DEPO Feuger

7/27/2019 DEPO Feuger

1/43

Transcript of the Testimony of:

30 (b)(6) Deposition of Paula DeenEnterprises, LLC, et al., by Theresa Feuger

Date: November 20, 2012

Case: Lisa T. Jackson v. Paula Deen, et al.4:12-CV-0139

Tom Crites & Associates International, Inc.P.O. Box 9438

Savannah, Georgia 31412Phone: 800-631-3480Fax: 912-233-7777

[email protected]

Case 4:12-cv-00139-WTM-GRS Document 154-6 Filed 04/30/13 Page 1 of 43


2/43

Page 1

UNITED STATES DISTRICT COURTFOR THE SOUTHERN DISTRICT OF GEORGIA

SAVANNAH DIVISION

LISA T. J ACKSON,

Plaintiff, CIVIL ACTION NO.

vs.

PAULA DEEN, PAULA DEEN 4:12-CV-0139ENTERPRISES, LLC, THE LADY& SONS, LLC, THE LADYENTERPRISES, INC., EARLW. "BUBBA" HIERS, and UNCLEBUBBA'S SEAFOOD and OYSTERHOUSE, INC.,

Defendants. _________________________________________________

30(b)(6) Deposition of Paula DeenEnterprises, LLC, The Lady & Sons, LLC, The LadyEnterprises, Inc., and Uncle Bubba's Seafood andOyster House, Inc., through its designatedrepresentative, THERESA FEUGER, taken by counselfor the Plaintiff, pursuant to notice andagreement, before Rachael Miller, Certified Court

Reporter, at 218 West State Street, Savannah,Georgia, November 20, 2012, at 1:06 p.m.



3/43

2 (Pages 2 to 5)

Page 2

1

2

3 APPEARANCE OF COUNSEL:4

5 FOR THE PLAINTIFF:6 MATTHEW C. BILLIPS, Esquire7 Billips & Benjamin, LLP8 3101 Towercreek Parkway9 Suite 190

10 Atlanta, Georgia 3033911 (770) 859-075312

13 S. WESLEY WOOLF, Esquire14 408 East Bay Street15 Savannah, Georgia 3140116 (912) 201-369617

18

19 FOR THE DEFENDANTS:20 WILLIAM FRANKLIN, Esquire21 KELIN MURPHY, Esquire22 Oliver, Maner, LLP23 218 West State Street24 Savannah, Georgia 3140125 (912) 236-3311

Page 31

2 FOR THE DEFENDANTS:

3 THOMAS A. WITHERS, Esquire4 Gillen, Withers & Lake, LLC5 8 East Liberty Street6 Savannah, Georgia 314017 (912) 447-84008

9 Also Present: J ody Farmer, Paula Deen, Earl Hiers10

11

12

13

14

1516

17

18

19

20

21

22

23

24

25

Page 41 I N D E X2

3 OPENING REMARKS AND STIPULATIONS ------- 84

5

6

7 EXAMINATION8 By Mr. Billips -------------------- 99

10

11

12

13 ATTESTATION --------------------------- 9714 ERRATA SHEET -------------------------- 9815 CERTIFICATE --------------------------- 9916

17

18

19

20

21

22

23

24

25

Page 51 D O C U M E N T A R Y E V I D E N C E2 NUMBER DESCRIPTION PAGE

3 1 Amended Notice of Deposition 94 2 Amended Notice of Deposition 95 3 Amended Notice of Deposition 96 4 J une 14, 2011 email 507 Subject: From Tanya/Conference8 call - retail coordination9 5 August 18, 2010 email from 59

10 Tanya at Mackworks11 6 December 12, 2011 email from 6712 Karl Schumacher13 Subject: UB Christmas bonuses14 7 August 19, 2010 email from 69

15 Schumacher CPA16 Subject: Catering for Sept. 1117 8 September 27, 2010 email from 7118 Schumacher CPA19 Subject: UB - food costs at20 Lady & Sons21 9 October 2010 emails 7322 Subject: No Harassment Policy23 Form24

25



4/43

3 (Pages 6 to 9)

Page 61 10 August 13, 2010 email from 752 Schumacher CPA3 Subject: UB needing managers4 11 J uly 28, 2010 emails 765 Subject: Bubba's Posters6 12 The Lady Enterprises, Inc. 957 Organizational structure8 13 Uncle Bubba's Seafood & 969 Oyster House, Inc. Race

10 and gender composition11 14 The Lady Enterprises, Inc. 9612 race and gender composition13

14 (Original Exhibits attached.)15

16

17

18

19

20

21

22

23

24

25

Page 71 D I S C L O S U R E S T A T E M E N T2 STATE OF GEORGIA:

3 COUNTY OF CHATHAM:4

5 Pursuant to Article 10.B. of the Rules6 and Regulations of the Board of Court Reporting of 7 the Judicial Council of Georgia, I make the8 following disclosure.9 I am a Georgia Certified Court Reporter.

10 I am not disqualified for a relationship11 of interest under the provisions of O.C.G.A.12 9-11-28(c).13 Tom Crites & Associates International,14 Inc. was contacted by S. Wesley Woolf, P.C. to

15 provide court reporting services for this16 proceeding.17 Tom Crites & Associates International,18 Inc. will not be taking this proceeding under any19 contract that is prohibited by Georgia law.20 This, the 5th day of December, 2012.21 _________________________ 22

23

24

25

Page 81 MR. BILLIPS: This will be the2 deposition of Defendant Uncle Bubba's Seafood and3 Oyster House, Incorporated, taken pursuant to4 notice and agreement of counsel.5 All objections, except objections to the6 form of the question and responsiveness of the7 answer, will be reserved until such time as the8 deposition is sought to be used in evidence in9 this matter.

