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GREY AND KOHLWECK
Attorneys At Law
1821 Wilshire Blvd.
Suite 210
Santa Monica, CA 90403

(213) 820-4676

Attorneys for Plaintiff

                                              FILED: 8/2/82

SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF LOS ANGELES

CHURCH OF SCIENTOLOGY OF       )  No. 0420153
CALIFORNIA,                               )
                                                 )  COMPLAINT FOR CONVERSION
Plaintiff,                                      )  [CCP 3336], BREACH OF
                                                 )  FIDUCIARY DUTY, IMPRESSION
v.                                               )  OF A CONSTRUCTIVE TRUST
                                                 )  AND DECLARATORY AND
GERALD ARMSTRONG, DOES 1       )  INJUNCTIVE RELIEF [CCP 1060]
through 10, inclusive.                    )
                                                 )
Defendants.                                )
                                                 )
____________________________)

Plaintiff, CHURCH OF SCIENTOLOGY OF CALIFORNIA, as a Complaint
for Conversion, Breach of Fiduciary Duty, Impression of a
Constructive Trust and Declaratory and Injunctive Relief, alleges
as follows:

I.
GENERAL ALLEGATIONS

1. Plaintiff is informed and believes and thereupon alleges
that Defendant GERALD ARMSTRONG (hereafter, "Defendant
Armstrong" or "Armstrong") is currently a resident of Orange
County, California, and at various times herein mentioned has
been a resident of Los Angeles and Riverside Counties.

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2. Plaintiff is presently unaware of the true names and
capacities of Defendants sued herein as DOES 1 through 10,
inclusive, and therefore sues these Defendants by such fictictious
names. Plaintiff will seek leave to amend this complaint
to allege the true names and capacities of said "DOE" Defendants
when the same are ascertained. Plaintiff is informed and believes
and thereupon alleges that each of these fictitiously
named Defendants is responsible in some manner for the occurrences
herein alleged, and that Plaintiff's damages as herein
alleged were proximately caused by their conduct.

3. Defendant Armstrong was a member of Scientology from
February 1971 until, at least, December 1981, during which time
period he was also a member of the Sea Organization, a fraternal
organization of highly dedicated Scientologists who are routinely
assigned to high level positions of reponsibility within
various Scientology organizations. Members of the Sea Organization
often take special vows of confidentiality, as did
Defendant Armstrong in 1979.

4. At all times pertinent to this action, Defendant
Armstrong was a staff member of the Church of Scientology of
California, Plaintiff herein. Defendant Armstrong vas not paid
a wage for the performance of his duties as a staff member, but
rather he was allocated a weekly allowance, free board and lodging,
transportation, uniforms, free Scientology Services and
free tuition. Defendant Armstrong accepted this recompense and
the opportunity to serve CSC voluntarily and without reservation.

5. Plaintiff, CHURCH OF SCIENTOLOGY OF CALIFORNIA (hereafter
"Plaintiff" or "CSC"), is a not for profit corporation

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organized and existing by virtue of the laws of the State of
California. It is a religious organization and is one of the
worldwide Churches of Scientology. Its principal place of business
is 4833 Fountain Ave., Los Angeles, California, located
within the Central District of this Court.

6. Commencing in January 1980 and continuing thereafter
through December, 1981, Defendant Armstong was responsible for a
project which involved collecting, cataloguing, preserving, and
otherwise maintaining information, artifacts and memorabilia
concerning the religion of Scientology, its various organizations,
including Plaintiff CSC, and the founder of the religion
of Scientology, L. Ron Hubbard. As a part of his responsibilities,
Defendant Armstrong was to locate any documents, information
or artifacts pertaining to the early history of Dianetics
and Scientology and concerning Mr. Hubbard. Defendant Armstrong
was authorized by CSC, at CSC expense, to travel to and interview
individuals with any knowledge about said history of Dianetics
and Scientology or about Mr. Hubbard, his life, writings,
expeditions, or any other matter pertaining to him. Defendant
Armstrong was also authorized by CSC to negotiate for the purchase
of any materials or artifacts that such individuals might
possess. This entire area of activity by Defendant Armstrong
was known as the "Archives Project" and is so referred to herein.
The Archives Project, at all times pertinent to this
action, was located at 4833 Fountain Ave., Plaintiff's principal
place of business. All materials contained in the Archives
Project    , the personal property of Plaintiff CSC.

7. One of the primary purposes of the Archives Project was

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that of gathering and organizing material for an authorized
biography of the life of L. Ron Hubbard. In this respect,
Defendant Armstrong requested and Plaintiff CSC agreed that
Armstrong would be responsible for personally coordinating with
the author who had been retained to write the biography, providing
the author with any information that he might require,
and arranging for any interviews or research that would be of
assistance to said author.

II.
FIRST CAUSE OF ACTION
(Conversion Pursuant to Civil Code
Section 3336)

8. Plaintiff repeats and repleads each and every allegation
contained in paragraphs 1 through 7, above, and incorporates
the same herein as though fully set forth hereat.

