Documents courtesy of:

http://ReachingForTheTippingPoint.net
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2- 28-11 Desmond, et al . vs . Narconon, et al.
IN THE STATE COURT OF DEKALB COUNTY
STATE OF GEORGIA
PATRICK C. DESMOND AND MARY
C. DESMOND, INDIVIDUALLY,
AND MARY C. DESMOND, AS
ADMI NISTRATRIX OF THE
ESTATE OF PATRICK C. DESMOND, )
)
Plainti ffs, )
) CIVIL ACTION FILE
vs . )
) NO . 10A28641-2
NARCONON OF GEORGIA, INC., )
DELGADO DEVELOPMENT, INC. , )
SOVEREIGN PLACE, LLC, )
SOVEREIGN PLACE APARTMENT )
MANAGEMENT, INC. , LISA )
CAROLI NA ROBBINS, M. D., THE )
ROBBINS GROUP, INC., AND )
NARCONON INTERNATIONAL, )
)
De fendants . )
30(b) (6) Video Deposition of SOVEREIGN
PLACE, LLC, Deposition Designee : ELIZABETH E.
BACKUS, taken on behalf of the Plaintiffs ,
pursuant to the stipul ations contained
herein, before Kim B. Tayl or, CCR No. B-1792,
at 3490 Piedmont Road, Suite 1210 , At lanta,
Georgia, on February 28 , 2011, commencing at
the hour of 1 0 : 25 a . m.
Q & A REPORTING SERVICES, INC.
Certified Court Reporter
2165 Fairhaven Circle, NE
1.' f
Atlanta, Georgia
(404) 233- 3300 F-ax (404)233- 1530
')fl'') I' l.1\ 10: 48
--- -..... . --. ..... .... -- - . - . ..-....
Q&A REPORTING SERVICES, 0
404 . 233 . 3300 **
..... :j'{ : __
''f"rl\<
Page 1
1
I
I'