10 The deposition is on cross-examination11 for purposes of discovery and all other purposes12 allowed under the Federal Rules of Civil Procedure13 and the Federal Rules of Evidence.14 MR. FRANKLIN: Ms. Feuger is speaking --15 responding for all of the defendants to those --16 those numbered ones.17 MR. BILLIPS: I understand that. I was18 anticipating that we would take the depositions19 separately, but if she wants to go over it for all20 of them, that will work too.21 MR. FRANKLIN: I think that would22 streamline it.23 MR. BILLIPS: I think it probably will.24 MR. FRANKLIN: And she will read and25 sign the deposition and can do so in the presence

Page 91 of any notary public.2 MR. BILLIPS: All right. Then this will

3 also be the deposition under the same stipulation4 and for the same purposes of Defendant Paula Deen5 Enterprises, LLC, and Defendant The Lady6 Enterprises, Incorporated. And I need copies of 7 those. If you will mark as 2 and 3.8 (Exhibit 1 marked for identification.)9 (Exhibit 2 marked for identification.)

10 (Exhibit 3 marked for identification.)11 THERESA FEUGER,12 having been first duly sworn, was examined and13 testified as follows:14 EXAMINATION

15 BY MR. BILLIPS:16 Q. Please state your full legal name.17 A. Mary Theresa Feuger.18 Q. I'm sorry.19 A. Mary Theresa Feuger.20 Q. How do you spell Feuger?21 A. F-e-u-g-e-r.22 Q. Okay. And where and in what capacity23 are you presently employed?24 A. I am operations manager for Paula Deen25 Enterprises.



5/43

4 (Pages 10 to 13)

Page 101 Q. Okay. I'm going to show you what we've2 marked as Exhibits 1, 2 and 3 to your deposition.3 And have you -- do you recognize these as being4 the deposition notices pursuant to which you are5 appearing today?6 A. Yes, I do.7 Q. Okay. And in your capacity as8 operations manager for Paula Deen Enterprises, you9 are appearing as the representative of Uncle

10 Bubba's Seafood and Oyster House, Incorporated,11 The Lady Enterprises, Incorporated, and Paula Deen12 Enterprises, LLC; is that correct?13 A. Yes, I am.14 MR. FRANKLIN: And The Lady & Sons, LLC.15 Did you leave that out? There are four16 corporation defendants, aren't there?17 MR. BILLIPS: That's fine.18 BY MR. BILLIPS:19 Q. The matters on which you are giving20 testimony are items number 1 -- and if you need to21 look at the deposition notice --22 A. I have them.23 Q. Items number 1, 2, 3, 10, 19 and 23; is24 that correct?25 A. Yes, sir.

Page 111 Q. And have you prepared yourself to give2 testimony as to those items?

3 A. Yes, I have.4 Q. What have you done to prepare?5 A. I actually put together some6 documentation for you for questions number 1 and7 number 23. And then answers for the -- read8 through the deposition and know the questions that9 I need to be able to answer.

10 Q. Okay. Items number 2, 3 and 10, are11 those matters on which you can testify from your12 own personal knowledge?13 A. Yes.14 Q. Okay. Then describe for me, if you

15 would, the organizational structure of Paula Deen16 Enterprises, LLC.17 A. I am going to give you -- and this is18 actually -- can I move these?19 Q. Sure.20 A. These are actually the three21 organizations, Uncle Bubba's, Lady & Sons, and22 Paula Deen Enterprises. I think they're pretty23 self-explanatory to the question.24 Q. All right. Is there any relationship25 between these corporations as -- in the sense of

Page 121 parent subsidiary or are all they are -- are they2 all kind of on equal footing?3 A. They're all individually operating.4 Q. Okay. Now, the -- all of these5 corporations are at least, in part, owned by Paula6 Deen, correct?7 A. Yes, they are.8 Q. And --9 A. And it actually tells you the

10 ownerships.11 Q. Okay. Now, the Lady & Sons restaurant12 is operated by which of these?13 A. What do you mean by that?14 Q. Which --15 A. It's run -- it's under The Lady & Sons16 Enterprises.17 Q. Okay. Dustin Walls is general manager18 of The Lady Enterprises; is that right?19 A. No, he's not.20 Q. Okay. He was previously?21 A. He was previously.22 Q. Okay. And sometime in 20 -- in October23 of 2012, he left that position; is that right?24 A. He resigned that position to become a25 manager.

Page 131 Q. Okay. So he is a manager where?2 A. At The Lady & Sons.

3 Q. What kind of a manager?4 A. Floor manager for the front of the5 house.6 Q. Okay. All right. Now, Paula Deen7 Enterprises has as its -- the officers of Paula8 Deen Enterprises, there's listed as officers, per9 Secretary of State, CEO, Paula Deen; CFO and

10 secretary, Robert Deen. And then below that it11 has managerial employees since J anuary 1, 2008.12 Member, Paula Deen; CFO, Karl Schumacher;13 operations manager, Theresa Feuger. Feuger.14 A. Feuger.

15 Q. Feuger. Okay. As the operations16 manager for Paula Deen Enterprises, do you perform17 any managerial tasks or recite functions for the18 -- for Uncle Bubba's or for The Lady Enterprises?19 A. I have at one time.20 Q. Okay. And when did that stop?21 A. Middle of this year. May of this year.22 Q. Okay. So May of 2012?23 A. Yes, sir.24 Q. And when did your employment begin?25 A. 2003.



6/43

5 (Pages 14 to 17)

Page 141 Q. Okay. So throughout 2003 through 2012,2 you performed managerial functions for Uncle3 Bubba's and The Lady Enterprises?4 A. I helped out, yes.5 Q. Okay. Did you -- how would you describe6 your role with those entities during that time7 period?8 A. From -- well, in -- it would actually be9 later. It would be -- Uncle Bubba's opened in

10 2005. So from about 2005 to 2010, I was working11 directly with Paula. And anything that she would12 need at either Lady & Sons or Uncle Bubba's, I13 helped out with. I also oversaw operations from14 August 2010 until May of 2012 for all of the15 operating areas.16 Q. And when you say anything she would17 need, what would that consist of?18 A. We had events that we would work and I'd19 oversee those events.20 Q. Okay. Did you oversee any -- prior to21 2010, did you oversee any of the day-to-day22 operations of the restaurant?23 A. No, I did not.24 Q. Did you have any role in supervising25 employees at the restaurants?

