Jacksons vs AEG - Day 63 – August 6 2013 – Summary

Katherine and Trent Jackson is in court.

Judge Yvette Palazuelos and attorneys spent more than 1 hour and 15 mins this morning discussing boundaries for next witness, Kathy Jorrie. Jorrie is a lawyer who works for AEG and put together Murray's contract. Both sides argued extensively regarding attorney-client privilege. (ABC7)

There were lots of arguments today today about testimony of Kathy Jorrie. Jorrie is an independent attorney who does a lot of work for AEG Live. She's handled almost 300 matters for the company since its creation. The arguments about what Jorrie would be able to testify about today lasted for more than an hour. Jorrie drafted Conrad Murray’s agreement to work on the “This Is It” tour. There were concerns about atty-client

privilege, hearsay issues. Katherine Jackson’s attorneys objected to Jorrie’s testimony, saying she was being offered as an expert witness. Attorneys Brian Panish, Kevin Boyle and William Bloss argued that if Jorrie testified, AEG was waiving attorney-client privilege. The judge didn’t totally agree with the plaintiff’s attorneys, but she did want to review a heavily redacted email between Jorrie and AEG Live’s general counsel Shawn Trell. She also told AEG attorney Jessica Stebbins Bina to tread carefully. Panish argued a lot of Jorrie’s testimony about her discussions with Conrad Murray, Trell and AEG Live CEO Randy Phillips were hearsay. The judge wanted to avoid Jorrie from providing a legal opinion about whether AEG Live hired Murray, which is for the jury to decide. Stebbins Bina argued that Jorrie should be allowed to testify about certain conversations because the Jacksons’ lawyers are trying to argue to the jury that AEG ignored warning signs about Conrad Murray. She checked his medical licenses in 4 states (CA, NV, TX, HI). Stebbins Bina said if Murray had failed the “smell test” in talks with Jorrie, it would be reasonable if she stopped negotiating with him. The judge’s ruling was that Jorrie could testify about conversations with Murray that related to changes in his contract’s terms. The judge said it didn’t open up every communication between Jorrie and Murray (or even Phillips and Trell) to scrutiny by the plaintiffs. The judge did review the heavily redacted email after during the lunch break and determined its contents couldn't be shown to plaintiffs. Judge Yvette Palazuelos however said that if something in Jorrie's testimony changed her mind, plaintiffs could review unredacted version. Nothing so far persuaded Palazuelos to release the email to plaintiffs. She said she would keep a sealed copy in the court file. (AP)

Kathleen Ann Jorrie Testimony

AEG direct

Attorney Jessica Stebbins Bina did direct examination.

Jorrie said she's in the business for 20 years. She did undergraduate at UCLA and got JD degree at Hastings College of Law. Jorrie is a partner at a law firm, works in Los Angeles. Her firm is an international company with close to 80 attorneys in the LA office. Jorrie said she splits her work between being a trial litigator and transactional work, one who deals with contracts. The focus of her clients has been the entertainment business. Her clients involve motion pictures studios, television content producers. She also works with movie distributors, satellite providers, live entertainment promoters, etc. (ABC7)

Jorrie said she works with AEG Live and AEG in their live entertainment business. She deals with Shawn Trell (who testified earlier on.) The attorney said she worked on more than 75 tour agreements with prominent artists, Rolling StonesBon JoviBritney SpearsKanye West. Over the years, Jorrie said Trell asked her to help negotiate agreements with vendors. She said she normally works on big agreements.(ABC7)

Jorrie worked on third party agreements for "This Is It" tour. She worked on deal with Bravado for merchandising, negotiated stage. Jorrie also did the contract for Dr. Conrad Murray that Michael Jackson requested. "I drafted the version that was sent to Mr. Wooley, who provided my draft agreement to Dr. Murray," Jorrie explained. Jorrie said, to her best recollection, she received a call from Timm Wooley to help prepare an agreement for Dr. Murra in late May of 2009. The attorney never talked to Murray before drawing the first draft. Initial draft was based on basic terms Wooley provided her, Jorrie said. Jorrie: He told me that MJ had agreed to pay $150,000 per month for Dr. Murray, that Dr. Murray was MJ's personal physician.In addition to providing medical care, Dr. Murray would be on call for emergencies, Jorrie explained. Jorrie said nurse would be provided as selected by Dr. Murray and paid for by AEG Live. The doctor would have the air fare to/from London. Also, the doctor and family would be provided housing in London.Wooley said Dr. Murray wanted personal insurance in case he got sick. The payment to commence as of May 1, 2009. Jorrie said he did not say what ended point would be. She put all the terms in the first draft agreement, but most details were missing.Jorrie said she included other important terms: - End date to be end of O2 arena in Sept. 2009 - Termination provision – Indemnity. Jorrie said she sent the draft to Wooley and if he was happy with it to forward it to Dr. Murray.(ABC7)