I
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS
1 APPEARANCES OF COUNSEL:
2
3
4
5
ON BEHALF OF THE PLAINTIFFS:
LAURA H. SPIRES, ESQ.
JED D. MANTON, ESQ.
Hams Penny Lowry, LLP
400 Colony Square
1201 Peachtree Street,J'.'E
Suite 900
Atlanta, GA 30361
(404)961-7650
fax: (404)961-7651
10 ON BEHALF OF THE DEFENDANTS NARCONON OF GEORGIA
and NARCONON INTERNATIONAL:
11
KATI!RYN S. WHffiOCK ESQ.
12 Drew, Eckl & Farnham, LLP
880 West Peachtree Street
13 P.O. Box 7600
Atlanta, GA 30357-0600
14 (404) 885-1400
15
16 ON BEHALF OF THE DEFENDANT DELGADO DEVELOPMENT:
17 :MELANIE C. EYRE, ESQ.
Belli, Wei!, Grozhean & Davis
18 Suite 200
8010 Roswell Road
19 Atlanta, GA 30350
(770) 993-3300
20
21 ON BEHALF OF THE DEFENDANTS SOVEREIGN PLACE and
SOVEREIGN PLACE APARTMENT MANAGEMENT:
22
SHANE E. BARTLETT, ESQ.
23 Webb, Zsclmnke, Heary & Dikeman, LLP
Suite 1210, One Securities Centre
2 4 3490 Piedmont Road
Atlanta, GA 30305
25 (404) 264-1080
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
ON BEHALF OF 11-IE DEFENDANTS LISA CAROLINA
ROBBINS, M.D. and THE ROBBINS GROUP, INC.:
JEFF N. AMASON, ESQ.
Weinberg, Wheeler, Hudgins, Guun & Dial, LLC
Suite2400
3344 Peachtree Road
Atlanta, GA 30326
(404) 876-2700
ALSO PRESENT:
Gabrielle Esquivel, Videographer
Legal Technology Services.
Suite A, 4470 Atlanta Highway
Loganville, GA 30052
(770) 554-1633
. -- --
2-28-11 Desmond, et al. vs. Narconon, et al.
Page 2
1
2
3
4
5
6
7
8
9
10
11
12
1 3
14
15
16
17
18
19
20
21
22
23
24
25
Page 3
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
- -- ---
INDEX TO TESTIMONY
By Ms. Spires ................................... 7
INDEX TO EXHIBITS
PLAINTIFFS'
EXHIBIT DESCRIPTION PAGE
1
2
3
4
5
6
7
8
Plaintiffs' Notice to take 8
30(b)(6) Deposition of
Sovereign Place, LLC
Apartment Rental Contracts, 17
Sovereign Place,
6-12-07, 11-1-07,6-26-07,
6-12-07. 11-1-07
Apartment Rental Contract. 23
Sovereign Place,
6-1-08
Rent Roll with Lease Charges, 25
One Sovereign Place, as of
6-15-08
Gross Potential Rent, 30
One Sovereign Place,
as of 6-30-08
Rent Roll, One Sovereign 32
Place, as of 6-15-08
Unposted Ret:cipt Batch, 33
Yardi Systems, attachments,
Batch #88264
Apartment Rental Contract, 40
One Sovereign Place,
11-3-07
---
(1HE FOLLOWING TRANSCRIPT CONTAINS QUOTED
MATERIAL; SUCH MATERIAL IS REPRODUCED AS
READ OR SPOKEN.)
(IN 1HE FOLLOWING lRANSCRJPT, A DASH [- ]
IS USED TO INDICATE AN UNINIENTIONAL OR
PURPOSEFUL INIERRUPTION OF A SENTENCE; AN
ELLIPSIS [ ... ]IS USED TO INDICATE HALTING
Page 4
Page 5
SPEECH OR AN UNFINISHED SENTENCE IN DIALOGUE,
OR AN OMISSION OF WORD(S) WHEN READING WRIITEN
MATERIAL.)
(Thereupon, the court reporter disclosed that she
was there on behalf of Q & A Reporting Services, Inc.
In compliance v.ith Article lO.B of the Rules and
Regulations of the Board of Court Reporting of the
Judicial Council of Georgia and O.C.G.A. 15-l4-37(a)
and (b), the court reporter discloses that she was
retained by Laura H. Spires, to take down the
proceedings. Q & A Reporting Services, lnc., will
charge the attomey(s) the usual and custom:uy rate
for the transcript and will be paid by the attomey(s)
upon his/her( their) receipt of the transcript.)
- - - - . - . ~ -
2 (Pages 2 to 5)
Q&A REPORTING SERVICES, INC.
404.233.3300 ** JFischer@QAReport i ng.com
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2-28- 11 Desmond, e t a l. vs . Narconon, et al.
Page 6
1 (Off the video record)
2 (At this time the videographer,
3 GABRIELLE ESQUIVEL, was duly
4 swom to videotape the following
5 proceedings.)
6 (A discussion was held off the
7 record.)
8 (At this t ime Mr. Amason was not
9 present in the deposition room.)
0 (On the video record)
1 THE VIDEOGRAPHER: We now begin this
2 videotape deposition on Februmy 28th,
3 2011. The time on the video monitor is
4 10:28 a.m.
5 MS. SPIRES: This is a 30(b )( 6)
6 deposition of Sovereign Place, LLC, taken
7 by counsel for the plaintiffs.
8 The deposition is being taken for all
9 purposes allowed under the Georgia Civil
D 0 Practice Act, and it's taken pursuant to
P 1 notice a11d agreement of com1sel.
D 2 We have agreed that all objections
P 3 except to the form will be reserved until
P 4 the fust use of the deposition?
D 5 MR. BARTLETT: That's agreeable.
Pa ge 7
1 MS. EYRE: That's agreeable. Thank
2 you.
3 MS. SPIRES: Will you swear the
4 witness, please.
5 ELIZABETH E. BACKUS,
6 having been first duly sworn, was examined and
7 testified as follows:
8 EXAMINATION
9 BYMS. SPIRES:
0 Q. Would you please state yom name for the
1 record.
2 A. My narne is Elizabeth Backus.
3 Q. Ms. Backus, my name is Laura Spires. I'm
4 here, as I said earlier, on behalf of the plaintiffs.
5 And have you ever given your deposition
6 before?
7 A. Have I given a deposition?
8 Q. Yes--
9 A. Yes, I have.
D 0 Q. Have you been the 30(b)(6) witness for
D 1 Sovereign Place before?
P2 A. No.
~ 3 Q. Okay. You understand that this is a
P 4 corporate representative deposition and that you've
D 5 been designated by Sovereign Place as the person with
~ - . . . . . _ ~ ... . ...,... - . - -
Page 8 1
1 the most knowledge regarding several topics that we'll
2 discuss today?
3 A. Yes.
4 Q. I'm going to hand you what is Plaintiffs'
5 Exhibit 1 which is the 30(b)(6) notice.
6 (Plaintiffs' Exhibit 1 was marked
7 for identification.)
8 BY MS. SPIRES:
9 Q. Have you ever seen tllis docmnent before?
0 A. Yes.
1 Q. Okay. And you understm1d iliat you're
2 testifYing as Sovereign Place's representative today.
3 We have identified several topics that we
4 wm1ted to talk with you about today. I'm just going
5 to go through them, if that's all right, just to make
6 sure that you are aware of each of tl1e identified
7 topics.
8 If you could look through on Page 2 with me,
9 No. 1, the first topic is June 2nd, 2007, apmtment
~ 0 rental contract for Discovery Path or Maria Delgado
~ 1 for Unit Z1 at Sovereign Place.
~ 2 Do you understand that you're the designated
D 3 person to speak on that topic?
D4 A. Yes.
P 5 Q. Okay. And topic 2 is the November 1st, 2007,
Page 9
1 apartment rental contract for Mmia Delgado or II
2 Discovery Patl1, Unit Z2. 11
3 Do you understand that you are the person 1
4 designated to testifY on that --
5 A. Yes.
6 Q. - matter.
7 The June 26th, 2007, apartment rental
8 contract for Maria Delgado, Unit Z3.
9 Do you understand that you are the person
0 called to testify on that topic?
1 A. Yes.
2 Q. And I guess for the pmposes of time, I'll
3 just go through the rest of them. And if there is one
4 tl1at you're not familiar with, if you would please
5 just specifY which one.
6 Okay. No.4, is the June 12th, 2007,
7 apartment rental contract for Discovery Path or Maria
8 Delgado, Unit Z5.
9 No. 5, the June 1st, 2008, apartment rental
:> 0 contract for Maria Delgado, Unit Z4.
:> 1 Topic No. 6, the November 3rd, 2007,
:> 2 apartment rental contract for Maria Delgado, Unit Z6.
i) 3 Any other apartment rental contracts for i 1
> 4 Maria Delgado or Discovery Path. II
~ 5 No. 8, any agreements or contracts that
- -- _ ... - -- - ~ - - - _ ...... _
3 (Pag e s 6 to 9)
Q&A REPORTING SERVICES, INC.
404 . 233 . 3300 ** J Fische r@QARe p ort ing . c om
http://ReachingFForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2-28- 11 Desmond, et al . vs . Narconon, et a l .
Page 10
1 reference any relationship that Sovereign Place has 1
2 had with Delgado Development and/or Narconon of 2
3 Georgia, Inc., or Maria Delgado. 3
4 No.9, all Sovereign Place documents, checks, 4
5 and ledgers. 5
6 And No. 10, the terms and conditions of 6
7 Sovereign Place, LLC, leases. 7
8 Are you able to testifY to each of those 8
9 topics? 9
0 A. Yes. 0
1 Q. Okay. Explain to me your role with Sovereign 1
2 Place. Your title -- let me start with your title. 2
3 What's your title at Sovereign Place? 3
4 A. Until a few weeks I was the regional manager 4
5 overseeing the property One Sovereign Place. We are a 5
6 third-party managing agent. 6
7 Q. Okay. What's the name of that third party 7
8 managing agent? 8
9 A. Southeastern Realty Advisors. 9
/ 0 Q. And do you manage several properties? / 0
/1 A. I do. /1
/2 Q. Okay. And until two weeks ago. Are you no / 2
/3 longer with that company anymore? / 3
7 4 A. I'm still with the company. That particular 7 4
Z 5 property has transfened to another regional manager / 5
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
~ 0
1?1
~ 2
1:> 3
124
~ 5
within our company. So it's just changed to a
different portfolio of managing.
Page 11
Q. Okay. And explain to me as regional mar1ager
just what your duties and- were as to Southeast
Realty Advisor.
A. Our managing agent duties are in regards to
the financial repmting, overseeing the day-to-day
operations of the prope1ty, and overseeing the staff
in place.
