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EXECUTORS: JOHN G. BRANCA. AND JOHN MCCLAIN
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February 16th 2017
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Presiding Judge Mark V. Holmes
Jacksons estate is represented by Avram Salkin, Charles Paul Rettig, Steven Richard Toscher, R
obert S. Horwitz, Edward M. Robbins Jr., Sharyn M. Fisk and Lacey E. Strachan of Hochman Sa
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lkin Rettig Toscher & Perez PC, Paul Gordon Hoffman, Jeryll S. Cohen and Loretta Siciliano of
Hoffman Sabban & Watenmaker and Howard L. Weitzman of Kinsella Weitzman Iser Kump &
Aldisert LLP. ae
The
IRS is represented by its attorneys Donna F. Herbert, Malone Camp, Sebastian Voth, Jordan Mus
en and Laura Mullin.
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Ms Herbert: Respondent calls James Nederlander to the stand.
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JAMES LAWRENCE NEDERLANDER called as a witness sworn in.
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Court Clerk: And please state your name and address for the
record.
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A. James Lawrence Nederlander 15
Ms Herbert:
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A. Hi.
Q. First, I want to thank you for traveling here from New York.
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A. My pleasure.
A. Correct.
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Q. Can you tell us a little bit about it, how did your family
first get involved in the theater business?
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A. My grandfather started in 1912. He was an original Schubert ..
partner in Detroit. My father took the business to New York and
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expanded it to Los Angeles, London, Chicago, and other parts of
the world. And this was something that I grew up in, my father
(inaudible), my grandfather, listening to them.
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Q. Okay. Have you ... after your education have you always been
in the family business?
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A. Yes.
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Q. And do so tell me a little bit first about your grandfather
and what he did.
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A. He stayed in Detroit.
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Q. Okay. And then did other family members become involved in the
business?
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A. Correct.
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Q. His siblings, or?
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Q. Okay. And what was your father's involvement? What did he do?
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A. He ran everything, from working under my grandfather, to
expanding the company, moving it to New York, producing shows. He
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would go to New York to get shows to come to Detroit, and he
expanded to Los Angeles and London and Chicago.
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Q. Did they ... did your organization acquire ownership of
theaters?
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A. Yes.
A. About 27.
A. Yes.
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Q. Okay. And so are these shows on Broadway?
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A. Most of them are, some are no longer with us, as they say.
Q. Okay. Can you name some of the shows that the Nederlander
Organization produced, that you can - -
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A. Under my father's auspice, and my own?
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Q. Either under your father, or yourself.
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A. Annie, Nicholas Nickleby, Moving Out, On Your Feet, Elephant
Man, Romeo and Juliet, some more, ......
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Q. Okay. Thank you.
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A. Mm-hmm.
A. Mm-hmm, yes.
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and six months later he decided, yes. That's one. My father saw
Nicholas Nickleby in London and thought it was something that may
never make money, but yet, America public should see it and it
did come to New York and it was a masterpiece. I have approached
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certain artists to ask, to see if their catalog might be
available to make a musical. Or certain books that might be
interesting to make a play or musical so it really spans from
finding something you really like to creating something you
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really like.
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Q. Okay. And have you done musicals?
A. Yes. ae
Q. Okay. Do you remember any of the names of the musicals?
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A. On Your Feet.
A. It is.
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Q. Okay. So now, did there come a time in 2008 when you were
approached to do a Michael Jackson themed Broadway show?
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A. Correct.
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Q. And who contacted you?
A. Peter Lopez.
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Q. And who is Peter Lopez?
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A. He was the attorney for Michael Jackson at the time.
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Q. Okay. Did you know him from before?
A. Yeah.
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Q. Okay. And what did he tell you when he called ... did he call
you?
A. Yes, he did.
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Jackson music?
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Q. Okay. Then what happened after that?
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A. Well, it eventually I met Michael, then we talked a little bit
about an idea and then nothing, basically. Nothing ever happened.
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Q. It didn't come to pass?
A. No.
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Q. Okay. Did you come to Los Angeles to discuss a possible
project for this, for a Broadway show?
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A. Yes.
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A. With?
A. Mm-hmm.
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Judge Holmes: Oh, you have to say yes or no, because we're on a
transcript.
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A. What did I say? I'm sorry.
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Judge Holmes: Uh-huh.
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Judge Holmes: Okay. ae
A. Yes.
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Ms Herbert:
Q. Did you come to a meeting at the Bel Air Hotel?
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A. Yes, I did.
Q. Okay. And did you work out a ... was Tohme Tohme at the
meeting?
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A. Eventually.
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and the witness?
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Judge Holmes: Yes, of course.