Page 151 A. No, I did not.2 Q. Okay. Karl Schumacher was -- is

3 identified as CFO for PDE. Did Mr. Schumacher4 play any human resources type role for the5 restaurants?6 A. There were people that came and spoke to7 him, yes.8 Q. Okay. Explain to me what you mean by9 that.

10 A. If there were issues -- I mean, and they11 could have come to me as well. We weren't12 identified as -- as decision makers, but if they13 had -- if someone had a concern, they were14 certainly welcome to come to our offices and have

15 a conversation.16 Q. Okay. And what types of concerns are17 you referring to? Complaints of discrimination,18 would that be included?19 A. It could be absolutely anything they20 wanted to come and talk about.21 Q. Would you have had any authority to do22 anything?23 A. I would have taken it to Paula.24 Q. Okay. And Paula would have had25 authority to take action with regard to employees

Page 161 at either of the restaurants?2 A. Absolutely.3 Q. Would Paula have had the authority to4 hire, fire, terminate, demote, promote or5 otherwise set the terms and conditions of 6 employment for every employee at every one of 7 these places?8 A. As an owner she could.9 Q. Okay.

10 A. But she didn't.11 Q. Okay. But she had retained that level12 of authority?13 A. She was the owner.14 Q. Okay. Is that a yes?15 A. Yes.16 Q. Okay. Karl Schumacher had a more active17 operational role with regard to the restaurants;18 is that true?19 A. Yes.20 Q. And Mr. Schumacher actually dealt more21 hands on day-to-day with employment concerns,22 employment issues at, for example, Lady & Sons?23 A. I'm not aware of him being on a24 day-to-day issue, no.25 Q. Well, you're aware of the situation

Page 171 involving Dustin Walls where Mr. Walls apparently2 called an African-American employee a monkey and

3 that he was going to get rid of -- said he was4 going to get rid of all of you monkeys referring5 to the -- a group of employees? You're familiar6 with that incident?7 A. I'm familiar, yes.8 Q. And Mr. Schumacher took an active role9 in investigating that incident; is that correct?

10 A. Yes. He took the initiative to11 investigate the incident.12 Q. And he took the initiative to tell the13 restaurant management what action they needed to14 take toward Mr. Walls?

15 A. Yes, he did.16 Q. Okay. And they were obligated to follow17 his instructions, were they not?18 A. Yes, they were.19 Q. Okay. But in doing so, he was acting as20 an employee of Paula Deen Enterprises, correct?21 A. Correct.22 Q. So in his capacity as CFO of Paula Deen23 Enterprises, he had labor relations or human24 relations authority over employees of Uncle25 Bubba's and The Lady & Sons?



7/43

6 (Pages 18 to 21)

Page 181 A. He was the accountant. He paid them so,2 yes.3 Q. Okay. Well, he wasn't paying them with4 his money, right?5 A. But it was his role, yes.6 Q. Okay. And had he had that -- is Mr.

7 Schumacher still with the company?8 A. Yes, he is.9 Q. Okay. Is he still in the same role?

10 A. Yes, he is.11 Q. Does he still have the same role of 12 overseeing operations among all of the companies13 that he used to have?14 A. Yes, he does.15 Q. Okay. So Mr. Schumacher -- and is Mr.16 Schumacher employed by The Lady & Sons Enterprises17 in any respect?18 A. No, he is not.19 Q. Okay. Or The Lady Enterprises. Excuse20 me. Or is he --21 A. He is the accountant for Paula Deen22 Enterprises.23 Q. Okay. And he's the CFO for Paula Deen24 Enterprises, and that's -- those are the only25 actual formal employment relationships that he

Page 191 has, correct?2 A. As far as I know.

3 Q. Okay. And it's through that4 relationship that he has authority over employees5 at the two restaurants, correct?6 A. Yes.7 Q. Okay. Would he also have authority over8 the employees in the store where merchandise is9 sold?

10 A. Yes.11 Q. During the course of investigating the12 allegation against Mr. Walls, Mr. Schumacher would13 have had the authority to require employees and14 their agents of Paula Deen to -- excuse me --

15 employees of the restaurants or of Paula Deen16 Enterprises to answer his questions and provide17 information relevant to his investigation?18 A. State that again.19 Q. Would he have had the authority to ask20 questions of the employees of the Paula Deen21 organizations and insist that they give him an22 answer?23 A. Yes. He could go to each operational24 area and ask questions.25 Q. Okay. And if somebody refused to give

Page 201 him an answer, that could be grounds for their2 termination?3 A. I can't answer that.4 Q. Okay. Is Robert Deen active in the5 management of Paula Deen Enterprises?6 A. No, he's not.7 Q. Okay. What relationship is Robert Deen8 to Paula Deen?9 A. Her son.

10 Q. Does he go by Bobby?11 A. Yes.12 Q. Has he ever held an active role in the13 management of Paula Deen Enterprises?14 A. Not ever Paula Deen Enterprises, no.15 Q. Has he ever held an active role as an16 employee of any of the other Paula Deen17 organizations?18 A. Yes. The Lady & Sons.19 Q. Okay. And what was his role with The20 Lady & Sons?21 A. He was an owner. He is an owner.22 Q. Okay. Did he play a role in managing23 the restaurant?24 A. Yes, he did.25 Q. Okay. Well, I tell you what. Let me go

Page 211 through here and just get one question answered.2 The ownership of The Lady Enterprises,

3 Incorporated, is Paula Deen, J ames Deen and Robert4 Deen. What is the relationship of J ames Deen to5 Paula Deen?6 A. Son.7 Q. Okay. And the Robert Deen that is also8 an owner is the same Robert Deen who is an owner9 of Paula Deen Enterprises, correct?

