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U P O N C O M M E N C I N G |
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| THE COURT: | | So, its top of the list by order is Number 7, Wittenberg and Geisweiller. |
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| THE CLERK OF THE COURT: | | Number 7, Wittenberg and Geisweiller, please. |
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| THE COURT: | | Good morning. |
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| MR. WITTENBERG: | | Good morning. |
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| THE COURT: | | Just have a chair for a second, gentlemen. Mister -- youre Mr. Wittenberg? |
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| MR. WITTENBERG: | | Yes, I am. |
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| THE COURT: | | And Mister -- |
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| MR. GEISWEILLER: | | FREDERIC. |
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| THE COURT: | | -- is it Geisweiller? |
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| MR. GEISWEILLER: | | Thats correct. |
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| THE COURT: | | All right, up here, Mr. Wittenberg, please. |
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| URIEL WITTENBERG, Sworn: |
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| EXAMINATION IN-CHIEF: |
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| THE COURT: | | Mr. Wittenberg, you claim from the defendants Locomotive Investments and Mr. Geisweiller for services rendered. What type of services were they? |
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| THE WITNESS: | | Computer consulting services. |
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| THE COURT: | | And specifically? |
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| THE WITNESS: | | Mr. Geisweiller contacted me in 1997, last year, to move certain software applications that he had running on old computers with which I had worked in previous years to a new computer system that had been set up after I had left the country. I was living elsewhere and that another computer consultant subsequent to me had set up for him. |
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| THE COURT: | | All right, and did you agree on a fee? |
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| THE WITNESS: | | We had by precedent a very well established system of compensation dating back to 1987. It was simply hourly fees, payment for every hour of work. |
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| THE COURT: | | All right, at what rate? |
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| THE WITNESS: | | At eighty dollars an hour as of 1990. |
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| THE COURT: | | All right, and so, you had in the past billed this defendant $80.00 an hour for work done? |
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| THE WITNESS: | | Routinely. |
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| THE COURT: | | And had been paid? |
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| THE WITNESS: | | Yes. |
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| THE COURT: | | All right, when -- what reason were you given for your fee not being paid? |
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| THE WITNESS: | | The work that was to be done, I explained in advance that this was something that required some exploration and research, results were not guaranteed. I was in town for a short time. There was a limited time frame in which to do the work. I would give it my best efforts; I expected success, but there were not results guaranteed.
In fact, the results were not achieved. That was the basis for Mr. Geisweiller being unwilling to pay the fee. However, the full hours reported on the invoice, the fourteen hours of work were performed in good faith. |
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| THE COURT: | | So, you were not able to effect the transfer of the software? |
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| THE WITNESS: | | Essentially, thats right. |
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| THE COURT: | | Im sorry, Im sorry, I used the wrong word. You werent able to effect the movement of the software applications to the new system? |
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| THE WITNESS: | | Well -- |
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| THE COURT: | | Do you know whether or not they were ultimately moved? |
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| THE WITNESS: | | I dont know that. I actually moved them, but they couldnt work on the new system. |
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| THE COURT: | | And they couldnt work on the new system, why? |
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| THE WITNESS: | | For technical reasons that I found in the course of the work. It -- it involved programs that I had not personally written. One was a communications program that seemed to perform differently on the new computer system. Apparently, the communications ports behaved differently, which was unexpected.
And there was another application also not written by me, an accounting application, which for some reason had worked fine under the old system. It was a DOS application, but would not work in the DOS window of Win 95, the DOS shell of Win 95. It normally should. |
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| THE COURT: | | Um-hmm, were these the only two that didnt work, or were all the applications inoperative in the new system? |
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| THE WITNESS: | | One of those applications, the communications application, was integral to an application that I had written. So, if that one couldnt work the one I had -- had written could not effectively be moved.
