Free Motion in Limine - District Court of Arizona - Arizona

In The Matter Of: J
Meritage Corporation u
Hancock
1 isi
I i ;
i F
I? Gregg Curry Z i
February 1, 2006
J 9 Gr@n GAssociates
3030 North Central Avenue Suite 1102 4
t ; _ Phoenix, AZ Maricopa 85012 -9
t (602) 264-2230 or ( 888) 529-9990
Original File GC020106 TX?} 286 Pages I
. Min-U—Scrzpt® File ID: 13412 74955
Word Index included with this Min-U-Sc1•ipt®
it case 2:O4—cv#OO384—ROS Document 514-6 Filed 308/20/2007 'Pé1géU1'of4ih I I I

P. Gregg Curry Meritage Corporation v. ' .
February 1, 2006 Hancock
1___L·i I I
Pago 30 Page 32
{1] MR. GOLDFINE: Form. Foundation.To the in A; I think that·s tight
[2} objecuon — to {nc quesuon (2] Q: Your job is to try and figure out what Greg did
I3] THE WITNESS: I'V€ read it. I3] wrong, if anything.
(4] O: BY MR. FRISBEEZAII right.Thc request states I4] MR GOLDFINE: Form. I:oundation_
{5] that Greg Hancock's job performance was measured by isi THE WITNESS; No; Mr; Frisbccrl don»t think
Is] business plans developed by Hancock and approved by is; that was my job.
m Meritage. and Mcritngt admits that D0 vm! Stn that? m ot BY MB. FRISBEE:Your job was to support the
Is} A: Yes Ie) lawyer’s version of the damages that they couldn't claim
[9] Q: So they don't claim that Greg's job standards [si from anybody else; right?
[10] were measured by Standard Pacific and Pulte, do they? noi MR GOLDFINE: Form. I:oundation_
wi MH- G¤L¤F•NE= <>1>i¤¤ti<>n-Form and [11] me witness; 1 wouIdn’t characterize that
[*2} foundation- [12) being my job either.
rm THE W|TNE$$= rt d<>¢Sn’t my tn¤t thcy <¤}<>· [13] ot BY MR.1¤RisBBB;1>iti you read the deposition of
.[14I Q; BY MR. FRISBEE:And you’ve never heard from any [14] Mn Sony?
(15] other place or seen any other document that says that they ns] At Ycsy I did_
[I6} dn;-trnn? [16] Q: Did you read the deposition of Mr. Landon?
[17] MR. GOLDFINE: Form and foundation. tm At Yos; I did_
[rs} THE WITNESS: Tharys u'uc- [18} O: Did you read the deposition of Mr. Hilton?
[19] Q: BY MR. FRISBEE: So_this whole idea to measure ns] A; Yos_ I did_
[ao} GreS’s Performance isn't based on anY a-uegauon in [-ne [20] Q: I assume you remember that none of them could
[21] lawsuit; it isn't based on any standard that’s contained ian quantify tho darnagcs that thoy oIaimod in this suit; ti-uog
[22] in Meritage documents; it isn't contained in anything you [aa] A; I think that~s ttuo_ I thi-nk thatis ntohabiy an
[23] were told by somebody; it's something you just came up [as] aooutato oha_taotoi-ization; yos_
[24} wnn [24] Q: And they all basically said, see our lawyers;
[25] MR. GOLDFINE: Form. Foundation. tas] tight?
Page 31 Page 33
ru THE W}TNE$$= Wnll. y<>¤ know Ynn —- I think hi A; 1 tiatrt remember ir they said that, hut they
(2] I’ve answered this question, that I disagree with the ta] might hayo_
[sj context of which you phrased it. I’ve never said, and I ts; Qt Yc3_h_
{4] don’t think the report says, that I’m measuring Greg in And so tho Iawyoi-s Wont to soo you_
[5] Ha.ncock's performance based on those two homebui1ders.So is] A; Y€s_
[6] I disagree with the context of the question. ts; Q; Now; at-o you toning this jury that you ai-o moto
m ¤= BY MR· FR1SBEE¤W¤¤. if y<>n’r¢ not mcnsnrmg ht ratauiat with the standards by which Greg Hancock was
[B} his Perforrnanee with r-nose nornebuuders» then WnY is it in [9] supposed to be measured and the performance of Meritage
[9} Your r ePor Y? [9] and the Hancock division of Meritage than are its two CEOs
(10] A: Because it is a indicator of how homebuilders noi and its gpg;
[11] were doing in the marketplace, and I do use it as a n n MI:I_ (;gLDI:INEt I:oi-m_
[I2} comparison tn the Hancock business — [12] THE WITNESS: No, I’m not telling the jury
[13] Q: You don’t — I13I that at aII_
[I4} A: — nnt Greg Hancockys ptr son} Per for rnance- [14] Q: BY MR. FRISBEE:I assume you would defer to
[*5} Q? Weut rnaus what Wevre ncre about. rsnir rr? [is] their opinions rather than your own regarding those
[16] MR. GOLDFINE: Form. Foundation. ns; topics?
