Industry-Provided Depositions
Pacific Tobacco Corp. Vs. The American Tobacco Company, Inc. Deposition of Stanley E. Hartman.
Fields
- Named Person
- American
- Bat
- Liggett
- Philip Morris
- Rjr
- Ti
- Bat
- Type
- DEPOSITION
- Site
- Rjri
- Law
- Box
- Rjr3048
- Request
- Minnesota
- 1rfp37
- Author
- American
- Liggett
- Philip Morris
- Rjr
- Hartman, S.E.
- Liggett
- Date Loaded
- 27 Feb 1998
- Brand
- Other Brands
Document Images
03')
t;r:. KA.1at,: r,o.
1;T;. GItIi!;SA: A11 r.ictl1t. ao am I to understand that everv-
~~ th_inct in i:he
turnc'cl over to you by your client has been
d made availa.>>.e eit-.her to Reynolda' counsel last spring or to the
5 variou -~ caefendant-, on this caUvosition?
E3 ' 111t. KAi"" : Yes .
7 tu:. LOr13: llow about individual documents turned over,
Q not necersari.ly files, you're nott drawiny a distinction, are
9 you?
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MR. KANE: I did go through the file and I, 'for examnle,
cai,ne across a memo rirenared at our request on the call of Mr.
Belknan of the Tobacco Institute. That was
1-41:. LOE3: You have withdrawn that?
MR. KA~VE : That is an attorney-client privilege. .
MR. LOI',13: liow about memoranda of conversations, for
exam.:)le, with Mr. Friis?
11 R. KANE : As far as I can tell everything relating to
that, Mr. Friis or Imnact Developers, has been turned over and
I have her.e a"Transcription of Tape, Cancer Case" made by our
secr.etary and says, "Apparently we hear the answers to an inter--
f
viow, " and ;Ir. . liarn tman can testi fy to that, but there are some
references to what cvas goincT on. We haven't been able to find
that: tjipe t'iat was referred to, hut I can state categorically
everything that was turned over to us in the way of business
files, anyt!iinq that we hac3 prior to the time they entered into

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C7N.Sl:,t'r~=.
an - t~.qrec~ment- w3ah Ti1hiy `~, - t~aino _ ~A:rp `rc~i
.
y
ou wan'C~.i> r.11ow' this
' to t.hem?
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THE S4ITNE5S: Yes. I am delighted to.
when we had communications 'and the like --
r1k. GRIESA: I will tell you, Mr. Kane, I am not sat:is-
or Mr. Steinbach or Mr. 1luopin orr of Garden Home or of Bel Aire
rel.ating to Cancer Cigarettes.
MR. K11NR : You put a date on it or do you recognize
at:t:orney work product?
R. GRIESA: I request everything.
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f:a.ed. It seeris to me you told me a few moments ngo that you
considered nothing contained in your clients' files work product
and then you specif3.ed sonethinq ----
r.
A9R. KhNE : When they walked in MR. GR2rsA: Just a minute. Then you snecified something
to Mr. Loeb t_hat you considered
work product. Now, I don' t know
that: there is any utility in my pursuing this any further. I
think we will have to pursue it with you at a later time. t9e
won't take up this witness' time and it may be necessary to
just ta}:e a short deposition of you and Mr. Tilbury. In my
mind there ha> been some difficulty about the documents and I
wi1.Il state that I am not satisfied with the situation and I
would have you understand, nlease, that R. J. Reynolds certainly
renews the demand that we made last spring that we want every
document or paper of Pacific Tobacco Company or of P1r. Hartman

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'a iil: ;9:LTNI,> ;: Can the witness say anytila.nn a6out these
_t:ars pari:icu].arly?
Itlt. K71vI:: One seconct, Stan. 1gr. Loeb?
!JIt. LO:.'13: Mr.. Kane, I just wanted to clarify one
'1'he sul:>naena duces tecum ,nocif:ied a
nurah(-,r of files.
point.
I ]ust
r~~a~nt to have you clarify, aside from the documents which you
have given to Mr. Griesa and handed to him, are there any new
c'ro~:ur.ieni:s which have been inserted in the files?
MR.KN1R: Nothing has been inserted.
MR. LODB: Nothing has been inserted?
MR. K11.NR : N'o.
MR. LOI,B : Ilave any documents been removed from the
files since the he,ryinning of these depositions, of the files
t.h,.A: were subpoenaed and first brought in here? Before you
ans\;}er., I suggest you look for the original of Exhibit 98. There
a, s a copy.
I,iI:. K11NI,: ,-7hat is Fxhibit 98? Let' s see, a letter,
Luidat:ed, from Mr. 1lartman to, addressed, "Dear Roger." That is
attornc:y work product comm unication.
P1Z. LOrr3: it's already been disclosed.
MR. KANE: It's been disclosed, then you have it.
MR. LOEB: Approximately 15 other documents in the same
file which have been removed.
MR. IW]r : Yes, and those are attorne f work product and