So, it -- it was -- basically, it was -- |
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| THE COURT: | | It was a Catch 22? If you couldnt get that one -- and that one, you say you didnt prepare, the communications application? |
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| THE WITNESS: | | I had not written that application. It was bought by a third party, written by the third party. |
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| THE COURT: | | All right, is there anything else you want to tell me, Mr. Wittenberg? |
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| THE WITNESS: | | Well, I had a list of points, actually, to -- to make about this. Primarily, the -- the well-established relationship and terms of payment for fees rendered. |
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| THE COURT: | | Well, I mean, essentially, what youre saying is, you did the work? |
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| THE WITNESS: | | Yes. |
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| THE COURT: | | You advised the defendant prior to your commencing the work that there was a risk that the work would not be completed to their satisfaction -- |
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| THE WITNESS: | | Right. |
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| THE COURT: | | -- because of the technical complications? |
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| THE WITNESS: | | Yes. |
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| THE COURT: | | And youre telling me that there was an understanding that, regardless of the result, you would be paid your hourly rate? |
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| THE WITNESS: | | Yes. |
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| THE COURT: | | And you want your hourly rate? |
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| THE WITNESS: | | (laughs) |
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| THE COURT: | | Okay. |
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| THE WITNESS: | | Thats about -- |
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| THE COURT: | | Is there any more that you have to tell me? |
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| THE WITNESS: | | Let me just add, to make it quite clear, that Mr. Geisweiller understood in advance that this work would be billed at the same hourly rate that had been in effect since 1990. There had been a couple of minor, one or two-hour things, that I had performed in -- on preceding visits to Toronto from where I live in New York, including one in January, 97.
So, for that reason, I was explicit in telling him that since this was a more substantial amount of work he would be billed for this. After my first day of work I explicitly told him that that days work would be five hundred dollars ($500.00) and I told him the -- the next days work would also be billed in addition to that. And he nevertheless wanted me to return on the second day to continue the work.
We had had a business relationship at that point for ten years. I wrote a personal, three-page letter explaining the issue pretty thoroughly and he didnt respond to that letter, and later, when we spoke by phone he told me he had not read it.
As to the -- theres a -- a defence that he has offered in the statement to the Court. And in that statement he suggests that the fourteen hours is an overstated figure and that its inaccurate. When we spoke on the telephone, he never suggested that the figure on the invoice for fourteen hours was inaccurate. That was accepted. And he has no reason to doubt the amount of hours that were worked, since either he or members of his staff were present throughout the work that I did during those two days. |
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| THE COURT: | | What about the allegation that you incurred costs by calling other consultants -- |
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| THE WITNESS: | | Well, its true. I did -- |
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| THE COURT: | | -- who later submitted bills? |
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| THE WITNESS: | | It was in his interest that I do that. We had a -- I had an initial problem of physically moving data from the old computer system to the new system. I could explore this on my own and spend hours trying to understand how to do that, or I could call somebody who had actually already done exactly this job.
That had been -- it had been worked on and understood. The consultant who had installed the new computer system knew how to do that. And in fact, he had a cable that was necessary to do that which was not on the premises. So, yes, absolutely, to save time I briefly consulted by telephone with the other consultant. The cable wasnt available. I went out to a -- a store to get a cable to move the data. And that enabled me to -- to move further in getting the work, and to actually get the data and the software transferred to the new computer systems.
The defendant in his statement also complains about my rate being excessive. And I just cannot see that this is -- |
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| THE COURT: | | Well, youve already given me your evidence. |
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| THE WITNESS: | | Okay. Thats it. |
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| ****** |
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| THE COURT: | | Okay, Mr. Geisweiller, you may -- just a moment, Mr. -- |
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| THE WITNESS: | | Wittenberg. |
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| THE COURT: | | -- Wittenberg, sorry. You may, if you wish to ask Mr. Wittenberg questions arising out of his evidence at this time. Youre not obliged to. And Ill give you a full and complete opportunity to give me your evidence, but if you want to ask him anything, now is the time to do that. |
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| MR. GEISWEILLER: | | Right. |
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| THE COURT: | | Do you have any questions? |
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| MR. GEISWEILLER: | | No, at the moment I dont have any questions. The only question -- |
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| THE COURT: | | There will be no other moment, Mr. Geisweiller. This is the moment. |
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| MR. GEISWEILLER: | | I -- I do have a question for you, Your Honour. |
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| MR. GEISWEILLER: | | Is, in my statement of the defence I had asked if my arguments could be heard in French. And Id like to make sure -- |
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| THE COURT: | | Well, they cant be heard in French before me unless you want to make them in writing. But the difficulty is, Im not bilingual. |
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| MR. GEISWEILLER: | | Right. |
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| THE COURT: | | And what should have been done is, a formal motion should have been made to have the trial conducted in French. |
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| MR. GEISWEILLER: | | Right. |
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| THE COURT: | | So, I cannot assist in that regard. |
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| MR. GEISWEILLER: | | No, and I -- I thought that this was what I had done when speaking to the -- to the clerk. |
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| MR. WITTENBERG: | | A -- a request was made in court papers to which I replied. |
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| THE COURT: | | Ah, the difficulty is that I -- I cannot grant that today. |
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| MR. GEISWEILLER: | | Right, right. |
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| THE COURT: | | So, we are here and ready to proceed. |
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| MR. GEISWEILLER: | | Very good, we will proceed. |
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| THE COURT: | | Do you feel somehow hampered by -- |
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| MR. GEISWEILLER: | | Well, yes, I do, because, you know, the defendant is -- is a student of the higher levels. He is a P-H-D. I mean, certainly, the abilities that he has of handling the language and technicality aspects are not at all at par with mine. |
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| THE COURT: | | Well, Im -- this is not as far as Im concerned an issue in this matter. I mean, its a contract dispute and, essentially, I mean, unless youre going to produce some type of expert evidence that he should have been able to do this and did not complete the job as the result of a lack of competence, it seems to me theres nothing here except whether or not the rate was agreed upon and accepted.
