Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 1 of 45Transcript of the Testimony of: 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Date: November 21, 2012 Case: Lisa T. Jackson v. Paula Deen, et al. 4:12-CV-0139 Tom Crites & Associates International, Inc. P.O. Box 9438 Savannah, Georgia 31412 Phone: 800-631-3480 Fax: 912-233-7777
[email protected] Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 2 of 45 Page 1 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF GEORGIA SAVANNAH DIVISION LISA T. JACKSON, Plaintiff, vs. PAULA DEEN, PAULA DEEN 4:12-CV-0139 ENTERPRISES, LLC, THE LADY & SONS, LLC, THE LADY ENTERPRISES, INC., EARL W. "BUBBA" HIERS, and UNCLE BUBBA'S SEAFOOD and OYSTER HOUSE, INC., Defendants. _________________________________________________ CIVIL ACTION NO. 30(b)(6) Deposition of Paula Deen Enterprises, LLC, The Lady & Sons, LLC, The Lady Enterprises, Inc., and Uncle Bubba's Seafood and Oyster House, Inc., through its designated representative, KARL SCHUMACHER, taken by counsel for the Plaintiff, pursuant to notice and agreement, before Rachael Miller, Certified Court Reporter, at 218 West State Street, Savannah, Georgia, November 21, 2012, at 1:33 p.m. Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 3 of 45 2 (Pages 2 to 5) Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 Page 4 INDEX OPENING REMARKS AND STIPULATIONS ------- 7 APPEARANCE OF COUNSEL: FOR THE PLAINTIFF: MATTHEW C. BILLIPS, Esquire Billips & Benjamin, LLP 3101 Towercreek Parkway Suite 190 Atlanta, Georgia 30339 (770) 859-0753 S. WESLEY WOOLF, Esquire 408 East Bay Street Savannah, Georgia 31401 (912) 201-3696 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 EXAMINATION By Mr. Billips -------------------- 7 ATTESTATION --------------------------- 116 ERRATA SHEET -------------------------- 117 CERTIFICATE --------------------------- 118 FOR THE DEFENDANTS: WILLIAM FRANKLIN, Esquire KELIN MURPHY, Esquire Oliver, Maner, LLP 218 West State Street Savannah, Georgia 31401 (912) 236-3311 Page 3 19 20 21 22 23 24 25 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 FOR THE DEFENDANTS: THOMAS A. WITHERS, Esquire Gillen, Withers & Lake, LLC 8 East Liberty Street Savannah, Georgia 31401 (912) 447-8400 Also Present: Earl Hiers, Paula Deen DOCUMENTARY EVIDENCE NUMBER DESCRIPTION PAGE 22 Amended Notice of Deposition 10 Item #9 UB 23 August 5, 2010 emails 12 Subject: UB Plans 24 Amended Notice of Deposition 76 Item #9 PDE 25 July 7, 2010 emails 80 Subject: HR addl interviews 26 August 19, 2010 emails 84 Subject: PDR and HR issues 27 October 27, 2010 email 87 Subject: HR call on 10/27/10 28 June 9, 2010 email 111 Subject: Staff at PDE 29 Amended Notice of Deposition 113 Item #9 L&S Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 4 of 45 3 (Pages 6 to 9) Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 DISCLOSURE STATEMENT STATE OF GEORGIA: COUNTY OF CHATHAM: Pursuant to Article 10.B. of the Rules and Regulations of the Board of Court Reporting of the Judicial Council of Georgia, I make the following disclosure. I am a Georgia Certified Court Reporter. I am not disqualified for a relationship of interest under the provisions of O.C.G.A. 9-11-28(c). Tom Crites & Associates International, Inc. was contacted by S. Wesley Woolf, P.C. to provide court reporting services for this proceeding. Tom Crites & Associates International, Inc. will not be taking this proceeding under any contract that is prohibited by Georgia law. This, the 5th day of December, 2012. _________________________ perform services? A. I'm the primary person at the Paula Deen Enterprises, but I also go in and do some consulting and also help pay the bills for Uncle Bubba's. Q. Okay. A. Uncle Bubba's Seafood. Q. Okay. Are you an employee of Paula Deen Enterprises? A. Yes, sir. Q. Okay. You're a certified public accountant? A. I am. Yes, sir. I also have my own CPA practice, too. Q. Okay. Do you do work for the defendants in this case as part of your CPA practice or is all of the work that you do for the defendants part of your employment with Paula Deen Enterprises? A. As Paula Deen Enterprises. Q. Okay. So you do not separately charge any of the defendants for anything you do for Lady & Sons or Uncle Bubba's? A. I do not charge anything for my time to do that, but I do want to point out that my firm Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. BILLIPS: Okay. This will be the deposition of the corporate defendants pursuant to Rule 30(b)(6). This witness has been initially identified for items 11, 12 and 13. And we have, I believe, agreed yesterday that he would kind of bat cleanup on items 1 through 3 and 14 through 18 where the witnesses previously identified were unable to fully answer the questions. Is that -MR. FRANKLIN: That sounds reasonable. MR. BILLIPS: Okay. And just so I have it on the record, we've agreed to the same stipulations as in the prior portions of the 30(b)(6) depositions. KARL SCHUMACHER, having been first duly sworn, was examined and testified as follows: EXAMINATION BY MR. BILLIPS: Q. Please state your full legal name. A. My name is Karl Frederick Schumacher. Q. Okay. And, Mr. Schumacher, where and in what capacity are you presently employed? A. I'm the CFO for Paula Deen Enterprises. Q. And on -- for which companies do you does the payroll processing for Lady & Sons and Uncle Bubba's, and we do charge separately for that. Q. Okay. A. But that's out of the realm. Q. All right. Some of the items on which you're here, I think, overlap to a certain degree. One of the items, item number 12, is a description of transfers of assets between Uncle Bubba's Seafood and Oyster House and any other defendant. A. Yes. Q. And have there been any transfers of assets between, let's say, any of the defendants? A. Yes, there is. There have been checks written between the different companies. I have some of that information for you, too. Q. Okay. And is that -- you brought that with you? A. Yeah. I've got one copy for the court, and then here's a copy for you. This is a copy for this side, and there's an extra copy, too, in case. There's another one. I have a copy for myself, too. Q. Okay. A. I thought I also was going to be charged Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 5 of 45 4 (Pages 10 to 13) Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 in number 9, so that's why that's on the front page in case you were wondering. Q. As a matter of fact, yes, that's exactly -- that's true. I just missed that number. A. So I just wanted to point that out. That's why it's on the front. Q. All right. Then why don't we mark as -let's see. Are these all -- these three are the same. A. They are not the same, because I put in the upper right-hand corner which one it applies to. UB is Uncle Bubba's, Lady & Sons and PDE. But they're all answering for different questions. (Exhibit 22 marked for identification.) BY MR. BILLIPS: Q. Which you have produced, first page of which says item 9, corporate structure and allocation of costs. And this is in reference to Uncle Bubba. And if you would explain to me the -with regard to the corporate structure, I think it's fairly self-explanatory as to who the owners of these -A. Yes. person has their own employees. Each person has their own equipment. First of all, there's such a large distance between each other, so it doesn't make sense to have anything shared between each other. Q. Okay. The Uncle Bubba's Seafood and Oyster House, Incorporated, and Lady & Sons, at least as of the time that Lisa Jackson was working there, were not financially self-sufficient; is that correct? A. No. You said both the companies or one of the companies? Q. Well, was Uncle Bubba's financially self-sufficient? A. It had shown a profit sometimes, but for the most part, no. (Exhibit 23 marked for identification.) BY MR. BILLIPS: Q. Okay. I'll show you what's been marked as Exhibit 23 to your deposition. Is this an email from you to -A. Yes. Q. -- Lisa Jackson, August 5th, 2010? A. Yes. Q. And I'm going to ask you about some of Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. -- who are the share owners of these corporations. A. Yes. Q. Do any of the -- of these corporations have boards of directors? A. We do according to the Secretary of State's office. Q. But do they actually have board of directors meetings and minutes? A. We have discussions, but we do not take minutes, no. Q. Okay. All right. And are there actual votes and recorded votes and things of that sort or is it handled -A. Not recorded. Q. Okay. The allocated cost of operations between the entities, could you explain for me -A. You were asking in the item if there's like any shared costs between each other. Q. Right. A. As you put in there, you asked for defendants' allocated costs, operations, food, labor and employee costs between the various entities, and there is none. Each person buys their own food. Each the issues in here. There's a reference here to PDE has not reimbursed UB for the discounts for several months now. A. Yes. Q. What does that refer to? A. Well, to try to promote the business a little bit, we -- PDE was trying to help them out. So in case there's a -- some people are going from Lady & Sons over to Uncle Bubba's. We were trying to give them an offer. Sometimes the offer was free appetizer, sometimes buy one get one free. Just trying to promote because people go from one place to the other place. And PDE was reimbursing Uncle Bubba's for those discounts. There might have been other discounts like for community night, because that promotes the people around the area and some school days we called it. But for the most part, that was the main one. Q. Okay. And so Uncle Bubba's was -- let me see if I'm understanding the direction this is going. Uncle Bubba's is giving discounts on food items if people also go to the Lady & Sons? A. Yes. Q. Okay. And PDE was reimbursing Uncle Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 6 of 45 5 (Pages 14 to 17) Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Bubba's for those discounts? A. Yes. Q. Okay. And how was Lady & Sons reimbursing PDE, if at all? A. Lady & Sons does not reimburse PDE. Q. Okay. So PDE was paying Uncle Bubba's to give discounts for people to go to Lady & Sons? A. No. Q. Okay. Then I'm misunderstanding you. A. That's right. Q. What was the discount for? A. All right. Assume that you ate dinner at Lady & Sons -- ate lunch at Lady & Sons. You were given sometimes a card or sometimes on the bottom of your receipt it would say, go to Uncle Bubba's and receive a free appetizer up to a value of $9.99. Q. Okay. A. You would take that receipt, you would drive out to Uncle Bubba's, you have dinner, you have -- well, first you have the appetizer, then you turn in your receipt to them, and they will say, okay, thank you. And then they will give you your dinner with $9.99 off. Q. Okay. reimbursement for the discounts? A. Yes. Q. So this program had been going on at least for some time longer than that? A. Yes. Q. Okay. There's also a reference to Brother and Sister has not reimbursed Uncle Bubba's for the last few Hodgson Memorial loan payments. First of all, what is it? What is the Hodgson Memorial loan payment? A. Bubba owns or at that time owned a piece of property over on Hodgson Memorial Drive, and the payments were $2,509 per month. And he was paying it out of the company, but we were in the process of transferring that property out of his name and putting it into Brother and Sister's name. So since it was going to be in Brother and Sister's name, just a technicality, we were reimbursing -- Brother and Sister were reimbursing Uncle Bubba's because they had made the payments. It was just a transfer of money at that time. Temporary. Q. Okay. So Uncle Bubba owned the property? Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. So what happens is you've got the Lady & Sons' people, they're going to go out to Uncle Bubba's to try it out because people like deals, plus it's good seafood. Q. Okay. And why would PDE reimburse Uncle Bubba's for that kind of advertising? A. Trying to help promote it. Q. All right. Was this benefiting PDE in any way? A. No. Q. All right. But PDE would pay for the discounts, correct? A. Yes. I do want to point out that was a temporary item that we did just to try to bump up business for a certain period of time. It is no longer being done at this point. Q. Okay. It was being done as of August 5th of 2010, correct? A. Yes, sir. Q. And it had been -- for how long had it been done prior to that time? A. I want to say it's -- I do not recall the exact dates. Q. Okay. But it had been as of this email several months since PDE had provided a A. Bubba owned the property, not Uncle Bubba's. Q. Okay. Actually, Mr. Hiers owned the property personally, correct? A. Yes. Q. And how long had he owned the property? A. At that time, I can't recall. Maybe two to three years. Q. Okay. For how long had -- strike. And Uncle Bubba's was paying for the property? A. Uncle Bubba's was reimbursing Bubba for when he made the payments. Q. Okay. And then -A. Then Brother and Sister reimbursed Uncle Bubba's -Q. Okay. A. -- for that payment that they gave to Bubba. Q. And what was that piece of property being used for? A. At that time, it was vacant. It was being used as a -- it had a salon in there at one time, and the salon moved out. Well, they closed up shop and they moved out. So Bubba did not have the rent coming or the money given to him to make Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 7 of 45 6 (Pages 18 to 21) Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the payment, so he took the money -- he made the payment, because it's automatically taken out of his bank account. Uncle Bubba's gave the money to him, and then Brother and Sister paid it over to Uncle Bubba's reimbursing him so everybody's whole on the situation. Q. Okay. Did Uncle Bubba's have any ownership interest in this property? A. No. Q. Okay. Did it have any financial interest in this property at all? A. No. Q. Did it have any prospect of having any financial interest in this property? A. No. Q. Was it using this property for any reason? A. No. Q. Was Uncle Bubba's reimbursing Mr. Hiers for this property with pre-tax or after-tax dollars? A. After tax. Q. Okay. So he was paying for it with after-tax dollars and then Uncle Bubba's was paying him back what he had paid? Sister? A. It's a partnership. Q. Okay. Uncle Bubba's is an actual incorporated corporation? A. Yes, sir. Q. Okay. But for purposes of this transaction, the bank accounts of Brother and Sister and Uncle Bubba's, Incorporated, were being treated as if they were the personal accounts of Bubba Hiers? A. Can you repeat the question. Q. For purposes of this transaction involving the Hodgson Memorial loan payments, the bank accounts of Brother and Sister and Uncle Bubba's, Incorporated, were being treated as if they were the personal accounts of Bubba Hiers? A. We treated the payment going out as a distribution to Bubba, and then when the money came back in it just offset it. So Uncle Bubba's, Inc., had no effect to it. Q. Okay. Well, isn't -- wouldn't the payment from Uncle Bubba's, Inc., to Bubba Hiers be a -- reimbursing him -- what you call reimbursing him for the cost of this loan payment be a taxable transaction? Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Yes. Q. Was the transfer from Uncle Bubba's to Mr. Hiers to pay him back, was that taxed? A. No. Because it got reimbursed from Brother and Sister. So essentially, Uncle Bubba's came out whole, because the money -- they gave him money and they got money back from Brother and Sister. Q. Okay. And was Brother and Sister taxed on the transfer of money to Uncle Bubba's? A. It got -- no. Because that was just -they got a tax deduction for the interest portion of the loan payment, but Bubba got the interest deduction. Q. Bubba got the interest deduction? A. Yes. Q. Brother and Sister were paying for the property ultimately? A. Ultimately because he at that time -- I take that back. The interest deduction was split up between him and Paula, which Paula owns Brother and Sister with him. Q. Okay. A. To me it's just a wash. Q. What kind of corporation is Brother and A. No. Q. Why not? A. Because it's just a reimbursement. Q. Well, but it's a reimbursement for what? What good does that do for Uncle Bubba's, Incorporated? A. It has no effect on Uncle Bubba's, Incorporated. Because they got reimbursed, too. So it's money in, money out. It's all equal out. Q. Sure. But aren't these supposedly separate legal entities? A. Yes. Q. Which have separate tax entities? A. But the taxes came out on Brother and Sister, because they're ultimately the person that paid it. Q. Okay. A. And since that time we've gone out there -- but it just took a little while to get the loan to be moved over to Brother and Sister. Right now the property is in Brother and Sister's name. The company is being -- Brother and Sister's making the payment. And that's the way it could have been done, but unfortunately we had some -- it just takes a little while for the Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 8 of 45 7 (Pages 22 to 25) Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 paperwork to go through the banks and also to get it transferred over. And to go with it we had a complication because that property initially was owned with Bubba's ex-wife Dawn, and she was in bankruptcy. So the bankruptcy caused some problems because just the way the courts are, they don't want to just transfer stuff that's in bankruptcy. I just know it just took a long time. A lot longer than it was supposed to be. If it wasn't for that bankruptcy, it could have been done pretty fast. Q. Okay. So this property at the time was at least, in part, the property of a bankruptcy estate? A. No. Q. I'm sorry. Didn't you say that the -A. It was never in bankruptcy. They had listed on the bankruptcy -- when she filed bankruptcy -Q. As an asset? A. I think she did not list it initially, but then when they did some research, I think they found out about it, because it was already over in Bubba's -- she already signed off on a piece of come back up. Either that or we're going to find somebody to rent the place. You've got to rent the place, then you've got money coming in and you're offsetting against the loan. We're letting them make the payment for us versus us paying out of our own pocket. Q. Sure. Why would Brother and -- did Brother and Sister take over the property -- did Brother and Sister take over -- assume the loan? A. Yes. Q. Okay. And they assumed the -- the negative equity. Were they -- were Brother and Sister paid by Bubba Hiers for -- for the negative equity? A. No. They just transferred over. Q. Okay. So basically the indebtedness was transferred over from Bubba Hiers to Brother and Sister without any value to Brother and Sister other than the property itself which was under water? A. Correct. Q. Okay. And how much was it under water? By about a hundred thousand dollars? A. I used that as an example. I think it was really close to 60,000. I think it's like Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 paper that it was supposed to be over in Bubba's name, so she never listed it on there. Q. But that transaction was undone by the bankruptcy court? A. No. It was not undone. It just took a long time for them to figure it out and to say