[17] THE WITNESS: I think we’re here about more nn MI:i_ GQLDF|NE; I:otm_ Foundation
[Is} [nan inst [nar- [18] THE WITNESS: With regarding the topic of
[Is} Q? BY MR· FRISBEE Mer nage sued Greg Hancock? [neY [19] Mr. Hancock's performance on the job, certainly I would.
[ao} didrrr sue anYb0dY e[se· [20] Q: BY MR. FRISBEE: Okay.Are you aware that
[2*} MFI- GOLDFINE: Fornr Foundation- [21] Mr. Hancock's job performance was rewarded by performance
[22] THE WITNESS: l think they sued Rick. iaai bonuses?
[aa} Q? BY MR· FRISBEE Rick Haneock· [23] A: I believe I’ve seen that or heard that, yes.
[24} But that rsnwr _ Rink Wasrrr running [ne [24) Q: Where did you see that or hear it?
[as} cornPanY» Grcg Was? tight? [as] A: Well, I think I’ve seen it in some of your legal

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P. Gregg Curry Meritage Corporation __ v. I I.
February 1, 2006 H8IlC0`Ck ·
.`
page 38 Page 40
lil MR- GoLDFiNE= Form- Foundation in mn. oot¤1=1NE; Form. Foundation.
I?} Excuse me-Wher e in that admission that You [2] THE WITNESS: It refers to background
Isl inst 1'€ad» Pointing to Exhibit 2· does Meritage admit that is] information on the company and on the performance of tl·1e
I4} they eut i' entiv have business Pians? {4] company, for information for the trier of fact.
151 MR- FFiiSBEE= Mt Goidhnei you can ohiect isi o; BY MR. 1=1usg1ag; For anrotnoouon rot mo tnor of ’
[6] to the question, a proper objection.You're not entitled is] i·aet_
m to make speaking objections, and we'll get the judge on in A-nd you ean·t teii me whethet he met oi.
[al the phone i' ight away it Weyt e going to do this- [ai exceeded the business plans, and you can’t tell me whether
1o1 MR. Go!-¤FiNE= if you're going to isi he got all available bonuses; is mot right?
[10] misrepresent — if you're going to misrepresent an exhibit noi At I eanit teh you that for a fact, no_
[11] you have before the court, we'll be happy to discuss it nn Qt would you think those would bc appropriate
hal with the judge- [12] measures of whether or not Meritage thought he was doing
[13] Q: BY MR. FRISBEE: Isn’t it proper to infer that na] his job?
(14] there are business plans if Meritage admits that Hancock’s na] MR GOLDFINE: I:oi.m_ Foundation
Its] Pettot mance was measut cd by them? _ [15] THE WITNESS: You'd have to ask Meritage
[16] A: You know, I don’t know. I don’t know if it’s ns] that I don’t know
W1 Pi'oPei' to do that·You'i'e asking me about a document [17] Q: BY MR. FRISBEE: ln your experience in business,
[tsl cr cated bY one iaWYei'» i'esPonded to hy another iaWYet· [18] aren’t those two factors that reflect the approval of an
U91 And I've deait enough With lawyer s to know, I don’t t—i'Y to [19] employer about the performance of an employee?
