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HomeMy WebLinkAboutMinutes Executive session 060696N 8 0 U LL f a a a w r 2 a N s a V Q 0 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 1621 22 23 24 25 EXECUTIVE SESSION TOWN COUNCIL CITY OF PALM BEACH GARDENS June 6, 1995 7:05 - 7:50 p.m. PRESENT: JOSEPH RUSSO, Mayor BOBBIE HERAKOVICH LAUREN FURTADO LINDA MONROE DAVID CLARK ERIC JABLIN THOMAS BAIRD, ESQ. JANE PASTORE, Court Reporter LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 �, 21 22 5 23 24 U 0 25 E P R O C E E D I N G S MR. WATTERSON: We are here in the special litigation session under Section 286.011. This is a public meeting that happens to be taking place in a private setting. Everything that we say must be taken down by the court reporter. There are no off -the- record conversations that are allowed. And after we are done,with this, within a reasonable period of time of ending, the court reporter must produce the transcript and it is filed with the clerk. It stays confidential until the end of the case. Tonight's meeting is to discuss the three cases that are pending against Palm Beach Gardens by former employees Julia Byrd, Linda Erbacher and Linda Bullock. That case is currently pending on the third time, pending trial. We are currently on a docket waiting a call for the starting of trial. The docket began on May the 28th and it will run until July the 12th. We are still -- there is a case ahead of us that is being tried LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 N 0 0 0 U 0 w W V R 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 right now, and unless it settles we stand a very good chance of not being reached on this docket. If we are not reached on this docket, the earliest that cases are being set in this division currently is in November. If it goes over to a November setting, it will not be tried by the same judge. We will have a new judge in this division because of a proration; the existing judge, Honorable Kathryn Brunson, rotating down to the south county and in her place will come the Honorable Edward Fine, who would sit in this division and be our trial court judge. The last time this was set for trial on a docket was in December, and in December Plaintiff's counsel, who was Fred Gelston, announced to the court that he didn't think the case had been set for enough time to conclude it on that docket and said that we needed more time. And the court thus reset it -- the court struck it from the December docket. Then it wasn't reset. We have done everything; I came in and asked for the case to be set. And we are really trying hard to get this case over with LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 m 0 U w r m 0 N Q 0 4 1 and done. 2 Now, I think you have had other, plenty of 3 other descriptions of the case and I think you 4 know the facts of the cases and what their 5 claims are. But just briefly: 6 It's a 1983 action, civil rights being 7 claimed to have been violated by two of the 8 Plaintiffs; Linda Bullock, the third Plaintiff, 9 claims that she was denied her procedural due 10 process, her procedural rights when she lost her 11 job out at the golf course. 12 The basis of her claim -- this is the only 13 claim she has left. And I will only be talking 14 about the claims they have left. We have a 15 number of orders and summary judgments 16 eliminating the claims, most of the claims that :17 they have brought. 18 But her claim is that she was denied a 19 hearing before the Merit Review Board, and thus 20 she has been denied her procedural due process 21 rights. 22 It is our position, of course that she 23 never asked for it. Her letter that she filed 24 with the city said, "I will be appealing this 25 decision to the Merit Review Board," and she LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 N O 0 V LL M R a a a N 0 4 0 U 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 never filed any paper appealing it. So that's what's left in her case, and nothing more. You've got to remember, I want you to remember something about these cases: They proceed under some federal law which is far more lax and easygoing than what we are used to under state law. And sometimes in the federal system, when we use as a base our federal law -- you can use federal law while being in a state court -- sometimes the slimmest of things can be construed to be enough. Deferences go to people. So we will ask the court first thing to dismiss the case on the grounds that it's obviously not a request for a merit review hearing, and a judge should make that determination. But so far we have had some -- our existing judge, who is a woman of very good character, has had some reluctance to make some of the tougher rulings. And since there is a jury in this case, sometimes judges will let things go to the jury and hope the jury finds LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 6 1 the same decision that they would have made 2 themselves. It's easier to do it that way. 3 So we are hopeful. We know as a matter of 4 law that the judge should make a determination 5 that a letter saying "I will be filing" is not 6 the same as a letter saying, "I am appealing." 