The staff in place would be our employees.
So we employ the staff, oversee them, the property, as
well as the financial reporting.
Q. Okay. Do you have-- I'm going to strut out
with just some general knowledge or general
information about One Sovereign Place and just ask you
questions about specific patties.
But in general, do you have any specific
knowledge about Narconon or Delgado Development
outside of this lawsuit? Any personal knowledge --
A. No, I have no personal knowledge.
Q. Okay. Do you have any knowledge of Maria
Delgado or anyone acting on her behalf or Delgado
Development or Discovery Path as a tenant of One
Sovereign Place?
MS. EYRE: Object to the form.
- - -- - ---
. ~ - --
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
~ 0
171
172
P3
174
~ 5
---
Page 12 1]
MR. BARTLETT: Sarne objection. You 11
carl answer.
A. I do not.
BY MS. SPIRES:
Q. Okay. Do you have any knowledge of any
contact made by Mary Rieser or any other Narconon
agent or representative to One Sovereign Place?
MR. BARTLETT: Object to the fonn.
MS. WHITLOCK: I'm sony, I didn't
hear the question. Can you repeat it?
BY MS. SPIRES:
Q. The question was, do you have any knowledge
of any contact made by Mary Rieser or any other
Narconon representative to One Sovereign Place?
A. No.
MS. WHITLOCK: Object to the form.
BYMS. SPIRES:
Q. Okay. Do you have any independent knowledge
of Patrick Desmond or any Narconon resident who lived
at ar1y time in the past at Sovereign Place apartments?
MS. WHITLOCK: Object to the form.
A. (Witness shakes head negatively.)
MR. BARTLETT: I'm sorry, you need to
verbalize your answer.
A. Oh, no, I do not. I'm sony.
BY MS. SPIRES:
Page 13
Q. Okay. Yeah, but-- since the -- for the sake
of the videographer, I should have said that at the
beginning. It's hrud to - we're used to nodding yes
or no. But if you could just say yes or no. Okay.
In general, could you give me the address of
the Sovereign Place aprutments? I know there are two
properties, correct? Or is there just the one on
Roswell Road?
A. Just the one on Roswell Road.
Q. And what's that address?
A. I don't physically know that address off the
top of my head.
Q. Would it be contained in the lease
agreement--
A. Yeah. Yeal1.
Q. Okay.
A. Sony.
Q. That's okay.
A. It's one of those things. You know how
you're getting there, but the actual physical nwnber I
do not remember.
Q. That's okay.
What were the general rules based on your
knowledge of the number of occupants per apartment?
-- - - - .. - ~
IJ
I!
ll
I ~
li
I!
4 (Pages 10 to 13)
Q&A REPORTING SERVICES, INC .
404.233.3300 ** JFischer@QAReporting.com
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2-28-11 Desmond , et al . v s. Narconon, et al.
Page 14
1 MR. BARTLETT: Object to the fonn.
2 MS. SPIRES: Could you specify what
3 was wrong?
4 MR. BARTLETT: Just vague in regards
5 to general rules. I don't think it's
6 specific enough.
7 MS. SPIRES: Okay. I'll be more
8 specific.
9 BYMS. SPIRES:
0 Q. Let me just give you an example.
1 Ifthere's a three-bedroom apartment, do you
2 have -- is there a rule regarding the number of
3 occupants that is allowed to reside for -- you know,
4 reside, not being guests coming to visit -- but live
. 5 in that aprutrnent? Is there a specific rule?
6 A. There is. The ru1e has changed over the
7 years. I think currently the rule is two heartbeats
8 per bedroom is a very loose interpretation probably.
9 Q. Okay. What were Narconon -- I mean -- excuse
::> 0 me. I apologize. Strike that -- Sovereign's rules
::> 1 about subletting apartments?
::> 2 And let me back up a little bit. The t ime
::> 3 periods that we're here today to talk about rue
/4 September, 2007, to February, 2008. That's time
::> 5 period one.
Page 15
1 And then May, 2008, to June, 2008, will be
2 time period two.
3 So during those time periods -- and in
4 general, it might not have changed and you wouldn't
5 know -- but what are the rules about tenru1ts
6 subletting the apartment?
7 A. The rules would be based on what's in the
8 lease document that was signed by those residents at
9 that time.
0 So the current lease agreement that they had
1 signed -- you know, the verbiage on those lease
2 agreements does change as they're reinterpreted and
3 re-analyzed yeruly.
4 So what whatever was in the lease agreement
5 that they signed would have been the upholding law
6 surrounding the subletting or that type of thing.
7 Q. Okay. So if a provision of the lease said
8 that there was no subletting, then no subletting --
9 Sovereign did not permit subletting of that apmtrnent?
/ 0 A. We would uphold whoever the t enant was to
~ 1 sign that lease to understand that. And at such point
~ 2 it was definitely proven, then of course it could be
~ 3 taken care of.
Page 16
1 provisions for everyone.
2 Q. Okay. So Sovereign Place-- if there was a
3 lease in place that did not allow for subletting, how
4 would Sovereign Place enforce a no subletting
5 provision?
6 A. The only way that that situation could come
7 to fiuition would be that the management would have to
8 have verifiable proof that that's what was going on.
9 In other words, there would have to be
0 contact with other folks determined to be living in
1 that unit.
2 And then there is, of course, the vety loose
3 interpretation of what's living, what's visiting, and
4 that kind of thing .
5 So it's somewhat difficult to enforce just
6 because of, you know .. .
7 Q. Sure. Okay. Was there security on the
8 premises during these time periods?
9 MR. BARTLETT: Object to the fonn.
::> 0 MS. SPIRES: Can I specify?
? 1 MR .. BARTLETT: Yes.
::> 2 MS. SPIRES: Do you mean what--
/3 MR. BARTLETT: Security in what sense.
2 4 BY MS. SPIRES:
? 5 Q. Okay. Did you have a third-pruty contractor
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
or you paid an individual on a regular basis to
perfonn security patrols of the premises?
A. No, not security patrol.
Page 17
Q. Okay. Did you have an individual who lived
in an apartment on t he property who was r esponsible
for monitoring ru1d securing the premises?
A. I don't know at that time if they did or not.
Q. Okay. I'm going to go through now ru1d just
have you educate me on some documents. This will be
Plaintiffs' Exhibit No. 2.
(Plaintiffs' Exhibit 2 was marked
for ident ification.)
MS. SPIRES: Actually, I'm going to
take those back. That's not Plaintiffs'
Exhibit No. 2. That's not a complete copy
of Plaint iffs' Exhibit 2. I apologize. If
I can take that sticker. Do you want me to
try to take it?
BYMS. SPIRES:
Q. Okay. This is Plaintiffs' Exhibit No.2. I
separated them out by what appears to me to be
individual leases for your convenience, but I think I
only did that for the witness.
!
i
I!
I
I
~ 4 But it's the srune lease agreement that
~ 5 everyone would have signed during that time. So same
/0
/1
/2
/3
/4
/5
Could you identify to me j ust in general what
tllis group of ~ ~ u m e ~ ~ - ~ ~ ? .. _ ___ ~ __ I
5 (Pages 14 to 17)
Q&A REPORTING SERVICES , INC .
404.233 . 3300 ** JFischer@QAReporting . corn
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2-28-11 Desmond, et al. vs. Narconon, et al.
Page 18
1 A. They are four lease documents. And then this
2 pruticular group of documents here for Unit Z6 is some
3 other addendums that the resident signed, but I don't
4 see a copy of a lease with tlus one.
5 Q. Okay. Let's start, if we could, with this
6 document that says lease date June 12th, 2007.
7 A. Uh-huh.
8 Q. Could you identify this document for me?
9 A. It's a lease document entered into between
0 Sovereign Place, LLC, for apartment No. Zl. Resident
1 listed as Discovery Path, Maria Delgado.
2 Q. Okay. And what's the initial term oftlus
3 lease?
4 A. Twelve months and 29 days.
5 Q. And the rent amount?
6 A. Eight ninety-nine-- yeah, 899. There was no
7 concession.
8 Q. What do you mean by concession?
9 A. Some lease documents will include additional
::> 0 addendum related to a concession offer at either one
::> 1 time or monthly that would be listed either in the
I 2 special stipulations on Page 5 or in a separate
3 addendum.
4 This contract does not have any concession.
I 5 It's just simply the rent of 899 per month.
Page 19
Page 20
1 Rent is 869.
2 Q. And does it look like -- were there any
3 concessions or addendums t hat would have made the rent
4 any different tl1ru1 869?
5 A. No.
6 Q. Okay. And is this a true and accurate copy
7 of a Sovereign Place lease to Maria Delgado for Unit
8 Z2?
9 A. Yes.
0 Q. Okay. And we can move onto the next one,
1 whichever one --
2 A. Okay. The next one is for Unit Z3. Lease
3 entered into between Sovereign Place, LLC, as tl1e
4 ovmer. Maria Delgado as the resident. Rent amount --
5 MS. WlillLOCK: What page are you on?
6 A. -- 879.
7
8
9