there was no value there, because the loan was worth 300-and-some-odd-thousand dollars, the property is only worth 200-and-some-odd-thousand dollars. So it took them a little while to figure out that the equity was negative equity, and so they said, it's not going to help their situation, so they allowed us to go through with what we originally wanted to do is get the property out of Bubba's name and over to Brother and Sister. Q. Why would Brother and Sister want to take on something that had a negative equity? A. Because we felt like at that time that the property was going to go up in value, and every time you make a payment it starts reducing down the principal. I mean, it reduces down the principal every time. So over a period of time we're hoping that we'll get positive equity. The market will 300,000 was owed on it. And because right now the amount owed is less than 200,000. And, you know, it doesn't take -- and I think it was worth about 260 or something like that. It's getting better because the market has gotten better. Q. Let's see. You then go on to say, I looked at the balance in the MMA account and compared it to 2009. What is the MMA account? A. Money market account. Q. Okay. Whose money market account? A. Uncle Bubba's Seafood, Inc. Q. Okay. The benefits -- you go on saying that the benefits, your health insurance and related items are the same as the other companies. A. Yes. I was starting to read the second part of this email where she sent me an initial one that came through. Q. Right. A. I think what they're saying at this point that she was saying that -- what it's saying is, you know, pay rates, bonus and vacations, all of those benefits get to our managers' ears as if Uncle Bubba's had no benefits, whereas Lady & Sons did have benefits. I just pointed out to her that our insurance plan for the managers was the same Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 9 of 45 8 (Pages 26 to 29) Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 at both places. All managers were covered. Then I went and talked about the pay. I did an analysis. I don't have it in front of me. I did an analysis at that time that showed that her -- or the MODs out at Uncle Bubba's were slightly paid more than the ones over at Lady & Sons. Q. What's an MOD? A. Manager on duty. I'm sorry. I just saw it right there. Q. All right. A. I'm sorry about the terminology. Q. And then you looked at the bonus checks as well or the bonus plans as well. It says, they just get paid two ways instead of one way. Who is they? A. Yes. Okay. The managers at Lady & Sons. Q. Okay. A. Do you want me to elaborate? Q. I assume from this that there were two ways. That -- that they had a bonus plan but that when you added in the bonus plan to the actual payroll it still came out benefiting Uncle Bubba's by a little bit? at, please? MR. BILLIPS: Well, the description -MR. FRANKLIN: Which numbered paragraph? MR. BILLIPS: 9. Sorry. MR. FRANKLIN: I'm sorry. MR. BILLIPS: Description of the corporate structure including allocation of costs between the various entities. MR. FRANKLIN: I don't think he was listed for 9, was he? MR. BILLIPS: Yes, he was. MR. FRANKLIN: Didn't we do 1 through 3, 14 through 18, 11, 12 and 13? MR. BILLIPS: No. He's also listed for 9. MR. FRANKLIN: I'm sorry. That was on the original one I was thinking. MR. BILLIPS: Yeah. And I had neglected to mention 9 at the beginning and he corrected me at the start of the deposition that he was also listed for 9. THE WITNESS: The cost of operations between the defendants, there was -- is that what you're asking about? BY MR. BILLIPS: Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Yes, sir. Q. Okay. Money -- it says, they do seem to have more money available than Uncle Bubba's. They can rely on PDR to help. What is PDR? A. Paula Deen Retail. Q. And how was Lady & Sons relying on PDR? A. That's a good question, because really they shouldn't need it, money from PDR, because they stand on their own. Q. But why would they get money from PDR? MR. FRANKLIN: I object. This is a little outside the scope of any of the enumerated paragraphs he's going to testify too. MR. BILLIPS: Well, it goes to a number of the corporate relationships, the transfer of assets. Was PDR transferring assets -MR. FRANKLIN: Wait a minute. Objection. You deal with -- I don't see anything with regard to some of the entities you're talking about. Brother's and Sister's. There's nothing referencing the Hodgson Memorial loan payments in any of these questions. MR. BILLIPS: And/or other corporations. MR. FRANKLIN: Which one are you looking Q. No. Right now what I'm asking about is how the Lady & Sons relied on PDR to help. A. The only thing they really rely on them for is for rent. They give them $9,000 a month for the rent of their space. Q. Okay. And then at the end of the email, you refer to ultimately we cannot let Uncle Bubba's fail. Getting it to the place where it can repay these loans, question mark, that's a hard question to answer. A. What line are you on? I see it. I see it. On page 1 still. Q. "I feel that L&S is not totally self-sufficient. It makes money but not a lot to give to the owners. Their main way of getting money through it is through their use of credit cards." So at this point in time, you did not see Lady & Sons as being totally self-sufficient? A. That year it was, because it was self-sufficient. It did not need any money to come in from any outside sources. It still does not. Q. Okay. Now, in -- with reference to Uncle Bubba's and Mr. Hiers, they were not Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 10 of 45 9 (Pages 30 to 33) Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 self-sufficient, correct, they relied on Paula Deen Enterprises? A. They needed loans at times, yes. Q. Okay. And I think you referred to that as that they will continue to suck from the PD tit and justify in his mind that he is earning it and deserves it. MR. FRANKLIN: No. I object to that. MR. BILLIPS: I'm sorry. That's referring to Mr. Hiers not to Uncle Bubba's. MR. FRANKLIN: Yes. And he's not going to testify to that. BY MR. BILLIPS: Q. Was that the way that you felt about Uncle Bubba's? MR. FRANKLIN: Objection. About Uncle Bubba's? BY MR. BILLIPS: Q. Uncle Bubba's in addition to Mr. Hiers. A. No. It was not self-sufficient. Q. Okay. And it was -- the only way that it was able to stay afloat was by borrowing money from Paula Deen Enterprises, correct? A. Yes. Yes. Q. Okay. Is that still true? would be charged or whether such financing would be available on the open market at that rate? A. I have other loans through -- that I can look at and see that our normal rate over at Suntrust is about three percent right now. Q. Whose normal rate? A. Pretty much any one of the companies that I look at. Q. Including Uncle Bubba's? A. If I remember right, that's about what rate we paid for Brother and Sister for borrowing the money over there. Q. Well, that's Brother and Sister. What about Uncle Bubba's? A. They don't borrow money from the bank. Q. Okay. They can't borrow money from the bank, can they? A. We probably could. In fact, we can. Q. Okay. Does Uncle Bubba's owe any money to anybody other than a Paula Deen company? A. No. Q. Okay. A. I take that -- during what time period? Q. During, say, 2008 till the present. A. We have got a line of credit established Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. It has its bad and good times. Q. Has it ever turned a profit? A. Last year was good. This year is not as good. Q. Was last year profitable or was it just less unprofitable? A. I'm trying to remember. I can't remember. I personally -- if I remember right, it showed a small profit last year. Q. Okay. Has it ever repaid all of the loans? A. No, sir. Q. Okay. What is the interest rate charged by Paula Deen Enterprises to Uncle Bubba's? A. Usually it depends on what year it is. We look at what the federal rate is or what the prime rate is. I think -- last year I think it was like three and a half or four percent, but like three percent it's probably going to be this year, because the prime rate was down. Q. Okay. So your -- Paula Deen Enterprises is loaning money to Uncle Bubba's at prime rate? A. Yes. Q. Okay. Have you looked to the rate that right now for $100,000 that the bank gave us to pay the attorneys' fees dealing with this case. Q. Okay. And did any other entity or individual have to guarantee that loan? A. The owners have to guaranty it. Q. Okay. Personally? A. Yes. That's standard practice. Q. Okay. All right. The second page of Exhibit 22 was transfers between Uncle Bubba's Seafood and Oyster House and other defendants. And you have a list of transfers. A. Yes, sir. Q. Okay. And explain these transfers to me, if you would. A. Well, I went through the computer. You were asking for money between the different companies. I went through the computer and did a search and put -- did like, for instance -- for instance, Uncle Bubba's books, I typed in the Lady Enterprises -- not typed it in. I picked out the Lady Enterprises and let it choose all the -- all the checks that -- or the transactions between them. Q. Right. A. And then since I knew you probably would Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 11 of 45 10 (Pages 34 to 37) Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ask me what some of these things were for, I put them in different categories like inventory, equipment, overhead, gift cards and advertising, and put that down on a -- on that schedule so you could see what money was going back and forth. I did the same thing for from Lady & Sons going to Uncle Bubba's also, and I did the same thing for Uncle Bubba's going to Paula Deen Enterprises. And from Uncle Bubba's -- from PDE, Paula Deen Enterprises, going to Uncle Bubba's so that you have all the transactions for you, yourself. Q. Okay. And the first page -A. I should have numbered these pages for us, but I didn't. Q. The first page, it says, items listed from vendors report. A. Yes. Q. What are these? A. Those are -Q. What are these for? A. Those are checks going from Uncle Bubba's to the Lady Enterprises. The majority of them you see in that one column called inventory, at one time Lady & Sons, we bought all of our the gift shop. Q. Okay. So everything that says inventory was bought for the gift shop? A. Yes, sir. Q. Okay. So November 7, 2007, there was $26,000 in inventory purchased for the gift shop? A. That was the check that was going for it. It was really for accumulation of probably different time periods, because we opened up in 2004, and we probably were paying for some things as we went along. Sometimes we ran up a bill, and then at that time of the year they decided they were going to pay it all off. Q. Okay. So essentially it was -- it was like on account? A. Yes. Q. And why -- why weren't they paid off as it went along, just cash flow? A. Because just the terms of the pol -- of the vendor relationship. And to go with it, sometimes we were -- at that time, we were a little bit more leisure about doing it. And sometimes during that time period, during the summertime was our good times of the year. So we had the money. Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 merchandise for the gift store was bought through the Lady & Sons. So we had -- when you bought the stuff, when they took the stuff from Lady & Sons and moved it over -- or we bought it from -- at Uncle Bubba's, we had to pay them for that merchandise. Q. Okay. MR. WITHERS: For purposes of the record, we're looking at the third page of 22 at this point in time, right? THE WITNESS: Yes. MR. BILLIPS: Yes, we are. BY MR. BILLIPS: Q. Okay. So these are payments from Uncle Bubba's -- at least some of them are payments for items that were being sold in a gift shop over at Uncle Bubba's? A. Yes, sir. Q. Okay. Which one -- which of the items listed here are for that purpose? Is it all of them? A. No. There's a column set up for that called inventory at the top. Q. Right. A. That's for the ones that were bought for Q. Right. A. It was just a matter of we just probably elected not to do it at that time. Q. Okay. And why was the Lady Enterprises purchasing these items from vendors instead of Uncle Bubba's doing it directly? A. It's easier for -- they were just -because of economic scales. For instance, if you have a sauce or a season salt, they'll buy the seasoning salt and store it down here. And then Uncle Bubba's would either go pick it up or they would deliver it to them, and then we just had to make sure that that money -- because it's not fair for Lady & Sons to pay for stuff that Uncle Bubba's is selling. Q. Right. Okay. And then the next page of Exhibit 22. A. Those are the checks that were written from Uncle Bubba's -- I mean from Lady & Sons to Uncle Bubba's. Q. Okay. And what was Lady & Sons writing checks to Uncle Bubba's for? A. Well, that gift card, the $200 one, is I think a group went out there. When somebody books a party to eat at the Lady & Sons, we usually get Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 12 of 45 11 (Pages 38 to 41) Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 their -- sometimes a deposit from them for $200. Well, the party eventually ended up eating at Uncle Bubba's, so we had to give them the $200, because when the person paid for it, they didn't pay for the whole thing. They paid for $450 and the other $200 was sitting at Lady & Sons. So Lady & Sons had to give it to Uncle Bubba's. $150 was where a gift card was honored between the two companies. I think a gift certificate was taken from Lady & Sons, they must have used it at Uncle Bubba's, and so Uncle Bubba's did not have the $150. And the $649, I have -- it just said under my description on the computer, it said miscellaneous, so I'm just going to leave it miscellaneous, because I don't know exactly what it was for. Q. Okay. Senior Tours, Incorporated. A. Yeah. I think that -- see, that's unusual, because that's a tour. It sounds like a tour group that came through, but I'm not sure how that would affect it. Because unless they -again, it might have been that somebody -- they might have paid -- they might have paid Lady & A. Yes. Q. How? Was she on as an employee or as if she were an employee? A. I think we listed her as an employee. Q. Okay. PDE did that for Bubba Hiers -A. Personally. Q. -- personally? In order to qualify her for a lower insurance rate? A. I'm not sure the reason why we did it. I do know we did it. Q. Okay. And then Uncle Bubba's was reimbursing PDE for the insurance for Dawn? A. Yes. Q. And at the time that this started, Dawn and Mr. Hiers were married or was this after they were divorced? A. I cannot recall the timing on that. I'm assuming that they were still married. Q. Okay. They're not still doing that? A. No. Q. Okay. A. No. Q. Let's see. Uncle Bubba's reimbursed Paula Deen's for your professional fees. Is that for the payroll? Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sons when they -- because some people do take group tours. And they might have been so used to paying Lady Enterprises, and they might have paid it to them. I did not go back. I saw the name, but I can't remember exactly what happened on that one. Q. Okay. Let's see. The next page of Exhibit 22 has accounting, managerial, Karl's time. These are all payments from Uncle Bubba's to Paula Deen Enterprises? A. Yes. Q. Okay. Who is Dawn? A. Dawn is Bubba's ex-wife. Q. Okay. And Uncle Bubba's was paying Paula Deen Enterprises for Dawn's, ex-wife's insurance? A. Yeah. Until I think -- when they got married, I think that we were just trying to get her some coverage on insurance. And it's not fair for PDE to pay for it, so Uncle Bubba's was reimbursing for that. Q. Was Dawn an employee of PDE? A. No. Q. How was she -- was she on PDE's insurance? A. No. That was for -- we were trying at one time -- when I was spending a lot of time out there, we were trying to get some of the -- let Uncle Bubba's pay for some of my -- instead of putting me on their payroll, which we don't want to do, we were just trying to reimburse for some of my time that I was spending out there. Q. Okay. At what rate? A. I forget. I think we probably looked at probably about 80, $90 an hour. Q. Okay. A. Because it really wasn't -- it's not like I was using my standard billing rates at my CPA practice, because that would have been higher. Q. Right. And you were doing things other than CPA work? A. That was when I was actually just doing some consulting for them, spending some time out there with them. Q. Okay. Then there's bonuses -- strike. Let me -- I'm sorry. A. It's a column for distributions. Q. The reimburse, what is the Erisa bond paid by PDE? A. Well, Erisa is to -- we have to pay a Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 13 of 45 12 (Pages 42 to 45) Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 bond. Erisa is dealing with our employee benefit package. And I think what they did is they probably took it all out of PDE's funds, because the insurance company hit us for one payment. And so it's not fair for Lady -- I mean for Paula Deen Enterprises to pay for it when it applied for Uncle Bubba's. Q. Okay. So were Uncle Bubba's employees and PDE's employees covered under the same retirement or other insurance program? A. We do not have -- we do and do not have the same insurance program. We use Coventry at this point. I forget who we used back in those days. But at one time we had -- we had the same carrier, but I think that -Q. Right. A. -- and I think it's still the same token that they try to give us like a benefit package that has the same price. The pricing structure for if you're a manager at Uncle Bubba's, it costs the same rate as it costs for Lady & Sons. It's just the economics to scale. Q. Okay. A. And I think that they had to get a bond to do that process. transactions, I said what are these transactions when PDE was paying Lady & Sons, because at one time they were -- this was before Uncle Bubba's opened. All the insurance really came through Lady & Sons, which got very confusing, because Lady & Sons would get reimbursed from PDE. Too much hassle. MR. FRANKLIN: Land the plane, please. THE WITNESS: All right. Okay. Thank you. BY MR. BILLIPS: Q. All right. You're fine. All right. So all the employees get the same insurance rate? A. Yes. Q. Because of this -- they're all covered as a group, but the insurance company breaks it out, the cost out individually for each company? A. Yes. Q. Okay. And the reason that's broken out for each company is as a convenience for the companies to account for it? A. It's because they owe it, yes. Q. Okay. And then there's bonus week -there's various bonuses at various weeks. To whom are those bonuses being paid? Page 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. A. I feel like we just went through that again. It's a once-a-year thing. Q. All right. So they have the same health insurance plan at all of the companies for the employees? A. Yes. Q. All right. And that health insurance is purchased as a group as if all of the covered individuals were employees of Paula Deen Enterprises? A. No. Q. No? A. We're treated as one group, whether you're -- now, because we have separate bills that come through for -- Lady & Sons has their bills, PDE has their bills, and Uncle Bubba's has their bills. Q. I see. A. And they do separate it out for us