Day 66 of AEG Court Hearing: Kathy Jorrie Testimony

Jacksons vs AEG - Day 66 - August 9 2013 - Summary

Katherine Jackson is not present in court.

Source: ABC7 unless otherwise indicated

Kathy Jorrie Testimony

AEG redirect

Kathy Jorrie is back on the stand. Jessica Stebbins Bina resumed re-direct examination. Bina showed Jorrie MJ's contract. Paragraph 13: Artistco hereby represents/warrants that Artist does not possess any known health condition, injuries, or ailments that would reasonably be expected to interfere with Artist's first-class performance.

Bina: Who signed this?

Jorrie: Michael Jackson.

Bina: So MJ represented that he did not have any health condition that would interfere with his performance?

Jorrie: I never had any information that MJ was not in good health.

Bina: Drug problems?

J: None whatsoever

Bina: Insomnia or sleep problems?

Jorrie: Not in the least.

Bina asked if Jorrie believed Tohme was an officer of MJ company. She said yes. Bina: Did Mr. Panish show any documents that he was not an officer? Jorrie: He did not. Regarding the email Dennis Hawk, MJ's attorney, sent Jorrie on January 14, 2009, she said they wanted to replace the name of MJ's company. Bina: Before Jun 28, you had been told Tohme was an officer of the MJ's company? Jorrie: Yes. It's usually the type of representation she gets. Bina asked if Jorrie was told on June 28, 2009 that Dr. Tohme was an officer of MJ's company when he received the consent document. Jorrie: That's my best recollection. I was informed that he was an officer of Michael Jackson's company. Jorrie said Tohme himself represented to her that he was an officer of MJJ's company.

Jorrie said the meeting on June 28, 2009 was called by John Branca, co-executor of MJ's Estate. Co-executor John McClain was on the phone. She said Frank DiLeo and various AEG reps were also present at the meeting, and Tohme was there speaking about things having to do with MJ. "Dr. Tohme was there discussing MJ's business in front of everybody," Jorrie testified. "Nobody challenged Dr. Tohme or his presence." Jorrie said Dr. Tohme signed this document. She said she has seen Frank DiLeo's signature as well approving the expenses. Jorrie: I'm aware that the Estate reimbursed some costs. Bina asked if Weitzman told her Tohme had been fired, but nevertheless the Estate agreed to reimburse AEG for production costs. Jorrie: Correct

Bina asked if Woolley forwarded Jorrie an email saying Dr. Murray was fully engaged in Mr. Jackson's treatment in May. She said no.

Bina: Did it surprise you that Dr. Murray was fully engaged and treating MJ in May 2009?

Jorrie: No.

Bina: Why not?

Jorrie: Because I understood from Murray that he was MJ's personal physician for 3 years.

B: Did Murray tell you that?

J: He did

Bina asked if Jorrie told Dr. Murray to stop treating MJ until they had an agreement. She said no. Jorrie: The reason is that Dr. Murray was Mr. Jackson's physician, and it would not be my place to tell him not to provide services. Jorrie said MJ had been his patient for many years.

Bina: Did Dr. Murray need an agreement with AEG Live to treat patients?

Jorrie: No, he did not need an agreement from AEG Live to perform services to his patients, including Michael Jackson.

Jorrie read graph 9 of the contract, "Artist Consent." It says that without the express written consent of MJ, the contract was not valid. Jorrie: This is an independent contract agreement. Dr. Murray was MJ's physicians, retained to and in the expense of the artist.

Bina: You didn't put any provision for Dr. Murray to be supervised by AEG Live?

Jorrie: Of course not.

Bina: Are there any words in the agreement that says Murray can only use medical equipment approved and bought by AEG?

Jorrie: There's no such wording. Jorrie said there was also no word about Dr. Murray having to use only equipment provided by AEG to treat Michael Jackson.

Bina: Did Dr. Murray ever ask you for any equipment?

Jorrie: No

Bina asked about the end date of the contract. The original date was Sept. 2009, but Dr. Murray asked it to be changed to March 2010, Jorrie said. Bina asked Jorrie why she didn't check with MJ or his reps about changing the end date of the contract. Jorrie explained they were negotiating a contract to a place where Dr. Murray was happy with the agreement. She said it would then be presented to MJ and his representatives for approval.

Bina: Did you ever send the signed agreement to MJ?

Jorrie: No, I didn't.

B: Why not?

J: Michael Jackson passed away.

Jorrie used as a template an independent contract agreement used in the King Tut exhibition. It was between an individual and an affiliate of AEG. There is no mention of artist consent in that contract; it was not a service to an artist. Jorrie said she removed the conflict provisions because they dealt with conflict of interest for the individual working for a competitor. She said that provision was not applicable to Murray. Jorrie also removed the provision "Intellectual Property" since it was not applicable either.

Bina asked if Jorrie's understanding was that Dr. Murray was making one million dollars a month. She said she understood his medical practice brought in a million dollars, from which he had to pay his expenses, nurses, and medical equipment.

Jorrie said from the conversation she had with Dr. Murray she did not understand he was going to close his medical practices to go on tour. "He told me he was leaving the practices to go on tour with MJ," Jorrie explained. Dr. Murray never told her he was closing his practices.

