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Trial Day 15
Katherine, Rebbie and Trent Jackson are at court.
LA Times reported that the Jacksons offered a settlement.
Kevin Boyle , a lawyer for Katherine Jackson and Michael's kids , said they offered to settle the lawsuit against AEG, but that they never got an answer. Kevin Boyle said the family made the offers in January & March. Boyle would not provide details but said AEG's insurance would have paid, which means they could have settled the case without them paying a dime of their money. He said AEG has never offered to settle & they haven't apologized.
Marvin Putnam, an attorney for AEG, said it was inappropriate to discuss settlement discussions:

"We don't settle matters that are utterly baseless. We believe that is the case in this matter. I can't see why we would consider a settlement as anything other than a shakedown"

CNN Reports there was a snack controversy during trial: AEG lawyers gave a bag of peppermint candy to the bailiff to hand out to the jury this week. Even Katherine Jackson enjoyed the treat but Jackson's lawyer raised an objection, suggesting jurors might be influenced if they realized the source of the sweets. A compromise was reached. Each side can provide snacks for jurors, but they'll be placed at the bailiff's desk before jurors enter court so they have no clue who brought it.
Shawn Trell Testimony
Jackson direct
AEG Live General Counsel, Shawn Trell, told jurors that he had forgotten that Kenny Ortega was working under a signed contract.
Trell said he met with his attorneys last night and reviewed one doc -- Kenny Ortega's contract.

"He had a written contract," Trell said. "I remember the email dynamic. I'm not too proud to admit that I didn't recall the cover contract," Trell said he was changing his previous testimony to add that Ortega had a written contract, not only emails between him and AEG

Next topic was Insurance: Cancellation/Non-Appearance/Sickness. Trell said he started working on insurance for the tour in November of 2008. Panish showed several chains of emails where the parties talked about the insurance for the tour
Email from Bob Taylor insurance broker to Trell on 1/7/09:

"Prior to speaking with carriers we ask the artist to attend medical with a doctor...A full medical with both blood/urine tests. The doctor also wants to review the medical records over the last 5 years to ensure full disclosure. Insurers require further medical examination to be carried out by their nominated doctor. They may restrict illness coverage or death from illness coverage until this examination has taken place"

Email from 4/30/09 - Wooley to Trell :

"We have no coverage against Michael sickness unless and until he submits to another medical in London

Email from 5/28/09 - Trell to Taylor:

"We really need to get that medical done"

Email from 6/23/09 - Trell to Taylor :

"Any update on the availability of Term insurance?" (life insurance)

Trell said if they secured life insurance, they would get money if Michael died.

"We would get the money owed to us, yes," Trell testified.

Trell also said he continued discussions with an insurance broker about additional coverage to recoup AEG Live's investment if the tour had to be canceled.
Email from 6/24/09 -Taylor to Trell :

"Insurers have refused to move on this. Huge amount of speculation in the media regarding artist's health. They feel if they're to consider providing illness to cover this particular artist, they must have very through medical report"

Email from 6/25/09 - Gongaware to Taylor :

"If we don't get sickness coverage, we are dropping this policy"

Email from 6/25/09 - Taylor to Gongaware :

"The consultation in London is critical. The doctor is holding the afternoon of the 6th July open at Harley St. But keep in mind the visit could take 2 hours plus"

Next topic: Budget/Costs. Panish showed an email from AEG's Rick Webking to Michael's estate with 1st report of artist advances/expenses. This was a letter sent to the estate containing the expenses incurred, Trell said.

"It seems to me we submitted this report for their review, I don't see any request for payment," Trell said.

Trell said he spoke with Randy Phillips and Paul Gongaware about Michael's physical condition prior to coming to testify.

"I had heard about rehearsals in which Mr. Jackson was fantastic," Trell said

Trell said he's aware of email from Ortega saying doctor was not allowing Michael to attend rehearsal on June 14, 2009.