so it makes it a lot easier, because it gets too confusing. Because I'm -- I'm going to jump ahead. Because at one time when we -- PDE was just starting at the headquarters in 2007, I just found this out by looking back at all these A. It's going from Uncle Bubba's to Paula Deen Enterprises. Q. Okay. And why is Uncle Bubba's paying bonuses to Paula Deen Enterprises? A. It's essentially paying it to Paula, but we're just writing the checks to Paula Deen Enterprises so I have a way of tracking it. Q. Okay. So Uncle Bubba's is -- why is Uncle Bubba's writing a bonus to Paula Deen? A. Because there's -- because we did good for that month for the four-week period. Q. Okay. A. There's also -- you're not going to see it here, but there's also a corresponding bonus. There's another check going to Bubba personally. And there also at the same time was a bonus check going to Lisa Jackson, too, at the same time. Q. Okay. And instead of writing a check to Paula Deen personally, the check was written to Paula Deen Enterprises? A. Yes. Q. But Paula Deen wasn't an employee of Uncle Bubba's, was she? A. As a shareholder -- just like Bubba, he received his pay as a -- his pay is for as being Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 14 of 45 13 (Pages 46 to 49) Page 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 an employee. Distributions is based on profit of the company. Q. Was Paula Deen Enterprises a shareholder of Uncle Bubba's? A. No. Q. So the money was paid to Paula Deen Enterprises? A. It was just a technicality so I can trace it out. Q. Okay. A. It really is reported as -- we don't have a tax return. The taxes are treated on Paula's side. She has 50 percent of the company, so she received 50 percent of the money, distributions coming out at that time. Q. Okay. So was this money for tax purposes treated as a distribution to Paula Deen personally? A. Yes. Q. All of it or only half of it? A. That 5,000, all of it. Q. Okay. Was it treated as a distribution from Paula Deen Enterprises or as a distribution from Uncle Bubba's? A. From Uncle Bubba's. Q. Okay. And was he -- how was he taking it? Just taking cash? A. That's applied, yes, by taking cash. Q. And was he accounting for the cash that he was taking? A. We did. Q. How was that being accounted for? A. We kept -- we had some worksheets that told us what the amount was. Q. Okay. Who kept track of it? A. In reality we did. Our office did. Q. Okay. A. We prepared a worksheet that compared the deposits that should have gone to the bank versus what actually went into the bank. Q. Okay. And -MR. WITHERS: Objection to the extent this line of questioning is beyond the scope of the enumerated items in the 30(b)(6) notice. BY MR. BILLIPS: Q. Was the money that he was taking out as cash a transfer between Uncle Bubba's to another defendant, I.E., Bubba Hiers? A. Yes. Yes. Q. Okay. Now, when he was taking the money Page 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. Was the check actually written to Paula Deen Enterprises or to Paula Deen? A. Actually, to Paula Deen Enterprises. Q. Okay. Then there is a match Bubba 2008 distributions. What is that? A. Okay. Bubba had taken out during the -during the time period $2 -- I imagine you're referring to the one that says $2,881.67. Is that what you're looking at? Q. No. I'm looking at the one above that. A. Oh, the 9,000. Q. 7,188. A. Oh, 7,188. Okay. That goes with -- oh, 2008. Because during the year Bubba had taken out some money from the company and miscellaneous things like a company credit card or maybe had -I can't think of what he took out, but because he took money out, I have to match that to Paula for tax purposes. Q. Okay. A. So what you do for one person, you have to do for the other person. Q. Okay. Was there -- was Mr. Hiers ever taking out cash from Uncle Bubba's? A. Yes. out in cash, was he telling anyone that he was taking it or were y'all just going and figuring it out from the deposit? A. Eventually we -- we talked to him about it. Yes. Q. Okay. At first he was doing it and he wasn't telling anyone, correct? A. Yes. Q. And were there -- how did it first come to your attention that he was taking money out in cash? A. I think Lisa maybe pointed it out to me. Q. Okay. And before Ms. Jackson pointed it out to you, were there some cash withdrawals by Mr. Hiers that were not accounted for? A. Repeat. Q. Did y'all go back and find that there were some that had not been accounted for in any respect? A. Oh, we accounted for all of them during the year. Q. Okay. Did you have to go back -- once you found out he was doing it, did you have to go back and figure out how much he had taken? A. We calculated it, yes. Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 15 of 45 14 (Pages 50 to 53) Page 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. And how far back did you have to go to figure that out? A. If I remember right, like a month or so. Q. Okay. And how much money was he taking out in cash? A. I can't recall exact amounts, but say around high 20,000 or maybe 30-some thousand. Q. A month? A. No. For the whole time period. For the whole couple of months. Q. For a couple months he took out 20, $30,000. Okay. And did y'all then talk to him and he stopped doing it? A. Yes, sir. Q. Okay. Because he wasn't supposed to be doing that, correct? MR. WITHERS: Objection to the extent that calls for a conclusion. MR. FRANKLIN: Objection. BY MR. BILLIPS: Q. Well, was that a -- an authorized transfer of funds at the time? MR. FRANKLIN: Objection. That's not within the scope of this. Objection. BY MR. BILLIPS: A. It might have been. Q. Okay. Could you -- could you find that -- there should be -- with respect to those withdrawals, there should be a -- or shouldn't there also be a matching payment to Paula Deen? A. No. Because we treated it as wages. Q. Because you treated it as wages. Okay. I see. A. So if it's wages, you don't have to match wages because it's not matched. Q. Okay. So does that show up on this spreadsheet at all? A. No, sir. Because it's wages. Q. Okay. Nothing was withheld at the time from the payment in taxes? A. No. But eventually it was. Q. Eventually it was paid back? A. Yes. With an advance. I mean with a bonus check at the end of the year. Q. Okay. So was the FICA timely paid? A. On the bonus, yes. Q. On the cash transfer or in the cash payment? A. That was an advance, so it was not due until we wrote the check for the wages. Page 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. You can answer. A. Now, would you repeat the question now. Q. Was that an authorized transfer of that cash at the time Mr. Hiers took it out? A. Not at the time. Q. Okay. A. But I do want to point out that we did pick it up on a W-2 as part of his W-2 earnings for that year, too. So essentially he just took an advance and we just treated it as wages by the end of the year. So he has paid taxes on that amount. Q. Yeah. I mean, y'all treated it as an advance once Ms. Jackson reported that it had happened and you found out? Is that what you're saying? A. We treated it as an advance and we took it out of his wages later on, yes. Q. Okay. And when did that occur? A. When did what occur? Q. These cash withdrawals by Mr. Hiers. A. I can't remember exact months, but I'm going to say May and June of that year. I can't remember what year it was. Q. Was it Ms. Jackson's last year? Q. I see. And had -- strike. Okay. What is the inter-co loan? A. Inter-company loan. Q. Okay. A. What line? What number are you? MR. WITHERS: Same page? MR. BILLIPS: 12. Same page we were just on. 12/30/2011, 52.230, interest inter-co loan. MR. WITHERS: Six lines from the bottom. MR. BILLIPS: Yes. THE WITNESS: Okay. That was where we paid interest on that loan. BY MR. BILLIPS: Q. Which loan? A. On the loan between Uncle Bubba's and PDE. Q. Okay. And then there's match Bubba distribution. Is that the payment to Paula Deen like the earlier ones? A. Yes, sir. Q. Okay. All of the ones that say "match Bubba distribution" are payments that are actually made to Paula Deen Enterprises but are in reality distributions to Paula Deen? Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 16 of 45 15 (Pages 54 to 57) Page 54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. It's treated as distributions to Paula Deen for tax purposes, yes. Q. All right. But again, with respect to each of those, the actual check was written to Paula Deen Enterprises and put into the account with Paula Deen Enterprises? A. Yes. Q. Okay. Where it says repay PDE loan -A. That's where they gave us money back. That's good. Q. Okay. Where Uncle Bubba actually repaid part of that loan? A. Yes. Q. How much does Uncle Bubba's owe to Paula Deen Enterprises? A. Right now probably about 300-and-some-odd thousand. That's, I think, current. Q. Is that loan personally guarantied by Mr. Hiers? A. No. Q. Is it personally guarantied by Paula Deen? A. No. Q. Didn't you tell me earlier that personal could get from a bank in the sense that the owners did not have to personally guaranty it? A. There could be a chance that they could get an unguarantied loan. Q. Have they ever? A. We haven't had to. In fact, I'm not sure that line of credit is personally guarantied by Bubba and Paula at this point. I have to double check on that one. I said that as a standard response, but now I'm going back to it, I don't remember having -- I don't remember having to get them to sign a piece of paper to personally guaranty it. Q. Okay. Now, the next page is payments from Paula Deen Enterprises to Uncle Bubba's. A. Yes, sir. Q. Okay. At the bottom there are -there's a column contribution to Uncle Bubba's not loaned. A. Right. Q. What type of contribution? A. Capital contribution. Q. So Paula Deen Enterprises is making capital contributions to Uncle Bubba's? A. At one time we did, but we quit doing Page 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 guaranties were standard? A. For the bank loans. Q. These are not -- these are not arm's length transactions? A. Yes, they are. Because we pay interest on it. We record it and we go out and pay interest on it. Now, we pay interest periodically, but it is still paid. Q. Okay. A. Because we have to. The IRS requires us to make that -- those payments. Q. Right. But the terms under which these loans are granted are not the same terms that you would get from a bank in the sense that there's no requirement for personal guaranties by the owners? MR. WITHERS: Objection. Beyond the scope and immaterial. You can answer. BY MR. BILLIPS: Q. Go ahead. A. So -Q. You can answer. A. Repeat the question then. Q. The terms of the loans between Paula Deen Enterprises -- from Paula Deen Enterprises to Uncle Bubba, Inc., are not the same terms that you that. Q. Does Paula Deen Enterprises own any of the shares of Uncle Bubba's, Incorporated? A. No. It's treated as a distribution coming out of Paula Deen Enterprises as if Paula took the money out personally and put it into Uncle Bubba's. Q. Okay. Was it -- it was taxed to Paula when it came from Paula Deen Enterprises to Uncle Bubba's? A. Paula had to make the money through her own company to put the money into Uncle Bubba's. Yes. Q. Okay. But was it -- was the dis -- was the payment from Paula Deen Enterprises to Paula Deen taxed before she put it into Uncle Bubba's? A. She paid taxes on the money before putting the money into Uncle Bubba's. That is correct. Q. Did she pay personal income taxes on that money or are you talking about corporate taxes? A. She had no corporate taxes. She paid personal taxes on that money. Q. Okay. Why were the checks written from Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 17 of 45 16 (Pages 58 to 61) Page 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 60 1 2 3 Paula Deen Enterprises? A. That way I can have a way of tracking it. Q. Couldn't you track if it was from Paula Deen? A. No. I don't have her personal checking account. Q. Okay. Did Mr. Hiers -- are there any -are there any records of capital contributions from Mr. Hiers to Uncle Bubba's? A. I believe there was some at -- when we first opened up, I believe there was. Q. Okay. I was looking -A. But it's not going to be on here, because that's -- the checks between those two, and it probably was -- at the beginning I did not -- I was looking at the transactions going from PDE, Lady & Sons and Uncle Bubba's. I was not looking at money going between Bubba into there. But there was some at the beginning. He did put money into the company. Q. Okay. There's a column, loan to Uncle Bubba's. A. Yes. Q. And the first item is loan until Bubba Q. Okay. So was he selling a house or buying a house? A. Buying a house. Q. Okay. A. He didn't sell -- he had to sell one and then buy another. Q. I see. A. A bridge loan I think this might have been. Q. Okay. Now, there's -- then there's a column -- is Bubba Hiers' house owned by Uncle Bubba's, Incorporated? A. No. Q. There's a column here for show items and facility rental. A. Yes. Q. What's that for? A. Well, we were filming at one time Paula's parties at the restaurant. And when we were filming Paula's parties, that was the studio. So the Food Network was giving us $4,000 per show to film, so the money was going to Paula Deen Enterprises, and then Paula Deen Enterprises was giving that money to Uncle Bubba's for the use of their facilities. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 closes. What does that mean? It's a hundred thousand dollars. A. I do not know. My imagination goes into it, but I don't want to speculate. I'm sorry. Q. Give me your best shot. A. I'll give you my best shot. MR. WITHERS: Don't guess. MR. FRANKLIN: He's not going to guess. MR. WITHERS: If you know, say you know. THE WITNESS: I mean, if you want me to -MR. FRANKLIN: No. We don't want you to. THE WITNESS: I can research it and let you know later. MR. FRANKLIN: You keep quiet. Just answer his questions and listen to what we say. MR. BILLIPS: This is what he's here for as a 30(b)(6) deponent is to give his best information. THE WITNESS: I do not know. BY MR. BILLIPS: Q. Was Uncle Bubba's closing or anticipated to close on some real property at some point? A. Maybe his personal house. Q. Okay. So the Food Network -- what was the Food Network paying for? Were they just paying for the facility or were they paying for license -- for Paula Deen to -- strike. Let me back up. What kind of parties? A. It's a show. Q. Okay. A. It's a TV show. Q. All right. So the Food Network was paying $4,000 per episode to Paula Deen Enterprises for the show, right? A. Yes. Q. Okay. And Paula Deen Enterprises was then turning around and transferring the full amount of the payment for the show to Uncle Bubba's under the guise of facility rental, correct? A. Under the guise or that was -- it was for the rent of the building. Q. Right. But Paula Deen Enterprises because it was paying so much to Uncle Bubba's wasn't making anything from those shows, if I'm -A. Yes, it was. Q. What was it making? A. She receives -- the money that she Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 18 of 45 17 (Pages 62 to 65) Page 62 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 64 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 received came in one lump sum per month. That lump sum was for the use of the facilities and also for her services. So they never separate it. They never gave us one check for rent and one check for services. They combine it as one check. And it was spread over the whole year on an equal basis. So it's not like we can pull out that money at that one point. So when they gave money to us for the show, we gave the money over to Uncle Bubba's for the use of the facilities. Q. Okay. So all of the money received from the Food Network for those parties went to Uncle Bubba's for facility rental? A. For the rent, yes. Q. Okay. The contract between -- the contract with Food Network was between Paula Deen Enterprises and the Food Network, correct? A. Yes. Q. So Paula Deen Enterprises did not make any profit at all from that show because they paid all the money to Uncle Bubba's as rent? A. No. She made her money for her services. Q. Okay. But I'm talking net. All of the money she made for her services -- MR. BILLIPS: Paula Deen Enterprises. THE WITNESS: All right. Let's assume -- and I can't remember the exact figure for that one year. Assume that she got paid $1.2 million for her services and for facility rentals, whether it's going to be at that place or at her house at that time. So she's getting paid for it. Part of that money was for her services and part of it was for rent. They stipulated how much they're paying her per item in the contract. So we just read the contract and took that money and gave it to Uncle Bubba's -MR. BILLIPS: Okay. THE WITNESS: -- by doing that. BY MR. BILLIPS: Q. I see. So even though it wasn't specified in the checks, the contract did specify how much was being paid for the facility rental? A. Yes. Q. Okay. And all of that money was transferred -- was paid to Uncle Bubba's because that's where the facility -- that was the facility? A. That's where it was used. Q. I understand now. Page 63 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 65 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. All right. I think we've got semantic differences. All the money that she received for the rent of the facility for the studio, that went straight over to Uncle Bubba's. So you're right. She did not -- the net was no effect to Paula Deen Enterprises. Q. Okay. That's what I'm saying. A. Okay. Semantic differences. Q. All right. And she -- she did not receive money separately for her services, she received a single check for facility rental and services, correct? A. Yes. Q. And Paula Deen Enterprises paid the entire amount of that payment for services and facility rental to Uncle Bubba's as facility rental, correct? A. No. No. Q. Okay. That's where we're -- that's where we're -A. No. Q. How much was she paid total for services and facility rental? MR. WITHERS: Well, now when you're talking about she -- A. Okay. Q. Okay. Let's see. What are the sales items? What sales? And please just generally describe, not each of them. A. Well, that's where we bought -- we had dinner there. Sometimes either our guests, some of our partners, or their personal or for Paula personally. As the corporation or Paula personally. We've got to keep it proper. Q. Okay. For example, like here's one that's event reimbursement. Sarah engagement party. Who is Sarah? A. Sarah is one of our staff members. What day are you looking at? Q. I think it's in 2012. A. Okay. Thank you. Q. She's a Paula Deen Enterprises staff member? A. Yes, she is. Q. Okay. A. Yes. Uncle Bubba's must have provided the food for her engagement party. Q. Okay. And we're looking at the first -on Exhibit 22, we're looking at the first page of payments from PDE to Uncle Bubba's; is that right? Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 19 of 45 18 (Pages 66 to 69) Page 66 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 68 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. I'm looking at -- what's the first number at the top of the page? Q. 153884. A. Okay. We're on the same page. Very good. Q. Okay. There's an item for cooking school. What's the cooking school? A. The cooking school, we used to have a -Paula used to do a -- I'm going to try to get this as easy as possible. She used to have a show out there where people paid $250 per person to come watch her cook. She gave demonstrations and also to answer question answers and get a chance to be one-on-one kind of with Paula with about 40 people in the same room. And so that's where what happened is the money's coming in, Uncle Bubba's provided the services for that. They provided the facilities, provided the food, provided the labor. So what we're doing is paying for the cooking school reimbursements on that. Q. Okay. All right. On the next page, there's a -- an item called contribution to Uncle Bubba, not loan, for $75,000 that is -- the memo says, paid gift shop bills. have to do for the other side, too. This way if I ever needed to find out what happened, I can go right back and find it. It's also on my computer versus being in somebody's personal checking account. Q. Right. Now, the next item under the contribution to Uncle Bubba's not loan, the memo line says, Uncle Bubba loan. A. Yes. But we didn't treat it as a loan. We put it as a contribution. Q. Why? A. I can't recall at that time. We just treated contributions as a loan. It was a transfer going over there, but I can't recall why we did it that way. Q. The next item was -- well, at the same time period, was -- at the same time period when Paula Deen was making these contributions that are phrased as capital contributions, was Bubba Hiers also making capital contributions in the same way? A. No. Q. Was his share percentage diminishing? A. No. Q. Was there -- was an obligation -- were there any obligations put on the books for him to Page 67 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Yes. That's where we put money into Uncle Bubba's and then they wrote a check out back to pay for the inventory. Q. Okay. So Paula Deen Enterprises -A. Paula put the money into Uncle Bubba's and then Uncle Bubba's wrote a check out to pay for merchandise. Q. Okay. How can I tell that this was actually Paula Deen that did it as opposed to Paula Deen Enterprises? A. Because it's always Paula putting money into it. Q. Okay. A. It's treated as a distribution coming out of PDE going into Uncle Bubba's. So it's going to be Paula putting her money in, because it's not treated as income -- I mean, as an expense to PDE. So it's as if she took money out of her own pocket to do it. Q. And the only reason that you do it that way is for the convenience of accounting for it because you have her -- you don't have her personal checking account? A. It gives me a way of tracking it. Because remember, what you do for one side you make equal capital contributions? A. No. Q. Okay. He is a 50 percent owner, correct? A. Yes. Q. Then there's another capital -- phrased as a capital contribution, not loan, is identified in the memo line as a loan to cover bills. A. Yes. Q. Okay. The next item is UBOHAP to PDO. Could you translate that for me? A. Sure. Uncle Bubba's Oyster House accounts payable to Paula Deen Online. That's where we're paying -- because at that time, remember at the beginning, the inventory was bought through The Lady Enterprises. Then we formed a separate company to actually handle the warehouse facility, and that Paula Deen Online handled that. Q. Okay. And this was in July of 2008? A. July '08. Yes, sir. Q. Okay. Down at the -- okay. Over on the right we see discount reimbursements. Are those the reimbursements we talked about earlier? A. Yes. It's for the promotion discounts. Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 20 of 45 19 (Pages 70 to 73) Page 70 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 72 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. And this is all -- were these payments actually from Paula Deen Enterprises as opposed to being from Paula Deen? A. No. Those were actually from Paula Deen Enterprises. And they were treated -- they were treated as an expense on Paula Deen Enterprises. And they were treated as income over on Uncle Bubba's side. Q. Okay. And what economic value to Paula Deen Enterprises was there for paying for discounts for Uncle Bubba's? A. Little. Q. Was there any that you can think of? A. No. Q. The cost of this discount program in total to Paula Deen Enterprises is in excess of $80,000. Does that sound about right? A. I haven't added them up yet, but I could assume so. Q. Okay. And this is -- the time frame when this is occurring is between August of 2009 -- let's see if I can pick up the first one. I'm sorry. February of -- January of 2009 through -A. 2011. Bubba's is borrowing money from Paula Deen Enterprises, it is paying substantial distributions to Mr. Hiers; is that correct? A. And if you look at it, I don't agree with that one. Q. Okay. Is it not correct? A. Because at this point when we took the money out in December -- December of '11 through January and February of 2012, no, there was not substantial distributions taken out to Uncle Bubba's. I mean to Bubba. I don't have the numbers in front of us, but there was no money -- we did not put money in to take money out to Uncle Bubba -- to Bubba I mean to say. If there would have been, there would have been also a corresponding check to Paula, too. Q. Okay. At the time that Ms. Deen is making capital contributions to Uncle Bubba's, why wasn't Mr. Hiers also making similar contributions since he is a 50 percent shareholder? A. He might not have had as much money. Q. Okay. Well, wouldn't that ordinarily be reflected in a -- an increase of her ownership of the company? Page 71 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 73 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. -- through April of 2011? A. Yes. Q. There was -- I haven't added it up either, but just eyeballing it at least 80 to $90,000? A. We can use that as the number. Q. Okay. On the second payment or the second page of these payments from Paula Deen Enterprises to Uncle Bubba, down at the bottom there are a number of loans. A. And those are loans. Q. Okay. A. Yes. Q. The memo, loan to Uncle Bubba cover bills, is the same as the memo, loan to cover bills, at the top of the same page where it's treated as a capital -- as a contribution and not a loan; is that right? A. In different -- different years we'd handle it differently. Q. Okay. Why did you decide to start handling this -- these as loans as opposed to capital contributions? A. Because we wanted to get repaid. Q. Okay. And at the same time that Uncle A. No. She just increased her basis in her stock, yes, but it did not change the stock ownership. Q. Okay. All right. Item 13, transfer of liabilities. On the last page, you indicate that at one time we had three loans. Two loans were in Brother and Sister Enterprises, LLC's name. They were for building acquisition and improvements. A. Yes. Q. Okay. Does Brother and Sister Enterprises, LLC, own the buildings where the restaurants are? A. Brother and Sister Enterprises, LLC, does own the property that it's on, yes. Q. Okay. And Paula Deen -- or excuse me. Lady & Sons and Uncle Bubba's rent the property from Brother and Sister Enterprises? A. No. Uncle Bubba's rents the property from Brother and Sister. Q. Okay. Does Lady & Sons -- does Brother and Sister Enterprises own the property where Lady & Sons is? A. No, sir. Q. Okay. A. No. It's separate. Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 21 of 45 20 (Pages 74 to 77) Page 74 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 76 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. Who owns that property? A. Paula does. Q. She does. She owns that personally? A. Yes. Q. Okay. And then the -- the other loan was a line of credit. And it says the three loans were consolidated into one loan in April of 2007. A. Yes. Q. Into which company owes that loan? A. Brother and Sister. Q. Okay. And was Brother and Sister Enterprises -A. No. It's Brother and Sister, LLC, and Brother and Sister Enterprises, LLC. Q. Right. Was Brother and Sister Enterprises, LLC, compensated for taking over the line of credit? How did that work? A. No. It was not compensated. Q. Was there an outstanding obligation on the line of credit? A. 390,000. Yes. Q. Okay. And so Brother and Sister Enterprises just basically assumed that liability in the loan consolidation? A. Yes. If I remember right, the line of Bubba. THE WITNESS: This is what the court gets. This is the one you mark. Yours is over there. MR. BILLIPS: Okeydokey. THE WITNESS: This is mine. MR. BILLIPS: Let's mark this one. (Exhibit 24 marked for identification.) BY MR. BILLIPS: Q. 24 is a -- a document you prepared that has on the upper right-hand corner PDE, and these -- could you tell me what this document reflects? A. It's the same items that we just went through Uncle Bubba's. And so for the most part, it's the transactions between Paula Deen Enterprises and Uncle Bubba's, Paula Deen Enterprises and Lady & Sons. And also money from Uncle Bubba's to Lady & Sons, which is going to be pretty much the same report as we just went over in length. Q. Okay. And does this also reflect payments from Paula Deen Enterprises to Paula Deen? A. No. Page 75 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 77 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 credit was also secured by the property anyway, so we just made it official just to -- something that was already -- I mean, the lien was already against it anyway, so we just rolled it over into the same loan. Q. Okay. And did that relieve -- I'm sorry. Who owed the line of credit? A. Uncle Bubba's, Inc. -Q. Okay. A. -- owed the bank for the line of credit. Q. And was Uncle Bubba, Inc., relieved of the obligation for the line of credit when -A. Yes. Q. -- the loan was consolidated? A. Yes. Q. Okay. Let's see. The next one. And PDE? A. Okay. Okay. Q. Would you hand it -- I know. I need to have the court reporter mark it. A. That's hers. That's yours right there. This is mine. You have the court's right there. Yours is over there. Q. Okay. MR. FRANKLIN: Get your act together, Q. Okay. Because the -- the description of the matter of examination here was a description of transfers of assets between the corporation and any other defendant. A. I have to apologize then, because I only looked at going from corporation to corporation to corporation. Q. Okay. And so you're not prepared here today to testify to transfers to the individual defendants; is that correct? A. No, I'm not. But we can -- the money going from Uncle Bubba's to Paula, I know what that is, because it's listed on the thing. And I assume that whatever I have on one it's going to be the same thing going to Bubba at the same time. The only thing we're missing is the money going from PDE to Paula personally. Q. Right. Which is a significant amount of money. A. Yeah. Q. All right. What I would like to do since that's -- we will be taking Mr. Schumacher's deposition in his individual capacity. Would you have any objection to -MR. FRANKLIN: No. Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 22 of 45 21 (Pages 78 to 81) Page 78 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 80 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. BILLIPS: -- deferring this? MR. FRANKLIN: That's fine. MR. BILLIPS: And he can complete his preparation. MR. FRANKLIN: He may. MR. BILLIPS: Okay. Then we will just move on from 12 and 13 altogether until we can -until he can get prepared to deal with the transfers to individuals. MR. FRANKLIN: That works. MR. BILLIPS: Okay. BY MR. BILLIPS: Q. All right. Now, there's some cleanup work on some other -- go ahead. A. Are we finished with 12 and 13? Q. Yes. We are until you come back for your individual deposition, and we will pick them up and finish them to include the individual defendants. A. I just want to make sure we all get our papers back. You've got my paper and I want to give 24 back to -Q. We'll get that all straightened out. MR. WITHERS: We'll get you papers. We've got lots of copies. A. Okay. Q. The first one that I'll get into is the circumstances under which you were informed, you, the companies, that Dustin Walls had used racial slurs. I think that one was fully covered. Well, no, I'm not sure it was. I remember what issue was left outstanding. You were the individual who investigated the allegation that Dustin Walls had allegedly used racial slurs; is that correct? A. Yes. Q. And did you during the course of your investigation find that Dustin Walls lied to you? A. That word lie, even when I talked to him about it afterwards, he still said that he said monkeying around. Monkeying instead of monkey. Q. Uh-huh. A. So I -- he still has a contention that he never said monkey, but I believe he did say monkey. (Exhibit 25 marked for identification.) BY MR. BILLIPS: Q. Let me show you what's been marked as Exhibit 25. Is Exhibit 25 an email that you sent to -- actually, I believe it's a response from Page 79 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 81 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. FRANKLIN: Make a memo of it. We'll get your papers. MR. WITHERS: Just to clarify on reconvening, Mr. Schumacher, did you say that you do have the information regarding the personal going to or from the individual Mr. Hiers? THE WITNESS: I would have -- yeah. My computer has all that. MR. WITHERS: No. I mean is that reflected in any of the documents today or is that going to be a different -THE WITNESS: No. The individual line items are not here. That would have to be on a separate item. MR. WITHERS: All right. THE WITNESS: I know the amounts are correct. MR. WITHERS: No worries. I'm sorry. I didn't mean to -MR. BILLIPS: That's okay. BY MR. BILLIPS: Q. All right. Now, there were some questions that we wanted to pick up here that other witnesses were not able to answer completely. Tanya to an email that you sent her in July of 2010; is that correct? And it incorporates your email to her. A. Yes. Yes. It's from her -- it's from her to me. Q. Okay. And there is an item under Dustin where it says, Dustin, yes, I did write him up for two things, the incident and his manager style. Initially I had spoken to Jamie and Bobby, and when we met with Dustin, we were lied to. Is that your writing? A. That's my writing. Q. Okay. So it was your conclusion at the time that not only that Dustin had engaged in the conduct in question, the abusive management style towards subordinate employees, the racial slur calling African-American employees monkeys, but that he also lied to you about it, correct? A. Yes. Q. Okay. And you also came to the conclusion that Dustin could not be terminated because Paula herself would keep him. In other words, that Paula Deen would overrule any termination decision. A. I'm trying to read this thing at the Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 23 of 45 22 (Pages 82 to 85) Page 82 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 84 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 same time as listening. Can I read it first? Q. Sure. Please. A. I'm sorry. See, those -- that part right there looks like this part says your talk with him two weeks ago caused concern. That looks like it's coming from Tanya, not from me. See, it says, "Thanks for the feedback, T." That does not sound like mine. Even the way it was written does not sound like my writing, the way I write. It's not my style. Q. That whole paragraph? A. That whole paragraph looks to me like it's coming from Tanya, because I never typed 17:19 provide negative feedback. I didn't do that. That was her to do that. And it looks to me like that's from her, not from me. MR. FRANKLIN: It's signed by her. THE WITNESS: That's what I see, but I'm just wondering how, because it's on my email. And it's my name at the bottom. I don't know how that happened unless there's something -- because when I look at the top, it says from Tanya to me. But there's nothing in that section or anything. But that's not my -- that's not my style of writing anyway. Q. Okay. And I don't believe that that's legal advice, even though it's coming from an attorney. MR. FRANKLIN: What do you call it? MR. BILLIPS: I call it human resources advice or a suggestion about interpersonal relationships between individuals by somebody who knows them, who's known them a while. BY MR. BILLIPS: Q. Let's see. Okay. So it was your conclusion that Dustin had lied to you? That part is yours? A. I did write that. Q. Okay. In your communications or in -during the course of this HR audit, for want of a better word, that Mackworks was doing, Mackworks interviewed a number of employees of the company, correct? A. Yes. Q. And they did promise the employees confidentiality in exchange for their interviews, correct? A. I don't know what they promised them. MR. BILLIPS: Okay. Let's mark this. (Exhibit 26 marked for identification.) Page 83 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 85 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY MR. BILLIPS: Q. Okay. The part where it says, "By the way, I would not recommend firing Dustin without some coaching and detailed remediation plan and a chance to correct behavior over a limited time," that's her? A. Yes. Q. "Then the ball is in his court and there are no surprises," that's her? A. Yes. Q. "But clearly, even after your talk with him prior to our coming, situation is not resolved." Is that her? A. Yes. Q. "Jim Gerard informed me today there's no use in attempting to let Dustin go as Paula herself would keep him." MR. FRANKLIN: And I'll object to that as attorney-client privilege. It should have been clawed back. It wasn't in our production of 300,000 documents. BY MR. BILLIPS: Q. I'm sorry. Was that something that she was saying to you or that you were saying to her? A. She was saying that, not me. BY MR. BILLIPS: Q. Is Exhibit 26 an email from
