311 1 IN THE CIRCUIT COURT OF THE 11TH JUDICIAL CIRCUIT, IN AND 2 FOR DADE COUNTY, FLORIDA 3 CASE NO.: 02-29149 CA 11 4 GAUMUR, e.h.f., an VOLUME III OF V Icelandic corporation, PAGES 311 TO 418 5 Plaintiff, 6 vs. 7 JON GERALD SULLENBERGER, 8 individually, and NEW VIKING, INC., a Delaware corporation, 9 Defendants, 10 _____________________________________/ 11 Dade County Courthouse 12 73 West Flagler Street 14th Floor 13 Miami, Florida June 25, 2003 14 9:35 a.m. to 5:00 p.m. 15 16 17 The above-entitled case came on for hearing 18 before General Master John R. Farrell, pursuant to notice. 19 ------------- 20 21 22 23 24 25 SONIA TOTH & ASSOCIATES (305)854-7710 312 1 APPEARANCES: 2 EMMET, MARVIN & MARTIN, LLP 3 177 Madison Avenue Morristown, New Jersey 07960 4 BY: JUDITH SULLIVAN, Esq. and 5 EMMET, MARVIN & MARTIN, LLP 120 Broadway 6 32nd Floor New York, New York 10271 7 BY: KARLENE J. ROGERS, Esq. and 8 GENOVESE, JOBLOVE & BATTISTA, P.A. Bank of America Tower 9 100 Southeast 2nd Street 36th Floor 10 Miami, Florida 33131 BY: RICHARD SARAFAN, Esq. and AMANDA JASON, Esq. 11 Appearing on behalf of the Plaintiff. 12 AKERMAN, SENTERFITT & EIDSON, P.A. 13 One Southeast Third Avenue 28th Floor 14 Miami, Florida 33131-1704 BY: JONATHAN GOODMAN, Esq., 15 and PAM G. LEVINSON, ESQ. Appearing on behalf of the Defendant. 16 ALSO PRESENT: 17 GENOVESE, JOBLOVE & BATTISTA, P.A. 18 Bank of America Tower 100 Southeast 2nd Street 19 36th Floor Miami, Florida 33131 20 BY: JOHN H. GENOVESE, Esq. 21 JON GERALD SULLENBERGER 22 23 24 25 SONIA TOTH & ASSOCIATES (305)854-7710 313 1 I N D E X 2 WITNESS VOLUME PAGE 3 JON SULLENBERGER 4 Direct Examination By Mr. Goodman III 332 Cross-Examination By Ms. Sullivan IV 439 5 Redirect Examination By Mr. Goodman IV 504 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SONIA TOTH & ASSOCIATES (305)854-7710 314 1 E X H I B I T S 2 DEFENDANT'S VOLUME PAGE 3 Exhibit F for ID III 367 4 Exhibit G for ID III 370 Exhibit G received in Evidence III 372 5 Exhibit H for ID III 377 Exhibit I for ID III 388 6 Exhibit I received in Evidence III 389 Exhibit J for ID III 392 7 Exhibit J received in Evidence III 393 Exhibit K marked/received in Evidence III 399 8 Exhibit L for ID III 400 Exhibit M for ID III 418 9 Exhibit N for ID IV 424 Exhibit O for ID IV 433 10 Exhibit O received in Evidence IV 435 Exhibit P for ID IV 505 11 Exhibit P received in Evidence IV 506 Exhibit Q for ID IV 507 12 Exhibit Q received in Evidence IV 508 Exhibit OA received in Evidence V 530 13 Exhibit PA received in Evidence V 530 Exhibit R for ID V 543 14 Exhibit R received in Evidence V 543 Exhibit S received in Evidence V 545 15 PLAINTIFF'S VOLUME PAGE 16 Exhibit Number 2 for ID IV 468 17 Exhibit Number 2 received in Evidence IV 470 Exhibit Number 3 for ID IV 481 18 Exhibit Number 3 received in Evidence IV 482 Exhibit Number 4 for ID IV 484 19 Exhibit Number 4 received in Evidence IV 485 Exhibit Number 5 for ID IV 488 20 Exhibit Number 5 received in Evidence IV 489 Exhibit Number 6 for ID IV 490 21 Exhibit Number 6 received in Evidence IV 491 22 23 24 25 SONIA TOTH & ASSOCIATES (305)854-7710 315 1 Thereupon: 2 (The following proceedings were had:) 3 THE COURT: All right. Mr. Goodman, I 4 believe you were continuing your case, but 5 before you do, if you have not already, 6 announce your appearances. 7 Do you have the appearances? 8 THE COURT REPORTER: Yes, I do. 9 MR. GOODMAN: Your Honor, before I call 10 the witness, there are a couple of preliminary 11 matters that I need to bring to the Court's 12 attention. 13 First, you'll notice that the Plaintiff 14 has four lawyers here today representing him: 15 Ms. Sullivan, Mr. Sarafan, Ms. Rogers and 16 Mr. Genovese; four lawyers, no clients, no 17 witnesses. 18 Now, why is that a problem? You may 19 recall, Your Honor, that this evidentiary 20 hearing, a continuation, was originally 21 scheduled for June 2nd and 3rd. At the very 22 last minute Ms. Sullivan requested an 23 adjournment, a continuation, a rescheduling, 24 claiming that her clients couldn't make it, 25 they had their own scheduling conflict; and, SONIA TOTH & ASSOCIATES (305)854-7710 316 1 therefore, she asked us to agree to her 2 request. 3 As a courtesy, given the stated 4 representations that her clients could not 5 attend, we agreed. One of the understandings 6 underlying our agreement was that they would, 7 in fact, be here. That's the whole reason why 8 we agreed to reschedule it. That's the whole 9 reason why we agreed to yet another 10 postponement. I mean, keep in mind, this is a 11 set of motions that relate back to an 12 injunction entered in November. 13 Also, Your Honor, I want to call the 14 Court's attention to a memorandum that 15 Ms. Sullivan filed with the Court. It was 16 served on June 3, 2003, entitled: Objection to 17 Defendants' Motion to Compel. This is a 18 memorandum that concerned the motion on the 19 affidavits and the documents which led to the 20 hearing in front of Your Honor on June 5th. 21 And on Page 6, Your Honor, of 22 Ms. Sullivan's memorandum, she says, and I 23 quote: Moreover, Defendants will have yet 24 another opportunity at the continuation of the 25 evidentiary hearing -- that's today -- to ask SONIA TOTH & ASSOCIATES (305)854-7710 317 1 Gaumur's principals the precise questions that 2 they want answered, live, and in person, under 3 oath, unquote. 4 And so we were expecting her clients, the 5 principals of Gaumur, to be here. I suggest 6 that the Court was expecting them to be here. 7 That was the whole reason why we agreed to 8 reschedule the hearing. And lo and behold, 9 Your Honor, they're not here. 10 And I am troubled by that. I had 11 additional questions to ask them. And if they 12 weren't going to be here, we certainly didn't 13 need to have a delay of almost a month, and 14 continue the hearing that was originally 15 scheduled for June 2nd. 16 THE COURT: And so? 17 MR. GOODMAN: And so, Your Honor, I would 18 like Ms. Sullivan to explain what's going on, 19 why her clients aren't here, based on the 20 record and history that I've just recited. I 21 think it's outrageous, quite frankly. 22 THE COURT: I don't have to take a 23 position with respect to your personal views. 24 I would draw your attention to the Rule of 25 Judicial Administration, however, which SONIA TOTH & ASSOCIATES (305)854-7710 318 1 provides that, under 2.060 G: No private 2 agreement or consent between parties or their 3 attorneys concerning the practice or procedure 4 in an action shall be of any force unless 5 evidence of it is in writing, subscribed by the 6 party or the party's attorney against whom it 7 is to be alleged. 8 So if there's a stipulation that had been 9 entered into, it's not an enforceable 10 stipulation unless it's in writing, and a 11 memorandum of law does not meet that standard. 12 MR. GOODMAN: Well, Your Honor, then my 13 requested relief would be that -- 14 THE COURT: Is there a motion? You have 15 to have a motion before you can ask for relief. 16 MR. GOODMAN: Well, I guess I'm using the 17 word "motion" instead of "relief." I'll make 18 an ore tenus motion, since I was just 19 confronted with the situation this morning, 20 I'll make an ore tenus motion that the Court 21 enter an order requiring her clients to be here 22 tomorrow for the continuation of the 23 evidentiary hearing, so that I may complete my 24 questioning of them, so that the Court may hear 25 them, and so they can live up to the SONIA TOTH & ASSOCIATES (305)854-7710 319 1 representations that were previously made and 2 which caused this hearing to be continued. 3 THE COURT: Who responds for the 4 Plaintiff? 5 MS. SULLIVAN: Good morning, Your Honor, 6 Judith Sullivan from the law firm of Emmet, 7 Marvin & Martin. 8 First of all, there aren't four lawyers 9 here, there are three lawyers. Mr. Genovese is 10 merely observing. 11 Secondly, as Your Honor knows, I wrote 12 Your Honor a letter last week saying that we 13 withdrew our application for the injunction, os 14 there's no need to have my clients come for a 15 third time to continue to argue Mr. Goodman's 16 motions, especially since, in the record, 17 Your Honor, my recollection was, from the 18 transcript, that he had finished with 19 Mr. Jonsson and Mr. Johannesson, and was moving 20 on now to Mr. Sullenberger. That's when the 21 Court broke, and the Court said we'll have to 22 continue this another day because he was moving 23 onto his witness, Mr. Sullenberger. 24 There is no agreement, as Your Honor 25 points out, that we would produce our witnesses SONIA TOTH & ASSOCIATES (305)854-7710 320 1 today. 2 In addition, the quotation that he cites 3 me from was from an old memorandum of law that 4 argued a motion that Your Honor has already 5 ruled on. There have been many new events that 6 have taken place since then, some of which I 7 wrote to Your Honor about, which is new 8 litigation that the bank has brought against 9 Nordica. 10 THE COURT: May I interrupt you, please? 11 About that writing to me, I want to advise 12 you not to write to me, because that's simply 13 not the right way to approach it, for three 14 reasons. Number one, it becomes an 15 ex-communication, no matter whether you send 16 copies to opposing counsel or not, because it 17 doesn't give them an opportunity to immediately 18 respond to me or to any other -- I won't go 19 into detail, it's simply an ex parte 20 communication, and it's not proper. 21 Secondly, it puts me in the delicate or 22 indelicate position where I'm not sure whether 23 I'm supposed to respond to you and thereby 24 participate in it or disregard it or not read 25 it at all, and so I'm uniquely disenfranchised SONIA TOTH & ASSOCIATES (305)854-7710 321 1 in totality. 2 Third, if you intend to take a legal step, 3 then do it in a legal fashion, and U.S. 4 postage -- postal service and letter writing is 5 not the right way. If you want to drop a 6 claim, do so in a legal fashion. This -- it 7 leaves me completely -- 8 MS. SULLIVAN: We did file a notice of 9 withdrawal at the Clerk's Office. 10 THE COURT: That's fine and very good. 11 But I simply had to make note of it, 12 because there's no way I can handle 13 correspondence, and I routinely just disregard 14 it. I'm sorry, there's no offense intended, 15 but there's no other way to handle it. 16 MS. SULLIVAN: That's fine, Your Honor. I 17 merely bring it up to raise the point that, as 18 of last week, Mr. Goodman was aware that we 19 were withdrawing the application for the 20 injunction, and the only two I see left are the 21 Motion to Discharge the Lis Pendens and the 22 Motion for Attorney's Fees on the first 23 injunction back in November. 24 He finished with his two motions -- he 25 finished with our two witnesses. He was moving SONIA TOTH & ASSOCIATES (305)854-7710 322 1 on to Mr. Sullenberger. We didn't have any 2 motions pending. We had no agreement to 3 produce our witnesses today, therefore, I am 4 not sure I understand what the outrage is or 5 why he's prejudiced in any way. 6 THE COURT: I see no reason to take any 7 action at the present time. I don't have the 8 authority, I don't believe, were it my 9 disposition -- I'm not trying to indicate a 10 disposition in either direction -- to direct 11 them to have witnesses present. That simply 12 goes beyond the purview of a court, at least a 13 civil court. Perhaps the rules are different 14 in criminal proceedings, I can't attest to 15 that. 16 So if your motion requires a response, I 17 would deny the motion at the present time 18 without prejudice because of uncertainty of the 19 grounds, unfamiliarity of the grounds. I'm 20 not -- you may be able to show me something at 21 a later time, in which event I will 22 re-entertain it. But at the present time, on 23 what I have before me, I have to deny the 24 motion. 25 MR. GOODMAN: May I just make a comment, SONIA TOTH & ASSOCIATES (305)854-7710 323 1 Your Honor, to supplement the record so that 2 it's complete? 3 Ms. Sullivan is correct that she did send 4 us a notice that she was withdrawing that 5 motion. She did not, however, at the time, 6 say: And by the way, we're not going to be 7 producing our witnesses, or by the way -- 8 THE COURT: Mr. Goodman, thank you. I 9 don't think we need to get involved in tit for 10 tat, because when you complete what you want to 11 say, Ms. Sullivan is going to want to respond 12 to that, and I believe we're going to reach 13 this infinite point in space. 14 I understand your position, I think, and 15 there's no need to elaborate. 16 MR. GOODMAN: All right. The second 17 issue, Your Honor, that needs to be addressed, 18 you may recall that when we were in front of 19 Your Honor last, on June 5th, we had a hearing 20 on a discovery issue, and you had ruled that 21 they were required to produce certain 22 documents. 23 THE COURT: Correct. 24 MR. GOODMAN: Originally, you said ten 25 days. SONIA TOTH & ASSOCIATES (305)854-7710 324 1 At that point, Mr. Sarafan said: Well, 2 give me one additional day because we may want 3 to take an appeal or file objections with the 4 Circuit Court Judge, Judge Harnage, and you 5 gave them one extra day, which would be up 6 through and including June 16th. 7 They did not produce the documents by 8 June 16th. They did not file a motion to be 9 excused from producing the documents. They 10 didn't notify me that they weren't producing 11 the documents. They didn't seek any type of 12 relief. They simply didn't produce the 13 documents. 14 At about 9:10 this morning, I was handed a 15 15-page memorandum which purports to be their 16 objections to your ruling, along with what 17 looks to be about 100 or 125 pages of exhibits, 18 but our view is that this is too little too 19 late. The documents should have been produced. 20 They had until the 16th, they didn't do it. 21 It's now the 25th, and we would ask that 22 you impose sanctions for not complying with 23 this Court's order, and not timely pursuing an 24 objection if they were going to be doing that. 25 THE COURT: Obviously, I'm not familiar SONIA TOTH & ASSOCIATES (305)854-7710 325 1 with the document that you referred to. Is it 2 objections, you say? 3 MR. GOODMAN: It's entitled, Your Honor: 4 Objections to General Master's Report and 5 Recommendation, and it looks, on the face of 6 it, as though they filed it this morning, 7 June 25, 2003. 8 We had filed, Your Honor, several days -- 9 THE COURT: Is there a certificate of 10 service on it? 11 MR. SARAFAN: Today, Your Honor. 12 MR. GOODMAN: Let me see. 13 THE COURT: Mr. Sarafan indicates today. 14 MR. GOODMAN: Yes, it was handed to me 15 this morning. 16 And we had filed, several days ago, 17 Your Honor, a Motion to Compel, pointing out 18 that you entered a ruling, they were supposed 19 to produce the documents by the 16th, it hasn't 20 been done, and here we are, once again, without 21 the documents. 22 THE COURT: Well, let's see, what was the 23 date the report was served, my report? 24 MR. GOODMAN: I'm going by recollection, 25 but I believe -- SONIA TOTH & ASSOCIATES (305)854-7710 326 1 THE COURT: Well, we can't, because the 2 time stamp, the date, is important. 3 MR. GOODMAN: Right. I believe there was 4 a formal written memorialization of your ruling 5 in the report, was served on the 16th. 6 THE COURT: All right. If it was the 7 16th, then does not the Rule 1.410 provide that 8 they have ten days within which to file 9 exceptions? 10 MR. GOODMAN: The rule does say that. 11 THE COURT: Ten and 16 would be 26. 12 MR. GOODMAN: Indeed. We have a little 13 bit of an unusual circumstance here, 14 Your Honor, because your ruling imposed a 15 particular deadline for them to provide 16 documents. Your ruling -- 17 THE COURT: To save some time, 18 Mr. Goodman, my ruling has no force or effect 19 unless and until it's adopted or rejected. 20 When exceptions are sought in a timely 21 fashion -- this is my understanding, perhaps 22 you have law to the contrary -- when the 23 exceptions are taken in a timely fashion, to 24 the extent of any viability of my magical 25 words, they are all held in nubibus. They just SONIA TOTH & ASSOCIATES (305)854-7710 327 1 are all frozen until the referring judge makes 2 a determination whether or not they are proper 3 and appropriate, wants to adopt them for and 4 apart. 5 MR. GOODMAN: Yes, I'm familiar with that 6 case law, Your Honor, and you're entirely 7 correct. 8 I'm not familiar with the rather unusual 9 situation where you have a date in an order to 10 comply, but I'll move on, because I understand 11 the Court's ruling, and I candidly don't have a 12 case to the contrary, so I'm simply putting our 13 position on the record, and I'll move on to the 14 next issue. 15 THE COURT: I think that it's incumbent, 16 if anyone wants to have the exceptions heard, 17 somebody is going to have to seek notice of a 18 hearing, file a notice of a hearing before the 19 referring judge. 20 MR. GOODMAN: Yes. 21 THE COURT: And that may be you or it may 22 be the persons who have filed the exceptions. 23 MR. GOODMAN: Yes, Your Honor. I think 24 that's the right procedure. 25 THE COURT: That's all I can do with that SONIA TOTH & ASSOCIATES (305)854-7710 328 1 right now, Mr. Goodman. 2 Is there anything further before we 3 proceed? 4 MR. GOODMAN: One other issue, and I don't 5 know if I'll be striking out zero for three, 6 Your Honor, but let me put it on the record 7 anyway. 8 One of the other issues that I think has 9 been presented to the Court, albeit through a 10 letter from Ms. Sullivan to the Court, is she 11 had submitted to Your Honor a proposed report 12 and recommendation the other day in which she 13 wanted you to enter an order based on something 14 that happened about two months ago at a hearing 15 that she was not at, based on some 16 off-the-record comments that she believes you 17 may have made. 18 And we had objected to that proposed 19 report, and I haven't heard the Court's 20 position on that. 21 THE COURT: I don't think I've signed 22 anything. 23 MR. GOODMAN: All right. 24 THE COURT: So whatever it is -- in fact, 25 I don't recall having read it, because as I SONIA TOTH & ASSOCIATES (305)854-7710 329 1 indicated a few moments ago, I try not to read 2 correspondence that comes, because I don't know 3 the correct way to handle it other than to 4 treat it with indifference. 5 MR. GOODMAN: All right, Your Honor. 6 THE COURT: So that's the status of it, as 7 best I understand at the present moment. Okay. 8 MR. GOODMAN: Then, in that case, 9 Your Honor, we'll call as our first witness in 10 connection with our Motion to Dissolve the 11 Lis Pendens and the Notice of Claim and/or to 12 Require a Bond, we'll call Mr. Sullenberger as 13 our first witness. 14 THE COURT: All right. Mr. Sullenberger, 15 if would you, please. 16 While you're coming up here -- come on up 17 here, Mr. Sullenberger -- I was reading these 18 materials this morning, and the question 19 occurred to me, and I wonder if you could 20 answer, if someone could, when was the 21 foreclosure -- well, actually, would you swear 22 the witness. 23 Thereupon: 24 JON GERALD SULLENBERGER 25 was called as a witness by the Defendants, SONIA TOTH & ASSOCIATES (305)854-7710 330 1 and after being first duly sworn, was examined 2 and testified under oath as follows: 3 THE COURT: When was the foreclosure 4 action involving the vessel filed in the 5 federal court; do you recall? 6 MS. SULLIVAN: I don't recall, Your Honor, 7 without my file. 8 THE COURT: It was a long time before, I 9 presume, this action was filed? 10 MR. GOODMAN: No, no, Your Honor. This 11 lawsuit was filed by the Plaintiff, Gaumur. 12 THE COURT: I'm just interested in time. 13 MR. GOODMAN: Yes. I'm going to tell you 14 time wise. This lawsuit we're here on today 15 was filed in November. The ex parte injunction 16 was entered in November, it was dissolved in 17 January; and, I believe, after that, the bank 18 filed its foreclosure action in federal court 19 against the boat. 20 And you may recall, and I hope I'm stating 21 it correctly, before the last evidentiary 22 hearing, or at that first day of the hearing, 23 before the testimony began, I pointed out to 24 the Court that the bank had, in fact, filed a 25 foreclosure action against the boat, because I SONIA TOTH & ASSOCIATES (305)854-7710 331 1 wanted the Court to be aware of what was 2 happening. 3 THE COURT: Right. 4 MR. GOODMAN: So sometime between, my 5 guess is January and April; but I am not 6 involved in representing Mr. Sullenberger or 7 Nordica or New Viking in that federal court 8 lawsuit, which is why I don't have a better 9 sense of the timing. 10 THE COURT: I asked the question because I 11 want to try to be delicate about trying to 12 avoid interfering with any property that might 13 be within the bosom of the federal court, and 14 timing seems to be one of the relevant factors 15 to be considered in trying to evaluate the 16 extent to which this activity should proceed. 17 But you've given me enough information, I 18 think, to proceed on. So proceed, if you 19 would, please. 20 MR. GOODMAN: All right. Your Honor. May 21 I have the Court's permission to move the 22 podium a little bit? 23 THE COURT: Yes, sir. 24 And move around -- who will be handling 25 this witness? Ms. Sullivan, move around if you SONIA TOTH & ASSOCIATES (305)854-7710 332 1 wish so that you are in position to hear all 2 the questions and responses. 3 DIRECT EXAMINATION 4 BY MR. GOODMAN: 5 Q Good morning. Tell us your name, sir. 6 A Jon Gerald Sullenberger. 7 Q Mr. Sullenberger, would you, in summary 8 fashion, explain to the Court a little bit about 9 your personal background, where you were born, when 10 you came to this country, and what you've been 11 doing. 12 A I'm born in Iceland, Reykjavik, Iceland. 13 I came to Miami in 1986 to go to FIU, and I've been 14 here since. 15 I am married. I have two children. We 16 live in Coral Gables. We formed our company, me and 17 my wife, back in 1991, and the name of the company 18 is Nordica. 19 Q Are you also a U.S. citizen now? 20 A Yes, I am a U.S. citizen. 21 Q All right. And your children go to school 22 here in Miami? 23 A Yes, sir. 24 Q Can you explain to the Court, again, in 25 somewhat of a summary fashion, the circumstances SONIA TOTH & ASSOCIATES (305)854-7710 333 1 under which you first met Johanness Jonsson and 2 Jon Johannesson, the father and son who are involved 3 with Gaumur, the Plaintiff, and Baugur? 4 A I met the son at a gathering in Iceland. 5 He is married to a lady that is the sister of my 6 wife's husband, and he knew that I was based in 7 Miami. He asked me to look into some product, food 8 product, because they had just opened up 9 supermarkets, and that's basically how I got to know 10 these two gentlemen. 11 Q What is the name of the supermarket that 12 the father and son, or the companies which they were 13 involved in, had opened in Iceland, the name of 14 those grocery stores? 15 A The name of the company was Bonus. 16 Q All right. And did you or Nordica begin 17 doing business with the father and son and their 18 companies? 19 A Yes, we started, if I can recall, in 1992, 20 we start buying and selling them, exporting to them, 21 dry groceries to Bonus stores in Iceland. 22 Q And when you say "we were exporting," you 23 mean Nordica? 24 A Yes, me and my wife and Nordica. 25 Q All right. And that continued for a SONIA TOTH & ASSOCIATES (305)854-7710 334 1 period of several years? 2 A Yes, all the way up until June of 2002. 3 Q In addition to doing business with the 4 father and son and their companies, did you also 5 socialize with the father and the son? 6 A Yes, I did. We came to be very good 7 friends. They used to come here often. They 8 brought down here their associates; and, at the same 9 time, when we visit Iceland, we met them and 10 associate over there. 11 Q I'm sorry, I didn't catch the last part of 12 your statement. 13 A We socialized in Iceland. 14 Q You socialized in Iceland? 15 A When I came there, yes. 16 Q I want to call your attention to the 17 purchase of the first boat, and I'd like for you to 18 explain to General Master Farrell how that came 19 about and what the agreement was for the purchase of 20 the first boat. 21 A That was back in 1996, in the spring. 22 Prior to that, Jon and his family had been coming 23 here often, and we had rented vessels or boats, and 24 we talked about buying one. 25 I made a phone call in the spring of '96, SONIA TOTH & ASSOCIATES (305)854-7710 335 1 and told -- asked him if he would be interested to 2 go forward with what we had talked about, going into 3 partnership with the boat. He said sure. 4 I went out and I looked for a boat around 5 July. I found one. I called him back. I told him 6 I had found a 40-foot Sea Ray down in the Keys, and 7 I had looked at it, and it looked in good shape, and 8 he said fine. 9 At that time, I made an offer on the boat. 10 I was in phone contact with Jon Asgeir, the son, and 11 that's how I came along. 12 Q So did you and the son jointly agree to 13 buy a boat together? 14 A Yes, that's correct. 15 Q And what was the agreement concerning who 16 would be responsible for paying for the boat, the 17 purchase price, and who would be responsible for 18 making the maintenance payments and other expense 19 payments for the first boat? 20 A The agreement was that I was going to be 21 responsible for the boat. I was going to be 22 responsible for buying it, taking care of it, 23 maintaining it, and getting a loan for it to 24 purchase it. 25 And the agreement was basically, my SONIA TOTH & ASSOCIATES (305)854-7710 336 1 company, Nordica and myself, we would be responsible 2 to pay, and then, in turn, I would send an invoice 3 to Bonus for reimbursement. 4 Q Did you ever have an agreement concerning 5 the first boat with Gaumur, the Plaintiff in this 6 case? 7 A No, I never did. Gaumur didn't even exist 8 back in 1996. 