CHURCH OF SCIENTOLOGY INTERNATIONAL, a California nonprofit
religious corporation,

Plaintiff,

vs.

GERALD ARMSTRONG, an individual;
and DOES 1 THROUGH 50, inclusive,

Defendants.

CASE NO. CV 021632

PLAINTIFF'S SEPARATE STATEMENT OF UNDISPUTED FACTS AND SUPPORTING EVIDENCE IN SUPPORT OF MOTION FOR SUMMARY JUDGMENT FILED CONCURRENTLY HEREWITH

Date: February 3, 2004
Time: 9:00 a.m.
Dept: L

Complaint Filed: April 2, 2002
Trial Date: March 5, 2004

UNDISPUTED MATERIAL FACT

1. On December 6, 1986, CSI and defendant Armstrong entered into a Mutual Release of All Claims and Settlement Agreement ("Agreement") in the case entitled Church of Scientology International v. Armstrong, Case No. C 420153. In consideration, Armstrong made various covenants, including the following contained in paragraph 7(D) of the Agreement:

      "Plaintiff agrees never to create or publish, or attempt to publish, and/or assist another to create for publication by means of magazine, article, book or other similar form,
any writing or broadcast or to assist another to create, write, film or video tape or audio tape any show, program or movie, or to grant interviews or discuss with others, concerning their experiences with the Church of
Scientology, or, concerning their personal or indirectly acquired knowledge or information concerning the Church of Scientology, L. Ron Hubbard or any of the organizations, individuals and entities listed in Paragraph 1
above. Plaintiff further agrees that he will maintain strict confidentiality and silence with respect to his experiences with the Church of Scientology and any knowledge or
information he may have concerning the Church of Scientology, L. Ron Hubbard, or any of the organizations, individuals or entities listed in Paragraph 1 above . . . .
Plaintiff agrees that if the terms of this paragraph are breached by him, that CSI and the other Releasees would be entitled to liquidated damages in the amount of $50,000 for each such breach."

SUPPORTING EVIDENCE

1. Exhibit A to Plaintiff's Complaint; Wilson Decl., ¶2, Exhibit A thereto; Wilson Decl., ¶3, Exhibit B thereto, Defendant's Answer, at ¶ 2:5-7; ¶ 14:17-22.

UNDISPUTED MATERIAL FACT

2. Several years later, plaintiff filed several breach of contract actions against defendant Armstrong which were consolidated in this Court in the case entitled Church of Scientology International v. Armstrong, Case Nos. 152229 and 157680 ("Consolidated Action").

SUPPORTING EVIDENCE

2. Wilson Decl., ¶¶4-5, Exhibits C and D thereto, Complaints filed in Church of Scientology International v. Armstrong, Case No. 152229 and Church of Scientology International v. Armstrong, Case No. 157680; Wilson Decl., ¶3, Exhibit B thereto at ¶¶ 2:5- 7; 2:28-3:1.

3. In the Consolidated Action, plaintiff CSI sought liquidated damages pursuant to the terms of the Agreement, as well as injunctive relief to prevent any future breaches of the Agreement by defendant Armstrong, including breaches of paragraph 7(D) of the Agreement.

3. Wilson Decl., ¶¶4-5, Exhibits C and D thereto, Complaints filed in Church of Scientology International v. Armstrong, Case No. 152229 and Church of Scientology International v. Armstrong, Case No. 157680; Wilson Decl., ¶3, Exhibit B thereto at ¶¶ 2:5-7; 2:28-3:1.

4. Armstrong, represented by counsel, cross-complained against plaintiff in the Consolidated Action challenging the validity of the Agreement on a number of grounds, including violation of the First Amendment, duress and abuse of process.

4. Wilson Decl., ¶6, Exhibit E thereto, Certified copy of Armstrong's Cross-Complaints in the cases entitled Church of Scientology International v. Armstrong, Case No. 152229 and Church of Scientology International v. Armstrong, Case No. 157680.

5. On October 17, 1995, following a motion for summary adjudication of issues brought by CSI against defendant Armstrong, this Court entered an Order of Permanent Injunction in the Consolidated Action

5. Wilson Decl. ¶7, Exhibit F thereto, Order of Permanent Injunction dated October 17, 1995, entered in Church of Scientology International v. Armstrong, Case No. 157680.

UNDISPUTED MATERIAL FACT

adjudicating the following:

"1. Plaintiff and defendant freely and voluntarily entered into a Mutual Release of All Claims and Settlement Agreement in December, 1986.

