Free Memorandum - District Court of Arizona - Arizona

Case 2:O4—cv—OO408-SIVIIVI Document 75-4 Filed O1/17/2006 Page10f2

i 9F05D24
Danielle Napier - July 18, 2005
Page 22 Page 24
1 A. That's means it's sitting in the foundry. 1 an error. This one here is accurate.
‘ 2 Q. And why is that? . 2 Q. Okay. So No. Seven was actually completed and
3 A. Because of this lawsuit. Cause ofthe injunction. 3 sold?
4 Q. Now, I see that there are casting and freighting 4 A. Correct.
5 costs associated with that 1200 — 12,000 and 17,000. Was 5 Q. Well, actually let's take a look at that response,
6 that- are those costs then reflected below where you say — 6 the interrogatories, real quick so we can clear that up.
7 where you show the cost for crating and freighting totaling 7 We'll have to mark this as Exhibit No. 3. I have another one
8 $55,000 and some change? 8 here.
9 A. I think they are incorporated in that, yes. 9 (Exhibit No. 3 marked for Identification.)
10 Q. Well, if item number six wasn't sold to anyone, why 1 0 Let me ask you to turn to — I'm going to show you
11 would that come off the net profit number? Why did you do 11 Exhibit No. 3, which are the interrogatory responses from in
12 that? 12 this case, and I believe if we look at interrogatory
13 A. I think because of the situation. I guess we had 13 number — trying to figure out which number it is. Yeah. If
14 to establish an expense for it and it has to be ultimately 14 you look at the response interrogatory No. 11, here, I‘ll
1 5 shipped or finished or something so that's why we put that in 1 5 show you here. I think if you look at Exhibit No. 3 the
1 6 there. I talked with Laura about that. Ifwe should submit 1 6 response to interrogatory No. 11, I think it says No. 7 is
1 7 that part of it. 17 incomplete; is that correct?
1 8 Q. So you're saying that you think that a proper 1 8 A. Oh, okay. There's two No. ll's here. Yeah.
19 expense to take off your net profit number even though it 19 Correct because --
2 O hasn't been sold and the lawsuit's pending? 2 O Q. First one is actually my request, the second should
2 1 A. I'm not sure about proper. I guess I was unsure 2 1 be -
2 2 whether to put it there or not put it there. It's III a state 2 2 A. - the response —
2 3 where it's only half completed, so if it were to be all the 2 3 Q. Yeah.
2 4 way completed for the purposes of just, you know, going 2 4 A. Okay.
2 5 through this, you know, completing everything if it was 2 5 Q. Yes. Is there anything on that response that you
Page 2 3 Page 2 5
1 completed, we'd have to figure out what to do with it so 1 would care to amend now on the record, or at lease -
2 that's why I completed, you lcnow, what it would cost to 2 A. Yes. It looks like it was a typo, it should have
3 freight it or crate it or finish the casting. Eventually we 3 been No. 6.
4 might have to pay the foundry the whole part of it because 4 Q. Okay. So number six is the the only life size
5 they‘re just as a courtesy holding it for us. 5 version that was incomplete?
6 Q. So what you're saying is you're really unsure about 6 A. Correct.
7 whether it should actually be deducted from the net protit 7 Q. And number seven is that also a non gallery sale?
8 amount? 8 A. Correct. Well, let me rephrase that. A gallery
9 A. Yeah, I guess and somebody would have to really 9 purchased it.
1 0 tell me, you know, an expert as to when they‘re going through 1 0 Q. Oh, okay. Do you know which gallery?
1 1 all these calculations and it was definitely something that I 1 1 A. I'm not sure the name of their gallery. They go by
1 2 was confused about as mr as if that should be in there or 1 2 the name of Cougar Mountain Zoo, but I lmow they have started
1 3 not because it was not completed. 13 or are in the process of starting a gallery so that's why
1 4 Q. Cause what we have essentially is there's no 14 they got the price that they did. They have a wholesale
1 5 corresponding income to increase the revenue but then we have 1 5 license. V
1 6 a corresponding decrease in or increase in the costs that are 16 Q. Okay. Now, in some of these — some of the
1 7 going to decrease your profit number? 17 receipts, it looked like there was, was there an artist proof
1 8 A. Correct. 1 8 set that was produced?
1 9 Q. Item No. Seven. My understanding from reading some 19 A. Yes. V
2 0 of the interrogatory responses that life size addition number 2 O Q. What are artist proofs?
2 1 seven was not completed. It says - that interrogatory says 2 1 A. It's just a separate edition that we have the right
2 2 the production was stopped. Does that sound correct to you? 2 2 to create with a label artist proof Generally, they well, a
2 3 A. On number seven? 2 3 lot of artists that do sculpture can reserve them for their
2 4 Q. Yes. 2 4 own personal copies.
2 5 A. It was No. Six where it was stopped. It might be 2 5 Q. Now, when there's an advertisement or a statement
7 (Pages 22 to 25)
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Case 2 :04—cv—00408-SI\/I I\/I Document 75-4 Filed O1/17/2006 Page 2 of 2

Case 2:04-cv-00408-SMM

Document 75-4

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Case 2:04-cv-00408-SMM

Document 75-4

Filed 01/17/2006

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