7 And I am not particularly concerned about 8 the Bullock case. 9 The Erbacher and Byrd cases are, thus far 10 both of them are -- they both claim that they 11 experienced negative employment actions towards 12 them: Erbacher losing her job in a 13 reorganization, Byrd being transferred /demoted 14 at a lower payout to the golf course, and that 15 both of those decisions were motivated by the 16 fact that, as they describe themselves, they are 17 political allies of the former city manager, 18 John Orr, and that the decisions were motivated 0 V W 19 by the fact that they had associated themselves a 20 with John Orr and this was just pure spite and a a w 21 punishment of them for exercising their first 0 0 w 22 amendment right to speak out during a campaign 23 and support issues and things like that. V 24 It will be our position that that's okay. 0 25 I have taken the position in court that who LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 0 0 U a w 0 W Q Q W 8 U Q 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 cares? That it's quite all right to eliminate the employment of, people in a manager's office after an election, because people who win it should have their people in confidential positions. I will be taking the position in court that under no circumstances could these people remain in those jobs because of the highly confidential nature of the CEO, city manager's position; That at the time, because as they describe themselves being so loyal to John Orr, how could this manager's office function when there were at the time issues affecting the city, such as what to do about the theft of monies from the city's bank accounts and transferred to Mr. Orr's personal account, what to do about pending litigation in which the city manager and the city were both being accused of both racial and sexual discriminatory practices in the police department, what to do about issues that had arisen -- whether or not true -- but that had arisen with respect to the use of pension funds. We had outside lawyers representing the LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 b 0 0 U LL Kl R Q Q a N W 0 d w U Q 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 W 8 city and representing the manager, who would be expected to communicate with the new manager and couldn't obviously communicate through a confidential secretary by the name of Julia Byrd who thought so highly of John Orr to have run ads in the paper, wrote letters to the editor, defending the plan. So it will be our position that the law is not stupid. It has some common sense to it and that when, for example, President Clinton was elected he didn't have to accept President Bush's secretary. The other actions are -- Julia Byrd also claims she was denied her procedural due process. That won't go anywhere. She never filed any request for a Merit Review Board hearing. Linda Erbacher will claim, also claims that -- let me take that back. We have knocked out Linda Erbacher's claim as to procedural due process. The best of their cases is a creation of some sympathy in the jury. Try as I might, with respect to the strength of our case and in analyzing their case, I think this case is going LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 a� b 0 V a a a N 0 s a 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 9 to go to the jury. I will not know the jury until I see them on the day that they come up from downstairs and I question them and I try to get the best possible jury that I get. I have had, as any lawyer that has tried cases, I have had juries from hell; the absolute profile presenting itself by the luck of the draw in the courtroom. Now that, the nature of the jury affects the value of my case, that affects what's going to happen. I will not know these factors, who is going to decide this case until I pick or unpick a jury. And I am concerned about the issue of jury sympathy. I will have two or three women. I hope it's only two; I hope we knock out the Bullock case early. I will have at least two ladies in the courtroom, one of whom I think may engender sympathy, and that's Julia Byrd. Loyalty is something that is usually an asset, and she will come across in this courtroom as having been a real trooper, right or wrong. She made a mistake, her loyalty should have been to the City of Palm Beach Gardens and not to John Orr, but when that juror goes into that jury deliberation room, I think LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 N s 0 V LL 2 a a N w 0 d ¢ J U 0 1 2 3 4 5 6 7 8 9 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 10 they may take into account that this is an asset, that this woman felt so strongly about her position. And they may feel some sympathy towards her and I'may not be