Jorrie said there were 2 more drafts after the first. She said she looked at other AEG agreement contracts she had prepared AEG as template. Jorrie explained she worked off the base contract and included a bunch of other provisions to the agreement. Jorrie said the "Scope of Services" was a mix between what Wooley requested and her additions. At Wooley's request, she included that Dr. Murray was MJ's personal physician and had been for some time. Jorrie added "services to be provided by Dr. Murray administer those services professionally and greatest degree of care expected." The attorney said Wooley told her that Michael Jackson had asked Dr. Murray to go on tour with him and that MJ would pay for it. Jorrie said she included in the contract "Artist Consent," saying the contract was not enforceable unless and until MJ signed the agreement. She said she added a line for MJ's signature at the end of the document. Jorrie said this provision was included in the 1st draft. She said Murray had no comment regarding the first 2 provisions of the contract. Jorrie said Recital A, Paragraph 9 and wording above MJ's signature explained Dr. Murray was hired on behalf of Michael Jackson. (ABC7)

Jorrie explained the Termination provision that allowed AEG to terminate the contract with Dr. Murray. Termination: 1- in event there was a default of the agreement by the doctor 2- in the event series of concerts postponed or canceled. Termination: 3- if artist decided he no longer wanted or needed Murray 4- failed to maintain all licenses and approval to practice medicine. Termination: 5- failed to submit written evidence that he was legally authorized to practice medicine in US.Termination: 6- no later than July 3rd, evidence he was allowed to practice medicine in the UK. (ABC7)

Jorrie said she believes she sent the email to Wooley/Dr. Murray on June 15. She testified she never received any documents from Dr. Murray. Jorrie said Murray called her on 6/18/09: 1- Murray and MJ relationship 2- Some of changes he wanted made 3- Couple of questions Jorrie had. The attorney said the conversation about Dr. Murray and MJ relationship did not result in any change to the contract. Jorrie: The changes he mentioned to me during the call, he wanted his company GCA Holdings to be the contracting party instead of him. Dr. Murray also wanted to change provision where Jorrie referred to nurse. Jorrie explained Dr. Murray said he wanted flexibility to have a "qualified assistant medical person," who could be another physician. Another change requested was to provision 7.7 regarding termination, Jorrie said. (ABC7)

Jorrie: He also let me know he was license to practice medicine in 4 states and gave me the states.Jorrie: Dr. Murray told me he preferred to have GCA Holding as contracting party and he as employee of the company. Jorrie said that it was okay but she wanted Dr. Murray on the contract also. Jorrie: I asked why you needed another physician as opposed to a nurse. He told me in case he was unavailable or tired. Jorrie said Dr. Murray wanted to have the flexibility to have someone on stand by, payable for by AEG Live. Jorrie said ultimately she made the changes. Dr. Murray was the one who would identify who this medical person would be, but never did.The attorney said Dr. Murray told her he was licensed to practice medicine in California, Nevada, Texas and Hawaii. The first payment was to be no later than 5 days after contracted was fully signed by everybody, including Michael Jackson. (ABC7)

Dr. Murray wanted to modify section 7.7, termination either because MJ decided he didn't want him anymore or the concert canceled. As a result, he would not want to be in a position he would have to refund any part of his payment. Payment was due to him on the 15th of the month to cover from 1st-30th. If he were terminated on the 20th, he wanted to keep full payment. Jorrie: My response: Dr. Murray, $150,000/month is a lot of money! Jorrie said Dr. Murray told her he had 4 medical practices making a million dollar a month, and it was not fair to have to return money. Jorrie: Murray said under no circumstances he was leaving his practice if when terminated he couldn't keep the whole 150,000 received. Jorrie explained that provision 7.7 detailed what happened if there was a termination. Dr. Murray asked her to limit that provision. Jorrie: He had asked to be able to retain the full payment for the month he received. "He thought it would be fair and appropriate due to him leaving his established medical practice," Jorrie explained. (ABC7)