[20] interpret what they’re saying from a legal standpoint. [ao] MR Ggi_Di:iNE; I:ottn_ Izoundation
ian Q: Apparently, it’s real difficult to understand [gi) THE WITNESS; Well, it may, It may be for
I2?} Pia-in ia-nguage for some Iavvvet si i' ight? [22] purposes of creating incentives. It may be for purposes
[231 MR- GOLDFINE: Form- Foundation- [23] of trying to coddle somebody that you want to get
[241 Oi BY MR· FRISBEE1 Do You knovv anYthing about the [24] performance out of that maybe you're not getting
1251 performance bonuses that were paid to Mr- Hancock? gsi potronnonoo out or. 1 mean, there’s o variety of reasons
Pa9e 39 Page 41
[il MR- Got-DFINE¤ Fofnl [1] why an employer might pay a performance bonus or a bonus
I2] THE W|TNE$S= No. [2] that doesn’t necessarily mean that that employee is
[za] Q: BY MR. FRISBEE: Did you see information about tai pei-itoi-ming at an outstanding paoe_
[41 them at all? [4] Q: BY MR. FRISBEE: Do you have any information here
Isl Ai AnY intotmat-ion? No» not teaiiv- is] that Meritage paid an unwarranted performance bonus to
[6] Q: Do you know that Greg Hancock was paid his entire isi Gi-eg Hancock?
U] bonus for each period they were available to him while he in MR GQLDF|NE: Foundation I:ottn_
1¤1 worked for Meritage? [oi THE WITNESS: No.No.
[9] Ai I don’t know that tot a fact. no- {9] Q: BY MR. FRISBEE: Do you have any reason to
[io] Qi Did You ask anYbodY about it? [10] believe or were you told by anybody that he didn't fairly
itil Ai Not that I i'€€aII· [11] earn his performance bonuses?
1121 ¤= Iassume you saw that in the pleadings too. [12] Mn. c.o1.¤1=1NE; Form. Foundation.
11a1 didn't you? noi THE WITNESS: won, 1 think uio - 1 nooon,1
U4] Ai Pi'obabiY- Ot in this doeument· {14] think based on the allegations that have been made in this
lis} Qi But You didn`t have enough eui`iositY to go nnd iis] case, it seems to me that Meritage is taking exception
[*61 out Whether It was true of not? {16] with Mr. Hancock’s performance, at least now in a
[17] MR. GOLDFINE: Form. ny] hindsight View
{18] THE WITNESS: No, because — because that nai Q; BY MR_ FRISBEEAX/ith hindsight?
[19] deals with a liability issue, and that’s something that nai At weii, maybe with hmdSIgh[1y€ah_
[aol I’i'n not opining on- [20] Q: You don’t even know that, do you?
[Zi} Qi BY MR- FRISBEEFI thought You were oPining on [21] A: Well, I don’t know all the facts with respect to
[aa} his Iob Pettot mance- {22] Meritage’s legal allegations and legal positions.
(asl Ai No- Iim not oPining on his job Pettotmanee- {23] Q: One of the things you do say in your report, and
[24} Qi Okav- So WhY do We have eight oi` ten Pages of [24] I’ll quote it to you and I'LI show it to you here so that
[25] your report which refers to his job performance? [gg] you don’t think I’m fooling you is:As ofjune 2001,
Page 38 . Page @pse2;04-ov-00384-ROS tiriputnstthitoo Filed 08/20/2007 Page t’1»HL€‘u-sonpt

3 Meritage Corporation v. P. Gregg Curry
`_ Hancock February 1, 2006
’
P39e 42 Page 44
[1] there were 934 lots available for sale as part of the hl Q; BY MR_ l:RlSBEE;Ahd how docs that compare to
{2] Hancock Communities that Meritage purchased. 15 months la] your statcmcht that there were Ohh, 934 Ol. 449; whsle did
la] later the available lots that Meritage had to sell had tsl those cxtta lots come hom?
141 drepped in half to 449- iii Mn. GOLDFINE: perm.
ls] Want to check and see if that’s an accurate [sl THE wlTNESS; whcl-C do they coms tl-Om;
[61 $t3tct¤cht? [6] They — the lots are related to communities that have not
171 Af I1‘€f¤¢f¤b€1' th3t St3t€¤T€¤t» Yc$· [7] been developed sufficiently to allow them to sell the
[al Q: Where did you get that information? [Bl lots.
191 A: l calculated it- ig] o; BY MR. FRISBEE: So what you intended to dey in
[101 Q! And how did You c3icuI3tc it? [10] your statement was not lots available for sale; you meant
[lll AÂ¥ lused the Pfoicct lot 5t3tu$ Fcpotts 3hd [11] completed lots with all of the amenities so that houses
[12) calculated the lots that would have been available to the hal Could bc bullt Oh thcm_ Is that what v0u»l.c tclllhg mc?
