parties intended that Scientology could say whatever it wanted about Armstrong, and that it could sue him if he tried to respond.
3 See generally, Ex. 1(A)(A), Memorandum of Intended Decision,
Church of Scientology of |
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law implies in every contract a covenant of good faith and fair dealing. ( Seaman's Direct Buying Service, Inc. v. Standard Oil Co. (1984) 36 Ca1.3d 752, 768.) The implied promise requires each contracting party to refrain from doing anything to impair the right of the other to receive the benefits of the agreement. (Betts v. Allstate Ins. Co. (1984) 154 Cal.App.3d 688, 705.) This covenant not only imposes upon each contracting party the duty to refrain from doing anything which would render performance of the contract impossible by any act of his own, but also the duty to do everything that the contract presupposes that he will do to accomplish its purpose. (McWilliams v. Holton (1967) 248 Cal.App.2d 447, 451.) The precise nature and extent of the duties imposed by such implied promise will depend upon the nature and purpose of the underlying contract and the legitimate expectations of the parties. ( Tollefson v. Roman Catholic Bishop (1990) 219 Cal.App.3d 843, 854.) Thus, regardless of its origin, the covenant of good faith and fair dealing is designed to effectuate the intentions and reasonable expectations of the parties reflected by mutual promises within the contract. (Ibid.)
Armstrong of the benefit of the bargain of the settlement agreement. Rather than leave its history with Armstrong to rest silently in the past insulated by mutual promises of confidentiality, Scientology resurrected its old conflict with Armstrong when to do so suited whatever was its particular litigation or public relations strategy of the moment. Such conduct violates the implied covenant of good faith and fair dealing and excuses counter-performance by Armstrong.
his obligations. He who seeks to enforce a contract must show that he has complied with the conditions and agreements of the contract on his part to be performed. (Pry Corporation of America v. Leach (1960) 177 Cal.App.2d 632, 639.) A covenant is a promise to render some performance. A breach of covenant excuses the other party's performance. (Witkin, l Summary of California Law (1987) Contracts, § 723, 757.) Thus, one who himself breaches a contract cannot recover for a subsequent breach by the other party, (Silver v. Bank of America (1941) 47 Cal.App.2d 639, 118 P.2d 891, 894), because a party to a |
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contract need not tender performance if the conduct of the other party amounts to a refusal to perform. (United California Bank v. Maltzman (1975) 44 Cal.App.3d 41, 52.)
H) Scientology cannot have it both ways.
can be specifically enforced. (Moving Memorandum at p. 16:3-25.) Upon applying Civil Code section 3391 to the circumstances of this case, however, Armstrong cannot be compelled to specifically perform the agreement. 4 An injunction cannot be granted to prevent the breach of a contract, the performance of which would not be specifically enforced. (Thayer Plymouth Center, Inc. v. Chrysler Motors Corp. (1967) 255 Cal.App.2d 300, 304, 63 Ca1.Rptr. 148.)
manifestly harsh and oppressive as to shock the conscience; it must be affirmatively shown that such contracts are fair and just." (Jacklich v. Baer (1943) 57 Cal.App.2d 684, 135 P.2d 179, 183.) The rationale for this rule is grounded in a common sense recognition of the rules of fair play, not fair game.
(Id, 135 P.2d at 184; Chrittenden v. Hansen (1943) 59 Cal.App.2d 56, 138 P.2d 37, 38.) 4 In full, Civil Code section 3391 states: "WHAT PARTIES CANNOT BE COMPELLED TO PERFORM. Specific performance cannot be enforced against a party to a contract in any of the following cases: 1. If he has not received an adequate consideration for the contract; 2. If it is not, as to him, just and reasonable; 3. If his assent was obtained by the misrepresentation, concealment, circumvention, or unfair practices of any party to whom performance would become due under the contract, or by any promise of such party which has not been substantially fulfilled; or 4. If his assent was given under the influence of mistake, misapprehension, or surprise, except that where the contract provides for compensation in the case of mistake, a mistake within the scope of such provision may be compensated for, and the contract specifically enforced in other respects, if proper to be so enforced." |
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The burden is on the plaintiff to plead and prove "that the contract is not inequitable or unconscionable" in order to support a decree of specific performance. ( Quan v. Kraseman (1948) 84 Cal.App.2d 550, 191 P.2d 16, 17.)