able to get my -- the zero in the case. Now, if they feel sympathy for her or for Erbacher, because it could bleed over to Erbacher -- but I believe she is more along for a ride, a lark, some fun, see whether we get some money in the case -- I could end up with a nominal, relatively nominal jury verdict favorable to the plaintiff. What would happen in the event that I get nominal jury verdicts in favor of the Plaintiffs is that we will be liable for all the cost and attorneys' fees, because that's what a 1983 action does. A plaintiff's lawyer can gun for the case, can file a case, run the case and get a dollar and potentially get his attorneys' fees paid for. We have been unsuccessful in attempting to settle the case in the two mediations and in the number of conversations that have occurred with opposing counsel. Undoubtedly, the reason we LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 11 have been unable to settle the case, we have got an attorney's fee issue. One dollar plus awarded, we are going to have to pay attorney's fees. I have engaged Mr. -- we have had two mediations; offers were made. We have not -- it was very difficult to get offers back out of them. Their claims in total, which i think are ludicrous and it's not going to come anywhere close to this, in my considered opinion, based upon the experience that I have had, and I don't expect this case to go, to run away on me, but the Erbacher damages that an economist could puff up as best as he could are in the range of $350,000, the Byrd damages are under the best case scenario $250,000, and the Bullock damages are essentially nominal. I can't even give you a figure with respect to that. Our own figuring is in their best case scenarios based upon the economic reports that we have are somewhere in the twenty -five thousand range for Erbacher, $12,000 for Byrd. These are what goes up. I will be presenting a case in which I am saying to a LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 12 jury: We don't believe there is any liability whatsoever and thus no damages, but in the event that you think there is liability, here is the realistic damages. And we have worked real hard on presenting the realistic side of it. So juries often go to quotients, they split differences on any number of things. There is no court reporter in the jury deliberation room, and we are not going to be exactly sure how they arrived at some numbers here that they put into some blanks on a piece of paper. Now, going into trial it is very important to me as trial lawyer to be able to seize some moments that may come. I have settled cases. I was telling Tom that one case I had went for nine years, went to trial three times, never could get the case settled until we got into trial, and after making an opening defense case, after managing an opening statement, after having the plaintiff call the first witness and the first witness, one of the parties, going through a blistering cross examination, I was able to settle the case that night for a lot less than what I offered LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 m 0 U W Q a w ¢ 0 ¢ W 0 U s 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 13 six weeks earlier. I want to be in a posture to be able to settle this case if it becomes opportune, and I really don't want to be -- I have seen the horrible situation of a lawyer out in the hallway of a courthouse, even with a case going the other way, trying to raise up an insurance carrier adjuster to try to get authority, trying to describe what's happening in the courtroom. And so I want to have the ability to talk to somebody, and what I am proposing is that your city manager be given some authority so that I can report to her and ask for some of that authority to settle the case if I can. Let me say that I don't expect a settlement. I don't expect that I can settle the case, having discussed this case a number of times with opposing counsel. Mr. Russo? MR. RUSSO: Why are we taking the position in this case revolving around the Clinton letter and all that kind of stuff? Because the bottom line actually is, is when the administration did change, I myself as mayor at the time met with all the department heads and basically told them LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 U 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 14 that everybody has a place to work here except that, you know, we might have some budget constraints because we found out about the deficit in the golf course that we didn't know about, and that we are going to have some reorganization but we are going to try our best to make :sure that everybody has a position. Amongst -- of course, you know Mr. Orr was the city manager for many many years, and I would say probably 90 percent of the people that worked here were an ally of his, and we didn't go and dismiss 90 percent of the people that worked in the city. It was -- I mean, this was not a point of any political