If thats the case, then thats whats involved. And I dont know that theres any -- I take it, Mr. Wittenbergs first language is not French, so it seems to me that to grant your motion to have the trial heard in French is, maybe, prejudicing him in the same type of manner. |
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| MR. GEISWEILLER: | | Um-hmm. |
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| THE COURT: | | But I dont think, from what Ive heard, that -- |
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| MR. GEISWEILLER: | | All right. |
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| THE COURT: | | -- you know, that theres any great difficulty in dealing with this. But lets see what happens. If you run into trouble, we can always try to do something about it. |
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| MR. GEISWEILLER: | | Fair enough. |
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| THE COURT: | | Do you have any questions of him? |
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| MR. GEISWEILLER: | | No, I do not have any questions. |
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| THE COURT: | | Thank you, Mr. Wittenberg, you may step down. Mr. Geisweiller, up here, please. Oh, before, just before you give your evidence.... |
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| ANOTHER MATTER WAS ATTENDED AT THIS TIME |
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| FREDERIC GEISWEILLER, Sworn: |
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| THE CLERK OF THE COURT: | | Can I ask for silence in the court, please. Can I ask for silence in the court, thank you. |
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| EXAMINATION IN-CHIEF: |
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| THE COURT: | | Yes, Mr. Geisweiller. |
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| THE WITNESS: | | Uriel and I have had a relationship, a business relationship, and that as he clearly stated, in fact, goes back years and years. However, the financial arrangement for settling the -- his participation to the ongoing development has varied greatly from time to times.
His rates has, was at a certain level, it went up. And there was a particular project on which he worked for us which was helping us network the computer which ended up being a complete failure and it ended up costing a lot of money. At that point, I had made the -- the argument with him that if there were no result, certainly, one could not expect to have the fee paid in full. And -- |
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| THE COURT: | | When did you make that clear to him? |
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| THE WITNESS: | | I beg pardon? |
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| THE COURT: | | When did you tell him that? |
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| THE WITNESS: | | I would say it could have been five years ago. |
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| THE COURT: | | But, before this job? |
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| THE WITNESS: | | Thats right, it was before -- yeah, Im -- Im going back in the history of our relationship and the fee structure which Uriel has -- has mentioned.
So, what -- what I -- and -- and as a result of our negotiation the fee was reduced to a substantial amount, bearing in mind that, yes, he had been spending time; but as well, there had been no result achieved. |
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| THE COURT: | | Well, all right, let me ask you this question, Mr. Geisweiller, because this will assist me. I have to tell both of you, Im not prepared to fix a fee. Thats not my job.
My job is to determine whether or not there was an agreement between the parties with respect to a fee. In your mind, was there an agreement respecting a fee? |
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| THE WITNESS: | | In my mind, no. The visit that was made to Toronto was not specific -- specifically made to address our need and it was on the occasion of a long weekend or a family trip. And I -- I think it was clearly understood that since Uriel had extra time he would come and look at the system and appraise the situation and, hopefully, fix the problem.
And it appeared at the moment that it was trivial. So, obviously, at that point there was no question the fee or the fee shouldnt be paid. If Uriel came and spent a few hours and had, in fact, achieved the objectives that we had said I think his fee would have been paid in full.
The problem came across that, in fact, he had no knowledge of the new platform we were working in, which is very surprising for a developer; because what were talking about are products which are readily available to anyone. Windows 95, for example. Windows 95 was not an environment in which he was familiar.
So, in order to do the simplest task, such as connecting computers together, he had to call my own -- my own consultant. And calling the consultant meant waiting for one to get on the Internet, somebody giving the answer. It was a tremendous amount of time wasted in terms of efficiency and a tremendous amount of time spent downstairs having coffee and beverages, since the place of work is a restaurant.