10 A. He's not an owner of Paula Deen11 Enterprises. He's an officer.12 Q. An officer. I'm sorry. My mistake.13 But he's the same person?14 A. Yes.

15 Q. Okay. His compensation, Robert Deen's16 compensation, is identified as being from The Lady17 & Sons and from DM. What is DM?18 A. Deen Management.19 Q. Okay. What is Deen Management?20 A. A business that was developed for Bobby21 and J amie as they have their own individual22 events, happenings.23 Q. Okay. Does it have any relationship or24 affiliation with the Paula Deen organizations?25 A. No, it does not.



8/43

7 (Pages 22 to 25)

Page 221 Q. Does it -- is it called upon by the2 Paula Deen organizations to do events?3 A. No, it is not.4 Q. Okay. So it's totally separate?5 A. Totally separate.6 Q. Does it receive any money, or loans, or7 employees, or anything else from the Paula Deen8 organizations?9 A. No employees as far as -- you would have

10 to ask our accountant.11 Q. About the money?12 A. Money.13 Q. Okay. So Robert Deen does not receive14 any compensation from Paula Deen Enterprises?15 A. Again, I can't answer that.16 Q. Okay. That is one of the items in the17 matter of examination, the sources of compensation18 and benefits for each director, officer and19 manager or employee.20 So then at Paula Deen Enterprises, the21 only two -- the owner is Paula Deen, she's the22 CEO, and Robert Deen is CFO and secretary,23 correct?24 A. Listed on paper, yes.25 Q. Okay. J ust because you have to have

Page 231 somebody to put down or --2 A. Most probably, yes.

3 Q. Okay. Now, Uncle Bubba -- let me get4 that correct. Uncle Bubba's Seafood and Oyster5 House, Incorporated, which I will refer to6 hereafter as Uncle Bubba's, Uncle Bubba's is owned7 50/50 by Paula Deen and Earl Hiers; is that8 correct?9 A. That's correct.

10 Q. Earl Hiers is also known as Bubba Hiers?11 A. Yes.12 Q. And he is the Uncle Bubba of Uncle13 Bubba's?14 A. Yes, he is.

15 Q. According to the Secretary of State, he16 is the CEO and CFO at present of that entity,17 correct?18 A. That's correct.19 Q. And the secretary is Paula Deen,20 correct?21 A. Correct.22 Q. That was not true, however, throughout23 the period J anuary 1, 2008 to the present, was it?24 A. I'm not sure what you're asking.25 Q. Well, didn't Earl -- wasn't Earl Hiers

Page 241 removed from his position of CEO and CFO at some2 time period?3 A. Not that I was made aware of, no.4 Q. I may be mistaken about that. Okay. So5 are Earl Hiers, Paula Deen, Robert Deen and J ames6 Deen the only blood relatives who own or are7 employed by the Paula Deen organizations?8 A. That are owned by, yes.9 Q. That own or are employed. Okay. Are

10 there other blood relatives that are employed by11 the Paula Deen organizations?12 A. I have to run through the entire list to13 be honest.14 Q. Please.15 A. You mean as far as managers?16 Q. No. J ust employees. Employees17 including managers.18 MR. WITHERS: Is that from 2008 to the19 present?20 MR. BILLIPS: Well, I'm sorry. J ust21 managers down.22 THE WITNESS: To the rank of manager?23 MR. BILLIPS: Down to the rank of 24 manager, correct.25 THE WITNESS: No, there is not.

Page 251 BY MR. BILLIPS:2 Q. Okay. Are any of the individuals down

3 to the rank of manager romantically involved with4 any members of the -- of the family to your5 knowledge?6 A. I'm not aware of people's personal.7 Q. Okay. Now, just -- I've been referring8 to the Paula Deen organizations, and do you9 understand by that I'm asking you about Paula Deen

10 Enterprises, LLC, the Lady & Sons, LLC, Lady11 Enterprises, Incorporated, and Uncle Bubba's12 Seafood and Oyster House, Incorporated?13 A. Yes, I do.14 Q. Are there any other organizations which

15 have a relationship such that they would fall16 within the Paula Deen family of companies of the17 Paula Deen organizations?18 A. All of our companies are run19 individually. They're set up as individual20 companies, so they're not really a family of 21 companies. There's the Paula Deen retail store22 that you haven't mentioned.23 Q. Okay.24 A. And I'm not aware of any others, but...25 Q. Okay. Now, when you say that they're



9/43

8 (Pages 26 to 29)

Page 261 run independently --2 A. Uh-huh.3 Q. -- in light of your and Mr. Schumacher's4 role and authority over the other two -- employees5 of the other two companies, it wouldn't actually6 be true to say they're completely independent,7 would it?8 MR. WITHERS: Objection. Calls for a9 conclusion.

10 BY MR. BILLIPS:11 Q. You can answer.12 A. State the question again.13 Q. It wouldn't be true to say that these14 companies are entirely independent given that you15 and Mr. Schumacher as employees of Paula Deen16 Enterprises have authority over the employees of 17 Uncle Bubba's and The Lady Enterprises?18 A. Well, I don't have authority over all of 19 those operating areas. And Karl has the authority20 over the financial piece which, of course, makes21 it impossible for him to help those areas if he22 doesn't know what's going on. But they still run23 as independent. They have their own general24 managers, they have their own owners.25 Q. But he also had authority over human

Page 271 resources functions, correct?2 A. No. He took initiative to handle some

3 human resource issues.4 Q. Right. And he took initiative because5 he had the authority to do it, right?6 A. Yes.7 Q. I mean, I could take the initiative to8 go over and handle human resources problems, but9 it's unlikely anyone would listen to me. Is that

10 fair?11 As Mr. Schumacher in contrast had the12 authority to take over responsibility for human13 resources issues at the restaurants?14 A. He had the ability to get to Paula to