9 Q Did you have an agreement with Gaumur 10 concerning this first boat that Gaumur would lend 11 you or Nordica money to buy the first boat? 12 A No, never. 13 Q What arrangements were made -- withdrawn, 14 let me phrase the question differently. 15 Explain to the Court how the first boat 16 was paid for; if there was a loan, who took it out, 17 what deposits were made, that sort of thing. 18 A The first boat was bought by a loan from 19 Ready State Bank that I acquired. The loan was for 20 $135,000. 21 At that time, I was not able to get the 22 loan on my own, so I had told the son that if it 23 would be possible to open up a letter of credit to 24 guarantee the loan if we would run into default, and 25 he said no problem. SONIA TOTH & ASSOCIATES (305)854-7710 337 1 At that time, if I can recall, in July of 2 '96, Bonus opened up a standby letter of credit for 3 one year. In return, I took the letter of credit to 4 Ready State Bank, and Ready State Bank issued a 5 money order for $135,000, the difference, which was 6 around 35- to $45,000, I paid for, and a portion of 7 that was, in turn, invoiced to Bonus, and Bonus 8 reimbursed me. 9 Q When you say "I made the payments," do you 10 mean you, personally, or Nordica? 11 A Nordica did. 12 Q All right. And the standby letter of 13 credit, was that posted in order to obtain the loan 14 which was used to buy this first boat? 15 A That is correct. 16 Q Did Gaumur, the Plaintiff here, post the 17 letter of credit? 18 A No, they did not. 19 Q Did you submit to the bank any Gaumur 20 financial statements or records in order to convince 21 the bank to make the loan for the first boat? 22 A No, I did not. 23 Q As far as you know, did the bank even know 24 of Gaumur's existence in connection with the loan 25 for the first boat? SONIA TOTH & ASSOCIATES (305)854-7710 338 1 A No, they did not. 2 Q Why was it, Mr. Sullenberger, that 3 Nordica -- let me ask another question first. 4 The loan from Ready State Bank, was that 5 officially taken out by you, Jon Sullenberger, or by 6 the company, Nordica? 7 A No, that loan was taken out by Nordica and 8 me, personally. I was the guarantor. 9 Q All right. Now, why did Nordica take out 10 the loan from Ready State Bank instead of the son or 11 the father or their companies in Iceland? 12 A They main reason for that is that I had 13 the bank relationship here in Miami, Bonus did not, 14 or the father or the son, have any banking 15 relationship down here. I would think that's the 16 main reason for that. 17 Q Based on comments made by the father and 18 son, did they want their involvement with the boat 19 to be known? 20 A No, they did not. 21 Q Is that another reason why they, or their 22 companies, did not apply for financing for this 23 first boat? 24 A That would be one of the reasons. Bonus 25 was a discount store, they did not want anybody to SONIA TOTH & ASSOCIATES (305)854-7710 339 1 know that they were making that kind of money that 2 they could afford owning -- have an ownership in a 3 boat. 4 And, basically, that was an agreement, 5 that this was supposed to be held secret from 6 anybody in Iceland that they had any involvement in 7 that boat. 8 Q All right. Now, did the father and the 9 son use the first boat at all? 10 A Yes, they did. 11 Q Who was responsible, on a day-to-day 12 basis, for maintaining the boat, storing the boat, 13 obtaining insurance, supplies, and, in general, 14 making sure that the boat was operating efficiently 15 and in a good manner? 16 A I was. 17 Q That was your job? 18 A That was my job. 19 Q Did you or Nordica make payments in 20 connection with this first boat? 21 A Yes, we did. 22 Q This is after the purchase, I'm talking 23 about. 24 A That's correct, yes. 25 Q All right. And did you submit invoices to SONIA TOTH & ASSOCIATES (305)854-7710 340 1 be reimbursed for those expenses? 2 A Yes, I did. 3 Q Did you obtain payment for either the 4 purchase of the boat, the first boat, or the 5 expenses from Bonus? 6 A Yes, we did. 7 Q Explain to us how it came to be that a 8 second boat was purchased. 9 A That was in 1997. The first boat had a 10 gas engine, and we thought it would be safer to have 11 a diesel engine, so that's how that discussion 12 started. 13 They -- if I can recall, in June of 1997, 14 we visited a boat company, Bassett Boat at that 15 time, to look at a larger boat. And they had a 16 50-foot Sea Ray that they showed us, but it had been 17 sold to a different entity, but there was a problem 18 with that, so they told us this boat might become 19 available. 20 Q Mr. Sullenberger, in the interest of 21 moving things along, instead of telling us about 22 boats that you did not buy, just tell us about the 23 boats that you did buy. 24 A Okay. But this was the -- that was the 25 boat. They told us that this boat might become SONIA TOTH & ASSOCIATES (305)854-7710 341 1 available, and we said if it will, please contact 2 me. And that's what happened. 3 On around end of June '97, Bassett Boat 4 contacted me. I gave them a deposit, actually, from 5 Nordica, to purchase that boat if the boat would 6 become available, and that's what happened. 7 Q All right. Now, when you told us that: 8 We went to Bassett Boat to look at a boat, who did 9 you mean when you used the word "we"? 10 A It was me and the son, Jon Asgeir. 11 Q All right. What was the agreement between 12 you and the son and the father concerning allocating 13 responsibility for payment of the boat and payment 14 for the purchase of the boat and expenses? 15 A The agreement was basically, at that time, 16 only between me and the son. We were going to share 17 the expenses. I was going to be responsible for it, 18 responsible for getting the financing and 19 maintaining care of the vessel. 20 Q Was there an agreement with Gaumur, the 21 Plaintiff here, Gaumur, for purchasing the second 22 boat? 23 A No, never. 24 Q Was there an agreement with Gaumur 25 concerning responsibility for paying expenses on the SONIA TOTH & ASSOCIATES (305)854-7710 342 1 second boat? 2 A No, never. 3 Q Was there an agreement as to how the 4 ownership of the boat would be divided? 5 A No, there was not. 6 Q Generally, it was you and the son would, 7 in effect, own it together? 8 A That's correct. 9 Q Who took title to the second boat? 10 A I did. 11 Q When you mean "I," do you mean 12 Sullenberger or Nordica? 13 A No, I, Jon Sullenberger. 14 Q Why was it that you, Mr. Sullenberger, 15 took title to the second boat instead of either the 16 son or Baugur or Gaumur or one of their other 17 Icelandic companies? 18 A The reason for that, first of all, is that 19 I was the one responsible, I was the one that got 20 the mortgage for the boats; plus, there was an 21 agreement that nobody in Iceland was supposed to 22 know that they had anything to do with this boat. 23 Q Explain to the Court how the second boat 24 was purchased. 25 A The second boat was purchased by trading SONIA TOTH & ASSOCIATES (305)854-7710 343 1 in the first boat, and a check for $200,000, that 2 was issued to Nordica from Bonus, and the mortgage 3 for 247,000, if I can recall. 4 Q Approximately 247,000? 5 A 247,000, yes, sir. 6 THE COURT: Excuse me. 247,000 mortgage 7 money in addition to the $200,000 check, or was 8 it -- can you straighten that out, please? 9 MR. GOODMAN: I can. 10 BY MR. GOODMAN: 11 Q Would you explain to the General Master. 12 A Yes, sir, that's how it was. 13 Q It was a $200,000 payment, plus a mortgage 14 of approximately $247,000? 15 A That's correct, plus -- 16 Q -- and the trade-in? 17 A -- plus the $165,000 trade-in, yes, sir. 18 Q All right. Who was responsible for the 19 second boat? 20 A I was. 21 Q Explain to us, in general, what kinds of 22 things you were responsible for on the second boat. 23 A I was responsible for buying the boat, 24 inspecting the boat, getting a mortgage for the 25 boat, finding a place for the boat, and maintaining SONIA TOTH & ASSOCIATES (305)854-7710 344 1 the boat; basically, responsible for the boat, 2 everything that related to the vessel. 3 Q Were you involved in procuring insurance 4 for the boat? 5 A Yes, I was. 6 Q Finding docket space? 7 A That's correct. 8 Q Finding provisions and supplies whenever 9 it was used? 10 A That's correct. 11 Q By the way, this $200,000 check that was 12 used to partially pay for the purchase of the second 13 boat, was that check from a Gaumur bank account, the 14 Plaintiff here? 15 A No, it was not. 16 Q Did Gaumur ever lend you money for 17 purchasing the second boat? 18 A No, they did not. 19 Q Any agreement with Gaumur concerning the 20 purchase of the second boat? 21 A No, there was no agreement. 22 Q What instructions, if any, did you receive 23 concerning documents which you would submit in order 24 to obtain reimbursement for expenses which Nordica 25 paid in connection with the second boat? SONIA TOTH & ASSOCIATES (305)854-7710 345 1 A I was instructed to make invoices the way 2 that they could hide the fact that they were paying 3 for their share in the boat. They usually gave me 4 the text. It was basically to hide the fact that 5 that was a payment regarding the boat. 6 Q What's your understanding as to why they 7 wanted you to disguise the nature of the boat 8 payments when you requested reimbursement payments? 9 A They did not want anybody in Iceland to 10 know that they had any interest in any boat here in 11 Miami. That was the main reason. 12 And the other reason is to make their 13 company, Bonus, pay, or any of the companies pay for 14 their expenses. 15 Q Such as Baugur? 16 A That's correct. 17 Q Did you ever receive any money from Baugur 18 in connection with either the first or the second 19 boat? 20 A No. 21 Q Did you receive money from Baugur in 22 connection with the third boat, which we'll get to 23 in just a minute? 24 A Yes, I did. 25 Q Was there an agreement as to a designated SONIA TOTH & ASSOCIATES (305)854-7710 346 1 amount of money for which you would seek 2 reimbursement on a monthly basis? 3 A Not for the first or the second boat, no; 4 but for the third, yes. 5 Q All right. I'm getting ahead of myself a 6 little bit, so we'll get to that in just a minute. 7 Concerning the second boat, did the father 8 and the son use the second boat? 9 A Yes, they did. 10 Q Did either the father or the son stay on 11 the second boat when they visited South Florida? 12 A Yes, they did. 13 Q What types of uses did the father and son 14 make of the second boat? 15 A They brought down their associates, store 16 managers, bankers, they brought down their family, 17 friends. 18 Q Excuse me just a moment. 19 How did it come about that the second boat 20 was traded in and a third larger, more expensive 21 vessel, was purchased? 22 A The main reason for that was that the 23 father had started to spend more time here, and the 24 second boat was an express boat, meaning that it was 25 not a fly bridge boat, so he wanted a larger boat so SONIA TOTH & ASSOCIATES (305)854-7710 347 1 it would be more comfortable to spend more than a 2 week, ten days, on the boat. That was basically the 3 main reason. 4 Q What was the agreement concerning the 5 purchase of the third boat -- let me phrase it 6 better. 7 What agreement was reached concerning 8 ownership of the third boat? 9 A When we agreed to buy the larger boat, I 10 had mentioned to them that this was getting -- the 11 amounts and the complicity of it was getting -- the 12 way that I wanted to break this away from my 13 company, Nordica, and form a new company regarding 14 the third boat. 15 So, at that time, when we bought the third 16 boat, I decided to form a new company called 17 New Viking, Inc. It was supposed to be the owner. 18 All the funds and expenses was supposed to be paid 19 through that account. 20 I had -- we traded in the boat number two 21 for number three. New Viking took a loan, a 22 mortgage, out of Union Planters Bank for the 23 difference. New Viking was responsible for that 24 loan, and I was the guarantor. 25 Q Let me just step back for an instant and SONIA TOTH & ASSOCIATES (305)854-7710 348 1 ask you a question about the second boat which I 2 neglected to ask you. Did you attend the closing 3 for the purchase of the second boat? 4 A Yes, I did. 5 Q Where did that closing take place? 6 A At Bassett Boat up in Pompano Beach. 7 Q Now, the $200,000 check which was used for 8 the partial payment on the second boat, was that 9 check made out to the bank or to Nordica? 10 A It was made out to Nordica. 11 MS. SULLIVAN: Objection, Your Honor, the 12 check is the best evidence, and that has 13 already been admitted. 14 THE COURT: Sustained. 15 BY MR. GOODMAN: 16 Q Why was the check made out to Nordica 17 instead of to the bank? 18 A That was basically so they could -- so 19 they were able to show on their books that they were 20 paying to Nordica, because Nordica had been in 21 business, selling goods to Bonus, for the past six 22 years. 23 MS. SULLIVAN: Objection, Your Honor, his 24 testimony is speculation. There have been 25 several speculative answers. I've held my SONIA TOTH & ASSOCIATES (305)854-7710 349 1 objections until now. 2 THE COURT: I think that's probably 3 correct. 4 May I suggest, in the future, if you're 5 going to make an objection based upon 6 speculation, please make it before the answer 7 is given, because it's very difficult to say 8 your objection is sustained once his answer 9 comes out; on the same basis, just ask you to 10 work with me. 11 I'm going to overrule it at this time. 12 Mr. Goodman, if you would make an 13 observation concerning my ruling. 14 BY MR. GOODMAN: 15 Q Yes. The second boat, what bank was 16 involved in financing the purchase of the second 17 boat? 18 A It's called Key Bank. 19 Q Key Bank. 20 Did either the father or the son tell you 21 that they wanted their interest in the second boat 22 to also remain secret or hidden? 23 MS. SULLIVAN: Objection, Your Honor. 24 THE WITNESS: Yes, they did. 25 THE COURT: Grounds? SONIA TOTH & ASSOCIATES (305)854-7710 350 1 MS. SULLIVAN: Leading. 2 THE COURT: Sustained. 3 Strike on motion. 4 BY MR. GOODMAN: 5 Q When you were dealing with the second 6 boat, what steps, if any, did you take 7 concerning -- rephrase. 8 When you made arrangements to buy the 9 second boat, what instructions, if any, did you 10 receive from the father or the son concerning their 11 involvement in the transaction, the public 12 involvement in the transaction? 13 A Basically, both for the first and the 14 second boat, when they brought people down here, 15 they always told the people that this was my boat. 16 They requested there were no pictures taken on the 17 boat. We were not allowed to have a log on the 18 boat, and -- 19 Q I'm sorry, a lock or a log? 20 A Log. 21 THE COURT: Log, L-O-G. 22 THE WITNESS: Yeah. 23 And that was basically what they demanded, 24 that -- that was the issue. 25 BY MR. GOODMAN: SONIA TOTH & ASSOCIATES (305)854-7710 351 1 Q All right. And did your submission of 2 invoices for the first and second boat follow that 3 instruction? 4 A Yes. 5 Q Now to the third boat. Did Gaumur pay any 6 money, an actual check or wire transfer, for the 7 purchase of the third boat? 8 A No. 9 Q How was that purchase structured? 10 THE COURT: Hold it just a second, if you 11 would. I'm not going to interrupt this, I just 12 want to think out loud. 13 All of this is very interesting, and I 14 cannot say it's not relevant to the subject 15 matter of these proceedings, "these 16 proceedings" being this lawsuit; however, this 17 proceeding, specifically, is a Motion to 18 Dissolve a Lis Pendens, and I wonder if we're 19 not doing an awful lot of deep-well drilling 20 here for the specific and singular purpose of 21 determining whether or not there is merit to 22 the Motion to Dissolve the Lis Pendens. 23 I have a feeling -- no offense intended, 24 and I'm sure none taken -- that, inadvertently, 25 we're beginning to sort of move into, SONIA TOTH & ASSOCIATES (305)854-7710 352 1 contingent or not, a determination on the 2 merits to some extent of the case, based upon 3 the historic basis of it, and this case is 4 still subject to an outstanding Motion to 5 Dismiss. 6 Now, taking all of that into 7 consideration, and please, I mean no offense to 8 anyone, because all of these things are 9 interesting, but I wonder if we need to go into 10 the historic depth and detail. 11 I'm not going to stop you on this boat 12 three thing, but please try to keep that in 13 mind, because the matter we are addressing 14 right now, unless I overlooked something, is 15 whether or not the lis pendens should be 16 dissolved, and if so, under what terms. 17 MR. GOODMAN: Yes, you are absolutely 18 right, Your Honor, that is the motion. I 19 appreciate the Court's comments. I don't 20 disagree with Your Honor that some of the 21 testimony may have a dual relevance, it may 22 relate to this motion, as well as to the 23 lawsuit itself. 24 THE COURT: True, but that's not my job. 25 MR. GOODMAN: Yes. SONIA TOTH & ASSOCIATES (305)854-7710 353 1 THE COURT: In fact, it may well be beyond 2 the scope of my authority in terms of referral. 3 MR. GOODMAN: Right. 4 THE COURT: You see, I'm trying to stay 5 focused on what Chapter 48 says, which says: 6 When the initial pleading does not show that 7 the actions founded on the duly recorded 8 instrument, or on a lien claimed under part one 9 of Chapter 713, the Court may control and 10 discharge the notice, et cetera, et cetera, as 11 it might do concerning injunctions. 12 And I just don't -- I'm not sure I need to 13 go, as I characterized it, deep drilling to 14 find out whether or not there's water or oil 15 under there. 16 MR. GOODMAN: Right. Your Honor, let me, 17 if I can, succinctly tell you, if you don't 18 mind, where I'm going and why I think it's 19 relevant. 20 THE COURT: Well, I'd kind of rather not 21 do that, because then I virtually, if not 22 literally, legally, am obligated to allow the 23 other side to have equal time. It gets into 24 argument. Can't do that. 25 I'm just going to ask you to try to be as SONIA TOTH & ASSOCIATES (305)854-7710 354 1 brief as you can, because we've worked this 2 thing up to boat three, which is kind of where 3 we really could have summarized, may have 4 been -- 5 MR. GOODMAN: I understand your comments, 6 Your Honor. 7 THE COURT: I'm not faulting you at all, 8 but we're trying a lawsuit before the lawsuit 9 is to be tried. 10 MR. GOODMAN: I am in no way offended or 11 troubled, Your Honor, and I appreciate your 12 comments. 13 THE COURT: Sure. Please go ahead. 14 BY MR. GOODMAN: 15 Q Mr. Sullenberger, you are aware that the 16 claim in this case, and the lien, and the 17 lis pendens, was filed by Gaumur? 18 A That's correct. 19 Q Did Gaumur make any payments by check or 20 wire transfer for the direct or partial purchase of 21 the third boat? 22 A No, they did not. 23 Q How was the purchase of the third boat 24 structured if Gaumur did not make any direct 25 financial payments? SONIA TOTH & ASSOCIATES (305)854-7710 355 1 A The second boat was traded in for 2 $195,000. There was a check issued by 3 Union Planters Bank for $610,000, and that was the 4 purchase of boat number three. 5 Q So it was a trade-in and financing? 6 A That's correct. 7 Q All right. Did you or Nordica or 8 New Viking have an agreement with Gaumur that Gaumur 9 would be a part owner of the boat? 10 A No, we did not. 11 Q Did you, in fact, form a separate 12 corporation in order to address your concern that 13 you wanted this to be carved out of your Nordica 14 business? 15 A Yes, I did. 16 Q And the name of that corporation? 17 A The name of that corporation is 18 New Viking, Inc. 19 Q Does New Viking, Inc., sir, have any other 20 business purpose in the world other than owning, 21 maintaining and operating the third boat? 22 A No, they don't. 23 Q What was the approximate purchase price of 24 the third boat? 25 A One-million-one. SONIA TOTH & ASSOCIATES (305)854-7710 356 1 Q $1,100,000? 2 A That's about right, yes. 3 Q What is the name of the third boat? 4 A "Thee Viking." 5 Q T-H-E-E, "Thee Viking"? 6 A Right, that's correct. 7 Q What was the name of the entity which took 8 out the loan from Union Planters Bank to purchase 9 the third boat, "Thee Viking"? 10 A New Viking, Inc. 11 Q Did you also provide a personal guarantee 12 for that loan? 13 A Yes, I did. 14 Q Did Gaumur lend you any money for the 15 purchase of the third boat? 16 A No, they did not. 17 Q Although the legal title to the boat was 18 in the name of New Viking, Inc., what was your 19 agreement, in practical terms, as to who the owners 20 of the third boat are? 21 A The agreement was that I, the father, and 22 son, we owned this together. 23 Q Did you have a meeting in Iceland to 24 discuss, among other things, the third vessel? 25 A Yes, we did. SONIA TOTH & ASSOCIATES (305)854-7710 357 1 Q Who was present at that meeting? 2 A Tryggvi Jonsson and Jon Asgeir 3 Johannesson, the son, and myself. 4 Q And Tryggvi Jonsson, would you explain to 5 General Master Farrell who Tryggvi Jonsson is. 6 A Tryggvi Jonsson used to be their 7 accountant, and he came to be the CEO of 8 Baugur Group, and then in 2002, came to be the 9 president of Baugur Group. 10 Q All right. And what happened at the 11 meeting in Iceland concerning the third boat? 12 A In that meeting, we discussed how the 13 third boat was supposed to be paid for, meaning the 14 maintenance, the dockets, the payments for the 15 mortgage and so on. 16 And at that meeting, Tryggvi wanted a 17 fixed amount per month, and I was instructed to make 18 an invoice to Baugur Group, in the beginning, for 19 $8,000. He told me the text had to be a contract 20 fee, service fee. 21 Q For the monthly payment? 22 A For the monthly payment, yes. 23 Q Now the monthly payment was supposed to be 24 for boat expenses? 25 A That's correct. SONIA TOTH & ASSOCIATES (305)854-7710 358 1 Q But Tryggvi Jonsson told you at the 2 meeting in which the son attended to send invoices 3 with an incorrect description? 4 A That is correct. 5 Q Why is that? 6 A First of all, they wanted to hide their 7 ownership in this vessel -- 8 MS. SULLIVAN: Objection, Your Honor. I'm 9 sorry. 10 THE COURT: Sustained. 11 THE WITNESS: They wanted to hide their 12 ownership -- 13 MR. GOODMAN: When the Court says 14 "sustained," that means don't speak any 15 further. 16 THE WITNESS: Oh, sorry. 17 BY MR. GOODMAN: 18 Q What did Tryggvi Jonsson -- 19 THE COURT: I have a question. If, as I 20 understood your testimony, you 21 and -- functionally, to use your phrase, you 22 and the father and the son owned, or would own 23 the "Thee New Viking (sic)," what's 24 Tryggvi Jonsson doing involved in this 25 discussion at all? SONIA TOTH & ASSOCIATES (305)854-7710 359 1 THE WITNESS: Because -- can I answer? 2 THE COURT: Yes, please do. 3 THE WITNESS: Because Jon Asgeir had 4 appointed Tryggvi to be responsible for all the 5 relationship regarding the boat, and payments, 6 and he was the financial officer. 7 THE COURT: The son, is that Jon? 8 THE WITNESS: Jon, yes, the son. 9 THE COURT: So what you're telling me is, 10 it is your understanding, or your testimony is 11 that the son appointed or designated Tryggvi as 12 his agent on behalf of the son, or maybe the 13 son and the father, to do this negotiation. Is 14 that what you're telling me? 15 THE WITNESS: That's correct. 16 THE COURT: I don't mean to be getting 17 involved with this, Mr. Sarafan or 18 Mrs. Sullivan, but I was getting a little lost 19 in this Tryggvi stuff. 20 Thank you. That was very helpful. 21 MR. GOODMAN: Appreciate that, Your Honor. 22 BY MR. GOODMAN: 23 Q Now, Tryggvi Jonsson, you mentioned, was 24 an executive of Baugur? 25 A That is correct. SONIA TOTH & ASSOCIATES (305)854-7710 360 1 Q Did you receive -- did Nordica receive 2 payments from Baugur for the monthly boat expenses? 3 A Yes, sir. 4 Q And what instructions did you receive 5 concerning submission of invoices to Baugur? 6 A In the beginning, it was a verbal decision 7 or explanation, what was supposed to be on the 8 invoice. It was supposed to be some kind of 9 contract fee, commission fee, commission finding 10 fee, and it had to be a fixed amount. And the 11 invoice had to be to Bonus -- to Baugur, and that's 12 what it was. 13 Q And so Nordica was receiving reimbursement 14 payments from Baugur in connection with the third 15 boat; is that right? 16 A That's correct. 17 MS. SULLIVAN: Objection, Your Honor. 18 THE COURT: Sustained. Strike. 19 BY MR. GOODMAN: 20 Q From whom did Nordica receive monthly 21 expense payments under the agreement that you just 22 described for the standard set fee? 23 A From Baugur Group. 24 Q Did you also periodically receive payments 25 from other companies for monthly expenses? SONIA TOTH & ASSOCIATES (305)854-7710 361 1 A No, I did not. 2 Q Did you ever receive, in connection with 3 the third boat, a wire transfer or check from 4 Gaumur, the Plaintiff -- 5 A No. 6 Q -- for a monthly -- let me just finish the 7 question -- for monthly maintenance expenses? 8 A No, I did not. 9 Q Baugur, is that a public company in 10 Iceland? 11 A That is correct. 12 Q Did the amount of the agreed-upon monthly 13 expense payments change, and if so, explain to us 14 how it changed? 15 A Yes, it did. 16 In the beginning of 2000, we were 17 not -- or I was not assured what would be the budget 18 for the new vessel, so the agreement was, in the 19 beginning, it was going to be $8,000, and then we 20 were going to revisit that issue again later that 21 year, or by the end of the year, and if it needed to 22 be increased, it would be. 23 Q And was it increased? 24 A Yes, it was. 25 Q To how much? SONIA TOTH & ASSOCIATES (305)854-7710 362 1 A The increase was from 8,000 to $12,000 a 2 month. 3 Q To 12,000? 4 A That's correct. 5 Q Now, in addition to sending invoices for 6 monthly expenses of either 8,000 or 12,000 -- 7 THE COURT: I'm going to ask you, if you 8 would, please, to clarify that change. Go into 9 that, if you would, please, the change of eight 10 to 12. I'd like to have an amplification of 11 that transaction, or that -- 12 BY MR. GOODMAN: 13 Q Would you please amplify. 