"I was aware of the doctor not allowing him to attend rehearsal," Trell said

Email from 6/17/09 from Phillips:

"...Ortega, Gongaware, Dileo, and his doctor Conrad from Vegas and I have an intervention with him to get him to focus and come to rehearsal"

Email from 6/17/09 from Gongaware to Phillip's assistant:

"We need a physical therapist and a nutritionist"

Email from Production Manager - Gongaware/Phillips on 6/19/09 :

"Paul/Randy I'm not bring a drama queen here. Kenny asked me to notify you both Michael was sent home without stepping foot on stage. He was a basket case and Kenny was concerned he would embarrass himself on stage, or worse yet, be hurt. The company is rehearsing right now, but the DOUBT is pervasive"

Email from Randy Phillips to Tim Leiweke on 6/19/09 :

"We have a huge problem here."
"I think he recognized there was a problem on the 19th," Trell said. "I would take it seriously, as I believe Mr. Phillips did."

Trell agreed with a statement by plaintiff's attorney, Brian Panish, that company executives knew by then there was a "deep issue" with Jackson
Does Trell consider that exchange a "red flag" that AEG Live should have noticed, Panish asked.

"I would take it seriously, as I believe Mr. Phillips did," Trell answered. "I don't know I would use the word 'red flag'

One of the emails shown to the jury was from Jackson estate co-executor John Branca, sent 5 days before Jackson's death & marked 'confidential':

"I have the right therapist/spiritual advisosubstance abuse counselor who could help (recently helped Mike Tyson get sober and paroled) Do we know whether there is a substance issue involved (perhaps better discussed on the phone)

The email was sent the same day that a meeting was held at Jackson's home with Murray. No further info given to jury.
Trell said Mr. Phillips never told him about this email
Email from Ortega to Randy Phillips on 6/20/09: (chain of emails)

"I honestly don't think he is ready for this based on his continued physical weakening and deepening emotional state"

Trell said he didn't see these emails. He said he spoke with Randy Phillips about Phillips' perception of Michael, in order to prepare for testifying, but not about specific emails. Trell has been designated as the most qualified person to speak on behalf of AEG
Email from Phillips to Gongaware on 6/20/09 at 1:52 am :

"Tim and I are going to see him tomorrow, however, I'm not sure what the problem is Chemical or Physiological?"

From Gongaware to Phillips, on 6/20/09 at 5:59 am :

"Take the doctor with you. Why wasn't he there last night?"

From Phillips to Gongaware, on 6/20/09 at 2:01 pm :

"He is not a psychiatrist so I'm not sure how effective he can be at this point obviously, getting him there is not the issue. It is much deeper"

Trell said Randy Phillips went to a handful of rehearsals, three at the Forum and two at Staples Center. The head of the marketing department attended rehearsal on June 23, 2009.

"She was blown away by it," Trell testified.

He said he was unaware of issues with Jackson at rehearsals.

"I knew of no problems with Michael Jackson at all",Trell testified.

Trell said he never saw the emails from Phillips directing people to exclude images from This Is It of Michael looking "skeletal" while rehearsing.

"What were his observations of Michael's physical condition during rehearsal," Trell said. "I asked for his (Phillips) personal opinion."

Next line of questioning is about human resources and background checks. Trell said they can be valuable and useful tools when hiring. Background check costs around $40 to $125. Trell said AEG Live could afford this fee. "We don't do background checks on independent contractors," Trell said. Trell said he was involved in the hiring by AEG Live for the This Is It tour. His department was responsible for retaining independent contractors. Trell said he is not familiar with background check process for hiring.

"I am not familiar with the process of doing background checks," Trell said. "No training."

​

Panish: "There was no hiring criteria for the This Is It tour, correct?"

Trell: "Not to my knowledge"
Trell testified that when it comes to independent contractors, they have either worked with the artists, AEG or known in the industry. Trell agreed that no background check was done on anyone working on the This Is It tour. AEG Live General Counsel Shawn Trell told jurors that no legal or financial checks were done involving Conrad Murray or anyone else who worked as an independent contractor on the This Is It shows.
Depending on the nature of the position, a background could be done, Trell said, like for potential employees in the financial area. Trell said he thought a background check would be appropriate for people working in financial roles, but not tour personnel who weren't employees of AEG
As to independent contractors, Trell said there's no supervision and monitoring like there's for employees

Panish: "You don't do anything to check into background, supervise or protect the artist?"