Jorrie said she asked Murray about the CPR machine. The doctor provided a list of equipment he needed to Wooley, who in turn sent to Jorrie. Jorrie: I asked Dr. Murray, why do you need a CPR machine? He said he needed one in London, MJ puts on a strenuous performance. Jorrie asked if O2 arena didn't have one. He said he didn't want to take risks, wanted one at hand. He also told her it's customary. "Giving Michael's age, giving his age, and that he puts on a strenuous performance, he just didn't want to take a chance," Jorrie said. Jorrie recalled there was other equipments on the list, normally for dehydration purposes, like saline and catheter. Contract said "producer to provide medical equipment portable CPR, saline, catheter, needles, gurney and other mutually approved equipment." Jorrie: Our conversation concerned London, he said he needed one (CPR machine) in London. (ABC7) The attorney told jurors that she spoke to Murray about an agreement she drafted that would have paid him $150,000 a month to accompany Jackson to London for 50 concerts. She said she questioned the doctor about a request in the contract for CPR machines, but she was satisfied with his response that the singer's shows were strenuous and he needed lifesaving equipment nearby if there was an emergency. (AP)

Jorrie said she took the information she got from Dr. Murray, went online and checked it out. The attorney said she went to the Nevada Secretary of State to check if GCA Holdings, LLC was indeed a valid company. Jorrie said she checked the medical boards Dr. Murray told her he was licenses and googled the doctor. Jorrie testified GCA was a proper company and Dr. Murray was the manager of it. She added the address on the contract and Dr. Murray's title. Jorrie said it was very easy to check the medical licenses. She went on the Medical Board websites and checked his licenses in all. "There was no disciplinary action against Dr. Murray," Jorrie said. She checked in California, Nevada, Texas and Hawaii. Jorrie testified she did the medical license check on June 18, 2009. (ABC7) Jorrie testified Tuesday that she reviewed records that showed Murray's Nevada clinic had a valid license, the physician was licensed to practice medicine in four states and she searched his name on Google. (AP)

She said she sent the draft to Dr. Murray, but the email bounced back. She then sent email to Wooley asking him to forward the contract to Murray. Jorrie said she also attached a comparison doc with the redlines marking the changes she made for easier understanding.(ABC7)

Jorrie explained it's her practice to save doc as "final pdf version." She said it is a personal indicator that the final version was sent. The attorney told the jury once the contract is fully executed, she saves it "fully executed."(ABC7)

Jorrie said she was asked by the general counsel to see if she could ask Dr. Murray for the medical history for insurance purpose. "Dr. Murray said he had told me he had been MJ's physician for a period of time," Jorrie expressed. 
Bina: Did you send this email because you believe Dr. Murray was MJ's physician? Jorrie: Yes.
Jorrie asked that if Dr. Murray was not the right doctor to provide records, if he could please direct her to the appropriate physician.
The attorney said Dr. Murray told her he would help. (ABC7)

Jorrie explained she had 3 drafts of Dr. Murray's agreement. GCA would actually provide the services of Dr. Murray, Jorrie said. The $150k would be paid not to Dr. Murray, but to GCA Holdings. Jorrie changed Provision 3.4 at the request of Dr. Murray, from nurse to qualified medical person (assistant) Change in 7.7: If there's termination, GCA shall have no obligation to refund any portion of any installation due and payable before. Jorrie said Dr. Murray called her again on June 23, 2009 asking for some more changes. (ABC7)

Jorrie spoke with Randy Phillips on June 19, 2009 on an unrelated matter and Dr. Murray's subject came up. It was phone conversation, she relayed Dr. Murray was licensed to practice in 4 states. "I checked out, or confirmed the info," she said. Jorrie testified she told Phillips Murray appeared to be very successful in his practice, may have told him about a million dollar a month. "I definitely told him he's very successful in his practice," Jorrie said. "I confirmed he was licensed to practice in 4 states." (ABC7) Kathy Jorrie, an independent attorney who has handled nearly 300 matters for AEG Live LLC, said she told the company's CEO that the physician was properly licensed during a conversation six days before Jackson died in June 2009. Jorrie said she also told the executive that former cardiologist Conrad Murray told her his medical clinics were earning more than $1 million a month. (AP)

Jorrie: AEG Live has been a consistent client of mine since 2000. Approximately 300 matters have been opened in 12 years.(ABC7)

First change was the effective date, from June to May 1, 2009, Jorrie said. Jorrie: He said he was promised that when the agreement was signed he would've been paid retroactively to May 1, 2009. (When Bina asked about payment provision, Panish objected to prevent Jorrie from expressing her opinion about the contract. Judge: I'm going to strike the entire testimony if she keeps interpreting the contract.) Jorrie: He wanted to extend, by about 5 months, his engagement. Jorrie asked if MJ would be paying him even though the tour would be on break. He said yes. End date changed from Sept, 2009 to March, 2010. 1- Scope of Services -- it had language saying perform services reasonably requested by "Producer." Jorrie: Murray said we need to change that to Artist, it's the artist who's my patient. I said absolutely right, the artist if your patient. Jorrie said provision 4.1 also says "Perform the Services reasonably requested by Producer.".Jorrie: I didn't change it to Artist because Murray didn't draw my attention to that and I didn't remember that language was in there twice. Jorrie said if she had seen it, she would've changed it to Artist, not Producer. (ABC7) Jorrie also told jurors she mistakenly left language in a contract that Murray signed that called for him to perform services "reasonably requested" by AEG Live. (AP)