retaliation or whatever. It was just a point of we reorganized this department. The people that left, we didn't replace. We moved Julia Byrd out to the golf course. We did try to find her employment. And, unfortunately, at the time there wasn't any employment for Linda Erbacher to go to. MR. WATTERSON: You are preaching to the choir. I believe your case. Neither one of us are going to decide it. And things happen in a courtroom, and some strangers are going to LEY AND MARSHA COURT REPORTERS, INC. 1551 FORUM rLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 U 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 15 decide this case. And they don't always -- First of all,,even the best trial gets a result, and that doesn't mean that the result is going to stay when going on appeal. We are going to get a result here. We are going to get our form of justice. We are going to find some people who you don't know that are going to decide the credibility of this case and who should get what. we say all the time in that courtroom the judge will charge this jury to leave sympathy behind. But there is not a lawyer who tries a case who will tell you that that's exactly -- that that is what is done. I have engaged in some jury simulations. On a particular case we hire jurors and we put them in a room and we try our cases before them. Then we watch them on videotape and find out what's important to them. And it is hair - raising, you know, what they saw in it, what they reacted to. It's different from the lawyers, what was important to the lawyers. So I agree with you. MR. RUSSO: After the OJ trial -- MS. FURTADO: Hopefully they will remember LEY AND MARSHA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 0 U ¢ w ¢ 0 W ¢ w 0 U E 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 16 Oliver North. MR. RUSSO: I think I am a lot more educated today in trials and law. I never realized that they hire people to analyze the jury during the trial. I mean, those things I never realized. I understand that. But are we going to take, I mean, the position number one of what was said and a fall- back position saying that even if you don't believe what is being presented to you, that you go back to your position, or are you just dealing with the legal? I can't tell you your business, because you know your business... MR. WATTERSON: I am going to cover all the bases, and some of the things I do and don't do will depend on getting to know the jury. Julia Byrd didn't lose her job at all. Had anybody had a notion that we were going to punish her, fire her in retaliation for things that she had done, then she would have been fired. She wouldn't have been transferred out to the golf course. Now, they will say: Well, she was transferred out to the golf course because it LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 m 0 U a a a ti 0 w s 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 17 was fairly predictable that sooner or later the golf course would be not a public job and farmed out to a private operator and that that was known and this was just an easier, simpler way of accomplishing getting rid of her, but a little bit later, certainly getting her out of the city hall. MR. RUSSO: It's a shame, because I personally think that was a good move for her because she would have been away from the stress that she would have had day to day. To be honest, I thought that was perfect for her; she would be away from it and she could do the job. MR. WATTERSON: You are talking me into calling you as a witness here. Various people are going to make arguments to what these facts mean. That's the way it is here. You can take the same case, argued by the same lawyers, administered by the same judge and throw a different jury in each time and get a lot of different results. Now, this one is an excellent trial case. It could go this way or it could go that way. There is some cases -- the law firm did a case last year, it was the Gardens Country Club case LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 u 6 0 U a a N w 0 w 3 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 18 against Palm Beach County. In that case I felt secure about my position enough to tell the county commission not a dime, we never offered a penny in that case. And that was because I felt that I was going to win. I couldn't see the possibility of losing, our case was so strong. I am not saying that in this case. This is an excellent trial that could go one way or the other way. MS. FURTADO: It's not only -- because I have been through with this with my son -- it's not only just the jury, but sometimes a judge makes an incorrect ruling, direction -- is that what they call it? -- to a jury. And in our case, zippo, brain damage, zippo, because of what I am saying. So it can happen even on the judge's level, too. There is a lot of things that can go amuck that shouldn't go amuck in the best of cases, cut- and -dry cases. MR. WATTERSON: We don't have