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1 IN THE UNITED STATKS DISTRICT COURT FOR THE NORI7IERUd DISTRICT OF CALIFORNIA FLORA MAE BROLdNER, ) ) Plaintiff, ) ) -vs- ) No. 79-0389-Sia ) JOHNS-MANVILLE ) CORPORATION, et al. ) ) Defendants. ) ) 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 June 26, 1979 Winston-Salem, N. C. 10:30 a.m. DEPOSITION OF XA?: H. CROiI:4, Jf.. ADAMS & HOLT. INC. ~ 0 6o• 255' )4<5]5-GJ7e -e>as -<e<1 Fv.n,0!iF ~. C >9>iJ •

1 2 3 4 5 6 7 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. I spent seven nonths with a law firm in Washington practic radio and television law. I didn't like that particularly I became interested in antitrust law and I went with the Federal Trade Commission as a trial attorney in March of 1963. I remained as a trial attorney for about two years and then became assistant to the Chairman of the Federal Trade Commission for a year. And in July of 1966, I joined the law firm of Arnold and Porter in Washington p~ as an associate,^ remained there until July of 1966 when I joined Reynolds. Q. What was your first position A. Associate Counsel. Q. with Reynolds? When did you become General Counsel? A. I became General Counsel of Reynolds Tobacco Company in January of this year. Q. In the course of your duties as Associate Counsel, did you have occasion to participate in any of the so-called tobacco product liability suits? A. Yes. Q. What was your role in those suits, sir, coordinator? A. I represented the company as in-house counsel. Q. How many cases were tried to a jury verdict in your tenure? A. None. Q. None of the cases were tried to i jury verdict? ADAMS 8 HOLT. INC. )0. '9a>-6165 1 O s0.25515 Crohn - 5 lC.'535 0316 p.ng s 0 0 a a J ~ J

1 2 3 4 5 6 7 8 9 lo 12 13 14 15 16 17 18 19 20 21 22 23 24 25 there a particular index of those cases at R. J. Reynolds or do they have -- A. Yes. Q. Okay. From your answer, perhaps I jumped to the wrong conclusion or I misapprehend the significance of what you said, but I take it there have been other damage suits 0 personal injury damage suits in which theories were advanc d other than that of having contracted a disease; am I correct? A. Yes. Q. Would that be the so-called addiction cases? A. No. Q. Would you explain to me what category of cases these are? A. There have. been cases in which people have had cigarette ashes fall on their clothing and catch fire and have broug t claims against the company. There have been situations in which a filter has dislodged-from a-cigarette into the throat of a claimant. There have been cigarette beetle cases, larva cases ofcigarettes deteriorating particularly in the southeast United States where cigarettes can be attacked by cigarette beetles. There have been chewing tobacco cases of products like pieces of wood, chicken feathers and things like that in chewing tobacco and that sort of case. " O O Q, Srfio manufactured the Kent ciy;lrette? ~o -_J ADAMS 9 HOLT, INC. C y~~ - 9 1OO .1 B>E5 C 0 O b0.:55~5 ~~° ~POJt!

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 Q. A medical bibliography of articles which have addressed the issue of whether or not tobacco is a cause of human disease? A. I don't know that our files can be categorized as a medica bibliography or not. Q. I take it from that you do have files on the alleged medical ideological relationship between tobacco consumption and human disease? A. We have a number of files relating to that subject, yes. Q. Okay. Do you know or have you ever consulted with personally Dr. Theodore Sterling? A.. I have never consulted with Dr. Sterling personally, no. Q. Are you familiar with him? A. I am. Q. Do you know whether or not he is a consultant of R. J. Reynolds? A. He is not a consultant to our company as such. Q. Is he a consultant to the Tobacco Institute? A. I think he has, in past, provided consulting services to the tobacco industry. Q. Do you know whether or not R. J. Reynolds Corporation has ever contributed directly or indirectly through the Tobacco Institute any funding of any of the studies of Dr. Sterling? A. Yes. l0s B11 B>65 ADAMS 8 HOLT. INC. P J BOx 25515 Crohn - 11 ~Oa'S35OJ~B