Trell: "No, safety is a concern"
Trell said that AEG did not hire Murray, that the doctor was like many independent contractors,

"When they leave the environment, what they do on their own time is their own business"

Trell testified he doesn't believe the artist is more at risk because AEG Live doesn't do background checks

"We did nothing to monitor Dr. Murray," Trell said. "We did not monitor whatever it was that he was doing, no."

"It called for Michael Jackson being able to terminate Dr. Murray at will," Trell said about the contract. "If the concerts didn't go forward, and he was terminated under this provision, Dr. Murray would not be paid going forward," Trell explained
As to Dr Murray being under dire financial straits, Trell said that he doesn't know if he agrees with it, everyone's perception is different

Trell: "I certainly wasn't aware of it at the time"

Panish: "Because you didn't check, right?"
Trell: "That's right"
"I don't think conflict of interests are a good thing, and we would want to prevent it," Trell said
Email from Kathy Jorie to Shawn Trell on 6/24/09 at 12:54 am:

Subject: Revised agreement with GCA Holdings/Dr. MurrayIt had two attachments Attachments: Revised Michael Jackson -AEG GCA Holdings Murray Agreement 6-18-09 Final MJ -- AEG GCA Holdings Agreement (Dr. Murray) 6-23-09

Email chain from 6/23/09, 5:39pm from Jorrie to Wooley, Murray

Subject: RE: Michael Jackson - Revised Agreement with GCA Holdings/Dr. Murray Email:

"I have redlined the Word version so that you can see all of the revisions. In addition, I've attached clean PDF version for execution" (The email says that if Dr. Murray approved it, he was to print it, sign and send it back to Jorrie)
​

Panish: "Did Ms. Jorrie call this contract a draft?"

Trell: "She called it a Final Version"
"Every document is a draft until it is executed," Trell said.
Panish showed emails exchanged among AEG executives that contained drafts of Murray's contract. Although Murray had signed a contract with the company, neither Jackson nor anyone from AEG had added their signatures. Trell testified that a copy of the contract had never been sent to Jackson
With Trell on the stand, Panish played part of an interview that AEG Live President Randy Phillips gave to Sky News television soon after Michael's death.

"This guy was willing to leave his practice for a very large sum of money, so we hired him," Phillips said.

Panish also showed jurors an e-mail between AEG lawyers suggesting that Phillips told other interviewers AEG Live "hired" Murray.

Panish: "Isn't it true that Randy Phillips made numerous comments that AEG Live hired Dr. Murray?"

Trell: "I know he has made that statement"
Panish said AEG higher-ups became concerned after Phillips made such admission. Trell said he didn't know if that was true. Bruce Black is the General Counsel for parent company of AEG and AEG Live. Michael Roth is AEG's media relations
Email from Kathy Jorrie to Bruce Black and Michael Roth on 8/25/09:

Subject: AEG Live president says AEG Live hired Dr. Conrad Murray

Panish shows Trell a deposition, under oath, given by insurance broker Bob Taylor on another case. Trell said he has never seen or read it. Trell denied having a telephone conversation with Mr. Taylor where Trell asked him if a doctor's compensation was covered in the insurance.

Panish: "Does that refresh your recollection that AEG was employing Dr. Murray?"

Trell: "Mr. Taylor has this completely wrong"
After lunch break, Brian Panish asked if Shawn Trell wanted to change anything else in his testimony, to which he said "No"
Bruce Black, attorney for Anschutz, was present in the meeting with LAPD. Trell met with the police on 1/12/10. Trell told the police that day that Dr. Murray would receive $150,000 compensation per month. Trell also said that Dr. Murray requested and AEG would provide necessary medical equipment and a nurse. More than five months after Jackson's death, Trell said, he informed LAPD detectives that Murray initially requested $5 million to join the tour but eventually agreed to a salary of $150,000 a month for 10 months.

Panish: "As far as you know, all the agreements written for TII tour was done under AEG Live Productions, right?"