14 A Yes. Basically, we found out the expenses 15 for the boat number three was in excess of $200,000 16 a year, so we had to increase the amount, because 17 8,000 times 12 is $96,000, and that was not enough 18 money to cover the cost of the vessel number three. 19 THE COURT: You say "we," who is "we"? 20 THE WITNESS: That was me and the son and 21 the father. 22 THE COURT: All three of you? 23 THE WITNESS: That's correct. 24 THE COURT: Okay. 25 BY MR. GOODMAN: SONIA TOTH & ASSOCIATES (305)854-7710 363 1 Q In addition to sending invoices for 2 monthly expense payments, did you also receive any 3 instructions -- withdrawn -- did you also send 4 invoices for reimbursement of personal expenditures 5 for the father and the son completely unconnected to 6 the boat? 7 A Yes. 8 Q How did that happen, and from whom did you 9 receive instructions? 10 A Both Tryggvi Jonsson and Jon Asgeir, the 11 son, had an American Express credit card from 12 Nordica, which they used for their personal expenses 13 when they were abroad. 14 And in the beginning, I had included those 15 amounts that they had used that month on the 16 American Express cards on those invoice with $8,000. 17 I was instructed by Tryggvi to make two separate 18 invoices, and one was a fixed $8,000, and the other 19 one was for traveling expenses on behalf of 20 Tryggvi -- it was just basically traveling expenses 21 invoiced to Baugur Group. 22 And I would like to say, in the beginning 23 of 2000, after I formed the company, 24 New Viking, Inc., I had created a checking account 25 and invoices specifically to use for that boat SONIA TOTH & ASSOCIATES (305)854-7710 364 1 number three. 2 I did send an invoice to Baugur Group 3 under the name of New Viking, instructing them to 4 pay their fixed month into New Viking account, and 5 they rejected it. They said they could not do it, 6 it had to be under Nordica invoice. And so we had 7 to re-do it and send those invoices under Nordica 8 letterhead. 9 Q Who was it who told you to resubmit the 10 invoices which you had sent on New Viking letterhead 11 into Nordica invoices? 12 A Tryggvi Jonsson. 13 Q Did Mr. Jonsson tell you why he was asking 14 you to resubmit invoices under the Nordica name 15 instead of the New Viking name? 16 A Yes, because that would bring up a red 17 flag that, who is New Viking, and what is that all 18 about? 19 On the other hand, Nordica had been doing 20 business with Bonus, and then later Baugur Group, 21 for the past 12 years, and that's how he wanted it. 22 Q Now, why wasn't there anything in writing 23 concerning the agreement between you and the father 24 and the son about the ownership of the third boat? 25 A Because there was a great trust. They SONIA TOTH & ASSOCIATES (305)854-7710 365 1 trusted me, I trusted them. Since 1996, everything 2 had been going fine. They lived up to their 3 obligation and I took care of mine. And, basically, 4 that was the main reason why there was nothing in 5 writing. 6 Plus, they wanted to hide the fact that 7 they had nothing to do with those vessels. 8 Q Now, you had mentioned New Viking, Inc., 9 as being the formal owner of the vessel. Did the 10 father or the son or Tryggvi Jonsson, at any time, 11 ask you to transfer shares in -- I'm sorry, shares 12 of New Viking to Gaumur, the Plaintiff? 13 A No, never. 14 Q Did they ever ask you to transfer a 15 percentage of the shares in New Viking to any other 16 entity? 17 A In April of 2000, we had a meeting, me and 18 Tryggvi Jonsson and my wife, in Daytona; and in that 19 meeting he brought up, first time, that he wanted me 20 to move shares from New Viking to a company in 21 Bahamas called Miramar. 22 Q Miramar? 23 A That's correct. 24 Q Had you ever heard of a company called 25 Miramar before? SONIA TOTH & ASSOCIATES (305)854-7710 366 1 A Yes, I did. 2 Q What is your familiarity with Miramar? 3 A If I can recall, in the summer or spring 4 of '97, Tryggvi Jonsson, Jon Asgeir, and his father, 5 Johanness, had come down here to Miami. They told 6 me that they had set up a meeting with KPMG in 7 Bahamas, in Nassau, Bahamas, and they wanted me to 8 buy tickets for them and pay for them, and they 9 offered, actually, for me to come with them, which I 10 did. 11 And on that trip -- I bought the tickets, 12 and on that trip, I found out that they were forming 13 a new company in Nassau called Miramar. And, 14 actually, I remember that Tryggvi said that he came 15 up with the name because there's supposed to be a 16 lake somewhere in the United States called Miramar. 17 Q And why was it that you were paying for 18 the expenses for all of you to fly to Bahamas 19 instead of the father and the son paying for it on 20 their own? 21 MS. SULLIVAN: Objection, Your Honor, 22 speculation. 23 THE COURT: Sustained. 24 BY MR. GOODMAN: 25 Q What did the father or the son or SONIA TOTH & ASSOCIATES (305)854-7710 367 1 Mr. Jonsson, Tryggvi Jonsson, tell you about why 2 they were asking you to pay for their air fare to 3 the Bahamas? 4 A The reason for that is that they did not 5 want anyone in Iceland to know that they were going 6 to Bahamas. They knew if I would pay for the 7 tickets, they could not trace that back to Iceland; 8 and in return, they told me to send an invoice to 9 Bonus to pay for traveling expenses. 10 Q Did you go with them to the KPMG office in 11 Nassau, Bahamas? 12 A Yes, I did. 13 Q Let me show you what I'm going to ask to 14 be marked as the next exhibit for Identification, at 15 this point. 16 MR. GOODMAN: Pam, can you help me out 17 with the number? 18 THE CLERK: F, it's F. 19 THE COURT: F. 20 MR. GOODMAN: I do remember that you have 21 that system here. All right, F for 5. 22 Let me just show a courtesy copy to 23 Counsel. 24 (Thereupon, the above-referred to document 25 was marked as Defendant's Exhibit F for SONIA TOTH & ASSOCIATES (305)854-7710 368 1 Identification.) 2 THE COURT: I get the feeling you're still 3 digging that well. 4 MS. SULLIVAN: Your Honor, I'm going to 5 object at this time. 6 THE COURT: Can't object, he hasn't 7 offered it into Evidence, it's just marked for 8 Identification. 9 MS. SULLIVAN: All right. 10 MR. GOODMAN: May I question the witness, 11 Your Honor? 12 THE COURT: Yes. 13 BY MR. GOODMAN: 14 Q Sir, let me show you what has been marked, 15 at this point, for identification purposes, as 16 Exhibit F, and ask if you recognize this. 17 A Yes. This is a receipt from a travel 18 agency in Coral Gables back in '97. And on this 19 invoice, it shows -- 20 THE COURT: Whoa, whoa, we don't go into 21 the content of it unless and until it's 22 received in Evidence. 23 He's identified it. 24 BY MR. GOODMAN: 25 Q Does this relate to the Bahamas trip that SONIA TOTH & ASSOCIATES (305)854-7710 369 1 you just mentioned? 2 A Yes, it is. 3 MR. GOODMAN: Your Honor, we would offer 4 this into Evidence. I have a courtesy copy for 5 Your Honor, as well. 6 THE COURT: Ms. Sullivan now? 7 MS. SULLIVAN: Your Honor, we're going to 8 object on relevancy grounds. I'd like to hear 9 why this is relevant to the Motion to Discharge 10 the Lis Pendens. 11 THE COURT: Well, I'm going to overrule it 12 because it's obviously relevant to the 13 conversation that he's having with the witness, 14 and so it has a certain relevance; but I am 15 beginning to get the feeling that we're going 16 deeper and deeper for whether or not this 17 lis pendens ought to remain. 18 The objection is overruled. It's 19 received. It's -- 20 MS. SULLIVAN: I have an additional 21 objection. This is from 1997, and has nothing 22 to do with the third boat. 23 THE COURT: I'll overrule it, subject to 24 being struck on a re-motion if it's not tied 25 up. SONIA TOTH & ASSOCIATES (305)854-7710 370 1 BY MR. GOODMAN: 2 Q All right, sir. Does this invoice reflect 3 your payment of airline tickets for yourself, the 4 father and the son and Tryggvi Jonsson to the 5 Bahamas for the trip where they acquired an interest 6 in the Miramar corporation? 7 A Yes, it is. 8 Q All right. Now, concerning the third 9 boat, and concerning the agreement as to ownership, 10 did Mr. Jonsson ever send you or hand you anything 11 in writing concerning the Miramar corporation? 12 A Yes, he did. 13 MR. GOODMAN: Your Honor, I'd like to mark 14 this next exhibit as G for Identification, and 15 a courtesy copy for Counsel. 16 (Thereupon, the above-referred to document 17 was marked as Defendant's Exhibit G for 18 Identification.) 19 MR. GOODMAN: A courtesy copy for 20 Your Honor. 21 THE COURT: I thank you. 22 BY MR. GOODMAN: 23 Q Mr. Sullenberger, showing you what has 24 been marked, at this point, for identification 25 purposes, as Exhibit G, do you recognize this? SONIA TOTH & ASSOCIATES (305)854-7710 371 1 A Yes, I do. 2 Q What is it? 3 A This is a letter that Tryggvi handed over 4 to me and my wife up in Daytona, in the year 2000, 5 where he is giving me instructions -- 6 THE COURT: Whoa, whoa, whoa. 7 BY MR. GOODMAN: 8 Q And is there also -- without telling us 9 what it says, is there also an English translation 10 of the document which is in the Icelandic language? 11 A Yes, there is. 12 Q Is that a true and correct copy -- I'm 13 sorry, a true and correct English translation of the 14 Icelandic document? 15 A Yes, it is. 16 Q And does this relate to the demand that 17 shares of stock in New Viking, Inc., the legal owner 18 of the third boat -- 19 THE COURT: Whoa, whoa, whoa. Let's not 20 start discussing, by way of summary, the 21 content of the document, even if it were in 22 Evidence, although it is not. 23 MR. GOODMAN: All right. Just for 24 purposes of, I guess -- 25 THE COURT: Whoa, whoa, whoa. What's your SONIA TOTH & ASSOCIATES (305)854-7710 372 1 objection? 2 MR. SARAFAN: Exactly. 3 MR. GOODMAN: -- a collateral note, 4 Your Honor, having nothing to do with the 5 substance of the document, I'll just point out 6 that the document was translated by 7 Ellen Ingvadottir, who was here with us last 8 time as the translator. 9 THE COURT: I noted she was not here 10 today. 11 MR. GOODMAN: Yes. All right. We would 12 offer Exhibit G, Your Honor, into Evidence. 13 THE COURT: No objection. It's received. 14 G is received. 15 (Thereupon, the above-referred to document 16 was received in Evidence as Defendant's 17 Exhibit G.) 18 BY MR. GOODMAN: 19 Q All right, sir, let's get into the 20 substance of this a little bit, and tell us what 21 this is, sir. 22 THE COURT: Instead of that, because we 23 can have arguments about what it is, why don't 24 we just publish those portions of it which you 25 wish to publish, because now it's in Evidence, SONIA TOTH & ASSOCIATES (305)854-7710 373 1 so it may be published. 2 MR. GOODMAN: All right, Your Honor. 3 BY MR. GOODMAN: 4 Q Let me call your attention, sir, and I'd 5 like to publish numbered paragraph three. It might 6 be easier if you go to the English portion, where it 7 says: The invoice to B/G shall state contract fee 8 for retail services, commissions, finder's fees and 9 consulting work. 10 Is that the instruction that Mr. Jonsson 11 gave you as to how to phrase your invoices? 12 A Yes, that's correct. 13 Q And if you look up to numbered paragraph 14 one, we'd like to publish the first sentence, 15 saying: Have a lawyer in Delaware prepare a title 16 for 70 to 75 percent ownership in "Thee Viking" for 17 Miramar. 18 A That's correct. 19 Q Did you discuss this memorandum with 20 Mr. Jonsson at the meeting where he handed it to 21 you? 22 A Yes, we did. 23 Q At any time during this meeting, did 24 Mr. Jonsson say to you that -- 25 THE COURT: How about -- you know, I'm SONIA TOTH & ASSOCIATES (305)854-7710 374 1 sorry, you cannot tell him what Mr. Jonsson 2 said and then ask him if that's true. 3 BY MR. GOODMAN: 4 Q Did Mr. Jonsson say to you, suggest to 5 you -- 6 THE COURT: Oh, come on. 7 MR. GOODMAN: You'll see, Your Honor. I 8 understand your objection. 9 THE COURT: It's not my objection, but 10 when it gets just too much leading, then it 11 becomes testimony, and then I have to ring a 12 bell. 13 MR. GOODMAN: I predict that when you hear 14 my question, you will understand -- 15 THE COURT: I'll know you reached the 16 bottom of this drilling? 17 MR. GOODMAN: No, I wasn't going to say 18 that. I was going to say that you'll see it is 19 not leading. 20 THE COURT: Okay. 21 BY MR. GOODMAN: 22 Q Did Mr. Jonsson make any comments about 23 transferring shares to any corporation other than 24 Miramar? 25 A No, he did not. SONIA TOTH & ASSOCIATES (305)854-7710 375 1 Q Were the shares of the corporation, in 2 fact, ever transferred to Miramar? 3 A No, they were not. 4 Q Why not? 5 A In that meeting, when he brought this 6 paper, I told him that I did not agree to the 7 ownership break-up that he put down, 70 to 8 75 percent; and the reason for that is that I needed 9 to go through all the expenses and everything that 10 both me and they had -- father and son, that they 11 had paid toward vessel number three. 12 Q Concerning the identity of the parties who 13 actually owned "Thee Viking," did Mr. Jonsson ever 14 send to you, by e-mail, a document in which the 15 identity of the other owners were identified? 16 MS. SULLIVAN: Objection, Your Honor. 17 THE COURT: Sustained, leading. 18 THE WITNESS: Yes, he did. 19 MR. GOODMAN: Excuse me, Mr. Sullenberger. 20 I know you're not familiar with court 21 proceedings, but when the Master says 22 "sustained," you have to not answer the 23 question. 24 THE WITNESS: I'm sorry. 25 BY MR. GOODMAN: SONIA TOTH & ASSOCIATES (305)854-7710 376 1 Q All right. Have you ever received any 2 documents from Mr. Jonsson concerning the boat? 3 A Yes, I did. 4 Q Did he send you any e-mails? 5 A Yes, he did. 6 Q Did he send you e-mails in his capacity as 7 agent for the father and the son? 8 MS. SULLIVAN: Objection, Your Honor. 9 THE WITNESS: Yes. Yes, he did. 10 THE COURT: Grounds? 11 MS. SULLIVAN: Calls for speculation as to 12 which way Mr. Jonsson sent the e-mail; if he 13 sent it from his place of work, it could have 14 been just as a matter of convenience. 15 THE COURT: Overruled. 16 I don't see Tryggvi being involved in this 17 anyway, other than, so far, as some sort of 18 designee, agent, representative, or whatever 19 name. 20 Go ahead. 21 BY MR. GOODMAN: 22 Q Did you have conversations with Tryggvi 23 about the vessel, "Thee Viking," in the presence of 24 the father and the son? 25 A Yes, I did. SONIA TOTH & ASSOCIATES (305)854-7710 377 1 Q Did anybody, at any time, question his 2 role as agent for the father and the son in dealing 3 with you? 4 A No, they did not. 5 Q That was something that you all 6 understood? 7 A Yes, we did. 8 Q Approximately how many e-mails, if you can 9 give us an estimate, did you receive from 10 Tryggvi Jonsson concerning "Thee Viking"? 11 A Between ten, 15 e-mails going back and 12 forth. 13 Q Did you ever communicate with the son by 14 e-mail about the boat? 15 A Yes, I did. 16 Q Let me show you what I'm going to ask to 17 be marked for ID purposes as Exhibit H. 18 (Thereupon, the above-referred to document 19 was marked as Defendant's Exhibit H for 20 Identification.) 21 MR. GOODMAN: Here is a courtesy copy for 22 Counsel, a courtesy copy for Your Honor. 23 THE COURT: Thank you, sir. 24 Have you folks seen this before? 25 MS. SULLIVAN: Your Honor, I have a number SONIA TOTH & ASSOCIATES (305)854-7710 378 1 of objections. 2 THE COURT: Have you seen it before? 3 MR. GOODMAN: I believe it was produced in 4 discovery, Your Honor. 5 THE COURT: The reason I asked is because 6 I was trying to find an appropriate time to 7 take a break. 8 MR. SARAFAN: This will be an appropriate 9 time. 10 THE COURT: This will be an appropriate 11 time because it will give them a chance to take 12 a look at it if they haven't seen it. 13 We'll take a short break. 14 (Thereupon, a recess was had, after which 15 the following proceedings were had:) 16 THE COURT: We will stop about 12:00 and 17 be back here around 2:00, and stop around 5:00, 18 more or less, and start tomorrow morning at 19 9:30. 20 Now, H has been marked for Identification. 21 BY MR. GOODMAN: 22 Q Without telling us the contents of this 23 document, Mr. Sullenberger, can you just tell us, in 24 a very brief fashion, what this is? 25 A This is basically an e-mail from SONIA TOTH & ASSOCIATES (305)854-7710 379 1 Tryggvi Jonsson at Baugur. 2 Q With a translation? 3 A Yes, with a translation. Yes, that's 4 correct. 5 Q Please don't get any further involved in 6 the contents other than this: Does it concern the 7 boat? 8 A Yes, it does. 9 MR. GOODMAN: Your Honor, we would offer H 10 into Evidence. 11 MS. SULLIVAN: Your Honor, two objections: 12 One, I have the Icelandic version of the 13 e-mail, which is the first five pages, and that 14 looks like, traditionally, what I'm used to an 15 e-mail appearing to be, with the from, the to 16 and subject line. 17 Following that are four pages of what I 18 think may be the English translation, although 19 I'm not certain, and there is no certification 20 as to any kind of a translator as to this is an 21 accurate translation of the Icelandic language. 22 THE COURT: Sustained. 23 BY MR. GOODMAN: 24 Q Mr. Sullenberger, have you had the 25 opportunity to look at the English translation which SONIA TOTH & ASSOCIATES (305)854-7710 380 1 is part of Exhibit H? 2 A Yes, I have. 3 Q Are you fluent in both English and 4 Icelandic? 5 A Yes, I am. 6 Q Is the English translation -- 7 THE COURT: Mr. Goodman, I'm sorry, but 8 I'm going to save you some time on that. He is 9 a party, and as a party, the objection is made, 10 I would have to sustain it, and I would sustain 11 it, so I'm not going to allow it to be 12 translated or verified by this witness. 13 MR. GOODMAN: If you'll give me the 14 opportunity to ask one or two other questions, 15 I might be able to get to it a different way, 16 Your Honor. 17 THE COURT: I'm going to give you an 18 opportunity, but, boy, I'll tell you, I'm not 19 sure where you're going, but go ahead. 20 BY MR. GOODMAN: 21 Q Do you know, sir, who provided these 22 translations? 23 A Yes, I do. 24 Q Who? 25 A Ellen Ingvadottir. SONIA TOTH & ASSOCIATES (305)854-7710 381 1 Q That is the certified translator who was 2 here in court in April? 3 A That's correct. 4 Q And who provided other translations of 5 documents in this case? 6 A That's correct. 7 MR. GOODMAN: Your Honor, we would 8 offer -- 9 THE COURT: The objection is sustained. 10 MR. GOODMAN: Your Honor, so that I may 11 have a complete record, I will proffer the 12 salient point of this document. 13 THE COURT: The document has already been 14 identified, and in that capacity has been 15 offered totally, quote, unquote, into Evidence, 16 so the record is complete. 17 You can, at a later time, make a 18 representation of particular portions of it, if 19 you choose to. You don't have to publish parts 20 of it now because it's not admissible. 21 It's not as though there is something 22 secret that the reviewing authority cannot see. 23 It's marked for Identification and is a part of 24 this record. 25 MR. GOODMAN: I understand, Your Honor. SONIA TOTH & ASSOCIATES (305)854-7710 382 1 My hesitation was not addressed to that part of 2 your ruling, but to an earlier part. I'm 3 trying to find a persuasive argument as to why 4 a witness simply can't say that is an accurate 5 translation regardless of whether he's a 6 witness in the case. 7 THE COURT: If you'll excuse the use of 8 the word, meaning nothing at all about this 9 very fine gentleman, but the potential for 10 prejudice, interpretively speaking, is always 11 there. 12 My Icelandic is a little rusty, I might 13 add, but even my Spanish is a little rusty, but 14 you would be astonished, as we all know, that 15 you can give two people who are equally fluent 16 in Spanish and English the same writing or 17 something in a foreign language, and you will 18 come out with slightly different interpretive 19 results. 20 MR. GOODMAN: I understand that. 21 THE COURT: Don't pursue it. It's not 22 going to get you anywhere. You're just wasting 23 time. 24 MR. SARAFAN: Your Honor, just in the 25 interest of making sure we have a clear record, SONIA TOTH & ASSOCIATES (305)854-7710 383 1 can I see the copy that you've proffered and 2 marked with the Court? I think there might be 3 a problem with the courtesy copy you gave us. 4 MR. GOODMAN: What do you mean? 5 THE COURT: This is the one I have. 6 MR. SARAFAN: Our English starts with a 7 different date than the Icelandic starts, so I 8 think there may be a page missing. 9 MR. GOODMAN: How many pages do you have, 10 sir? 11 MR. SARAFAN: The first thing this 12 translation says is Page 2 in the copy we have. 13 MR. GOODMAN: That's correct, that's what 14 mine says. 15 MR. SARAFAN: But if you look at Page 1, 16 it says, on May 13th, on the Icelandic, we 17 don't have a translation of that attached. 18 We just wanted to make sure that was 19 accurate. Thank you. 20 MR. GOODMAN: Mr. Sarafan, you have an 21 exact duplicate copy of what the Judge has and 22 what has been marked for Identification. 23 MR. SARAFAN: Thank you. 24 MS. SULLIVAN: I have an additional 25 objection to proffer, Your Honor. SONIA TOTH & ASSOCIATES (305)854-7710 384 1 THE COURT: Please, don't begin snatching 2 defeat out of the jaws of victory. 3 THE COURT REPORTER: I'm sorry, Your 4 Honor? 5 MR. GOODMAN: "Don't begin snatching 6 defeat out of the jaw of victory," which is a 7 well-known expression, and one which I will 8 move on. 9 BY MR. GOODMAN: 10 Q Mr. Sullenberger, did you have discussions 11 with -- Mr. Sullenberger, since we're not going to 12 be dealing with that document, please put it down. 13 A I'm sorry. 14 Q Did you have discussions with 15 Tryggvi Jonsson, as the representative of the father 16 and the son, concerning resolution of the ownership 17 issues on the third boat? 18 A Yes, we did. 19 Q When you were having these discussions 20 with Mr. Tryggvi Jonsson -- 21 THE COURT: Why don't you time date that, 22 we have a long time line, Nassau, and back to 23 Daytona Beach. 24 MR. GOODMAN: You're right, I did not 25 mention Timbuktu. SONIA TOTH & ASSOCIATES (305)854-7710 385 1 THE COURT: I'm sure we'll get there. 2 MR. GOODMAN: No, no. I'll verify, 3 Your Honor, Timbuktu is not going to be coming 4 out of my mouth in a question. 5 BY MR. GOODMAN: 6 Q When did you first start having 7 discussions with Tryggvi Jonsson, as the designated 8 representative of the father and the son, concerning 9 resolving the percentage ownership interest that you 10 would have as opposed to the father and the son? 11 A The first discussion regarding the 12 ownership came at that meeting in Daytona back in 13 the spring of 2000. 14 Q Was Mr. Tryggvi Jonsson negotiating on 15 behalf of Gaumur in that Daytona Beach meeting? 16 A No, he was not. 17 Q Did you have more than one discussion with 18 Mr. Jonsson about resolving the issues concerning 19 allocation of ownership in the vessel, 20 "Thee Viking"? 21 A Yes, we did. 22 Q Who was he representing at those meetings? 23 A He was representing the father and the 24 son. 25 Q At any time, at any meeting, at any SONIA TOTH & ASSOCIATES (305)854-7710 386 1 conversation that you ever had with Tryggvi Jonsson 2 where you were negotiating the issue of allocating 3 ownership interest in the vessel, "Thee Viking," did 4 he ever say he was representing Gaumur? 5 A No, he was not; he never said that. 6 Q When you would send invoices for 7 reimbursement of expenses, did you receive payments 8 from more than one entity over time? 9 A Over the three, since 1996? 10 Q Yes, sir, the three vessels. 11 A Yes. Yes. 12 Q When you sent your invoices for 13 reimbursement, did you know in advance the 14 particular entity that would be sending you the 15 reimbursement? 16 A No, I did not. 17 Q Regardless of the ultimate identity of the 18 company which sent you the money for reimbursement, 19 did you ever have any separate agreements with those 20 entities? 21 A No, I did not. 22 Q The only agreement was with the father and 23 the son? 24 A That is correct. 25 Q As far as you know, who made the decision SONIA TOTH & ASSOCIATES (305)854-7710 387 1 as to which entity would be making the 2 reimbursements? 3 A That would be the father or the son. 4 Q Concerning the third boat, "Thee Viking," 5 in very succinct terms, tell the Court what your 6 area of responsibility was. What did you do? 7 THE COURT: I thought we went over that in 8 detail. 9 MR. GOODMAN: For the third boat, I don't 10 think we did. 11 THE COURT: Yeah. 12 MR. GOODMAN: Then I'll move on, if that's 13 your recollection. 14 THE COURT: Unless you'd like me to 15 refresh your recollection. 16 MR. GOODMAN: No, not necessary, 17 Your Honor. 18 BY MR. GOODMAN: 19 Q Did you ever send an invoice for 20 reimbursement to Gaumur? 21 A Yes, we did. 22 Q Did you ever send a reimbursement request 23 to Baugur? 24 A Yes, we did. 25 Q Were most of the reimbursement requests SONIA TOTH & ASSOCIATES (305)854-7710 388 1 addressed to Baugur for the third boat? 2 A For the third boat, all the requests were 3 to Baugur. 4 THE COURT: What? 5 THE WITNESS: To Baugur, yes. 6 BY MR. GOODMAN: 7 Q And those invoices were typically phrased 8 according to instructions given to you by 9 Tryggvi Jonsson? 10 A That is correct. 11 Q I'm going to show you what we're going to 12 have marked for Identification as Exhibit I. 13 Courtesy copy for Counsel, courtesy copy 14 for Your Honor. 15 THE COURT: I for ID. 16 (Thereupon, the above-referred to document 17 was marked as Defendant's Exhibit I for 18 Identification.) 19 MR. GOODMAN: Indeed. Thank you. 20 BY MR. GOODMAN: 21 Q Mr. Sullenberger, showing you what has 22 been marked for ID as Exhibit I, without getting 23 into the details, just tell us, it's a three-page 24 document, just explain to us what the first page is. 25 A The first page is a cover page from SONIA TOTH & ASSOCIATES (305)854-7710 389 1 Nordica addressed to Baugur, attention -- 2 Q Stop. Don't say anything more. 3 A Okay. 4 Q Second page? 5 A It's an invoice from Nordica to Baugur. 