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 19 20 21 22 23 24 25 A?PEARAiJCES : For the Plaintiff: Mr. Ronald L. Motley Blatt and Fales P. 0. Box 365 Barnwell, South Carolina 29812 For tie Defendant Johns-t•ianville Corporation: For R. J. Reynolds Tonacco Co.: Exanination Examination Exami nation Mr. Robert C. Clifford Moore, Clifford, Wolfe, Larson and Trutner, P.C. 201-19th Street Oakland, California 94612 Mr. Malcolm T. Dungan Brobeck, Phleger & Harrison Spear Street Tower One Market Plaza San Francisco, California 94105 Mr. L'dwin J. Jacob Jacob & Medinger 1270 1lvenue of the Americas iVew York, New York 10020 I N D E X Mr. Motley 4 - 24 Mr. Clifford 24 Mr. Dungan 25 ADAMS & HOLT. INC. ~Oe B<1 016, n. p Hp. 155.5 CH.4'.OnE N C :82i2 Crohn - 2 - 535-63>d

1 MAX H. CROHN, JR., having first affirmed, was examined and testified as follows: 2 3 E X A M I N A T I O N (By Mr. Motley) : 4 5 Q. State your full nare, age, and profession for the record, please. A. Max H. Crohn, Jr.i age 45; I am an attorney. Q. What is your present position with the Defendant in this case? A. I am General Counsel of R. J. Reynolds Tobacco Company: 6 7 8 9 10 also, I hold the position of Secretary. Q. How long have you been with the corporation? A. It will be 11 years in July of this year. Q. Did you go_with the corporation directly out school? A. No. 12 13 14 15 16 17 of law Q. Did you go with a law firm out of law school? A. No. 0. What wac your career before you came with the corporation? A. Beginning with -- Q. Out of lawschool? A. Out of law school, I clerked for a United States District Court judae in Washington, D. C., Judge John Sirica. I MR. MOTLEY: Off the record. (WIIPRLUPOV, a discussion was held off the record.) 18 19 20 21 22 23 24 25 ADAMS & HOLT. INC. Crohn -/1 )Cada~ 8~65 ~ C DO~ 25515 )L< 535 C3%B

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 This is the deposition of MT,x a. Cr:Uti.i, Ji:., taken pursuant to the Federal Rule3 of Civil Procedure, by notice, before F.omelia 11. Adams, 7lotary Public, in the offices . of R. J. 3eynolds, 7robacco Company, Legal :)epartYer;t, Winston-Salun, :Jortn Carolina, on the 29th day of June, 1979, bc,9inninq at approxiraatoly 10:30 a.m. IT IS STIPUALTED At4D AGREED by and between the parties that the signature of the Witness to the transcript of this deposition is not waived. >G< e<1 eI65 ADAMS B HOLT. INC. ~ 0 6J•155r5 1Q.5]5 OJ>B, • ~~' rl•1 - \ N 7 N ~

t A. I have not had any specific need to do.so; so, the answer 2 is no. 3 Q. Do those files currently exist? 4 A. Yes. 5Q. Now, none since you have been with the company have been 6 tried to a jury verdict, but I take it from your answer 7 that suits have been filed but they never have gotten to 8 a jury? 9 A. That is correct. 10 Q. Have any of them been settled or compromised? tt A. No. 12 Q. They were dismissed at various stages of litigation for 13 various reasons? 14 A. Yes. 15 Q. How many in number would that be? 16 A. Since my joinin3 the company? 17 Q. Yes, sir, 18 A. I'm not sure precisely, but I believe that somewhere be*we n 19 20 and 30 cases I've had some contact with since my joining 20 the company. 21 Q. Again, we are delinsating those suits brought by Plaintiff 22 in which it is alleged that certain diseases were contract d 23 by use of products manufactured by this corporation? 24 A. Yes. 1n 0 0 25, Q. Do you know the style of the jury trial in New Orleans? ^+ o~ J ADAMS 8 HOLT, INC. 10.6ll 8165 F 0 sJ. 1S115 ,gi;53laA6 - 7 1 W

