Day 16 of the AEG Trial: Reviewing the Film Production Contract With Michael Jackson

On Wednesday, Sean Trell took the stand to be questioned by the company’s lawyer, Ms. Jessica Benna, as part of the return to court. Most of their time was spent discussing work contracts. Michael had signed a Temi Temi contract, in which he served as his program manager, but a few months later he voided it. The Jackson family’s lawyer said that paying Temi Temi’s salary by the company created a conflict of interest that would be to Michael’s disadvantage. Sean Trell said the company had not paid Temi Temi any salary because Temi Temi had been fired by Michael before that payment ever took place. Although the This Is It tour was expected to be Michael’s final performance on stage, the review of the contract signed between Michael and AEG showed that once the tour ended, a new chapter in the professional life of the King of Pop would begin: filmmaking. One clause in the contract signed between Michael and the company was dedicated to 3D films. Michael intended to show these films to concertgoers during breaks. Under the contract, the company allocated a $1 million budget for producing these films*; production of three of them was successfully completed, but they remained unfinished after Michael’s death. Another clause of the contract, signed on January 28 at Michael’s home, allowed the pop artist to participate in the company’s filmmaking projects (the film production company that was owned by AEG). They had agreed on up to three films. The company would provide Michael with $1 million to work on a screenplay. Trell said that at first Michael was interested in working on a project related to a short film trailer. No further details were provided. Trell said that as of June 1, 2009, the film industry had shown no interest in the project. June was the final deadline for signing the agreement for this project. AEG offered Michael an extension of the signing deadline until October, but Michael never signed the extension paperwork. Trell said: “I know Mr. Jackson still had enthusiasm for this project, and we were also willing to help him reach what he wanted.” Trell also said that, according to the contract, the cost of producing the tour was the responsibility of Michael Jackson. If a concert—or the entire tour—was canceled, he would have to pay all expenses. This witness also testified about the tour insurance contract for TII. Trell testified regarding the medical examination of Michael Jackson that had been requested by the insurance company. The insurance broker, Bob Taylor, had suggested a New York-based ear, nose, and throat specialist to assess Michael Jackson’s health. The doctor traveled to Los Angeles in February 2009 to conduct the examination. He had signed a confidentiality agreement, and for that reason Trell never read the doctor’s report. But Taylor, the insurance broker, told him that the examination result was satisfactory and that Michael had no other issues besides seasonal allergies. Michael had passed the test with an excellent rating. A forensic medical report after Michael’s death confirms this. After this test, the insurance company agreed to insure the first 30 concerts out of the 50 This Is It concerts for $17.5 million, even though the tour production costs were far higher than that. AEG continued negotiating with the insurance company to raise the insured amount. There was no prior precedent for a company insuring only half of a tour. Trell continued discussions with the insurance broker to persuade them to insure the remaining tour as well. Trell says their effort was to reduce the gap between the costs and the insured amount. On the forms, Michael was listed under the alias “Mark Jones” to keep his identity hidden. Trell said that using an alias for an artist on insurance forms was unusual. A clause in the insurance contract stated that if, as a result of (illegal) drug abuse, a problem arose for the artist and he was unable to continue the tour, the insurance company would have no responsibility for paying damages. Trell said that if, for reasons other than the exceptions stated in the contract (including drug use), Michael Jackson were unable to perform—for example, if one of his loved ones died and it became emotionally impossible for him to perform—then the insurance would be willing to pay the damages. AEG also wanted the tour to be insured in cases of illness or death, and the insurance company would only agree to sign the contract if Michael underwent a second medical examination. Trell said that completing a second examination for artists was unusual. London’s Lloyds was not willing to sign a life-and-illness insurance contract or insure the remaining 20 concerts because of rumors in the press about Michael suffering from various diseases. Those rumors were not true, and Michael did not have any of them, but this shows how media impact can affect whether an artist’s career succeeds or fails and how commercial decisions are made. In court, the headlines from newspapers at the time—those that had covered Michael’s alleged fake illnesses—were presented. From paralysis and his use of a wheelchair, to back pain, skin cancer, and a lung infection, but the papers did not mention drug use or sleep problems. Finally, the second medical examination was scheduled for July 6. But Michael died before it could take place. Trell said: “We had no reason to think he would fail the second examination.” At 5:45 a.m. London time (9:45 p.m. June 24 in Los Angeles), Bob Taylor, the insurance broker, sent an email to Conrad Murray, Michael’s physician, informing him that: "The insurance company is seeking information in the following cases: - News reports about the artist (Michael Jackson) using a wheelchair at different times, and whether any of these cases were the result of a medical issue. - News reports that the artist suffers—or has suffered—from back pain. - News reports about the artist having lupus. - News reports about the artist having cancer. - News reports about the artist being hospitalized in 2005. - The date and description of any cosmetic surgery and details. - News reports about the artist having a lung infection, emphysema, and chronic stomach bleeding. - News reports about the artist’s strict diets (anorexia)." A few hours later, Michael Jackson ultimately died after an overdose of the anesthetic propofol administered by Dr. Murray. Jessica Benna, the company’s lawyer, emphasized in court that the list of the insurance company’s concerns did not include drug abuse, alcohol addiction, or insomnia. Benna asked Trell: “Was the company making a profit from insuring the tour?” Trell: “No, the insurance only covered the costs.” Trell said that Dr. Murray had been suggested by Michael and the company had no role in choosing him. The doctor had worked for Michael for three years. He said he was not surprised to have the doctor present