15 talk to Paula about, yes, what needed to be done.16 Q. Okay. And he did not always go to Paula17 before he went and did something, did he?18 A. I'm not aware of that.19 Q. As a matter of fact, wasn't part of his20 job to oversee operational and human resources21 issues at these restaurants during the period of 22 time prior to the company hiring human resources23 employees?24 A. No. The general managers were25 responsible for handling those. And if the

Page 281 general managers couldn't handle it, the owner2 was.3 Q. Okay. Then why did Mr. Schumacher4 handle it?5 A. He took the initiative.6 Q. Okay. Now, were there employees that7 were shared between the companies?8 A. Explain to me what you mean by shared.9 Q. That would perform services for more

10 than one company.11 A. There are employees that work under12 different umbrellas, yes, that have helped13 perform, but have never been -- have always been14 paid by the company that they worked for. Would15 you like me to give you an example?16 Q. Sure.17 A. We have graphic design teams, creative18 teams that fall under me. They handle all of the19 brochures and catalogs so that we can manage the20 brand. So I have a Michelle White and an Evan21 Russell that would be considered shared or22 interchanged, but they're -- they're reports,23 they're direct reports out of Paula Deen24 Enterprises and they're paid out of Paula Deen25 Enterprises.

Page 291 Q. Okay. And they perform work for the2 benefit of all three corporations, correct?

3 A. I wouldn't say that -- yes. Yes.4 Q. Okay. And so you're responsible for the5 marketing?6 A. Yes, I am.7 Q. And the marketing program for these --8 for the Paula Deen organizations is jointly9 operated, jointly run? You leverage the Paula

10 Deen name to assist in the marketing of Uncle11 Bubba's and vice versa?12 A. We use Paula Deen's name in Uncle13 Bubba's because she's one of the owners, yes.14 Q. Okay. And does Uncle Bubba's have

15 anybody that does marketing for them independently16 of you?17 A. We have brought on a person within the18 last 90 days that now handles sales and marketing19 for Uncle Bubba's, for Lady & Sons, Paula Deen20 Retail.21 Q. Okay. So prior to the last 90 days, the22 person who was responsible for the marketing23 program for those three organizations was you?24 A. No.25 Q. Who was?



10/43

9 (Pages 30 to 33)

Page 301 A. The individual areas. The general2 managers were responsible for their marketing3 plans. We merely helped support the collateral4 that was necessary.5 Q. What does that mean?6 A. If they needed a brochure developed, I7 had graphic designers that could actually create a8 brochure. They told us what they wanted. They9 told us how they wanted it marketed. We made it

10 happen. They don't have those teams on their --11 they don't have people on their teams to do that.12 Q. Okay. During 2010 did the corporations13 have discussions at the direction of Paula Deen of 14 working more closely together in their marketing15 operation?16 A. I'm not aware.17 Q. Okay. Did any employees ever get loaned18 from one -- one company to another?19 A. Did any employee?20 Q. Right.21 A. Explain that a little better. I'm22 sorry.23 Q. Let's say that The Lady & Sons was --24 let me back up just a second. Did Dustin Walls25 ever serve as the general manager for Uncle

Page 311 Bubba's?2 A. Not that I'm aware of.

3 Q. Okay. Did he ever do any work for Paula4 Deen Enterprises?5 A. If we had had events that were being6 hosted by Paula but were being catered by The Lady7 & Sons, yes, he would have done work for us.8 Q. Okay. And who would he have been paid9 by?

10 A. He would have been paid by Lady & Sons.11 Q. Okay. Would you have filled out a new12 employment personnel file, I-9 --13 A. No. Because he would have been14 representing The Lady & Sons. We just would have

15 been using his services.16 Q. Okay. And so would The Lady -- excuse17 me. Would Paula Deen Enterprises have written a18 check to Dustin Walls?19 A. No. We would not have.20 Q. So he would have been compensated under21 those circumstances through The Lady & Sons if he22 was working an event for Paula Deen, right?23 A. When we run Paula Deen events, it would24 behoove us to utilize one of our two restaurants25 if food and beverage are needed, so we use our

Page 321 restaurants to support our events and we pay those2 locations based on the services that they render.3 And the general managers, whether we do4 it at Lady & Sons or whether we do it at Uncle5 Bubba's, it's our expectation that they run the6 event.

7 Q. Okay. And they get paid by the actual8 entity which employs them, right?9 A. Correct. They're running one of their

10 own shifts so, yes. It's part of their job.11 Q. Okay. For what is it that Dustin Walls12 has been paid by Paula Deen Enterprises?13 A. I am not sure. That would have to come14 from our accountant.15 Q. Mr. Schumacher?16 A. Yes. Oh, I'm sorry. Can I --17 Q. Sure.18 A. I bet I can clarify what it is.19 Q. Sure.20 A. We have four restaurants that are21 outside of the restaurants that are located here22 in Savannah. And actually, we've used both23 managers from Lady & Sons and managers from Uncle24 Bubba's to help open those locations by going in.25 They are actually Lady & Sons, Uncle Bubba's and

Page 331 they have a few other features in them. So they2 go as representatives of their restaurants, but

3 Paula Deen Enterprises would have paid for those4 hours, because it would have been -- we would5 have -- we would have had to bring in another6 manager to cover their shift in order for those7 people to --8 Q. Okay. So would they have a separate9 personnel file at Paula Deen?