1 A. It was called Lartigue. 2 Q. I can't spell that: Can you? 3 MR. DUNGAN: L-a-r-t-i-g-u-e. 4 Q. Was R. J. Reynolds the only Defendant 'n that case? 5 A. No. 6 Q. Was Mr. Belli the Plaintiff's attorney in that case? 7 A. Yes. 8 Q. And it was tried in the United States District Court in 9 New Orleans? 10 A. Yes. 11 Q. Are you currently a Defendant in any suits filed by Mr. 12 Belli in California? 13 A. Yes. 14 Q. Is it one individual case or is it a class action? ls A. It is a single case against Reynolds Tobacco Company only. 16 Q. What is the style of that case, sir? 17 MR. DUNGAN: Christopher Russell Goff vs. R. J. 18 Reynolds Tobacco Company. 19 Q. What division or district is that pending in? 20 MR. DUNGAN: The United States District Court for 21 the Northern Di3trict of California. 22 0. I believe Mr. Belli represents the Goff family? 23 A. To the best of my understanding. 24 Q. The some 20 or 30, or ever how many there might be, other Ln 0 0 25 diseases cases with which you are somewhat familiar, is a A J J R ADAMS & MOLT, INC. Crohn - H lDi B<>8+65 >O 00. 25515 >Oa 5J:0]~B

t A. No. 2 Q. Y.ave you consulted with any asbes*_os manufacturing compani in regard to the allcgation that is contained in that pleading? A. tIo. Q. Have you consulted with any so-called asbestos Plaintiff's lawyers,of which I am one, in regard to the allegation contained in that pleading? A. No. Q. Do you have any personal information whatsoever with respect to any agreement, alignment, affiliation, associa- tion, conspiracy or otherwise between Plaintiff's•counsel, of which I am one, and asbestos manufacturers, of which Johns-Manville is one? P7ould you repeat the question, please? (WHEREUPON, the Reporter read back the question as requested.) A. Counsel, your question is rather broad. I've gotten a lot of information over the past few weeks from my counsel reporting on what has occurred in California. Q. Divorcing yourself from that, t1r. Crohn,.prior to the filing of this pleading, did you personally have any first-hand information on which that allegation was based? A. No. Q. Did you corduct an investiqation or direct that an 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 s ADAMS & HOLT. INC. Czll}~n - 14 ]un6a] B]65 ' O P~i.:5515 ]~ SL~]Bn Cr~aa~011F •. < ~BI~1 •

1- Io 1t 12 13 14 15 16 17 18 19 20 21 22 23 24 25 filed, number one? A. Yes. 0. Are you familiar with the allegationa that were made in your Removal Petition with respect to some association between Plaintiff's counsel and defense counsel, and I can read it to you if you would like? A. Yes. 0. Sir? A. I am familiar with it. Q. Did you have any personal input into the statements which were made in the Removal Petition, in particular the one that is quoted in the Notice of Deposition? A. May I see it, please? Q. Yes, sir. (WhIEREUPON, Mr. Motley hands the witness for his review.) document to the A. I was consulted by counsel with respect to the statement. Q. All right. Mr. Crchn, was the statement based on any information that you provided your counsel, Mr. Dunqan? A. No. Q. Was it based on any corporate, that is R. J. Reynolds files that you provided Mr. Dunoan? ~ - IA. No. ~Q. Did you have any original information to contribute to the o I 7 alleaation that is contained in that pleading? ADAMS & HOLT. INC. ]Oa B<] B]ES 1 0 80t 255/5 Crohn - 13 70.'535-0319 a ~ -•, J