Scientology's position that it purchased Armstrong's First Amendment Right to Free Speech with respect to activities (concerning which Scientology would otherwise assert falls within its First Amendment Right to Free Exercise of Religion because it involves the time Armstrong was a practicing Scientologist) which for Armstrong constitutes an unquestionably religious experience twelve years in duration, for $800,000. That is an undeniably large sum of money. Scientology, however, did not purchase Armstrong's silence without also giving up its right to talk about him. When determining what Scientology's money bought, the court must consider the overall context of the litigation and the relations of the parties in December 1986. In June 1984, Judge Breckenridge had severely condemned Scientology when holding for defendant Armstrong in the original litigation. 5 Armstrong's cross-complaint seeking compensation for Scientology's fair game actions against him involved serious charges of heinous misconduct was set for trial in early 1987. In July 1986 a Los Angeles County Superior Court jury had awarded Lawrence Wollersheim $5,000,000 in compensatory damages and $25,000,000 in punitive damages against Scientology. Mr. Heller confirmed that the intention of the parties in the settlment was not only that Armstrong not to talk about Scientology, but also that Scientology would not talk about him. In light of these facts, the issue no longer is as clear cut as Scientology presents: it bought Armstrong's First Amendment Free Speech Rights for $800,000. Indeed, it appears that Scientology bought a dismissal of a potentially explosive cross-complaint and agreed to bury the hatchet.
1991. The record is replete, however, with Scientology's breaches of its obligation to maintain silence as to Armstrong. It would be fundamentally unreasonable and unfair, in light of all the facts, for a Court to allow Scientology to say whatever it wants about Armstrong, and to require Armstrong to remain mute in 5 Judge Breckenridge also stated that "Defendant and his counsel
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the face of such attacks. Since Scientology has not done equity under the terms of the agreement as interpreted by its lead settlement counsel, he cannot ask this Court to enjoin Armstrong from speaking about it.
against public policy. What Scientology is seeking to do is to remove Armstrong, and all others like him, from playing any role in the truth seeking process, whether such process be in competition found in the public marketplace of ideas, or in the truth-seeking forum provided by the judiciary. Thus, by eliminating those who are knowledgeable of its history and practices, Scientology seeks, quite literally, to shape public opinion and skew judicial decision-making by writing its own script. Thus, with no regard for the truth, Scientology may rest secure in the knowledge that it has purchased the silence of witnesses adverse to it and the Courts will enforce it.
consideration is unlawful the entire contract is void. (Civil Code § 1608.) Consideration is unlawful if it is contrary to an express provision of law, contrary to the policy of express law, though not expressly prohibited, or otherwise contrary to good morals. (Civil Code § 1667.) The object of the contract is the thing which it is agreed, on the party receiving the consideration, to do or not to do. (Civil Code § 1595.) The object must be lawful when the contract is made. (Civil Code § 1596.) Whether or not a contract in a given case is contrary to public policy is. a question of law to be determined from the circumstances of each particular case. (Bovard v. American Horse Enterprises (1988) 201 Cal.App.3d 832, 838; Kallen v. Delug (1984) 157 Cal.App.3d 940, 951; Russell v. Soldinger (1976) 59 Cal.App.3d 633, 642.) It is a fundamental rule of construction of contracts that all applicable laws in existence when an agreement is made, which laws the parties are presumed to know and have in mind, necessarily enter into the contract and form a part of it without any stipulation to that effect, as if they were expressly referred to and incorporated in the agreement. (People v. Hadley (1967) 257 Cal.App.2d Supp. 871, 881.) "Agreements to suppress evidence have long been held void as against public policy, both in California and in most common law jurisdictions." (Williamson v. Superior Court (1978) 21 Ca1.3d 829, 836-37.) In Brown v. Freese (1938) 28 Cal.App.2d 608, the California Court of Appeal adopted section 557 of the Restatement |
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of the Law of Contracts prohibiting as illegal those agreements which sought to suppress the disclosure of discreditable facts. The court stated:
(Brown 28 Cal.App.2d at 618.) Civil Code § 1668 states:
Penal Code §§ 136, 136.1, and 138; Mary R. v. B. & R. Corp. (1983) 149 Cal.App.3d 308, 196 Ca1.Rptr. 871; Tappan v. Albany Brewing Co. (1889) 80 Cal. 570, 571-572), and the combined effect of the "global settlement" has been to remove the availability as witnesses of most former high-ranking Scientologists, such can "lead to subtle but deliberate attempts to suppress relevant evidence."(Williamson, 21 Ca1.3d at 838.) Thus, where a contract is made either (1) to achieve an illegal purpose, or (2) by means of consideration that is not legal, the contract itself is void. Witkin, Summary of California Law (9th Ed. 1987) Vol. 1, Contracts, § 441 at 396.