10 A. No.11 Q. So how would their hours get paid,12 directly from Paula Deen or by running it through13 Lady & Sons?14 A. They would have been paid directly

15 through Paula Deen Enterprises. An expense report16 would have been submitted for that time frame.17 Q. Why?18 A. What do you mean why?19 Q. I mean, if I'm understanding what you're20 telling me, Lady -- you have Lady & Sons21 restaurants at other locations?22 A. Well, it's entities of the Lady & Sons.23 So, for example, we have a Paula Deen buffet.24 Within the buffet, there is a section that is the25 Lady & Sons, there's a section that's Uncle



11/43

10 (Pages 34 to 37)

Page 341 Bubba's. We have a section called Little Jack's2 Corner. If you've ever been to a casino, it's a3 huge, large buffet area. So as the licensees, we4 are responsible for giving them recipes and5 overseeing just the basic opening.6 And we send -- you know, as part of the7 opening lineup, we send a representative from the8 Lady & Sons and a representative from Uncle9 Bubba's. But Paula Deen Enterprises pays for that

10 particular time because we're having -- Lady &11 Sons is actually having to find someone else to12 cover that shift for that person while that person13 is traveling.14 Q. Okay. So when you say we send someone15 to the event, you're referring to Paula Deen16 Enterprises?17 A. Paula Deen Enterprises.18 Q. And you're sending someone to cover a19 buffet that is essentially a joint operation of 20 all of the restaurants, correct?21 A. Yes. That is owned and managed by22 another company. They have purchased a licensing23 agreement with us.24 Q. Okay. And who did they purchase that25 licensing agreement with?

Page 351 A. Paula Deen Enterprises.2 Q. Okay. Did they purchase a licensing

3 agreement from Lady & Sons?4 A. Not that I'm aware of.5 Q. Does Paula Deen Enterprises compensate6 Lady & Sons through -- for the using the Lady &7 Sons' name at that event?8 A. Not that I'm aware of.9 Q. Does it compensate Uncle Bubba's for

10 using the Uncle Bubba's name?11 A. Not that I'm aware of.12 Q. Okay. But it is -- are you talking13 about the buffets at Harrah's?14 A. Uh-huh.

15 Q. That's a yes?16 MR. FRANKLIN: You have to answer yes.17 THE WITNESS: I'm sorry. Y es.18 BY MR. BILLIPS:19 Q. And so Paula Deen Enterprises directs20 employees of Lady & Sons and Uncle Bubba's to go21 to Harrah's for the opening of these buffets?22 A. We confer with the general managers of 23 the locations to identify people, yes. During --24 if they can go. We don't direct them. We don't25 say they absolutely have to. But, yes, we use

Page 361 resources from Lady & Sons and Uncle Bubba's to2 assist -- to assist openings at new restaurants.3 Q. And actually, you sent the general4 managers of those?5 A. Yes, I have.6 Q. Okay. And one of the general managers7 that you've sent to those events was Lisa J ackson;8 is that correct?9 A. Yes, she was.

10 Q. And is Dustin Walls a full-time employee11 of The Lady Enterprises?12 A. Yes, he is.13 Q. What does he do for Deen Management?14 A. There was a time when his -- part of his15 pay was coming out of Deen management. He wasn't16 working for Deen Management, no.17 Q. So part of his pay for performing work18 for The Lady Enterprises was coming from Deen19 Management?20 A. The two owners that owned Deen21 Management also own Lady & Sons.22 Q. Okay. So the answer is, yes, Deen23 Management was paying part of Dustin Walls' pay24 and the reason for that is that they had joint25 ownership in part?

Page 371 A. Well, they had -- I mean, yes, they2 had --

3 Q. Okay. Rance J ackson is -- has had the4 same situation where he is receiving part of his5 pay from Deen Management?6 A. That's correct.7 Q. Is he presently receiving part of his8 pay from Deen Management?9 A. Not that I'm aware of.

10 Q. Okay. When did that stop?11 A. This year.12 Q. Why did it stop, if you know?13 A. I'm not aware.14 Q. Okay. Scott -- what did Scott Hopke do

15 for Deen Management, if you know?16 A. I believe his situation is the same as17 the other two you've asked me.18 Q. And Rance J ackson, what about him?19 A. Same.20 Q. Okay. So he does nothing at all for21 Deen Management but gets part of his pay from Deen22 Management?23 A. Correct.24 Q. Okay. Now, do any of these -- okay.25 J ody Farmer is a human resources manager for Paula



12/43

11 (Pages 38 to 41)

Page 381 Deen Enterprises, correct?2 A. Yes, he is.3 Q. And does J ody Farmer have human4 resources authority over all of the companies?5 A. Yes, he does.6 Q. Does he have subject to the approval7 of -- strike that. Who does he report to, Mr.8 Schumacher or Ms. Deen?9 A. He has dual reporting to myself and to

10 Karl.11 Q. Okay. Is Ms. Deen active in the12 operation of the restaurants?13 A. Yes, she is.14 Q. Okay. Does J ody Farmer -- is he15 responsible for drafting policies, human resources16 policies for all of the entities?17 A. Yes.18 Q. Is he responsible for dealing with EEOC19 or discrimination matters for all of the entities?20 A. He needs to be made aware of all of 21 them. The general managers usually handle them on22 an individual basis, but J ody is absolutely23 brought into the loop so that we know.24 Q. Who do you -- who is -- if the general25 manager is the person alleged to have engaged in

Page 391 discrimination, to whom would an employee be able2 to complain?

3 A. They could go to the owner.4 Q. All right.5 A. They could now go to the director of 6 human resources.7 Q. Okay. Before that they could go to Karl8 Schumacher?9 A. They could. Or myself.

10 Q. Or yourself. Who makes decisions about11 the pay level within these various organizations12 about how much, for example, general managers are13 going to be paid?14 A. I would believe that would come from

15 Karl Schumacher with the assistance of each of the16 owners of each of the locations.17 Q. Okay.18 A. The locations actually set their19 salaries.20 Q. Well, does Karl Schumacher have the21 authority to override the general manager's22 desires when it comes to compensation of 23 employees?24 A. If he has the owners' approval, yes.25 Q. Okay. And the owners -- when it comes

Page 401 to the owners' approval, you're talking about2 Ms. Deen?3 A. No. I'm talking about whoever is part4 of the owners depending on which business unit5 you're discussing.6 Q. Okay. And Ms. Deen is --7 A. Paula Deen Enterprises and all others.8 Q. She is a part owner of all of them?9 A. Yes.