So, Uriel using the resources that were offered to him by my outside consultant still managed to -- an attempt at doing something, but never succeeded. The -- the bottom line -- |
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| THE COURT: | | Did you eventually get the problem solved? |
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| THE WITNESS: | | Yes, I did. The -- the problem was, for anyone familiar with Windows, it was really trivial. I think -- |
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| THE COURT: | | How much did you pay to solve the problem? |
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| THE WITNESS: | | It was three hours, was that work. It came as part of a larger deal, but the person -- there was a buffer port which gave all sort of problems to Uriel. It was very easy to clear the -- the buffer that was in the port and to have communication.
So, shortly after that and ever since, the particular program that Uriel designed called Risk has been running under a DOS sub-shell of Windows 95 and that has been the case for two years. |
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| ****** |
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| THE COURT: | | All right, any questions, Mr. Wittenberg? |
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| MR. WITTENBERG: | | Yes, Your Honour. |
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| THE COURT: | | Can you stand when youre -- thank you. |
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| CROSS-EXAMINATION BY MR. WITTENBERG: |
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| Q. | | Your new program, the -- the Risk program, it actually was moved to your new network server as I attempted to do? |
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| A. | | Yes, yes, it is. |
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| Q. | | So, the old computer systems that you used to have before are gone now? |
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| A. | | Has been discarded. |
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| Q. | | Theyve been -- theyve been removed? |
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| A. | | Yes. |
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| Q. | | So, now you just have the -- the network in the office? |
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| A. | | I have a network. |
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| Q. | | Linking three computers? |
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| A. | | Yes. |
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| Q. | | And -- |
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| A. | | And a communication between Risk and the network. |
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| Q. | | Okay, and this is a three-hour job that your subsequent consultant was able to perform for you. Why did we speak about this particular job months in advance when I was in New York and why did you request my services during a four-day visit that I was making on personal -- for personal reasons to New York -- to Toronto from New York, when this is a small job that didnt require my work? |
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| A. | | You -- youre right, at the time that you and I were discussing it, we didnt know what the job would entail. You seemed to be the logical person to do it since you were the expert in Risk. Risk is a proprietary software that Uriel has designed so for me to go to the source of the creation of the software appear perfectly logical. |
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| Q. | | But didnt you know that this did not involve any work with Risk itself? |
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| A. | | Sorry, I havent finished answering. And in presenting this -- this aspect to you, it -- you -- you had no objection that you might be the good choice as a consultant to undertake or explore this task. |
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| Q. | | But werent you aware that it didnt require any knowledge of Risk to move Risk to a new machine? |
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| A. | | Well, Im not technical, but, certainly, I dont recall that you would have made me aware that this was not required and that somebody else would be able to do it. |
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| Q. | | Did any other consultant ever tell you that they -- they would willingly work on Risk and make modifications to Risk? |
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| A. | | It has happened. |
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| Q. | | In -- in this job, did you envision that work would have to be performed on Risk? That anybody familiar with Risk would have to modify it? |
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| A. | | Well, Risk is a big thing. You -- you know every module and every nooks and crannies of it and you know its limits and you know where it starts, when it ends. And -- and I dont know, as a user. For me, it is something that extracts information from one computer and put it in a readable format into another one.
There are many processes and which of these, certainly, I would expect the creator of the software to be aware of all these steps and, in particular, to know the new Window 95 environment well. And, I mean, Id like to point out that, in your own admission, you didnt know Windows 95. You were a Windows 3, which was an outdated version type of program.
As a result, we had to call all of these consultants. So, had you made it clear as youre trying to attempt to make it now, that, in fact your services were not needed when you came, I would not have hired you. I would have hired somebody else. |
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| Q. | | All right, what -- what Im trying to understand is that you -- you believe that Risk -- intricate knowledge of Risk was necessary to move one program from one machine to another. And I -- thats what Im having trouble understanding, because youre a fairly sophisticated computer user yourself. Youve PCs for at least ten years. I -- it would have seemed to me that you would know that to move a program from one machine to another does not require internal knowledge of how that program is programmed, how it has actually been developed? |
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| A. | | Well, no, thats -- thats a wrong assumption. I -- Im using Risk as a package. What youre telling me now is that this package is made of various module and some of them you know nothing about. But as a user and not as a programmer I want this package to work as well between these two computer as it should between these two computer.