Trell: "Yes"
Panish: "Was Dr. Murray trying to help AEG get insurance?"
Trell: "The policy was in both names, so he was helping both parties"
Trell said Dennis Hawk, who represented Michael, was in touch with Taylor regarding the insurance

Panish: "As of June 2009, you don't even know whether Mr. Jackson had a personal manager
working for him, right?"

Trell: "Well, my understanding at the time there were a couple of people acting in that capacity"
Email on 6/2/09 from Randy Phillips to Jeff Wald:

"Jeff, remember getting Michael to focus is not the easiest thing in the world and we still have no lawyer, business manager, or, even real manager in place. It is a nightmare!"

Trell said the only time he saw an artist's signature required to retain an independent contractor was for Dr. Murray. Trell said his understanding was that Dr. Murray worked for Michael for 3 years; didn't know how many times MJ saw Dr. Murray.

"I've never spoken with Dr. Murray ever. And I met/spoke with Mr. Jackson once," Trell said.

​

"He was a significant expense," Trell testified about Dr. Murray.

Trell said AEG Live didn't do anything to check Dr. Murray's competency as doctor, other than checking his physician license. Trell said AEG didn't do anything to determine Dr. Murray's financial conditions in 2009.
Jury was shown an email that Phillips sent to Kenny Ortega on night of June 20, 2009. It was email urging Ortega to stand down.
Email on 6/20/09 Phillips to Ortega :

"Kenny it's critical that neither you, me, anyone around this show become amateur psychiatrist/physicians. I had a lengthy conversation with Dr. Murray, who I am gaining immense respect for as I get to deal with him more. He said that Michael is not only physically equipped to perform & discouraging him to will hasten his decline instead of stopping it. Dr. Murray also reiterated that he is mentally able to and was speaking to me from the house where he had spent the morning with Michael. This doctor is extremely successful (we check everyone out) and does not need this gig so he is totally unbiased and ethical"

Panish asked Trell whether Phillips "characterization to Ortega, given no background check was done, was a lie". Trell responded that he didn't know what Phillips knew or was thinking when he wrote that email to Ortega. Trell also said he expected Randy Phillips to testify at some point during the trial, so he could address the email himself

Panish then asked Trell, "Sir, you never checked out one single thing about Dr. Murray -- you've already told me that, correct?"

"As of the date of the email, that would've been correct",Trell said.
When pressed by Panish, Trell said that Phillips' statement that Murray had been checked out, along with the executive's claim that the doctor 'does not need this gig' were inaccurate.

"I don't know where Randy's understanding or impression comes from", Trell said.

Trell testified that Phillips might have been "misinformed" or simply was stating his impression of the Las Vegas cardiologist

Panish: "But no one at AEG checked Dr. Murray to see if he was successful or not, isn't that true?"

Trell: "Yes"
Panish then asked several pointed questions about whether Shawn Trell agreed with Phillips telling Ortega they'd checked Murray out. One of Panish's questions was whether Trell thought Phillips' email was 'acceptable conduct'
Panish called Phillips' statement "a flat out lie" and asked Trell whether he agreed with it or if it signified how AEG did business. Trell said he didn't know what Phillips thought he knew when he wrote the message.

"I know this statement is not accurate, but you'd have to speak with Mr. Phillips about what he thought or meant in saying it," Trell said.

​

Panish: "That's a flat out lie, isn't it sir?"

Trell: "I don't know what Mr. Phillips intended to say, this should be a question to him"
Panish: "You don't know if he was successful or facing bankruptcy, did you?"
Trell: "No"
Trell: "I know the statement is not accurate. You have to speak with Mr. Phillips about what he meant to say"
Panish: "Do you agree with the CEO of your company making untrue statements?"
Trell: "I don't know that he didn't know it wasn't true when he said it"
Trell said Phillips never told him that he checked Dr. Murray out. As to reference in Phillips' email about Dr. Murray being unbiased, ethical, not needing this gig, Trell said it was Phillips' impressions. He said AEG typically only runs background checks on candidates applying for full-time jobs with AEG, not independent contractors.

Panish: "Isn't it true AEG Live does not do background check on independent contractors?"

Trell: "That's true"
Trell said that no one from AEG interviewed Dr. Murray because he was an independent contractor.

