Free Statement - District Court of Arizona - Arizona

CONDENSED TRANSCRIPT OF JOHN CLEAVES — 3/01/05
— IN THE UNITED STATES DISTRICT COURT 3
FOR THE DISTRICT OF ARIZONA 1 10 Personnel Change of Status Notice 99
Patrice Jerome, ) 2 11 Exit Interview dated 12/6/03 100
·- ) No. CV 03-1913 PHX MHM 3
Plaintiff, ) 4
) 5
vs. ) 6
) 7
Midway Holdings, Inc., et al, ) 8
) 9
Defendants. ) 10
) 11
DEPOSITION OF JOHN CLEAVES 12
Phoenix, Arizona 13
March 1, 2005 14
9:00 a.m. 15
(COPY) 16
PREPARED FOR: 17
DONNA DELAVINA REPORTING 18
350 East Virginia 19
Suite 150 20
Prepared by: Phoenix, Arizona 85004 21
Donna DeLaVina, RPR, CCR 50468 (602) 230-5454 22
23
24
25
2 4
1 I N D E X 1 THE DEPOSITION OF JOHN CLEAVES
2 WITNESS: PAGE 2 was taken on March 1, 2005, commencing at 9:08 a.m.,
3 JOHN CLEAVES 3 at the Law Offices of MONTOYA JIMENEZ, P.A.,
4 Examination by Mr. Montoya 5 4 3200 North Central Avenue, Suite 2550, Phoenix,
5 5 Arizona, before Donna DeLaVina, a Certified Court
6 6 Reporter in the State of Arizona.
7 7 ~k s\· ~k ir * {
8 8
9 9 COUNSEL APPEARING:
10 10
11 E X H I B I T S 11 FOR THE PLAINTIFF:
12 EXHIBIT DESCRIPTION PAGE 12 MONTOYA JIMENEZ, P.A.
13 1 Charge of Discrimination - 24 The Great American Tower
14 2 Letter dated 5/27/03 to Cheryl 28 13 3200 North Central Avenue
Janes from Brett Burns Suite 2550
15 14 Phoenix, Arizona 85012
3 Affidavit of Charles Timothy 55 BY: STEPHEN G. MONTOYA
16 Schirra 15
17 4 Employee Hot Line Report 65 16
18 5 Interoffice Memorandum dated 77 17 FOR THE DEFENDANTS:
10/15/02 to Patrice Jerome from 18 AKIN, GUMP, STRAUSS, HAUER & FELD, LLP
19 John Cleaves 1700 Pacific Avenue
20 6 Memorandum dated 11/4/02 to 85 19 Suite 4100
Patrice Jerome from Jack Colson Dallas, Texas 75201
21 20 BY: STEPHANIE OSTEEN
7 Memorandum dated 11/20 to Patrice 86 21
"" 22 Jerome from Jack Colson 22
23 8 Memorandum dated 11/20 to Patrice 87 23 ALSO PRESENT: EXHIBIT
Jerome from Jack Colson 24 Patrice Jerome E
“‘ J 24 25 g
9 Interoffice Memorandum dated 98 ’
25 12/2/02 to Patrice Jerome from
Jack Colson
Donna De La Vina Reporting (602) 230-5454
Case 2:03-cv—O1913-I\/IHI\/I Document 66-4 Filed O3/31/2006 Page 1 of 3

CONDENSED TRANSCRIPT OF JOHN CLEAVES - 3/01/05
9 11
1 Honda and Bell Accura. 1 A. Yes.
2 Q. Who employs you to fulfill the duties 2 Q. Which one?
3 as operations manager for all of those dealerships? 3 A. Pinnacle Nissan.