So, I call you. If you had -- if you had had the reservation that you express today, my point is, then why werent they voiced and -- and why did we end up with you trying to perform a task for which you were not equipped to do? |
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| Q. | | I testified that I told you that I could not guarantee results when you initially inquired about this task. |
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| A. | | Yes, but could not guarantee a result is a bit different from suggesting that somebody else would do the work. In fact, you could have guaranteed that you were not going to do the work. |
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| Q. | | I -- I -- I was hardly in a position to guarantee I could not do the work. |
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| THE COURT: | | No, I think Mr. Geisweiller, what hes saying is that -- as I understand his evidence and you may want to pursue it, Mr. Wittenberg -- is that saying -- not guaranteeing results are one thing. But I think what hes suggesting is that since somebody else was, according to his evidence, capable of doing the work, saying not guaranteeing results is more or less a reflection on you as opposed to saying nobody can do this.
At least, thats what I understand his evidence is. In effect, what hes saying is, your statement that results could not be guaranteed were saying that you, personally, could not guarantee results. Somebody else -- |
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| THE WITNESS: | | Thats what I -- |
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| THE COURT: | | -- might -- |
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| THE WITNESS: | | -- thats what I meant to convey, yes. |
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| THE COURT: | | Yes, okay. |
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| MR. WITTENBERG: | | Yes, I -- I could not in the limited time frame. With enough time, I could certainly do it. It was something, as I said, that was not -- not -- as I said before, this was something that I had never done before. Of course, I was perfectly familiar with Windows 95 and I had been using it fulltime as a consultant to -- |
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| THE COURT: | | Well, I dont want your evidence. So, okay -- all right, so what youre saying -- okay, I understand. Any other questions you have of Mr. Geisweiller? |
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| MR. WITTENBERG: | | Well, yes. |
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| Q. | | You acknowledged at the first day of work that the fees for that day would be five hundred. But subsequently, you admitted to the Court that you owed only one hundred-fifty and Id like you to explain that discrepancy? |
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| A. | | Well, I dont think it was ever clear either that the first day five hundred would cost, the -- the first day would cost five hundred dollars. You immediately pointed out that there were, so far, no result. And the question was whether you came the next day, result would be achieved.
But, obviously, if the results had been achieved in a satisfactory manner I had no problem with the fees. I dont think this has been an issue in the past ten years. But I had indicated to you in previous experiences, in previous dealings with you, that objectives were really the means of determining the value of ones work. And if there are no -- there is no legacy of ones work, then how on earth could it be worth twelve hundred dollars? |
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| Q. | | All right, we have ten years of legacy and the unvarying terms since 1987 were that every hour of work is billed according to a fixed rate. And the invoices made that very clear. The number of hours is shown, the rate is shown and -- and the product is shown? |
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| A. | | Its absolutely true on the invoice and then we have negotiated abatement on bills when results were not achieved. And I think youve always really granted me discounts that were mutually acceptable to you and me. |
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| Q. | | Excuse me, can you recall the occasion on which that ever would have happened? |
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| A. | | Absolutely, the installation of the network by a third party which you came and assisted in -- in putting together. And the network never materialized. No one, including you, had the expertise to put this network together. The bill was phenomenal. The person who installed it immediately withdrew their bills. You had a fairly conservative bill and you -- you abated it by an amount that we both felt was acceptable, keeping in -- in mind the time had been spent, but that, again, results had not been achieved. |
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| Q. | | Now, who caused the problem that had to be repaired by me in the case of this network fiasco? |
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| A. | | Who did? |
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| Q. | | Who caused that problem? Did I have any part in producing the loss that occurred? |
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| A. | | Thats a difficult question to answer. |
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| Q. | | Or was it a third party that you hired? |
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| A. | | Well, I didnt personally hire them. This was on your recommendation that these people could come in and they could do a certain work based on your specification. |
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| Q. | | When and how did I ever recommend that third party for the installation of a network? I recall -- |
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| A. | | Just before installation. |
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| Q. | | -- recommending them for the sale of a PC and nothing more. |
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| THE COURT: | | Gentlemen, youre taking me into an area where youre not assisting me. The issue Im concerned with is this agreement for these services. |
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| MR. WITTENBERG: | | Q. Okay, let me ask if there was any doubt in your mind about the fees, the fee arrangement as it was understood, for the work that I would be performing when I arrived in April, 97 to do that job for you? |
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| A. | | In April, 97. |
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| Q. | | I dont understand this about a holiday weekend? |
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| A. | | Yes, I -- I assumed that we would have a flexible arrangement; that I would be appraised of the difficulty on an ongoing base. And that some cost would be associated to the objective that we wanted to reach. I, in fact, was very surprised that you as a consultant knew so little about what had to be done and had, in fact, not recommended somebody else. |
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| Q. | | Okay, you acknowledged after the first day that five hundred dollars were owing. Were you under the impression that results had been achieved during that first day? |
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| A. | | But, Uriel, I dont think it was presented in such a clear manner. You said, so far, the job, if I can complete it with a few hours tomorrow would be worth five hundred dollars. Again, if there is objectives that are achieved, a five hundred dollars fee, I -- is nothing that I would object to.