[email protected] to you responding to an email from you? In other words, what they did was you were asking some questions and they interwove their responses into the body of your email? A. I'm going to ask you to repeat that question. I'm sorry. I was trying to familiarize myself while you were talking with what this is. MR. FRANKLIN: Why don't you let him read it first. MR. BILLIPS: Take a look at it first. MR. WITHERS: While he's reading, can we take two minutes? MR. BILLIPS: Sure. (Recess from 3:19 p.m. to 3:29 p.m.) THE WITNESS: This is not my email. I mean, I can see this -- what happened is, again -MR. FRANKLIN: You're talking about Exhibit 26? THE WITNESS: 26. The prior -- the part from August 19th all the way down to "at least you know I have a problem, will I be getting more details," that is written from Tanya to me. That's not me. If I remember right, I had the Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 24 of 45 23 (Pages 86 to 89) Page 86 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 88 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 first sentence -- I think the first sentence and then maybe -- I don't know what happened on this one, because that's not from me. That's from her going to me. Because I think I asked the questions, how do people feel about Bubba? How is Lisa? Is she a bad manager and leader? I think I asked those questions of her. I think these are her replies to me. BY MR. BILLIPS: Q. Right. That's what I -- that's what I was trying to say. A. It says from Karl Schumacher to Tanya. Q. Right. You sent her an email and then she interwove her response into the body of your email. In other words, you asked a question, and instead of setting it out again in a separate email, she just -A. Okay. Q. -- wrote the answers directly after the questions. A. All right. Q. Okay. A. Because obviously this is not my writing. Q. All right. And the question I had asked MR. FRANKLIN: Do you want to let him read it? MR. BILLIPS: You're right. Yeah. BY MR. BILLIPS: Q. Okay. Tell me when you've finished. A. I'm finished with most of it. Yes. Q. Okay. Exhibit 27 is an email from you to Mackworks, David Beroset, Theresa at PaulaDeen.com dated October 27, 2010, correct? A. Yes, sir. Q. And the -- there's a paragraph in the middle where you say, "Lisa Jackson, I kind of can understand you not telling us what your discussions were with her when she was an employee. Want to keep confidentiality. But she's no longer an employee and is looking to make herself rich. We are trying to prepare our case to protect ourselves. I feel that you can give us details about why she cried for over an hour, what her concerns were, how she feels that she was alone against all of us, how we can make it better, et cetera." Okay. So at the time you sent this email, is that pretty much all you knew about what she had said to or about her interview with Page 87 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 89 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you before I marked this as an exhibit to the deposition was were they promised -- were the employees promised confidentially -confidentiality? A. I do not know what she promised them. Q. And do you see at the bottom of Exhibit 26 where you asked the question apparently, "Will I be getting more details about the interviews?" And her answer was, "No. The trends are what is important, not who said what exactly. We promised them confidentiality in exchange for telling us their honest opinion without fear of retribution." Do you see that? A. Yes. Q. Okay. And subsequently you -- after Ms. Jackson resigned and filed a charge of discrimination, you got back in touch with Mackworks to again try to find out what she told them during her interview; is that correct? A. I assume that's what you have an email saying. Q. Okay. Do you have a recollection of doing that? A. No, I don't. (Exhibit 27 marked for identification.) Mackworks? A. Yes. Q. Okay. And you were asking Mackworks to essentially ignore the promise of confidentiality they had made to her and inform you what Ms. Jackson had said to Mackworks, correct? A. Yes. Q. Did they do so? A. If I look down at the bottom of the page, it looks probably like some of the comments; that she probably did give us some information, but I don't see really anything new to go off of. Q. Okay. Could you -- I'm not sure I can read your writing. A. I'm having a hard time, too, so we'll try. Q. Let's start at the top and try to read into the record all of the handwriting. A. At the very top? Q. At the very top. A. Okay. It says -- I don't know what that 16/29/10 is, but 8:30. But it says, "Focus on meeting for two weeks. Onboard in Atlanta. Job done. Dave next week Thursday, Friday in Savannah. Introduce. Stay and do" -- I think Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 25 of 45 24 (Pages 90 to 93) Page 90 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 92 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that's all dealing with Jody coming onboard, because it's right next to Jody. Jody's our new -- Jody at that time was just hired as our HR director. It says something about Thursday and Friday in Savannah. Monday, Tuesday transfer data and duties. And then that deals with what Jody's going to be doing for us when he first comes onboard. It looks to me like he's full time on Monday, November 15th, is what it's saying there at the top. Q. Okay. A. Do you want to go all the way down to the bottom for training? That says, "Manual acknowledgment form signed. Managers good to meet each other. Conversation. Mostly listening. General." This is what I think we were talking about -- some of the stuff she was talking about with Lisa. "Conversation. Mostly listening. General. Relationship with Bubba. Picked on, harassed, inappropriate behavior. Cash reconcile sheet, 20 minutes." Mention -- I can't see what it says. I think it says code strip club or CC strip club. I can't say what that is because it's a bad copy. Jim. Q. Okay. MR. FRANKLIN: Don't guess if you don't know the answer. THE WITNESS: I don't. BY MR. BILLIPS: Q. Is this a -- these are your notes. Are these the notes of what she was telling you about her conversation with Ms. Jackson? A. Yes. Q. Okay. And did Ms. Jackson -- Ms. Jackson would not have been telling Tanya that Tanya called Jim, right? A. That I'm assuming you're right. Q. Okay. And was there a time that you're aware of that Ms. Jackson had called Jim Gerard with regard to a complaint of some sort or an issue of some sort that she might have been talking to Tanya about? A. I'm not aware of that where Lisa called Jim about something regarding a conversation with Tanya. I'm not aware of that. Q. Okay. Are you aware of her calling Jim Gerard with something related to Bubba? A. I heard she has. Page 91 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 93 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Credit card? A. I think -- I can't tell what it is. Q. Okay. A. Smoke on back deck. Scared of one -scared of one. Lame settlement but still talking to managers. Gather info to sue company. But family committed. What -Q. Works? A. -- works and what doesn't. No items to follow up. Not there to advise. Tanya called Jim. It was not resolved. Not worried. Q. Okay. Is that -- is that -- you said Tanya called Jim. Is that time called Jim? A. I think Tanya. Q. Was not resolved? A. I can't see what that one part is above that print message. I can't see what that reads. Q. Okay. Was there a time that you were aware of that Ms. Jackson had called Jim Gerard to address problems with Bubba Hiers? A. That's a -- is there -- am I aware if she called Jim Gerard? No. Q. Okay. Was there a -- had she ever called Jim Gerard? A. I think this was saying Tanya called Q. From who? A. I think probably from her. Q. Okay. So this was not new information to you? A. Really nothing on there is -- I think that was Tanya calling Jim but, no, that was really new information, no. Q. And what was it -- if it was -- what was it that she called Jim about? A. Tanya? I don't know. Q. No. No. No. Ms. Jackson. A. I don't know about that. You're talking about these notes or are we changing conversations? Q. Well, I'm not sure. But you indicated that Ms. Jackson told you she had called Jim Gerard about Bubba, that she had told you that. A. I don't recall the exact reasons why, but -Q. Give me your best recollection. A. HR issues. I'm not sure. Human resources issues. Q. Discrimination, inappropriate comments? A. I'm not sure. Q. Things of that sort? Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 26 of 45 25 (Pages 94 to 97) Page 94 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 96 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. I can't say for sure. Q. Why not? A. Because I don't know. I'm supposed to say what I know. Q. What did she say she called him about? A. I don't know. MR. FRANKLIN: Well, we don't want you to make a wild guess. MR. BILLIPS: We don't want you to make a wild guess. THE WITNESS: I'm not going to make a wild guess. BY MR. BILLIPS: Q. All right. At the time that you were writing this, you had received a copy of Ms. Jackson's EEOC charge, correct? A. Yes. Q. Okay. And the EEOC charge made allegations that Mr. Hiers had engaged in racially harassing and discriminatory conduct, correct? A. That was in the EEOC, yes. Q. All right. Is that something that you were aware of Ms. Jackson complaining about previously? A. Repeat the question. I want to make A. Not that I recall. Q. Did you communicate it to Paula Deen? A. No. Q. Okay. And this was while she was an employee, correct? A. Yes. Q. And when did this occur? A. I don't recall, and I can't give you a date. Q. Can you give me a month or year? A. Not specifically, but I know -- I don't know. Q. Okay. Have you kept -- have you kept the fact of her complaint secret from representatives of the defendants in this case? A. No. Q. So the defendants, Ms. Deen and Mr. Hiers, are aware that she had come to you prior to filing the EEOC charge? A. Okay. Q. Had you made them aware since she filed the EEOC charge that she had complained prior to filing the EEOC charge -A. No. Q. -- about Mr. Hiers making racist Page 95 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 97 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sure I answer it correctly. Q. Were you aware prior to receiving the EEOC charge that Ms. Jackson had previously expressed concerns about Mr. Hiers engaging in racially harassing or discriminatory conduct? A. I cannot recall that exact complaint, but I remember she said some words that he had said that was probably not appropriate. Q. What words? A. She said that he used the N word. Q. To refer to black employees? A. Yes. Q. Okay. And when did that occur? A. I don't recall the exact timing. I've gone through a lot -- I've gone through a lot of times in my brain. Q. Okay. Did you communicate that complaint to anybody? A. Not that I recall. Q. Did you tell Jim Gerard about it? A. Not that I recall. Q. Did you tell her to call Jim Gerard about it? A. No. Q. Did she call Paula Deen about it? comments? A. No. Q. Have you told anybody about that prior to right now today? A. I think it was -- I can't recall. Q. You can't recall telling anyone at all before telling me right now here today in this deposition? A. I think I may have mentioned it to the attorneys. MR. FRANKLIN: I'm going to object to anything he may or may not have told us. BY MR. BILLIPS: Q. When did you first reveal that she had in fact complained about Mr. Hiers making racist comments -MR. FRANKLIN: Object to it. MR. BILLIPS: -- to anyone? MR. FRANKLIN: Object to it to the extent it would invade the attorney-client privilege if, in fact, he made such a statement. MR. BILLIPS: You know, we've had 30(b)(6) witnesses put up here to provide testimony that if this witness had informed counsel of those complaints was nothing short of Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 27 of 45 26 (Pages 98 to 101) Page 98 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 an effort to obstruct justice. MR. FRANKLIN: Say that again. MR. BILLIPS: When you prepare a 30(b)(6) witness to say something that you know is not true -MR. FRANKLIN: Are you accusing us of asking him to say something that's not true? Because if you are, you are going to have a big problem. MR. BILLIPS: You're objecting and preventing the witness from testifying whether he had told you. I don't know whether he had told you before you prepared the witness. MR. FRANKLIN: I'm objecting. MR. BILLIPS: Okay. I'm inquiring of the witness whether, in fact, it is the case that counsel for the defendants was aware that those complaints had been made before the EEOC charge, because a 30(b)(6) witness testified that no such complaints had been made. MR. FRANKLIN: I'm objecting. And I'm not saying he told us that, but I'm just not waiving any attorney-client privilege. BY MR. BILLIPS: Q. Okay. Did you tell counsel for the MR. FRANKLIN: He is not going to testify to anything he told counsel. MR. BILLIPS: Are you instructing him not to answer? MR. FRANKLIN: I am. MR. BILLIPS: Okay. Then we'll move on. MR. FRANKLIN: Good. BY MR. BILLIPS: Q. Now, then give me your best recollection of everything that Ms. Jackson told you about Mr. Hiers engaging in racial -- racially discriminatory or harassing remarks. A. Repeat the question one more time. Q. Tell me your best recollection of everything Ms. Jackson told you concerning racially discriminatory or harassing remarks by Mr. Hiers. A. The only time I can remember it happening was one time when he was angry at some of the staff and he just used that word. And it was not used with them, it was just used in a general statement. Q. Did you hear him do it? A. No. She told me. Q. Okay. And when did she tell you about Page 99 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 101 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 defendants about Ms. Jackson's complaint prior to yesterday? MR. WITHERS: Well, objection. You cannot ask a represented party what they talked with counsel about. That's, you know, clearly protected by the attorney-client privilege. You cannot do that. MR. BILLIPS: You know, there are exceptions, and I think some of them may apply here. MR. FRANKLIN: Is this the Billips exception? MR. BILLIPS: No. But the crime fraud exception comes to mind. MR. FRANKLIN: Are you accusing us of crime fraud? MR. BILLIPS: I'm accusing you of nothing. I'm asking the witness whether he provided that information to you. Because if in fact he provided that information to you and you prepared 30(b)(6) witnesses to come up here and give false testimony about the nature of her complaints prior to filing her EEOC charge, then we may be having that conversation. At this point, I'm not having that conversation with you. that? A. I do not remember the time frame. Q. Okay. What, if anything, did you do about it? A. I did nothing about it. Q. Okay. Did you write any memos to your files concerning the fact of that communication? A. No, I did not. Q. Okay. Did you communicate it further to anyone else within the company? A. No. Q. All right. Was she asking you to do something about it? A. No. Q. Was she -- then why was she telling you? A. I think she was having a conversation. Q. Okay. And did she -- she had reported to you on several occasions difficulties in dealing with Mr. Hiers, correct? A. Yes. Q. Okay. And she had asked that you assist her in getting him under control, correct? A. She wanted some help. Q. Okay. The complaints that she made to you included that he was coming to work impaired, Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 28 of 45 27 (Pages 102 to 105) Page 102 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 104 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 correct? A. She said he would come to work -Q. Drunk? A. -- after drinking, yes. Q. Okay. And that he was -- and she asked you for assistance in developing HR policies, getting an HR director, having some processes put into place that would prevent that kind of conduct from occurring? A. We, the PDE side, started looking for the HR director and the HR consultants from our side. Q. Okay. A. She did not ask me for that. We started doing that on our own. Q. All right. Did she also come to you about Mr. Hiers looking at pornography on the computer? A. Had she mentioned it to me, yes. Q. Okay. And did she ask you for assistance? A. I don't remember her asking for assistance, but at that time I went and called and got the block put on the computer in the office. Q. Okay. What did she tell you about the racial -- racially discriminatory conduct, was that before or after the Dustin Walls incident where he referred to African-Americans as monkeys? A. I can't recall. Q. You don't remember the order of events? A. No, I do not. Q. And you can't recall specifically everything she told you either; is that right? A. No. Q. And you wrote down nothing about this and you told no one? A. No. I did not write anything down and I did not tell anybody about that. Q. Okay. And subject to the objection by counsel about privileged communications, did she also communicate with you about an alleged violent incident involving Mr. Hiers? A. She mentioned an incident that happened, yes. Q. Okay. And did you inquire of any of the employees who were present at the time what had occurred? A. I did. Q. Okay. Other than -- well, who did you talk to? Page 103 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 105 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 pornography? A. She said he was looking at it. Q. Looking at it in front of her? A. I'm not even sure -- she never said that. I think she said he was looking at it. Plus I'm not sure -- she also mentioned that somebody else in the kitchen staff was probably looking at the same computer, too. Q. Okay. A. So that's why we went and put a block on the computer, because sometimes it might not have been him. We didn't know for sure it was always him. Q. Okay. Did you question him about it? A. No. We put a block on the computer. I thought that resolved the situation. Q. Okay. Was she also complaining about Mr. Hiers engaging in sexually demeaning statements and comments? A. No. Q. Okay. Did she complain to you about a pay disparity that she believed was based on gender? A. Oh, she complained about that. Q. Okay. And the racial harassment or the A. I talked to the person supposedly that he shook. She told me he shook -- that Bubba shook William Frazier, Big Will. I went -- after talking to Bubba about it, Bubba told me what his side of the story was. Bubba stayed in the office, I went to the kitchen and talked to Big Will just one-on-one. And I even emphasized to him again, are you sure that's what happened? And he said, yes, it was. And his story was in contradiction to what Lisa had said, which was what Bubba had said. Q. Okay. Have you spoken to any employees about that since then? A. Any employees, no. Q. Okay. Have you spoken to any -- any witnesses to the event since then? A. No. Just to him. Q. Okay. Are you aware that there were other witnesses who saw the event in question? A. I heard there was like one or two other people. Q. Okay. And have you -A. I did not get their names, so I did not talk to them. Q. Okay. Does Big Will still work for the Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 29 of 45 28 (Pages 106 to 109) Page 106 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 108 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 company? A. Yes. Q. Why didn't you do anything about Mr. Hiers using a racial slur about a subordinate employee? A. It was not referred to anyone specific, so... Q. What did he say? A. Well, he said I never heard him say it. She said that he had used the "N" word talking about the staff. So if he said something among the management, I'm not going to go out there. I did not investigate that. Q. Okay. If he's -- he was talking to the managers in the restaurant and in some context used the word nigger? A. No. My understanding is he was talking to Lisa and used that word. Q. Okay. A. And between him and her, I thought it was just between those two people. Q. Okay. Well -A. So it's not -- it's not an issue going away from the manager. She's just telling me what he had said to her. Q. Is Mr. Hiers -- well, at some point Mr. Hiers was directed not to interfere with the operation of the restaurant; is that correct? A. Not -- he was still in charge of the restaurant. Q. Okay. Was he ever told not to interfere with the operation of the restaurant, not to come to work impaired? MR. FRANKLIN: That's a compound question. Why don't you ask -BY MR. BILLIPS: Q. Okay. Sure. Was he told not to interfere with the operation of the restaurant? A. We had a conversation at one time for us to work better together to let Lisa act as the GM and for him to support her. Q. Okay. And was there anything that you or Paula Deen could have done to control the behavior of Mr. Hiers if you had found that such occurred? A. Could we have done anything? Q. Yeah. Did you have any -- anybody have any authority over him? A. We can go talk to him. Q. Go talk to him? Page 107 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 109 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. A. It's not like he went into the kitchen and used that word. Q. But he was talking about the employees? A. Just that one time. Yeah. Q. Okay. Which employee? A. I don't know. I don't know if it was specifically one or just in general. Q. Okay. And did you send it -- any emails to anybody about this? A. No. Q. Was one of your responsibilities at that time to receive complaints of harassment or discrimination? A. One of my duties, no. Q. Was it something that you actually did? A. If somebody made a complaint, I'd sometimes try to go out and follow it up. Q. Okay. Was there anybody -- I believe this is one of the questions that was left over from an earlier witness. Is there anyone at Uncle Bubba, Inc., that could effectuate disciplinary action against Mr. Hiers? A. Anyone at Uncle Bubba's, no. A. Consult him. Q. Okay. Of course Ms. Deen also had a great deal of financial control over Uncle Bubba's, Incorporated, correct? A. Yes. Q. She had loans through Paula Deen Enterprises presently in excess of $300,000 to Uncle Bubba's, correct? A. Yes. Q. And if Mr. Hiers refused to do what she said, she could call in those loans and shut the place down if she chose, correct? A. Yes. Q. Okay. So she at least did have on a practical level a great deal of control; is that right? A. Yes. Q. Okay. What is Captain Michael's? A. It's coffee. Q. It's what? A. It's a coffee. Captain Michael's Coffee. It's another company, too. Q. Is it a company owned by Ms. Deen? A. No. Q. Who owns it? Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 30 of 45 29 (Pages 110 to 113) Page 110 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Her husband. Q. Okay. A. Michael Gruber. Q. And was there money transferred from Captain Michael's to Paula Deen Enterprises for the purpose of making -- allowing Paula Deen Enterprises to meet its tax obligations in 2010? A. To meet its tax obligations or to reimburse Paula Deen Enterprises for paying a portion of the taxes? Q. Sure. Either way. A. Captain Michael's, or just Michael, essentially, put some money back into Paula Deen Enterprises for a portion of his profit from his company. Q. Okay. And does he own any portion of Paula Deen Enterprises? A. No, he does not. Q. What did he get? Did he get anything of economic value in exchange for that? MR. FRANKLIN: I object to the questions. I object to the questions about Captain Michael's. They're not a defendant in this case. You can answer. It's outside the scope Q. Okay. So did Ms. Deen take distributions in -- was it 2009 or 2010 that she took distributions of 3,961,429? A. I think 2010 she took less than -- that much less than 2009. Q. Okay. She took that much less than she had taken in 2009? A. That's what it says. Q. So her distributions in 2000 -- I see. In 2010 she took seven -- a little over seven and a half million. In 2009 she took a little -- is that right? A. No. I don't think so. Okay. That $7 million figure on A, that's how much the revenue is. Q. Okay. A. And then the amount on line C is how much less she took out of the company. Q. Okay. Well, how much did she -- can you tell from this how much she took out? A. No, I can't. Q. Because line B says the profit in 2009 was 7,597,688. A. Right. Q. And line -- Page 111 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 113 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 as I interpret any of these questions. THE WITNESS: We wrote one check for income taxes and it came from Paula Deen Enterprises. Captain Michael's instead of writing a separate check to pay the taxes, we wrote one check out of PDE and he just reimbursed PDE for his portion of the taxes. (Exhibit 28 marked for identification.) BY MR. BILLIPS: Q. I realize we're going to come back and complete this, but I want to get this in the record as well as go ahead and mark the other exhibit that you brought with you. In 2009, did Paula Deen individually take distributions from Paula Deen Enterprises in the amount of $3,961,429? A. I'm assuming if it's written down, yes. Q. Okay. I'm sorry. A. I'm sorry. I was trying to read this. MR. FRANKLIN: Yeah. Why don't you read it first. Don't assume anything. MR. BILLIPS: Yes, please. THE WITNESS: I see what the number is. Yes. BY MR. BILLIPS: A. No. The profit in 2009 (sic) is 4 million and then 2009 it was 7.5 million. Q. Right. A. Okay. Sorry. Q. 2010 it was 4.3 and change. 2009 it was 7.5 and change? A. Yes. Q. But this does not give you the information to show how much she took out in distributions? A. No, it does not. MR. BILLIPS: Okay. All right. Let's go ahead and mark this. (Exhibit 29 marked for identification.) MR. BILLIPS: All right. Just to identify for the record, Exhibit 29 is the -- it's the document that you prepared relating to transfers to and from Lady & Son Enterprises; is that right? THE WITNESS: Yes. MR. BILLIPS: Okay. As far as questions on that, we'll just pick those up at a later time. All right. Let me take a moment with my co-counsel and confer, and we'll see if maybe we're in a position to wrap up until we get back. Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 31 of 45 30 (Pages 114 to 117) Page 114 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 116 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. WITHERS: We're at least close? MR. BILLIPS: Yeah. (Recess from 4:10 p.m. to 4:16 p.m.) MR. BILLIPS: Okay. We are going to -I believe we've agreed to suspend items with regard to items 12 and 13. You have advised us that you are directing the witness not to answer any questions regarding 11. MR. FRANKLIN: Yes. MR. BILLIPS: We're going to suspend the deposition with regard to items 12 and 13 by agreement to resume at the same time as Mr. Schumacher's individual deposition so that he can gather information regarding the transfers of assets or liabilities to the individual defendants. MR. FRANKLIN: Yes. MR. BILLIPS: Okay. MR. FRANKLIN: And you can have -- how long is it you want, Wes, to answer the discovery? MR. WOOLF: Seven days is what I'm hoping. MR. FRANKLIN: That's fine. MR. WOOLF: Thank you. MR. FRANKLIN: You're welcome. ATTESTATION I, the undersigned, have read the foregoing transcript, and, with the exception of any corrections specified on the attached correction sheet, attest it constitutes a true and correct transcription of my testimony given at the time and place specified therein. (Signed):___________________ Karl Schumacher WITNESS:____________________ DATE:_______________________ Page 115 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 117 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. BILLIPS: And other than that then we can be finished with the 30(b)(6) deposition. (Signature reserved.) (Deposition concluded at 4:17 p.m.) ERRATA SHEET STATE OF GEORGIA ) ) COUNTY OF CHATHAM ) I wish to make the following changes for the following reasons: PAGE LINE ____ ____ CHANGE:________________________ REASON:________________________ ____ ____ CHANGE:________________________ REASON:________________________ ____ ____ CHANGE:________________________ REASON:________________________ ____ ____ CHANGE:________________________ REASON:________________________ ____ ____ CHANGE:________________________ REASON:________________________ ____ ____ CHANGE:________________________ REASON:________________________ ____ ____ CHANGE:________________________ REASON:________________________ (Signed) ________________________________ Karl Schumacher Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 32 of 45 31 (Page 118) Page 118 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CERTIFICATE STATE OF GEORGIA: COUNTY OF CHATHAM: I hereby certify that the foregoing transcript was taken down, as stated in the caption, and the questions and answers thereto were reduced to typewriting under my direction; that the foregoing pages 1 through 117 represent a true, complete, and correct transcript of the evidence given upon said hearing, and I further certify that I am not of kin or counsel to the parties in the case; am not in the regular employ of counsel for any of said parties; nor am I in anywise interested in the result of said case. This, the 5th day of December, 2012. __________________________________ RACHAEL MILLER, RPR, CSR, CCR 2807 Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 33 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 119 A able 30:22 79:24 abusive 81:15 account 18:3 25:7 25:8,9,10 36:15 44:21 54:5 58:7 67:23 68:5 accountant 8:12 accounted 48:7 49:15,18,20 accounting 39:8 48:4 67:21 accounts 20:7,9 20:14,16 69:13 accumulation 36:8 accusing 98:6 99:15,17 acknowledgment 90:14 acquisition 73:8 act 75:25 108:15 action 1:5 107:23 actual 11:12 20:3 26:23 54:4 added 26:23 70:18 71:3 addition 30:19 addl 5:10 address 91:20 advance 51:10,14 51:17 52:18,24 advertising 15:6 34:3 advice 84:2,6 advise 91:10 advised 114:6 affect 38:23 afloat 30:22 africanamerican 81:17 africanamericans 104:3 aftertax 18:20,24 ago 82:5 agree 72:4 agreed 7:6,12 114:5 agreement 1:22 114:12 ahead 43:23 55:19 78:14 111:12 113:13 allegation 80:9 allegations 94:19 alleged 104:16 allegedly 80:9 allocated 11:16,22 allocation 10:19 28:7 allowed 23:14 allowing 110:6 altogether 78:7 amended 5:3,7,17 amount 25:2 48:9 51:12 61:15 63:15 77:18 111:16 112:17 amounts 50:6 79:16 analysis 26:3,4 angry 100:19 answer 7:9 29:10 51:1 55:17,21 59:17 66:13 79:24 87:9 92:4 95:1 100:4 110:25 114:7,20 answering 10:14 answers 66:13 86:19 118:9 anticipated 59:23 anybody 32:20 95:18 97:3 104:13 107:10 107:19 108:22 anyway 75:1,4 82:25 anywise 118:18 apologize 77:5 apparently 87:7 appearance 2:3 appetizer 13:11 14:16,21 applied 42:6 48:3 applies 10:12 apply 99:9 appropriate 95:8 april 71:1 74:7 area 13:17 arent 21:10 arms 55:3 article 6:5 asked 11:21 86:4 86:7,15,25 87:7 101:21 102:5 asking 11:18 28:24 29:1 33:16 85:5 89:3 98:7 99:18 101:12 102:22 asset 22:21 assets 9:9,13 27:16,17 77:3 114:15 assist 101:21 assistance 102:6 102:21,23 associates 6:13 6:17 assume 14:12 24:9 26:21 64:2 64:4 70:19 77:14 87:20 111:21 assumed 24:11 74:23 assuming 40:18 92:14 111:17 ate 14:12,13 atlanta 2:10 89:23 attached 116:5 attempting 83:16 attention 49:10 attest 116:6 attestation 4:14 attorney 84:3 attorneyclient 83:19 97:20 98:23 99:6 attorneys 33:2 97:10 audit 84:15 august 5:5,11 12:23 15:18 70:21 85:22 authority 108:23 authorized 50:21 51:3 automatically 18:2 available 27:3 32:2 aware 91:19,21 92:16,20,22,23 94:23 95:2 96:18 96:21 98:17 105:18 78:21,22 83:20 87:17 91:4 110:13 111:10 113:25 bad 31:1 86:6 90:25 balance 25:7 ball 83:8 bank 18:3 20:7,14 32:15,17 33:1 48:14,15 55:2,14 56:1 75:10 bankruptcy 22:5,6 22:8,11,14,18,19 22:20 23:4 banks 22:1 based 46:1 103:22 basically 24:16 74:23 basis 62:7 73:1 bat 7:7 bay 2:14 beginning 28:19 58:16,20 69:15 behavior 83:5 90:21 108:19 believe 7:6 58:11 58:12 80:19,25 84:1 107:19 114:5 believed 103:22 benefit 42:1,18 benefiting 15:8 26:24 benefits 25:12,13 25:22,23,24 benjamin 2:7 beroset 88:8 best 59:5,6,19 93:20 100:9,14 better 25:4,5 84:16 88:22 108:15 beyond 48:18 B 55:16 big 98:8 105:3,6 b 1:16 6:5 7:3,14 105:25 48:19 59:19 bill 36:11 97:23 98:4,19 billing 41:13 99:21 112:22 billips 2:6,7 4:9 115:2 7:1,11,19 10:16 back 18:25 19:3,7 12:18 27:14,24 19:20 20:19 24:1 28:2,4,6,11,14 34:5 39:4 42:13 28:18,25 30:9,13 43:25 49:17,22 30:18 35:12,13 49:24 50:1 52:17 44:11 48:20 54:9 56:10 61:5 50:20,25 53:7,11 67:2 68:3 78:16 53:14 55:18 59:18,22 64:1,13 64:15 76:5,7,9 78:1,3,6,11,12 79:20,21 80:22 83:1,22 84:5,9 84:24 85:1,12,15 86:9 88:3,4 92:6 94:9,13 97:13,18 97:22 98:3,10,15 98:24 99:8,11,13 99:17 100:3,6,8 108:11 111:9,22 111:25 113:12 113:15,21 114:2 114:4,10,18 115:1 bills 8:4 43:15,16 43:17,18 66:25 69:8 71:15,16 bit 13:7 26:25 36:22 black 95:11 block 102:24 103:10,15 board 6:6 11:8 boards 11:5 bobby 81:9 body 85:6 86:14 bond 41:23 42:1 42:24 bonus 25:21 26:13,14,22,23 44:23 45:9,14,16 52:19,21 bonuses 41:20 44:24,25 45:4 books 33:19 37:24 68:25 borrow 32:15,16 borrowing 30:22 32:11 72:1 bottom 14:15 53:10 56:17 71:9 82:20 87:6 89:9 90:13 bought 34:25 35:1 35:2,4,25 36:3 65:5 69:16 brain 95:16 breaks 44:16 bridge 60:8 broken 44:19 brother 16:7,16,18 16:20 17:14 18:4 19:5,7,9,17,21 19:25 20:7,14 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 34 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. 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November 21, 2012 Page 120 21:14,20,21,22 23:16,17 24:7,8 24:9,12,17,18 32:11,13 73:7,10 73:13,17,19,20 74:10,11,13,14 74:15,22 brothers 27:21 brought 9:17 111:13 bubba 1:9 10:20 16:11,24 17:1,11 17:18,24 19:13 19:15 20:10,16 20:18,22 24:13 24:17 40:5 45:15 45:24 47:4,6,14 48:23 53:18,23 54:11 55:25 56:8 58:19,25 60:11 66:24 68:8,19 71:9,14 72:11,14 72:14 75:11 76:1 77:15 86:5 90:20 91:20 92:24 93:17 105:2,4,4 105:5,11 107:22 bubbas 1:10,18 8:5,7,23 9:2,9 10:13 12:6,13 13:9,14,20,22 14:1,6,16,20 15:3,6 16:8,21 17:2,10,11,15 18:3,5,7,19,24 19:2,5,10 20:3,8 20:15,19,22 21:5 21:7 22:5,25 23:1,16 25:11,23 26:5,24 27:3 29:8,25 30:10,15 30:17,19 31:14 31:23 32:9,14,19 33:9,19 34:7,8,9 34:10,23 35:5,15 35:17 37:6,11,15 37:19,20,22 38:3 38:7,12,12 39:9 39:13,14,20 40:11,23 41:4 42:7,8,20 43:17 44:3 45:1,3,8,9 45:23 46:4,24,25 47:24 48:22 53:16 54:14 56:15,18,24 57:3 57:7,10,12,16,18 111:4 caption 118:8 card 14:14 37:23 38:8 47:16 91:1 cards 29:17 34:3 carrier 42:15 case 8:16 9:22 10:2 13:8 33:2 88:17 96:15 98:16 110:24 118:16,19 cash 36:18 47:24 48:2,3,4,22 49:1 49:11,14 50:5 51:4,21 52:22,22 90:21 categories 34:2 caused 22:6 82:5 cc 90:23 ccr 118:24 certain 9:7 15:15 certificate 4:16 38:10 C certified 1:22 6:9 8:11 c 2:6 5:1,1 6:1,11 certify 118:6,14 6:12,14 112:17 cetera 88:22 118:1,1 cfo 7:24 calculated 49:25 chance 56:3 66:13 call 5:14 20:23 83:5 84:4,5 95:22,25 change 73:2 113:5 109:11 113:6 117:7,9,11 called 13:18 34:24 117:13,15,17,19 35:23 66:23 changes 117:5 91:10,13,13,19 changing 93:13 91:22,24,25 92:13,16,20 93:9 charge 8:21,24 9:2 87:16 94:16 93:16 94:5 94:18 95:3 96:19 102:23 96:22,23 98:18 calling 81:17 99:23 108:4 92:23 93:6 charged 9:25 calls 50:18 31:13 32:1 cant 17:7 31:7 32:16 39:5 47:17 chatham 6:3 117:3 118:4 50:6 51:22,23 check 36:7 45:15 64:3 68:12,14 45:16,18,19 47:1 90:22,24 91:2,16 52:19,25 54:4 91:17 94:1 96:8 56:9 62:4,5,5 97:5,6 104:4,7 63:11 67:2,6 112:21 72:16 111:2,5,6 capacity 7:23 checking 58:6 77:23 67:23 68:4 capital 56:22,24 checks 9:14 26:13 58:9 68:19,20 33:22 34:22 69:1,6,7 71:17 37:18,22 45:6 71:23 72:19 57:25 58:15 captain 109:18,21 64:17 110:5,12,23 58:10,18,23 59:23 60:12,24 61:16,21 62:10 62:13,21 63:4,16 64:12,21 65:21 65:25 66:17 67:2 67:5,6,15 68:7 69:12 70:8,11 72:1,11,19 73:16 73:18 75:8 76:15 76:17,19 77:12 107:25 109:4,8 building 61:19 73:8 buildings 73:11 bump 15:14 business 13:6 15:15 buy 13:11 37:9 60:6 buying 60:2,3 buys 11:25 choose 33:21 chose 109:12 circumstances 80:3 civil 1:5 clarify 79:3 clawed 83:20 cleanup 7:7 78:13 clearly 83:11 99:5 close 24:25 59:24 114:1 closed 17:23 closes 59:1 closing 59:23 club 90:23,24 coaching 83:4 cocounsel 113:24 code 90:23 coffee 109:19,21 109:22 column 34:24 35:22 41:22 56:18 58:22 60:11,14 com 88:9 combine 62:5 comcast 85:3 come 24:1 29:22 43:16 49:9 66:11 78:16 96:18 99:21 102:2,16 108:7 111:10 comes 90:7 99:14 coming 17:25 24:3 46:15 57:5 66:17 67:14 82:6 82:13 83:12 84:2 90:1 101:25 comments 89:10 93:23 97:1,16 103:19 committed 91:7 communicate 95:17 96:2 101:9 104:16 communication 101:7 communications 84:14 104:15 community 13:16 companies 7:25 9:15 12:11,12 25:14 32:7 33:17 38:9 43:5 44:21 80:4 company 16:14 21:22 32:20 42:4 44:16,17,20 46:2 46:13 47:15,16 57:12 58:21 69:17 72:25 74:9 84:17 91:6 101:10 106:1 109:22,23 110:15 112:18 compared 25:8 48:13 compensated 74:16,18 complain 103:21 complained 96:22 97:15 103:24 complaining 94:23 103:17 complaint 92:17 95:6,18 96:14 99:1 107:17 complaints 97:25 98:18,20 99:23 101:24 107:13 complete 78:3 111:11 118:12 completely 79:25 complication 22:3 compound 108:9 computer 33:15 33:17 38:15 68:3 79:8 102:18,24 103:8,11,15 concern 82:5 concerning 100:15 101:7 concerns 88:20 95:4 concluded 115:4 conclusion 50:18 81:13,21 84:11 conduct 81:15 94:20 95:5 102:8 104:1 confer 113:24 confidentiality 84:21 87:4,11 88:15 89:4 confidentially 87:3 confusing 43:22 44:5 consolidated 74:7 75:14 consolidation 74:24 constitutes 116:6 consult 109:1 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 35 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. 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November 21, 2012 Page 121 consultants 102:11 consulting 8:4 41:18 contacted 6:14 contention 80:18 context 106:15 continue 30:5 contract 6:19 62:15,16 64:10 64:11,17 contradiction 105:10 contribution 56:18,21,22 66:23 68:7,10 69:7 71:17 contributions 56:24 58:9 68:13 68:18,19,20 69:1 71:23 72:19,20 control 101:22 108:18 109:3,15 convenience 44:20 67:21 conversation 90:15,19 92:9,21 99:24,25 101:16 108:14 conversations 93:14 cook 66:12 cooking 66:6,7,8 66:21 copies 78:25 copy 9:19,20,20 9:21,22 90:25 94:15 corner 10:12 76:11 corporate 7:2 10:18,22 27:15 28:7 57:21,23 corporation 19:25 20:4 65:8 77:3,6 77:6,7 corporations 11:2 11:4 27:24 correct 12:10 15:12,18 17:4 24:21 30:1,23 49:7 50:16 57:19 61:17 62:17 63:12,17 69:4 72:3,6 77:10 79:17 80:10 81:2 81:18 83:5 84:18 84:22 87:19 88:9 89:6 94:16,20 96:5 101:19,22 102:1 108:3 109:4,8,12 116:7 118:12 corrected 28:19 correction 116:6 corrections 116:5 correctly 95:1 corresponding 45:14 72:16 cost 11:16 20:24 28:22 44:17 70:15 costs 10:19 11:19 11:22,23 28:7 42:20,21 couldnt 58:4 council 6:7 counsel 1:20 2:3 97:25 98:17,25 99:5 100:2 104:15 118:15 118:17 county 6:3 117:3 118:4 couple 50:10,11 course 80:12 84:15 109:2 court 1:1,22 6:6,9 6:15 9:19 23:4 75:20 76:2 83:8 courts 22:7 75:22 coventry 42:12 cover 69:8 71:14 71:15 coverage 39:19 covered 26:1 42:9 43:9 44:15 80:5 cpa 8:13,16 41:14 41:16 credit 29:16 32:25 47:16 56:7 74:6 74:17,20 75:1,7 75:10,12 91:1 cried 88:19 crime 99:13,16 crites 6:13,17 csr 118:24 current 54:18 D d 4:2 5:1,1 6:1 data 90:5 date 96:9 116:19 dated 88:9 dates 15:23 dave 89:24 david 88:8 dawn 22:5 39:12 39:13,22 40:12 40:14 dawns 39:15 day 6:20 65:14 118:20 days 13:17 42:14 114:21 deal 27:19 78:8 109:3,15 dealing 33:2 42:1 90:1 101:19 deals 15:3 90:6 december 6:20 72:8,8 118:20 decide 71:21 decided 36:12 decision 81:24 deck 91:4 deduction 19:12 19:14,15,20 deen 1:7,7,16 3:9 7:24 8:2,8,18,20 27:5 30:2,23 31:14,22 32:20 34:8,10 39:10,15 42:5 43:10 45:2 45:4,6,9,19,20 45:22 46:3,6,17 46:23 47:2,2,3 52:5 53:19,24,25 54:2,5,6,15,23 55:24,24 56:15 56:23 57:2,5,9 57:15,16 58:1,5 60:22,23 61:4,10 61:13,20 62:16 62:19 63:5,14 64:1 65:17 67:4 67:9,10 68:18 69:13,18 70:2,3 70:4,6,10,16 71:8 72:1,18 73:15 76:16,17 76:23,24 81:23 95:25 96:2,17 108:18 109:2,6 109:23 110:5,6,9 110:13,17 111:3 111:14,15 112:1 deens 40:24 defendant 9:10 48:23 77:4 110:23 defendants 1:11 2:19 3:2 7:2 8:15 8:17,22 9:13 11:22 28:23 33:10 77:10 78:19 96:15,17 98:17 99:1 114:16 deferring 78:1 degree 9:7 deliver 37:12 demeaning 103:18 demonstrations 66:12 depends 31:15 deponent 59:19 deposit 38:1 49:3 deposition 1:16 5:3,7,17 7:2 12:20 28:20 77:23 78:17 87:2 97:8 114:11,13 115:2,4 depositions 7:14 deposits 48:14 describe 65:4 description 5:2 9:8 28:2,6 38:15 77:1,2 deserves 30:7 designated 1:19 detailed 83:4 details 85:24 87:8 88:19 developing 102:6 didnt 22:17 28:12 34:15 38:4 54:25 60:5 68:9 79:19 82:14 103:12 106:3 differences 63:2,8 different 9:15 10:14 33:16 34:2 36:9 71:19,19 79:11 differently 71:20 difficulties 101:18 diminishing 68:22 dinner 14:12,20 14:24 65:6 directed 108:2 directing 114:7 direction 13:21 118:10 directly 37:6 86:19 director 90:4 102:7,11 directors 11:5,9 dis 57:14 disciplinary 107:23 disclosure 6:8 discount 14:11 69:23 70:15 discounts 13:2,14 13:15,22 14:1,7 15:12 16:1 69:25 70:11 discovery 114:20 discrimination 87:17 93:23 107:14 discriminatory 94:20 95:5 100:12,16 104:1 discussions 11:10 88:14 disparity 103:22 disqualified 6:10 distance 12:3 distribution 20:18 46:17,22,23 53:19,23 57:4 67:14 distributions 41:22 46:1,15 47:5 53:25 54:1 72:3,10 111:15 112:2,3,9 113:10 district 1:1,2 division 1:3 divorced 40:16 document 76:10 76:12 113:17 documents 79:10 83:21 doesnt 12:3 25:3 91:9 doing 36:22 37:6 40:19 41:15,17 49:6,23 50:13,16 56:25 64:14 66:20 84:16 87:23 90:7 102:15 dollars 18:21,24 23:8,10 24:23 59:2 dont 10:8 22:7 26:3 27:19 28:9 32:15 38:17 41:5 46:11 52:9 56:11 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 36 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. 