2. Plaintiff performed all of its obligations pursuant to the Agreement.

3. Defendant Armstrong received substantial consideration for the promises which he made in the Agreement.

4. Since 1990, defendant Armstrong has repeatedly breached paragraphs 7(D).

9. 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 . . .

10. Plaintiff's legal remedies are inadequate insofar as the scope of the relief ordered below is concerned . . .

Accordingly, the Court finds that entry of a permanent injunction in this action is necessary in this action because pecuniary compensation could not afford the Church adequate relief, and the restraint is necessary in order to prevent a multiplicity of actions for breach of contract."

Thereafter, the Court permanently

UNDISPUTED MATERIAL FACT

enjoined defendant Armstrong from "doing directly or indirectly any of the following":

"Facilitating in any manner the creation, publication, broadcast, writing, filming audio recording, video recording, electronic recording or reproduction of any kind of any book, article, film, television program, radio program, treatment, declaration, screenplay or other literary, artistic or documentary work of any kind which discusses, refers to or mentions Scientology, the Church and/or any of the Beneficiaries (which includes plaintiff herein, CSI); 5. Discussing with anyone, not a member of Armstrong's immediate family or his attorney, Scientology, the Church, and/or any of the Beneficiaries (including CSI.)."

6. On May 2, 1996, the Order of Permanent Injunction was incorporated into a judgment against defendant Armstrong.

6. Wilson Decl., ¶8 and Exhibit G thereto, May 2, 1996 Order of Permanent Injunction issued in the Consolidated Actions of Church of Scientology International v. Armstrong, Case No. 152229 and Church of Scientology International v. Armstrong, Case No. 157680; Answer of Gerry Armstrong Answer, ¶ 2:5-7.

7. Thereafter, on or about November 13,

2000, plaintiff applied Ex Parte to the Court

7. Wilson Decl.¶9, Exhibit H thereto, Ex

Parte Application for Order to Show Cause

UNDISPUTED MATERIAL FACT

in the Consolidated Action for an Order to Show Cause why defendant Armstrong should not be held in contempt for violating the October 17, 1995 Order of Permanent Injunction for engaging in 131 breaches of the October 17, 1995 Injunction.

SUPPORTING EVIDENCE

Re: Contempt and supporting documents thereto.

8. These 131 postings are written publications in which he discusses his and others' experiences in the Church of Scientology and he makes mention of and discusses information he has concerning the Church of Scientology.

8. Wilson Decl., ¶2 and Exhibit A thereto, the Mutual Release of All Claims and Settlement Agreement; Wilson Decl., ¶3, Exhibit B thereto, Defendant's Answer, ¶15:4-5, ¶ 16:8-17, ¶¶ 27-30:2, ¶ 35:21-24, ¶ 48:12, 22-26.

9. Defendant Armstrong was given an opportunity and did file an opposition to the Ex Parte Application, asserting the same arguments he proffered earlier in the Consolidated Action.

9. Wilson Decl.,¶10 and Exhibit I thereto, Armstrong's Opposition to Order to Show Cause.

10. On July 13, 2001, the Court issued its decision in an Order of Contempt, finding that defendant Armstrong had, in fact, violated the terms of the Injunction by engaging in 131 breaches of the Agreement which are at issue here:

Petitioner (CSI) has shown that: (1) During the period of February 20, 1998 to July 10, 2000, ARMSTRONG
made a total of 131 postings on the Internet, each of which violated one or

10. Wilson Decl., ¶11 and Exhibit J thereto, Order of Contempt issued in the Consolidated Action dated July 13, 2001.

UNDISPUTED MATERIAL FACT

more provisions of the Injunction ... ARMSTRONG did not deny these violations. In his January 9, 2001 declaration under penalty of perjury, ARMSTRONG stated, "I have violated Scientology's Injunction thousands of times since former Marin County Superior. Court Judge [Gary Thomas] signed it in October, 1995."

11. ARMSTRONG has admitted committing the 201 breaches of contract alleged in the First Cause of Action.

11. Wilson Decl. ¶3 and Exhibit B thereto, Answer of Gerry Armstrong at ¶ 14:8-28

Dated: November 17, 2003

By: 

Respectfully submitted:

WILSON CAMPILONGO LLP

[signed] Andrew H. Wilson
Andrew H. Wilson

Attorneys for Plaintiff
CHURCH OF SCIENTOLOGY
INTERNATIONAL