121
122

?4
?5
MS. EYRE: They're kind of not marked.
MS. SPIRES: Yes. They're not --
MS. EYRE: Well, they kind of are.
This is - I think the one you're talking
about now starts at 7601.
MS. SPIRES: Yes, you're conect.
MS. EYRE: Keep going down, Kate,
there is this long number at the bottom.
MS. WHITLOCK: Over here on the left.
Page 21
1 Q. Okay. And this is a true and accurate copy 1 MS. SPIRES: It's this one.
2 of the June 12th, 2007, lease for Unit Zl? 2 MS. EYRE: 7601.
3 A. It is a full lease, all five pages. 3 MS. WHITLOCK: I got it. Thank you.
4 Q. And it's an accurate representation of the 4 BY MS. SPIRES:
5 Sovereign Place lease? 5 Q. Ms. Backus, and you were -- could we strut
6 A. Uh-huh. 6 over on tlus one.
7 Q. Okay. 7 We are looking at an apartment rental
8 MR. BARTLETT: You need to verbalize 8 contract dated June 26, 2007, for apartment No. Z3; is
9 your answers. 9 that correct? Is that what you're looking at?
0 A. Yes. I'm SOlTy. 0 A. Yes.
1 BY MS. SPIRES: 1 Q. Okay. And if I wanted to know the rent
2 Q. That's okay. Okay. 2 amount for this contract, I would look at--
3 Let's move on to the next-- whatever the 3 A. Page 1, No. 3, rent runount of 879.
4 next document you have, we' ll go in your order to keep 4 Q. Okay: And there are no -- anything that
5 it easier on you. 5 would make the rent any different, correct?
6 A. All right. The next document is for Unit Z2. 6 A. Correct.
7 Q. Okay. 7 Q. Okay. And is tlus a true and accurate copy
8 A. Entered into between Sovereign Place, LLC, as 8 of the lease agreement between Sovereign Place and
9 the owner, and Maria Delgado as the resident. 9 Maria Delgado for Unit Z3 dated June 26th, 2007, for a
::> 0 (At this time Mr. Amason is i2 0 12-month tenn?
::> 1 present in the deposition room.) I:> 1 A. Yes.
1
?2 BYMS. SPIRES: Q. Okay. Wecanmoveontowhicheveroneyou --
::> 3 Q. Can you tell me where you would look in this i2 3 A. The next is for Unit Z5 dated June 12th, ll
4 document to fi nd the rent amount? 4 2007, entered into between Sovereign Place, LLC, as
L- 1...,5 .... .-.-.-..,.,A- _

::-:- .. .5........, _ :-t--:h=-e_o_wn.,... _ M.....,..an __a_D_e_Ig :::.a_d...,.. o_as ___ _

6 (Pages 18 to 21)
Q&A REPORTING SERVICES, INC .
404.233.3300 ** JFi scher@QAReporting.com
http://ReachingForTheTippingPoint.net
(30(b) (6) ELI ZABETH E. BACKUS 2-28-11 Desmond, et al. vs . Narconon, et al.
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
20
tn
t:> 2
23

l/5
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
PO
1:>1

1/ 3
1/4
1/ 5
Page 22
resident. The rent amount, 859.
Q. Okay.
A. l11e last document that I have is addendwn-
Q. Let me back up j ust real quick. TI1ank you
for going through that.
But this June 12th, 2007, document that you
just had-- you were just talking about, is this a
true and accurate representation - or true and
accurate copy of the apartment rental contract between
Sovereign Place and Discovety Path, Maria Delgado, for
apartment No. Z5 for a 12-month term starting June
12th, 2007?
A. Yes.
Q. Okay. And then this last document looks like
we're missing the actual lease, but we have the
addendum.
A. Uh-huh. CoiTect.
Q. Okay. So ifl needed to-- if I wanted to
see the actual lease agreement, it would contain the
same lease provision as the other documents that you
have explained, the same location and would be -- I
mean I would still be looking at the same -- I guess
-- strike that.
Let me ask my question again. Ifl had this
lease agreement, would I be looking still to Paragraph
Page 23
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
t>o
121
l/2
l/3
/4
5
3 for the rent amount? 1
A. Yes. But you- yes, if you had the actual 2
lease document. 3
Q. Okay. Okay. I move now-- and this is 4
Plaintiffs' Exhibit No. 3. Okay. 5
A. All light Here's 2. 6
(Plaintiffs' Exhibit 3 was marked 7
for identification.) 8
BY MS. SPIRES: 9
Q. Okay. And can you explain to me what this 0
document i s? 1
A. Lease agreement for Unit Z4 entered into June 2
1st, 2008. Sovereign Place, LLC, is the owner. Maria 3
Delgado as the resident. 4
MR. BARTLETT: Let me intelject here 5
just a moment. 6
There .is several pages in Exhibit 3. 7
I just want to make sure it's clear on the 8
record that she's not identifying Exhibit 3 9
as a lease agreement in its entirety. 0
MS. SPIRES: Right.

MR. BARTLETT: Because there are other
pages here that appear to be something
other than a lease agreement.
MS. SPIRES: Well, my understanding of Q 5
Page 24 "'
it is these are addendum to the actual
lease agreement; is that correct?
MR. BARTLETT: And just so that that's
specified on the record.
MS. SPIRES: Sure. Sure.
BY MS. SPIRES:
Q. So this is -- is this a true and accurate
copy of the lease agreement and all addendun1 attached
to the lease agreement ?
A. I didn't answer that for these others. I
have not looked through here to see if all of the
addendun1s are attached.
I can verify that this is the actual lease
agreement. I can't necessarily verify that all the
other addendums are intact without going through the
checklist.
Q. Okay. And the Paragraph 3 of Page I of the
apartment rental contract says that rent - this is
the conect rent amount for this unit; is that
correct?
A. Correct. States the rent amount for this
unit is 909.
Q. Okay. Okay. Your attomey produced to us
some documents that were responsive to a request that
we sent, and I'm just going to have you look through
Page 25
them and explain to me what they are.
And there is kind of-- this is -- there is
kind of two parts to this question. I think this is
the most efficient way to do it.
If you could just identify what the document
is, and then explain to me how I would look through
tins document to see who is making payment on a
particular unit. Is that clear? And we can j ust --
we can talk through it --
A. Yes.
Q. -- but I think that's the most efficient way.
And we can go --just go through it together. So this
will be Plaintiffs' Exhibit No. 4.
(Plaintiffs' Exhibit 4 was marked
for ident ification.)
BY MS. SPIRES:
Q. All right.
A. Exhibit No. 4 is a rent roU including lease
charges.
Q. Okay. Can you tell me what a rent roll with
lease charges is?
A. This is dated as of June 15th, 2008. This
rent roll would produce a listing of one leaseholder,
a wlit number, and then the rent amount, and any
utility amount for each resident, and a move-in date,
1:
IJ
IJ
-- - . -
- - -
-- -- ___ _ .... ... ... - - -
-- - ---- -- - - ... - - - -.J.
7 (Pages 22 to 25)
Q&A REPORTING SERVICES , I NC .
404 . 233 . 3300 ** JFischer@QAReporting . com
http://ReachingForTheTippingPoin int.net
(30(b) (6) ELIZABETH E. BACKUS 2-28-11 Desmond, et al. vs. Narconon, et al.
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9