6 Q Third page? 7 A It's a confirmation on a wire transfer 8 from Bank of America to Nordica. 9 MR. GOODMAN: Your Honor, we would offer 10 this three-page composite exhibit, Exhibit I, 11 into Evidence. 12 MS. SULLIVAN: No objection, Your Honor. 13 THE COURT: Received, I. 14 MR. GOODMAN: Thank you, Your Honor. 15 (Thereupon, the above-referred to document 16 was received in Evidence as Defendant's 17 Exhibit I.) 18 BY MR. GOODMAN: 19 Q Mr. Sullenberger, take a look, sir, at the 20 first page. You'll see that it's dated 21 April 26, 2002. Do we know, just based on the date, 22 that this concerns the third boat as opposed to the 23 first two boats? 24 A Yes, that's correct. 25 Q Why is this being sent to Baugur? SONIA TOTH & ASSOCIATES (305)854-7710 390 1 A That was the instruction from Tryggvi, 2 that we would send request for reimbursement to 3 Baugur. 4 Q Now, you'll notice, in the middle of the 5 first page, you were asking Baugur to transfer 6 $12,000. Do you see that? 7 A That's correct. 8 Q Why did you use that amount of $12,000? 9 A That is the amount that Tryggvi instructed 10 me to send for reimbursement every month. 11 Q All right. This is the standard monthly 12 fee after it had been increased from 8,000 to 13 $12,000? 14 A That is correct. 15 Q All right, sir. Take a look at the second 16 page. What is this? 17 A That's an invoice from Nordica to Baugur 18 for contract fee for retail services and commission, 19 finder's fees and consulting work, for $12,000. 20 Q All right. Let's talk for a minute or two 21 about that description. Contract fee for retail 22 services, commissions, finder's fees and consulting 23 work. Is that an accurate description, sir? 24 A No, it's not. 25 Q Does this invoice, in fact, relate to SONIA TOTH & ASSOCIATES (305)854-7710 391 1 reimbursement of boat related expenses? 2 A Yes, it is. 3 Q Why is it phrased in an inaccurate way? 4 A I was instructed by Tryggvi to phrase the 5 invoice this way. This was the text he wanted. 6 Q Is there any doubt in your mind, sir, that 7 this invoice relates to the monthly boat expenses 8 for "Thee Viking"? 9 A No, none whatsoever. 10 Q And the third page, sir, what is this? 11 A That is a confirmation from Bank of 12 America, confirming that 12,000, minus a $20 fee, 13 was deposited to Nordica account, on May 3, 2002, 14 and originally came from Baugur. 15 Q It says: Originated, Baugur? 16 A Baugur, yes, in Iceland. 17 Q Was this a payment that Nordica received 18 in May of 2002 from Baugur for the agreed-upon 19 monthly reimbursement of expenses for "Thee Viking"? 20 A That's correct. 21 Q Not Gaumur, Baugur? 22 A By Baugur, yes. 23 Q I'm going to show you, sir, what we're 24 going to have marked for identification purposes as 25 Exhibit J. SONIA TOTH & ASSOCIATES (305)854-7710 392 1 Courtesy copy for Counsel and also for 2 Your Honor. 3 THE COURT: Thank you. 4 (Thereupon, the above-referred to document 5 was marked as Defendant's Exhibit J for 6 Identification.) 7 BY MR. GOODMAN: 8 Q Mr. Sullenberger, showing you what has 9 been marked as Exhibit J for Identification, without 10 telling us specifically what each page is, just, in 11 a very summary fashion, so the record is clear, what 12 are the -- what is on the first page, second page 13 and third page? 14 A The first page is a cover page from 15 Nordica to Baugur, on October 29, 2001, requesting 16 payments; on Page 2 is an invoice from Nordica to 17 Baugur for contract fee for retail services, 18 commissions, finder's fees and consulting work for 19 $12,000; and the third one is a statement from 20 Union Planters Bank, showing my account and the wire 21 into Baugur. 22 The wire came in for $11,980, that is 23 actually 12,000, minus the $20 fee they charge. 24 MR. GOODMAN: Your Honor, we would offer 25 this into Evidence. SONIA TOTH & ASSOCIATES (305)854-7710 393 1 MS. SULLIVAN: No objection, Your Honor. 2 THE COURT: Receive it without objection. 3 (Thereupon, the above-referred to document 4 was received in Evidence as Defendant's 5 Exhibit J.) 6 BY MR. GOODMAN: 7 Q Mr. Sullenberger, again, if you look at 8 the first page, it's addressed to Baugur, not 9 Gaumur; why is that? 10 A Because the payments were coming from 11 Baugur. The agreement was that Baugur was going to 12 pay those monthly expenses. 13 Q And on the second page, sir, the 14 description: Contract fee for retail services, 15 commissions, finder's fees and consulting work, is 16 that a correct or incorrect description? 17 A That is an incorrect description. 18 Q Why did you put an incorrect description 19 in your invoice? 20 A Because I was told by Tryggvi Jonsson that 21 that's how he wanted the invoice to read. 22 Q And on the third page, sir, if you look at 23 the entry for November 13th, what does that reflect? 24 A This reflects that 12,000, minus the $20, 25 came in on November the 13th from Baugur, h.f, which SONIA TOTH & ASSOCIATES (305)854-7710 394 1 is the Baugur Group. 2 Q To the Nordica account? 3 A To the Nordica account, that's correct. 4 Q At Union Planters Bank? 5 A That's correct. 6 Q Any doubt in your mind, sir, that this 7 $11,980 wire transfer in from Baugur was for the 8 monthly maintenance on "Thee Viking"? 9 A No, no doubt. 10 THE COURT: Whoa, whoa. This says that 11 the date is November 13th, $11,980 -- okay, the 12 statement is for a period of October 31st 13 through November 30th, correct? 14 THE WITNESS: That's correct. 15 THE COURT: All right. 16 BY MR. GOODMAN: 17 Q Now, Nordica was also, in 1991, 1992, 18 selling groceries to companies affiliated with the 19 father and the son? 20 MS. SULLIVAN: Objection, Your Honor, 21 leading. 22 THE COURT: Well, at least he was leading. 23 I really, honestly, wonder what in the 24 world I'm going through here to get to the 25 determination of whether or not this SONIA TOTH & ASSOCIATES (305)854-7710 395 1 lis pendens is proper, or under -- I'm really 2 having a lot of trouble with that. I'm not 3 trying to give you a hard time, but I'm just 4 all over the woods on this thing. 5 MR. GOODMAN: Because, Your Honor, the 6 claim of lien is made by Gaumur, and that is a 7 phony claim, Your Honor, because the agreement 8 never was with Gaumur, the money came from 9 Baugur. The agreement was with the 10 individuals, the father and the son. They're 11 trying to hide that interest and cover it up. 12 THE COURT: Don't you think that you have 13 more than amply allowed him to testify to that? 14 He's said that exact thing probably no less 15 than 12 times. Why did they do it? Why did 16 you do it that way? So on and so on. I mean, 17 I've heard that enough. 18 MR. GOODMAN: Your Honor, the objection or 19 the comment that you just made might have, in 20 my view, been appropriate for the last question 21 on the last exhibit, but if you'll give me a 22 brief bit of leeway, you will see that -- 23 THE COURT: I thought -- listen, let me 24 tell you something, I really, genuinely, 25 honestly and sincerely think that I've given SONIA TOTH & ASSOCIATES (305)854-7710 396 1 you an enormous amount of leeway, given the 2 specific matter -- it's not complex, it's not 3 expansive -- that I consider before me at this 4 time. 5 MR. GOODMAN: I'm not challenging that at 6 all, Your Honor. I'm simply saying, if you'll 7 wait to hear this next question, you'll see -- 8 THE COURT: I'm not just talking about 9 this question or the next question, I'm talking 10 about the totality of this. 11 How far are we going? How much more do 12 you want from this man, and what -- do you have 13 anything new that's going to come out here 14 other than what has already been brought forth? 15 I mean, I'm not asking you to show your 16 cards or anything like that, but I believe I 17 have had a sort of purview of every card in 18 your hand on this, and do they all have to be 19 just thump, thump, thump? Is there any new 20 point that you're going to seek to bring out 21 with this witness that we haven't already 22 brought out? 23 MR. GOODMAN: Yes. 24 THE COURT: Okay. I'm going to try to go 25 with you, but I'm going to reach a point where SONIA TOTH & ASSOCIATES (305)854-7710 397 1 it just doesn't make any sense anymore to 2 pursue it. 3 Bear in mind, we are not trying the merits 4 of anybody's claim here, or the merits of 5 anybody's defenses here, okay? 6 MR. GOODMAN: All right, Your Honor. 7 THE COURT: Okay. Go ahead. 8 BY MR. GOODMAN: 9 Q Mr. Sullenberger, focusing your attention 10 to the last exhibit which we just looked at, which 11 is what number? 12 A J. 13 Q When you turn to the second page, sir, the 14 form of that invoice and the way the merchandise or 15 service is described, does that description in any 16 way resemble the invoices which would be sent for 17 the legitimate sale of grocery products by Nordica? 18 A No. 19 Q All right. Do you do any consulting work 20 for Gaumur? 21 A No. 22 Q So although the invoice says "consulting," 23 you are not a consultant, and have never been a 24 consultant for Gaumur? 25 A No. SONIA TOTH & ASSOCIATES (305)854-7710 398 1 MR. GOODMAN: Your Honor, if you would 2 bear with me for just a minute or two, I'm 3 mentally discarding several exhibits and 4 questions which I was going to go through based 5 on Your Honor's comments, so if you'll give me 6 just about twenty seconds, I should be able to 7 jump ahead in a quantum leap. 8 BY MR. GOODMAN: 9 Q Mr. Sullenberger, concerning the third 10 boat, "Thee Viking," I'm going to show you what we 11 will have marked for Identification as Exhibit -- 12 THE COURT: K. 13 MR. GOODMAN: -- K. 14 A copy for Counsel and a copy for 15 Your Honor. 16 THE COURT: Thank you, sir. 17 Any objection to this? 18 MR. SARAFAN: Your Honor, we think it 19 might have already been admitted as E, we're 20 trying to check that out. 21 THE COURT: You wouldn't have any 22 objection to it any way, would you? 23 MR. SARAFAN: Only duplicative, but if 24 it's in, it's in. 25 THE COURT: So we'll just put it in. K, SONIA TOTH & ASSOCIATES (305)854-7710 399 1 it's offered and received as K. 2 (Thereupon, the above-referred to document 3 was marked and received in Evidence as 4 Defendant's Exhibit K.) 5 MR. GOODMAN: Thank you, Your Honor. 6 THE COURT: Okay. 7 BY MR. GOODMAN: 8 Q What is this? 9 A This is a receipt from Hideaway 10 Group -- Yacht Group. 11 Q It's a closing statement? 12 A Closing statement. 13 Q For the purchase of the third boat, 14 "Thee Viking"? 15 A That is correct. 16 Q Did it reflect any payments by Gaumur? 17 A No. 18 Q Any loans by Gaumur? 19 A No. 20 Q Did the father and son ever use the third 21 boat? 22 A Yes, they did. 23 Q Did the father or son stay on the third 24 boat when they visited Miami or South Florida? 25 A Yes, they did. SONIA TOTH & ASSOCIATES (305)854-7710 400 1 Q Did the son ever send you an e-mail 2 concerning his use of the boat? 3 A Yes, he did. 4 Q Let me show you what we will have marked 5 as Exhibit L for Identification. 6 (Thereupon, the above-referred to document 7 was marked as Defendant's Exhibit L for 8 Identification.) 9 MR. GOODMAN: A copy for Counsel and a 10 copy for Your Honor. 11 BY MR. GOODMAN: 12 Q Mr. Sullenberger -- 13 THE COURT: We have the same problem that 14 we had on the other document, the translation 15 that's uncertified. We don't have anybody 16 around here, other than the witness, to 17 translate it. 18 MR. GOODMAN: I note that problem, but as 19 you'll see, I'm going to be using it for a 20 different purpose. 21 MR. SARAFAN: He hasn't offered it, as far 22 as I can see. 23 MR. GOODMAN: I have not yet. 24 Your Honor, we would offer this exhibit, 25 not for the substantive content, because of the SONIA TOTH & ASSOCIATES (305)854-7710 401 1 translation issue, but because it shows that 2 the e-mail originated from the son, 3 Jon Johannesson, at his web page address at 4 Baugur, and that is in English in both the 5 English, and the -- there is no Icelandic for 6 that, it's English on both documents. 7 MS. SULLIVAN: Your Honor, it doesn't tend 8 to prove or disprove any issue in the case at 9 bar; also, there seems to be some page number 10 sequential discrepancies, which, I can't 11 tell -- 12 THE COURT: Let me ask, what is the 13 relevance of it, assuming that it would be 14 admissible for that purpose alone -- not alone, 15 proving the truth of any of these statements? 16 MR. GOODMAN: Because the claim here which 17 is being made by the Plaintiff, that money was 18 lent by Gaumur, that Gaumur had a purported 19 claim, is not true. The real people who were 20 involved in the boat are the father and the 21 son, they're hiding their interest in it, and 22 this is simply an e-mail about the boat from 23 the son at his web page address at Baugur. 24 THE COURT: We don't know, at this point, 25 that this is an e-mail about the boat, because SONIA TOTH & ASSOCIATES (305)854-7710 402 1 as I told you, my Icelandic is rusty, and I'd 2 have to read that to know what the content is. 3 It may talk about a fishing trip in Norway. 4 MR. GOODMAN: I don't have a retort to 5 that. You're correct on that point, 6 Your Honor. 7 THE COURT: Sustain the objection. 8 Marked for Identification. It is marked 9 as L. 10 BY MR. GOODMAN: 11 Q All right. Did you make a decision, at 12 some point, that you needed to sell the vessel, 13 "Thee Viking"? 14 A Yes, I did. 15 Q When and why? 16 A It started in the beginning or -- end of 17 year 2001, regarding a business dispute that Nordica 18 had with Baugur Group regarding fulfilling their 19 obligations. 20 Following that, there was an e-mail from 21 Jon Asgeir, the son, that nothing was going to be 22 done or paid to Nordica until I moved 23 "Thee Viking" -- New Viking shares to Miramar. 24 Following that dispute we went back and 25 forth in e-mail contents, me and Tryggvi. He had SONIA TOTH & ASSOCIATES (305)854-7710 403 1 appointed Tryggvi to take care of this by e-mail. 2 He then -- actually, in an e-mail that we 3 have here which has been translated, we talk about 4 settling this dispute. 5 THE COURT: Whoa, whoa, whoa, are we 6 talking about this e-mail that has not been 7 admitted? 8 MR. GOODMAN: The witness appears to be 9 going there. I didn't anticipate that he would 10 be. 11 BY MR. GOODMAN: 12 Q Don't discuss that, sir. 13 A Oh, I'm sorry. 14 But in an agreement, they were going 15 to -- in May of 2002, they were going to pay me 16 $350,000, they were going to take over the 17 ownership -- I'm sorry, the mortgage, take over the 18 mortgage of the bank, and -- 19 MS. SULLIVAN: Your Honor, I'm going to 20 have to object. 21 THE COURT: Sustained. 22 If you have a particular question you want 23 to ask, ask it. This is not a narrative 24 presentation. 25 MR. GOODMAN: Let me try to sharpen my SONIA TOTH & ASSOCIATES (305)854-7710 404 1 question. 2 THE COURT: Your question was not the 3 problem, it was the answer; it far exceeded 4 responsiveness. 5 THE WITNESS: I'm sorry. 6 BY MR. GOODMAN: 7 Q Mr. Sullenberger, without giving us a 8 history and a narrative and all the things that you 9 said before, approximately when did you decide to 10 put the boat up for sale, "Thee Viking"? 11 A In June of 2002. 12 Q All right. Did you tell anybody that you 13 were going to be putting "Thee Viking" up for sale? 14 A Yes, I did. 15 Q Who? 16 A I told Tryggvi Jonsson. 17 THE COURT: Who? 18 THE WITNESS: Tryggvi Jonsson, in a phone 19 conversation, when he was in Orlando, in June. 20 BY MR. GOODMAN: 21 Q Did you tell anybody else, other than 22 Tryggvi Jonsson, that you were going to be selling, 23 or trying to sell the boat, "Thee Viking"? 24 A I told that to Union Planters Bank, 25 Roy Tanis, at the bank, and my counsel in Iceland, SONIA TOTH & ASSOCIATES (305)854-7710 405 1 and the authorities in Iceland. 2 Q At any time, did you intend to -- 3 THE COURT: Did you say "the authorities 4 in Iceland"? 5 THE WITNESS: Yes, the Iceland 6 authorities. 7 THE COURT: Your counsel in Iceland and 8 the authorities in Iceland? 9 MR. GOODMAN: I think he's referring to 10 the police. 11 THE COURT: I just wanted to make sure I 12 heard the word correctly. 13 BY MR. GOODMAN: 14 Q Please don't tell us what you spoke about 15 with your counsel, because that would be privileged; 16 and when you use the word "the authorities," to whom 17 are you referring? 18 A The police authorities, the investigator 19 in Iceland. 20 Q And, at any time, did you intend to keep 21 the proceeds of the sale of "Thee Viking" if you had 22 been able to successfully sell it? 23 A I was only going to keep my portion of the 24 ownership in the vessel. 25 Q What were you going to do with the SONIA TOTH & ASSOCIATES (305)854-7710 406 1 remaining net proceeds from the sale of 2 "Thee Viking"? 3 A Turn it over to the father and the son. 4 Q Why the father and the son? 5 A Because they were my partners in the 6 vessel. 7 Q At any time, did you say to anybody that 8 you would not do that? 9 A No, never. 10 Q In terms of knowledge that the boat was 11 for sale, was there any news coverage in Iceland 12 that the boat was for sale? 13 A Yes. 14 Q Did you ever have a communication with 15 Tryggvi Jonsson in which he confirmed his 16 understanding that the boat was for sale? 17 A Yes, he had commented, when I told him I 18 was going to put the boat up for sale, he told 19 me -- because he had planned to come down here with 20 his family in June, and he told me that: I guess 21 I'm not coming because you're going to put the boat 22 up for sale. 23 Q Approximately when did the father and son 24 stop sending you payments for the reimbursement of 25 expenses concerning the boat? SONIA TOTH & ASSOCIATES (305)854-7710 407 1 THE COURT: Whoa, whoa, whoa, read back 2 that question. 3 (Thereupon, the requested portion was read 4 back by the court reporter as follows: 5 "Question: Approximately when did the 6 father and son stop sending you payments for 7 the reimbursement of expenses concerning the 8 boat?") 9 THE COURT: Objection sustained. There's 10 been no evidence the father and son were 11 sending reimbursements at all, ever. The 12 question assumes something that's not in 13 Evidence. 14 BY MR. GOODMAN: 15 Q Regardless -- let me backtrack for a 16 second here. 17 When you received reimbursements for 18 expenses, pursuant to what agreement were you 19 receiving those monies? 20 A I was sending invoices to Baugur Group 21 every month for reimbursement. 22 Q Yes. What agreement did you have? 23 THE COURT: Even in the absence of an 24 objection, I'm not going to allow to you 25 re-plow that total territory. I've gone SONIA TOTH & ASSOCIATES (305)854-7710 408 1 through that entire acreage. I remember what 2 happened back there, so you don't have to 3 refresh my memory. 4 If you want to go forward, go forward, but 5 I'm not going to re-do all of those things that 6 I've already allowed you to do. 7 MR. GOODMAN: All right, Your Honor. I'll 8 go forward. 9 BY MR. GOODMAN: 10 Q At what point did you stop receiving 11 reimbursements for monthly expenses? 12 A That was in June of 2002. 13 Q Did you or Nordica or New Viking continue 14 to make, for some period of time, monthly payments 15 for "Thee Viking" after you were no longer receiving 16 reimbursement? 17 A Yes, we did. 18 Q For approximately how long were you making 19 those payments? 20 THE COURT: Wait a minute, I'm not trying 21 to be difficult, but you asked about three 22 entities, whether they made any payments, then 23 you proceed without telling me who made the 24 payments, if -- you know, I'm trying to follow 25 you real closely, and the closer your question SONIA TOTH & ASSOCIATES (305)854-7710 409 1 is the closer I can follow. 2 You said whether or not he or Nordica or 3 someone else or anybody else made any payments. 4 I'm trying to find out who made the payments 5 after they stopped giving him money. 6 MR. GOODMAN: I agree with you, 7 Your Honor, the question could have been more 8 sharply phrased, and I'll do that. Thank you. 9 BY MR. GOODMAN: 10 Q Mr. Sullenberger, did New Viking make any 11 payments for the vessel, "Thee Viking," after June 12 of 2002? 13 A Nordica is the one that made the payments 14 before June. 15 Q All right. So let's try to get a specific 16 answer to my specific question. The specific 17 question is: Did New Viking make payments for the 18 boat after June of 2002? 19 A I may have made some payments out of 20 New Viking's account, yes. 21 Q All right. And did Nordica make payments 22 for expenses relating to "Thee Viking" after June of 23 2002? 24 A Yes, we did. 25 Q When was the last payment SONIA TOTH & ASSOCIATES (305)854-7710 410 1 that -- approximately, the last payment that Nordica 2 made concerning "Thee Viking"? 3 A Approximately last payment was in October 4 of 2002. In January 27, 2003, I, personally, made 5 the payment out of my personal account. That was -- 6 Q To whom? 7 A To Union Planters Bank. 8 Q Concerning the loan for the boat? 9 A That's correct. 10 Q All right. From where did you get the 11 money that you personally paid Union Planters Bank 12 in January of 2003? 13 A I refinanced my house, and a portion of 14 that went into that repayment. 15 Q With what broker or agent did you try to 16 sell the boat through? 17 A A company called Marina One, and his name 18 is Tony Chernoff. 19 Q Tony Chernoff? 20 A Yes. 21 Q Was a listing agreement or contract 22 entered into with Marina One? 23 A That is correct. 24 Q What entity entered into that listing 25 agreement? SONIA TOTH & ASSOCIATES (305)854-7710 411 1 A New Viking, Inc.; and I signed it, 2 personally. 3 Q Did Mr. Chernoff and Marina One make 4 efforts to sell the vessel, "Thee Viking"? 5 A Yes, they did. 6 Q Are you still in contact with 7 Mr. Chernoff? 8 A Yes, I am. 9 Q What has Mr. Chernoff told you about 10 whether he has any potential buyers for 11 "Thee Viking"? 12 MS. SULLIVAN: Objection, Your Honor. 13 THE COURT: Sustained. 14 BY MR. GOODMAN: 15 Q Concerning Gaumur's claim of lien in this 16 case, did Gaumur ever put up a letter of credit in 17 connection with any of the three vessels? 18 A No, they did not. 19 Q Who did? 20 A Bonus, in 1996. 21 Q Did you have an agreement which would 22 compensate you -- you, personally, 23 Mr. Sullenberger -- for the labor and effort that 24 you invested into managing, operating, supervising 25 the three boats? SONIA TOTH & ASSOCIATES (305)854-7710 412 1 A Yes. 2 Q What was that agreement? 3 A The agreement was that they would 4 compensate me for all the work, my responsibility, 5 all the loans, all the mortgages. This was all to 6 be in my name. I was responsible for that. 7 Plus, I took good care of it, and 8 maintained the boats in a very good manner, and that 9 was the agreement. 10 Q Have you ever received -- 11 THE COURT: Whoa, whoa, "they would 12 compensate me," who was "they"? 13 THE WITNESS: The father and the son. 14 BY MR. GOODMAN: 15 Q The agreement -- 16 A Yes. 17 Q -- that you just told me about, who was 18 the agreement reached with? 19 A The agreement was reached with 20 Tryggvi Jonsson. 21 Q On behalf of? 22 A The father and the son. 23 Q Now, when you reached this agreement, did 24 you know specifically where the money would come 25 from to pay you for your labor and efforts? Do you SONIA TOTH & ASSOCIATES (305)854-7710 413 1 understand what I'm asking you? 2 A Uh-huh. No, there was no money coming, 3 this was just an ownership in the vessels. 4 Q In other words, your efforts would be 5 recognized when it came time to allocating the 6 ownership interest? 7 A That is correct. 8 Q All right. Was there ever -- withdrawn. 9 Did the father or son -- 10 THE COURT: Let me ask a question. Your 11 investment in the vessel is consisting of in 12 kind contributions on your part, excluding cash 13 contributions; is that correct? 14 THE WITNESS: That's correct. 15 THE COURT: That sort of summarizes a lot 16 of stuff, doesn't it? 17 MR. GOODMAN: It does. 18 THE COURT: Thank you. 19 BY MR. GOODMAN: 20 Q At any time, did the son tell you that 21 Tryggvi Jonsson no longer had authority to negotiate 22 on his behalf concerning the boats? 23 A No, never. 24 Q At any time, did the father advise you 25 that Tryggvi Jonsson no longer had authority to SONIA TOTH & ASSOCIATES (305)854-7710 414 1 negotiate on his behalf concerning the boats? 2 A No, never. 3 Q But did you, personally, use the vessel, 4 "Thee Viking," on your own when the father and son 5 were not here in South Florida? 6 A Yes, I did. 7 Q And on those occasions, who paid for the 8 fuel, the food, and the other expenses concerning 9 the use of "Thee Viking"? 10 A I did, myself. 11 Q You, personally, did? 12 A Absolutely. 13 Q Did you ever submit a reimbursement 14 request for those expenses for your personal use of 15 the yacht? 16 A No, never. 17 Q Now, when the father and son used the 18 boat, what payment arrangements were made for fuel 19 and provisions and supplies? 20 A The same as before. I would pay for them, 21 Nordica, and then I would send an invoice for 22 reimbursement to them. 23 Q All right. And would that be included, 24 for example, in the $12,000 monthly invoices that 25 you would send to Baugur? SONIA TOTH & ASSOCIATES (305)854-7710 415 1 A Yes. 2 Q And then payments were received from 3 Baugur? 4 A That is correct. 5 MR. GOODMAN: May I have just a moment, 6 Your Honor? 7 BY MR. GOODMAN: 8 Q Were you provided with a credit card for 9 Gaumur's account in your name? 10 A Yes, I was. 11 Q How did that happen? 12 A Back in '96 and '97 -- 13 THE COURT: Again, that is fascinating 14 stuff, but I don't see what in the world this 15 has to do with the lis pendens. 16 MR. GOODMAN: All right. Then may I have 17 just a moment? 18 THE COURT: Yes. 19 You're trying the lawsuit on the merits; 20 basically, when this thing is over, this 21 gentleman doesn't have to come back anymore. 