(l!'.. LUL:13: Are you ta)cinq the position that once you
,~ c,c3ucecl ttinm that,you can thon take ther.i hacl;.?
c9I,. KA.yE: I am takincl the position they are attorney
product.
JII;. GRIF.f;h: I think we ought to --~-
l9R. KANE: ',Nle can qo on al l day on this.
19It. :,cE;II,1I: I was going to make an ohservation. Yerhaps
I shoulc7 retire to ruy office until this matter is resolved,
;Zr. Hart c-uid I and several others in attendance here. These
dcpo=.itions have been arranged by other parties. .Ve have
attempted to accommodate in.the usual spirit that permeates
this professional community for the most part and I have been
imposed upon and certainly Philip. Aforris and Liggett & Myers
and other people have been imposed upon. There hasn't been
one word mentioned about Philip P11orris in the ten days so far
and :1: fecll a-need to express it very mildly. I don't mean to
spoak fo.rr h]r. Itart.. I'm sure he's able- of expressing his own
views.
4 MIZ. LOEI3: I would like to ask whether or not the witness
has made the investigation requested by Mr. Ililliard yesterday
,dth regard to addit.ional. sales not reflected in the Amended
nnswc~r.s To The Interroqatories and whether or not there is a
suvp].enlental answer available at this time.
riR. KANE: Stan --- °-
Ta1L' !aITNr,SS: Mr. Loeb,
tn
those additional sales should be ~,°,
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rr..c;orclr:ci in the book t:.hat: I thinlc Mr. Griesa now has, and tli'.it
comcs out of a current ,rorkinq book which I t:hinYk in fact you
have, sir, which I incidentally fcel is still awor.'r;ing file.
'i'here are accounts in there that are not paid for, but tiZe
sales to 1?ich's are made by Bel Aire Pharmacy and not Pacific
,robrzcco Corporation and the nature and devel.oprnent of these
sales were alluded to in .'.r. Jiilliarcl's line of questioning, but
I as a witness, I was unable to lead the interrogator into the
relationship between Bel Aire Pharmacy and Pacific Tobacco
Corporation.
i,tR. GR7rSA: Do you have anything further, Mr. Loeb?
r1R. LoE13: No:
MUR. IIART: Let me state my concurrence with Mr, i1cl:wen'n
ohservati.ons .
1iR. I;ANr : Mr. Gr, ies a, can you give us a target time
for completing your deposition of Mr. H.artman?
PIR. GI'.IESA: I cer.tainJ.y will attempt to finish today.
I think the additional documents produced this nornincl
cauae some repetition.
I9R. R11N1;: Then 1-1r. Tilbury points out and asks me
spec:if-i.cal1y to use his name. This has been going on close
to two weeks and he would like to terminate this by 4:00 or
A:30 tomorrow. There has hr.en
a great deal of detail brought
out. pluch off the clepo -dtion has been devoted to matters that
ai-e qui.te rer:iote, even by 26 (h) standards, hut :'ir. llart:nan

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xss- ar
!~n ;!aecn c_ioinc7 a 1oncI time ~ancd he doos have to qc;t f)C-+c1; to his
'.~us~_11eSS .
I1It. GRIDSII: 1111l r.ig;at. I understand your statement.
c3,on' t we proceed?
THI, WITVrS S: x. ------
riR. GRII:SA: Would you like to say somethinq?
Ttll. WITNESS: I would just call your attention to this
transcription of that. tape that became a matter of discussion
and I have reviewed that and it is as complete ---- it is a
complete transcriotion 'of that tape.
.tR. GRIESA: I' 1.1 resume the questioning, if I may.
Q (By Mr. Griesa) You just stated during the colloquy,
?1r.. Ilartman, that the purchases of Rich's Cigar store were
made from F3el Aire Pharmacy?
A Yess, sir.
Q Not from Pacific Tobacco?
A That's correct.
MR. GRIESA: i-Jould you mark this as the next exhibit?
(A copy of a statement to Richs
Cigar Store, dated 3--31.--G7, from
Pacific Tobacco Co., was marked
DRFI.NDhNT' S EX}iII3IT R 17 for
i.denti.fication. )
Q (By Mr. Gra.esa) Do you recognize R 17?
n Yes, sir.