1/1


1/4

1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
PO
Dl
P2

1/4
P5

Page 26
a current lease expiration date. And then if they
have given notice to move out, would also cones pond
to a move-out date.
Q. So my -- ifl understood you, this is kind
of-- as of June 15th, 2008, this is a snapshot of--
A. As of that date, this list -- a leaseholder,
a unit number, a lease rent amount, possibly a utility
charge, a move-in date, and a lease expiration date.
And also move-outs showing in our system on that date.
Q. Okay. Can you tell me who maintains this
rent roll with lease charges?
A. The rent roll is maintained through a
property management based software system called
Yardi.
Q. Okay.
A. Daily input is provided by office staff
on-site.
Q. Is that a daily task of office staff daily,
or weekly, or routine task?
A. Daily, weekly, or routine, depending on
amount of activity.
Q. Okay. Let's look through this document
together and we'll get through it quickly. I'm
flipping through Page 2. Okay.
On Page 2 down about tluee-quarters of the
Page
page it's Unit C3. Shows the name Maria Delgado.
Is this the name of the tenant-- would this
be a representation of the name of tl1e tenant on tl1e
lease?
A. Yes.
Q. Okay. And tl1at's showing a rent payment of?
A. It's not showing a rent payment. It's
showing a rent amount in the system, most likely the
leased amount. This does not verify cuneut rent
paid. It verifies a leaseholder and a leased rent
amount.
Q. Okay. So that could adjust if they have
stayed longer than a year or their lease -- if they
make changes in their lease, is that--
A. Conect.
Q. Okay. And I just want to make sure I am
clear.
The resident deposit, that shows the amount
that they deposited when they moved in the residence
the first time?
A. It could be a deposit for the apartment. It
could be a pet deposit It could be a key deposit.
Any deposit that's charged to deposit would show up
there. So it's any number of deposits that could show
in those items.
27
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
/Q
/1