Jorrie found that there were two places of businesses associated with Dr. Murray and his medical licenses. Jorrie: I found Dr. Murray was licensed to practice medicine in 4 states, with no disciplinary action against him in any state. The clinics she found were in Nevada and Texas, Jorrie said. "The 2 places of businesses that I assumed were clinics." Jorrie: It was just spot check. I checked his medical licenses; there were no disciplinary actions. The company was legit; everything matched. "I had no reason to doubt the information given to me was incorrect," Jorrie said. "There were no red flags." Jorrie: I didn't think it was my place to check Michael Jackson's physician, who he had for many years.

Jackson recross

Panish then did re-cross of Jorrie.

Jorrie said GCA Holdings was a legitimate company, and its license had not been suspended. Panish: Did you bill AEG for the research you did? Jorrie: It was 10 minutes of research, and it was part of the preparation of Murray's contract. Jorrie explained she would not have entered into the invoice a spot check of Dr. Murray's licenses/company. Panish: Does your time entry have anything about the check you did on Murray? Jorrie said she needs to look at the documents to refresh her memory.

Jorrie said a red flag is when things come up that alert her to evaluate further. Panish: There were no red flags raised in the 10-minute search you did on Dr. Murray, correct? Jorrie: That's correct. Jorrie said she was checking to make sure the information Dr. Murray gave her was correct.

Panish: Did you ever do a google search for Michael Jackson Company? Jorrie: No. Jorrie said she went on to the Delaware Secretary of the State website to check Michael Jackson's company. Panish: MJ's company was a sole member LLC, wasn't it? Jorrie: That I don't recall when I looked at it. Jorrie said she believes she has a copy of the Delaware Secretary of the State of when she checked MJ's company. Panish: Did you bill your client for that work? Jorrie: I don't recall. I have to look at the time and see whether or not I billed them. Jorrie said she never received any document from Shawn Trell stating anyone else as officer of Michael Jackson's company. Panish: Did you ever contact the Delaware Secretary of State to see if Dr. Tohme was an officer of MJ LLC? Jorrie: No. Jorrie did not contract John Branca, co-executor to be, to check if Dr. Tohme was an officer of MJ's LLC.

Jorrie said Mr. Tohme did not sign the consent document in her presence. She gave him the document for review.

Panish: Were you aware Dr. Tohme was supposed to get paid $200,000 for signing this document?

Jorrie: I wasn't aware, sir.

Panish: Were you aware the budget called to pay Dr. Murray $450,000?

Jorrie: I was not aware, sir.

Jorrie said the budget had to be approved prior to any payment. She testified she never asked Branca if Tohme was officer of MJ's company.

Jorrie said she saw Dr. Murray was licensed for cardiovascular something. He was also licensed in internal medicine. Panish asked if there's such a thing as a cardiovascular license. "I told you what I remember seeing," Jorrie explained. Panish: Did you see his internal medicine license had lapsed in 2008? Jorrie: No, I don't remember seeing it. Panish: Is your testimony that Dr. Murray was licensed in internal medicine and cardiovascular? Jorrie: It's my testimony under oath that's what I saw 4 years ago, yes.

Jorrie said she told Dr. Murray he would get paid once the contract was fully executed. Jorrie sent all drafts of the contract to Trell and AEG, but never sent them to Michael Jackson or his representatives. This was the 1st time Jorrie negotiated a contract for an artist's physician. She never researched about a third-party contract for artist/doc.

Jorrie said she did not go out of her way to check Dr. Murray's credit report, debts, or outstanding child support claims. Panish asked if Jorrie was copied on any of the chain email "Trouble at the Front." She said she was not. Jorrie said the only medical check she's aware of that Michael Jackson underwent was for the insurance company.

Jorrie said Howard Weitzman may have told her about the dispute in termination of Dr. Tohme.

AEG redirect

In re-re-direct, Bina asked: Why didn't you ask John Branca if Dr. Tohme was officer of the company? Jorrie said Branca was a co-executor to be, and she believed he would not know the answer. He had been MJ's attorney for a week. Jorrie thought Dr. Tohme would be the most appropriate person to ask whether he was an officer of MJ's company or not.

Bina: Did you think there was a conflict of interest in the contract? "I believe that there wasn't contractual conflict of interest," Jorrie said. Jorrie explained MJ and Dr. Murray's interests were aligned: to treat him and keep him healthy while performing at the O2 arena.

Jackson recross

In re-re-cross, Panish asked if Jorrie has expertise in medical conflict of interest. She said she's not an expert in medical conflict.

Jorrie said she read that Branca represented MJ about 10 years before.

Panish: AEG didn't have to have a contract with Dr. Murray, right?

Jorrie: It was an accommodation, sir.

Panish asked if there was anything preventing AEG from preparing the contract with Dr. Murray and giving it to MJ. She said no.

AEG redirect

In re-re-re-direct, Bina asked if MJ specifically asked AEG to draft the contract for Dr. Murray and advance the funds necessary.

Jorrie: Yes

Jackson recross

in re-re-re-cross, Panish rebutted: And AEG could've refused it, right?

Jorrie: Yes