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tl!hat .i s that?
It's a statemcnt from Pacific Tobacco Cornoratl.on to
;,ic:r's Cirlar Store for 60 cartons of Cancer Filter Cigarettes.
tiR. I1cF:0FN : llato?
T11I: 'lITNL:SS: Date ;1ar.ch 31, 1967.
~' p (3v Iir. Griesa) And is this the sale referred to in
connection with Itich's Cigar Store on page 34 of the Answers To
~ Intorrocratorie,, the sale dated t1arch 31, 1967.
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A Yes, Sir.
0 And this sale was made by Pacific Tobacco to Rich's, was
it riot?
A That's correct, sir.
~ All the otherr sales referred to on page 34 to Rich's Cigar
S'tore were made by Pacific Tobacco, were they not?
A I am quite certain that they were, sir..
p What did you mean a. few minutes ago by telling us the
sales were made by I3e1. Aire Pharmacy? Was that a mistake?
A 140. Not whatsoever because we are talking about -- you
wor-e qui77ing me and I made the statement ye ,terday that there
have indeed been additional sales to Rich's Cicxar. Store and
continuously. This record book over here indicates that there
have l)een sales, but thc:v are made from I3e1 nire Pharmacy and
this reflects the naturo of the dispensation of Oregon tax
; t~~~rnpS .
So am I correct that in addition to the sales by Pacific a
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; lc:co xefl.ectror, nane 34 of the nn ,:.!er:i To xntc~roc7at.araes,
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tv,,,ro ,aer^ sales by I3el Ai.re Pharmacy?
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7"her.e are sales by Del Aire Pharmacy.
'Caen did they atart?
I'rohahlv after the heriod i.ndi_c7i:ed there of January l0th,
You can see, I think, what's dictated -----
You really ---- that's all I need to kno;a.
A I'm sorry. I don't mean to ~-iander on aimlessly.
0 I don't need to pursue that. On the subject of production
of c?ocuments, I have an additional request. Did you, Mr. IIartman
or did 'Mr. Kane l.ocate last night the draft, proposed draft
letters to tobacco distributors and to tobacco manufacturers?
MR. K1uyL: Let; me answer that. As you may recall, I
c:allccd the law office of Mr. Leigal and I was told the office
Wa :, c; ]-osc.d, cal l at f3 : 00 o' clock and talk to hi s secretary.
Idicl so. She indicated Mr. Leiqh is on vacation,
hac:k til:l. next week. I told her my need.
won't be
She indicated stuff
'oac: in there,mater.i.al was in their inactive or dead files in
`icacon's Storage. She turned me over. to, I believe, A9r.
Klarquist. I reviewed again what was sought and he said he
pre--fe,rred to x-;ait till Mr. Leigh returned next week ancl coul-cd
dici into his o,.an files wherever thev are. It's an inactive
file,
`lR. GRTLS~n: Do I take it when and if these drafts,
~rc>;~c~ ,~~d draft l.ett:erS arO located, t1iey tlil l be produced?

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Yes . I can s:end the:n to !;r. '1'rt inlett or P9r.
i ,,...:,, wh a to. var you pr.efer.
lilz. C:ItII:SA: I would aor>reciate you sending one set
to '!r. Triplett.
r1R. KNJL:: Okay.
i;R. CI2Il:SA: hti.ong the documents nroducc:d t'.iis morninn
:ay your counsel are two invoices of rmpire Candy &''a'obacco
Cr,rr%').ny, one dated March 29, 1967 and one dated April 19, 1967.
May I have these marked as the next Reynolds
Y,}:}iibit?
(A coray of an Emnire Candy & Tobacco
Company, Invoice No. B 4699 to
Bel Aire Pharmacy, dated 3/29/19G7,
was marked DI:rL'tJDANT' S EXHIBIT R 18 1
for identification, stapled to a
cony of an Emnire Candy & Tobacco
Company, Invoice i-1o. D 6475, dated
4/19/1967 to s3el Aire Pharmacy, which
was markecd 2 for identification. )
~? (By 17r . Gri.es a) You had previous ly produced, Mr. fiartman,
invoi ces dated Ma,y 3.5 z-nd hnril 5., 19G7, Exhibit 1C3 110 -----
raR. IIART: March, Tom. March 15.
0 (By 1-tr. Gri.esa) I meant ;iarch 15, 1.9G7 and April 5.
'r,`ic:Ise, C-tre ones you rireviously produced, and they reflected
"aUrchzic,es hy Larry 11oor.e off cartons of Cancer Cigarettes, did
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n Yes, si.r, they did.
voa, did thc t~jo i.nvoices containcc', in I;xliibit R 18
additional 1-)urc'_iasr.s by Larry Moorc of Cancer Cigarettes?
It 18 is the ori.ryinall of n3 1.1.0. As near as X can see in
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f.: ~t t.~ey are.
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i 0 hool: at the dates again (indicating) .
~ t n Wait a minute here. 3/15.
i ~ (Discussion off the record.)
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); A Yes. I guess they do. I hadn't noted that before.
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I!} p (By Mr. Griesa) The answer is Yes?
! ~ A Yes.
is it correct that they reflect a sale to Larry Moore
E
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off one carton of Cancer Cigarettes on March 29, 1967?
C
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A Yes, sir.
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Juid a sale of two cartons of Cancer Cigarettes to Larry
~ ::oorf! on Apri l 19, 19 G 7?
A Judging by the price extension I would say that that
i ,,as t..ao cartons of Cancer T`ilter Cigarettes. harry did not
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wr_i.tcr! in Cancer, though. lie just says, "Credit 2 carton Filters.'
0 My question to you ---- Iar.r not asking you to read the
CGoC:U'^le;it.. I am just askinCl a question of fact. Is it the fact
that t:here was a sale of two cartons of Cancer Cigarettes to
Iarr'y :loore on April 19, 1967?
A Yes, sir.
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