b


1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
?o
?1
1/2
?3
24
?5
Page 28
Q. Okay. And the move-in date would be-- how
would that be detennined?
A. The move-in date is listed on the column for
move-in date. That's not necessarily the current
lease in place. That's the date that resident moved
into that unit.
Q. Okay. And that's the same for the move-out
date. That shows the -- that's the date that the
staff documented that that resident moved out of the
premises?
A. Conect.
Q. Okay. And the lease expiration is
self-explanatmy -- I'm assuming it's
self-explanatmy. It's the date that the lease
expired?
A. It's the date that the cunent lease in the
system is set to expire.
Q. Okay. Thank you. Okay. We can move on to
Page 3- Page 4.
(A discussion was held off the
record.)
BY MS. SPIRES:
Q. Okay. I have a question on-- back-- if we
I
can go back to Page 2.
This is a snapshot as of June 15th, 2008. I
Page
29
Back to RC3 unjt with Maria Delgado as the name listed
on the lease, how would the move-out date be
detennined on September 1st, 20 1 0, based on a June,
2008, analysis?
MS. EYRE: Object to the form ofthe
question.
BY MS. SPIRES:
Q. Okay.
A. 111is rent roll -- if you look in the bottom
right-hand comer, tlus rent roll was generated out of
our property management software system on December
8th, 2010.
The date used to reference -- to search the
data was June 15th, 2008.
So this was a snapshot of 2008, but it was
generated out of our system 2010. So that's why you
have move-out dates later.
Q. Okay.
A. Because tllis system updates as they move
out.
Q. Okay. Is this maintained-- is this document
system maintained on-- just on One Sovereign -- on
Sovereign Place premises, do you, as your management
company, actually receive these updates periodically?
We _ _____ __ _ ____ ]
8 (Pages 26 to 29)
Q&A REPORTING SERVICES, INC.
404.233.3300 ** JFischer@QAReporting.corn
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2-28-11 Desmond, et al. vs. Narconon, et al .
Page 3 0 Page 32
1 Q. Okay.
1 you could just -- can you tell me if this is a true
2 A. This is a software based system that you can 2 and accurate copy of the rent roll with lease charges
3 sign in. And depending on your access, be able to
3 as of December 8th, 201 0?
4 generate any amount of reports within your access. 4 A. Yes.
5 Q. Okay. Okay. Ifyou could go to Page 14 for 5 Q. Okay. We're probably repeating ourselves
6 me. For Uhit Zl, Z2, Z3, and Z4, has the name 6 here, but I just want to make sure we're clarifying
7 Discovery Path listed as the tenant. Is that --
7 which documents are which.
8 A. It's the leaseholder whose name the 8 But this is-- this will be Plaintiffs'
9 infonnation has been entered into the system under. 9 Exhibit No. 6. And this is just rent roll. There is
0 Q. Okay.
0 no -- no rent roll with lease charges. Can you tell
1 A. It's not necessarily the only leaseholder, 1 me what this is?
2 though.
2 A. This is a rent roll listing of residents as
3 Q. Okay. So it's the name of the person who -- 3 of date June 15th, 2008. This rent roll does not
4 or entity whose name was on the actual lease? 4 include leased charges. It's market rent charged.
5 A. It's the first name. 5 And tllis report was generated Tuesday, November 30th,
6 Q. Okay. 6 2010.
7 A. It pulls by the first entity listed. 7 Q. Okay. And is this input perfonned by staff
8 Q. Okay. Okay. And on Page 15, Z5 and Z6, 8 at Sovereign Place?
9 could you just tell me the names of the leaseholder 9 A. This report is generated based on input
P 0 there is also Discovery Path --
1/ 0 perfmmed by staff.
P 1 A. Discove1y Path, yes.
1/ 1 Q. Is it generated-- it's the same system tl1at
/ 2 Q. Okay. Okay. This will be number--
1/ 2 you refened to --
3 Plaintiffs' Exhibit No.5.
D3 A. Yes.
4 (Plaintiffs' Exhibit 5 was marked
b 4 Q. --it starts with a Y?
/ 5 for identification.) D5 A. Yes. Yardi.
Page 31
1 BY MS. SPIRES: 1
2 Q. Okay. Same thing. Could you just explain to 2
3 me what this document is? 3
4 A. This particular document is the gross 4
5 potential rent, which is tl1e rent calculated as the 5
6 possible total rent tl1at would be received as of the 6
7 close of the month for June, 2008. 7
8 So this is for June, 2008, and this 8
9 references gross possible rent. 9
0 And then also as the columns line across, any 0
1 differences to tl1at. It's a market rent. A leased 1
2 rent. A possible concession and several otl1er tllings. 2
3 Q. Okay. And is this a true and accurate copy 3
4 of tl1e gross potential rent printout for June, 2008? 4
5 A. As ofthe date of processing, which would 5
6 have been Monday, July 14th, yes. 6
7 Q. Okay. 7
8 A. So this was tl1e infmmation as of that date 8
9 for that calendar month. 9
~ 0 Q. Okay. And for resident's name, is tllis the b 0
~ 1 same as the document we were talking to that we have I:> 1
P 2 marked as Exllibit No.4? Is tlmt tl1e name of the b 2
~ 3 leaseholder, the first person on the lease? b 3
~ 4 A. Yes. t/ 4
P 5 Q. Okay. And going back to Exhibit No, 4, if b 5
Page 33
Q. Okay. And this is a true and accurate copy
of the rent roll as of June 15th, 2008, from November
30th, 2010?
A. It's an accurate copy as of November 30th,
2010, with a reference date of June 15th, 2008.
Q. Okay. Thanks.
MS. SPIRES: Okay. This will be I!
Plaintiffs' Exhibit No. 7. II
(Plaintiffs' Exhibit 7 was marked j
for identification.) l
1
BY MS. SPIRES: I
Q. Can you tell me what this document is?
A. It's a set of documents -- well, actually--
Q. Can you tell me what an unposted receipt
batch is?
A. In our property management software system
rents received will be input into a receipt batch. So
this is a listing of a particular group of rent
payments received.
However, these, at tl1e time, had not been
posted. Which means they have been entered as detail,
but they have not been posted totally through. So
they would not necessarily at that point show up on
the resident's ledger as a payment. This is the input
of the detail of that payment received.
- - - - - ~ ---- - - --- - -.... - - - - - - - ~ - . -- -- - ..____ - --- -- _............. -- - -- --- -- --
9 (Pages 30 to 33 )
Q&A REPORTING SERVICES, INC.
404 . 233. 3300 ** JFis c her@QARepo rting.com
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2- 28-11 Desmond, et al. vs . Narconon, et al.
Page 34
1 Q. Okay. Can you tell me just in general--
2 we'll just use this first page as an example to
3 reference the rest of the documents - but under name,
4 is this the name of the person making the payment?
5 A. It can be. It can also be a manual input.
6 In other words, when you post rent payments, you may
7 select a resident listed or you may select a payer.
8 But this is going to show you who the payer was.
9 Q. Okay. So this would show you the name -- I
0 just want to be clear. I think you explained it. I
1 just probably lost you somewhere.
2 But this name could be also the resident if
3 it was manually inputted by the staff?
4 A. The system allows you to select the resident
5 listed in the system as you would see on the rent
6 roll. Or you may manually input the name of the
7 payer.
8 Q. Okay.
9 A. So but this is going to show you who paid
~ 0 that particular month-- that particular event.
P 1 Q. Okay. So this is the payer?
D 2 A. This would be payer for that particular
P 3 payment and that particular month.
D 4 Q. Okay. So ifl wanted to see --let's use on
) 5 Page 2 of this first little set for Unit C3.
Page 35
1 If I wanted to see who paid for C3 in the
2 month of May, 2008, that would be-- is that where I
3 would find that Maria Delgado made that payment that
4 month?
5 A. Yes.
6 Q. Okay. Is there any other place I could find
7 where the payer who made payment on a particular unit
8 for a particular month? Or would this -- or would
9 tllis be accurate?
0 A. Tllis would be accurate. This is the only
1 rep01t that could be generated.
2 Q. Okay. And is this a true and accurate copy
3 of unposted receipt batch for, it looks like, the
4 month of May, 2008? And this will go -- the first
5 tluee pages oftllis, Exllibit No.7.
6 A. Yes, these are rent payments received for the
7 month of May, 2008, the ftrst three pages.
8 Q. Okay. And on the fourth page of this Exllibit
