Willis Carto archive

Judge Seems Ready to Rule That Carto, Liberty Lobby are in Default

November 30, 2000

California Superior Court Judge Runston Maino appears to be convinced that Willis Carto and Liberty Lobby have engaged in conduct so egregious that it represents a default of the agreement they signed with Legion for the Survival of Freedom, parent corporation of Institute for Historical Review. LSF/IHR attorneys have presented several issues on which Carto and Liberty Lobby are in default.

Throughout the hearing, Brian Urtnowski, attorney for Carto and Liberty Lobby, repeatedly lied to the judge about events, evidence, and the law. Nevertheless, Judge Maino quickly grasped the fact that, if for no other reason, Carto and Liberty Lobby were in default for filing a new, multi-million dollar lawsuit against LSF/IHR, after agreeing in writing not to do so.

At one point, as Urtnowski attempted to mislead the court, Judge Maino told him, I honestly fail to see why this is so complicated, and, referring to the agreement signed by Carto and Liberty Lobby, asked, What’s wrong with simply going down the list [to see which of the provisions they had failed to fulfill]? Finally, Maino stated that the new lawsuit seems to be a clear breech … I have a forbearance agreement [which precludes such litigation], and I have a lawsuit.

LSF/IHR attorneys claim that Carto and Liberty Lobby are in default for:

• failing to pay interest as scheduled in the agreement (they are currently $115,076.85 behind in their payments, with another payment of $6,884.70 due December 1);
• failing to pay penalties as scheduled in the agreement (they currently owe $127,705.20 in penalties, with another $5,000 penalty due December 1);
• failing to turn over documents as called for in the agreement;
• failing to schedule discovery as called for in the agreement;
• failing to turn over LSF/IHR property as called for in the agreement; and
• filing a new (meritless) lawsuit against LSF/IHR after agreeing not to.

Maino has given Carto’s attorneys until December 11 to submit points and authorities and affidavits explaining why they believe they are current on their payments, and the propriety of the new lawsuit. Dates for discovery must also be set by this date. Maino indicated he will issue his ruling by December 13.