On Saturday, 4 October 2014 00:33:17 UTC+10, Peetee Aitchei wrote:
> Darwin's known plans to relocate to Salem, OR - GROSS v ECKANKAR
>
PART TWO
Darwin's known plans to relocate to Salem, OR - GROSS v ECKANKAR
US District Court - District of Oregon - Civil No. 84-228
QUOTING Extracts from:
1984-09-19 Telephone Deposition of ALAN HAMMOND NICHOLS - GROSS v ECKANKAR
Appearances of Counsel:
David W. Axelrod for Plaintiff Sri Darwin Gross
Michael Esler for Defendant ECKANKAR
Dan Rapaport for Alan Nichols
Gary Hardiman (in San Francisco) for NICHOLS PROFESSIONAL LAW CORPORATION
(previously Corporate Lawyers for ECKANKAR terminated August 1983)
[ My comments are bracketed thus - CAPS for emphasis ]
[...]
[pg 76]
(Brief recess.)
Q. (By Mr. Axelrod) Mr. Nichols, do you also have
Deposition Exhibit 7?
A. Yes, I have Exhibit 7 which is marked production
number 11066.
Q. Mr. Nichols, Deposition Exhibit 7 has previously
been identified as all or part of the materials
that were put together for the board of trustees
in preparation for the August 7, 1983 meeting,
and I'm handing it to you because it includes
documents which designate themselves as exhibits
of the meeting of the board of trustees in ST.
LOUIS at the Creative Arts Festival on June 12
and June 13, [1983] as well as what purport to be
minutes of the telephone conference call of July
eight [1983].
The other two documents are different versions
of the same meetings, and I'd like you to review those
documents. The material differences are at the end of
the minutes of the June 12, June 13 meeting which are
contained in Exhibit 7 at page six and page seven,
there are references to Dharma Aircraft, and a transfer
of certain assets to Dharma Aircraft, and on the
other set of minutes for the same meeting, which
[pg 77]
commence with production numbers 11873, at pages
five and six of those minutes you will see that
there are no references, and with respect to the
minutes of the meeting or telephone conference
call of July 8 [1983] which are contained in Exhibit 7,
the fourth full paragraph and parts thereafter
are different as between the two sets of minutes,
that contained in Exhibit 7 and that which commences
with production numbers 11870, so I'd like you to
take a minute and review those documents.
Mr Rapaport: It would probably help if you'd give us
a question and he could focus on it for his review.
Q. (By Mr. Axelrod) The initial question I'm going
to want to pose is when HE FIRST had discussions
with Darwin Gross or with MEMBER OF THE BOARD
of trustees DURING MEETINGS in which Darwin GROSS
participated about Darwin Gross' RELOCATION OR MOVE
TO OREGON, and it may have been before or at the
time of or at a different time than these various
minutes, BUT I want to look at those FIRST to
REFRESH his recollection and be familiar with those
documents.
Does that give you enough guide to start the process?
[pg 78]
A. Yes, if you limit it, tell me about when you're
talking about.
Q. In 1983.
ESLER: Well Mr Axelrod, I've got a problem now with
the form of questioning that you're engaging in.
MR. AXELROD: I've not asked a question yet.
MR. ESLER: I know, but you're trying to refresh this
witness's recollection. He hasn't shown any
impairment of recollection.
MR. AXELROD: No, I've just asked him to review those
documents.
MR. ESLER: But if you're trying to refresh his
recollection as to when the subject of MOVING TO
OREGON was first discussed, you probably SHOULD TAKE
HIM BACK TO THE PERIOD OF 1981 or 1982 when the movement
to SALEM was BEGINNING TO BE DISCUSSED, IF NOT EARLIER.
MR. Rapaport: Well, Mr Nichols is reviewing the
documents and we'll wait for a specific question, Mr.
Axelrod, and we'll do our best to respond. Then perhaps
you (Mr ESLER) and Mr. Axelrod can square away the
situation.
[pg 79]
Q.(By Hr. Axelrod) Mr. Nichols, during the early
part of 1983, or late 1982, to your knowledge
did Darwin Gross raise with ANY MEMBERS OF THE
BOARD of trustees the idea of HIS RELOCATING to
Oregon to PERFORM WORK ON BEHALF OF ECKANKAR?
