Willis Carto archive

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Statement of Decision in the IHR Case Against Willis Carto (11/14/1996)

SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
NORTH COUNTY BRANCH

LEGION FOR THE SURVIVAL OF FREEDOM, INC., a Texas corporation

Plaintiff

vs.

WILLIS CARTO aka FRANK TOMPKINS aka E. L. ANDERSON, Ph.D.; HENRY FISCHER aka HENRI FISCHER; LIBERTY LOBBY, INC., a corporation; VIBET, INC., a corporation, and DOES through 50, Inclusive,

Defendants

 

CASE NO: N64584

Statement of Decision

A. As to all causes of action:

  1. The complaint is not barred by the Statute of Limitations.
  2. The complaint is not barred by the Doctrine of Laches.
  3. The Legion for the Survival of Freedom, Inc. has standing to bring the complaint.
  4. All 16 defenses proposed by the defendants are rejected.
  5. When required by law all findings are by clear and convincing evidence. E.C. 622.
  6. Judicial notice will be taken of the Statement of Decision by Judge Polis in Case 720973 dated April 1, 1994, Case No 720973, in the Orange County Superior Court entitled, Tom Kerr and Elizabeth Carto vs. Legion for the Survival of Freedom, et al.
  7. No punitive damages.
  8. The plaintiff is the prevailing party and is entitled to costs.

B. First Cause of Action

Judgment for the defendant as there does not appear to be a cause of action for a civil conspiracy to defraud.

C. Second Cause of Action. Conversion

Judgment for the plaintiff as against all defendants. The Court finds that 45% of the Farrel Estate, $7,500,000, belonged to the plaintiff. No defendant was entitled to use, possess, or withhold any portion of this $7,500,000. All defendants have substantially interfered with the plaintiff’s property rights as to this $7,500,000. As to all defendants this interference was intentional and without any justification.

Reasonable, necessary and provable costs of $1,070,000 in order to secure the $7,500,000 for the Legion will be allowed.

The Court finds Liberty Lobby has converted $2,650,000 of the plaintiff’s property. Interest at 10% on this sum will start on January 1, 1993.

The Court finds the other defendants converted $6,430,000 of the plaintiff’s funds. Liability is joint end several. Interest will run from January 1, 1991.

Since a thief and a receiver cannot be the same person the P.C. 4961 has not and cannot be proven as against Mr. and Mrs. Carto, Mr. and Mrs. Furr, Mr. Fischer or Vibet. As to Liberty Lobby, I am not convinced they knew that someone had stolen the $2,650,000 which they obtained. Therefore the plaintiff is not entitled to triple damages and attorney fees per P.C. 4961.

D. Third Cause of Action. Accounting

Judgment for the plaintiff on this cause of action. The court is convinced there are gems and gold including, but not limited to, diamonds in the 45% of the Farrel Estate which belong to the Legion under the Distribution Agreement (Exhibit #20), Mr. and Mrs. Carto, Mr. and Mrs. Furr, Mr. Fischer and Vibet are ordered to provide an accounting as to these gems end gold to the plaintiff.

E. Fourth Cause of Action. Negligence

The Court finds Mr. and Mrs. Carto, Mr. and Mrs. Furr, Mr. Fischer and Vibet were grossly reckless and grossly negligent in their handling of the Farrel estate. This gross negligence and recklessness caused injury to the plaintiff. There was no contributory negligence or failure to mitigate damages by the plaintiff. Judgment for the plaintiff for $6,430,000 with interest from January 1, 1991.

As to Liberty Lobby the Court finds for the defendant on this cause of action.

F. Fifth Cause of Action. Money Had and Received

Judgment for plaintiff as against defendants Carto, Furr, Fischer and Neca for $6,430,000, with interest from January 1, 1991.

Judgment for plaintiff as against Liberty Lobby for $2,650,000, with interest from January 1, 1993.

G. Sixth Cause of Action. A Violation of Corporations Code 5142

The Court finds this is not a cause of action but a section giving an organization the power to seek an injunction The Court finds the Legion has such power and so finds for the plaintiff on this cause of action.

H. Seventh Cause of Action, Injunction

The Court finds for the plaintiff on this cause of action and orders Mr. and Mrs. Carto and Mr. and Mrs. Furr to do the following:

  1. To refrain from representing themselves to the public, to financial institutions, or to Mr. Rochat as members or officers of the Legion for the Survival of Freedom.
  2. To refrain from any transfer of minutes, funds, corporate seals, or records of the Legion for the Survival of Freedom to any person without court order.
  3. To refrain from any interference with the operation of the Legion for the Survival of Freedom.

This injunction does not prohibit the defendants from turning records, accounts, corporate seals, or funds belonging to the Legion over to any law enforcement agency. Nor does it prohibit them from proceeding with legal actions here or in Texas.

I. Eighth Cause of Action, Declaratory Relief

The Court declares that: (1) The plaintiff owes nothing to any of the defendants. (2) That all of the 45% of the Farrel Estate which is in the possession of Mr. Rochat, or any defendant belongs only to the Legion. (3) That there is a constructive trust as to all defendants, except Liberty Lobby, of $6,430,000 plus interest in favor of the plaintiffs and as to Liberty Lobby there is a constructive trust as to $2,650,000 plus interest. (4) That the Legion has the right to receive bank statements from the Neca and Vibet corporations.

Plaintiff to prepare the judgments, submit a cost bill.

Dated Nov l4, 1996

RUNSTON G. MAINO
Judge of the Superior Court