Bina asked if on June 23 Jorrie discussed with Dr. Murray to get MJ's medical history. She said yes. Jorrie revised the agreement, emailed to Dr. Murray on 6/23/09: saying 'I have attached a clean pdf version, which is ready for execution.'Jorrie said she sent 3rd version of the draft to AEG Live. She didn't send it to MJ or his reps, was not in communication with MJ about it. Jorrie explained it was never her understanding that MJ's medical records would have been sent to her but to insurance underwriter. Jorrie: Late in the evening on June 24, I received a fax with a document signed by Dr. Murray. I forwarded a copy to it to Mr. Trell. Jorrie said neither Michael Jackson nor AEG signed the contract. (ABC7)

The attorney said she has negotiated with third party vendors before without showing the drafts to the artist. Jorrie: The reasons is that attorneys for the artist would have the document exactly like they wanted. Judge: How do you know if you don't talk t the artist that the agreement is what the artist's want? "Sometimes we enter in agreements the artists never see," Jorrie told the court. Jorrie said this is the first third-party vendor agreement she was involved with a medical doctor. (ABC7)

Jorrie sent Dr. Murray the last version on June 23rd, Dr. Murray faxed it back on June 24th.

Jorrie said she didn't talk to Murray about specific treatment he was giving to MJ. "He didn't tell me anything he was doing to treat MJ." Bina: Did Dr. Murray ever ask you for payment? Jorrie: Never. (ABC7)

Jorrie explained paragraph 4 of the contract, which detailed the responsibilities of GCA/Dr. Murray. Jorrie testified she discussed with Dr. Murray the requirement for UK medical license either on June 18 or 23. Jorrie said July 3, 2009 was the date Dr. Murray was planning to go to London withMichael Jackson. Bina showed the last page of Dr. Murray's agreement. Under the signatures, it is dated June 24, 2009. Jorrie said she put that date since she thought the parties would've signed the contract that day. "I do not know if Michael Jackson would've signed the agreement," Jorrie testified. Regarding the reference that AEG hired doctor at request of MJ, Jorrie said she never did this on any other agreement on behalf of AEG. "Because we're talking about Michael Jackson's physician," Jorrie explained. (ABC7)

Recap: June 15th -- first draft written, sent to Dr. Murray June 18th -- negotiation with Dr. Murray began, over the phone. June 19th -- checked medical license, business standing June 19th -- spoke with Phillips about it. June 23rd - Murray called asking additional changes June 23rd - third draft sent to Murray June 24th - Murray signed it and faxed it back (ABC7)

Jorrie emailed Dr. Murray one more time after that related to the insurance for the tour. (ABC7)

She maintained throughout her testimony that Murray was Jackson's personal doctor and the language about him performing services for the promoter shouldn't have been in the agreement. Jackson's approval was required on the contract, but he died before signing it(AP)

Jorrie said she first spoke to Murray on the phone on June 18, after he reviewed an initial draft of the contract. He asked that his company's name be added to the contract and that a provision allowing him to hire a nurse as an assistant be changed to a "qualified assistant medical person." "I had asked him, 'Why would you need another physician as opposed to a nurse?'" Jorrie testified. "And he told me that in an event that he was not available or he was tired, he wanted the flexibility" to have a back-up. Murray asked that he be responsible for hiring the additional doctor, but did not provide a name, Jorrie said. The attorney testified that she ultimately agreed to the change.Murray also requested that should his contract be terminated early, he would not be required to refund his $150,000-per-month payment. Jorrie said Murray told her that his medical practices brought in "a million dollars a month" and because he was leaving those practices for the tour, "it'd be fair and appropriate" that he keep the full payment he had received. Jorrie said she also spoke to Murray about his request for medical equipment. Woolley had provided her a list of items the doctor might ask for, she testified, and she wanted to know why a "CPR machine" was on the list. "He said he needed it in London during the performance, Michael Jackson puts on a strenuous performance and that he did not want to take a chance," she said. "That should anything go wrong, should there be an emergency, etc., he wanted to have that."
When she asked if having a machine available at the O2 Arena would suffice, she said Murray said no. "He said they would" have the machine, she said, "but that he didn't want to take a chance." After speaking to the doctor, Jorrie said she searched online to confirm some of his background. She verified his company was based in Nevada and that he had medical licenses in four states. She also "Googled him," she said. "I Google everybody." Jorrie said she attempted to email the revised contract to Murray, but the email bounced back. She then sent it to Woolley, who forwarded it to the doctor. Murray called June 23 with additional changes that involved when his payments would begin and extending the time of his services from September 2009 to March 2010. Murray told her Jackson had agreed to pay his monthly salary for that extended time frame, she said. Jorrie said she sent Murray another draft based on the changes. The next day, she testified, she received a copy of the agreement via fax that had been signed by Murray. The attorney testified that she never directly communicated with Jackson or sent the singer or his representatives any versions of the contract, though there was a space set aside for the pop star's signature. The empty line on the contract shown to jurors Tuesday was dated June 24, which is when Jorie said she expected the parties involved to sign the final agreement. Jackson died the next day.(LATimes)