A. Yes.
Q. Was this discussion first raised apart from and
without regard to the relocation of any material
part of the operations from Menlo Park?
A. Would you repeat that question?
Q. Okay. It's my understanding that from time to
time from THE LATE SEVENTIES on, Eckankar considered
relocating the Menlo Park facilities to a number of
places around the country, including Oregon.
A. That's correct.
Q. And that at one point in 1982 a specific parcel
of property was reviewed adjacent to or in the
outskirts of Salem, OREGON, which was considered
as a POSSIBLE SITE FOR THE ENTIRE OPERATION?
[ NOTE: That Salishan St. property was immediately
adjacent to the Salem Airport, Oregon. But was it an
unencumbered Real Estate property that was DONATED
to ECKANKAR by a Member of Eckankar, Deceased Estate
Will, and it included the pre-existing Lear Jet plus
various equipment and assets associated with Dharma
Aircraft Ltd. an Oregon based Corporation - or was it
specifically purchased by Eckankar for cash? What do
you believe the correct answer is? But why? ]
A. Yes.
Q. I'm not asking you questions about the relocation
of all or part of the entire operations, but I'm asking
you whether or not ...
[pg 80]
... there was raised the idea by Darwin Gross of his
relocating to Oregon to PERFORM WORK WITH ONE OR TWO
STAFF PERSONS.
A. Is that your question?
Q. That is my question.
A. Yes.
Q. Can yo tell me when t at was first raised, to your
knowledge?
A. First raised, I wouldn't really know when it was
FIRST RAISED, because it was discussed a LONG TIME AGO,
Darwin talked about going to Oregon.
Q. Was THIS a discussion in 1983?
A. You're asking me when it was first raised?
Q. Right.
A. I'm sure he -- 1983. I'm sure he discussed it BEFORE
1983.
Q. Okay. Do you know whether it was considered by him in
the early part of 1983?
A. Early part? I believe it was, yes, I'm sure it was.
Q. Did you have any discussions with him concerning that
subject in which OTHER REPRESENTATIVES OF ECKANKAR, whether
officers or members of the board of trustees, participated?
A. In 1983?
[pg 81]
Q. Yes.
A. Before the meeting of June of 1983?
Q. Yes.
A. I can't pinpoint the time. I'm sure if I reviewed
the minutes of the board meeting prior to June of 1983
that there would be some references to it, because it was
very much on his mind, and he had a -- you know, HE DID
DISCUSS THINGS and particularly the OREGON MATTER with the
BOARD AT GREAT LENGTH both in 1983 and 1982, talked about
HIS OWN FUTURE also in terms of continuing his -- what he
called MISSIONARY ACTIVITIES OF Eckankar.
Q. Can you tell me the FIRST TIME that you recall that
subject having been raised with the BOARD OF TRUSTEES at a
MEETING, whether it was in 1982 or 1983?
A. Not without reviewing the minutes, I couldn't recall the
time that would be.
Q. Do you recall the specific discussion?
A. Well, I think there was one meeting during that period of
time when we were in the -- the board was meeting in HAWAII,
and at that time he talked about the -- his future so far as
what HE WANTED TO DO FOR ECKANKAR and the idea of ...
[pg 82]
... OPERATING IN OREGON. That could also be somewhat related
to that Salishan building, in terms of time.
Q. Do you recall what was discussed by him in terms of the
activities be wanted to do in Oregon?
A. Well, I don't know that it was all the activities be was
going to do in Oregon, but the idea of that being a place for
him to operate in which he was talking about doing continuing
his publication, doing more work with his music, making trips
around the world. and around the country with his music, and
talks and that kind of thing, having THAT [place] act as kind
of missionary headquarters, if you will.
Q. Was there discussion in that context about HIS WORKING with
the PUBLISHED OR UNPUBLISHED WRITINGS OF PAUL TWITCHELL?
A. Yes. The -- he felt that there were still A LOT OF
unpublished WORKS of Paul Twitchell that he thought SHOULD BE
REVIEWED and PUBLISHED or at least consideration for
publishing given.
Q, At the time that this was --
A. Did you --
Q. Go ahead.
A. I mean he had OTHER Publishing IDEAS TOO.
[pg 83]
Q. Were those discussed with the board at this meeting in
Hawaii?