"vague expression . . . [that] has been left loose and free of definition in the same manner as fraud." (Safeway Stores v. Hotel Clerks Intn'l Ass. (1953) 41 Cal.2d 567, 575) Public policy means "anything which tends to undermine that sense of security for individual rights, whether of personal liberty or private property, which any citizen ought to feel is against public policy." (Ibid.) Therefore, "[a] contract made contrary to public policy may not serve as the foundation of any action, either in law or in equity, [Citation] and the parties will be left where they are found when they come to court for relief. [Citation.]" (Tiedje v. Aluminum Paper Milling Co. (1956) 46 Cal.2d 450, 454)
judiciary should not be used for such a purpose. |
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Judge Breckenridge found Armstrong to possess a "dedication to the truth" (Ex. 1 (A)(A) at 5:9), and to be "credible [and] extremely persuasive." (Id. at 7:9-12) He found that "the Church or its minions is fully capable of intimidation or other physical or psychological abuse if it suits their ends." (Id . at 8:3-5) Armstrong communicates with God and God has guided Armstrong to continue his devotion to the truth at whatever cost. Armstrong believes that his entire relationship with Scientology over the past 25 years to have been divinely inspired, and that God has called upon Armstrong to speak out and tell the truth about Scientology in order to protect people from fair game. (Sep.St. 139-174) Scientology, a religion, is asking the Court to use its power to censor Armstrong's speech regarding his experiences while he was a member of the Scientology religion, concerning which Armstrong says he was misled into believing and concerning which error he says God enlightened him. 6 Since fair game is a sectarian scripture of the Scientology religion which includes deception and character assassination as preferred methods of conduct, for the Court to enforce the agreement and silence Armstrong is to prefer Scientology's malevolent sectarianism over Armstrong's right to religiously based speech. It must be remembered that Armstrong has done nothing more than speak. To enforce the agreement not only would violate Armstrong's First Amendment right to Free Speech and Free Exercise, it would also violate the anti-establishment clause.
abiding national principle. The realm of individual belief is wholly beyond the power of the state; "[h]eresy trials are foreign to our Constitution." ( United States v. Ballard (1944) 322 U.S. 78, 86) But constitutional protection is not limited to matters of belief. Guaranteeing the "the free exercise" of 6 Armstrong has made a number of religiously-based claims which
appear on their face to be |
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religions, the words of the Constitution's text also shields conduct undertaken for reasons of faith. "[T]he right to the free exercise of religion unquestionably encompasses the right to preach, proselyte, and perform other similar religious functions." (McDaniel v. Paty (1978) 435 U.S. 618, 626 (Burger, C.J.) (plurality opinion), See also Wisconsin v. Yoder (1972) 406 U. S. 205, 220 ["there are areas of conduct protected by the Free Exercise Clause of the First Amendment and thus beyond the power of the State to control, even under regulations of general applicability"]).
of religion ...," (First Amendment to the U.S. Constitution) was a product of religion intolerance experienced by our forebears both in Europe and in the New World. Those who came into conflict with the dominant, government-endorsed religions suffered fines, imprisonment and even death. (Everson v. Board of Education (1947) 330 U.S. 1, 9) In reaction to this religious intolerance, the framers of the Constitution concluded that individual religious liberty could be achieved best under a government which was stripped of all power to tax, support or otherwise assist any or all religions, or to interfere with the beliefs of any religion or group. (Id. 330 U.S. at 11) The Establishment Clause is far more than a mere prohibition upon the formal establishment of a state church:
(330 U.S. at 15-16) Thus, the First Amendment's anti-establishment clause" (Wollersheim v. Church of Scientology (1989) 212 Cal.App.3d 872, 884) guarantees citizens that the government will not use its resources to impose religion on us. (Ibid.) Since "dead agenting" Armstrong by means of "black propaganda" is an application of fair game as is the use of the law to destroy critics, what is at issue here is Scientology's sectarian doctrine and practice to neutralize " suppressive person" defendant Armstrong. Since this strategy is being exercised by means of judicial force, the Court is preferring the Scientolological approach to Truth over the approach employed by Armstrong. Such is not only unconstitutional, it is wrong. |
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summary adjudication should be denied.
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PROOF OF SERVICE
am not a party to the above entitled action. My business address is 711 Sir Francis Drake Boulevard, San Anselmo, California. I served the following documents: DEFENDANT'S OPPOSITION TO MOTION FOR SUMMARY ADJUDICATION ON TWENTIETH on the following person(s) on the date set forth below, by placing a true copy thereof enclosed in a sealed envelope with postage thereon fully prepaid to be placed in the United States Mail at San Anselmo, California: Andrew Wilson, Esquire
BY HAND LAURIE J. BARTILSON,ESQ.
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