22 You can just submit the transcript and say: 23 That's what we were going to testify to. 24 Really, there's not much more that I can 25 think of that he could testify to that's SONIA TOTH & ASSOCIATES (305)854-7710 416 1 relevant to the broad concept of the subject 2 matter of this pending action. 3 That's just an observation. You just keep 4 grinding right on, because I'm going to grind 5 with you. 6 MR. GOODMAN: All right. May I have just 7 a moment, Your Honor? 8 THE COURT: Yes. 9 MR. GOODMAN: To continue with your 10 metaphor, Your Honor, I may, in fact, at this 11 point, be done grinding on Direct. 12 THE COURT: I didn't mean to offend you, I 13 just meant that it's -- 14 MR. GOODMAN: I don't -- 15 THE COURT: -- it's fairly clear to me 16 that we have so far exceeded the scope of what 17 I would consider broadly the issues before me 18 that I just don't know how otherwise to 19 characterize it. 20 MR. GOODMAN: I'm not offended, 21 Your Honor. 22 THE COURT: None intended. I've known you 23 too long. You're too polished and 24 sophisticated. 25 MR. GOODMAN: Now I'm in trouble. SONIA TOTH & ASSOCIATES (305)854-7710 417 1 THE COURT: You're not in trouble around 2 me. 3 MR. GOODMAN: Just a moment, I have one 4 other exhibit. 5 BY MR. GOODMAN: 6 Q Concerning the issue of Gaumur's claim of 7 lien, and the amount of the purported lien, are you 8 familiar with Gaumur's financial statements for year 9 2001? 10 A Yes, I am. 11 Q Does the purported loan from Gaumur, which 12 they outline in the affidavit, appear in Gaumur's 13 2001 financial statement? 14 MS. SULLIVAN: Objection, Your Honor; the 15 financial statement is the best evidence, and 16 what's contained therein. 17 THE COURT: I'll sustain it on the 18 objection of the grounds stated, although it 19 gets to be one of the more relevant questions 20 that you've asked, but it's objectionable for 21 the grounds she stated. 22 MR. GOODMAN: The ground was that the 23 document is the best evidence? 24 THE COURT: Correct. 25 MR. GOODMAN: Well, I happen to have SONIA TOTH & ASSOCIATES (305)854-7710 418 1 Gaumur's 2001 financial statement, Your Honor. 2 THE COURT: You may be in our club or you 3 may not, I don't know. 4 MR. GOODMAN: Let me mark this as 5 Exhibit M. 6 Courtesy copy for Counsel, for Your Honor. 7 (Thereupon, the above-referred to document 8 was marked as Defendant's Exhibit M for 9 Identification.) 10 MR. GOODMAN: Your Honor, in the interest 11 of moving things along -- 12 THE COURT: Either we're going to stop 13 right now or we're not, and so, I'm hungry. 14 MR. GOODMAN: All right. We can take a 15 break now. 16 THE COURT: We will take a break. I'll 17 see you at 2:00. 18 This is off the record. We are recessed. 19 (Thereupon, a luncheon recess was had from 20 12:00 to 2:25, after which the proceedings 21 continued in Volume IV.) 22 23 24 25 SONIA TOTH & ASSOCIATES (305)854-7710 419 1 IN THE CIRCUIT COURT OF THE 11TH JUDICIAL CIRCUIT, IN AND 2 FOR DADE COUNTY, FLORIDA 3 CASE NO.: 02-29149 CA 11 4 GAUMUR, e.h.f., an VOLUME IV OF V Icelandic corporation, PAGES 419 TO 524 5 Plaintiff, 6 vs. 7 JON GERALD SULLENBERGER, 8 individually, and NEW VIKING, INC., a Delaware corporation, 9 Defendants, 10 _____________________________________/ 11 Dade County Courthouse 12 73 West Flagler Street 14th Floor 13 Miami, Florida June 25, 2003 14 9:35 a.m. to 5:00 p.m. 15 16 17 The above-entitled case came on for hearing 18 before General Master John R. Farrell, pursuant to notice. 19 ------------- 20 21 22 23 24 25 SONIA TOTH & ASSOCIATES (305)854-7710 420 1 APPEARANCES: 2 EMMET, MARVIN & MARTIN, LLP 3 177 Madison Avenue Morristown, New Jersey 07960 4 BY: JUDITH SULLIVAN, Esq. and 5 EMMET, MARVIN & MARTIN, LLP 120 Broadway 6 32nd Floor New York, New York 10271 7 BY: KARLENE J. ROGERS, Esq. and 8 GENOVESE, JOBLOVE & BATTISTA, P.A. Bank of America Tower 9 100 Southeast 2nd Street 36th Floor 10 Miami, Florida 33131 BY: AMANDA JASON, Esq. 11 Appearing on behalf of the Plaintiff. 12 AKERMAN, SENTERFITT & EIDSON, P.A. 13 One Southeast Third Avenue 28th Floor 14 Miami, Florida 33131-1704 BY: JONATHAN GOODMAN, Esq., 15 and PAM G. LEVINSON, ESQ. Appearing on behalf of the Defendant. 16 ALSO PRESENT: 17 GENOVESE, JOBLOVE & BATTISTA, P.A. 18 Bank of America Tower 100 Southeast 2nd Street 19 36th Floor Miami, Florida 33131 20 BY: JOHN H. GENOVESE, Esq. 21 JON GERALD SULLENBERGER 22 23 24 25 SONIA TOTH & ASSOCIATES (305)854-7710 421 1 I N D E X 2 WITNESS VOLUME PAGE 3 JON SULLENBERGER 4 Cross-Examination By Ms. Sullivan IV 439 Redirect Examination By Mr. Goodman IV 504 5 E X H I B I T S 6 DEFENDANT'S VOLUME PAGE 7 Exhibit N for ID IV 424 8 Exhibit O for ID IV 433 Exhibit O received in Evidence IV 435 9 Exhibit P for ID IV 505 Exhibit P received in Evidence IV 506 10 Exhibit Q for ID IV 507 Exhibit Q received in Evidence IV 508 11 PLAINTIFF'S VOLUME PAGE 12 Exhibit Number 2 for ID IV 468 13 Exhibit Number 2 received in Evidence IV 470 Exhibit Number 3 for ID IV 481 14 Exhibit Number 3 received in Evidence IV 482 Exhibit Number 4 for ID IV 484 15 Exhibit Number 4 received in Evidence IV 485 Exhibit Number 5 for ID IV 488 16 Exhibit Number 5 received in Evidence IV 489 Exhibit Number 6 for ID IV 490 17 Exhibit Number 6 received in Evidence IV 491 18 19 20 21 22 23 24 25 SONIA TOTH & ASSOCIATES (305)854-7710 422 1 Thereupon: 2 (The following proceedings were had:) 3 THE COURT: All right, sir. 4 MR. GOODMAN: Mr. Sullenberger, would you 5 please -- 6 THE COURT: You had a document that you 7 wanted to mark for Identification? 8 MR. GOODMAN: I believe we did. 9 THE COURT: Marked as? 10 THE CLERK: M. 11 MR. GOODMAN: M as in Mark. 12 BY MR. GOODMAN: 13 Q Without telling us what's actually 14 substantively in the document, just briefly explain, 15 what is Exhibit M marked for ID, please? 16 A This is a document made by KPMG, financial 17 statement for Gaumur, e.h.f., for the year 2001. 18 MR. GOODMAN: Your Honor, there is no 19 English translation of that document that we 20 have right now. 21 THE COURT: Well, it's marked for 22 Identification. 23 MR. GOODMAN: It is, and just to make a 24 record, we would offer that exhibit. 25 THE COURT: Well, upon the objection which SONIA TOTH & ASSOCIATES (305)854-7710 423 1 is forthcoming, based on the grounds previously 2 announced in connection with a similar document 3 offered, same ruling: Denied. 4 MR. GOODMAN: I understand, Your Honor. 5 THE COURT: I'll sustain the objection. 6 MR. GOODMAN: I will just point out, not 7 having to do with introducing this document 8 into Evidence, but this document was never 9 produced to us. You will recall we had a lot 10 of discussion about documents produced or not 11 produced by Gaumur, and I'm simply noting that 12 this was not produced to us by Gaumur. 13 THE COURT: All right. 14 That's not Sarafan. 15 MS. SULLIVAN: No, Your Honor. We put 16 makeup on him. 17 MS. JASON: Amanda Jason, with Genovese, 18 Joblove. 19 MS. SULLIVAN: Your Honor, so the record 20 is complete, we also have a hearsay objection 21 to this document. It hasn't been properly 22 authenticated, in addition to the translation 23 objection. 24 THE COURT: All right. Proceed, 25 Mr. Goodman. SONIA TOTH & ASSOCIATES (305)854-7710 424 1 BY MR. GOODMAN: 2 Q All right. I'm going to show you, sir, 3 what we're going to mark for ID as Composite 4 Exhibit N. 5 (Thereupon, the above-referred to document 6 was marked as Defendant's Exhibit N for 7 Identification.) 8 MR. GOODMAN: And, Your Honor, although 9 this is an exhibit that has many, many, many 10 pages, please understand, I have no intent to 11 go through these on a page by page basis at 12 all. 13 THE COURT: Sure. 14 BY MR. GOODMAN: 15 Q Mr. Sullenberger, if you would, please 16 take a look at a binder which I am showing you which 17 has been marked for Identification as Exhibit N, and 18 without telling us the specific contents of each and 19 every page, just sort of explain, generally, what 20 does this exhibit consist of? 21 A Those are basically cover pages from 22 Nordica, and invoices, and confirmation on wire 23 transfers coming from Baugur to either New Viking 24 account or Nordica account. 25 Q For the boats? SONIA TOTH & ASSOCIATES (305)854-7710 425 1 A For the boats. 2 Q So every piece of paper in this binder 3 concerns the three boats at issue in this case? 4 Let me phrase it differently. Does this 5 concern the third boat? 6 A This concerns the third boat, yes. 7 Q All right. And did you, personally, with 8 me, review yesterday -- 9 THE COURT: Hold on. Which one was it? I 10 mean, you said it one way, and then you 11 corrected it. Is this all three or just the 12 third? 13 BY MR. GOODMAN: 14 Q Are these documents for just the third 15 boat, sir? 16 A Yes, this is for the third boat. 17 Q All right. And did you and I review, on a 18 page by page basis, the documents which are in this 19 binder yesterday? 20 A Yes, I did. 21 Q All right. And you confirmed that these 22 documents relate to the third boat? 23 A Yes, sir, that's correct. 24 MR. GOODMAN: We would offer these, 25 Your Honor. SONIA TOTH & ASSOCIATES (305)854-7710 426 1 MS. SULLIVAN: Your Honor, I have never 2 seen these documents in this case before. It 3 could be that, without my file, these could be 4 documents that we produced, our law firm 5 produced on behalf of a different client, 6 Baugur, in connection with a separate 7 litigation between Baugur and Nordica. 8 I don't have my Baugur client with me, and 9 I had no understanding that they were going to 10 be relying on these documents today. In our 11 first request for production of documents, at 12 number 20, we asked for: All other documents 13 that you will rely upon in your defense of the 14 claims in the complaint. 15 Since I've never seen this before in 16 connection with this lawsuit, I do not have my 17 Gaumur client with me to look this over, I'm 18 going to object because it wasn't produced to 19 us in advance of today's evidentiary hearing. 20 MR. GOODMAN: I'm not clear on the nature 21 of the objection, but I can represent to you -- 22 THE COURT: Failure to comply with one of 23 the pretrial requirements. 24 MR. GOODMAN: Well, these documents, in 25 fact, are her client's own documents. Every SONIA TOTH & ASSOCIATES (305)854-7710 427 1 single document in this binder, Your Honor, you 2 will see, has a Bates number on the binder, 3 which reflects that it's their documents, which 4 we just got the other day. 5 And the mere fact that -- 6 THE COURT: In this case? 7 MR. GOODMAN: No, they were produced to us 8 in the other case, but they relate to this 9 boat. It doesn't matter where they were 10 produced. 11 THE COURT: Well, the Summerland 12 Corporation probably has documents that relate 13 to this boat in this case, as well, that 14 doesn't mean if they haven't been produced and 15 brought here that they are admissible. 16 MR. GOODMAN: I understand, Your Honor, 17 but we have authenticated the documents, the 18 witness says he has reviewed these documents, 19 that they are, in fact, invoices and telefaxes 20 for the third boat in this case. He's told you 21 he's reviewed them, every single piece of paper 22 yesterday, and that they all relate to the 23 third boat. 24 The fact that Ms. Sullivan says that she 25 didn't produce them in this case has no SONIA TOTH & ASSOCIATES (305)854-7710 428 1 bearing -- 2 THE COURT: Well, it does as far as I'm 3 concerned, maybe not as far as you're 4 concerned. 5 But, I mean, her client may be involved in 6 a dozen different lawsuits around the country, 7 perhaps even around the world. Does that mean 8 that anything that was produced, received in 9 the other lawsuits, is automatically fodder for 10 this? 11 MR. GOODMAN: Your Honor, maybe I'm not 12 doing a good enough job of explaining. 13 THE COURT: You're doing a wonderful job; 14 unfortunately, I understand precisely what 15 you're saying. There's another piece of 16 litigation in which your client is also 17 involved, and production has taken place in 18 that case; and she was very careful to say, if 19 I understood her correctly, that she had not 20 seen these in any production in this case. She 21 used that very carefully. 22 MR. GOODMAN: That's true, Your Honor. 23 There's no rule, that I know of, a 24 statute, a rule of evidence, an internal rule 25 of judicial administration, or anything else SONIA TOTH & ASSOCIATES (305)854-7710 429 1 that prevents me from using, in one case, 2 documents that were produced in another case. 3 THE COURT: Well, I just invented that 4 rule, then, because if you're required to 5 produce things in one case, and you come in, in 6 that case, with documents from another case, 7 without specifically referring to them as, 8 either by reference and incorporated by 9 reference, or by producing them or otherwise, 10 then you just heard of a brand new rule. 11 But now let me give you an old rule that 12 I'm going to apply to that brand new rule, 13 quote, unquote, the rule that I just invented. 14 I'm treating this as a summary, because this is 15 an aggregation of a variety of documents, and 16 it appears that, at least on some pages -- this 17 says 900, 1,003, I'm not sure they're all in 18 here, but at least some of them, and under the 19 Rules of Evidence, there are certain 20 requirements for the use of a summary, if you 21 intend to use a summary, and those, apparently, 22 have not been met. 23 MR. GOODMAN: Your Honor, this is not a 24 summary, this is the very documents themselves. 25 I'm not producing a chart -- SONIA TOTH & ASSOCIATES (305)854-7710 430 1 THE COURT: Mr. Goodman, I'm very sorry, 2 but I'm going to sustain the objection. I've 3 set my grounds for sustaining it, and any 4 others that might be applicable which I have 5 overlooked for the casual moment, but I might 6 come back later and add additional grounds. 7 MR. GOODMAN: All right. Well, it's 8 marked for Identification -- 9 THE COURT: Yes, it is. 10 MR. GOODMAN: -- and the witness has 11 testified as to the connection in this case, so 12 I'll move on to -- 13 THE COURT: Now, I'm not trying to tell 14 you or suggest to you, by any means at all, 15 that any particular document which might 16 otherwise incidentally appear in here might not 17 independently, if you chose to pursue that, 18 have a legitimate free-standing independent 19 basis for admission. I don't know. 20 But I'm saying that offering this folder, 21 this binder with, I don't know, maybe 300, 200 22 or 300 pieces of paper in it, in the fashion 23 which it's been brought before me, and before 24 the witness, unacceptable, and that's why I 25 made my ruling. SONIA TOTH & ASSOCIATES (305)854-7710 431 1 MR. GOODMAN: All right. 2 THE COURT: Sure. 3 BY MR. GOODMAN: 4 Q Mr. Sullenberger, I'd like you to tell the 5 Court if you had a meeting in February of 2002 with 6 anyone in connection with the third boat in this 7 case. 8 A In the beginning of February, I was asked 9 to attend a meeting and asked to bring my wife with 10 me. Tryggvi Jonsson had arranged a meeting with a 11 lawyer in Coral Gables. He did not tell us what the 12 purpose of that meeting was, just to show up. 13 That afternoon we met -- 14 THE COURT: Who was it that asked you to 15 come? 16 MR. GOODMAN: Tryggvi Jonsson. 17 THE COURT: Excuse me, my ear is terribly 18 bad. I don't mean to offend you, but every now 19 and then -- 20 MR. GOODMAN: Tryggvi, the same 21 Tryggvi that -- 22 THE COURT: I pronounce it a little 23 differently. I have sort of a Southern accent. 24 MR. GOODMAN: His nickname might be 25 "Bubba." SONIA TOTH & ASSOCIATES (305)854-7710 432 1 THE COURT: Actually, Tryggvi is a name 2 that I'm not unfamiliar with. You may be too 3 young to realize it, one of the earliest 4 secretaries of the United Nations was 5 Tryggvi Lee. 6 MR. GOODMAN: I probably am too young to 7 remember that, but that's a good Double 8 Jeopardy question, Your Honor. 9 BY MR. GOODMAN: 10 Q Tell us, if you would, sir, what happened 11 at this meeting in February 2002, in Coral Gables, 12 concerning the boat in this case. 13 A We met in the meeting with Tryggvi, my 14 wife, Johanna, myself, and his lawyer. 15 And when we got there and we sat down and 16 the meeting started, it came up that he wanted us 17 to -- he was actually -- Tryggvi was introducing us 18 to this lawyer because he had hired this lawyer, and 19 his position was to find out the best way to 20 transfer the shares of New Viking to Miramar company 21 in Bahamas. 22 Q Who was Mr. Tryggvi Jonsson representing 23 at this meeting? 24 A The father and the son. 25 Q Sir, concerning the payments that SONIA TOTH & ASSOCIATES (305)854-7710 433 1 New Viking made for the third boat, by way of 2 example only, I just want to show you one invoice of 3 an illustrative invoice, which I'll have marked for 4 Identification as Exhibit O. 5 THE COURT: Excuse me, what did you say 6 that was? This was something about showing a 7 payment for the boat? 8 MR. GOODMAN: Yes, Your Honor. 9 THE COURT: I thought the boat was bought, 10 for which I have an invoice here from the yacht 11 broker for the whole thing. 12 MR. GOODMAN: It's for an expense for the 13 boat. 14 THE COURT: Oh, an expense. 15 MR. GOODMAN: Post purchase expense. 16 THE COURT: Oh, thank you. Good. 17 And you're marking this as O, right? 18 MR. GOODMAN: Yes, Your Honor, O. 19 (Thereupon, the above-referred to document 20 was marked as Defendant's Exhibit O for 21 Identification.) 22 BY MR. GOODMAN: 23 Q Mr. Sullenberger, without going into any 24 specific detail, take a look at what we've marked as 25 Exhibit O for Identification, and tell us what the SONIA TOTH & ASSOCIATES (305)854-7710 434 1 first page is and what the second page is. 2 THE COURT: It's being offered? 3 MR. GOODMAN: I've given them -- 4 THE COURT: It's been marked. 5 MR. GOODMAN: I've given them a copy, I 6 was just going to briefly identify it. 7 THE COURT: Well, you're talking about 8 getting into the substance of it. 9 MR. GOODMAN: All right. We would offer 10 this exhibit, Your Honor. 11 MS. SULLIVAN: Your Honor, again, I have 12 the same objection. We requested in our first 13 request for production of documents -- 14 MR. GOODMAN: It was produced a long time 15 ago, ma'am. 16 MS. SULLIVAN: I'm sorry, I wasn't 17 finished speaking. 18 And if it was produced, can I get the 19 Bates stamp page number from what was produced 20 so I can find it in my records? 21 THE COURT: Do you happen to have that? 22 MR. GOODMAN: I don't have it with me, 23 Your Honor, but it's my understanding that that 24 document was, in fact, produced, along with 25 hundreds and hundred of other pages of SONIA TOTH & ASSOCIATES (305)854-7710 435 1 documents. 2 THE COURT: Well, Ms. Sullivan, it's your 3 contention that you've not seen this document? 4 MS. SULLIVAN: I don't recall seeing it, 5 Your Honor. Without a Bates stamp, I can't 6 tell you for sure. 7 THE COURT: Well, there's no legal 8 requirement for a Bates stamp, at least none 9 that I am aware of, that was imposed by order 10 in these proceedings. 11 MS. SULLIVAN: That's true, Your Honor, 12 but I guess I can preserve my objection for the 13 record if it wasn't produced. 14 THE COURT: All right. Then I'm going to 15 admit it on that basis; and if, at a subsequent 16 time, it can be demonstrated that this was not 17 produced, then it will be struck and expunged 18 from the record -- struck, not expunged, 19 because it will remain marked for 20 Identification. 21 All right. So Defendant's O is admitted. 22 (Thereupon, the above-referred to document 23 was received in Evidence as Defendant's 24 Exhibit O.) 25 MR. GOODMAN: Thank you, Your Honor. SONIA TOTH & ASSOCIATES (305)854-7710 436 1 BY MR. GOODMAN: 2 Q What's the first page, Mr. Sullenberger? 3 A This is an invoice from Norseman Ship 4 Builder, March -- 22nd of March, 2001, to 5 "Thee Viking," and owner, Jon Sullenberger. 6 Q And this is for a post purchase expense 7 for the third vessel, "Thee Viking"? 8 A That is correct. 9 Q What's on the second page, sir? 10 A The second page is a check from New Viking 11 account to Norseman, which I issued and signed for 12 to pay for this invoice. 13 Q All right. And did you seek reimbursement 14 for this $7,232 check that you issued to Norseman 15 Ship Building Corporation for work done on 16 "Thee Viking"? 17 A This would be a part of the $12,000 18 monthly fees. 19 Q All right. This is an example of some of 20 the expenses that you incurred on a monthly basis? 21 A That's correct. 22 Q All right. Concerning the son's efforts 23 to hide his ownership interest in the vessel, 24 "Thee Viking," can you explain to General Master 25 Farrell any other examples of that other than what SONIA TOTH & ASSOCIATES (305)854-7710 437 1 you've already told us? Because we don't want to be 2 repetitive. 3 A Basically, like I said before, the 4 pictures, I recall one of the associates at Bonus, 5 one of the store managers had taken a video camera, 6 and he was taking films, and when Jon Asgeir saw 7 that, he told the gentleman to take the film out of 8 his camera and throw it in the ocean because they 9 were not allowed to have any evidence of them being 10 on this boat. 11 Q You heard the son tell this man on the 12 boat? 13 A Absolutely, and I saw him do that. 14 MS. SULLIVAN: Objection, Your Honor, I 15 didn't get it in quick enough before the 16 witness answered. 17 THE COURT: Grounds? 18 MS. SULLIVAN: Hearsay. 19 MR. GOODMAN: It's a statement from the 20 son, Your Honor. 21 THE COURT: I understand. I'm trying to 22 think of the phrase. It's a verbal act that he 23 is describing, which I don't believe is 24 excluded by reason of hearsay, so I'll overrule 25 the objection. SONIA TOTH & ASSOCIATES (305)854-7710 438 1 We'll find out if I'm right, but in any 2 event, I seem to recall that this falls within 3 the verbal act characterization, which is not 4 excluded under hearsay. 5 MS. SULLIVAN: My understanding is that 6 he's asked the witness as to a statement that 7 was made by another party who is not here. 8 THE COURT: I forgot exactly what it was, 9 but I haven't forgotten what my ruling was, and 10 I'm sure you haven't, either. 11 Go ahead. 12 BY MR. GOODMAN: 13 Q Mr. Sullenberger, before making the 14 decision to place "Thee Viking" up for sale, did you 15 exhaust other alternatives? 16 A Yes, many times. I tried to settle this 17 with -- 18 THE COURT: "Yes," is the answer to the 19 question? 20 THE WITNESS: Yes. 21 THE COURT: Thank you. 22 MR. GOODMAN: I agree. 23 Your Honor, at this time, for purposes of 24 Direct, we're done grinding. 25 THE COURT: All right. SONIA TOTH & ASSOCIATES (305)854-7710 439 1 MR. GOODMAN: Was it grinding or digging? 2 THE COURT: I don't know. 3 Listen, it's such a pleasure to have you 4 in the courtroom that anything is fair game. 5 You're a fine lawyer. 6 MR. GOODMAN: Thank you, Your Honor. 7 THE COURT: All right. 8 CROSS-EXAMINATION 9 BY MS. SULLIVAN: 10 Q You testified today, Mr. Sullenberger, 11 that your relationship with Mr. Johannesson was one 12 of great trust? 13 A Sure, absolutely. 14 Q Was your relationship with Mr. Jonsson 15 also one of great trust? 16 A Absolutely. 17 Q Would it surprise you if I told you that 18 Mr. Jonsson viewed you as almost like a son? 19 A No, I'm not surprised. 20 Q Did you ever make equal payments in 21 connection with the down payment for the first boat 22 with Mr. Johannesson? 23 A I made all the payments, so I'm not sure 24 what you mean by that. 25 Q Did you contribute a $15,000 sum as a down SONIA TOTH & ASSOCIATES (305)854-7710 440 1 payment for the first boat? 2 A I paid all the amount out of my checking 3 account to the down payment on the first boat. 4 Q You don't recall making a payment of 5 $15,000 towards the first boat, specifically? 6 A It wasn't done that way, at that time, no. 7 Q What happened to "Icelandic Viking I" when 8 "Thee Viking" was purchased? 9 A The "Icelandic I" was traded in for 10 "Icelandic Viking II." 11 Q Is it correct to say that you did not 12 completely fund the purchase of "Thee Viking"? 13 A Which one? 14 Q "Thee Viking." 15 A Are you talking about "Thee Viking," boat 16 number three? 17 Q Yes. 18 A "Thee Viking" number three was bought by 19 trading in boat number two and mortgage payment 20 taken out for the difference. 21 Q I don't think you answered my question. 22 Let me ask it again. 23 Is it correct to say that you did not 24 completely fund the purchase of "Thee Viking"? 25 MR. GOODMAN: Objection to the form of the SONIA TOTH & ASSOCIATES (305)854-7710 441 1 question, Your Honor. 2 THE COURT: I will sustain that. I'm not 3 sure I -- 4 THE WITNESS: I'm confused. 5 THE COURT: -- "you completely fund"? 6 MS. SULLIVAN: I'll ask it a different 7 way. 8 THE COURT: Please do. 9 BY MS. SULLIVAN: 10 Q Did you contribute any monies towards the 11 purchase of "Thee Viking"? 12 THE COURT: And by that, I infer you mean: 13 Did you, personally -- 14 MS. SULLIVAN: Mr. Sullenberger. 15 THE COURT: -- contribute any money? 16 THE WITNESS: For the boat number 17 two -- number three? 18 BY MS. SULLIVAN: 19 Q Yes. 20 A Absolutely. 21 Q How much did you contribute? 22 A Over the period of the last three years? 23 I'm a little confused. Are you talking about the 24 day we bought the boat, or for those almost three 25 years we had it? SONIA TOTH & ASSOCIATES (305)854-7710 442 1 Q The day you bought "Thee Viking," did you 2 bring any money, personally, to the closing? 3 A No, I did not. 4 Q How did the mortgages for "Icelandic 5 Viking I" and "Icelandic Viking II" get paid off? 6 A The mortgage on "Icelandic Viking I" was 7 paid off about, basically, from '96 to 2002; monthly 8 payments were made out of Nordica account, until 9 October -- if I can recall, October of 2002, the 10 letter of credit that had been in place from '96 was 11 drawn down to pay for the mortgage. 12 Q That was for "Icelandic Viking I" or "II," 13 I'm sorry? 