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facts as Exhibit 19-J, but I made two copies. Okay. Let the
record reflect that I have given a copy of Exhibit 19-J to the
witness and it is also up on the screen in front of you, as well
as up there on the large screen. Okay.
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Ms Herbert:
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A. Yes, I do.
Q. Okay. Okay. Can you look at the page that's numbered Page 10?
A. Mm-hmm.
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A. It is, yes.
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Q. Okay. Is this the deal memorandum that reflects the deal that
you were working on with Michael Jackson?
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A. Yes.
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Q. Okay. Now, I believe that when we met in New York, you and I,
last June you said something about every show has an elevator
pitch. Do you remember saying that?
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A. I don't. I don't.
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Q. Do you believe that about shows?
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A. Well, I do believe that one should talk to a neighbor or
someone to try to explain to them to them what the show is about,
because that gives you a pretty decent sign if they're interested
in it or not.
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Q. Okay. Do you remember if you did ... if you had an elevator
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pitch for ...
A. Mm-hmm.
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Q. And just take a minute to look it over. Okay. So did this
agreement ... are you done looking at that?
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A. No.
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A. Okay.
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Q. All right. So did the deal memorandum provide for Michael
Jackson to be listed in the credits of a Broadway play?
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A. Sure.
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Q. Okay.
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A. Yes.
Q. And did it also require the use of the moniker, The King of
Pop?
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Q. Well. Okay. Let me rephrase that. Did the press ... was it
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required that all press releases include the moniker, The King of
Pop?
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Q. Okay. And at the time that you were talking to Michael
Jackson, Tohme Tohme, Peter Lopez, and signing this deal
memorandum, did you have any concerns about Michael Jackson's
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image?
A. No.
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Q. And at the time you entered into this deal memorandum were you
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concerned about the allegations that had been made against
Michael Jackson?
A. No.
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Q. Why not?
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A. He has a great catalog so, you know, that didn't bother me.
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know ...
A. No. No.
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Q. ... whether ... Okay. What about something like Hamilton? Were
you involved at all in ...
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A. Congratulations.
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Q. ... Hamilton? I'm sorry. I didn't mean to cut off your answer.
What did you say?
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A. No, no. With ... we were just an investor and it's our theater
it's in. But I didn't know what it was going to be.
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Q. So there was no guarantees that Hamilton was going to be a
success? ae
A. Look, no guarantees. My father, again, would say, and I'll
stop quoting him, you know, "How do you become a millionaire in
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the theater business? You start off as a billionaire."
A. No.
Q. At the time that you entered into this deal memorandum, if you
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A. Yeah. There was a Michael Jackson musical that was going on.
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Q. So that didn't deter you?
A. No.
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Q. Okay. All right. Now did any complications arise as you
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started to consider this deal? Was there any problems with Rod
Temperton or - -
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A. No. We were just in the negotiation process with them, which,
you know, takes a while to negotiate deals.
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Q. Okay. So what happened after that? Did the deal proceed, did
it get consummated?
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A. After what?
A. Correct.
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A. Yes.
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Q. Okay. Did you discuss it with Michael Jackson's estate at all?
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A. Not really. I mean, no.
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Michael Jackson Broadway show?
A. lot of this I don't remember any more. It's just kind of,
you know, gone, off the radar.
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A. I think that was our attorney at the time, and I don't recall
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exactly what the lawsuit was about ... power .. of attorney Neil
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Papiano.
Q. Would you have seen the complaint, the legal doc ... would you
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Ms Herbert: May I approach?
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Judge Holmes: You may.
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Exhibit 311-J to the witness and to the Court. I believe it's in
the stipulation ... in the first stipulation of facts.
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Ms Herbert:
particular complaint?
A. Sure. Yes.
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A. Let's hear it.
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Mr. Weitzman: No.
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Judge Holmes: You ask the questions, Mr. Weitzman.
CROSS-EXAMINATION
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Mr. Weitzman: ae
Q. So this Broadway deal memorandum for a potential Broadway play
was for a musical states .. play based on Michael Jackson and
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others catalogs in music, correct?
A. Correct.
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A. Likewise.
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Judge Holmes: This was going to be like the Mamma Mia where you
have the ABBA songs but not the ABBA performers?
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A. Correct.
by the way?
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A. No, no. Did you see it?
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Judge Holmes: Finest musical about tax on Broadway in the last 50
years.
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A. I'm using the director in something ... John Rando.
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Judge Holmes: Oh.
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Judge Holmes: Very much. It's excise tax, not income tax. Any
redirect?
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Ms Herbert: Give me just a moment.
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Judge Holmes: You can just leave them there. Ms. Wood will take
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Judge Holmes: Oh, he is very excused. Honor. Thanks again
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