A. A PLANNING MEETING, YES. HIS OVERALL FUTURE WAS DISCUSSED
including that kind of thing AND MORE, TOO.
Q. Well, can you tell me what else was discussed at that
meeting concerning HIS FUTURE?
MR. ESLER: Could we have a date on the meeting?
MR. AXELROD: I think we had it as sometime in '82.
MR. ESLER: And have we got any limitation on how broad you want
that question to be? Are we talking about general discussions
or are we talking about discussions that would have called upon
Mr. Nichols to perform duties for Eckankar as its legal counsel?
MR. AXELROD: I believe my question was as to the general
discussion which took place concerning future or long-range
plans of the type of activities that Darwin Gross would perform
for Eckankar.
THE WITNESS: I think that is in essence -- those are fairly
broad brush of the things. He was also interested and talked
about the ...
[pg 84]
.. VARIOUS ATTACKS ON Eckankar and HOW TO INSULATE Eckankar
from that. He discussed the --
[NOTE: The SCP expose on Eckankar in 1979/1980; plus David Lane
had published his first version of his TMOASM paperback in
April 1983. Also note that Darwin was responsible for the recent
publishing of LTG Vol 3 which was delivered to Menlo Park HO in
early June 1983, and that this specific book had generated much
conflict in Head Office, which included Patti Simpson-Rivinus
and which Klemp discussed at the Oct 1983 HI meeting.
16,000 copies of LTG3 were pulped under orders of Klemp in Sept.
1983. These matters are directly related to the comment above
"various attacks on Eckankar" plus "HOW to insulate Eckankar"
from further external criticisms, exposés, new revelations, and
attacks. ]
MR. ESLER: Wait a minute. Now, before you go on beyond that,
that clearly would be ATTORNEY-CLIENT PRIVILEGE material.
If he's talking to you about the ways of insulating Eckankar
from attacks on the outside, that would clearly be ASKING FOR
LEGAL ADVICE, so I would instruct you not to answer the question,
so, go ahead, Mr. Nichols, IF YOU are able to answer the
question without discussing any thing discussed by Mr. Nichols
about insulating Eckankar from attacks. Anything else?
THE WITNESS; Well, in terms of what his future -- I believe
that the subject matter here is talking about what HIS FUTURE
was to be so far as operations from Oregon, and I think just
get more details of the same thing that I've mentioned in
terms of his activities in the very -- I'm using the word
missionary activity.
Q. (By Hr. Axelrod) Now, I take it this all took place at the
meeting in Hawaii?
A. There was a planning meeting in Hawaii during the period of
time you're talking about and that was PARTICULARLY DISCUSSED
AT THAT MEETING. [ In 1982 !!! ]
[pg 85]
[Nichols continues...]
Again, it was -- the subject of -- you asked me only about --
not about general moves of Eckankar but JUST THE ONES OF
DARWIN --
Q. Correct.
A. -- to carry out HIS ACTIVITIES, but you really can't
separate the fact that there was discussions about a -- a
lot of discussions over quite A LONG PERIOD OF TIME ABOUT
OREGON both as to the overall operation of Eckankar and HIS
OWN PARTICIPATION.
Q. Okay. Were the planning sessions that you refer to
sessions in which ALL OF THE MEMBERS of the board of
trustees participate?
A. All that were there. I would have to review the minutes
to know which ones, if there were any absent.
Q. Do you recall whether any --
A. If they are all there, I may be mistaken.
Q. Do you recall whether any employees of Eckankar who were
not members of the board of trustees participated in this
planning session?
A. So far as the board planning sessions?
Q. Yes.
A. There may have been -- I would have to say I don't
remember. There was another planning ....
[pg 86]
... session again which the time I can't place without
refreshing my recollection so far as minutes would be
concerned, a planning session in Menlo Park, and at that
time various alternatives were talked about and there were
employees at that meeting.
Q. Can you give us any kind of a ballpark time frame for that
meeting?
A. No. I wouldn't have -- I'd be just guessing on that.
Q. Would it be before or after Hawaii?
A. We established the date of Hawaii as what time?
Q. I don't think we've established it. My best recollection
is that it's in OCTOBER OF 1982, but that could be in error.
A. Well, I think that would be in error. October of '82,
although I may be wrong. I would say Menlo Park meeting
probably would be before that time, planning meeting.