14 A For "Icelandic Viking I." 15 Q What about the mortgage for 16 "Icelandic Viking II," how did that get paid off? 17 A That got paid off by a wire transfer for 18 $139,000 coming from Iceland, and the difference, I 19 paid. 20 Q When you say "from Iceland," do you know 21 what entity that wire transfer emanated from? 22 A Came from Gaumur. 23 Q From Gaumur? 24 A That's correct. 25 Q And what was the amount of that wire SONIA TOTH & ASSOCIATES (305)854-7710 443 1 again? 2 A It was 139,000. 3 Q Are you familiar with a company called 4 Isaldi, I-S-A-L-D-I? 5 A Yes, I am. 6 Q Do you have any understanding that Isaldi 7 is Gaumur's predecessor in interest? 8 A I had no knowledge of that until I saw 9 those documents, those hundred and six documents. 10 Q What was your understanding of what Isaldi 11 was prior to seeing these documents? 12 A I have no idea, ma'am. 13 Q So the only time you became familiar with 14 a company called Isaldi is when you reviewed the 15 documents that the Plaintiff produced in connection 16 with this case? 17 A That is absolutely correct. 18 THE COURT: For my assistance, when you 19 say "predecessor in interest," what, exactly, 20 do you mean by that? 21 Did Isaldi become Gaumur, or are you 22 referring to Gaumur succeeding to an interest 23 in a particular item that was previously solely 24 Isaldi's? 25 MS. SULLIVAN: First, Your Honor, SONIA TOTH & ASSOCIATES (305)854-7710 444 1 Bonus, h.f. -- 2 THE COURT: In other words, now formerly 3 known as Isaldi? 4 MS. SULLIVAN: Right. They changed their 5 name. It was originally Bonus, h.f., then it 6 went to Isaldi, then it went to Gaumur. 7 THE COURT: Okay. Thank you. 8 BY MS. SULLIVAN: 9 Q I'm going to show you from Plaintiff's 10 Exhibit Number 1, at the first hearing, Tab Number 11 6, a copy of the three pages that constitute that 12 exhibit. 13 MR. GOODMAN: Tab 6 or Page 6? 14 MS. SULLIVAN: Tab 6. 15 MR. GOODMAN: May I have a moment, 16 Your Honor? 17 What exhibit did you say that was, ma'am? 18 MS. SULLIVAN: Ours is marked with a stamp 19 from the clerk here, and it's Plaintiff's 20 Exhibit 1. 21 I don't mind if you look over his 22 shoulder. 23 MR. GOODMAN: No, no. I just seem to 24 recall some discussion about that exhibit. 25 Go ahead. Exhibit 1, Tab 6. Okay. SONIA TOTH & ASSOCIATES (305)854-7710 445 1 BY MS. SULLIVAN: 2 Q Would you look through the three pages 3 that constitute Tab 6? 4 MS. SULLIVAN: Does Your Honor have a copy 5 of that? 6 THE COURT: No, but go ahead. 7 BY MS. SULLIVAN: 8 Q The first page, is this the check that 9 Johanness Jonsson gave you in order to facilitate 10 the purchase of "Icelandic Viking II"? 11 A This is the check. He never gave it to 12 me. He brought this check with him when he 13 purchased boat number two, and I can recall that I 14 must have signed the check because it's to Nordica. 15 This never came to Nordica account. So, 16 obviously, at that time, I must have signed that 17 check over to the Bassett Boat Company. I 18 cannot -- I did not deposit this check to Nordica 19 account, no. 20 Q Did you ever deposit that check anywhere? 21 A No, I did not. 22 Q You never cashed the check? 23 A No, I did not. 24 Q What happened to the check? 25 A I just told you. This check was handed SONIA TOTH & ASSOCIATES (305)854-7710 446 1 over to the Bassett Boat Company. 2 Q To who? 3 A Bassett Boat. 4 Q Bassett Boat Company? 5 A That's correct. 6 Q And that was the company that -- 7 A -- that we were buying the boat from. 8 Q I see. 9 So the $200,000 was contributed towards 10 the purchase of the boat? 11 A The boat, absolutely. 12 Q Would you kindly turn to the last page of 13 the tab? 14 A Can I explain more, because there's more 15 on the page? 16 THE COURT: No. Just answer her question. 17 THE WITNESS: Okay. 18 BY MS. SULLIVAN: 19 Q Do you see a line item there for 140,000 20 U.S. dollars? 21 MR. GOODMAN: Which page, ma'am? 22 MS. SULLIVAN: I'm sorry, it's 200,000 23 U.S. dollars. 24 It's the last page of the exhibit, Tab 6. 25 THE WITNESS: I'm not sure. SONIA TOTH & ASSOCIATES (305)854-7710 447 1 MR. GOODMAN: Your Honor, excuse me; 2 objection to any questions about this 3 particular document. It's in Icelandic, and 4 there's no translation. 5 MS. SULLIVAN: Your Honor, it's already 6 in. 7 THE COURT: This is in Evidence; is it 8 not? 9 MR. GOODMAN: But she's questioning him 10 about this particular page, so we interpose 11 that objection. 12 MS. SULLIVAN: Your Honor -- 13 THE COURT: Well -- 14 MS. SULLIVAN: -- we had the translater 15 here last time, and there was no objection at 16 that time. 17 The witness has also testified that he's 18 fluent in Icelandic, hence, since it's already 19 in Evidence, I'm not sure that you can take it 20 out of Evidence, at this point. 21 THE COURT: I think Counsel is right, I 22 can't go forward and backwards at the same 23 time, since it is in Evidence. If I erred, I 24 erred by allowing it in. 25 I don't think that there was an objection SONIA TOTH & ASSOCIATES (305)854-7710 448 1 made at the time, probably because we had a 2 very competent translator/interpreter at that 3 time, but for whatever reason, I've allowed it 4 in; consequently, if the gentleman is able to 5 respond, I'm going to overrule the objection 6 and permit him to respond. 7 If, however, he is unable to respond 8 because of language difficulty, then he will 9 simply have to report that. 10 MS. SULLIVAN: Thank you, Your Honor. 11 BY MS. SULLIVAN: 12 Q Do you see the line item on that last page 13 of Tab 6 for 14,110,000 Icelandic Kronur? 14 A Yes, I do. 15 Q Do you see, in the upper left-hand corner, 16 a name and address of a company? 17 A Yes. It's the upper -- it's the name of 18 the bank and the address of the bank and its ID 19 number. 20 Q Do you see the name of a company anywhere 21 in that upper left-hand corner? 22 A Are you talking about Isaldi? 23 Q Yes. 24 A Yes, I see that name. 25 Q Do you have any basis to dispute that SONIA TOTH & ASSOCIATES (305)854-7710 449 1 14,110,000 in Icelandic Kronur was removed from the 2 bank account of Gaumur, its predecessor in interest, 3 to Isaldi? 4 MR. GOODMAN: Objection to the form of the 5 question, no foundation. 6 THE COURT: Sustained. 7 BY MS. SULLIVAN: 8 Q Did Gaumur ever reimburse you for expenses 9 related to "Thee Viking"? 10 A Are you talking about boat number three, 11 "Thee Viking"? 12 Q "Thee Viking." 13 A No, Gaumur never did pay for 14 "Thee Viking." 15 MR. GOODMAN: Mr. Sullenberger, listen to 16 the question. She said any expenses, not the 17 purchase. 18 BY MS. SULLIVAN: 19 Q Do you want to change your answer? 20 A Please repeat the question. 21 MS. SULLIVAN: Certainly. Actually, the 22 court reporter would be more appropriate to do 23 that. 24 (Thereupon, the requested portion was read 25 back by the court reporter as follows: SONIA TOTH & ASSOCIATES (305)854-7710 450 1 "Question: Did Gaumur ever reimburse you 2 for expenses related to "Thee Viking"?") 3 THE WITNESS: Yes, they did. 4 BY MS. SULLIVAN: 5 Q So you're changing your answer? 6 A Yes, I am. 7 Q Did you intend to have any other 8 stockholders other than yourself in New Viking? 9 A Yes, I did. 10 Q Now, you testified that Jon Asgeir and 11 Johanness Jonsson wanted to keep the boat a secret. 12 A Yes, I did. 13 Q Yet you also testified that they brought 14 friends, associate bankers, I'm not sure if you said 15 vendors, you can correct me if I'm wrong, down to 16 visit the boat, go on the boat, use the boat? 17 A Yes, they did. 18 Q Over the course of how many years? Was 19 that all three boats? 20 A All three boats. 21 Q Were you present at the last hearing on 22 April 14th and April 15th in this case? 23 A Yes, I was. 24 Q Did you hear all the testimony that was 25 provided by Mr. Jonsson and Mr. Johannesson? SONIA TOTH & ASSOCIATES (305)854-7710 451 1 A Yes, I did. 2 Q Did you hear Mr. Jonsson testify that the 3 total amount in cash at least contributed towards 4 one or three of the boats was approximately 5 $340,000? 6 MR. GOODMAN: Objection to the form of the 7 question. 8 THE COURT: Sustained. 9 First of all -- 10 MS. SULLIVAN: I'll break it up, 11 Your Honor. 12 THE COURT: Good. Please. 13 BY MS. SULLIVAN: 14 Q Did you hear Mr. Jonsson testify at the 15 last hearing, on April 14th or April 15th, that 16 Gaumur contributed $340,000 towards "Thee Viking"? 17 MR. GOODMAN: Objection. 18 THE COURT: Grounds? 19 MR. GOODMAN: Improper to have a witness 20 testify about what another witness said at 21 another hearing months earlier. 22 THE COURT: Well, I'm not sure that that's 23 so. The question is just simply: Did you hear 24 him testify to this? That's like: Did you see 25 the sun come up yesterday? I mean, you did or SONIA TOTH & ASSOCIATES (305)854-7710 452 1 you didn't or you don't recall, whatever. 2 There's nothing tentative about it, so your 3 objection is overruled. You may agree with me 4 or not. 5 MS. SULLIVAN: Would Your Honor direct the 6 witness to answer? 7 THE COURT: He didn't realize it was time 8 for him to answer. It's not a question of 9 instructing him, but you may answer the 10 question now. 11 THE WITNESS: Yes, I heard him say that. 12 BY MS. SULLIVAN: 13 Q Was Mr. Jonsson lying when he gave that 14 testimony? 15 A Absolutely. 16 Q And did you also hear Mr. Johannesson 17 testify at that last court hearing? 18 A Yes, I did. 19 Q Did you hear Mr. Johannesson testify that 20 Gaumur contributed $340,000 towards "Thee Viking"? 21 MR. GOODMAN: Objection to the form of the 22 question. 23 Can we have a particular page number that 24 she is referring to from the transcript? 25 THE COURT: Do you have a particular page SONIA TOTH & ASSOCIATES (305)854-7710 453 1 number that you could assist us with as to the 2 transcript? 3 MS. SULLIVAN: Possibly, Your Honor. 4 Page 219. 5 MR. GOODMAN: Of day one or day two, 6 ma'am? 7 MS. SULLIVAN: Day two. 8 I'm sorry, he's asking about 9 Mr. Johannesson, that was Mr. Jonsson's 10 testimony. Mr. Johannesson is at 294. 11 Here it is, Your Honor, at Page 294, lines 12 5 through 16. 13 THE COURT: Why don't we read that portion 14 to the witness, not unlike would be done in 15 deposition, and then inquire of the witness. 16 MR. GOODMAN: Beginning at line 5? 17 THE COURT: Yes. You might read it out 18 loud so I can share it with you. 19 MS. SULLIVAN: It says: 20 "Question: Mr. Johannesson, as we sit 21 here today, are you able to explain to His 22 Honor, Master Farrell, which expenses which 23 your company paid went in connection for the 24 first boat, which went in connection with the 25 second boat and which were paid in connection SONIA TOTH & ASSOCIATES (305)854-7710 454 1 with the third boat? 2 "Answer: It was somewhere in the region 3 of 17 to $15,000 pertaining to the first boat, 4 a total of $200,000 in boat number two, and 5 then we advanced $140,000 to lift a lien to pay 6 the mortgage on boat number two in order to be 7 able to purchase boat number three." 8 MR. GOODMAN: And if you would, just in 9 context, ma'am, read the rest of the question 10 and answer, in fairness. 11 THE COURT: Would you, please? 12 MS. SULLIVAN: I'm not sure I understand 13 what he wants me to do. 14 THE COURT: He wants you to read the next 15 ensuing question and response, not unlike as 16 indicated in reporting through deposition. 17 MS. SULLIVAN: I'm sorry, Your Honor, I 18 think -- 19 THE COURT: You stopped at a certain 20 point. 21 MS. SULLIVAN: Right. I'm only asking 22 about this question and answer. 23 THE COURT: Well, what I'm asking you to 24 do is read -- I'm treating this as though you 25 are reading from a deposition, and in the SONIA TOTH & ASSOCIATES (305)854-7710 455 1 reading of a deposition, any party may request 2 that the other party who is reading from 3 portions of a deposition may request that other 4 portions that are relevant thereto also be read 5 in order for the totality of the contents to 6 appear. That's what I'm asking you to do here. 7 Consequently, would you read the next 8 question and response following the point in 9 which you stopped? Am I clear on that? 10 MS. SULLIVAN: The next question and 11 answer, you want me to read? 12 THE COURT: Yes. 13 MS. SULLIVAN: 14 "Question: And so how much money, sir, do 15 you say Gaumur paid for the purchase of the 16 third boat, "Thee Viking"? 17 "Answer: No." 18 THE COURT: No? 19 MR. GOODMAN: And then the next question 20 and answer puts it in context. 21 THE COURT: You'll have him on Redirect 22 Examination. I have to blow the whistle 23 somewhere. 24 I don't have it in front of me, 25 Mr. Goodman. SONIA TOTH & ASSOCIATES (305)854-7710 456 1 MR. GOODMAN: May I give it to Your Honor? 2 It's just the very next line, Your Honor, right 3 over here. 4 THE COURT: The next line, for the benefit 5 of all present is: 6 "Question: Meaning no money? 7 "Answer: Gaumur paid the loan on boat 8 number two in order to facilitate that the 9 purchase of boat number three could be 10 realized." 11 All right. That's the totality of it. So 12 that's the background of a question that the 13 lady lawyer is about to pose to you. 14 Now, forgive me for interposing myself, 15 but I'm trying to get a handle on something 16 here. 17 BY MS. SULLIVAN: 18 Q You heard this testimony at the last court 19 appearance? 20 A Yes, I did. 21 Q Was Mr. Johannesson telling the truth when 22 he gave that testimony? 23 A Yes and no. 24 Q You testified earlier today that your 25 interest in "Thee Viking" -- I'm sorry, withdraw SONIA TOTH & ASSOCIATES (305)854-7710 457 1 that. 2 You testified earlier today that you went 3 to the Bahamas with Mr. Jonsson and others in order 4 to facilitate the transfer of ownership interest in 5 "Thee Viking" to a company called Miramar? 6 MR. GOODMAN: Objection. 7 THE WITNESS: No, I did not. 8 MR. GOODMAN: Mr. Sullenberger, please, 9 sir. 10 Objection to the form of the question; 11 misstates prior testimony; lack of foundation; 12 misleading. 13 THE COURT: There is nothing wrong with 14 the form of the question, it's 15 Cross-Examination, and leading is perfectly 16 proper. 17 MR. GOODMAN: No, no, I said "misleading." 18 THE COURT: Well, you had four separate 19 grounds, if you give me a chance to get to them 20 all. 21 MR. GOODMAN: I'm sorry. 22 THE COURT: The second one was -- I forgot 23 what it was now, but I believe that there was 24 inadvertent, or otherwise, a 25 mischaracterization of his earlier testimony, SONIA TOTH & ASSOCIATES (305)854-7710 458 1 so consequently, without reaching the 2 misstatement, and I omitted number three, I 3 sustain the objection. 4 BY MS. SULLIVAN: 5 Q When you went to the Bahamas with 6 Mr. Jonsson, was it your intention to transfer 7 ownership interest of "Thee Viking" to a company 8 called Miramar? 9 A We went on many trips to Bahamas, which 10 one are you meaning? 11 Q The one you were talking about earlier 12 today. 13 A When, in 1997? 14 THE COURT: We'll help you along. The 15 KPMG expedition for which you traveled 16 overseas. 17 BY MS. SULLIVAN: 18 Q October 13, 1997. 19 A We went to -- first of all, in 1997, 20 New Viking was not in existence; and second of all, 21 we went to Bahamas, I went with them because they 22 were forming a company called Miramar. 23 Q Did you also go because it was your 24 intention to have an ownership interest in Miramar? 25 A Never. SONIA TOTH & ASSOCIATES (305)854-7710 459 1 Q Then why did you go? 2 A I was invited to go. They invited me to 3 come with them. 4 Q For just social purposes? 5 A I guess so. 6 Q So it was never your understanding that 7 you should have an ownership interest in a company 8 called Miramar? 9 A Never. 10 Q Mr. Sullenberger, I'm going to refer you 11 again to what I have as marked Plaintiff's Exhibit 12 Number 1, and would you please look over 13 Exhibit -- I'm sorry, Tabs 18, 20, 21 -- 14 A Are you talking about this tab here 15 (indicating)? 16 Q Yes. 17 A Okay. 18 Q -- 22 and 23 and 24. 19 A Uh-huh. 20 Q Were these invoices sent by you to Gaumur 21 for expenses relating to any of the three boats? 22 MR. GOODMAN: Objection to the form of the 23 question, Your Honor, Tab 18 has multiple 24 documents, Tab 20, the same; and this is one 25 question that encompasses multiple documents, SONIA TOTH & ASSOCIATES (305)854-7710 460 1 so -- 2 THE COURT: Same objection, you have to 3 address them singularly. 4 Give him a chance to -- 5 MS. SULLIVAN: I was trying to save some 6 time, Your Honor. 7 BY MS. SULLIVAN: 8 Q Let's turn to Tab 18. Have you had a 9 chance to look that over? 10 A Absolutely. 11 Q At Page 2 of that tabbed document, have 12 you ever seen this document before? 13 A Yes, I created it. 14 Q And could you describe to the Court what 15 the document is? 16 A This is a cover page of a wiring request 17 to Gaumur, requesting him to pay $8,670.25 for an 18 invoice 99034, on March 1999. 19 Q And you said that was addressed to Gaumur? 20 A That is correct. 21 Q Would you turn to Tab 20. Could you turn 22 to Page 2. Are you familiar with this document? 23 A Yes. This is an invoice created by 24 Nordica to Gaumur back in April of 1999. 25 Q What was the invoice for? SONIA TOTH & ASSOCIATES (305)854-7710 461 1 A Many things on here, his American Express 2 card, cell phones, his corporate -- I'm sorry, 3 Tryggvi's American Express Corporate card, their 4 hotel traveling expenses, their dock rent and bank 5 charges. 6 Q Anything for any of the boats at issue in 7 this case? 8 A A big portion of this is for boat number 9 two, and it is written the way that it hides that 10 there were any boat related expenses, and that's why 11 it says: Bank charges and dock rent. 12 Q Dock rent? 13 A Yes. 14 Q Would you turn to Tab 21. Could you turn 15 to Page 2. Are you familiar with this document? 16 A Yeah, it's the same kind of invoice from 17 Nordica to Gaumur, back in June of '99, and the 18 multiple, you know, charges on here, his credit 19 cards, his phones, Tryggvi's credit cards, cell 20 phones, bank charges, all the travel expenses. 21 Looks to me there were bank charges for 22 June and dock charges from June, and Bassett Co. 23 service fee in June. 24 Q You said dock charges? 25 A Yeah, it's -- I was asked by Jon Asgeir to SONIA TOTH & ASSOCIATES (305)854-7710 462 1 write it this way because I have a warehouse, and 2 this -- he thought this could be fine in his 3 bookkeeping, because dock could be at a warehouse, 4 dock rent at the warehouse. 5 Q But you sent this invoice to Gaumur? 6 A Yes. 7 Q Not to Baugur? 8 A That is correct. 9 Q Does Gaumur have anything to do with the 10 warehouse? 11 A No, Gaumur has nothing to do with the 12 warehouse. 13 Q Did you receive payment for this invoice? 14 A Absolutely. 15 Q Did you receive payment for the invoices 16 we discussed at 18 and 20, Tabs 18 and 20? 17 A Yes, we did. 18 Q Would you turn to Tab 22. Could you turn 19 to Page 2 of that tab. Have you ever seen this 20 document? 21 A Yes, I have. 22 Q What is this document? 23 A That is a cover page for -- a fax cover 24 page from Nordica to Gaumur back in June of '99. 25 Q Does any of the charges that you're SONIA TOTH & ASSOCIATES (305)854-7710 463 1 seeking reimbursement for from Gaumur have anything 2 to do with any of the boats at issue in this case? 3 A Yes, this is a -- the next page here is 4 the invoice, payment for that invoice, and this is 5 the portion of the boat expense -- I'm sorry, the 6 insurance for the boat. 7 Q How much was that charge? 8 A This charge is $6,962. 9 Q Did you receive payment for that charge? 10 A Yes, we did. 11 Q Who did you receive payment from? 12 A I cannot recall that. 13 Q Would it be fair to say that since you 14 billed Gaumur, you received payment from Gaumur? 15 A We might. 16 Q Could you turn to Tab 23, Page 2. Have 17 you ever seen this document? 18 A Yes, I have. 19 Q What is this document? 20 A This is an invoice from Nordica back in 21 July of '99, with multiple charges on it. 22 Q Who is the invoice addressed to? 23 A The invoice is to Gaumur. 24 Q Are there any entries on that invoice in 25 connection with any of the three vessels at issue in SONIA TOTH & ASSOCIATES (305)854-7710 464 1 this case? 2 A Yes. This is in connection with boat 3 number two. There are -- Yamaha, we had a Yamaha 4 jet ski on the boat, so the service charge was 5 $1,400, and they paid 50 percent of it; so they paid 6 half of those charges, and the bank's charges, 7 Bassett Boat, that was charges for service that was 8 done on boat number two. 9 Q When you say "bank charges," what do you 10 mean by that? 11 A Their portion of monthly mortgage 12 payments. 13 Q Was Gaumur paying monthly mortgage 14 payments in connection with any of the vessels? 15 MR. GOODMAN: Objection to the form of the 16 question. 17 THE COURT: Overruled. 18 THE WITNESS: Yes. They were paying 19 50 percent, yes. 20 BY MS. SULLIVAN: 21 Q Which vessel was that? 22 A Boat number two. 23 Q How long did that continue for? 24 A If I can recall, eight months, back in 25 1999, we got payments from Gaumur. SONIA TOTH & ASSOCIATES (305)854-7710 465 1 Q What was the total amount of that invoice? 2 A About $9,499. 3 Q Can you turn to Tab Number 24. Turn to 4 Page 2 of that that tab, please. 5 A Twenty-four. 6 Q Have you ever seen this document? 7 A Yes, I have. 8 Q What is this document? 9 A It's an invoice from Nordica again, back 10 in July of 1999, to Gaumur, for multiple charges. 11 Q July of 1999? 12 A July of 1999, yes. 13 Q When was "Thee Viking" purchased? 14 A "Thee Viking"? 15 Q "Thee Viking." 16 A We got delivery on that boat back in 17 October of 1999. 18 Q When did you actually close the purchase? 19 A In October. 20 Q Are there any charges in there for any of 21 the three vessels at issue in this case? 22 A No, this is for -- all those charges are 23 for vessel number two. 24 Q How much is that invoice? 25 A $7,230.02. SONIA TOTH & ASSOCIATES (305)854-7710 466 1 MS. SULLIVAN: Your Honor, I'm at a loss 2 as to what number Plaintiff's marked exhibits 3 left off at. 4 My first exhibit says Number 1. 5 THE CLERK: This will be Number 2. 6 MR. GOODMAN: You do use numbers for the 7 Plaintiff. 8 THE COURT: You're numbers, defense is 9 letters. That's not so unusual, is it? 10 Everybody acts like I just got off the rocket 11 from the moon or something. I thought most of 12 the people around here use this system. 13 MS. SULLIVAN: I'm sorry, Your Honor. 14 THE COURT: I'll tell you where I am a 15 little different than other people. In order 16 to maintain a consistent consecutiveness, if a 17 document is offered, for example, Plaintiff 18 offers Number 23 ID, it's offered, and if it's 19 refused and disallowed, I let that stay. Then 20 the next one that comes in is Number 24. 21 So, in other words, I don't break the line 22 whether it's admitted or not admitted, and 23 likewise with the letters. That's the only 24 thing I'm aware of that's a little bit 25 different. SONIA TOTH & ASSOCIATES (305)854-7710 467 1 BY MS. SULLIVAN: 2 Q Have you ever seen this document before? 3 A Yes, I have. 4 Q Without describing the contents of the 5 document, could you briefly describe to the Court 6 what this is? 7 A This is an invoice from my law office, 8 Akerman, Senterfitt. 9 THE COURT: Excuse me? 10 THE WITNESS: An invoice. 11 BY MS. SULLIVAN: 12 Q From your law office? 13 A Yes. 14 Q What law office? 15 A Akerman, Senterfitt & Eidson. 16 Q That's the firm that is representing you 17 here today? 18 A That is correct. 19 THE COURT: That's in Evidence? 20 MS. SULLIVAN: I'd like to offer it into 21 Evidence, Your Honor. 22 THE COURT: Oh, okay. I'm sorry, it has 23 not been marked for Identification, so it would 24 be marked as 3? 25 THE CLERK: This is 2, but I haven't SONIA TOTH & ASSOCIATES (305)854-7710 468 1 gotten the document to mark it. 2 THE COURT: Let me have it for a second. 3 MS. SULLIVAN: I gave it to the Judge. 4 THE COURT: She'll mark that for ID 5 Number 2. 6 (Thereupon, the above-referred to document 7 was marked as Plaintiff's Exhibit Number 2 for 8 Identification.) 9 THE COURT: Mr. Goodman, do you know what 10 it is that we're talking about here? 11 MR. GOODMAN: Yes, Your Honor. I've been 12 provided with a courtesy copy. 13 THE COURT: All right, sir. Do you have 14 any objection? 15 MR. GOODMAN: I don't. 16 THE COURT: All right. No objection, it's 17 admitted. Just go ahead and put it down as 18 admitted. 19 MR. GOODMAN: Your Honor, I'm sorry, if 20 you'll bear with me for just a minute, I just 21 had a chance to look at the second page. 22 I don't object to the first page, which is 23 an invoice from our law firm, which is what 24 Ms. Sullivan was focusing attention to, but I 25 do object to the second page because it's in SONIA TOTH & ASSOCIATES (305)854-7710 469 1 Icelandic. 2 THE COURT: Okay. 3 MR. GOODMAN: I don't object to Pages 3 4 and 4 because those are in English. 5 THE COURT: Ms. Sullivan, would you like 6 to re-offer it in a bifurcated fashion? 7 MS. SULLIVAN: Let me take a look at it 8 again, Your Honor. 9 THE COURT: The first page is, and the 10 balance is in Icelandic, apparently. 11 I think Mr. Goodman is just trying to 12 maintain consistency. 13 MS. SULLIVAN: I don't need Page Number 2, 14 Your Honor. 15 THE COURT: All right. So we'll just -- 16 MS. SULLIVAN: Just tear this off? 17 THE COURT: Yes. So all that's being 18 offered is Page Number 1, and as such, it's 19 admitted; is that correct? 20 MS. SULLIVAN: Well, now all of the pages, 21 Your Honor, just excluding Page 2, because 22 that's the only page that's in Icelandic. 23 THE COURT: Okay. Show it to Mr. Goodman 24 as you're now offering it, please. 25 No objection, Mr. Goodman? SONIA TOTH & ASSOCIATES (305)854-7710 470 1 MR. GOODMAN: Correct, Your Honor. 2 THE COURT: Number 2 in Evidence. 3 (Thereupon, the above-referred to document 4 was received in Evidence as Plaintiff's Exhibit 5 Number 2.) 6 BY MS. SULLIVAN: 7 Q You retained the law firm of Akerman, 8 Senterfitt to assist you in the purchase of 9 "Thee Viking," the third vessel at issue in this 10 case; did you not? 11 A Yes, I did. 12 Q Is this one of the bills from the law firm 13 in connection with that closing? 