The question is that you come a second day -- |
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| Q. | | I think youre -- |
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| A. | | -- presumably at the same rate, and you have not made me aware of that. |
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| Q. | | -- I think youre distorting what I said. |
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| A. | | And -- and -- and -- well, youre asking me. And then there are no result achieved. I have also to say, Your Honour, that weve tried to negotiate this for -- |
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| THE COURT: | | No, I dont want to hear about that. |
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| THE WITNESS: | | Okay. |
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| MR. WITTENBERG: | | Q. Okay, five hundred dollars for work already done on the first day, or five hundred dollars for work that was prospectively done -- to be done the next day? |
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| A. | | With the -- with -- |
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| Q. | | Wasnt it clear that any additional work the next day would be beyond the five hundred dollars? |
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| A. | | -- with a few hours the next day. With a few hours the next day you might be able to solve the problem. |
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| Q. | | When you acknowledged the five hundred, was that not for time that had been served on that first day already? |
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| A. | | No, I certainly I dont think you ever presented it this way. I think you indicated that you were close. You may have to spend a few hours the next day. You couldnt spend much more than a few hours; you had a -- a plane to catch. And that, you know, at that time, that point the bill would be five hundred dollars. It could be more if you were going to run into -- |
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| Q. | | Okay. |
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| A. | | -- more time spent. |
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| Q. | | Youre under oath. So, youre saying that when you acknowledged the five hundred, the way you understood that was that that included time not yet spent that would be spent the next day? |
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| A. | | The five hundred was in a conversation area. It was not a question that was direct where you said, yes, you accept it or you dont accept it. It was part of a conversation where, in that conversation there was a statement. Whether there was an affirmative reply from me, Im not -- remains to be determined. I really dont think so. But I think I came out of the -- out of the discussion with a conclusion that if, over the course of the next day, spending a few hours, the problem, the objective could be met, this was a fee well worth paying. |
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| Q. | | Do you acknowledge that you asked, after the five hundred, if the next day would be billed in addition to the five hundred? |
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| A. | | No. |
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| Q. | | You asked me that -- you dont recall asking about the next days fees after I stated that that days fees already amounted to five hundred? |
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| A. | | No, no, obviously, if you go into times overrun, that the bill would be adjust -- adjusted upwards is something that I would not question and not object to. |
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| Q. | | Okay, Fred, how much -- how did you believe that I arrived at fees for work done, if not on an hourly basis, over ten years? |
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| A. | | Im not sure, because there was no invoice that was left on my desk. The invoice, incidentally, was somewhere in the computer. It was a difficult task to go and retrieve it, not knowing what computer it was in. I never received an invoice from you by mail. Therefore, there was never any discussion.
The only discussion that arose about the payment of the invoice was when that you looked at it and considered it was past the due date, and, in fact, it had been past the due date, because I had never received it. So, there was very little discussion that I could have had without an invoice to argue. Your invoice is -- is extremely vague. I mean, you state fourteen hours. Thats all that you say. Its not -- |
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| Q. | | Okay. |
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| A. | | -- I mean, its not fourteen hours of work, we all know that. Its fourteen hours on the telephone. Its fourteen hours having lunch downstairs on two occasions. Its not a true fourteen hours. |
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| Q. | | Not at all. Not at all. Of course, that time is excluded, time having lunch. No -- no time was spent on the phone. |
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| A. | | Well, did you -- |
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| Q. | | Fourteen hours of work were performed. Thats what was billed. |
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| A. | | -- did you produce a time attendance log, showing clearly when you -- |
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| THE COURT: | | Well, that should have been done at the pre-trial. If that wasnt requested, Im not going to get into it. |
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| MR. WITTENBERG: | | And logs were never requested, never presented throughout the ten years of services. So, I dont know why this one final -- |
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| THE COURT: | | Well, its not an issue, Mr. Wittenberg. Im not asking for it now; doesnt affect it. |
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| MR. WITTENBERG: | | Thank you, thank you, Your Honour. |
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| Q. | | The work had been performed. I left town. You had no invoice. What did you do next, just assume that the amount would be zero? |
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| A. | | But Id like to correct you that the work had not been performed. You had spent time, which is different. I would have expected a call and trying to determine how much you would be invoicing me. But, I think, you know, you have this wrong opinion that the job was performed. It really was never performed. Time was spent. We -- we recognize that, and we recognize that there is some fair compensation for time spent that has achieved nothing.