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November 21, 2012 Page 122 56:11 58:6 59:4 59:7,12 67:22 72:4,12 82:20 84:1,23 85:10 86:2 87:24 89:12 89:21 92:3,3,5 93:10,12,18 94:3 94:6,7,9 95:14 96:8,11 98:12 102:22 104:5 107:7,7 108:10 111:20,21 112:13 double 56:9 drinking 102:4 drive 14:20 16:12 drunk 102:3 due 52:24 duly 7:16 dustin 80:4,9,13 81:6,7,10,14,21 83:3,16 84:11 104:2 duties 90:6 107:15 duty 26:9 email 5:13,15 12:21 15:24 25:16 29:6 80:24 81:1,3 82:19 85:2,4,6,17 86:13,15,17 87:20 88:7,24 emails 5:5,9,11 107:9 emphasized 105:8 employ 118:16 employed 7:23 employee 8:8 11:23 39:22 40:2 40:3,4 42:1 45:22 46:1 88:15 88:16 96:5 106:5 107:6 employees 12:1 42:8,9 43:6,10 44:13 81:16,17 84:17,20 87:3 95:11 104:21 105:12,14 107:4 employment 8:18 ended 38:2 E engaged 81:14 94:19 e 4:2 5:1,1,1,1 6:1 engagement 6:1,1 48:23 65:11,22 116:1 118:1,1 engaging 95:4 earl 1:9 3:9 100:11 103:18 earlier 53:20 enterprises 1:8,9 54:25 69:24 1:17,18 7:24 8:3 107:21 8:9,19,20 30:2 earning 30:6 30:23 31:14,22 earnings 51:8 33:20,21 34:9,10 ears 25:22 34:23 37:4 39:3 easier 37:7 43:21 39:10,15 42:6 east 2:14 3:5 43:11 45:2,4,7 easy 66:10 45:20 46:3,7,23 eat 37:25 47:2,3 53:24 eating 38:2 54:5,6,15 55:24 economic 37:8 55:24 56:15,23 70:9 110:20 57:2,5,9,15 58:1 economics 42:22 60:23,23 61:11 eeoc 94:16,18,21 61:13,20 62:17 95:3 96:19,22,23 62:19 63:6,14 98:18 99:23 64:1 65:17 67:4 effect 20:20 21:7 67:10 69:16 70:2 63:5 70:5,6,10,16 effectuate 107:23 71:9 72:2 73:7 effort 98:1 73:11,13,17,21 either 24:1 37:11 74:12,14,16,23 65:6 71:4 104:8 76:17,18,23 110:11 109:7 110:5,7,9 elaborate 26:20 110:14,17 111:4 elected 37:3 111:15 113:18 entire 63:15 entities 11:17,24 21:11,13 27:20 28:8 entity 33:3 enumerated 27:12 48:19 episode 61:10 equal 21:9 62:6 69:1 equipment 12:2 34:3 equity 23:12,12,18 23:25 24:12,14 erisa 41:23,25 42:1 errata 4:15 117:1 esquire 2:6,13,20 2:21 3:3 essentially 19:5 36:14 45:5 51:9 89:4 110:13 established 32:25 estate 22:15 et 88:22 event 65:11 105:16,19 events 104:5 eventually 38:2 49:4 52:16,17 everybodys 18:5 evidence 118:13 exact 15:23 50:6 51:22 64:3 93:18 95:6,14 exactly 10:4 38:17 39:5 87:10 examination 4:8 7:18 77:2 examined 7:16 example 24:24 65:10 exception 99:12 99:14 116:4 exceptions 99:9 excess 70:16 109:7 exchange 84:21 87:11 110:20 excuse 73:15 exhibit 10:15 12:17,20 33:9 37:17 39:8 65:24 76:8 80:21,24,24 84:25 85:2,20 87:1,6,25 88:7 111:8,13 113:14 113:16 expense 67:18 70:6 explain 10:21 11:17 33:13 expressed 95:4 extent 48:17 50:17 97:20 extra 9:21 exwife 22:5 39:13 exwifes 39:15 eyeballing 71:4 filming 60:18,20 financial 18:10,14 109:3 financially 12:9,13 financing 32:1 find 24:1 49:17 52:2 68:2,3 80:13 87:18 fine 44:12 78:2 114:23 finish 78:18 finished 78:15 88:5,6 115:2 firing 83:3 F firm 8:25 first 7:16 10:17 f 118:1 12:2 14:21 16:9 facilities 60:25 34:13,16 49:6,9 62:2,10 66:18 58:12,25 65:23 facility 60:15 61:3 65:24 66:1 70:22 61:16 62:13 63:3 80:2 82:1 85:11 63:11,16,16,23 85:12 86:1,1 64:5,18,22,23 90:7 97:14 69:18 111:21 fact 10:3 32:18 56:6 96:14 97:15 flow 36:18 focus 89:22 97:21 98:16 follow 91:10 99:20 101:7 107:18 fail 29:8 following 6:8 fair 37:13 39:19 117:4,5 42:5 follows 7:17 fairly 10:23 food 11:22,25 false 99:22 13:22 60:21 61:1 familiarize 85:8 61:2,9 62:12,16 family 91:7 62:17 65:22 far 50:1 113:21 66:19 fast 22:12 foregoing 116:4 fear 87:12 118:6,11 february 70:23 forget 41:9 42:13 72:9 form 90:14 federal 31:16 formed 69:17 feedback 82:7,14 forth 34:5 feel 29:13 43:2 found 22:24 43:25 86:5 88:18 49:23 51:15 feels 88:20 108:19 fees 33:2 40:24 four 31:19 felt 23:19 30:14 fourweek 45:11 fica 52:20 frame 70:20 101:2 figure 23:6,11 franklin 2:20 7:10 49:24 50:2 64:3 27:11,18,25 28:3 112:14 28:5,9,12,16 figuring 49:2 30:8,11,16 44:8 filed 22:19 87:16 50:19,23 59:8,12 96:21 59:16 75:25 files 101:7 77:25 78:2,5,10 filing 96:19,23 79:1 82:17 83:18 99:23 84:4 85:10,19 film 60:22 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 37 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 123 60:24 gm 108:15 go 8:3 13:12,23 14:7,15 15:2 22:1,3 23:14,20 25:6,12 36:20 37:11 39:4 49:17 49:22,23 50:2 55:6,19 68:2 78:14 83:16 89:12 90:12 106:12 107:18 108:24,25 111:12 113:13 goes 27:14 47:13 59:3 going 9:25 12:25 13:8,22 15:2 16:3,18 20:17 23:13,20 24:1 27:13 30:11 31:20 34:5,7,8 G 34:10,22 36:7,13 38:16 43:22 45:1 g 6:11 45:13,15,17 49:2 gather 91:6 51:23 56:10 114:14 58:14,17,19 59:8 gender 103:23 60:22 64:6 66:9 general 90:16,20 67:15,16 68:14 100:22 107:8 76:19 77:6,12,14 generally 65:3 77:15,16 79:6,11 georgia 1:2,24 85:7 86:4 90:7 2:10,15,24 3:6 94:11 97:11 98:8 6:2,7,9,19 117:2 100:1 106:12,23 118:3 111:10 114:4,10 gerard 83:15 good 15:4 21:5 91:19,22,24 27:7 31:1,3,4 92:16,24 93:17 36:24 45:10 95:20,22 54:10 66:5 90:14 getting 25:4 29:8 100:7 29:15 64:7 85:23 gotten 25:5 87:8 101:22 granted 55:13 102:7 great 109:3,15 gift 34:3 35:1,16 group 37:24 38:22 36:1,3,6 37:23 39:2 43:9,14 38:8,10 66:25 44:16 gillen 3:4 give 13:10 14:7,23 gruber 110:3 guarantee 33:4 29:4,15 38:3,7 guarantied 54:19 42:18 59:5,6,19 54:22 56:7 78:22 88:18 89:11 93:20 96:8 guaranties 55:1 55:15 96:10 99:22 guaranty 33:5 100:9 113:8 56:2,13 given 14:14 17:25 guess 59:7,8 92:3 116:7 118:13 94:8,10,12 gives 67:24 giving 13:22 60:21 guests 65:6 88:1 92:3 94:7 97:11,17,19 98:2 98:6,14,21 99:11 99:15 100:1,5,7 108:9 110:21 111:20 114:9,17 114:19,23,25 fraud 99:13,16 frazier 105:3 frederick 7:21 free 13:11,11 14:16 friday 89:24 90:5 front 10:1,7 26:3 72:12 103:3 full 7:20 61:14 90:8 fully 7:9 80:5 funds 42:3 50:22 further 101:9 118:14 103:18 104:17 106:4 107:24 H 108:1,2,19 109:10 half 31:19 46:20 high 50:7 112:11 higher 41:14 hand 75:19 hired 90:3 handle 69:17 hit 42:4 71:20 hodgson 16:8,10 handled 11:14 16:12 20:13 69:19 27:22 handling 71:22 handwriting 89:18 honest 87:12 honored 38:8 happened 39:5 51:15 66:16 68:2 hoping 23:24 114:22 82:21 85:18 86:2 hour 41:10 88:19 104:18 105:9 happening 100:19 house 1:10,19 9:10 12:7 33:10 happens 15:1 59:25 60:1,2,3 harassed 90:21 60:11 64:6 69:12 harassing 94:20 hr 5:10,12,14 95:5 100:12,16 84:15 90:3 93:21 harassment 102:6,7,11,11 103:25 107:13 human 84:5 93:21 hard 29:10 89:15 hundred 24:23 hassle 44:7 59:1 havent 56:6 70:18 husband 110:1 71:3 headquarters I 43:24 health 25:13 43:4 id 107:17 identification 43:8 hear 100:23 10:15 12:17 76:8 heard 92:25 80:21 84:25 105:20 106:9 87:25 111:8 hearing 118:13 113:14 help 8:4 13:7 15:7 identified 7:5,8 23:13 27:4 29:2 69:7 identify 113:16 101:23 heres 9:20 65:10 ignore 89:4 hes 27:13 28:14 ill 12:19 59:6 80:2 30:11 59:8,18 83:18 im 7:24 8:2 12:25 85:13 90:8 13:21 14:9 22:17 106:14 26:9,12 28:5,16 hiers 1:9 3:9 17:3 29:1 30:9 31:7 18:19 19:3 20:10 38:16,22 40:9,17 20:16,22 24:13 41:21 43:22,22 24:17 29:25 47:10 51:22 56:6 30:10,19 40:5,15 56:10 59:4 61:22 47:23 48:23 62:24 63:7 66:1 49:15 51:4,21 66:9 70:23 75:6 54:20 58:8,10 77:11 79:18 80:6 60:11 68:19 72:3 81:25 82:3,18 72:20 79:6 91:20 83:23 85:7,8 94:19 95:4 96:18 88:6 89:13,15 96:25 97:15 92:14,20,22 100:11,17 93:15,21,24 94:3 101:19 102:17 guise 61:16,18 94:11 97:11 98:14,15,21,21 98:22 99:17,18 99:25 103:4,6 106:12 111:17 111:18,19 114:21 imagination 59:3 imagine 47:7 immaterial 55:17 impaired 101:25 108:8 important 87:10 improvements 73:8 inappropriate 90:21 93:23 incident 81:8 104:2,17,18 include 78:18 included 101:25 including 28:7 32:9 income 57:20 67:17 70:7 111:3 incorporated 12:7 20:4,8,15 21:6,8 38:19 57:3 60:12 109:4 incorporates 81:2 increase 72:24 increased 73:1 indebtedness 24:16 indicate 73:5 indicated 93:15 individual 33:4 77:9,23 78:17,18 79:6,12 80:8 114:13,15 individually 44:17 111:14 individuals 43:10 78:9 84:7 info 91:6 inform 89:5 information 9:16 59:20 79:5 89:11 93:3,7 99:19,20 113:9 114:14 informed 80:3 83:15 97:24 initial 25:16 initially 7:4 22:4 22:22 81:9 inquire 104:20 inquiring 98:15 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 38 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 124 instance 33:18,19 37:8 instructing 100:3 insurance 25:13 25:25 39:16,19 39:25 40:8,12 42:4,10,12 43:5 43:8 44:4,13,16 interco 53:2,8 intercompany 53:3 interest 6:11 18:8 18:11,14 19:12 19:13,15,20 31:13 53:8,13 55:5,7,7 interested 118:18 interfere 108:2,6 108:13 international 6:13 6:17 interpersonal 84:6 interpret 111:1 interview 87:19 88:25 interviewed 84:17 interviews 5:10 84:21 87:8 interwove 85:5 86:14 introduce 89:25 invade 97:20 inventory 34:2,24 35:23 36:2,6 67:3 69:15 investigate 106:13 investigated 80:8 investigation 80:13 involving 20:13 104:17 irs 55:10 isnt 20:21 issue 80:7 92:18 106:23 issues 5:12 13:1 93:21,22 item 5:4,8,18 9:8 10:18 11:18 15:14 58:25 64:10 66:6,23 68:6,16 69:10 73:4 79:14 81:6 items 7:5,7 9:6,8 13:23 25:14 34:16 35:16,19 37:5 48:19 60:14 65:3 76:14 79:13 91:9 114:5,6,11 ive 9:19 95:14,15 68:8 69:8 74:6 75:19 77:12 74:17,20,25 75:7 79:16 82:20 75:10,12 79:12 84:23 85:23 86:2 112:17,22,25 87:5 89:21 92:4 117:6 93:10,12 94:3,4 94:6 96:11,12 lines 53:10 J 97:22 98:4,12 lisa 1:4 12:8,23 99:5,8 103:12 45:17 49:12 86:6 jackson 1:4 12:8 107:7,7 88:12 90:18 12:23 45:17 known 84:8 92:20 105:11 49:13 51:14 106:18 108:15 87:16 88:12 89:6 knows 84:8 list 22:22 33:11 91:19 92:9,11,12 L listed 22:19 23:2 92:16 93:11,16 28:10,14,21 l 5:18 6:1 29:13 94:23 95:3 34:16 35:20 40:4 labor 11:23 66:19 100:10,15 77:13 jacksons 51:25 lady 1:8,8,17,17 listen 59:17 94:16 99:1 8:22 9:1 10:13 listening 82:1 jamie 81:9 12:7 13:9,23 90:15,19 january 70:23 14:3,5,7,13,13 little 13:7 21:19,25 72:9 15:1 25:23 26:6 23:11 26:25 jim 83:15 91:11,13 26:17 27:6 29:2 27:12 36:22 91:13,19,22,24 29:19 33:19,21 70:12 112:10,11 92:1,13,16,21,23 34:6,23,25 35:2 llc 1:8,8,17,17 3:4 93:6,9,16 95:20 35:3 37:4,14,19 73:11,13 74:13 95:22 37:21,25 38:6,7 74:14,16 job 89:23 38:11,25 39:3 llcs 73:7 jody 90:1,2,3 42:5,21 43:16 llp 2:7,22 jodys 90:2,6 44:2,5,6 58:18 loan 16:8,10 19:13 judicial 6:7 69:16 73:16,20 20:13,24 21:20 july 5:9 69:20,21 73:21 76:18,19 23:7 24:4,9 81:1 113:18 27:22 33:4 53:2 jump 43:22 lake 3:4 53:3,9,13,15,16 june 5:15 51:23 lame 91:5 54:8,12,19 56:4 justice 98:1 land 44:8 58:22,25 60:8 justify 30:6 large 12:3 66:24 68:7,8,9 law 6:19 K 68:13 69:7,8 leader 86:6 71:14,15,18 74:5 leave 38:16 karl 1:20 7:15,21 74:7,9,24 75:5 left 80:7 107:20 86:12 116:13 75:14 legal 7:20 21:11 117:24 loaned 56:19 84:2 karls 39:8 loaning 31:23 leisure 36:22 keep 59:16 65:9 length 55:4 76:21 loans 29:9 30:3 81:22 83:17 31:11 32:3 55:2 letting 24:4 88:15 55:13,23 71:10 level 109:15 kelin 2:21 71:11,22 73:6,6 kept 48:8,10 96:13 liabilities 73:5 74:6 109:6,11 114:15 96:13 long 15:20 17:6,9 liability 74:23 kin 118:15 22:9 23:6 114:20 liberty 3:5 kind 7:6 15:6 longer 15:16 16:4 19:25 61:5 66:14 license 61:4 22:10 88:16 lie 80:14 88:12 102:8 look 31:16 32:4,8 lied 80:13 81:10 kitchen 103:7 72:4 82:22 85:12 81:18 84:11 105:6 107:2 89:9 knew 33:25 88:24 lien 75:3 looked 25:7 26:13 know 22:9 25:2,21 limited 83:5 31:25 41:9 77:6 38:17 40:10 59:3 line 29:11 32:25 looking 27:25 48:18 53:5 56:7 59:9,9,15,21 Tom Crites & Associates International, Inc. critesintl.com 35:9 43:25 47:9 47:10 58:13,17 58:19 65:14,23 65:24 66:1 88:16 102:10,17 103:2 103:3,5,8 looks 82:4,5,12,15 89:10 90:8 lot 22:10 29:14 41:2 43:21 95:15 95:15 lots 78:25 lower 40:8 lump 62:1,2 lunch 14:13 M m 1:24 5:1 6:1 85:16,16 114:3,3 115:4 mackworks 84:16 84:16 85:3 87:18 88:8 89:1,3,6 main 13:19 29:15 majority 34:23 making 21:23 56:23 61:22,24 68:18,20 72:19 72:20 96:25 97:15 110:6 management 81:15 106:12 manager 26:9 42:20 81:8 86:6 106:24 managerial 39:8 managers 25:22 25:25 26:1,17 90:14 91:6 106:15 maner 2:22 manual 90:13 mark 10:8 29:9 75:20 76:3,7 84:24 111:12 113:13 marked 10:15 12:17,19 76:8 80:21,23 84:25 87:1,25 111:8 113:14 market 23:25 25:5 25:9,10 32:2 married 39:18 40:15,18 match 47:4,18 52:10 53:18,22 Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 39 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 125 matched 52:10 matching 52:5 matter 10:3 37:2 77:2 matthew 2:6 mean 23:22 37:19 42:5 51:13 52:18 59:1,10 67:17 72:11,15 75:3 79:9,19 85:18 meet 90:14 110:7 110:8 meeting 89:23 meetings 11:9 member 65:18 members 65:13 memo 66:24 68:7 69:8 71:14,15 79:1 memorial 16:8,10 16:12 20:13 27:22 memos 101:6 mention 28:19 90:22 mentioned 97:9 102:19 103:6 104:18 merchandise 35:1 35:6 67:7 message 91:17 met 81:10 michael 110:3,12 michaels 109:18 109:21 110:5,12 110:23 111:4 middle 88:12 miller 1:22 118:24 million 64:4 112:11,14 113:2 113:2 mind 30:6 99:14 mine 75:22 76:6 82:8 minute 27:18 minutes 11:9,11 85:14 90:22 miscellaneous 38:16,17 47:15 missed 10:4 missing 77:16 misunderstandi... 14:9 mma 25:7,8 mod 26:8 mods 26:5 moment 113:23 monday 90:5,9 money 16:22 17:25 18:1,3 19:6,7,7,10 20:18 21:9,9 24:3 25:9,10 27:2,3,8,10 29:14,16,21 30:22 31:23 32:12,15,16,19 33:16 34:5 36:25 37:13 46:6,14,16 47:15,18 48:21 48:25 49:10 50:4 54:9 57:6,11,12 57:17,18,21,24 58:19,21 60:22 60:24 61:25 62:8 62:8,9,11,21,22 62:25 63:2,10 64:8,11,20 67:1 67:5,11,16,18 72:1,8,13,13,14 72:22 76:18 77:11,16,19 110:4,13 moneys 66:17 monkey 80:16,19 80:20 monkeying 80:16 80:16 monkeys 81:17 104:3 month 16:13 29:4 45:11 50:3,8 62:1 96:10 months 13:3 15:25 50:10,11 51:22 move 78:7 100:6 moved 17:23,24 21:20 35:4 murphy 2:21 N n 4:2 5:1,1 6:1 95:10 106:10 116:1 name 7:20,21 16:16,17,19 21:22 23:2,16 39:4 73:7 82:20 names 105:23 nature 99:22 need 27:8 29:21 75:19 needed 30:3 68:2 negative 23:12,18 24:12,13 82:14 neglected 28:18 net 62:24 63:5 85:3 network 60:21 61:1,2,9 62:12 62:16,17 never 22:18 23:2 62:3,4 80:19 82:13 103:4 106:9 new 89:12 90:3 93:3,7 nigger 106:16 night 13:16 normal 32:4,6 notes 92:7,8 93:13 notice 1:21 5:3,7 5:17 48:19 november 1:24 36:5 90:9 number 5:2 9:8 10:1,5 27:14 53:5 66:2 71:6 71:10 84:17 111:23 numbered 28:3 34:14 numbers 72:12 offer 13:10,10 office 11:7 48:11 102:24 105:6 official 75:2 offset 20:19 offsetting 24:4 oh 47:11,13,13 49:20 103:24 okay 7:1,11,22 8:6 8:8,11,15,21 9:4 9:17,24 11:12,16 12:6,19 13:20,25 14:3,6,9,18,23 14:25 15:5,17,24 16:6,24 17:3,9 17:13,16 18:7,10 18:23 19:9,23 20:3,6,21 21:17 22:13 24:11,16 24:22 25:10,12 26:17,19 27:2 29:6,24 30:4,21 30:25 31:10,13 31:22,25 32:16 32:19,22 33:3,6 33:8,13 34:13 35:7,14,19 36:2 36:5,14 37:4,16 37:21 38:19 39:7 39:12,14 40:5,11 40:19,21 41:8,11 O 41:20 42:8,23 43:1 44:9,19,23 o 5:1 6:1,11 116:1 45:3,8,12,18 object 27:11 30:8 46:10,16,22 47:1 83:18 97:11,17 47:4,6,13,20,23 97:19 110:21,22 48:1,10,12,16,25 objecting 98:10 49:6,13,22 50:1 98:14,21 50:4,12,15 51:6 objection 27:19 51:19 52:2,7,11 30:16 48:17 52:14,20 53:1,4 50:17,19,23,24 53:12,18,22 54:8 55:16 77:24 99:3 54:11 55:9 56:14 104:14 56:17 57:8,14,25 obligation 68:24 58:8,13,22 60:1 74:19 75:12 60:4,10 61:1,7 obligations 68:25 61:13 62:11,15 110:7,8 62:24 63:7,8,19 obstruct 98:1 64:13,20 65:1,2 obviously 86:23 65:10,16,20,23 occasions 101:18 66:4,6,22 67:4,8 occur 51:19,20 67:13 69:3,10,20 95:13 96:7 69:22,22 70:1,9 occurred 104:22 70:20 71:7,12,21 108:20 71:25 72:6,18,23 occurring 70:21 73:4,10,15,20,24 102:9 74:1,5,11,22 october 5:13 88:9 75:6,9,16,18,18 75:24 76:22 77:1 77:8 78:6,11 79:20 80:1 81:6 81:13,20 83:2 84:1,10,14,24 86:18,22 87:15 87:22 88:5,7,23 89:3,13,21 90:11 91:3,12,18,23 92:2,11,15,23 93:3 94:18 95:13 95:17 96:4,13,20 98:15,25 100:6 100:25 101:3,6,9 101:17,21,24 102:5,13,20,25 103:9,14,17,21 103:25 104:14 104:20,24 105:12,15,18,22 105:25 106:14 106:19,22 107:1 107:6,9,19 108:6 108:12,17 109:2 109:14,18 110:2 110:16 111:18 112:1,6,13,16,19 113:4,12,21 114:4,18 okeydokey 76:5 oliver 2:22 onboard 89:23 90:1,8 once 49:22 51:14 onceayear 43:3 oneonone 66:14 105:7 ones 26:6 35:25 53:20,22 online 69:13,18 open 32:2 opened 36:9 44:4 58:12 opening 4:4 operation 108:3,7 108:13 operations 11:16 11:22 28:22 opinion 87:12 opposed 67:9 70:3 71:22 order 40:7 104:5 ordinarily 72:23 original 28:17 originally 23:15 outside 27:12 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 40 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 126 29:22 110:25 outstanding 74:19 80:7 overhead 34:3 overlap 9:7 overrule 81:23 owe 32:19 44:22 54:14 owed 25:1,2 75:7 75:10 owes 74:9 owned 16:11,24 17:1,3,6 22:4 60:11 109:23 owner 69:3 owners 10:23 11:1 29:15 33:5 55:15 56:1 ownership 18:8 72:24 73:3 owns 16:11 19:21 74:1,3 109:25 oyster 1:10,19 9:10 12:7 33:10 69:12 P p 1:24 6:14 85:16 85:16 114:3,3 115:4 package 42:2,18 page 5:2 10:2,17 29:12 33:8 34:13 34:16 35:9 37:16 39:7 53:6,7 56:14 65:24 66:2 66:4,22 71:8,16 73:5 89:10 117:6 pages 34:14 118:11 paid 18:4,25 21:16 24:13 26:6,15 32:11 36:17 38:4 38:5,25,25 39:3 41:24 44:25 46:6 51:11 52:17,20 53:13 55:8 57:17 57:23 62:20 63:14,22 64:4,7 64:18,21 66:11 66:25 paper 23:1 56:12 78:21 papers 78:21,24 79:2 paperwork 22:1 paragraph 28:3 82:11,12 88:11 paragraphs 27:13 parkway 2:8 part 8:16,18 12:16 13:18 22:14 25:16 51:8 54:12 64:8,9 76:15 82:3,4 83:2 84:11 85:21 91:16 parties 60:19,20 61:5 62:12 118:15,17 partners 65:7 partnership 20:2 party 37:25 38:2 65:12,22 99:4 paula 1:7,7,16 3:9 7:24 8:2,8,18,20 19:21,21 27:5 30:1,23 31:14,22 32:20 34:8,10 39:10,15 40:24 42:5 43:10 45:1 45:4,5,6,9,19,20 45:22 46:3,6,17 46:23 47:2,2,3 47:18 52:5 53:19 53:24,25 54:1,5 54:6,14,22 55:23 55:24 56:8,15,23 57:2,5,5,8,9,11 57:15,15 58:1,4 60:22,23 61:4,10 61:13,20 62:16 62:19 63:5,14 64:1 65:7,8,17 66:9,14 67:4,5,9 67:10,11,16 68:18 69:13,18 70:2,3,4,6,9,16 71:8 72:1,17 73:15 74:2 76:16 76:17,23,23 77:12,17 81:22 81:23 83:16 95:25 96:2 108:18 109:6 110:5,6,9,13,17 111:3,14,15 pauladeen 88:9 paulas 46:13 60:19,20 pay 8:4 15:11 19:3 25:21 26:2 33:2 35:5 36:13 37:14 38:5 39:20 41:4 41:25 42:6 45:25 45:25 55:5,6,7 57:20 67:3,6 103:22 111:5 payable 69:13 paying 14:6 16:14 17:10 18:23,25 19:17 24:5 36:10 39:3,14 44:2 45:3,5 61:2,3,3 61:10,21 64:10 66:20 69:14 70:10 72:2 110:9 payment 16:10 17:17 18:1,2 19:13 20:17,22 20:24 21:23 23:21 24:5 42:4 52:5,15,23 53:19 57:15 61:15 63:15 71:7 payments 16:9,13 16:21 17:12 20:13 27:22 35:14,15 39:9 53:23 55:11 56:14 65:25 70:2 71:8 76:23 payroll 9:1 26:24 40:25 41:5 pd 30:5 pde 5:8,16 10:13 13:2,7,13,25 14:4,5,6 15:5,8 15:11,25 34:9 39:20,22 40:5,12 41:24 43:17,23 44:2,6 53:17 54:8 58:18 65:25 67:15,18 75:17 76:11 77:17 102:10 111:6,6 pdes 39:24 42:3,9 pdo 69:10 pdr 5:12 27:4,4,6 27:8,10,17 29:2 people 13:8,12,17 13:23 14:7 15:2 15:3 39:1 66:11 66:14 86:5 105:21 106:21 percent 31:19,20 32:5 46:13,14 69:3 72:21 percentage 68:22 perform 8:1 period 15:15 23:24 32:23 36:23 45:11 47:7 50:9 68:17,17 