I 1 2 3 4 5 6 7 8 9 lo 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. That's right. Q. Are you familiar by way of corporate folklore or review of the files or any other way of any cases being tried to a jury against R. J. Reynolds before you affiliated with this corporation? A. Would you explain, sir, what type of cases again? Q. Tobacco product liability suits, either warranty, negligen e or strict tort liability suits in which personal injury damages were sought by persons who claimed that various diseases were occasioned by their smoking cigarettes or other tobacco products manufactured in or distributed by R. J. Reynolds? A. Addressing your question with respect to diseases caused, o my knowledge, only one case has ever been tried in the his or: ti3 Reynolds Tobacco Company. Q. Do you know when that case was tried, sir? A. In 1960. Q. Do you know where it was tried? A. In New Orleans, Louisiana. 0. Do you know for how long it was tried? A. Over a period of weeks; I do not know specifically, no. Q. Have you reviewed the files of A. Not to any great extent, no. Q. Did you attempt to familiarize of that litigation? that litigation? yourself with the files ADAMS 8 HOLT. INC. v (> nJa255~S Crohn - 6 10.111.110

1 A. I assume so, but I can't detail precisely what information was communicated to Mr. Dungan because I was not a party to every conversation between other counsel that represent Reynolds and Mr. Dungan. .Q. Do you know the sources of Mr. Dungan's information other 2 3 4 5 6 than yourself? A. I think I do. Q. Could you elaborate those for me, please? A. I think it's outside counsel that we have retained, Edwin Jacob. Q. From where? 7 8 9 lo 11 12 !tr. . A. New York; Mr. Timothy Finnigan, Mr. Jacob's partner. Q. Okay. A. And Mr. Harold Schmidt. Q. He is in Pittsburgh? A. Pittsburgh; right. Those are the attorneys that I look to gather information on our behalf and I believe they commun cated with Mr. Dungan. Q. Are any of these gentlemen, Mr. Jacob, Mr. Finnigan, or Mr. Schmidt, a full-time employee of any tobacco industry, 13 14 15 16 17 18 19 20 21 to your knowledge? A. Of any tobacco industry. 0. Any tobacco company or the tobacco industry? A. No. Q. Do you know anyone in the corporate hierarchy of ~ I I I L-- - - 22 23 24 25 - BJl F>65 ADAMS & HOLT. INC. V O BO.355i5 R. J. Crohn - 18 10< SJ3037N

~, You do know that? A. Yes. 0. Are there any files to reflect that? A. Yes. Q. Turning to -- (WhEREUPO*1, the witness speaks with Mr. Dungan.) 2 3 4 5 6 7 MR. 8 DUNGAN: The witness was drawing my attention fact of something of which I've been unconscioi I the fact since you began interrogating him; that is, that this is not a deposition of Max H. Crohn. This is a deposition of a , designated representative of R. J. Reynolds Tobacco Company on a designated subject. MR. MOTLEY: Yes; I am going to get to that subjec right now. 0. Is it Crohn or Crohn? A. Crohn. Q. That is German? A. Yes. Q. Mr. Crohn, there was an allegation made in a Removal petition filed by R. J. Reynolds Tobacco Company, with which I assuTe you are familiar, in this instant case, the Browner case? MR. DUNGAN: What is the pending question? Q. Are you familiar with the fact that a removal petition was 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ADAMS 9 HOLT. INC. 12 104 B.>B165 o O 60. 255.5 to i S / C 0 0 N a a J J a

t Reynolds that might have been a source for Mr. Dungan or his co-counsel in the allegation which appears in paragrap 10 that we have reference to? A. The only person in the corporation that would have dealt with Mr. Dungan on the subject i.^n re. 0. To your knowledge, Mr. Dungan has not interviewed anybody else in the corporation with reference to this particular allegation? A. I'm confident that he has not. Q. So, to the extent that you pzovided him only with the information with regard to Johns-Manville and King and Spalding which you elaborated here? A. That's right, and I -- that is to the best of my recollec- tion. Q. I understand. . There may be some minutiae of which I have no present 2 3 4 5 6 7 0 9 10 tt 12 13 14 t5 16 17 18 19 23 24 recollection, but I participated with Mr. Dungan and others, attorneys who I have named, and in a conference call or calls over a time, but I did not participate in every conversation. Do you have any recollection of any information Mr. Jacob right have furnished to Mr. Dungan in respect to the allegations that appear on Page 6, Lines 4 through 7? . I cannot specifically identify any information Mr. Jacob gave to 14r. Dungan versus what Mr. Schmidt or Mr. Finnigan 25 ADAMS !S HOLT. INC. ~O~ B6~ B~6S 'O B-25Si5 19