with Michael because it was not unusual for artists. An email from Wylie, a finance department employee, sent to Conrad Murray on May 21, showed that because Murray’s contract had not been completed, the finance department was unable to pay the salary he had requested. Murray’s salary was included as part of the tour expenses, but Trell said he felt that this categorization was not final and could change. He said that in the final stage of tour production—when the show is ready to go on stage—all expenses are categorized and set from the beginning. He said that in his view, Conrad Murray’s salary was part of the artist’s costs. Trell said that the responsibility for the artist’s costs and the tour production costs was on Michael Jackson’s company. Trell added that he was unaware of any possible objection by Michael to this matter or Michael’s agreement. On June 20, Kenny Ortega wrote to Randy Phillips, the company’s CEO, in an email: "It’s important that everyone knows this. In my belief, this tour is important to him and he truly wants it. If we cancel the (tour contract) right now, his heart will break. He’s terrified that everything will be destroyed. Tonight he asked me again and again whether I intend to throw him out. He was practically begging me to trust him. My heart ached. He was like a lost boy. There’s still a chance for him to reach where he needs to be, if we don’t deny him the help he needs." Trell said that when Travis Payne was testifying in court a few days earlier, he was present. Travis said that Michael was cold and showed signs of having the flu. Trell said that at the time people were talking about Michael feeling cold, but no one knew exactly what was going on. According to this witness, two sessions were arranged with MJ and Dr. Murray at Michael’s home. One of them was dated June 20. Trell said that another session was held at the beginning of the month, but he could not remember its date. At the June 20 meeting, Dr. Murray, Michael, Randy Phillips, and Kenny Ortega were present. At the start, Michael said, “I’m fine, really fine.” Then Dr. Murray criticized Kenny Ortega for causing concern. Dr. Murray said he was taking care of Michael and that everything was fine. On June 21 and 22, there were no rehearsals, and Michael carried out his final rehearsals on June 23 and 24. He said that company employees informed him that Michael was healthy, and they described his rehearsals during the last two nights as excellent. On the day of Michael’s death, June 25, two managers were handling Michael Jackson’s affairs at the same time: Farank Delio and Temi Temi. Temi Temi had previously been fired by Michael. Then the Michael Jackson Foundation agreed to pay the tour costs. On this day, Yaraian Panish, Catherine Jackson’s lawyer, was given only fifteen minutes to ask Sean Trell questions. Trell said he remembered the events very precisely. He said he would never forget meeting Michael Jackson on January 26, 2009 (the wrong date). He continued: "I’m sure that was the last time I saw him. I won’t forget my meeting with Michael Jackson. When I saw him, he was very charming and personable. I found it interesting that he stood up from his seat and welcomed me at the doorway." Panish then asked whether it was acceptable for company employees to use unpleasant words when talking about an artist. Trell replied: “Everyone has their own idea, feelings, and thoughts about Michael Jackson. Maybe I don’t necessarily agree with some of Michael Jackson’s choices in his life, but I have special respect for him as an artist.” He also said: “I will never forget meeting Michael Jackson. Meeting him was exciting.” At that time, Brian Panish began presenting emails exchanged between company executives. The dates on the emails showed January 28. Panish asked Trell: "Did you make a mistake, sir?" Trell: “I made a mistake about the date. I didn’t mark these dates on my pocket calendar. The exact date of this meeting was not in front of my eyes. The meeting took place on Wednesday, January 28—not Monday, January 26.” Before Panish slowly revealed what he had up his sleeve, he asked Trell whether his boss, Ted Fiker—the senior lawyer of AEG’s parent company—had called Michael Jackson an “unusual” person. “Did Mr. Fiker tell you that Michael Jackson is unusual?” Trell had informed Fiker about the meeting before going to Michael’s home: Fiker: “So you’re meeting that unusual guy?” Trell: “Apparently, yes. I don’t know what I should feel. It must be interesting, but it’s kind of unsettling.” Panish continued: “So your lawyers have such respect for artists that they call them unusual?” Trell: “You should ask Mr. Fiker.” Panish: Did you tell Mr. Anshats (the owner of the company) that his senior attorney called MJ unusual? Trell: “No.” Panish: “Did your mother ever teach you that if you don’t have something good to say about someone, you shouldn’t say anything at all?” The company’s lawyer objected to this question. Several jurors laughed. The judge accepted the objection and deemed Panish’s question aggressive. Trell will return to the stand tomorrow. Panish said to him in a sharp tone: “I’ll see you tomorrow.” Outside the courtroom, Brian Panish had these words for reporters: "These emails are only one example showing what kind of view AEG had of an artist. They had no respect at all for Michael Jackson and saw him only as a tool to make profit—so they could get ahead of their competitor Live Nation. We will prove this to the jurors. The fact that the lawyers treated him with such disrespect is embarrassing. We will present more emails and reveal the real face of AEG. This was just a drop in the bucket." ----------------------------------------------------- [*These videos were: 1) Smooth Criminal, in which Michael played with stars from Hollywood’s golden era using cinematic techniques. 2) The 3D Thriller, which began with a haunted house and a ghostly image of Vincent Price (the narrator of the Thriller song), and then continued in a cemetery where the dead rise from their graves. 3) The 3D Earth Song, featuring a little girl walking in the forest, who falls asleep and, after waking up, finds the forest destroyed. 4) They Don’t Care About Us—or, under another name: Drill—which was a naval military march of soldiers. In fact, this amazing group consisted of 10 dancers, including Michael, whose images were repeated together using advanced techniques. 5) MJ Air, a 3D film in which a 707 jet was used. The jet would attack from behind the scenes into the stage and create a hole. Michael would appear on stage from inside that hole. 6) The Final Message, a 3D film featuring the Earth Song girl holding Earth in her arms. 7) The film The Way You Make Me Feel, which was shown in the background during the performance of this song, where the dancers appeared as workers from past decades on the metal skeleton of a building. / eMJey.com] Source: eMJey.com / ABC & AP