periodically 55:8 periods 36:9 person 8:2 11:25 12:1,1 21:15 38:4 47:21,22 66:11 105:1 personal 20:9,16 54:25 55:15 57:20,24 58:6 59:25 65:7 67:23 68:4 79:5 personally 17:4 31:8 33:6 40:6,7 45:15,19 46:18 54:19,22 56:2,7 56:12 57:6 65:8 65:9 74:3 77:17 phrased 68:19 69:6 pick 37:11 51:8 70:22 78:17 79:23 113:22 picked 33:20 90:20 piece 16:11 17:19 22:25 56:12 place 13:13,13 24:2,3 29:8 64:6 102:8 109:12 116:8 places 26:1 plaintiff 1:5,21 2:5 plan 25:25 26:22 26:23 43:5 83:4 plane 44:8 plans 5:6 26:14 please 7:20 28:1 44:8 65:3 82:2 111:22 plus 15:4 103:6 pocket 24:6 67:19 point 8:25 10:6 15:13,16 25:20 29:18 35:10 42:13 51:7 56:8 59:24 62:8 72:7 99:25 108:1 pointed 25:24 49:12,13 pol 36:19 policies 102:6 pornography 102:17 103:1 portion 19:12 110:10,14,16 111:7 portions 7:13 position 113:25 positive 23:25 possible 66:10 practical 109:15 practice 8:14,16 33:7 41:14 preparation 78:4 prepare 88:17 98:3 prepared 48:13 76:10 77:8 78:8 98:13 99:21 113:17 present 3:9 32:24 104:21 presently 7:23 109:7 pretax 18:20 pretty 22:12 32:7 76:20 88:24 prevent 102:8 preventing 98:11 previously 7:8 94:24 95:3 price 42:19 pricing 42:19 primary 8:2 prime 31:17,21,23 principal 23:22,23 print 91:17 prior 7:13 15:21 83:12 85:21 95:2 96:18,22 97:3 99:1,23 privilege 83:19 97:21 98:23 99:6 privileged 104:15 probably 31:20 32:18 33:25 36:8 36:10 37:2 41:9 41:10 42:3 54:16 58:16 89:10,11 93:2 95:8 103:7 problem 85:23 98:9 problems 22:6 91:20 proceeding 6:16 6:18 process 16:15 42:25 processes 102:7 processing 9:1 produced 10:17 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 41 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 127 production 83:20 professional 40:24 profit 12:15 31:2,9 46:1 62:20 110:14 112:22 113:1 profitable 31:5 program 16:3 42:10,12 70:15 prohibited 6:19 promise 84:20 89:4 promised 84:23 87:2,3,5,10 promote 13:6,12 15:7 promotes 13:16 promotion 69:25 proper 65:9 property 16:12,15 16:25 17:1,4,6 17:10,19 18:8,11 18:14,16,20 19:18 21:21 22:4 22:13,14 23:9,15 23:20 24:8,19 59:24 73:14,16 73:18,21 74:1 75:1 prospect 18:13 protect 88:18 protected 99:6 provide 6:15 82:14 97:23 provided 15:25 65:21 66:17,18 66:19,19 99:19 99:20 provisions 6:11 public 8:11 pull 62:7 purchased 36:6 43:9 purchasing 37:5 purpose 35:20 110:6 purposes 20:6,12 35:8 46:17 47:19 54:2 pursuant 1:21 6:5 7:2 put 10:11 11:21 33:18 34:1,4 54:5 57:6,12,16 58:21 67:1,5 68:10,25 72:13 97:23 102:7,24 103:10,15 110:13 putting 16:16 41:5 57:18 67:11,16 Q qualify 40:7 question 20:11 27:7 29:9,10 51:2 55:22 66:13 81:15 85:8 86:15 86:25 87:7 94:25 100:13 103:14 105:19 108:10 questioning 48:18 questions 7:9 10:14 27:23 59:17 79:23 85:5 86:5,7,20 107:20 110:22,22 111:1 113:21 114:8 118:8 quiet 59:16 quit 56:25 R r 5:1 6:1 118:1 rachael 1:22 118:24 racial 80:4,10 81:16 100:11 103:25 104:1 106:4 racially 94:19 95:5 100:11,16 104:1 racist 96:25 97:15 ran 36:11 rate 31:13,16,17 31:21,23,25 32:2 32:4,6,11 40:8 41:8 42:21 44:13 rates 25:21 41:13 read 25:15 64:11 81:25 82:1 85:11 88:2 89:14,17 111:19,20 116:3 reading 85:13 reads 91:17 real 59:24 reality 48:11 53:24 realize 111:10 really 24:25 27:7 29:3 36:8 41:12 44:4 46:11 89:12 93:5,7 realm 9:5 reason 18:17 40:9 44:19 67:20 117:8,10,12,14 117:16,18,20 reasonable 7:10 reasons 93:18 117:5 recall 15:22 17:7 40:17 50:6 68:12 68:14 93:18 95:6 95:14,19,21 96:1 96:8 97:5,6 104:4,7 receipt 14:15,19 14:22 receive 14:16 63:10 107:13 received 45:25 46:14 62:1,11 63:2,11 94:15 receives 61:25 receiving 95:2 recess 85:16 114:3 recollection 87:22 93:20 100:9,14 recommend 83:3 reconcile 90:21 reconvening 79:4 record 7:12 35:9 55:6 89:18 111:12 113:16 recorded 11:13,15 records 58:9 reduced 118:9 reduces 23:22 reducing 23:21 refer 13:5 29:7 95:11 reference 10:19 13:1 16:6 29:24 referencing 27:22 referred 30:4 104:3 106:6 referring 30:10 47:8 reflect 76:22 reflected 72:24 79:10 reflects 76:13 refused 109:10 regard 10:22 27:20 92:17 114:6,11 regarding 79:5 92:21 114:8,14 regular 118:16 regulations 6:6 reimburse 14:5 15:5 41:6,23 110:9 reimbursed 13:2 16:7 17:14 19:4 21:8 40:23 44:6 111:6 reimbursement 16:1 21:3,4 65:11 reimbursements 66:21 69:23,24 reimbursing 13:13,25 14:4 16:20,20 17:11 18:5,19 20:23,24 39:21 40:12 related 25:14 92:24 relating 113:17 relationship 6:10 36:20 90:20 relationships 27:15 84:7 relied 29:2 30:1 relieve 75:6 relieved 75:11 rely 27:4 29:3 relying 27:6 remarks 4:4 100:12,16 remediation 83:4 remember 31:7,8 31:8 32:10 39:5 50:3 51:22,24 56:11,11 64:3 67:25 69:15 74:25 80:7 85:25 95:7 100:18 101:2 102:22 104:5 rent 17:25 24:2,2 29:4,5 61:19 62:4,14,21 63:3 64:9 73:16 rental 60:15 61:16 62:13 63:11,16 63:17,23 64:18 rentals 64:5 rents 73:18 repaid 31:10 54:11 71:24 repay 29:9 54:8 repeat 20:11 49:16 51:2 55:22 85:7 94:25 100:13 replies 86:8 report 34:17 76:20 reported 46:11 51:14 101:17 reporter 1:23 6:9 75:20 reporting 6:6,15 represent 118:11 representative 1:20 representatives 96:15 represented 99:4 requirement 55:15 requires 55:10 research 22:23 59:14 reserved 115:3 resigned 87:16 resolved 83:13 91:11,15 103:16 resources 84:5 93:22 respect 49:19 52:3 54:3 responding 85:3 response 56:10 80:25 86:14 responses 85:6 responsibilities 107:12 restaurant 60:19 106:15 108:3,5,7 108:13 restaurants 73:12 result 118:18 resume 114:12 retail 27:5 retirement 42:10 retribution 87:12 return 46:12 reveal 97:14 revenue 112:15 rich 88:17 right 9:6 10:8 11:12,20 14:10 14:12 15:8,11 21:21 25:1,18 26:10,11 29:1 31:8 32:5,10 33:1,8,24 35:10 35:24 37:1,16 41:15 42:16 43:4 43:8 44:9,12,12 50:3 54:3,16 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 42 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 128 55:12 56:20 61:9 61:11,20 63:1,4 63:9 64:2 65:25 66:22 68:3,6 69:23 70:17 71:18 73:4 74:15 74:25 75:21,22 77:18,21 78:13 79:15,22 82:4 85:25 86:10,13 86:21,25 88:3 90:2 92:13,14 94:14,22 97:4,7 101:12 102:16 104:8 109:16 112:12,24 113:3 113:12,15,19,23 righthand 10:12 76:11 rolled 75:4 room 66:15 rpr 118:24 rule 7:3 rules 6:5 schumacher 1:20 7:15,21,22 79:4 86:12 116:13 117:24 schumachers 77:22 114:13 scope 27:12 48:18 50:24 55:17 110:25 seafood 1:10,18 8:7 9:10 12:6 15:4 25:11 33:10 search 33:18 season 37:9 seasoning 37:10 second 25:15 33:8 71:7,8 secret 96:14 secretary 11:6 section 82:23 secured 75:1 see 10:9 13:21 25:6 27:19 29:11 29:11,19 32:4 34:5,24 38:20 S 39:7 40:23 43:19 45:13 52:8 53:1 s 2:13 5:18 6:1,1,1 60:7 64:16 65:2 6:14 29:13 116:1 69:23 70:22 sales 65:2,3 75:16 82:3,6,18 salon 17:22,23 84:10 85:18 87:6 salt 37:9,10 87:13 89:12 sarah 65:11,12,13 90:22 91:16,17 sauce 37:9 111:23 112:9 savannah 1:3,23 113:24 2:15,24 3:6 selfexplanatory 89:25 90:5 10:23 saw 26:9 39:4 selfsufficient 12:9 105:19 12:14 29:14,19 saying 25:12,19 29:21 30:1,20 25:20,20 51:16 63:7 83:24,24,25 sell 60:5,5 87:21 90:9 91:25 selling 37:15 60:1 semantic 63:1,8 98:22 send 107:9 says 10:18 26:14 senior 38:19 27:2 34:16 36:2 sense 12:4 55:14 47:8 54:8 66:25 56:1 68:8 74:6 81:7 sent 25:16 80:24 82:4,7,22 83:2 81:1 86:13 88:23 86:12 89:21,22 sentence 86:1,1 90:4,13,23,23 separate 21:11,13 112:8,22 43:15,20 62:3 scale 42:22 69:17 73:25 scales 37:8 79:14 86:16 scared 91:4,5 111:5 schedule 34:4 school 13:17 66:7 separately 8:21 9:2 63:10 66:7,8,21 services 6:15 8:1 62:3,5,23,25 63:10,12,15,22 64:5,8 66:18 set 35:22 setting 86:16 settlement 91:5 seven 112:10,10 114:21 sexually 103:18 share 11:1 68:22 shared 11:19 12:4 shareholder 45:24 46:3 72:21 shares 57:3 sheet 4:15 90:22 116:6 117:1 shes 64:7 65:17 88:16 106:24 shook 105:2,2,3 shop 17:24 35:16 36:1,3,6 66:25 short 97:25 shot 59:5,6 shouldnt 27:8 52:4 show 12:19 52:11 60:14,21 61:6,8 61:11,15 62:9,20 66:10 80:23 113:9 showed 26:4 31:9 shown 12:15 shows 61:22 shut 109:11 sic 113:1 side 9:21 46:13 67:25 68:1 70:8 102:10,12 105:5 sign 56:12 signature 115:3 signed 22:25 82:17 90:14 116:12 117:23 significant 77:18 similar 72:20 single 63:11 sir 8:10,13 15:19 20:5 27:1 31:12 33:12 35:18 36:4 50:14 52:13 53:21 56:16 69:21 73:23 88:10 sister 16:7,20 17:14 18:4 19:5 19:8,9,17,22 20:1,8,14 21:15 21:20 23:16,17 24:8,9,13,18,18 32:11,13 73:7,10 73:13,17,19,21 74:10,11,13,14 74:15,22 sisters 16:16,19 21:21,23 27:21 sitting 38:6 situation 18:6 23:13 83:12 103:16 six 53:10 slightly 26:6 slur 81:16 106:4 slurs 80:5,10 small 31:9 smoke 91:4 sold 35:16 somebody 24:2 37:24 38:24 84:7 103:7 107:17 somebodys 68:4 son 113:18 sons 1:8,17 8:23 9:1 10:13 12:7 13:9,23 14:3,5,7 14:13,13 15:2 25:23 26:7,18 27:6 29:2,19 34:7,25 35:2,3 37:14,19,21,25 38:6,7,11 39:1 42:21 43:16 44:2 44:5,6 58:18 73:16,20,22 76:18,19 sorry 22:17 26:9 26:12 28:4,5,16 30:9 41:21 59:4 70:23 75:7 79:18 82:3 83:23 85:8 111:18,19 113:4 sort 11:13 92:17 92:18 93:25 sound 70:17 82:8 82:9 sounds 7:10 38:21 sources 29:22 southern 1:2 space 29:5 specific 106:6 specifically 96:11 104:7 107:8 specified 64:17 116:5,8 specify 64:17 speculate 59:4 spending 41:2,7 41:18 split 19:20 spoken 81:9 105:12,15 spread 62:6 spreadsheet 52:12 staff 5:16 65:13,17 100:20 103:7 106:11 stand 27:9 standard 33:7 41:13 55:1 56:10 start 28:20 71:21 89:17 started 40:14 102:10,14 starting 25:15 43:24 starts 23:21 state 1:23 2:23 6:2 7:20 117:2 118:3 stated 118:7 statement 97:21 100:22 statements 103:19 states 1:1 11:7 stay 30:22 89:25 stayed 105:5 stipulated 64:9 stipulations 4:4 7:13 stock 73:2,2 stopped 50:13 store 35:1 37:10 story 105:5,10 straight 63:4 straightened 78:23 street 1:23 2:14 2:23 3:5 strike 17:9 41:20 53:1 61:4 strip 90:23,24 structure 10:18,22 28:7 42:19 studio 60:20 63:3 stuff 22:8 35:3,3 37:14 90:17 style 81:8,15 82:10,24 subject 5:6,10,12 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 43 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 129 90:16,17 91:5 92:19 93:12 105:4 106:10,14 106:17 107:4 tanya 81:1 82:6,13 82:22 85:24 86:12 91:10,13 91:14,25 92:12 92:13,19,22 93:6 93:10 tax 18:22 19:12 21:13 46:12,16 47:19 54:2 110:7 110:8 taxable 20:25 taxed 19:3,9 57:8 57:16 taxes 21:14 46:12 51:11 52:15 57:17,20,22,23 57:24 110:10 111:3,5,7 technicality 16:19 46:8 tell 54:25 67:8 76:12 88:5 91:2 95:20,22 98:25 100:14,25 102:25 104:13 112:20 telling 49:1,7 87:11 88:13 92:8 T 92:12 97:6,7 101:15 106:24 t 1:4 5:1 6:1,1,1 82:7 116:1,1,1,1 temporary 15:14 16:23 118:1,1 terminated 81:21 take 11:10 14:19 19:20 23:18 24:8 termination 81:24 terminology 26:12 24:9 25:3 32:23 39:1 72:14 85:12 terms 36:19 55:12 55:13,23,25 85:14 111:15 testified 7:17 112:1 113:23 98:19 taken 1:20 18:2 testify 27:13 30:12 38:10 47:6,14 77:9 100:2 49:24 72:10 testifying 98:11 112:7 118:7 testimony 97:24 takes 21:25 99:22 116:7 talk 50:12 82:4 thank 14:23 44:9 83:11 104:25 65:16 114:24 105:24 108:24 thanks 82:7 108:25 thats 9:5 10:1,1,3 talked 26:2 49:4 10:4,7 14:10 69:24 80:14 99:4 21:23 22:8 27:7 105:1,6 29:9 30:9 32:10 talking 27:20 32:13 33:7 35:25 57:21 62:24 38:20,21 44:19 63:25 85:9,19 5:14,16 104:14 subordinate 81:16 106:4 subsequently 87:15 substantial 72:2 72:10 suck 30:5 sue 91:6 suggestion 84:6 suite 2:9 sum 62:1,2 summertime 36:24 suntrust 32:5 support 108:16 supposed 22:10 23:1 50:15 94:3 supposedly 21:10 105:1 sure 21:10 24:7 37:13 38:22 40:9 56:7 69:12 78:20 80:6 82:2 85:15 89:13 93:15,21 93:24 94:1 95:1 103:4,6,12 105:9 108:12 110:11 surprises 83:9 suspend 114:5,10 sworn 7:16 48:3 50:23 54:9 54:10,17 58:15 63:7,19,19 64:22 64:24 65:5,11 66:16 67:1 69:13 75:21,21 77:22 78:2 79:20 81:12 82:16,18,24,24 83:6,9 84:1 85:25 86:3,3,10 86:10 87:20 90:1 91:21 98:7 99:5 103:10 105:9 108:9 112:8,14 114:23 theres 9:21,22 11:18 12:2 13:1 13:8 16:6 27:21 35:22 41:20 44:23,24 45:10 45:13,14,15 53:18 55:14 56:18 58:22 60:10,10,14 66:6 66:23 69:6 78:13 82:21,23 83:15 88:11 theresa 88:8 thereto 118:9 theyll 37:9 theyre 10:14 15:2 21:15 25:19 40:19 44:15 64:10 110:23 thing 29:3 34:6,8 38:5 43:3 77:13 77:15,16 81:25 things 11:13 34:1 36:10 41:15 47:16 81:8 93:25 think 9:7 10:22 22:22,23 24:24 24:25 25:3,19 28:9 30:4 31:18 31:18 37:24 38:10,20 39:17 39:18 40:4 41:9 42:2,15,17,24 47:17 49:12 54:17 60:8 63:1 65:15 70:13 80:5 86:1,4,6,7 89:25 90:16,23 91:2,14 91:25 93:2,5 97:5,9 99:9 101:16 103:5 112:4,13 thinking 28:17 third 35:9 thomas 3:3 thought 9:25 103:16 106:20 thousand 24:23 50:7 54:17 59:2 three 10:9 17:8 31:19,20 32:5 73:6 74:6 thursday 89:24 90:4 till 32:24 time 8:24 12:8 15:15,21 16:4,11 16:22 17:7,21,23 19:19 21:18 22:9 22:13 23:6,19,21 23:23,24 26:4 29:18 32:23 34:25 35:10 36:9 36:12,21,23 37:3 39:9 40:14 41:2 41:2,7,18 42:14 43:23 44:3 45:16 45:17 46:15 47:7 50:9,22 51:4,5 52:14 56:25 60:18 64:7 68:12 68:17,17 69:14 70:20 71:25 72:18 73:6 77:15 81:14 82:1 83:5 88:23 89:15 90:3 90:8 91:13,18 92:15 94:14 100:13,18,19 101:2 102:23 104:21 107:5,13 108:14 113:22 114:12 116:8 timely 52:20 times 30:3 31:1 36:24 95:16 timing 40:17 95:14 tit 30:5 today 77:9 79:10 83:15 97:4,7 token 42:17 told 48:9 87:18 93:16,17 97:3,12 98:12,12,22 100:2,10,15,24 104:8,11 105:2,4 108:6,12 tom 6:13,17 top 35:23 66:2 71:16 82:22 89:17,19,20 90:10 total 63:22 70:16 totally 29:13,19 touch 87:17 tour 38:21,22 tours 38:19 39:2 towercreek 2:8 trace 46:9 track 48:10 58:4 tracking 45:7 58:2 67:24 training 90:13 transaction 20:7 20:12,25 23:3 transactions 33:22 34:11 44:1 44:1 55:4 58:17 76:16 transcript 116:4 118:7,12 transcription 116:7 transfer 16:22 19:2,10 22:8 27:15 48:22 50:22 51:3 52:22 68:14 73:4 90:5 transferred 22:2 24:15,17 64:21 110:4 transferring 16:15 27:17 61:14 transfers 9:9,12 33:9,11,13 77:3 77:9 78:9 113:18 114:14 translate 69:11 treat 68:9 treated 20:9,15,17 43:14 46:12,17 46:22 51:10,13 51:17 52:6,7 54:1 57:4 67:14 67:17 68:13 70:5 70:6,7 71:17 trends 87:9 true 10:4 30:25 98:5,7 116:6 118:12 try 13:6 15:3,14 42:18 66:9 87:18 89:16,17 107:18 trying 13:7,9,12 15:7 31:7 39:18 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 44 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 130 57:12,16,18 41:1,3,6 81:25 58:10,18,22 85:8 86:11 88:17 59:23 60:11,24 111:19 tuesday 90:5 61:15,21 62:10 turn 14:22 62:12,21 63:4,16 turned 31:2 64:12,21 65:21 turning 61:14 65:25 66:17,23 tv 61:8 67:2,5,6,15 68:7 two 17:7 26:15,21 68:8 69:12 70:7 38:8 58:15 73:6 70:11 71:9,14,25 81:8 82:5 85:14 72:10,14,19 89:23 105:20 73:16,18 75:8,11 106:21 76:15,17,19 type 56:21 77:12 107:22,25 typed 33:19,20 109:3,8 undersigned 82:13 typewriting 116:3 118:10 understand 64:25 88:13 U understanding 13:21 106:17 u 5:1 6:1 undone 23:3,5 ub 5:4,6 10:13 unfortunately 13:2 21:24 ubohap 69:10 unguarantied uhhuh 80:17 56:4 ultimately 19:18 19:19 21:15 29:7 united 1:1 unprofitable 31:6 unable 7:9 uncle 1:9,18 8:4,7 unusual 38:21 8:23 9:2,9 10:13 upper 10:12 76:11 use 29:16 42:12 10:20 12:6,13 60:24 62:2,10 13:9,14,20,22,25 71:6 83:16 14:6,15,20 15:2 usually 31:15 15:5 16:7,21,24 37:25 17:1,10,11,14 18:3,5,7,19,24 V 19:2,5,10 20:3,8 20:14,19,22 21:5 v 5:1 vacant 17:21 21:7 25:11,23 vacations 25:21 26:5,24 27:3 29:7,25 30:10,15 value 14:16 23:7 23:20 24:18 70:9 30:16,19 31:14 110:20 31:23 32:9,14,19 33:9,19 34:7,8,9 various 11:23 28:8 44:24,24 34:10,22 35:5,14 35:17 37:6,11,14 vendor 36:20 37:19,20,22 38:3 vendors 34:17 37:5 38:7,11,12 39:9 versus 24:5 48:15 39:14,20 40:11 68:4 40:23 41:4 42:7 violent 104:16 42:8,20 43:17 votes 11:13,13 44:3 45:1,3,8,9 45:23 46:4,24,25 vs 1:6 47:24 48:22 W 53:16 54:11,14 55:25 56:15,18 w 1:9 56:24 57:3,7,9 w2 51:8,8 wages 51:10,18 52:6,7,9,10,13 52:25 wait 27:18 waiving 98:23 walls 80:4,9,13 104:2 want 8:25 15:13 15:22 22:7 23:17 26:20 41:5 51:7 59:4,10,12 78:20 78:21 84:15 88:1 88:15 90:12 94:7 94:9,25 111:11 114:20 wanted 10:6 23:15 71:24 79:23 101:23 warehouse 69:18 wash 19:24 wasnt 22:11 41:12 45:22 49:7 50:15 61:22 64:16 72:20 83:20 watch 66:12 water 24:20,22 way 15:9 21:23 22:7 26:15 29:15 30:14,21 45:7 58:2,2 67:21,24 68:1,15,20 82:8 82:9 83:3 85:22 90:12 110:11 ways 26:15,22 wed 71:19 week 44:23 89:24 weeks 44:24 82:5 89:23 welcome 114:25 went 26:2 33:15 33:17 36:11,18 37:24 43:2 48:15 62:12 63:3 76:14 76:20 102:23 103:10 105:3,6 107:2 wes 114:20 wesley 2:13 6:14 west 1:23 2:23 weve 7:12 21:18 63:1 65:9 78:25 97:22 114:5 whats 12:19 26:8 60:17 66:1,7 80:23 whos 84:8 wild 94:8,10,12 william 2:20 105:3 wish 117:4 withdrawals 49:14 51:21 52:4 withers 3:3,4 35:8 48:17 50:17 53:6 53:10 55:16 59:7 59:9 63:24 78:24 79:3,9,15,18 85:13 99:3 114:1 withheld 52:14 witness 7:4 28:22 35:11 44:9 53:12 59:10,14,21 64:2 64:14 76:2,6 79:7,12,16 82:18 85:17,21 92:5 94:11 97:24 98:4 98:11,13,16,19 99:18 107:21 111:2,23 113:20 114:7 116:15 witnesses 7:8 79:24 97:23 99:21 105:16,19 wondering 10:2 82:19 woolf 2:13 6:14 114:21,24 word 80:14 84:16 95:10 100:20 106:10,16,18 107:3 words 81:23 85:4 86:15 95:7,9 work 8:15,17 41:16 74:17 78:14 101:25 102:2 105:25 108:8,15 working 12:8 works 78:10 91:8 91:9 worksheet 48:13 worksheets 48:8 worried 91:11 worries 79:18 worth 23:8,9 25:3 wouldnt 20:21 72:23 wrap 113:25 write 81:7 82:9 84:13 101:6 104:12 writing 37:21 45:6 45:9,18 81:11,12 82:9,24 86:24 89:14 94:15 111:4 written 9:15 37:18 45:19 47:1 54:4 57:25 82:8 85:24 111:17 wrote 52:25 67:2 67:6 86:19 104:10 111:2,5 X x 4:2 Y y 5:1 yall 49:2,17 50:12 51:13 yeah 9:19 28:18 38:20 39:17 51:13 77:20 79:7 88:3 107:5 108:22 111:20 114:2 year 29:20 31:3,3 31:5,9,15,18,20 36:12,24 47:14 49:21 51:9,11,23 51:24,25 52:19 62:6 64:4 96:10 years 17:8 71:19 yesterday 7:6 99:2 youre 8:11 9:7 24:4 27:20 28:24 42:20 43:15 44:12 45:13 47:7 47:9 51:15 63:4 63:24 77:8 85:19 88:3 92:14,15 93:12 98:10 114:25 youve 15:1 24:2,3 78:21 88:5 Z 0 000 24:25 25:1,2 29:4 33:1 36:6 46:21 47:11 50:7 50:12 60:21 61:10 66:24 70:17 71:5 74:21 83:21 109:7 08 69:21 1 Tom Crites & Associates International, Inc. critesintl.com Case 4:12-cv-00139-WTM-GRS Document 161-1 Filed 05/06/13 Page 45 of 45 30 (b)(6) Deposition of Paula Deen Enterprises, LLC, et al., by Karl Schumacher Lisa T. Jackson v. Paula Deen, et al. November 21, 2012 Page 131 1 1:24 7:7 28:12 29:12 64:4 118:11 10 5:3,14,14 6:5 89:22 114:3 100 33:1 11 7:5 28:13 72:8 114:8 111 5:15 113 5:17 116 4:14 117 4:15 118:11 118 4:16 12 5:5 7:5 9:8 28:13 53:7,8 78:7,15 114:6,11 12cv0139 1:7 13 7:5 28:13 73:4 78:7,15 114:6,11 14 7:7 28:13 150 38:7,13 153884 66:3 15th 90:9 16 89:22 114:3 17 82:14 115:4 18 7:7 28:13 188 47:12,13 19 5:11 82:14 85:16 190 2:9 19th 85:22 2 2 16:13 47:7,8 64:4 20 50:7,11 90:22 200 25:2 37:23 38:1,3,6 2000 112:9 2004 36:10 2007 36:5 43:24 74:7 2008 32:24 47:4 47:14 69:20 2009 25:8 70:22 70:23 111:14 112:2,5,7,11,22 113:1,2,5 200andsomeod... 23:9 2010 5:5,9,11,13 5:15 12:23 15:18 81:2 88:9 110:7 112:2,4,10 113:5 2011 53:8 70:25 71:1 2012 1:24 6:20 65:15 72:9 118:20 2013696 2:16 21 1:24 218 1:23 2:23 22 5:3 10:15 33:9 35:9 37:17 39:8 65:24 23 5:5 12:17,20 230 53:8 2363311 2:25 24 5:7 76:8,10 78:22 25 5:9 80:21,24,24 250 66:11 26 5:11 36:6 84:25 85:2,20,21 87:7 260 25:4 27 5:13,13,14 87:25 88:7,9 28 5:15 111:8 2807 118:24 29 5:17 85:16 89:22 113:14,16 3 3 7:7 28:12 85:16 85:16 111:16 112:3 113:5 30 1:16 7:3,14 48:19 50:12 53:8 59:19 89:22 97:23 98:4,19 99:21 115:2 300 25:1 83:21 109:7 300andsomeodd 54:17 300andsomeod... 23:8 30339 2:10 30some 50:7 3101 2:8 31401 2:15,24 3:6 33 1:24 390 74:21 4 4 1:7 60:21 61:10 113:2,5 114:3,3 115:4 40 66:14 408 2:14 429 111:16 112:3 4478400 3:7 450 38:5 5 5 5:5 46:21 113:2 113:6 50 46:13,14 69:3 72:21 509 16:13 52 53:8 597 112:23 5th 6:20 12:23 15:18 118:20 6 6 1:16 7:3,14 48:19 59:19 97:23 98:4,19 99:21 115:2 60 24:25 649 38:14 67 47:8 688 112:23 7 7 4:4,9 5:9 36:5 47:12,13 112:14 112:23 113:2,6 75 66:24 76 5:7 770 2:11 8 8 3:5 89:22 80 5:9 41:10 70:17 71:4 84 5:11 8590753 2:11 87 5:13 881 47:8 9 9 5:4,8,15,18 10:1 10:18 14:17,24 28:4,10,15,19,21 29:4 47:11 90 41:10 71:5 91128 6:12 912 2:16,25 3:7 961 111:16 112:3 99 14:17,24 Tom Crites & Associates International, Inc. critesintl.com