[13] public for sale based on diat document, with the exception hs] Ml:l_ GOl_Dl:lNEt p0tm_
[14] of Sundance and Mission Royale, which I got information ht, THE WITNESS: NO·I meant lots available}
[151 from M€fit3£€’S cohtfoiict with i'c$Pcct to thosc two [15] for sale in the context that a lot is available on that
[161 PfoP€i'tic$· [16] date to sell. It's ready to be sold to the public.
[17] Q: Let me show you what‘s been marked as Exhibit 7. lm Q; BY MR_ l:Rl$BEE;Atld _,
1191 H3Vc You Scch th3t document befere? [18] A: It's not a piece of raw land sitting out in the
1191 Ai Yc3h-This is 3 Pfoicct iot $t3tu$ i' cPot t th3t I {19] desert that an individual is not able to go out and buy a
[20] WHS just I'CfC1'I'I.I`lg ICO. [gg] ]O[ H·Om_
[211 Qi $0 You $3W thosc 3hd 3 bunch ef edlers; tight? [21] Q: But I thought your complaint about Hancock’s
[221 Ai I $3W 3 Iot ef documchts ih this c3$c» Ycs- [22] performance was that he hadn’t accumulated enough lots and
{231 Q1 And [-I”LiS is 35 of 2/23/O3; eerreet? [23] land for Meritage to build on?
. 1241 Al Let mc look- it $3YS 2/24/03- [24] A: Well, first of all, it’s not my complaint.
. . [25] Q: Well, if you look over a little bit, under the [25] Q; Whose Complaint is lt?
Page 43 Page 45
T 111 c3Ptioh» it Says as ef 2/23/O3? iii A; 1 believe ive Meritegea eempidmi.
[21 A? Ycsi You it c right-Y<>u’re tight-Tho d3tc —‘ [2] Q: But even their documents say there were 7,000
la] the date of the document is 2/24. tsl lots ava_llabl€_
{4] Q: And do you know who generated this document? [4] Ml:l_ G()l_Dl:lNE; l:Ol-m_
[5] A: Well, it would have been generated by Meritage. ls] Q; BY MR_ l:lllgBEE;*l*hat·s totally different than
(6] Q: And I assume it’s generated for a reason? tsl your statement fol- 934 10[s;[igh[?
[71 Ai I Would 3- [7] MFI. GOLDFINE: Form. Foundation.
[81 MR- GOI-DFINE¢ Fou¤d3tio¤· [al THE WITNESS: Well, you’re wrong,
191 THE WITNESS: — l would assume Se, yes- lei Mr. Frisbee. It does not say that there are 7,360 lots
[10] Q: BY MR. FRISBEE:And what reason do you think it ht,] avallablc to sCll_
[T11 W3$ 8chcT3tcd? [11] Q: BY MR. FRISBEE:Well, let’s try it another way.
1*21 Al Wcu — [12] You’re familiar with the — the 10-Ks that Meritage filed?
[I3] MR- FOUHd3[IOI1. [13] A: Sul·c_
1141 THE WITNESSZ — I do¤'t knew if — I doh't [14] Q: I’ll show you Exhibit 8.Do you recognize
[15] know ifl asked that question specifically, but I think it hs] Exhibit gp
[16] provides information as to these communities and th€ [16] A; Not specifically, but it’s a 10K, and a page out
[17] status of the land, whether it’s been — whether lots have hy] Ot thc l().K_
[18] been sold, how many are remaining to sell, what the status hs] Q; l·vs taken thc lettth page out Ot 51 pages and
1191 i5- {19] attached it to the cover page so that we can tell what it
[20] Q: BY MR. FRISBEE:Well, there are, according to [20] ls; Col-l-Est?
[21] this document, as of 2/23/03, in the Hancock Communities, [21] A; Qkay
{22] as opposed to the Meritage communities, there are 7,360 [Z2] Q; And tllls is ._, thls is tl-lc {Ol-m l()-K for the
l231 I<>t5 1'€¤l3ifli¤g to Sell; true? {22] fiscal year ended December 31, 2001, for Meritage; right?
{24] MR. GOLDFINE: Form. Foundation. [24] A; Rlght
{25] THE WITNESS: 'I`hat’s what me document says. las] qt And do you know when lt was that Mel-ltags
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