"Did anyone from AEG ever at any time interview Dr. Murray", asked Brian Panish

"No", Trell replied.
Panish showed a document used by AEG entitled "Disclosure and Authorization to Conduct Background Check". Doc is used for employment, promotion, retention, contingent or the rate staffing, consulting, sub-contract work, or volunteer work. Panish asked if there was any reason why Dr. Murray was not given a background check.

"He wasn't an employee, he wasn't applying for a full time position with the company," Trell explained.

Trell said theoretically they could've asked to check Dr. Murray's background and credit.
AEG Cross
Jessica Bina began her examination by showing the letter submitted by AEG's CFO to the Estate of Michael Jackson for their review. She asked Shawn Trell about the estimate presented to Jackson's estate that included Murray's $300k fees. She asked why it was prepared. Shawn Trell said it was done at the request of the estate. He said Jackson's estate wanted to know state of tour finances when Jackson died. Trell said the report was requested by the Estate after a series of meetings after Michael's death.

"The purpose of the meeting was to wind up the business affairs of the tour due to Michael's death", Trell said. "It was my understating in June Tohme was back in the picture in some capacity. I'm not sure which, Mr. DiLeo was in it too," Trell said

Bina: "Is there any request for payment?"
Trell: "No, there's no demand for payment, it's for review"
Stebbins Bina asked about the inclusion of Murray's fee in the document. Bina showed the report that was attached to the letter. Murray's fee on the document had a footnote. Trell read what that footnote said, and explained why estate wasn't asked for Murray's fee. Next to "Management Medical" there's a reference to footnote 3.

Note 3: 'Contract is not signed by Michael Jackson and such signature was condition precedent to any payment obligation' - Footnote on Murray fee.

Trell testified Webking, the CFO for AEG, did not ask Michael's Estate for payment of Dr. Murray's salary

"You testified you were somewhat confused (by the inclusion of the $300,000)?", Bina asked Trell as she projected the list, dated July 17, 2009, on a screen for jurors.

"Do you see there's something in parentheses?', Stebbins Bina asked, zooming in to blow up a footnote from AEG CFO Frederick Webking that stated Michael Jackson never signed Murray's contract, so its terms were not enforceable.
"Is Mr. Webking asking the estate to pay?", Stebbins Bina asked Trell. "No", he replied, explaining that upon reflection he believed Mr. Webking was just being 'thorough' by including the $300,000 as a budgeted cost.
"Did Mr. Webking make a mistake as you thought yesterday?",she asked.
"No, he did not", Trell answered
Second report made to the Estate on 9/18/09, there was no amount next to management medical. Stebbins Bina then showed a Sept. 2009 report of This Is It's finances to Michael Jackson's estate. Murray's fee is not listed in that document
Trell went through his job description with AEG. He said he has five lawyers in his department and has worked on thousands of agreements. Trell explained what PMK is -- Person Most Knowledgeable, identified by the company to testify on its behalf. Trell said he didn't know about all the topics he was designated, so he had to do some studying and interviews with people
As to Ortega's contract, Trell said he was aware of a string of emails being at least a part of the original agreement with Kenny.

"When we were done here yesterday, I looked at Kenny Ortega's original agreement," Trell said.

Trell noted he hadn't looked at Ortega's agreement since it was entered into in 2009. Before the afternoon break, Trell and jury were shown Kenny Ortega's tour agreement. It was signed in April 2009. The agreement was three pages of legalese, with several pages of emails attached that confirmed the terms. The first three pages included some paragraphs that described who owned the rights to This Is It content. A large number of emails are part of the agreement as exhibits. Trell said he recalled the emails exchange and admitted again not being proud of forgetting the cover contract portion. Bina showed Ortega's executed contract with everyone's signature on it. Trell said Kenny Ortega was paid after his contract was signed.
Trell, Phillips and Kathy Jorrie were involved in drafting and negotiating the contract with Michael Jackson. For MJ, Trell said Dr. Tohme Tohme and attorneys Dennis Hawk and Peter Lopez represented him. He said there were multiple drafts.

"It's my understanding they were talking to, or at least receiving offers from, a competitive of ours, Live Nation," Trell said.