9 7, it looks like there is a copy of a check. Is it--
::> 0 does Sovereign Place maintain a copy of all checks
21 paid for rent?
/2 A. No.
::>3 Q. Okay. Is it just random that that would
2 4 be -- tl1at copies would be maintained or --
I;> 5 A. Initial -- the first week of the month when
Page 36 J
1 rents are due, depending on what month the prope1ties
2 management -- depending on what month the software is
3 running, they will make copies if they're receiving
4 checks and taking them to the bank, but have not
5 posted them to the system yet.
6 Q. Okay.
7 A. So in other words, if this prope1ty --this
8 is the beginning -- this is May 1st for this initial
9 check you're discussing, the property could have still
0 been operating their software in April. So they would
1 not post this until corresponding month.
2 So this is rent received, taken to the bank,
3 but not necessarily posted to their system yet.
4 Q. Okay. But if this was attached to an
5 unposted receipt batch, it would be --
6 A. It would correspond to the infmmation that
7 was then input into the system, yeah.
8 Q. Okay. And just moving forward. When you get
9 to the next unposted receipt batch for June, 2008,
~ 0 this is a true and accurate copy of the unposted
D 1 receipt batch for June, 2008?
~ 2 A. This is for batch No. 91340?
~ 3 Q. Yes.
D 4 A. Okay. Yes, this is a receipt batch for June,
~ 5 2008, month rent payments.
Page 37 I
1 Q. Okay. Let me flip almost all the way to the
2 end and get to our last unposted receipt batch. For
3 batch No. 95391, is this a true and accurate copy of
4 the unposted receipt batch for June, 2008?
5 A. Yes. Payment dates received June 30th, 2008,
6 for post month June, 2008.
7 Q. Okay. I'm going to refer back quickly to
8 Exhibits 2 and 3, which were the rental agreements.
9 Sorry. I'm getting a little out of order for you.
0 Is that -- are they 2 and 3 or -- yeah, 2 and
1 3. Okay. If you-- if we could just go through each
2 of these quickly, and you could point to me-- since
3 you said it kind of -- one thing we talked about
4 earlier was whether subletting was allowed at
5 Sovereign Place, but you said most -- it always
6 depended on the term of the lease agreement.
7 Could we go through each of these lease
8 agreements and could you j ust verify for me whether
9 subletting was or was not permitted? ~
D 0 A. Initial lease agreement reviewing cunently
? 1 is for Zl, Page 2 of the lease agreement, No.8, says
t2 2 resident may not sublease or assign the lease.
? 3 Q. Okay. And does it look like there were any
~ 4 addendurns made or amendments that would have allowed
? 5 subletting for Unit Zl under this lease?
~ = = - ~ ~ ~ - ~ . - ~ -~ - ~ .. ~ - - - ~ - - ~ - - ~ = = = = = = = - - ~ - ~ - ~ - ~ - - - - - ~ - ~ - - ~ - - - ~ = - -~ = = = = ~ = = ~ ~ - - = - - = = ~ = - - - ~ - - - = - ~ - ~ - - ~ = = = = - = - ~ ~ .J
10 (Pages 34 to 37)
Q&A REPORTING SERVICES, INC.
404 . 233 . 3300 ** JFischer@QAReport i ng. com
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2 - 28- 11 Desmond, e t al. vs . Narconon, et al .
Page 38 Page 40
1 A. No. 1 Paragraph 8 still correspond to the subletting
2 Q. Okay. If you could just tell me which-- 2 provision of the lease?
3 when you move on to the next lease, if you could just 3 A. Let me see if it's the same time frame. Yes,
4 let me know which one you're looking at so I could be 4 it should.
5 looking at it with you as - 5 Q. Okay. So if Paragraph 8 said -- Paragraph 8
6 A. 111is the lease agreement for Unit Z2. Once 6 would be where I would look to determine if there was
7 again it's Page 2 of this lease as well, No. 8, 7 subletting pennitted under this lease?
8 resident may not sublet or assign the lease. Let me 8 A. Yes.
9 make sure. 9 Q. And if we look forward, can you look through
0 Q. And I know you're looking for it, but I just 0 and see if there is anything that would vary whatever
1 want to be clear on the record that your -- my 1 that Paragraph 8 says?
2 question is, is there any addendum or amendment or any 2 A. Oh. Here's your lease agreement that goes
3 other provision added to the contract that would have 3 with -- here's your lease that goes with Z6. It's
4 allowed for subletting of this lease? 4 on-- so the missing lease agreement from Exhibit No.
5 A. No. 5 2 was found at the back of Exhibit No. 3.
6 Q. Okay. 6 Q. Okay. Let's mark that exhibit separately if
7 A. Are you ready for me to move on -- 7 that's okay.
8 Q. Youcanmoveon. 8 A. Okay.
9 A. Okay. Z3. 9 Q. We'll j ust mark it as -- are we on --
b 0 Q. No charge. 0 MR. BARTLETT: I think you're on 8.
b 1 A. Z3 is Page 2 as well, No. 8, resident may not / 1 BY MS. SPIRES:
b 2 sublet or assign the lease. /2 Q. 8. Okay.
b 3 Q. And tlus is -- I j ust want to put-- this is 3 MR. BARTLETT: So a pmtion of 2 and 3
b 4 --you're looking at June 26th, 2007, the lease !I 4 are now becoming 8?
___ __ __ an_d_M __ __ ________ THE ____ __ T_NE __ S_S_: __ Y_e_s. __________________
Page 3 9
1 for Unit Z3 - 1
2 A. Yes. 2
3 Q. -- is that right. Okay. 3
4 A. Also no other addendums on that lease 4
5 agreement. 5
6 Q. Thanks. 6
7 A. Next lease agreement dated June 12th, 2007, 7
8 for Unit Z5, Page 2, No. 8, resident may not sublet or 8
9 assign the lease. No other addendum. 9
0 Q. Okay. Is that the last one of that batch? 0
1 Then we have the -- 1
2 A. Z6, we do not have a lease agreement for that 2
3 3
4 Q. We can move on to Exhibit No. 3 then. 4
5 A. Okay. Exhibit No. 3, lease date June 1st, 5
6 2008, apartment No. Z4. Okay. Tius lease is missing 6
7 Page 2, which I did not realize initially. So we do 7
8 not have that particular page. 8
9 Q. So-- okay. And it would have been the 9
b 0 paragraph regarding subletting would have been on Page Q 0
b1 2? tn
b2 A. Yes. D2
b 3 Q. If it contained a similar provision saying-- t,) 3
4 would it - can you testify to whether it would 1/ 4
b 5 contain -- what was it -- Paragraph 8 - would 5
Page 41
BY MS. SPIRES:
Q. Correct. This is -- in Exhibit No. 3, we had
the back of-- we had addendum to the lease agreement
dated November 3rd, 2007?
A. For Z6.
Q. For Z6 between Sovereign Place and Maria
Delgado. And we found the actual lease agreement in
the back of Exhibit 3. So yes. And that is becoming
now Exhibit No. 8.
A. There is no other addendmn on Exhibit 3 for
the lease on Z4.
Q. Okay. And could we take a look back at the
lease agreement now since we have it for Z6?
A. Yes. So you all think you have a lot of
paperwork in your world. Okay.
Exhibit 8 is a lease agreement dated November
3rd, 2007, Sovereign Place, LLC, as owner. Maria
Delgado as -- listed as resident. Apartment No. Z6.
Rent amount in on No.3, 829. Also same provision on
Page 2, No. 8, resident may not sublet.
Q. Okay. Anything contained in the rest of it
that would have altered provisions ofParagraph 8?
A. I thought I answered that.
MR. BARTLETT: She's asking about No.
8.
11 (Page s 38 t o 41 )
Q&A REPORTING SERVICES, INC .
404.233.3300 ** JFische r@QARepor t ing.corn
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E . BACKUS 2-28-11 Desmond, et al . vs. Narconon, et al.
Page 42 Page 44
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
p-7
~ 8
~ 9
tzo
?1
/2
/3
/4
/5
A. Not in No. 8.
(Plaintiffs' Exhibit 8 was marked
for identification.)
BY MS. SPIRES:
Q. Okay. Okay. And is that a true and accurate
copy of the lease? Could you 1un that-- give me
that--
:MR. BAR1LETT: November 3rd, 2007, for
Z6 between --
BY MS. SPIRES:
Q. -- for Z6 between Sovereign Place and Maria
Delgado?
A. Yes.
Q. Okay. Give me just a minute and we may be
done.
Are you aware of any other apartment rental
contracts between Sovereign Place and Maria Delgado,
Delgado Development, or Discove1y Path that we haven't
discussed today?
A. No.
Q. Okay. Are you aware of any agreements or
contracts that reference any relationship between
Maria Delgado, Delgado Development, and/or Discovery
Path and Sovereign Place other than those that we have
discussed today?
Page 43
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
/0
)}
2
/3
/4
/5
today.
So specifically there is, you know, June
through November of 2007, and also the 2008 lease
agreements.
Do you know the rule regarding number of