10 Q. Okay. Has the level of her ownership11 interest in these various entities changed at any12 time in, say, the last five years?13 A. I'm not aware of that. That would be an14 accountant question.15 Q. Okay. Who is Brandon Branch?16 A. He's our creative director.17 Q. Okay. For Paula Deen Enterprises,18 correct?19 A. Yes.20 Q. Which of the organizations -- strike.21 What does Paula Deen Enterprises do?22 A. We're an entertainment company.23 Q. Okay. And is Paula Deen Enterprises the24 entity which is responsible for the TV shows and25 tours and cruises and things of that sort?

Page 411 A. Yes.2 Q. Does Paula Deen Enterprises ever use any

3 of the restaurant staff from Uncle Bubba's or The4 Lady & Sons to assist in preparing for these --5 for TV episodes or --6 A. Not that I'm aware. We may get catering7 from those locations, but those again would be a8 service of the restaurant.9 Q. All right. And the entertainment that

10 Paula Deen Enterprises provides has to do with11 cooking, correct?12 A. For the most part, yes.13 Q. All right. And the -- The Lady & Sons14 restaurant and Uncle Bubba's are both to a degree

15 part of the marketing of Paula Deen; is that true?16 A. In what capacity?17 Q. Well, I mean, they're actually18 restaurants that are serving food that Ms. Deen19 talks about and cooks on her show?20 A. Cooks on her show, yes.21 Q. Okay. She does talk about it on her22 show, too, right?23 A. She may mention the restaurant. I don't24 think she has the ability to actually name them.25 Q. I'm sorry. I mean talks about the food.



13/43

12 (Pages 42 to 45)

Page 421 A. Okay. Yes. Yes. I'm sorry.2 Q. Okay. And so The Lady & Sons restaurant3 and Uncle Bubba's are both part of the brand that4 is affiliated with Paula Deen?5 A. Yes, they are.6 Q. Okay. You have an individual working at7 Paula Deen Enterprises, a brand manager?8 A. Yes.9 Q. What is her function?

10 A. She oversees all of our product11 packaging for licensing --12 Q. Okay.13 A. -- so we have a consistent look in the14 marketplace.15 Q. Okay. And the products you're referring16 to are what?17 A. We have cookware. We have all types of 18 kitchenware. We have candles, furniture, food19 product.20 Q. Okay. Are some of these items marketed21 under the Uncle Bubba's name?22 A. Not in the national market, no.23 Q. In the local market?24 A. Maybe as a specialty in the Paula Deen25 store, but only in the Paula Deen stores.

Page 431 Q. Okay. What about The Lady & Sons, any2 of the -- any of the product marketed under the

3 name of The Lady & Sons?4 A. Yes. We have some Lady & Sons products,5 but they're not sold nationally through our6 licensing agents. They're sold in what we call7 souvenir shops.8 Q. Does Ms. White have any responsibilities9 for those?

10 A. Yes. She will help in overseeing just11 the look and feel.12 Q. Okay. So ensure that it's --13 A. Lady & Sons looks like Lady & Sons. Or14 if it's Uncle Bubba's, it looks like Uncle

15 Bubba's.16 Q. Okay. And to ensure that the look is17 consistent throughout the organizations?18 A. The looks that we do at Lady & Sons and19 Uncle Bubba's are not as -- don't have to be as20 consistent with the national brand, no.21 Q. Okay. When you refer to the souvenir22 shop, is that PDR, Paula Deen Retail?23 A. Paula Deen Retail and the store that's24 next to Uncle Bubba's.25 Q. Okay. Is that store next to Uncle

Page 441 Bubba's also operated by Paula Deen Retail?2 A. No. It's part of Uncle Bubba's3 operation. It's their store.4 Q. Okay. So both Uncle Bubba's and Lady &5 Sons have stores next to them for selling6 souvenirs?7 A. Yes, sir.8 Q. And who is responsible for managing the9 stores?

10 A. The general manager at Uncle Bubba's11 manages the Uncle Bubba's store. And due to the12 size of the store down near the Lady & Sons, it13 actually has its own general manager.14 Q. For how long has that been the case?15 A. Since 2008, I believe. Close enough, I16 think.17 Q. Let's see. Have Paula Deen18 organizations ever referred to themselves in any19 written form which you're aware of as the Paula20 Deen family of companies?21 A. Not within our own organization, no.22 Q. What about externally?23 A. We had a company, Mackworks, who24 referenced it on one of their documents, but25 that's the only time I've ever seen it.

Page 451 Q. Okay. Is there any other -- any other2 name by which the Paula Deen organizations are

3 referenced as a collective group by the4 organization itself?5 A. Not that I'm aware of.6 Q. Okay. The Paula -- who is responsible7 for operating the Web site?8 A. Paula Deen Enterprises.9 Q. And who specifically at Paula Deen

10 Enterprises?11 A. Myself.12 Q. Okay. Paula Deen Enterprises also13 contains information about Uncle Bubba's and the14 Lady & Sons, correct?

15 A. We list them as restaurants on our Web16 site, yes.17 Q. Right. Do you list any non-Paula Deen18 related restaurants on your Web sites?19 A. No.20 Q. The organization -- the restaurants21 refer potential customers back and forth between22 each other?23 A. I would certainly hope so.24 Q. Okay. The restaurants have manager25 meetings which involve the managers of all of



14/43

13 (Pages 46 to 49)

Page 461 the -- of both of the restaurants and managers of 2 Paula Deen?3 MR. FRANKLIN: Are you asking regularly,4 ever or --5 MR. BILLIP S: Well, first --6 MR. FRANKLIN: -- in the history of man,7 since 2005, what?8 BY MR. BILLIPS:9 Q. Well, first ever. Are there ever such

10 meetings and then we'll discuss the level of 11 regularity.12 A. Okay. In the beginning, no, there were13 no meetings amongst everyone.14 Q. Okay.15 A. Probably around 2009, late 2009, the16 groups started -- the general managers started17 meeting as a group just because they were18 requesting more information on what was happening19 in the broader Paula Deen picture. So they met as20 general managers and -- but I believe that meeting21 no longer exists. I believe that they've gone22 back to just individuals with Karl to go over23 financials.24 Q. Okay.25 A. But I could be wrong on the -- they may

Page 471 meet that I'm not aware of.2 Q. Do they -- when the general managers

3 would meet, would they meet with someone with4 Paula Deen Enterprises?5 A. Yes.6 Q. Who?7 A. Karl.8 Q. Okay. And did they have these meetings9 on a regular basis?