Q. Were these planning sessions efforts to take a long-range
look at where Eckankar was going in the period over a number
of years?
A. Yes, yes.
Q. At the panning session in Hawaii was there any discussion
with respect to Darwin Gross'...
[pg 87]
... proposed relocation to Oregon about the size of that
operation, either its budget, the number of people, if any
other than Darwin that might be involved, or the like?
A. THERE HAVE BEEN SUCH DISCUSSIONS, but whether there was
actual budget at the HAWAII meeting, I don't remember.
Again, in reviewing the minutes, I might be able to respond
better.
Q. Do you recall any specific discussion about the size of
the operation? In other words, was it Darwin, Darwin and 50
people or Darwin and one person or --
A. Only that the size -- where we're talking about just
Darwin's operation was intended to be much smaller than the
size of Eckankar in Menlo Park, OF COURSE.
Q. Was there any discussion about WHAT ROLE IF ANY HE would
continue to have in the MANAGEMENT OF MENLO PARK operation
IF HE RELOCATED TO OREGON at this time in Hawaii?
A. I think that discussion was contemplating HIS NOT MANAGING
MENLO PARK and either being TITULAR PRESIDENT in terms of being
available or NOT BEING AN OFFICER AT ALL and only being
available ON CALL in a kind of CONSULTING CAPACITY or ...
[pg 88]
... being -- that would be basically it. I think that was
based on the idea of HIS NOT BEING -- at least having the
FULL TIME DAY-TO-DAY MANAGEMENT OF ECKANKAR.
Q. You indicated that it was possibly tied in in point of
time to the SALISHAN PROPERTY.
A. Yes.
Q. Can you tell me what connection there is?
A. Well, only that that's where he either -- HE WAS GOING
TO LIVE or THEY WERE BUILDING A PLACE FOR HIM TO LIVE THERE.
He would operate out of there.
Q. Were you a member of the board of trustees when the
Salishan property in its undeveloped state was purchased?
A. I don't remember.
MR. RAPAPORT: Were you a member of the board at the time of
the purchase of Salishan?
THE WITNESS: I don't remember. I believe I was, but I'm not
sure.
Q. (By Mr. Axelrod) Do you recall whether you were a member
of the board when plans were developed for the construction
of a residence?
A. Yes.
Q. Can you tell me whether there were meetings of ...
[pg 89]
... the board of trustees at which the proposed or actual
construction of that house was reviewed and discussed by the
members of the board?
A. Yes.
Q. Can you tell me what the EARLIEST SUCH DISCUSSION WAS?
A. Prior to construction, I can't -- I'd have to refresh my
recollection as to the timing. I don't remember when that
construction started or when the property was purchased.
Q. Do you recall what the discussion was?
A. Excuse me. What?
Q. Do you recall what the discussion was?
A. About Salishan?
Q. Yes.
A. As I've indicated, as A PLACE WHERE DARWIN WOULD OPERATE
FROM, and there was discussion and talk about -- plans were
shown and discussed and so forth.
Q. Was there a review by the BOARD of trustees of the
PROPOSED COST of construction before that construction
commenced?
A. YES, there was a discussion of the cost. Whether there was
a -- I'd have to look at the record as to whether in any of
the reports to ....
[pg 90]
... the board, there WAS, you know, a description of the
DETAILED ESTIMATE OF COST. I know that there was estimates of
the cost.
Q. Were those the responsibility or were those
responsibilities assumed by any particular member of the
board?
A. Well, sure, because Bob Engel was the architect on the job.
Q. Would he provide written reports to the board?
A. What was the question?
Q. Do you recall whether he provided WRITTEN REPORTS to the
board concerning the proposed construction or the plans as he
developed them?
A. I can remember SEEING, you know, REPORTS AND PLANS.
As to whether they were formally a part of the minutes and the
reports given to the boards, I don't remember. I KNOW PARTS --
AT LEAST SOME ASPECTS OF IT WERE.
Q. Following the Hawaii meeting, do you recall any further
discussion AT BOARD of Trustees meetings concerning the
RELOCATION by Darwin Gross TO OREGON a small staff to perform
the work which you previously described?
