Church of Scientology v. Armstrong

232 Cal. App. 3d 1060, 283 Cal. Rptr. 917, 91 Daily Journal DAR 9172, 91 Cal. Daily Op. Serv. 5954, 1991 Cal. App. LEXIS 862
CourtCalifornia Court of Appeal
DecidedJuly 29, 1991
DocketDocket Nos. B025920, B038975
StatusPublished
Cited by14 cases

This text of 232 Cal. App. 3d 1060 (Church of Scientology v. Armstrong) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Church of Scientology v. Armstrong, 232 Cal. App. 3d 1060, 283 Cal. Rptr. 917, 91 Daily Journal DAR 9172, 91 Cal. Daily Op. Serv. 5954, 1991 Cal. App. LEXIS 862 (Cal. Ct. App. 1991).

Opinion

Opinion

DANIELSON, J.

—In consolidated appeals, the Church of Scientology of California (the Church) and Mary Sue Hubbard (hereafter collectively plaintiffs) appeal from an order after appealable judgment unsealing the file in Church of Scientology of California v. Gerald Armstrong (No. B038975), and from the judgment entered in the case (No. B025920). We vacate the order and affirm the judgment.

Facts and Procedural History

In the underlying action, the Church sued Armstrong, a former Church worker, alleging he converted to his own use confidential archive materials and disseminated the same to unauthorized persons, thereby breaching his fiduciary duty to the Church, which sought return of the documents, injunctive relief against further dissemination of the information contained therein, imposition of a constructive trust over the property and any profits Armstrong might realize from his use of the materials, as well as damages. Mary Sue Hubbard (Hubbard), wife of Church founder L. Ron Hubbard, intervened in the action, alleging causes of action for conversion, invasion of privacy, possession of personal property [sic], and declaratory and injunctive relief. Armstrong cross-complained, seeking damages for fraud, intentional infliction of emotional distress, libel, breach of contract, and tortious interference with contract.

With respect to the complaint and complaint-in-intervention, the trial court found the Church had made out a prima facie case of conversion, breach of fiduciary duty, and breach of confidence, and that Mary Sue Hubbard had made out a prima facie case of conversion and invasion of privacy. However, the court also determined that Armstrong’s conduct was justified, in that he *1064 believed the Church threatened harm to him and his wife, and that he could prevent such harm by taking and keeping the documents.

Following those determinations the court made and entered an order, entitled “Judgment,” on August 10, 1984, 1 ordering and adjudging that plaintiffs take nothing by their complaint and complaint-in-intervention, and that defendant Armstrong have and recover his costs and disbursements. Plaintiffs filed notice of appeal from that order.

We dismissed the appeal (No. B005912) because that “judgment” was not a final judgment and was not appealable; Armstrong’s cross-complaint had not yet been resolved and further judicial action was essential to the final determination of the rights of the parties. (Lyon v. Goss (1942) 19 Cal.2d 659, 670 [123 P.2d 11].)

Armstrong’s cross-action was then settled and dismissed, the subject documents were ordered returned to the Church, and the record was sealed by Judge Breckenridge pursuant to stipulation of the parties. The dismissal of Armstrong’s cross-action was a final determination of the rights of the parties, and constituted a final judgment, permitting appellate review of the court’s interlocutory order captioned “judgment” filed August 10, 1984.

Plaintiffs then timely filed a new notice of appeal (No. B025920), from the orders entitled “Order for Return of Exhibits and Sealed Documents” and “Order Dismissing Action With Prejudice,” both filed December 11, 1986, and from the “Judgment” filed August 10, 1984, stating that the appeal was “only from so much of those orders and judgment which denied damages to plaintiff and pi ai ntiff-i nter venor ” on their complaints. We rule that the order dismissing action with prejudice is the appealable judgment in No. B025920. 2

The Unsealing Order After Judgment (No. B038975)

On October 11, 1988, Bent Corydon, who is a party to other litigation against the Church, moved to unseal the record in this case for the purpose of preparing for trial of his cases. He sought only private disclosure. Judge *1065 Breckenridge having retired, Corydon’s motion was heard by Judge Geernaert, who made an order dated November 9, 1988, which he clarified by another order dated November 30, 1988, which opened the record not only to Corydon but also to the general public, thus vacating the earlier order made by Judge Breckenridge.

On December 19, 1988, plaintiffs filed a timely notice of appeal from those orders made after appealable judgment. That appeal, No. B038975, is the other of the current consolidated appeals.

On December 22,1988, Division Four of this court issued an order staying Judge Geernaert’s orders (1) unsealing the record and (2) denying a motion for reconsideration of the unsealing order, to the extent those orders unsealed the record as to the general public and permitted review by any person other than Corydon and his counsel of record. On December 29, 1988, Division Four modified this stay order by adding to it a protective order prohibiting Corydon and his counsel from disseminating copies of or disclosing the content of any documents found in the file to the public or any third party, except to the extent necessary to litigate the actions to which Corydon and the Church were parties. Corydon and his counsel were also required to make good faith efforts in Corydon’s litigation to submit under seal any documents they found in the file of this case.

On this appeal, Corydon argues in favor of the trial court’s order unsealing the record, as he wishes to be free of the protective orders contained in the modified stay order issued by Division Four.

The “Judgment” of August 10, 1984 (No. B025920)

Armstrong’s taking of the documents is undisputed. The evidence relating to his claim of justification, which was found credible by the trial court, 3 established that Armstrong was a dedicated member of the Church for a period of 12 years. For 10 of those years, he was a member of the Sea Organization, an elite group of Scientologists working directly under Church founder L. Ron Hubbard. In 1979, Armstrong became a part of L. Ron Hubbard’s “Household Unit” at Gilman Hot Springs, California.

In January 1980, fearing a raid by law enforcement agencies, Hubbard’s representatives ordered the shredding of all documents showing that Hubbard controlled Scientology organizations, finances, personnel, or the *1066 property at Gilman Hot Springs. In a two-week period, approximately one million pages were shredded pursuant to this order.

In the course of the inspection of documents for potential shredding, Armstrong reviewed a box containing Hubbard’s early personal letters, diaries, and other writings, which Armstrong preserved.

Thereafter, Armstrong petitioned for permission to conduct research for a planned biography of Hubbard, using his discovery of the boxed materials. Hubbard approved the petition, and Armstrong, who had discovered and preserved approximately 16 more boxes of similar materials, became the senior personal relations officer researcher. He subsequently moved the materials to the Church of Scientology Cedars Complex in Los Angeles.

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232 Cal. App. 3d 1060, 283 Cal. Rptr. 917, 91 Daily Journal DAR 9172, 91 Cal. Daily Op. Serv. 5954, 1991 Cal. App. LEXIS 862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/church-of-scientology-v-armstrong-calctapp-1991.