14 A No, it's not. 15 Q What is this bill for? 16 A This is regarding a different boat that we 17 were going to buy, and we did not buy. 18 Q What was the amount of that invoice? 19 A This one? 20 Q Yes. 21 A 9,415.50. 22 Q Would you turn to Page 2. 23 MR. GOODMAN: Objection, Your Honor, move 24 to strike. The document speaks for itself, and 25 I think the answer is inconsistent with the SONIA TOTH & ASSOCIATES (305)854-7710 471 1 actual document. 2 THE COURT: Well, now are you talking 3 about the last question and answer or the one 4 that's forthcoming? 5 MR. GOODMAN: The last question and 6 answer, I believe the question was: Was this 7 invoice -- my law firm's invoice -- what was 8 the amount? Mr. Sullenberger looked at the 9 bottom and said $9,415. 10 If you look at the document, which speaks 11 for itself, that's not correct. This invoice 12 is for $2,983, and a previous balance, which 13 may or may not have anything to do with the 14 boat, we don't know, of $6,432, is reflected on 15 the document. So the total due and owing is 16 $9,415, but this invoice as it relates to -- 17 THE COURT: Mr. Goodman, you didn't object 18 to it. It's in Evidence, and I'm not 19 extraordinarily bright, but I'm clever enough 20 to read the document and discern what the 21 invoice says. 22 MR. GOODMAN: Yes. I'm not objecting to 23 the document being in Evidence. 24 THE COURT: It's in. 25 MR. GOODMAN: Yes, of course. SONIA TOTH & ASSOCIATES (305)854-7710 472 1 THE COURT: Proceed. 2 BY MS. SULLIVAN: 3 Q Is this a copy of an invoice that you sent 4 through Nordica in connection with the litigation 5 regarding the third boat? 6 MR. GOODMAN: Objection to the form of the 7 question, vague. What litigation? 8 BY MS. SULLIVAN: 9 Q You testified earlier today that you were 10 engaged in some litigation in connection with the 11 third boat? 12 If you don't understand, you can say you 13 don't understand it and I'll rephrase it for you. 14 A Please rephrase it. 15 Q You testified earlier today -- 16 A Uh-huh. 17 Q -- that the parties at issue in this case, 18 some of the parties, Mr. Johannesson, Mr. Jonsson, 19 were seeking to purchase a third vessel, at some 20 point in time? 21 A That's correct. 22 Q And I think you testified that you wanted 23 to buy one boat that was already sold to another 24 third party? 25 A Did I testify? I don't recall testifying SONIA TOTH & ASSOCIATES (305)854-7710 473 1 to that this morning. 2 Q Did you ever try to buy a boat that was 3 already on deposit from a third party? 4 A That is correct, yes, I put a deposit on a 5 boat, yeah, another boat, that's correct. 6 Q What time period was that? 7 A That was in January or February of '99. 8 Q And did you, or any entity designated by 9 you, purchase that boat? 10 A No, we did not. 11 Q Why not? 12 A Because the boat had been sold to two 13 different parties. 14 Q Did any litigation ensue in connection 15 with that boat? 16 A Yes, it did. 17 Q Was this the invoice from the Akerman firm 18 in connection with that boat? 19 A Yes, it was. 20 Q Who paid that invoice? 21 A I paid it. Nordica did. 22 Q Did you seek reimbursement from Gaumur for 23 that invoice? 24 MR. GOODMAN: Objection to the form of the 25 question. SONIA TOTH & ASSOCIATES (305)854-7710 474 1 THE COURT: What is wrong with the form? 2 MR. GOODMAN: She's identifying a 3 particular party, Gaumur, as opposed to 4 multiple entities. 5 THE COURT: She's asking if he sought 6 reimbursement for Nordica in connection with 7 that invoice. 8 Overruled. Go ahead. 9 MS. SULLIVAN: I can lead this witness. 10 THE COURT: Answer it. 11 THE WITNESS: Yes, I did. 12 BY MS. SULLIVAN: 13 Q Did Gaumur pay that invoice? 14 A I am almost certain they did. 15 Q You testified earlier today that you 16 caused invoices to be sent to Bonus in connection 17 with the vessels at issue in this case? 18 A I don't understand your question. 19 Q Did you testify earlier today that you 20 sent invoices, or caused invoices to be sent to an 21 entity called Bonus in connection with vessel number 22 one? 23 A I did send invoices, yes, to Bonus. 24 Q But you don't know the source of the funds 25 that were paid to you in connection with those SONIA TOTH & ASSOCIATES (305)854-7710 475 1 invoices, do you? 2 A No, of course not. 3 Q I'm going to show you Plaintiff's Exhibit 4 Number 1, and I turn your attention to Tab 11. 5 Would you turn to Page 2. 6 Would this be an example of an invoice 7 that you sent to Bonus in connection with vessel 8 number one? 9 A Actually, this is for vessel number two. 10 Q And you sent that invoice to Bonus? 11 A That is correct. 12 Q Could you turn to Page 1 of that tab. 13 Page 1. Have you ever seen this document before? 14 A No. 15 Q Do you see, in the lower right-hand 16 corner, where it says the word "Isaldi"? 17 A Yes. 18 Q Are you going to post a bond to secure the 19 boat's custody out from possession of the bank? 20 A No, I am not. 21 Q Did you ever intend, during the period 22 November to present, November of 2002 to present, to 23 post a bond to secure custody of "Thee Viking" back 24 from Union Planters Bank? 25 A First of all, the bank, since SONIA TOTH & ASSOCIATES (305)854-7710 476 1 November -- I'm sorry, the bank took possession of 2 the boat in February, so prior to that, of course I 3 was not going to post a bond. I was just going to 4 try to keep up with paying the bank, and keep up to 5 date with the bank until we could sell the vessel. 6 Q How about from February to present, have 7 you ever intended to post a bond to secure custody 8 of "Thee Viking" back from Union Planters Bank? 9 A No. 10 Q Did your attorneys file motions in federal 11 court in order to secure custody of that boat? 12 A Yes. 13 Q What was the result of that? 14 MR. GOODMAN: Objection, Your Honor. 15 THE COURT: I'll sustain the objection, 16 because I think you're asking for legal 17 conclusions. I don't know how involved it may 18 or may not be. 19 MS. SULLIVAN: That's fine, Your Honor. 20 BY MS. SULLIVAN: 21 Q Let me ask it this way: Are you aware 22 that, at any time, you could walk out the door of 23 this courthouse and post a bond to secure custody of 24 "Thee Viking" back from Union Planters Bank? 25 A Was I aware of that? SONIA TOTH & ASSOCIATES (305)854-7710 477 1 Q Are you aware that, right now, you could 2 walk outside of this courthouse, go to the bank, or 3 any kind of bondsman, obtain a bond to secure 4 custody of "Thee Viking" back from Union Planters 5 Bank? 6 A No, I have never posted a bond, so I 7 really have no idea. No. 8 Q Do you know that you can do it? 9 MR. GOODMAN: Objection. 10 THE COURT: Sustained. 11 THE WITNESS: I have -- 12 THE COURT: He said he never posted a 13 bond, so he doesn't understand. 14 BY MS. SULLIVAN: 15 Q You testified earlier today that you put 16 "Thee Viking" up for sale sometime in 2002? 17 A No, in June of 2002. 18 Q You didn't tell Mr. Jonsson or 19 Mr. Johannesson that you put "Thee Viking" up for 20 sale, did you? 21 A I told Tryggvi Jonsson. 22 Q That wasn't my question. 23 Did you tell Mr. Jonsson or 24 Mr. Johannesson that you put "Thee Viking" up for 25 sale in June of 2002? SONIA TOTH & ASSOCIATES (305)854-7710 478 1 A No, I did not. 2 Q Does Mr. Jonsson -- does 3 Mr. Tryggvi Jonsson have any ownership interest in 4 the "Thee Viking"? 5 A No, he does not. 6 Q Let me show you again what was introduced 7 and admitted into Evidence as G earlier today. Do 8 you recall looking at that document earlier? 9 A Yes, I do. 10 Q And you first saw this document in May of 11 2000? 12 A It was in -- I think it was April or May 13 of 2000, yes, in Daytona. 14 Q Could you look at the last page of that 15 document. 16 A Okay. 17 Q Does the last page reflect money put into 18 all three boats by Mr. Jonsson and Mr. Johannesson 19 and you? 20 A Yes. 21 Q Is it correct to say that, as of the date 22 of this document, you put in $58,500? 23 A No. 24 Q What is the exact amount that you 25 contributed, according to that document? SONIA TOTH & ASSOCIATES (305)854-7710 479 1 A According to this document? 2 Q Yes. 3 A 58,500. 4 Q And is that a correct number? 5 A No, it's not. 6 Q What was the correct number at that time? 7 A At that time -- I cannot remember back at 8 that time, that's why we decided to go back and work 9 out -- find out what the correct amount was. 10 Q Does it say on that document that 11 Mr. Jonsson and Mr. Johannesson put in $500,500? 12 A That's what it says. 13 Q Do you believe your ownership -- 14 MR. GOODMAN: Excuse me, Your Honor, do I 15 have the Court's permission to look over my 16 client's shoulder at the document? 17 THE COURT: Sure. 18 MR. GOODMAN: Thank you. 19 BY MS. SULLIVAN: 20 Q Do you believe your ownership in 21 "Thee Viking" should be about 30 to 40 percent? 22 MR. GOODMAN: Objection to the form of the 23 question, calls for a legal conclusion. 24 THE COURT: Overruled. 25 MS. SULLIVAN: You can answer. SONIA TOTH & ASSOCIATES (305)854-7710 480 1 Repeat the question. 2 (Thereupon, the requested portion was read 3 back by the court reporter as follows: 4 "Question: Do you believe your ownership 5 in "Thee Viking" should be about 30 to 40 6 percent?") 7 THE WITNESS: As of today? 8 BY MS. SULLIVAN: 9 Q Let's start with May of 2000. 10 A When we -- when Tryggvi handed this 11 document over to me, we disagreed on the amount. 12 And, at that time, he told me to go back, bring back 13 what actually the expenses have occurred for the 14 three boats. 15 So this number does not mean anything. 16 Q So it's your testimony that, in May of 17 2000, you did not own 30 to 40 percent of 18 "Thee Viking"? 19 A I can't really tell. 20 Q There is a notation on that page 21 reflecting an ownership interest of 60 to 22 70 percent. Do you see that notation? 23 A Where would that be? 24 Q Let me help you. 25 I'm going to withdraw that question. SONIA TOTH & ASSOCIATES (305)854-7710 481 1 Do you see a notation in the amount of 2 73.57 percent at the end of the first column, on 3 Page 3? 4 A That is correct. 5 Q Do you have any understanding as to what 6 that 73.57 percent represents? 7 MR. GOODMAN: Objection to the form of the 8 question. 9 THE COURT: Overruled. 10 THE WITNESS: This is some kind of, I 11 guess, idea that Tryggvi Jonsson came up with 12 as the ownership of the son and the father in 13 the vessels. 14 MS. SULLIVAN: Okay. I'd like to mark -- 15 THE COURT: This is for ID, what, 16 Plaintiff's 4? 17 THE CLERK: Number 3. 18 THE COURT: Plaintiff's 3 for ID. 19 (Thereupon, the above-referred to document 20 was marked as Plaintiff's Exhibit Number 3 for 21 Identification.) 22 BY MS. SULLIVAN: 23 Q Have you ever seen this document before? 24 A Yes, I have. 25 Q What is this document? SONIA TOTH & ASSOCIATES (305)854-7710 482 1 A The first page is a fax cover sheet from 2 Nordica to Baugur requesting a wire transfer. 3 Q Without going into details as to the 4 substance of Page 2, have you ever seen this 5 document before? 6 A Yes, I have. 7 MR. GOODMAN: Your Honor, to save time, 8 she can go into as much substance as she wants 9 to because I do not object to this exhibit. 10 THE COURT: It's offered into evidence, 11 presumably? 12 MS. SULLIVAN: Yes. 13 THE COURT: And admitted. Plaintiff's 3. 14 (Thereupon, the above-referred to document 15 was received in Evidence as Plaintiff's Exhibit 16 Number 3.) 17 BY MS. SULLIVAN: 18 Q You testified earlier today that you were 19 instructed by Mr. Jonsson to create phony 20 invoices -- 21 A That is correct. 22 Q -- in the amount of $8,000, at one point 23 in time? 24 A That's correct. 25 Q And then later in the amount of $12,000? SONIA TOTH & ASSOCIATES (305)854-7710 483 1 A That's correct. 2 Q Was this an example of one of those 3 invoices? 4 A This is the last invoice -- yeah -- no, 5 this is actually the last invoice that was for the 6 service of the boat, the vessel, when the vessel was 7 taken in for service back in May. 8 Q This is not an example of an invoice that 9 was created falsely by you at the instruction of 10 Mr. Jonsson? 11 A This is exactly how he wanted this to be 12 done. 13 Q So it is an example of one of the phony 14 invoices that Mr. Jonsson asked you to prepare? 15 A That is correct. 16 Q Could you read the description of the 17 services that Nordica was seeking reimbursement for 18 from Baugur? 19 A Contract fee for retail services, 20 commissions, finder's fees and consulting work. 21 Q How much is this invoice for? 22 A $16,808.80. 23 Q Not $12,000? 24 A That's correct. 25 Q And not $8,000? SONIA TOTH & ASSOCIATES (305)854-7710 484 1 A That is correct. 2 MS. SULLIVAN: I'd like to mark this as 3 Number 4. 4 THE CLERK: Ms. Sullivan, you need to give 5 me a copy. 6 MS. SULLIVAN: I'll have to give one to 7 you, I didn't. 8 THE CLERK: You have to wait a second so I 9 can at least get it on the exhibit sheet. 10 THE COURT: Any objection? 11 MR. GOODMAN: I haven't been provided a 12 copy, Your Honor. 13 Your Honor, for consistency's sake, I need 14 to object to the first page, which is in 15 Icelandic, but I do not object to the second 16 page. 17 THE COURT: All right. Would you like to 18 exclude the first page, Ms. Sullivan? 19 MS. SULLIVAN: I don't need the first 20 page, Your Honor. 21 THE COURT: All right, the second page by 22 itself, an invoice on Nordica, Inc., 23 stationery, is received as Number 4. 24 (Thereupon, the above-referred to document 25 was marked as Plaintiff's Exhibit Number 4 for SONIA TOTH & ASSOCIATES (305)854-7710 485 1 Identification.) 2 THE COURT: In Evidence, without objection 3 on the single page. 4 BY MS. SULLIVAN: 5 Q Have you ever seen this document before? 6 A Yes, I have. 7 MS. SULLIVAN: I'd like to offer this into 8 Evidence as 4. 9 THE COURT: No objection? 10 MR. GOODMAN: Correct, Your Honor. 11 THE COURT: Okay. 12 (Thereupon, the above-referred to document 13 was received in Evidence as Plaintiff's Exhibit 14 Number 4.) 15 BY MS. SULLIVAN: 16 Q Is this an example of one of the phony 17 invoices that Mr. Jonsson asked you to prepare in 18 connection with the vessels at issue in this case? 19 A No, this is not one of them, no. 20 Q Could you read to me what the description 21 is for the services rendered by Nordica that you're 22 billing -- strike that. 23 This invoice is from Nordica; is it not? 24 A That is correct. 25 Q Who is it addressed to? SONIA TOTH & ASSOCIATES (305)854-7710 486 1 A To Jon -- 2 Q Is there anything underneath his name? 3 THE COURT REPORTER: Addressed to who? 4 THE WITNESS: It's Baugur Holding, 5 attention to Jon Asgeir. 6 BY MS. SULLIVAN: 7 Q And could you read to me the description 8 of the services from this invoice? 9 A It says: Contract fee for retail 10 services, commission finding fees, and consulting 11 work, December 2001. 12 Q Is that description of services identical 13 to the language that Mr. Jonsson asked you to create 14 false invoices for? 15 A Yes, it is. 16 Q There's nothing on the face of this 17 invoice that indicates it has anything to do with 18 the boat, is there? 19 A No, this is not for the boat. 20 Q What is this for? 21 A You sure you want to know that? 22 Q I'm sure. 23 A Back in November of 2001, 24 Jon Asgeir Johannesson, Sigurdur Einarson, Tryggvi 25 Jonsson -- I will spell that for you later -- and SONIA TOTH & ASSOCIATES (305)854-7710 487 1 some other associate came to Miami to, I guess, 2 party and have a good time. 3 At that time, I was in London on a trip. 4 On my return from London I got a phone call from an 5 escort service up in Fort Lauderdale, claiming that 6 he had provided a service to Jon Asgeir and his 7 associate, and he had tried to use Baugur credit 8 card, and it did not go through, and he threatened 9 my life if I would not get ahold of Jon Asgeir to 10 have him pay $19,260. 11 At that time -- 12 Q But there's nothing on the invoice that 13 says anything about -- 14 MR. GOODMAN: Excuse me, ma'am. Excuse 15 me. The witness is not done with his answer. 16 She's interrupting. 17 THE COURT: Let him finish his answer. 18 THE WITNESS: At that time, I got very 19 worried because the person was very threatening 20 to me. 21 I got ahold of Tryggvi, because I could 22 not get ahold of Jon Asgeir, and Tryggvi told 23 me to send the invoice for the amount of 24 $19,260 to him in the same form as before, and 25 he will take care of it. And this is the SONIA TOTH & ASSOCIATES (305)854-7710 488 1 invoice. 2 Actually, this invoice was never paid by 3 Baugur nor Gaumur, because I got an e-mail 4 later on from Jon Asgeir saying that he took 5 care of it from Luxembourg, and that was the 6 story. 7 BY MS. SULLIVAN: 8 Q Does it say anything on the invoice: For 9 escort services? 10 A No, it does not. 11 Q Did you bring a copy with you today 12 of -- I withdraw that question. 13 MS. SULLIVAN: I'd like to mark this as 14 P 5. 15 THE COURT: All right, for ID. 16 (Thereupon, the above-referred to document 17 was marked as Plaintiff's Exhibit Number 5 for 18 Identification.) 19 BY MS. SULLIVAN: 20 Q Could you describe briefly what this 21 document is? 22 A I really don't have it yet, so which 23 document? 24 Q Oh, I'm sorry. 25 A This is a typical request from Nordica SONIA TOTH & ASSOCIATES (305)854-7710 489 1 faxed to Baugur, requesting a payment for $12,000 2 into New Viking account for a total of $12,000. 3 The second page is a typical invoice that 4 was sent every month to Baugur requesting payment 5 for contract fees related to the boat expenses. 6 MS. SULLIVAN: I'd like to offer this into 7 Evidence as P 5. 8 MR. GOODMAN: No objection, Your Honor. 9 THE COURT: Plaintiff's 5. 10 (Thereupon, the above-referred to document 11 was received in Evidence as Plaintiff's Exhibit 12 Number 5.) 13 BY MS. SULLIVAN: 14 Q You caused this invoice to be sent to 15 Baugur? 16 A Yes, I did. 17 Q Does it say anywhere on Page 1 that you 18 wanted these monies deposited into the bank account 19 of New Viking? 20 A I was requesting -- I was instructed by 21 Tryggvi Jonsson that New Viking could not be 22 anywhere there, so what we had to do was change the 23 wording, and it had to be to the beneficiary of my 24 name, because Union Planters Bank has rejected wire 25 transfer, as a beneficiary, Nordica, into New Viking SONIA TOTH & ASSOCIATES (305)854-7710 490 1 account. 2 Q The question was: Does it say anywhere on 3 this invoice that you wanted the monies deposited 4 into New Viking's account? 5 A No, it does not. 6 Q The only indication that you wanted it 7 sent to a bank account was actually an account 8 number for an unspecified account holder? 9 A That is correct. 10 Q Did those monies go into the bank account 11 of New Viking? 12 A Yes, they did. 13 MS. SULLIVAN: I'd like to mark P 5. 14 THE COURT: Five has already been marked 15 and received. 16 MS. SULLIVAN: Oh, I'm sorry, 6. 17 THE COURT: Okay. Number 6. 18 (Thereupon, the above-referred to document 19 was marked as Plaintiff's Exhibit Number 6 for 20 Identification.) 21 THE COURT: Number 6 for ID. 22 BY MS. SULLIVAN: 23 Q Have you ever seen this document before? 24 A Yes, I have. 25 MS. SULLIVAN: I'd like to offer this as SONIA TOTH & ASSOCIATES (305)854-7710 491 1 P 6, Your Honor, into Evidence. 2 MR. GOODMAN: No objection, Your Honor. 3 THE COURT: No objection. It's received. 4 (Thereupon, the above-referred to document 5 was received in Evidence as Plaintiff's Exhibit 6 Number 6.) 7 BY MS. SULLIVAN: 8 Q What is this document? 9 A It's statements from Union Planters 10 confirming a wire transfer from Baugur for $11,920. 11 Q Does P 6 evidence payment for P 5? 12 MR. GOODMAN: Do you have a copy of P 5, 13 ma'am, for me? 14 THE COURT: There it is. 15 MS. SULLIVAN: Thank you. 16 MR. GOODMAN: Thank you. 17 THE WITNESS: No, they're not related. 18 BY MS. SULLIVAN: 19 Q You said earlier today -- you testified 20 earlier today you were dealing with Mr. Jonsson, 21 Tryggvi Jonsson, in connection with "Thee Viking"? 22 A That is correct. 23 Q Did Mr. Jonsson ever indicate to you that 24 he was representing the interests of 25 Mr. Johannesson? SONIA TOTH & ASSOCIATES (305)854-7710 492 1 A Yes, he did. 2 Q When did he make that indication? 3 A Many, many times. 4 Q Can you give me an example? 5 A Up in Daytona, the meeting in 6 Baugur Group, back in January of 2000, at the 7 meeting with the law office here in Coral Gables, 8 many occasions. 9 Q He never indicated to you that he was 10 representing Gaumur's interests? 11 A Never. 12 Q Would it make a difference to you if he 13 was representing Gaumur's interests? 14 A Absolutely -- 15 MR. GOODMAN: Objection to the form of the 16 question. 17 THE COURT: Overruled. 18 You may answer. 19 THE WITNESS: Can you please repeat the 20 question? 21 (Thereupon, the requested portion was read 22 back by the court reporter as follows: 23 "Question: Would it make a difference to 24 you if he was representing Gaumur's 25 interests?") SONIA TOTH & ASSOCIATES (305)854-7710 493 1 MR. GOODMAN: Objection, vague. 2 THE COURT: I think it's clear enough. 3 There's only been one particular matter, with 4 the notable exception of the Fort Lauderdale 5 exercise that has been discussed in connection 6 with Mr. Tryggvi Jonsson, so I don't think it's 7 too vague. 8 Now, if you're confused, she'll read it 9 for you again. 10 THE WITNESS: I'm confused. 11 (Thereupon, the requested portion was read 12 back by the court reporter as follows: 13 "Question: Would it make a difference to 14 you if he was representing Gaumur's 15 interests?") 16 THE WITNESS: Representing in which way? 17 BY MS. SULLIVAN: 18 Q In other words, if he told you at that 19 meeting that he wanted to represent Gaumur's 20 interests in connection with the ownership interest 21 in "Thee Viking," would it make a difference to you? 22 MR. GOODMAN: Objection, speculative. 23 THE COURT: I'm going to overrule that. I 24 don't think it's an unfair question, because 25 it's something that perhaps even the witness SONIA TOTH & ASSOCIATES (305)854-7710 494 1 may have considered at that time. 2 Do you understand the thrust of the 3 question? 4 THE WITNESS: No, not really. 5 THE COURT: Let me see if I can interpose 6 myself again, uninvitedly. 7 MR. GOODMAN: I'll extend that invitation, 8 Your Honor. 9 THE COURT: Ms. Sullivan wants you to 10 report whether it would have made any 11 difference to you, in terms of your behavior 12 vis-a-vis the boat, and the funding, and so 13 forth, if Mr. Tryggvi Jonsson had been thought, 14 or known by you to be representing Gaumur 15 rather than, as you've testified, as a 16 representative in some capacity for the father 17 and son. 18 Do you understand my statement? 19 THE WITNESS: I think so, yes. 20 I would be very surprised, first of all; 21 but if I would have known that -- 22 THE COURT: That's not the question. I'm 23 sorry. 24 THE WITNESS: I'm sorry. 25 THE COURT: Did I state your question -- SONIA TOTH & ASSOCIATES (305)854-7710 495 1 MS. SULLIVAN: You did, Your Honor. 2 THE COURT: I'm going to ask you to read 3 back my statement of the question, and I want 4 you to listen carefully, because I think I 5 stated it reasonably well. 6 (Thereupon, the requested portion was read 7 back by the court reporter as follows: 8 "Ms. Sullivan wants you to report whether 9 it would have made any difference to you, in 10 terms of your behavior vis-a-vis the boat, and 11 the funding, and so forth, if Mr. Tryggvi 12 Jonsson had been thought, or known by you to be 13 representing Gaumur rather than, as you've 14 testified, as a representative in some capacity 15 for the father and son. 16 "Do you understand my statement?") 17 THE WITNESS: No, it wouldn't make any 18 difference to me. 19 THE COURT: It now being 4:00, 1600 20 according to the bells, we'll take a short 21 break. 22 MS. SULLIVAN: I'm sorry, Your Honor, I 23 thought you were wrapping up for the day. 24 THE COURT: No, no. 25 MS. SULLIVAN: I only have about ten more SONIA TOTH & ASSOCIATES (305)854-7710 496 1 minutes. 2 THE COURT: We'll give you the ten minutes 3 when we get back. We've been going about an 4 hour-and-a-half. 5 (Thereupon, a recess was had, after which 6 the following proceedings were had:) 7 THE COURT: Ms. Sullivan, in recent times, 8 there's a brand new syndrome that they started 9 calling the economy syndrome, and people 10 realized that that was sort of degrading, and 11 decided to get highfalutin about it, so now 12 it's called deep vein thrombosis syndrome, and 13 it comes about when a person sits too long and 14 is virtually in an immobile position for long 15 periods of time. 16 I'm acutely sensitive to this because 17 about 25 years ago I had the privilege of 18 representing the Estate of Freddy Ribbler, and 19 poor Freddy had died from a diagnosis of 20 subacute bacterial endocarditis, brought on by 21 thrombophlebitis, which was induced because he 22 was on a train for almost twenty hours in 23 frozen conditions, and could not and did not 24 move. 25 And so that's why, every now and then, SONIA TOTH & ASSOCIATES (305)854-7710 497 1 about an hour-and-a-half or so, I get up and 2 move around a little bit. 3 And, really, that's just an application of 4 that new thing called deep vein thrombosis. 5 They tried to call it economy syndrome. That's 6 the reason I get up and move. 7 So there you are. 8 MS. SULLIVAN: Good health to you, 9 Your Honor. 10 THE COURT: That was just in this 11 courtroom, as a matter of fact, where we tried 12 poor Freddy Ribbler's case. 13 MS. SULLIVAN: Would you read back the 14 last question, please. 15 (Thereupon, the requested portion was read 16 back by the court reporter as follows: 17 "Ms. Sullivan wants you to report whether 18 it would have made any difference to you, in 19 terms of your behavior vis-a-vis the boat, and 20 the funding, and so forth, if Mr. Tryggvi 21 Jonsson had been thought, or known by you to be 22 representing Gaumur rather than, as you've 23 testified, as a representative in some capacity 24 for the father and son. 25 "Do you understand my statement?") SONIA TOTH & ASSOCIATES (305)854-7710 498 1 "Answer: No, it wouldn't make any 2 difference to me.") 3 BY MS. SULLIVAN: 4 Q You testified earlier today that you told 5 Mr. Tryggvi Jonsson that you put "Thee Viking" up 6 for sale, and you told him that fact on or about 7 June 2002? 