Document RjbNbBg7QJjv4Mb7vYdVpKkGE

TELEPHONE CONVERSATION BETWEEN CHARLES H. McCREA AND TOM KOTOSKE OF JUNE 30, 1989 KOTOSKE McCREA KOTOSKE McCREA KOTOSKE McCREA KOTOSKE During the week of the 19th but you didn't tell me when they met then I don't care, just the three of them and they will not, and I repeat, they will not make an offer on this case, they want us to sue them. They won't make an offer to IU.? Oh no, we settled IU. Oh, you settled IU? Okay. So they won't make an offer to us? They will not make an offer. He said it kind of strange. I will try to repeat it. What I think is once we file suit I think they are going to contest the complaint on a motion to dismiss and if they lose I think they will probably cave in, that is going to be the key battle. Now he did not say that. He said we would like to test your theory before we pay you any money. How do you interpret that? I don't know how you test a theory unless you move to dismiss. So the last part is my inference drawn from what he said. I don't know how else to read that to tell you the truth. / / ^ 7, 2-- McCREA KOTOSKE McCREA KOTOSKE McCREA KOTOSKE th No, I don't either. Tom, do you want to work this around and put a Rico claim in there? No. 7 Notyou don't. I'll tell you why. We just handled a multi-- a piece of multi-- up in Federal Court before Judge Charlie Legg, a fairly massive piece, multi-district securities fraud litigation. We were not the only plaintiffs, for a minute we had Pillsbury, Madison and Sutro, that is a firm out here. I know who they are. And people of that gilt and I sat around the strategy tables early on and we had two plaintiffs and they had a couple and so forth, and we went through this and you know I used to lecture on Rico when it first came out when John Dowd and I did the very first ones. He did the first one in the country. And we knew then it was not designed for every type of civil case. I lost the argument and we went throucrh a areat bier . we had this big, old Rico claim in there, you know for the mail fraud counts and so forth. Well, Judge Legg just went through the roof. As you know that statute is very controversial now because of its use and misabuse on the civil side. 2- - McCREA KOTOSKE McCREA KOTOSKE McCREA KOTOSKE McCREA KOTOSKE McCREA Cl Right, the Supreme Court just this week though came down with another one supporting it. You're right, they did, but what are we going to seize, GE? Are we going to -Euin it? That's a hell of a threat, isn't it? I am a gas man myself. I don't know what the hell I would do with that electric company. Anyway, I think its nice and tidy. I think your allegations of putting in the property damage are neatly tucked in and I believe that to be were to tear down buildings and stuff like that. Yes. Well, I'll tell you where I came to that. The trust indentures under which a utility secures its property typically describe transformers, capacitors, poles, insulators, a whole paragraph of junk and it is all improvements to real property, so it is real property, and I can support that. Okay. Good. I would like to file the thing. Is Monday too soon? I don't know that we have anybody working Monday, but we can sure file it next week. Okay. And I think we will meet the statutes in fine shape, don't you? I think so, yes. 3- - % KOTOSKE McCREA KOTOSKE McCREA KOTOSKE McCREA KOTOSKE McCREA KOTOSKE McCREA ift C.h I can't, in my mind, I believe, and I may be wrong, but I don't think we met with those folks before the 4th of July, did we? No, we met with them later in July last year. In fact we met with them in September. You and David and the group came out sometime in May or June and then I met with Nevada Power in July, I believe, and we met with the GE people in September. Right. Well, okay, I think we should file it. All right, we will do it. File it as it stands though. You are right in the bull's eye on the thing and we will let him test our theory. Okay. We've got seven of them to test there so we will see where we come out. You want to file it but not serve? Well, it is not going to do us any good. Well, let's wait a month but let's don't wait-- because the statute is 120 days statute. Right. So you want to file it and then send them a copy with the file stamp on it and say we haven't served this yet but what do you want to do now? Yes. Let's do it that way. All right. I will send you a file-stamped copy then. 4- - KOTOSKE McCREA KOTOSKE McCREA KOTOSKE McCREA C> i.i Yes, let's do it that way and then I will have some specific theories to shoot at. We will go, sir. Good Chuck, it looks good. All right, have a nice weekend. You too. Have a nice holiday. Okay, I'll do it. 0855H 5- -