a legal system that can totally rule out the potential of error. It is administered by human beings. A lot of errors are corrected on appeal. We have a system in which the guilty can get off LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 0 U a a a W Q w a 0 U s Q 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 19 and the innocent can get convicted. We try as best we can for some form of justice. It is the procedure itself,'for a jury to come in and assess a case. It is our justice. We are going to live with the results. As I approached this trial, I realized I really don't have the ability to settle the case if it comes up. MR. CLARK: What kind of settlement authority are you looking for? MR. WATTERSON: I don't want any settlement authority. I want you to designate somebody here and give that somebody authority and make me have to argue and explain and get it. MR. CLARK: You don't want to know basically -- I am asking seriously. MR. WATTERSON: That part doesn't make any difference to me. MS. HERAKOVICH: Terry, does the fact that they currently have some costs that they are responsible for enter into the equation? MR. WATTERSON: Oh, yes, I am not going to -- let's take the Bullock case, for example. All three of those people owe us LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 U a y w 0 a 0 V S 0 20 1 attorneys' fees. We have gotten the order from 2 the court deciding the entitlement. The order 3 says they owe us attorneys' fees. We will have 4 a hearing on attorneys' fees. 5 Now, I haven't gone and taxed the 6 attorneys' fees, because it's not appropriate 7 for me to do that, because to prove up my 8 attorneys' fees I may have to show them 9 something called billings and I may even have to 10 take the witness stand myself. And that is 11 really not a smart move to have your lawyer take 12 the witness stand and have to explain what he 13 was directed to do. 14 MS. FURTADO: Before trial. 15 MR. WATTERSON: That is correct. 16 After this trial we will have the 17 attorneys' fees hearing. They owe us money and 18 we will get a taxation of some amount of money. 19 Their tactic would be to try -- our tactic 20 will be to get the full and fair amount of 21 attorneys' fees that were attributable to this 22 case by their absolute wrongful and wise guy, 23 uncalled for addition of Bobbie Herakovich as a 24 party to this case. 25 The only time you do that is if you mean LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 v w a y w 0 S a U G 0 21 1 to harass somebody, and they mean to try to take 2 the decision -maker of the city and put her into 3 a position, because of her own fear of the case, 4 that she comes to you and says let's settle it. 5 That was a wrong move and we took a strong 6 stand. The judge was having a hard time seeing 7 it, and we were fighting her desire to let it 8 all go to the jury. 9 Perhaps you know that she originally ruled 10 against us on the thing. We took an appeal of 11 it, and I stood in court saying, "You made the 12 wrong decision and you're going to be reversed. 13 Now, if you want to, we will ask the appellate 14 court to relinquish jurisdiction so you can 15 correct it." And to her credit she could 16 correct it. She did that, and granted a summary 17 judgment. It is actually in the city's favor, 18 although it takes Robbie out of it. But the 19 award will be in your favor. 20 Now, how much it is, that's my bargaining. 21 I will sit down and bargain this thing. I will 22 use my big number to say you, you, you are going 23 to pay big numbers. 24 I am not sure who is going to care about 25 it. I've got a sense that I am dealing with LEY AND MARSP N COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 22 people who, asset -wise, I am not sure they care about the judgment that I am going to get against them. If they lose this case and they come, that jury comes in with a zero, we are -- every dime in attorneys' fees we are going to be able to tax against them. These people have got the risk of walking away from this thing with hundreds of thousands of dollars taxed against them. What do they care? Let me worry. we have got people basically with homes -- take Julia Byrd. I don't really know her asset situation, but I presume she is like most people; she has got a home that she owns jointly with her husband that is not attachable, and plus it's homestead. Linda Erbacher, I don't think she was married last time I saw her, has a home that is her homestead, it is not attachable. I haven't even focussed on the Bullock one. I don't know about my collectibility factor on it. Let me worry. I am going to go to the trial being represented by a lawyer who thinks if I get a nominal situation, a dollar, then I LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 M 0 U a N w 0 V 0 23 1 can attach the attorneys' fees back against the 2 city. 3 Now, during the trial I might have people 4 get real scared that -- people don't like being 5 attacked, and they are, all three of these 6 people are going to have to take the stand and 7 be subjected to cross examination. And so long S as I do it right, I may get them where they may 9 think twice about going further with this case, 10 rather than having -- having it decided by the 11 jury, rather than risking a zero and the 12 feelings of embarrassment themselves. 