4 ` A. They do. 4 Q. Are you still a shareholder in
5 Q. At each dealership? 5 Pinnacle?
6 A. Yeah. 6 A. No, sir.
7 Q. You have a separate contract? 7 Q. As operations manager of these various
8 A. Yeah. 8 dealerships, what are your general job duties?
9 Q. With each dealership? 9 A. Really to supervise the general
10 A. Yeah. 10 managers, assist them wherever they made need help.
ll Q. How long have you been operations 11 Q. Do you have the authority to terminate
12 manager of all of those dealerships? 12 general managers?
13 A. Well, over the course of time, you 13 A. Yes.
14 know, it's not ·- it didn't all happen at the same 14 Q. Is that an authority, Mr. Cleaves, that
15 time. The two Midway stores and then, as time went 15 you can exercise unilaterally without consulting
16 by -- 1 don't know the exact dates that other ones got 16 someone else in your business?
17 added to my responsibilities, so over the last couple 17 A. No. 1 would want to consult the person
18 of years. 18 that has the —- the majority stock holder in the A
19 Q. Where's your office? Do you have a 19 dealership, such as Larry Van Tuyl or, 1 think, one of
20 main office? 20 them is probably owned predominantly by his dad maybe.
21 A. 1've got an office at Midway Infinity. 21 Q. And that would be Bell Honda?
22 1've got an office at Midway Chevrolet. 1've had 22 A. Yeah, 1 think so.
23 offices at different places at different times, 23 Q. I'm not here to ask a lot of questions
24 depending upon where 1 feel 1 need to spend my time. 24 regarding that issue, because I already know.
25 Q. Are you the president of any 25 A. No. But 1 wou1dn't terminate a general
10 . 12
1 corporation that does business in Arizona? 1 manager without their consent or their instruction.
2 A. No. 2 Q. Where do you spend your days?
3 Q. Are you an officer of any corporation 3 A. lt depends on the day. I mean, some
4 that does business in Arizona? 4 days —- you know, in the dealerships but it just
5 A. No. 5 depends on which dealership and which area. 1 could
6 Q. You are a shareholder, however, of 6 be at the service department of Pinnacle one day and l
7 Midway Chevrolet, right? 7 could be at the sales department at one of the used
8 A. No. 8 car dealers, a little -- really very rarely all in one
9 Q. No? 9 place on one day. Typically, it's sometimes spent in
10 A. No. 10 one place and half a day spent somewhere else.
11 Q. Are you a part owner of Midway 11 Q. Have you ever sued anybody?
12 Chevrolet? 12 A. No, not yet. The guy that built my
13 A. No, sir. 13 house 1'm getting ready to. But other than that, no.
14 Q. Have you ever been a part owner of 14 Q. Has anyone ever sued you personally?
15 Midway Chevrolet in reference to owning stock in the 15 A. Not that l can think of, no.
16 corporation? 16 Q. Let's go right to the issue in this
17 A. No, sir. 17 case. What was your job title or how many job titles
18 Q. Do you own stock in the Midway 18 did you have in the calendar year 2002?
19 Holdings? 19 A. 1 believe just the operations manager
20 A. No, sir. 20 title. 1'm not sure 1 had a title at that point, but
21 Q. Are you a stockholder of any car 21 that's where it was evolving to. You know, it was at
22 dealership in Arizona? 22 one point -- 1 had been the general manager of the
23 A. No, sir. 23 Auto Team side and then 1 became -- 1 went to the
24 Q. Have you ever been a stockholder in any 24 Chevy store as the general manager and then we hired
25 car dealership in Arizona? 25 general managers. So at that time, 1'm not sure 1
Dorma De La Vina Reporting (602) 230-5454
Case 2:03-cv-01913-IVIHIVI Document 66-4 Filed O3/31/2006 Page 2 of 3

CONDENSED TRANSCRIPT OF JOHN CLEAVES - 3/01/05
117 119
1 There's a difference. Yeah, people say oh, shit, or 1 A. Not at this time.
2 whatever. But there's a difference between that and 2 Q. Have I treated you respectfully?
r 3 using a term toward a person. 3 A. Yes.
