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NEWS SUMMARY, May 7, 1979
Page 3
State of the Lawsuit
So where are we in the legal process? Mr. Rader explained that we are
not yet appealing to the California Supreme Court. We have appealed to
the District Court of Appeals -- that is the first step in the appellate
process. That takes time to prepare. The record has to be collected
and certified before sending up to the appellate court. We file a brief
(a concise statement of the main points of the case), then the opposition
files a brief stating the state's position. Then the matter is studied
by the court. There will be an oral argument where our lawyers and the
Attorney General appear before the court. Then more time is taken for
more study and review by the court and then a decision will be handed
down.
In the meantime, the District Court of Appeals has granted a 30-day "stay"
on other aspects of the case (the questioning of the surety pledges ano
the receivership accounting) pending our filing a "writ of certiorari"
(an order of a higher court to call up the records of a lower court) with
the Supreme Court of the United States. That will be filed this week.
The Church is asking the Supreme Court to extend the ''stay" of the Calif
ornia court pending the determination of whether or not they will review
our case. The U.S. Supreme Court is not required to take this matter up
now; it is merely at their discretion to do so. The chances are very
slim that they will treat our writ as we want them to, but there is always
a possibility they will, especially because of the important first amend
ment issue presented in our petition.
Meanwhile, the Church is not being directly hampered by the state or by
the orders of Judge Title in carrying out its commission. They have both
been frustrated and thwarted in their efforts by our having taken our
rightful legal recourse.
Audit Nears Final Stages
"The audit is coming along fine," announced Mr. Rader, who had just
spoken to representatives of Arthur Andersen and Co. The auditing firm
is putting the finishing touches on the audit the Church commissioned in
March. It is expected to be ready by the end of the month or early part
of June. "I think the report will be such that it will be very difficult
for the Attorney General to maintain himself in this lawsuit or to justify
his conduct once the report is reviewed," Mr. Rader assured the audience.
Oops! A Refund?
As reported in a previous issue of The NEWS SUMMARY, the IRS is examining
Mr. Rader's personal finances. One employee asked Mr. Rader about the
rumor that he would be receiving a refund from the federal government.
Mr. Rader explained, "My tax accountants have indicated that for those
years which are 'open years' (meaning years for which I may still file
an amended return) there were very substantial deductions which they had
advocated at the time that I take, but that I decided I would not. Now
that we are involved in a tax audit for these years, they said they will
file amended returns. They will therefore use the deductions they did
not use before. It is their opinion that those deductions will produce
a tax refund.