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 interrogzted by 1fr. Kazan on that last Wednesday. A. I cannot detail for you the reports current in the asbesto and tobacco industries and the legal profession which are e ferenced here. Q. So, you personally have no information to help us in that regard? A. (Witness nods head negatively.) The information that I go was obtained, was given me by our attorneys that -- and I don't have any -- as I told you earlier, I did not conduct any independent investigation myself. I relied upon counsel's advice as to facts that they had learned and their information gathering process. Q. Mr. Crohn, with respect to any reports current in the toba co industries, I take it those reports do not, as communicate to Mr. Dungan or your counsel, did not emanate from? A. That is correct with the exception of the information -- 0. About Johns-Manville, King and Spalding? A. Right. Q. Except for that, none of the information which is alleged here emanated from you or your office? A. That is correct. Q. Are you privy to, whether it emanated from your office or ot, are you privy to the information that was communicated to tr. 251 Dungan? Crohn - 17 ADAMS & HOLT. INC. )'J< SJS OJ1b 1 0 90.25515 - 841 8>65

1aa.alA r d- 4-eWS A. It's manufactured by P. I7errr2urd Division of Loae-'-s, Inc. 0. Do you know, of your 2 3 own knowledge, whether at any time R. J. Reynolds Tobacco Company employed asbestos fiber in any filter cigarette marketed by them? 4 5 A. No. Q. You don't know or they didn't? A. I don't know of my own knowledge. Q. Well, have you seen anything; has 6 7 8 9 anything been brought to your attention which would reveal whether or not asbestos filters were used in any cigarettes marketed by R. J. Reynolds Tobacco Company? A. To my knowledge, asbestos filters were never used by R. J. Reynolds Tobacco Company in a filter, but that is to the best of my knowledge. Q. Was asbestos used in any manner, shape, or form in the final tobacco product by R. J. Reynolds Company, to your understanding? . Not to my knowledge. Q. Do you know whether asbestos containing filtering devices are used in the tobacco product manufacturing process? I do not believe so. Let me ask you this question: f:as Reynolds compiled a bibliography of ined.ia211iterature in relation to the alleged deleterious effects of tobacco on the human body? . A bibliography? 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ADAMS 8 HOLT. INC. Crohn - 10 BJ• 25515 )OaS]5-O]]B ~]a~8a]8~65 v 0

1 2 3 4 6 7 8 9 10 12 13 14 15 16 n ls 19 20 21 22 investigation be conducted towards the.end of determining whether such an association as I have described or you hav described in that pleading existed? A. I encouraged our attorneys to gather as much information on this subject as possible, yes. Q. Prior to the filing of that pleading? A. Yes. 0. Did you participate in the acquisition of that information A. I've only received information. I did not participate in acquiring the information. Q. So, would I be correct in saying that your role was one of receipt and initiation rather than information gatherin A. Yes. I might say there is one small point; information wa given to me directly after I passed it on to counsel, r41'e attempted to acquire the services of a law firm in Atlanta when it appeared that there may be some cases developing in the State of Georgia. We were advised by that law firm that they could not represent us because they had been requested not to do so by Johns-Manville. They had represented Johns-rfanville, I was told, in connection with some industrial bonds, not in connection with this type of litigation. ?'onetheless, tianville ? 23 ` requested that they not represent Reynolds and they did no 24 IIQ. Which firm was that, sir? 25 ;A. Y,ing and Spalding. ADAMS 6 MOLT, INC. YU.6<)-tllc.. c O 60aP55iD 1C_SP'e>~9 5