Thats not an issue, so I was expecting a phone call. The phone call that I got was to demand payment of an invoice that I still dont had. And I said that sounds pretty unreasonable. I think we should come to a better -- better agreement. At that point I think and in all subsequent phones -- phone conversation that we have had, your attitude was: Im owed this and thats how much you owe me. Here was no budging. |
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| Q. | | I believe that we spoke immediately after I performed those services. We spoke on the phone and you acknowledged to me that you had printed the invoice from the computer and that you had not read it yet, but you had it physically? |
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| A. | | I did not. |
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| Q. | | Is that not the case? |
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| A. | | The first time I have seen a invoice was in your statement of the claim. |
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| Q. | | Now, were you acquainted with the alternative consulting arrangement whereby a -- a fixed fee is quoted for a particular job that is performed, and then the hours become irrelevant, because -- |
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| A. | | Um-hmm. |
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| Q. | | -- either the -- the job is performed completely and all the results that are expected are delivered; in which case, the amount becomes oweable. Or, nothing -- nothing is owing if the work is not performed? Were you familiar with that arrangement? |
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| A. | | There -- there are -- I dont know, many answers in this question. Was I aware that there had be another manners of billing ones for service offered that were other than time and material, yes. That a fixed quote would be offered, absolutely. Our arrangement in the past, that -- that we work either one, usually based on circumstances. So, I had no idea that when youd be coming on this day it would be on a fixed cost or it would be on the time and material. Quite honestly, that wasnt pretty much the issue. |
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| Q. | | Well, we had worked on a fixed fee on at least one occasion before, hadnt we? |
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| A. | | Um-hmm. |
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| Q. | | I had quoted a fixed fee and the time I spent doing it didnt matter, because once it was done, then you owed the amount that had been agreed on. So, that was an alternative arrangement that you were aware of and you always had the option of requesting that. But did you in this case, for this particular job? |
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| A. | | Did I request it? Its not just the client request it, its also the service provider. |
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| THE COURT: | | The question was: Did you request it, Mr. Geisweiller? |
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| THE WITNESS: | | No, I dont think so. |
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| THE COURT: | | Okay. |
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| MR. WITTENBERG: | | All right. |
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| THE COURT: | | Yes? |
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| THE WITNESS: | | I dont think it was offered. |
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| THE COURT: | | Go ahead. |
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| MR. WITTENBERG: | | Q. If -- if you didnt request it, I dont think that you would have a reason to expect a fixed fee arrangement to be in place, because we had never discussed a fixed fee. |
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| THE COURT: | | But, Mr. Wittenberg, how is this relevant? I mean... |
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| MR. WITTENBERG: | | Your Honour, I can answer that. |
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| THE COURT: | | Im sorry? |
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| MR. WITTENBERG: | | Ill -- Ill answer your question. |
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| THE COURT: | | All right, please. |
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| MR. WITTENBERG: | | There are two arrangements. |
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| THE COURT: | | Oh, I understand. Ive read your documents, but youre saying that the arrangement from your perspective that was in place was an hourly payment arrangement. And I think Mr. Geisweiller, to be fair, has indicated that he was aware that there was an hourly rate arrangement in place, but you had negotiated it in the past and he felt secure that you could negotiate it in the future. |
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| MR. WITTENBERG: | | Ah -- |
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| THE COURT: | | So, why I have to hear evidence as to why he didnt choose a fixed rate doesnt assist me. Thats all Im saying. |
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| MR. WITTENBERG: | | Okay. |
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| THE COURT: | | I appreciate there are different ways of doing work, but to ask him why he didnt agree to the fixed rate when hes already given evidence as to what the arrangement was -- |
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| MR. WITTENBERG: | | Let me -- let me focus on that point of Mr. Geisweillers understanding of the arrangement. I would say -- I would like to ask about the extent to which this arrangement varied. |
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| Q. | | Wasnt it, in fact, an absolutely stable arrangement? Since 1990, the last time the rate was increased, wasnt it absolutely standard for the hours worked, no matter what results, if we were particularly fast or slow on a day in terms of how rapidly results could be produced, didnt we always have a simple fee arrangement of eighty dollars an hour for seven years preceding this job? |
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| A. | | We -- we had a flexible hourly fee arrangement. It varied in different directions as terms of rates went, depending if -- whether it was a particular profit times, or whether it was a difficult time. And at the end, there was always some adjustment again based on result, where the fee might be paid in full, where there might be some discount applied to the fee, where there -- there might be some exchange made with an account downstairs.