9. At all times herein pertinent to this action, and in
particular on or about January 1, 1980 and thereafter, Plaintiff
was, and still is, the owner, and was, and still is, entitled to
possession of certain personal property, specifically: all documents,
manuscripts, memorandum, drafts, memorabilia, artifacts,
photographs, video and audio tape recordings and audio recordings
of every kind that constitute the materials to be preserved
and maintained by the Archives Project.

10. On or about January 1, 1982, and at Los Angeles, California,
the above mentioned property had a value to be proved at
time of trial.

11. Plaintiff is informed and believes, and thereupon alleges
that during the performance of his duties as the custodian
for the Archives Project, and without authorization from the

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Plaintiff, Defendant Armstrong did wrongfully take and convert
to his own use certain of the original materials contained in
the Archives Project. Plaintiff is further informed and believes
and thereupon alleges that Defendant Armstrong did take
and convert to his own use xerographic and photographic paper
and chemicals, and equipment and supplies belonging to Plaintiff
CSC which Defendant Armstrong used to make copies, for his ovn
use and purposes, of materials contained within the Archives
Project.

12. On or about May 26, 27 and June 21, 1982, after discovery
of the wrongful taking and conversion by Defendant Armstrong,
as aforesaid, Plaintiff made writen demand of Defendant
Armstrong for the immediate return of its above-mentioned property
but Defendant failed and refused, and continues to fail
and refuse, to return the property to Plaintiff. True and correct
copies of Plaintiff's written demands for return of the
property are attached hereto and collectively designated as
Exhibit A and made a part hereof.

13. Between the time of Defendant Armstrong's conversion
of the above-mentioned property to his own use and the filing of
this action, Plaintiff has employed its staff in attempting to
determine the extent that materials have been converted from the
Archives Project and has further employed attorneys and investigators
to attempt to regain possession of its property, all to
Plaintiff's further damage in an amount to be proved at time of
trial.

14. The aforementioned acts of Defendant Armstrong were
intentional, deliberate, willful, wanton, malicious, oppressive,

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and were committed with the intent to defraud Plaintiff, and in
reckless disregard of the rights of Plaintiff. Plaintiff is
therefore entitled to recover exemplary and punitive damages in
the amount of $50,000.00.

III.
SECOND CAUSE OF ACTION
(Breach of Fiduciary Relationship)

15. Plaintiff repeats and repleads each and every allegation
contained in paragraphs 1 through 7, above, and incorporates
them herein as though fully set forth hereat.

16. By reason of his solicitation and acceptance of the
assignment as the custodian of the materials to be collected and
maintained in the Archives Project, Defendant Armstrong became a
fiduciary to Plaintiff and assumed duties required by law of
confidentiality, loyalty, and trust regarding the materials
under his custody and control. As a fiduciary to Plaintiff,
Defendant Armstrong also assumed a legal duty to safeguard the
property of Plaintiff and to engage in no act detrimental to
Plaintiff concerning either the use or value of the materials
within his custody and control.

17. As a fiduciary to Plaintiff, Defendant Armstrong also
assumed a duty that he would not personally profit from his
position of trust. As a part of his responsibilities as the
custodian of the Archives Project, Defendant Armstrong was to
coordinate and liaise with the author who was under contract to
write an authorized biography of L. Ron Hubbard. Plaintiff is
informed and believes and thereupon alleges that Defendant Armstrong
accepted a position as a director on the Board of Direc-

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tors of Ralston-Pilot Publishing Co., which Plaintiff is informed
and believes is owned by the author who is under contract to
write the subject biography. Defendant Armstrong thereby incurred
a conflict of interest with Plaintiff which constitutes a
material breach of Defendant's duty to Plaintiff of trust and
loyalty.

18. On numerous occasions, and as recently as on or about
March 18, 1977, Defendant Armstrong has executed non-disclosure
and confidentiality bonds. A true and correct copy of one of
such bonds is attached hereto and identified as Exhibit B. By
virtue of his membership in the Sea Organization, Defendant
Armstrong assumed a fiduciary relationship with Plaintiff, which
includes a duty to maintain confidentiality concerning his work
within the Church of Scientology of California. Plaintiff is
informed and believes and thereupon alleges that Defendant Armstrong
has intentionally and without legal excuse breached his
duty of confidentiality by disclosing confidential information
to unauthorized persons.

19. Plaintiff is informed and believes and thereupon alleges
that Defendant Armstrong has on numerous occasions breached
his duty of confidentiality by disclosing to unauthorized
persons information that he obtained in the course and scope of
his responsibility as the custodian of the Archive Project.
Plaintiff is without knowledge of the extent of material and
information that has been disclosed by Defendant Armstrong but
alleges that the piecemeal dissemination of information by him
has been injurious to its reputation and has caused and is
causing a diminution in the value of the materials in the Ar-

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chives Project in an amount to be proved at time of trial.
Plaintiff is further informed and believes and thereupon alleges
that by reason of Defendant Armstrong's disclosure of such
information, the above referenced authorized biography will not
be written or published pursuant to the terms of the contract
entered into with the above referenced author. Plaintiff has
therefore been additionally damaged in an amount to be proved at
time of trial.