13 Because for cne of the three Plaintiffs 14 this isn't money for her. This is Julia. This 15 has nothing to do with money. 16 MR. CLARK: Vindication. 17 MR. WATTERSON: In some way. 18 And this is consistent with conversations 19 that I have had with the other lawyer. Because 20 several months ago I tried real hard to derail 21 this case and tried to stop this from happening. 22 This opens up old wounds in this city. I don't 23 really like spending my time or sending a bill 24 on this thing. It has to do with emotions that 25 are involved in this case. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 M 0 U a 0 a w a V Q 0 24 1 But I have been unable to stop this. We 2 are going to go to trial whether it's now or 3 November. 4 MR. RUSSO: Julia comes in here almost 5 every Thursday night with a tape recorder, so I 6 do believe it is more than just money for her. 7 To be honest, I feel sorry for her. 8 MR. WATTERSON: She's the one I feel the 9 most sorry for myself. I would like to I say to 10 opposing counsel if this woman was my client, I 11 would be trying to keep her out of that 12 courtroom and going through what she will go 13 through. And opposing counsel agrees. 14 But clients call the shots. 15 MR. RUSSO: I really feel sorry for her. 16 MS. FURTADO: But as a juror, if I was 17 someone,that felt that loyal to someone, there 18 is no way I would want to work for a different 19 administration. 20 MR. WATTERSON: Of course. If loyalty is 21 so strong... 22 MR. JABLIN: Unless you were doing it for 23 other motives. 24 MS. FURTADO: Exactly. As a juror I would 25 say if this is loyalty based on loyalty and not i LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 m 0 U a a y a 0 0 25 1 money, why would someone want to work with the 2 oppposing administration? 3 MR. RUSSO: Lauren, there are many cases 4 when things happen to individuals and they can't 5 give it up and they can't move on. And certain 6 individuals can move on. 7 MS. FURTADO: I am just looking at it from 8 a juror -- 9 MR. RUSSO: A traumatic experience. This 10 was unfortunately a very traumatic experience, 11 that election and Mr. Orr leaving and all of 12 that went on. 13 This poor lady. Like I said, I feel very 14 sorry for her. Because she does come in here 15 every Thursday night and she's here with a 16 recorder, and to be honest, I think all of us 17 would say we would rather be home watching 18 Seinfeld and ER. It's just a shame that she -- 19 like I say, it is her I feel the worst for -- 20 ME. FURTADO: Not me. I would much rather 21 be here. 22 MR. RUSSO: -- only because of the whole 23 situation. 24 I think we should come up with a dollar 25 amount that we have the right to settle. I LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 mean, my number I guess is somewhere around ten to twenty thousand, if you are going to -- it's going to cost us that much anyway to litigate the thing. But I don't know what -- MR. WATTERSON: Ten to twenty, you might as well tell me nothing. MR. CLARK: Yes. that before. Because we have offered MR. JABLIN: Yes. MR. WATTERSON: I will tell you what I suggest, and when you hear it, please don't think that I am frivolous with people's money, because I am not. I have cases which I get authorized lots of money and never think that the other side's case is worth me offering the first dime. I've got some cases now where insurance companies are giving me settlement authority that I haven't put a dollar on the table yet. But I would think that somebody authorized the -- let me tell you my basis before I surprise you with the number. The basis is that, again, if some damages come out, then I am going to have attorneys' fees to deal with. The attorneys, fees will be, LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 N 0 0 U f a a N 0 w Ix w 3 U E Q 0 1 2 3 4 5 6 7 8 9 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 27 as I hope, less than what we have charged because we have worked this case a lot harder, because they have got the benefit of the law going for them. But that's a price. I would like $100,000 given to Bobbie Herakovich -- MR. CLARK: Yes. MR. WATTERSON: -- to cover everything, which includes attorneys' fees. And I intend to conduct my dealings on the basis of -- not on a per case basis, but on a here is twenty thousand, you figure out how to spend it between the three, between the four of you; with the lawyer and three plaintiffs, you all go and figure it out. And then see whether it goes incremental. I won't put the first dollar on the table if it's going a certain way at this trial. MS. MONROE: You would wait until the jurors are