A. You say after the [Hawaii] meeting?
Q. Yes.
[pg 91]
A. It seems to me that there was a lot of discussion by a
lot of people about the Oregon operations and WHAT Darwin was
planning to do in Oregon through ALL OF 1983, right up to the
June [BOARD] MEETING.
Q. Can you tell me what specific conversations you can recall
having participated in, whether you spoke or just observed,
prior to the June [1983] meeting at which a representative of
Eckankar was present in which that subject was discussed?
A. As to what Darwin's plans were, if there was a meeting
again I would have to review the minutes of the meeting
between -- that is after the Hawaii meeting [Oct 1982] and
before the June meeting [1983] and I think there MUST HAVE
BEEN discussion about the Oregon operation at that time.
MR. ESLER: I'm not sure I understand what you meant by
"that time".
THE WITNESS: If there was any board meetings between Hawaii
and June of '83.
MR. ESLER: There would have been a discussion.
MR. AXELROD: Mike, it's real difficult to hear you.
MR. ESLER: The record will reflect that .....
[pg 92]
... there was a board meeting in January 1983.
THE WITNESS. I would have to review those minutes to -- there
was -- again I believe it was sometime in that time that the
SALISHAN HOUSE WAS COMPLETED or at least that it was getting
close to completion, and there were discussions at that time
particularly with BOB ENGEL as to the completion and the --
there was I think some changes at the end and some revisions
of the job and so forth, all of which Bob Engel was
knowledgeable about, and talked to me about, and there may
have been others present, too.
MR. ESLER: Mr. Axelrod?
MR. AXELROD: Yes.
MR. RAPAPORT: Let the record reflect that you had provided us
with minutes of the January 29, 1983 meeting which I'm looking
at BUT THERE ARE MAIN PARAGRAPHS MISSING from these MINUTES
and therefore it's IMPOSSIBLE TO TELL WHAT WAS DISCUSSED and
WHAT WASN'T.
I see no reference in my review of those minutes to a
discussion of Oregon, but I've only taken a quick look, but I
think it establishes there WAS A January 29, 1983 meeting of
the ...
[pg 93]
... board. Sorry for the interruption.
Q. (By Mr. Axelrod) Mr. Nichols do you have a recollection of
the board meeting at the Creative Arts Festival?
MR. ESLER: You mean independent of his review of the minutes
that you've handed him?
MR. AXELROD: Yes.
MR. ESLER: Did you hear that, Mr. Axelrod?
MR. AXELROD: Yes.
ESLER: Okay. Well, I'm asking you to clarify the question
Q. (By Mr. Axelrod) Mr. Nichols, independent of your review of
the version of the minutes of the meeting of June 12 and June
13 [1983] which is contained in Exhibit 7 or the version which
commences with document number 11873, do you have a
recollection of the board meeting at the Creative Arts
Festival?
A. I have an independent recollection of the board meeting
in St. Louis, yes.
Q. Was there a discussion of Mr. Gross relocating to Oregon
with a small staff at that meeting?
A. Yes
Q. Were you present during that discussion?
[pg 94]
A. Yes.
Q. Do you know whether ALL OF THE MEMBERS OF THE BOARD OF
TRUSTEES WERE?
A. Yes.
[ NOTE: This clearly then includes BOTH Klemp and Skelskey
were present. ]
Q. Do you know whether Mr. Brent [BOB BRANT] was present?
A. Yes.
Q. Do you know whether Jan Davidson [Trustee] was present
at that time?
A. Yes.
Q. Can you tell us what was discussed?
A. As to what?
Q. By the members of the board of trustees concerning
Darwin's RELOCATION TO OREGON?
MR. ESLER; Before you answer that question, Mr. Nichols, I'm
again going to advise you that if your answer calls upon you
to DIVULGE INFORMATION which you obtained in connection with
rendering LEGAL ADVICE or answering LEGAL QUESTIONS or
establishing LEGAL procedure or ANYTHING OF THE LIKE for
Eckankar, we're going to INSTRUCT YOU NOT TO ANSWER.
I'm NOT asking you to make a JUDGEMENT that it would be
ATTORNEY-CLIENT PRIVILEGED MATERIAL.
All I'm saying is IF THAT'S GOING TO BE YOUR ANSWER,
DON'T GIVE IT.
[ end quote ]
PART THREE to follow