tenants per apartment in place at that time?
A. I can't -- I can't speak 100 percent on that
during that time frame.
Q. Okay. Do you know where I could look to fmd
that policy? Is that a written policy?
A. That's -- it's part of the fair housing
guidelines. So researching what the guideline was
that we were following during those two time periods.
Q. Okay. Okay. If I could point your attention
back to Exhibit No. 5, it is the gross potential rent
document.
A. Yes.
Q. Okay. If you'll turn to Page 4 with me, if
you look down toward the bottom it looks like there is
under resident name for Unit Zl through Z6, lists
Discovery Path as the resident for each of those six
units.
A. Yes.
Q. Do you have any personal knowledge of why an
entity -- strike that.
Page 45
1 A. No. 1 Do you know-- have you ever in your
2 Q. Okay. I think that that is all I have. 2 experience had an entity rent a number of rooms?
3 (A discussion was held offthe 3 A. Yes.
4 record.) 4 Q. Okay. For what purposes is that typically
5 THE VIDEOGRAPHER: Going off the 5 done?
6 video record at 11:19 a.m. 6 MR. BARTLETI: I object to the form.
7 (Off the video record) 7 But go ahead if you can answer.
8 (A brief recess was taken, after 8 A From what infonnation the prospect coming to
9 which the deposition continued 9 look for the apartment would notifY us of. It's
0 as follows:) 0 usually for the purpose of possibly a business, a
1 (Plaintiffs' Exhibit 6 was marked 1 contract in the area, something like that. We
2 for identification.) 2 regularly have companies lease multiple units for
3 (On the video record) 3 those purposes for their employees.
4 THE VIDEOGRAPHER: We're back on video 4 BY MS. SPIRES:
5 record at 11:24 a.m. 5 Q. Okay. Are you aware of the purposes that
6 BY MS. SPIRES: 6 Discovery Path was renting these apartments during
7 Q. Okay. Ms. Backus, earlier when we were 7 tllis time period?
8 talking I asked you about the number of tenants that 8 A No.
9 could be allowed to live in an apartment at the same 9 Q. If you could look with me as well-- it's the
/ 0 time, and you gave me the two heartbeats per room 0 same line on --under write-off-- under the write-off
/ 1 rule. 1 column.
/ 2 A. Yes. ~ 2 ~ And I'll first look at the apmiment Unit No.
/3 Q. I want to make sure that that-- I want to Z2. It looks like $557 was written off. Can you
> 4 ask you specifically what rule was in place during the explain what that means?
'
~ 5 tenns of the lease agreements that we have discussed ~ 5 A. Without the ledger in front of me, I cannot
~ ~ ~ - - ~ - - - - - - - ~ - - - - ~ - - - - - . - - - - - - - - - - ~ - ~ ~ - - ~ - - - - ~ - ~ - ~ - ~ ~ ~ - - - - ~ - - - - ~ - - - - - ~ - ~ - - ~ ~ ~ - - - - - - 7 - ~ - - - ~ - ~ - ~ ~ . - ~ - - - ~ - - - - - - - - - - ~ - - - - - - - ~ - - - - - - ~ ~ .
12 (Pages 42 to 45)
Q&A REPORTING SERVICES, INC.
404.233.3300 ** JFischer@QAReporting.com
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2 - 28-11 Desmond, et al. vs. Narconon, et al.
Page 46
1 confirm.
2 Q. Okay.
3 A. In most situations that wlite-off column
4 reflects differences between rent charged, rent
5 received, but can be affected by a move-out date.
6 Q. Can you give me an example possibly?
7 A. For example, if this unit in reference Z2 was
8 moved out of during this time period, this calendar
9 month in the system, then the portion of that rent
0 that was not due and was not paid could very well show
1 up in that column.
2 Q. Okay. Can we look at Z --if we look at Unit
3 Z4 and go across, it lists Discove1y Path as the
4 resident. And it notes a vacancy. Can you explain
5 that 909 in the vacancy? Is that that-- that's
6 showing, I'm assuming-- well, can you explain that
7 column to me, please?
8 MS. EYRE: Object to the form of the
9 question.
DO Are you asking her to explain the
~ 1 vacancy column?
In MS. SPIRES: Yes. I'm asking her to
3 explain what the vacancy column means.
/4
A. I can't explain without seeing a rent roll
/5
and being given dates of occupancy.
Page 47
1 BYMS. SPIRES:
2 Q. Okay. So we do-- we actually have-- if we
3 have the rent roll and we can look at conesponding
4 dates, then you could answer that question? Let me
5 find that. Okay. Here we go. Okay.
6 I'm looking at Exhibit No. 6. Okay. So it
7 looks like Unit Z4 -- is this showing a move-out
8 date -- are you on the same page? I'm on Page 5 of
9 Exhibit 6, which is just the plain old rent roll.
0 A. Right. This rent roll does not reference the
1 information needed for me to answer the question
2 because this rent roll only gives activity as of 6-15.
3 It does not give activity through the end of the
4 calendar month.
5 Q. Okay.
6 A. And the gross potential rent that I have for
7 Exhibit 5 is as of June 30th. So we don't have
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
DO
D1
~ ~
D4
1/5
Page 48 1
unit?
A. You would have to reference the unit type
that's listed on - each size apartment per prope1ty
in our software system is designated a unit type. So
there is a key involved. Unit type equals a ce1iain
size apartment.
Q. Okay. Can you tell me, based on the unit
type numbers, how many bedrooms are in pmticular
units?
:MR. BARTLETT: Are you talking about
Exhibit 5 still?
MS. SPIRES: Well, yes, or Exhibit 6.
BY MS. SPIRES:
Q. I mean just in general, it looks like on all
these rolls there me unit types. And it doesn't look
like there are too many. It looks like 0128, 07120,
07126. Does those ring a bell or would it take
looking at --
A. I would have to research.
Q. Okay. Do you know in terms of square footage
how many rooms are typically in a unit with a square
foot of 1,107 square feet?
A. Typically that would be either a two-bedroom
one-bath floor plan, or a two-bedroom two-bath floor
plan.
Page 4 9
1 Q. Okay. Okay. That's all I have. If you have
2 any follow up.
3 MS. WHITLOCK: I don't have anything.
4 MS. EYRE: I don't have anything.
5 :MR. AMASON: I have nothing.
6 :MR. BARTLETI: Nothing here.
7 THE VIDEOGRAPHER: This concludes the
8 videotape deposition at 11:34 a.m.
9 (The within video deposition
0 concluded at the approximate
1 hour of 11:35 a.m. on the 28th
2 day ofFebrumy, 2011.)
3
4
5
6
7
8 cmresponding dates. 8
9 Q. Okay. But if we had conesponding dates, 9
2 0 then you could answer the question? It's just a P 0
::> 1 matter of not having the -- ~ 1
/ 2 A. Correct. 2
/ 3 Q. -- corresponding rent roll. Okay. 3
2 4 And for each of these apartment units, how 4
/ 5 would I know how many bedrooms are in each apartment 5
I
- - ------- _ _, -- ......... ....~ - - - ---- - ----- - - .. -- __ _ .......,.
13 (Pages 46 to 49)
Q&A REPORTING SERVICES, INC .
404.233.3300 ** J Fi scher@QAReporting . corn
http://ReachingForTheTippingPoint.net
(30(b) (6) ELIZABETH E. BACKUS 2-28-11 Desmond, et al. vs. Narconon, et al.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
1 5
16
17
18
19
20
21
22
23
24
25
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
~ 9
120
121
~ 2
?3
?4
25
Page 50
ERRATA SHEET?
.
I, the undersigned, ELIZABETH E. BACKUS, do
hereby certify that I have read the foregoing
deposition and that, to the best of my knowledge, said
deposition is true and accurate (with the exception of
the foll owing corrections listed below).
PAGE/ LINE CORRECTION
I
I
I
I
I
I
I
I
I
I
I
I
I
Notary Public Signature
Date
My Commission Expires:
Page 51
CERTIFICATE
STATE OF GEORGIA:
COUNTY OF FAYETTE:
I hereby ce1iify that the foregoing
transcript was taken down, as stated in the caption,
and the questions and the answers thereto were reduced
to printing under my direction; that the preceding
pages represent a true and colTect transc1ipt, to the
best of my ability, of the evidence given by said
witness upon said hearing. And I fmiher certify that
I am not of kin or counsel to the pmiies to the case;
am not in the regular employ of counsel for any of
said parties, nor am I in m1ywise interested in the
result of said case.
This, the 2nd day of March, 2011.
Kim B. Taylor
CCRNo. B-1792
My Commission Expires 4-20-14
II
- - - - ~ - - ___ ._ __ ,__..,
- -
-
--- -
_......._................__. , _.
------
- -- . - . ........ - ----
I
14 (Pages 50 to 51)
Q&A REPORTING SERVICES, INC.
404.233.3300 ** JFischer@QAReporting .com