suggested a relationship. Q. This was after the fact, sir; in other 2 3 words, Mr. McRinne~ didn't make his public statement until after this petitiorj was filed, did he? ,A. That is correct. Those public statements are after the 4 5 6 fact. Fios.ever, there had been statements by Mr. 2•tcKinney by Dr. Rotin that I was aware of through -- I don't belie e 7 8 I ever read a deposition of Dr. Rotin, but it was reporte to me that he, in depositions, made certain statements that again pointed the finger to tobacco. Q. Mr. Crohn, do you understand that Johna-Manville has only settled in cases in which I represent Plaintiffs? A. I have no understanding as to the extent of Johns--Manvill settlements. Q. Have you investigated to find out whether they have settl with anyone other than myself, my law firm? A. I personally have not. Q. Do you know whether or not they settled with Mr. Belli? A. No. Q. Prior to the filing of this pleading, sir, did you have any information or was any information brought to your attention -- were you privy personally to any information was any information brought to your attention by any sourc btr. Jacob, Mr. Finnigan, Mr. Schmidt, anyone else, Mr. Dungan or anyone else in the corporation which would have 9 10 1t 12 13 14 15 16 17 22 23 24 25 's P . ~A 0 0 a N ~ ADAMS & MOL.T. INC. ]0. 8<'18]65 P 0 B'i.255i5 Crohn - 22 JO.'Sl5 0J]8

1 2 3 4 5 6 7 8 9 lo 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Did you subsequently A. Yes. Q. Now, in the petition obtain counsel in Georgia? itself, it states, and I quote: "Reports currently in the asbestos and tobacco industries nd the legal profession." As the designated witness for R. J. Reynolds, could you tell me what reports were current in the tobacco industry or at least in respect to R. J. Reyno ds prior to the filing of that pleading which gave rise to so e inference on your part that such an association existed? It might not be quoted in there, but it is in the Removal Petition. A. I would like to see the document to which you are referring. Q. Your Removal Petition is where I got it. Can you show it to him, Mr. Dungan? It is in your Removal Petition. W}{EREUPON, Mr. Dungan showed the document to the witnsss.) WHEREUPON, Mr. Clifford hands a document to Mr. Motley.) MR. DUNGAN: It stlrts on Page 5, Line 10 and continues over to Page 6, Line 11. Q. Particularly on Page 6 starting on Line 4. MR. DUNGAN: You might just glance over that. (WHEREUPON, the witness reviews the document.) MR. DUNGAN: And this is signed by me and I was ~ ADAMS & MOLT. INC. U4 bi) 8~65 G O 6Jt 25515 C4.9,Or1E n C 28212 • >oCCFMv~ - 16

1 2 0. Did you believe that that settlement inspired a subsequen~ suit against the tobacco industry? 3 4 5 6 7 A. 0. A. No. Did your investigation reveal where t~e law firm had settled with any other asbestos company prior to -- 1977? Not to my knowledge) I don't recall. in 8 IMR. MOTLEY: I have no further questions. 9 MR. CLIFFORD: I wanted to as}: a question in 10 connection with the Atlanta law firm. 11 E X A M I N A T I 0 N (By Mr. Clifford) : 12 13 Q. When did that take place? 14 A. Last fall, subsequent to the filing of these various 15 actions. 16 Q. Who did you speak to at King Spalding? 17 A. Mr. Kirbo. 18 Q. And subsequently, a short tine after, I take it you 19 retained other Atlanta counsel; is that correct? 20 A. We retained an attorney in Savannah. 21 22 23 24 MR. CLIFFORD: That is the only question I have. MR. DUNG%N: Just one question on redirect. ADAMS & HOLT. INC. 24 `OC ea~-8765 v 0 BO. 25`.IA• •JS rwsa.Cc c v C >M2~J ~