chosen? MR. WATTERSON: Yes. In this particular case, the way dealings have gone in the past, I wouldn't show up,at trial saying, "Do you want to settle." That's not my tactic. I am going to walk in there like I am LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 U U s N Q 0 w W 5 0 a 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 going to start this case and finish this case, because I don't think that words like settlement or dollars could come out of my mouth until I am done with an opening statement in this case and a witness. I have no idea who the first witness is. we have some wild stuff. We have -- we might see this case -- I believe that this case -- and if the public or a newspaper reporter ever shows up here to read this, then let them hear me say this -- this case is John Orr's case. John Orr is in the middle of this thing. He is a consultant to these people. The testimony is that these people go and they talk with John Orr. Linda Erbacher goes by John Orr's house, having discussions about what to do. When she was employed by Greenacres she went to Mr. Orr in order to bitch what they did in Greenacres and compare how they did things differently. This is John Orr's case, and I might see John Orr come out of this case, and if he comes out and testifies in this case, I don't know what's going to happen. I can tell you that I have worked an awful LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 m "w 0 U s a a a y 0 a w 5 0 V 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 29 lot of hours on trying to set the different tactics that I might have to use in this case. But one thing I am resolved on, is I am not going to cream these women. I am not going to do it. I can do it. I can get there and I can waste them all. That's a wrong tactic. If I do that, I will be creating the sympathy I am afraid of. So a particular type of demeanor is going to have to be adopted, and I am going to have to trust the jury I get here to see the common sense. Infecting this case, and you should know it and I want you to know it, is the timing aspects with respect to when this occurred. These things happened to occur on the same date as the retirement party, and we are stuck with that fact. It kind of doe:, look -- it will be used and it will be said over and over that there is no better evidence of a desire to punish these people than the timing of it. What a message they send to John Orr and his cronies at the Radisson than to send over the employees of Palm LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 N W O W 0 U a a N w Q 0 a 0 V f 0 30 1 Beach Gardens, former key employees to share 2 with the celebratory going -away retirement party 3 the news that two of his key supporters have 4 been terminated in the city, while the hotel was 5 surrounded by police officers taking names for a 6 political enemies list. 7 That's their case. That's my job to try 8 to undo that. But I am stuck with that fact. 9 And during the course of this case, I can 10 say that I can't tell you. All I can do is 11 promise you that I have worked this case and I 12 am prepared for this case and I am going to do 13 the best job I can. But somebody else is going 14 to decide it, not Joe Russo and not me. I have 15 said it's a classic, wonderful trial case. it 16 really is. 17 MS. FURTADO: Terry -- 18 MR. WATTERSON: I don't know how it's 19 going turn out. 20 MS. FURTADO: -- you are talking a hundred 21 thousand across the board? 22 MR. WATTERSON: Yes. 23 MS. FURTADO: I will support that. 24 MR. CLARK: I think that's a good number. 25 MR. RUSSO: I am going to be the only one LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 N 0 U a w 0 a w a V Q 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 31 that's not going to support it, then. MS. FURTADO: I am not happy with it. MR. RUSSO: I will not. I don't mind settling things where there are gray area issues and so forth, but when an employee wants to hold the city hostage, and this is what it is, I just believe that it's an unreasonable amount of money. That's one thing. To me a hundred thousand dollars is a lot of money. MR. WATTERSJN: I am not disagreeing with you. I agree with you. MR. RUSSO: Don't get me wrong. If you came to me one week in the case, you sat here and said we have to have an emergency meeting, you sat here and you're telling me it don't look good, then I have a whole different approach. MR. WATTERSON: I understand. MR. RUSSO: What I am saying is: I would like to rely on the system and rely on yourself, because we didn't do anything wrong in this case and I wouldn't want the taxpayers to think that we did something wrong and we spent a hundred thousand and tried to make something right. MS. FURTADO: Joe, if I hadn't been through what I had been through within the last LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 m m 0 0 V LL a 0 w w U 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 32 60 days, I would agree with you a hundred