8 A Yes. That was the beginning of June, yes. 9 Q Mr. Jonsson give you permission to put the 10 boat up for sale? 11 MR. GOODMAN: Objection to the form of the 12 question. 13 THE COURT: Overruled. 14 MR. GOODMAN: Are you just talking about 15 Tryggvi Jonsson? 16 THE COURT: Yes. 17 MR. GOODMAN: That was the basis of my 18 objection: Which Mr. Jonsson? 19 THE COURT: Tryggvi. We have a lot of 20 Jonssons. 21 THE WITNESS: Did Tryggvi give me 22 authorization, is that your question? 23 BY MS. SULLIVAN: 24 Q Yes. 25 A No, he did not give me authorization. SONIA TOTH & ASSOCIATES (305)854-7710 499 1 Q You testified earlier today that you, 2 personally, made a payment of an unspecified amount 3 in January, specifically, January 27, 2003, for 4 payment for "Thee Viking's" mortgage -- 5 A That's correct. 6 Q -- out of a refinancing for your home? 7 A That's correct. 8 Q Did you bring a copy of that check with 9 you today? 10 A Did I bring a copy? No, I did not. 11 Q Did you bring any other receipts with you 12 today to evidence payments of any expenses that you 13 made, personally, for "Thee Viking"? 14 MR. GOODMAN: Objection to the form of the 15 question. 16 THE COURT: What's improper about it? 17 MR. GOODMAN: He wasn't asked to bring 18 documents here today. 19 THE COURT: That's true, but there's 20 nothing wrong with the form of the question. 21 Overruled. 22 THE WITNESS: Please repeat the question. 23 (Thereupon, the requested portion was read 24 back by the court reporter as follows: 25 "Question: Did you bring any other SONIA TOTH & ASSOCIATES (305)854-7710 500 1 receipts with you today to evidence payments of 2 any expenses that you made, personally, for 3 "Thee Viking"?") 4 THE WITNESS: No. 5 BY MS. SULLIVAN: 6 Q You admit that you don't own a hundred 7 percent of New Viking -- "Thee Viking," correct? 8 A Do I what? 9 Q You admit that you do not own 100 percent 10 of "Thee Viking"? 11 A No. 12 Q Is it your position here in court today 13 that you own one 100 percent of "Thee Viking"? 14 A No. 15 Q What is your position as to the ownership 16 of "Thee Viking"? 17 A The ownership of "Thee Viking," at this 18 moment, I cannot determine that. That's between me 19 the father and the son. 20 Q So there are other parties that have an 21 ownership interest in "Thee Viking"? 22 A Yes, there is. 23 Q You testified earlier that you put the 24 boat up for sale on or about June of 2002? 25 A That is correct. SONIA TOTH & ASSOCIATES (305)854-7710 501 1 Q Did you show the boat to buyers? 2 A Yes, I did. 3 Q On how many occasions? 4 A I can't recall, a couple of occasions. 5 Q What was the last occasion's date? 6 A I cannot recall that. 7 Q Would it be in the last thirty days? 8 A No, the boat -- I can't go to the boat. 9 The boat has been seized by the Court. 10 Q When was the last time you actually showed 11 the boat to a potential buyer? 12 A If I can recall, it was sometime in 13 December, January, December, November, I don't know, 14 November, December, if I can recall. 15 Q So it's your testimony that you tried to 16 sell the boat before this suit commenced? 17 A You mean the seizure of the vessel? 18 Q This lawsuit. 19 Let me rephrase the question. Is it your 20 testimony that you tried to sell "Thee Viking" 21 before this suit was commenced? 22 A Before this lawsuit was filed? 23 Q Correct. 24 A Yes. I showed the boat before this 25 lawsuit was filed, yes. SONIA TOTH & ASSOCIATES (305)854-7710 502 1 Q Did you sign any contracts in connection 2 with potential buyers? 3 A No, I did not. 4 Q You were willing to issue some shares in 5 New Viking to a company owned by the father and son, 6 correct? 7 A That's correct. 8 Q And you used different corporations in 9 your dealing with this boat, for example, Nordica, 10 New Viking, right? 11 A I don't understand your question. 12 Q In other words, you used different 13 corporations in connection with your ownership 14 interest in this boat? 15 A No. 16 Q You never sent an invoice, for example, 17 for any of the three vessels on Nordica's 18 letterhead? 19 A Yes, I did. 20 Q It doesn't matter to you what companies 21 the father and son use in their dealings, does it? 22 MR. GOODMAN: Objection to the form of the 23 question, vague, lack of foundation, 24 speculation. 25 THE COURT: Sustained, unless you can show SONIA TOTH & ASSOCIATES (305)854-7710 503 1 me some relevance. 2 BY MS. SULLIVAN: 3 Q What did you pay monthly towards the boat 4 upkeep and maintenance for "Thee Viking" in 2002? 5 A I can't really tell you off my head, but 6 there should be financial statements, 7 Tryggvi Jonsson and Jon Asgeir, they have a 8 financial statement from 2000, 2001, so they would 9 know that. I don't have that off my head. 10 Q So, for 2002, you don't have any rough 11 estimate as to what monthly payments you made? 12 THE COURT: In the first place, you would 13 have to ask him unreimbursed as opposed to 14 otherwise. 15 MS. SULLIVAN: I withdraw the question, 16 Your Honor. 17 BY MS. SULLIVAN: 18 Q Isn't it true that you can't admit here 19 today that Gaumur is the entity that 20 Mr. Johannass Jonsson and Mr. Johannesson were to 21 designate as the owner of certain percentages of 22 shares in New Viking because you want the police in 23 Iceland to believe it was Baugur? 24 A No, that's false. 25 Q And isn't it true that you were the first SONIA TOTH & ASSOCIATES (305)854-7710 504 1 one to initiate the charges to commence the police 2 investigation in Iceland? 3 A That is true. 4 MS. SULLIVAN: I have no further 5 questions, Your Honor. 6 THE COURT: All right. Thank you. 7 REDIRECT EXAMINATION 8 BY MR. GOODMAN: 9 Q Mr. Sullenberger, you were questioned by 10 Ms. Sullivan about Plaintiff's Exhibit 4. Do you 11 have that? Not Tab 4, sir, Plaintiff's Exhibit 4. 12 Let me hand it to you. It's the Nordica 13 invoice to Baugur for $19,260. Do you remember 14 that? 15 A Yes, that's correct. 16 Q Okay. You told Ms. Sullivan that it was 17 not for the boat. 18 A That is correct. 19 Q And you told Ms. Sullivan that it related 20 to a charge for escort services incurred by Jon for 21 a party on the boat? 22 A That is correct. 23 Q Let me show you, sir, what I'm going to 24 have marked as the next exhibit for identification 25 purposes as Defendant's Exhibit P. SONIA TOTH & ASSOCIATES (305)854-7710 505 1 THE COURT: Thank you. 2 (Thereupon, the above-referred to document 3 was marked as Defendant's Exhibit P for 4 Identification.) 5 BY MR. GOODMAN: 6 Q Sir, take a look, if you please, at what 7 has been marked for identification purposes, at this 8 point, as Defendant's Exhibit P. 9 Sir, have you seen Exhibit P before? 10 A Yes, I have. 11 Q Is that the document that you told 12 Ms. Sullivan had been sent to you by the person 13 trying to collect the escort service bill? 14 A That is correct. 15 Q And is it this document which caused you 16 to contact Tryggvi Jonsson? 17 A That is correct. 18 Q Which then led to the invoice, which is 19 Exhibit Number 4? 20 A That is correct. 21 MR. GOODMAN: And we offer Exhibit 4, 22 Your Honor -- not 4, P, isn't it? 23 THE WITNESS: Yes, P. 24 MR. GOODMAN: Excuse me, I may have 25 misspoken, Exhibit P, Your Honor. SONIA TOTH & ASSOCIATES (305)854-7710 506 1 THE COURT: Ms. Sullivan? 2 MS. SULLIVAN: Subject, Your Honor, to my 3 verification that that document was produced to 4 us, I don't have any objection. 5 THE COURT: All right. You can verify 6 that and report back to me subject to the 7 motion to strike, and I'm not even going to 8 raise the fact that there's a hundred dollar 9 difference between the two items. 10 MS. SULLIVAN: I was going to raise that, 11 Your Honor, as well. 12 (Thereupon, the above-referred to document 13 was received in Evidence as Defendant's 14 Exhibit P.) 15 BY MR. GOODMAN: 16 Q This document, sir, Exhibit P, on its 17 face, mentions Miami Beach Escort. Exhibit P, right 18 there (indicating). 19 A Yes, it does. 20 Q All right. And, as far as you know, after 21 you were physically threatened in connection with 22 this unpaid bill, who made arrangements to pay this 23 bill for the escort service? 24 A Jon Asgeir Jonsson did that. 25 Q Did you send the son, Jon Asgeir, an SONIA TOTH & ASSOCIATES (305)854-7710 507 1 e-mail concerning your request that this escort 2 service bill be paid? 3 A That is correct. 4 Q Let me show you what I'm going to have 5 marked for identification purposes as Exhibit Q. 6 (Thereupon, the above-referred to document 7 was marked as Defendant's Exhibit Q for 8 Identification.) 9 BY MR. GOODMAN: 10 Q Sir, taking a look at Exhibit Q, is that 11 the e-mail that you just mentioned which the son 12 sent to you concerning payment of the escort service 13 bill? 14 A Yes, that's correct. 15 Q It's actually your e-mail to him and then 16 his response? 17 A That is correct. 18 MR. GOODMAN: We would offer this, 19 Your Honor. 20 MS. SULLIVAN: Your Honor, subject to 21 relevancy objection and an authenticity 22 objection, I have no ability to verify that 23 this document actually was generated from 24 Mr. Jonsson's e-mail. 25 THE COURT: Subject to all of those, it SONIA TOTH & ASSOCIATES (305)854-7710 508 1 will be received. If, at a later time, 2 something occurs, then you may renew motions to 3 strike. 4 (Thereupon, the above-referred to document 5 was received in Evidence as Defendant's 6 Exhibit Q.) 7 BY MR. GOODMAN: 8 Q Ms. Sullivan asked you some questions 9 about the source of funds used to pay for the 10 purchase of the boats and the expenses for the boat. 11 Concerning the third boat, the boat upon 12 which Gaumur has lodged a lien and claim, which 13 entity usually sent you the monthly reimbursements 14 for "Thee Viking"," the third boat? 15 A Baugur did. 16 Q By what method? 17 A By wire transfer. 18 Q Do the bank records reflect that? 19 A Yes, they do. 20 Q Now, Ms. Sullivan also asked you whether 21 Gaumur paid reimbursements concerning expenses on 22 the third boat. Do you remember that? 23 A That's correct. 24 Q Now, actually, sir, did Gaumur make a 25 reimbursement, or did it allow you to use a credit SONIA TOTH & ASSOCIATES (305)854-7710 509 1 card for boat expenses? 2 A That was a credit card for boat expenses. 3 Q Okay. So I'm using the term 4 "reimbursement" to mean when you make a payment out 5 of your own pocket, you take money out of your own 6 pocket or your own bank account, pay it, and then 7 somebody repays you, that's what I mean by a 8 reimbursement. 9 A That's correct. 10 Q Using that definition, sir, did Gaumur 11 ever reimburse you for payments that you made on the 12 third boat? 13 A No, they did not. 14 Q Did Gaumur make any payments concerning 15 the third boat, either the purchase or monthly 16 expenses, through any means other than giving you a 17 credit card for use of boat expenses? 18 A No, they did not. 19 Q All right. Was the Gaumur credit card 20 also used by others besides yourself? 21 MS. SULLIVAN: Objection, this is beyond 22 the scope. 23 THE COURT: It is. 24 MS. SULLIVAN: I didn't ask any questions 25 about credit cards. SONIA TOTH & ASSOCIATES (305)854-7710 510 1 THE COURT: Sustained. 2 BY MR. GOODMAN: 3 Q Ms. Sullivan asked you whether you told 4 the father and son that you were going to be putting 5 "Thee Viking" up for sale. Why did you not tell 6 them? 7 A Because I had tried to solve this issue 8 many, many times, and this was my final resource, 9 because they had stopped paying their portion of the 10 boat, and I could not keep going up with that, so my 11 last resort was to put the boat up for sale. 12 Q Given that you told us that you told 13 Tryggvi Jonsson that you were putting the boat up 14 for sale, and given that you told us earlier that 15 there was publicity in the Icelandic press about the 16 boat being for sale, did you have any doubt that the 17 father and son knew that you had placed the boat up 18 for sale? 19 MS. SULLIVAN: Objection, Your Honor, 20 calls for speculation. 21 THE COURT: Sustained. 22 BY MR. GOODMAN: 23 Q Ms. Sullivan asked you how many times and 24 when Tryggvi told you that he was representing the 25 father and the son. SONIA TOTH & ASSOCIATES (305)854-7710 511 1 In addition to telling you orally that he 2 was representing the father and the son concerning 3 the boat, the boats, did Mr. Jonsson, 4 Tryggvi Jonsson, ever send you any documents 5 demonstrating that he was negotiating on behalf of 6 the father and son? 7 A Yes, there are e-mails going back and 8 forth regarding that matter. 9 Q Now, Ms. Sullivan asked you a question 10 about the general subject of keeping the boats 11 secret. Do you remember that question and answer? 12 A Yes. 13 Q Now, just so we're clear, were the father 14 and son trying to keep the existence of the boats a 15 secret, or were they trying to keep their ownership 16 interest in the boats a secret? 17 A They were trying to keep their ownership 18 of the boat secret. 19 Q Were you ever on "Thee Viking" with the 20 son, with other individuals, friends of theirs, 21 business associates, et cetera? 22 MS. SULLIVAN: Your Honor, objection -- 23 THE WITNESS: Yes. 24 MS. SULLIVAN: -- asked and answered, 25 beyond the scope. SONIA TOTH & ASSOCIATES (305)854-7710 512 1 All I asked was whether or not he was on 2 the boat with Mr. Jonsson and Mr. Johannesson 3 with bankers, associates, and other possible 4 vendors, I think, without looking. 5 THE COURT: I think she's right. I'm not 6 sure why it's important, but I think she is 7 correct, is my recollection. 8 Also asked him if he had gone out 9 personally, by himself, and when he did that, 10 who paid for gas and maintenance and equipment. 11 He paid for it personally. And on other 12 occasions, the father and/or the son had come 13 down, they had gone out and taken people out. 14 There was no discussion about whether he went 15 out with them; impliedly, they went out by 16 themselves. 17 It's a nuance. I'm not sure if it's 18 important, if it is, tell me so, but I don't 19 think that this was gone into. 20 If I understood, you were saying: Did he 21 go out with the father and the son and their 22 guest or guests. 23 MR. GOODMAN: If I phrased the question 24 that way, Your Honor, it was inartful and 25 unintentional. SONIA TOTH & ASSOCIATES (305)854-7710 513 1 THE COURT: Perhaps I misunderstood. 2 MR. GOODMAN: No, no, perhaps it was me, 3 perhaps it was both of us, who knows, but let 4 me phrase it differently to avoid that 5 objection. 6 BY MR. GOODMAN: 7 Q What did the son tell the other people on 8 "Thee Viking," in your presence, about who owned the 9 boat? 10 MS. SULLIVAN: Again, Your Honor, 11 objection, beyond the scope. I never asked 12 anything about conversations on the boat. 13 THE COURT: I'm going to sustain it, 14 although it's already clear, because in the 15 earlier Direct testimony it was opined by 16 the -- and testified to by the witness that he 17 was not to report that they had any ownership 18 interest in the vessel. 19 MR. GOODMAN: Yes. 20 THE COURT: Same question, so it's 21 duplicative and redundant. 22 MR. GOODMAN: To use the phrase that you, 23 yourself, used, I think it's a slight nuance. 24 THE COURT: Okay, I'll accept "nuance." 25 Sustain the objection. SONIA TOTH & ASSOCIATES (305)854-7710 514 1 MR. GOODMAN: How about if it's two 2 nuances? 3 BY MR. GOODMAN: 4 Q All right. Moving on to a hopefully 5 non-nuanced area. 6 Ms. Sullivan asked you about the purpose 7 of your trip in 1977 (sic.) to the Bahamas with the 8 father and the son and Tryggvi Jonsson. Concerning 9 the purpose of the trip, did you ask them why they 10 wanted you to pay for their plane tickets and then 11 get reimbursed, rather than pay for the tickets 12 themselves? 13 MS. SULLIVAN: Objection, Your Honor. 14 THE COURT: That has been covered. 15 MS. SULLIVAN: Also, Your Honor, that trip 16 was in 1997. 17 THE COURT: I don't know what the date 18 was. It's the KPMG trip. 19 MR. GOODMAN: What did I say, 1987? 20 MS. SULLIVAN: 1977. 21 MR. GOODMAN: I said '77? 22 THE COURT: Well, in support thereof, you 23 offered into Evidence, and been received into 24 Evidence, the receipts for buying the tickets 25 and so on. SONIA TOTH & ASSOCIATES (305)854-7710 515 1 BY MR. GOODMAN: 2 Q All right. Let me take a look at one of 3 the exhibits that Ms. Sullivan showed to you. It 4 has a number on the bottom called JSS6962. Do you 5 have that there? 6 I'll be talking about one of the ones that 7 Ms. Sullivan had just introduced. 8 THE COURT: What's it about? 9 MR. GOODMAN: It's the one concerning the 10 insurance. 11 THE COURT: I am not aware of that. 12 THE WITNESS: Oh, that was in here. 13 BY MR. GOODMAN: 14 Q Oh, it was in one of the tabs? 15 A Yes. 16 Q All right. Let me see. Yes, that would 17 be Plaintiff's Exhibit 1, Tab -- let me see if I 18 can't find it. 19 A Tab 22. 20 Q It's Tab 22? 21 A Uh-huh. 22 MR. GOODMAN: All right. Your Honor, just 23 so that you can share with us, I also have an 24 extra copy of the same binder, which is 25 Number 1, and just so you can look along, it's SONIA TOTH & ASSOCIATES (305)854-7710 516 1 Tab 22, you say? 2 THE WITNESS: Yes. 3 THE COURT: Thank you so much. 4 BY MR. GOODMAN: 5 Q Mr. Sullenberger, turning, if you would, 6 please, to the final page of Tab 22, which I know 7 Ms. Sullivan asked you about, you see here that it 8 says: Yearly insurance for warehouse? 9 A That's correct. 10 Q Now, I think you told Ms. Sullivan that 11 this was an invoice for insurance on the boat? 12 A That's correct. 13 Q But I notice that this says: Insurance 14 for warehouse. 15 A That is correct. 16 Q Why does this say: Insurance for 17 warehouse, inaccurately say that, when it was 18 actually insurance for the boat? 19 A The purpose was to hide that this was for 20 the boat. 21 Q Who told you to do that? 22 A Jon Asgeir, the son. 23 Q And did you receive reimbursement for this 24 insurance payment? 25 A Yes, I did. SONIA TOTH & ASSOCIATES (305)854-7710 517 1 Q Ms. Sullivan asked you a bunch of 2 questions about posting a bond to get the boat 3 released from federal court. Do you have anywhere 4 near enough money to post a bond to get that boat 5 released, sir? 6 A No, I don't. 7 THE COURT: Let's not start getting into 8 that, because I stopped that. He said he's not 9 familiar with it, hadn't done it before. 10 BY MR. GOODMAN: 11 Q The agreement that you had with the father 12 and the son, did it contemplate that you would be 13 paying monthly expenses of eight or ten or $12,000 14 out of your own pocket without obtaining timely 15 reimbursement? 16 MS. SULLIVAN: Objection, Your Honor, it's 17 beyond the scope again. 18 THE COURT: Sustained. 19 BY MR. GOODMAN: 20 Q I know for sure that Ms. Sullivan asked 21 you your view on your percentage ownership in 22 "Thee Viking." 23 A That's correct. 24 Q And I know she asked you whether or not 25 there were other owners besides yourself. SONIA TOTH & ASSOCIATES (305)854-7710 518 1 A That is correct. 2 Q Is it your position that your percentage 3 ownership is based on the amount of money that you 4 and your companies -- 5 THE COURT: Is this going to lead -- or 6 what? 7 MR. GOODMAN: I would say "or what," but 8 you're right, Your Honor, so let me phrase it 9 differently. You're absolutely right. It's 10 getting a little late in the day, and I'm not 11 as sharp as I should be. 12 BY MR. GOODMAN: 13 Q Are there any owners of the boat other 14 than you, the father, and the son? 15 A No. 16 Q What is the basis, sort of the formula or 17 the structural arrangement for your position as to 18 what percentage ownership you have in "Thee Viking"? 19 MS. SULLIVAN: Objection, Your Honor, the 20 witness testified he didn't have a number that 21 he could testify to. 22 MR. GOODMAN: I'm not asking for a number, 23 and my question didn't call for a number. It 24 asked for the approach, or the formula, or the 25 structural view. SONIA TOTH & ASSOCIATES (305)854-7710 519 1 THE COURT: Overruled. 2 THE WITNESS: Basically, the amount that I 3 paid that came out of my account, the work I 4 did, the maintenance and so on. 5 BY MR. GOODMAN: 6 Q And when you say "out of the my account," 7 you're talking about Nordica? 8 A Yeah, the Nordica account. 9 Q And New Viking? 10 A And New Viking, yes, and my credit cards. 11 There was some other things boat related. 12 It's hard work. 13 THE COURT: How about coming back, you 14 said your fund is: The amount I paid, the work 15 I did, and what else? 16 MR. GOODMAN: I think he was giving you 17 examples of the types of money. 18 THE COURT: Well, you asked for a formula. 19 MR. GOODMAN: Yes, you're right. 20 BY MR. GOODMAN: 21 Q By "formula," sir, I don't mean a 22 mathematical formula, I mean -- let me phrase it 23 differently. 24 What are the components -- that's the 25 better word -- maybe not, it's a different word. SONIA TOTH & ASSOCIATES (305)854-7710 520 1 What are the components, sir, that are 2 included in your position as to your percentage 3 ownership in "Thee Viking"? 4 A My position is that a portion of my 5 ownership is, first of all, all the work that 6 occurred by finding the boat, buying the boat, 7 financing the boat, taking care of the boat, 8 maintaining the boat, getting the mortgage, be 9 responsible for the mortgage, and see to it that our 10 investment holds its value as best as possible. 11 Q Yes, that's what I think His Honor used 12 the term "sweat equity" or something similar. 13 A That's correct. 14 Q Other than that, sir; so far you've only 15 given me one portion -- 16 THE COURT: I'm going to sustain the 17 objection that's forthcoming. We're not 18 talking about his formula now, we're just 19 talking about his labor and sweat and tears. 20 You're not giving me a formula. He's not 21 giving me a formula. 22 MR. GOODMAN: Right. 23 THE COURT: He doesn't have a number, we 24 know that; and you asked him now just to tell 25 me some of the things that he considers have a SONIA TOTH & ASSOCIATES (305)854-7710 521 1 value, which he intends to assimilate or 2 aggregate in order to reach a determination of 3 a figure that he thinks, or a portion, and I 4 sustain the objection which I presume is 5 forthcoming. 6 MR. GOODMAN: All right. 7 BY MR. GOODMAN: 8 Q Is it your position that the father and 9 son's ownership interest in the boat is based on the 10 amount of money that they paid from whatever source? 11 A That's correct. 12 Q So that's consistent between you and them? 13 MS. SULLIVAN: Objection, Your Honor. 14 THE COURT: Sustained. That phrase "they 15 paid from whatever source" is -- gives me a lot 16 of trouble. 17 MR. GOODMAN: All right. I'll phrase it 18 differently, Your Honor. 19 THE COURT: I'm not inviting you to, I'm 20 sustaining the objection. 21 MR. GOODMAN: All right. 22 BY MR. GOODMAN: 23 Q Ms. Sullivan had asked you, I guess, sort 24 of a hypothetical question about: Would it have 25 mattered to you if Tryggvi was representing Gaumur. SONIA TOTH & ASSOCIATES (305)854-7710 522 1 If Tryggvi Jonsson told you that he was 2 representing Gaumur, would it have made a difference 3 to you if your agreement, in fact, had been with the 4 father and the son? 5 MS. SULLIVAN: Objection, Your Honor. 6 THE COURT: Whoa, I'm not sure I 7 understand the question anyway. His testimony 8 has been that his agreement, such as it was, or 9 is, was with the father and son; and you said: 10 If, hypothetically, the agreement was with the 11 father and the son. 12 MR. GOODMAN: No, no, I'm saying, the 13 hypothetical part -- 14 THE COURT: I haven't the foggiest idea 15 what you're trying to get from the man other 16 than what she asked. She asked: Would it make 17 a difference to you if Tryggvi had been 18 representing Gaumur instead of father and son? 19 He said no. 20 Didn't you? 21 THE WITNESS: That's correct. 22 THE COURT: Now what variation of that 23 were you interested in exploring? I'm not 24 inviting that, but isn't that really sort of 25 addressing it? SONIA TOTH & ASSOCIATES (305)854-7710 523 1 MR. GOODMAN: I'm not sure, but given your 2 comment about not inviting further inquiry, I 3 will move on to a different question, 4 Your Honor. 5 THE COURT: Kind of took care of that 6 part. 7 BY MR. GOODMAN: 8 Q If your agreement had been with Gaumur, 9 would you have needed to submit invoices with false 10 descriptions on them in order to obtain 11 reimbursement? 12 A No. 13 Q Did Tryggvi ever say he represented 14 Gaumur? 15 A No, he never did. 16 MR. GOODMAN: You know, Your Honor, timing 17 is everything in life, and I see that it's now 18 one minute to 5:00, and I know that you have 19 told us that you'd like to end today at 5:00. 20 And subject to Ms. Levinson flagging me down 21 that I've omitted something, which she's not 22 going to do, we are finished with our Redirect 23 Examination of Mr. Sullenberger, and it is now, 24 by my watch, 5:00 p.m. 25 THE COURT: No questions? SONIA TOTH & ASSOCIATES (305)854-7710 524 1 MS. SULLIVAN: No, Your Honor. 2 THE COURT: You may stand down. 3 THE WITNESS: Thank you. 4 (Thereupon, the witness was excused.) 5 THE COURT: Did you have another witness 6 you want to call? 7 MR. GOODMAN: Yes, but I understand that 8 it's 5:00, and -- 9 THE COURT: Having announced that we'd 10 terminate at 5:00, taking one side or the 11 other, then you're entitled to rely upon that. 12 I won't ask you to call another witness now. 13 We will start tomorrow morning at 9:30 14 promptly, more or less. I intend to be here at 15 9:30, unless something unusual happens. 16 THE CLERK: We have a 9:15. 17 THE COURT: Oh, that's right. I have a 18 9:15. I'm going to try to start at 9:30. 19 MR. GOODMAN: Would it be all right if we 20 leave our boxes? 21 THE COURT: Yes. We're off the record. 22 (Thereupon, the proceedings were adjourned 23 at 5:05 p.m., to be continued in Volume V on 24 6-26-03, at 9:30 a.m.) 25 SONIA TOTH & ASSOCIATES (305)854-7710