Trell also said that before signing an agreement with AEG, Jackson had been considering a tour offer from its main competitor, Live Nation.
Bina showed the jury the final tour agreement. Trell said he went to MJ's home at Carolwood to sign it. Upon arrival, Trell said Mr. Jackson got up from where he was seated, and said 'Hi, welcome, I'm Michael." Trell said it was pretty funny, since he was a very distinct person. Trell said they shook hands, he had a good firm handshake and his voice was not what people think

"He popped up, came over, introduced himself, was very cordial, there was a real positive energy, good vibe in the room," Trell said. "He seemed genuinely enthused," Trell added. "He had the contract in front of him, said he read every page, seemed very enthused." Trell said they all signed it and Mr. Jackson was really keen on the 3-D stuff, that he was already down the road in his mind. "I was probably there just a little less than an hour. And that was the only time I met him," Trell recalled.

Bina discussed the contract for the tour agreement:
A first class performance by Artist at each show on each of the approved itineraries. Contract:

Artist shall perform no less than 80 minutes at each show, and the maximum show length for each show shall be 3.5 hours. Artist shall approve a sufficient number of shows on itineraries proposed by promoter or producer as to recoup the advances made.

Trell said compensation was agreed on 90-10 split. Artist received 90% of what's defined contingent compensation.
Trell explained to jury how concerts get paid for. One scenario is artist pays for production up front. A second scenario is that the promoter gives artist an advance, and then they use the money to put together the show. The third option, Trell said, is the artist pays someone like AEG Live to produce and promote the show, with costs to come out of their pay. Trell called the second and third option like an interest-free loan. In Jackson's case, AEG agreed to a 90/10 split of show's proceeds. Jackson would have received the 90% portion, Trell said. Jackson was also on the hook for a 5% production fee
AEG Live was promoter & producer.

"We advanced the money necessary to mount the tour," Trell explained. "It's interest free money".

Trell testified that Jackson's advance, which covered his $100,000-a-month rent on his mansion and a $3-million payment to settle a lawsuit that would free up his performance rights, was considered a loan to be paid back to AEG.
Part of the advance was to pay off the settlement agreement of $3 million in London court. The underlying dispute was that a company owned the rights for Jackson's live performance.

"The rights needed to be freed up," Trell said.

The advances were to be paid back to AEG Live before the split of revenue. Production Advances were capped to $7.5 million. Contract:
Artist was responsible for all the production costs in excess of the cap and had to reimburse promoter.

"Michael Jackson was known to have very elaborate productions," Trell said. "Production values can get significant, for lack of a better word, it really depends on how many bells and whistles they want," Trell said.

Trell said AEG would not advance money without the artist requesting it.
Trell said it's not only typical and customary, but standard and artist needs to secure either non-appearance or cancellation insurance. Their interest in the policy, Trell said, was to cover the advances and production costs incurred with the production of the show.

"If the were no obligations to AEG, the payout would go back to the artist", Trell explained, "It just recoups our loan made to the artist."

Trell was also asked about elements of tour insurance policies and an agreement with former manager Tohme Tohme. Jackson's contract called for him to represent to AEG that he didn't have any health conditions that would keep him from performing.
Contract:

Artistco hereby represents and warrants that artist does not possess any known health conditions, injuries or ailments that would reasonable be expected to interfere with Artist's first class performance at each of the shows during the term

Oh Tohme's $100k per month agreement, Trell was shown a January contract that Jackson signed to pay that amount. However, Trell said Tohme's agreement was predicated on Jackson getting tour cancellation insurance by a certain date. Deadline passed and by that point Tohme was no longer Jackson's manager, so he wasn't entitled to be paid his monthly fee.
January 24, 2009 -- agreement entered with Dr. Tohme Tohme. Trell said Michael was involved and signed this agreement. "This agreement was entered into January 26, Trell testified.

"There are conditions that needed to be met before any payment could be made."

One of the the conditions was placement of non-appearance insurance, Trell said. That placement was done in late April, early May. In May, AEG received letter from MJ saying Tohme didn't rep him anymore.

"No payments were ever made under this agreement," Trell explained.

Court Transcript
Rebbie Jackson attending court
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