percent. But I know in the last year I have had two experiences, and I know the system is very flawed and I know what it's also like being an attorney and being in a situation where you have got to make a snap decision one way or another. I agree with you on everything you said a hundred percent. I would feel much more comfortable if it was already ongoing, because I too feel there is no gray areas here. I hope the jury remembers Fawn Hall and Oliver North. MR. WATTERSON: I am only talking about authorization. I am not telling you that I am ever going to put a dollar down on this thing. It's just that I wish to be released of the awkward situation'of not being able to take advantage of something while it's happening. I have seen lawyers at public telephones in hallways trying to find somebody to listen to them, that cases are going bad or that the opportunity has arisen... MR. CLARK: You need to have some -- MR. WATTERSON: That's not a good idea for LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 N w m 0 U a a m ¢ 0 a ¢ 3 V 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 33 a lawyer to go off without some flexibility. MR. CLARK: You need to have that, Terry. MR. RUSSO: Who is in favor of that? MS. MONROE: I am, reluctantly, like everyone else, reluctantly. MR. JABLIN: It's all reluctantly. I would like to side with you on this, Joe. MR. RUSSO: I am more the negotiator. MS. FURTADO% I am against it, but only because of what I have been through, I have to be for it. MR. RUSSO: Again, if you came in to the trial and came away, it might be different. Is there anything else we need to do? MR. WATTERSON: I don't want to get them any money, I will tell that you. MS. HERAKOVICH: I have one question. MR. JABLIN: Please don't, don't give it to them. Make them earn it. MS. HERAKOVICH: Procedurally, in the past the council has given that authority to one of the city council themselves. Does it make it any easier or more difficult on you whether it be myself or one of the council people? LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 m 0 U 0 Q w a V 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 34 MR. WATTERSON: It's really up -- MS. HERAKOVICH: It doesn't matter to me. MR. WATTERSON: It doesn't matter to me. I would like you to have it, because you you are the most accessible person. You are the person that I am going to be letting know what's going on. I have made a decision that I am not going to have Bobbie sitting in the courtroom every day. I don't want her feeling like she's on trial, because she is not. MS. FURTADO: I agree. MS. MONROE: She did got a job could do. MR. WATTERSON: I am going to say in the opening statement that I've got people back at the city, you will see various faces show up from time to time, but it's a busy city and the people have jobs to do and there won't be some mock human being there sitting next to me at the counsel table. But it is a city of people, human beings. MR. RUSSO: Everybody wants to have Bobbie do it, then. MR. WATTERSON: I would like her. MR. CLARK: Yes. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 0 U ti a a m ¢ 0 w ¢ ¢ a U 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 35 MR. WATTERSON: Unless you have done -- MR. RUSSO: It would only be David. David is our settler of cases and lawsuits. MR. WATTERSON: When are you going on vacation? MR. RUSSO: The end of July, July 19. MS. MONROE: I read between those lines. MR. CLARK: We better get back in there before the Lake Catherine people. MR. WATTERSON: I want to thank you for giving me a chance to come over and talk about it. What I know is sometimes in these cases you really want your client to sit there and see the effort, because that's basically all we can guarantee. And representing government, sometimes it's kind of lonely in court and your clientele is not seeing it. They just see the result. And we have noted that. We have won most of the cases. That county case last year never had anybody from the county watching. They don't know what happened. We have worked on this thing. MR. RUSSO: This won't be on CNN. LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 0 U LL d Q a ¢ w O w ¢ ¢ V ¢ 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. WATTERSON: We better get off the record. (Thereupon, at 7:50 o'clock p.m., the meeting was adjourned.) LEY AND MARSHA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401 36 0 U LL Nf ¢ a a a m w O w ¢ ¢ U 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 37 C E R T I F I C A T E THE STATE OF FLORIDA,) COUNTY OF PALM BEACH.) I, Jane Pastore, Registered Professional Reporter, do hereby certify that I was authorized to and did report the above meeting at the time and place herein stated, and that it is a true and correct transcription of my stenotype notes taken during said meeting. Dated this 5th day of August, 1996. t Jane Pastore, RPR LEY AND MARSAA COURT REPORTERS, INC. 1551 FORUM PLACE, SUITE 500 -B WEST PALM BEACH, FLORIDA 33401