10 12 13 14 15 16 n 18 19 20 21 22 23 24 25 gave Mr. Dungan. Q. Collectively, what do you recall with respect to the thre gentlemen providing Mr. Dungan in regarding Paragraph 10, Lines 4 through 6 on Pa<re 6? A I recall some discussions about a rumor that a meeting was held in South Carolina. {~ Whereabouts, do you know? A. Myrtle Beach, I believe, at a Bar Association meeting at which payment of a million dollars or more was paid by Johns-Manville to yourself. g Um-hum. A. I recall hearing about that. ¢ Was there quid, pro, quo with respect to the tobacco I industry as part of that? A. There was nothing -- it had nothing to do with the tobacco industry. ¢ All right, sir. Go ahead, anything else? A. I was aware that an unusual document had been discovered in California in this case wnich the Joiins-flanville joined with Plaintiff in bringing Reynolds in'co the case which was unusual, I though6 I was aware tnat.wnen you appeared upon the scene in some of these asbestos cases, tobacco companies began to become. involved and your name appeared on this case as counsel in California, which I thought was rather unusual since you are an attorney in )pa 8<1 6165 ADAMS & HOLT. INC. P O 80.255t5 Cn.4~0- I C -212 CroftrY'zf"P0

t .2 3 4 5 6 7 0 9 10 15 16 17 18 19 20 21 22 23 24 25 E X A M I N A T I 0?7 (By .dr. Dungan) : Q. Had Reynolds, before your conversation with Mr. Kirbo last fall, had a client-attorney relationship with the firn of Ring and Spalding? A. Yes, for years. MR. DUN GAN: That's all I have; thank you. MR. MOTLEY: Off the record. (WHEREUPON, a discussion was held off the record.) (hTHEREUPON, the taking of the foregoing deposition was concluded at 11:02 a.m.) Sworn to and subscribed before me this the 26 VX day of d, , 1979. Notary Public i My Commission Expires: i1,f >0< 9A1 -6165 ADAMS & HOLT. INC. P O BOa t5513 Crohn - 25 ~Oa 5>! 03~8

2 3 4 5 6 A. 7 Q. 8 A. 9 10 11 12 13 14 Q. 15 16 17 A. 18 Q. 19 20 A. 21 22 23 24 Q. 25 A. given rise to the belief on your part that, as a condition of the settlement entered in South Carolina with Johns- Manville and Pittsburgh Corning, that I was requested, required or solicited to bring the tobacco industry in as Defendants in cases in which I represented Plaintiffs? I had a belief to that effect, yes. What was it based on, sir? On the circumstances, as I saw them, in terms of the timin of how the ca-es came along, how the cases were settled with Johns-Manville, it seemed to be an indication, a strong indication, that there was some kind of understandi between Johns-Manville and yourself with respect to bringi in tobacco companies. Mr. Crohn, has R. J. Reynolds been named as a co-defendant in any suit in this country with the asbestos industry other than those in which I am involved? No. Did your investigation reveal whether or not my firm had settled with any Defendants other than Johns-Manville? I think there was a case in which there was a settlement with a company called Colville that I heard about that caused the Court to allow the case to he removed out of the State Court into Federal Court. Did that have anything to do with the tobacco companies? No. '/Ua 9el B>ES ADAMS B HOLT, INC. N 0 9~. 15515 Crohn - 23 P 9 9

1 the State of South Carolina. There may have been some other points; I just don't recall right now. I have not gone back through the files to prepare myself for this deposition I must say. ,Q. Now, have you heard any -- gathered any information personally or heard any communicated to you by Mr. Jacob, Mr. Finnigan, Mr. Schmidt or anybody else in this corpora- tion that part of the agreement between any asbestos Defendant and myself, representing Plaintiffs, was the facilitation of the tobacco industry being joined as the Defendant? A. No, but let me add another point that occurs to me. I hav read some public statements by the Chairman of the Soard of Johns-Manville, a report to some security analysts in Nw York; I've read their most recent annual report. I've read an article in Fortune Magazine, I believe, and Mr. Mc£inne makes constant reference to cigarettes and tobacco. It is clear that there is a feeling in Johns-Manville,at leas at the chief executive level, that tobacco products are t be looked upoa as the cause of the diseases that are the subject matter of the various cases involving Johns- Manville. That announced position of Mr. Mcfiinney.coupled with the information that there have been settlements in South Carolina and your involvement in those cases, all of 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 1e 19 20 21 22 23 24 25 a sudden the tobacco ccTmanies coming into the cases ADAMS 8 HOLT. INC. Cro n - 21 ]0/6a)-B)65 P 0 BOt25515 ]Oa'1350J1B