20. On or about May 26, 27 and June 21, 1982, Plaintiff
demanded that Defendant Armstrong cease his unauthorized disclosure
of confidential information but Defendant has failed and
refused, and continues to fail and refuse, to discontinue his
unauthorized disclosures.

21. Between the time of Defendant's unauthorized disclosure
of confidential information and the time of filing of this
action, Plaintiff has been required to employ its staff in
attempting to recompile the material necessary to write and
publish an authorized biography of L. Ron Hubbard and has been
required to employ the services of attorneys in an attempt to
terminate the unauthorized disclosures by Defendant Armstrong,
all to Plaintiff's further damage in an amount to be proved at
time of trial.

22. The aforementioned acts of Defendant Armstrong were
intentional, deliberate, willful, wanton, malicious, oppressive,
and were committed with the intent to defraud Plaintiff, and in
reckless disregard of the rights of Plaintiff. Plaintiff is
therefore entitled to recover exemplary and punitive damages in
the amount of $50,000.00.

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IV.
THIRD CAUSE OF ACTION
(To Impress a Constructive Trust)

23. Plaintiff repeats and repleads each and every allegation
contained in paragraphs 1 through 7 and 15 through 22,
above, and incorporates them by reference as though fully set
forth hereat.

24. Plaintiff is informed and believes and thereupon alleges
that Defendants, and each of them, acting in concert,
intend to use the converted property for their own benefit and
profit.  Because of the conversion of Plaintiff's property and
the breach of fiduciary duty by Defendant Armstrong as herein
alleged and because Defendants, and each of them, by this conduct
have been and will be unjustly enriched at Plaintiff's
expense, a constructive trust should be impressed upon the
property of Plaintiff which is now being held by Defendants, and
Defendant Armstrong should be named as trustee on behalf of
Plaintiff. By the terms of said constructive trust, Defendants,
and each of them, should be required to keep safe and maintain
the said property of Plaintiff and any profits that Defendants,
and each of them, acquire therefrom, for the benefit of Plaintiff,
and to refrain from any and all disclosures of confidential
information that has been obtained by Defendants, and each
of them, concerning Plaintiff or its property.
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VI.
REQUEST FOR DECLARATORY AND INJUNCTIVE RELIEF
(Pursuant to CCP Section 1060)

25. Plaintiff repeats and repleads each and every allegation
contained in paragraphs 1 through 7 and 15 through 22,
above, and incorporates them herein as though fully set forth
hereat.

26. An actual controversy has arisen and now exists between
Plaintiff and Defendant Armstrong concerning their respective
rights and duties in that Plaintiff contends that Defendant
owed to it the duties of a fiduciary and further contends
that these duties have been breached as above set forth.

27. Plaintiff desires a judicial determination of its
rights and duties and a written declaration as to the rights,
duties and obligations of Defendant Armstrong in regard to the
dessimination of information that was formerly within his custody
and control, and as to whether a constructive trust shall be
impressed upon any property of Plaintiff now being held by said
Defendant or those acting in concert with him.

28. A judicial declaration is necessary and appropriate at
this time under the circumstances in order that Plaintiff may
ascertain its rights and duties in regard to the subject materials
and dessimination.

27. Unless preliminarily and permanently enjoined by this
Court, Defendant will his unauthorized dissemination of
confidential information and there exists no adequate remedy at
law. The information is unique in character and damages, as a
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matter of law, cannot adequately compensate Plaintiff for the
unauthorized dessimination of said information.

VII.
PRAYER FOR RELIEF

WHEREFORE, Plaintiff CHURCH OF SCIENTOLOGY OF CALIFORNIA
prays judgment as follows:
 
1. For the first cause of action, general and special
damages according to proof at time of trial.

2. For the first cause of action, an order of the Court
mandating return of Plaintiff's property.

3. For the second cause of action, general and special
damages according to proof at time of trial.

4. For the second cause of action, a temporary restraining
order and a preliminary and, permanent injunction prohibiting
Defendant from disseminating confidential information gained by
reason of Defendant's employment and position of trust to any
person or entity other than those expressly authorized by Plaintiff.

5. For the first and second causes of action, punitive
and exemplary damages in the amount of $50,000.00 per cause of action.

6. For the impression of a constructive trust upon any
property of Plaintiff now being held by Defendants, and each of
them.

7. For a declaration that the materials encompassed in
the Archives Project are the property of the CHURCH OF SCIENTOLOGY
OF CALIFORNIA and that said materials shall be dessiminated,
copied and made available to members of the public only

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with the prior express authorization of said CHURCH OF SCIENTOLOGY
OF CALIFORNIA.

8. For each cause of action, reasonable attorneys' fees
and costs and such other and further relief as the court may
deem just and proper.

Dated: August 2, 1982

GREY AND KOHLWECK
Attorneys At Law

By: Carl E. Kohlweck
Attorneys for Plaintiff


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