I dont recall that there has ever been a bill that was paid without some form of negotiations prior to issuing the bill to make sure that both parties felt that what would be presented would be fair to both. |
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| Q. | | Okay, one -- one question: This -- this time that there was a -- an adjustment discussed in -- in the case of the network problem, I recall an adjustment being made in that case. Do you recall any other instance when that was ever done? That was around nineteen -- you were guessing five years ago. I would say, probably around 1992 -- |
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| A. | | Yeah, I -- |
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| Q. | | -- a discount was applied -- |
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| A. | | -- I recall that was done on a constant base. It was done on a constant base and, again, sometime the abatement was in the form of a house account at Le Select. |
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| Q. | | Im -- Im asking for one other example when the amount charged was reduced in that manner? |
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| A. | | Id say almost all of them. |
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| Q. | | Could you give a specific example of a reduction that was -- |
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| A. | | No, I do not have your billing history here. |
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| Q. | | No, just any -- any thing where you thought, The amount is too high here. There should be a downwards adjustment? |
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| A. | | Well, do you -- do you acknowledge that you have received the benefit of -- of a house account at Le Select bistro in exchange for service rendered? |
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| Q. | | I -- Im not -- Im not asking about that. That was, basically, that was an exchange of services. Im asking about a reduction in my consulting rate? |
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| A. | | Right, which was exactly the same. It was an exchange of services -- |
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| Q. | | No, no. |
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| THE COURT: | | Mr. Geisweiller, lets deal with a specific answer to the specific question. The question was: Other than the network problem, are you specifically aware of any other time when an invoice was reduced or readjusted after it was rendered? Its a simple answer? |
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| THE WITNESS: | | Right, but -- but I have to give a date and -- |
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| MR. WITTENBERG: | | No. |
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| THE COURT: | | He just wants to know if you can think of any other time? Not a particular date, but if you can think of any other time? |
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| THE WITNESS: | | Yes, I would say that has happened quite often, and -- |
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| THE COURT: | | How many times would you say it has happened? |
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| THE WITNESS: | | Im short on specifics, because I dont have the file. |
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| THE COURT: | | Okay. |
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| MR. WITTENBERG: | | No other questions. Id like to give further testimony. |
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| THE COURT: | | All right, you can step down. |
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| THE WITNESS: | | Thank you. |
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| ****** |
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| URIEL WITTENBERG, Previously sworn: |
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| THE COURT: | | Yes, Mr. Wittenberg? |
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| REPLY EVIDENCE: |
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| THE WITNESS: | | Your Honour, indeed, there was one occasion around -- |
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| THE COURT: | | Well, other than the one occasion which you -- |
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| THE WITNESS: | | There was no other occasion, ever. I -- I rendered the work, I performed the services, I worked the hours in good faith. I wrote down the hours and they were billed according to the rate. The rate never changed from 1990 onwards. I have half a dozen invoices that go over that time period that I can produce that show hours worked times eighty and the amount owing. The house account had nothing to do with it. |
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| THE COURT: | | All right, any questions arising out of that, sir? |
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| MR. GEISWEILLER: | | No, sir. |
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| THE COURT: | | All right, thank you very much. |
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| MR. WITTENBERG: | | Thank you. |
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| THE COURT: | | Gentlemen, Im going to reserve briefly on this. Youll have my decision by mail, probably within the week. Does the Court have your address? |
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| MR. WITTENBERG: | | Yes, they do, Your Honour. |
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| THE COURT: | | Court has your address? |
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| MR. GEISWEILLER: | | Yes, yes, it does. |
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| THE COURT: | | Just while youre here, though, this work was clearly done for the company? It wasnt done for Mr. Geisweiller personally, was it? |
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| MR. WITTENBERG: | | Thats right. |
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| THE COURT: | | I mean, if any judgment thats given here is not against Mr. Geisweiller in his personal capacity? Is that correct? |
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| MR. WITTENBERG: | | Thats correct. Mr. Geisweiller is the owner, but -- |
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| THE COURT: | | Well, hes -- its a limited company. |
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| MR. WITTENBERG: | | Youre right, Your Honour. |
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| THE COURT: | | Of which Mr. Geisweiller is clearly the director or the directing mind. This work wasnt done for him personally? |
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| MR. WITTENBERG: | | Thats correct. |
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| THE COURT: | | Okay, thank you very much. |
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| MR. WITTENBERG: | | Thank you. |
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| MR. GEISWEILLER: | | Thank you. |
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