Jackson cross

In cross examination, Panish asked if Jorrie is an independent witness. Jorrie: I don't understand the question, Mr. Panish. Panish: Are you being paid for the work you've done in this case? Jorrie: I'm not being paid as I sit here today. (ABC7)

Panish asked if her company has received millions and millions of dollar from AEG. She said since 2000, yes. Panish inquired if Jorrie is friends with Randy Phillips and Paul Gongaware. "I'd like to think all my clients are my friends, Mr. Panish," Jorrie explained. "They are business friends." "I'm aware that Mr. Gongaware was sued one time, but I want to be absolutely certain," Jorrie said.Panish: Professionals keep itemization of the work they do, don't they? Jorrie said she keeps tabs of the work she does. Panish asked if Jorrie hires expert witnesses. She said yes. He inquired if professionals keep itemization. She said yes. Panish: Have you ever paid an expert $700,000? Jorrie: I have not. (ABC7)

Panish asked if Jorrie brought the contract she used as basis for drafting Dr. Murray's contract.Jorrie said she has it in her office. Panish asked to see it, she said she can provide it, redacting the name of the third party. (ABC7)

Jorrie charges AEG $595 per hour. She said she's not billing AEG for the testimony today. Panish: How much have you billed AEG related to the "This Is It" project? Jolie: Work started in October 2008. Jorrie asked if it included litigation. Panish said yes. Jorrie: Of all matters related to This Is It? Panish: Yes. More than 20 million? J: Of course not P: 10 million? J: No P: 5 million? J: No. Jorrie said she can have her accounting department put together a spreadsheet with all she has billed AEG. (ABC7)

Panish said Paul Gongaware and John Meglen were sued for stealing the name Concerts West.Bina objected, saying the lawsuit was dismissed and Panish was trying to tarnish Gongaware and Meglen's reputation. Judge: Was the case dismissed? Panish: Yes Judge: Then it's not stealing. Please refrain from using that word. Describe it accurately. (ABC7)

Jorrie: For all of those matters, for 12 years, it would be millions of dollars. Panish: How many multi-million dollars has your company been paid? Jorrie: It could be over $5 million for that period of time (since 2000). (ABC7)

Panish: You knew MJ was going on a 3-5 years worldwide tour, correct? Jorrie: That's not correct. Putnam was present when Jorrie spoke with LAPD after Michael Jackson's death. Panish: Did you go meet with LAPD and discussed MJ going to go on a worldwide tour? Jorrie: No, they came to my office, asked questions. Panish: Did you tell LAPD the that MJ was going on a world tour? Jorrie: No. Panish: Did you say European tour was just the beginning and MJ would be making a worldwide tout? Jorrie: Not that I recall. "That's not my statement and I don't recall that," Jorrie testified. Panish: Did you tell LAPD that MJ was going on a worldwide tour after European leg was over? Jorrie: No. Panish: Did Mr. Putnam tell LAPD MJ was going to do a world tour for 3 to 5 years? Jorrie: No. Panish: You denied making that statement? Jorrie: Yes. Not like that. Panish asked if Detective Schmidt is called to testified and said Jorrie told him about MJ going on a worldwide tour, if that's a lie. "He would've been mistaken, Mr. Panish," Jorrie said. "Because he misunderstood what I was saying about the tour.". (ABC7)

Jorrie said she did not bill for the time she testified at deposition. (ABC7)

Panish: Did you tell the police department Dr. Murray took in $12 million a year? "I said that he told me that his 4 medical practices brought in more than a million dollars a year," Jorrie said.Panish: Did you say one million dollar a month? Jorrie: Dr. Murray had 4 practices, I told one million dollars a year and they added up to 12 million. "I spoke with him about the tour agreement and how it would work," Jorrie testified. (ABC7)