4 Q. Have you ever admonished Patrick Beaman 4 Q. Did you understand my questions?
_ 5 to treat your employees, Mr. Cleaves, respectfully? 5 A. 1 believe so.
6 A. 1 may have at some point or another. 1 6 MR. MONTOYA: 1'm done. Thank you.
7 mean, 1 probably -— not admonish. Again, if 1 7 MS. OSTEEN: We'l1 reserve our questions.
8 coached, 1 talked about treating each other 8 We would like Mr. Cleaves to read and
9 respectfully or, again, lots of times, lots of 9 sign. We‘re done.
10 meetin s and lots eo le, 1‘m sure Patrick was there. 10 MR. MONTOYA: Thank ou, sir.
9 P P Y
11 Q. Did you admonish Patrick Beaman to 11 (Whereupon, the deposition was concluded at
12 treat your employees more respectfully after you 12 11:32 a.m.)
13 learned that Patrice Jerome filed a charge of 13 * * * * * * ·
14 discrimination based on Mr. Beaman's conduct against 14
15 your conpany Midway, Midway Auto Group? 15
16 A. No. Again, 1 think 1 am sure 1 asked 16
17 him did you say that and he said no. And 1 said JOHN CLEAVES
18 certainly you never would or something like that. 1 _17
19 mean, we wouldn‘t do that._ 1 can't remember the exact 18
20 conversation, but could you turn that around so it was 19
21 admonishing him, 1 don‘t know. ‘ 20
22 Q. Do you believe that Patrick Beaman 21 ' "
23 bears any responsibility for Patrice Jerone‘s charge 22
24 of discrimination against Midway? 23
25 A. lf what you're asking me is do 1 think 24
25
_ 118 m
1 he said that to her, do you mean? 1 ATATN ON ARIZONA ,
2 Q. Well, okay.' Not exactly that but 2 COUNTY OA NARICONA Q $$·
3 sometimes people open themselves up to certain 3 ` »
4 allegations based upon kind of maybe too relaxed or A BN IT KNOWN that the foregoing deposition was
5 sloppy behavior. De you know what I Kean? 5 taken before me DONNA DELAVINA a Certified Court
6 A. Yeah. · t · _ ' _ _ '_ . _
7 Q. D0 you in of that, do 6 Reporter inlthe State of Arizo a, that the itness
_ _ _ _ _ 7 before testifying was duly sworn by me to testify to
8 you think Patrick Beaman has any responsibility -- 8 N N 1 N h_ th N th N d d b
9 A. No. 1 think that Patrick's involved in e e W ° e as ' e e eeee me ereeeee e y
. . . . . . 9 counsel and the answers of the witness thereto were
10 it, but my personal opinion, this is a professional _
11 grudge match. You know, somehow he was advising her 10 reree ee"` be me re eherrrreee erre ehereerrer _
12 what to dol She want to listen to him, I1 transcribed into typewriting by me; that the foregoing
13 work Out and She blames Of 12 119 pages are a full, true and accurate transcript of
M Thatrs just my Opinion. 13 all proceedings and testimony had and adduced upon the
15 MI. cleaves, do you want to change any 14 taking of said deposition, all to the best of my skill
16 of your answers? 15 3**** *"*’il“Y·
17 A_ NO! SU-_ 16 I FURTHER CERTIFY that I am in no way related to
18 Have You euswered 17 nor employed by any of the parties hereto, nor am I in
19 Yes Sj_I_ 18 any way interested in the outcome hereof.
I
20 I5 there anything that Yen yant te add 19 DATED at Phoenix, Arizona, this 12th day of
21 to your answers to make them more accurate and 20 March. 2005. -
22 conplete? _ zi ·
. Donna DeLaVina, RPR
23 A. NO, SI1`. . 22 Certified Court Reporter 50468
24 Q. Is there anything that you want to say za ·
25 to make the record more complete? _ 24 .
· 25
r Donna De La Vina Reporting (602) 230-5454 .
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