10 A. There was a time frame that they were11 running on a monthly basis, yes.12 Q. And what is your understanding of the13 reason for these meetings?14 A. As I said, to review the big picture of

15 what was going on with where Paula was, what she16 was doing. A lot of it was just communication so17 that the teams would know what to tell their18 teams. Because everybody comes to the Lady & Sons19 and Uncle Bubba's thinking they're going to see20 Paula, so it's extremely important people know21 where Paula is. So that was one part. They also22 discuss best practices.23 Q. Uh-huh. And so they were essentially24 trying to see how better to integrate the25 operations of the restaurants and Paula Deen

Page 481 Enterprises to make them run more effectively?2 A. I don't know that I would call it3 integrating. I think it would be saying we were4 trying to open up the doors to communication to5 ensure that everyone was saying the same things.6 Q. Right. Okay. And the general managers7 would take the message back to their employees?8 A. Correct. May I ask a question. Are we9 still on question 1?

10 Q. We've been getting kind of on through 1,11 2 and 3 --12 A. Okay.13 Q. -- as we're going along.14 MR. WITHERS: Do you need a break?15 THE WITNESS : No. I'm fine. I'm fine.16 MR. BILLIPS: Any time you need to take17 a break, just let me know.18 THE WITNESS: Okay. I will.19 MR. BILLIPS: As long as we don't have a20 question pending, we will.21 THE WITNESS: No. I'm fine.22 BY MR. BILLIPS:23 Q. Okay. During the -- now, you earlier24 referred to an entity known as Mackworks.25 A. Yes.

Page 491 Q. And tell me what Mackworks is.2 A. It's a human resources company that

3 offers consulting.4 Q. Okay. And did Paula Deen Enterprises5 retain Mackworks in 2000 -- when was it, 2010,6 2011?7 A. 2010, yes.8 Q. Okay.9 MR. FRANKLIN: I'm not objecting at this

10 point, but she -- but Ms. Feuger is not offered as11 human resources. J ody Farmer will testify to that12 and about the Mack report.13 MR. BILLIPS: I understand. I wasn't14 asking her about that.

15 MR. FRANKLIN: I just don't want to go16 down some rabbit holes we don't need to with this17 witness who is not being offered for that.18 MR. BILLIPS: Right.19 BY MR. BILLIPS:20 Q. Did Mackworks also assist in21 coordination of the retail store activities and22 brand coordination across the entities?23 A. What do you mean by brand coordination?24 I mean, brand is creative and, no, they were not25 part of the creative. They came in for human



15/43

14 (Pages 50 to 53)

Page 501 resources only.2 (Exhibit 4 marked for identification.)3 BY MR. BILLIPS:4 Q. I'll show you what's been marked as5 Exhibit 4. Is Exhibit 4 an email from Tanya at6 Mackworks setting up a meeting for J une 17th of 7 2011, the goal being to get better coordination8 and leverage from retail store activities, brand9 coordination where we can, savings across

10 ordering, work as a retail team built into an11 action plan that you can implement? Is that what12 that is?13 MR. FRANKLIN: That's what it says. Is14 that what you're asking her?15 THE WITNESS: That's what it says.16 BY MR. BILLIPS:17 Q. And it was copied to you, correct?18 A. Yes, it was.19 Q. Do you recall receiving it?20 A. Yes, I do.21 Q. Do you recall Mackworks actually working22 on this?23 A. They worked with the managers to develop24 plans to execute, and that was why we brought them25 in was to help with our management teams to do

Page 511 their jobs better. It wasn't that they came in to2 oversee brand. The individual teams did that.

3 Q. Right.4 MR. FRANKLIN: I'm going to object to5 you -- well, if you would show me which enumerated6 item this is responsive to where you're asking7 about it.8 MR. BILLIP S: Item number 3.9 BY MR. BILLIPS:

10 Q. So they were bringing in the managers of 11 the various organizations to help better12 coordinate the operations of these entities?13 A. When we brought onboard the Uncle14 Bubba's store, which happened in -- I'm not

15 really -- 2009, 2010, we put together meetings in16 an effort to streamline the ordering process,17 because we have a warehouse that runs out of Paula18 Deen Enterprises. We have a store, a Paula Deen19 retail store and an Uncle Bubba's store. Paula20 Deen Retail and Uncle Bubba's was going to be21 selling much of the same items. We were trying to22 come up with streamlined ways to coordinate how to23 make that happen.24 And the manager that was at Uncle25 Bubba's had not handled merchandise before. So

Page 521 the Paula Deen retail managers were just pitching2 in to help.3 Q. Tanya isn't a Paula Deen manager.4 A. No. Tanya helped them get together as a5 group as a task -- kind of as a task force to give6 it some discipline to the actual meeting and some7 structure so that they would -- they would have an8 agenda to follow. And she oversaw the meeting.9 Q. So she was coordinating -- she was

10 assisting them in coordinating the operation of 11 the retail store activities and the brands?12 A. I would say coordinating, yes. I13 wouldn't say the brands, because the brands are14 two separate brands.15 Q. Didn't she -- her email actually says16 brand coordination where we can.17 A. Well, just because she wrote that in18 there and what she actually -- this was an initial19 meeting to bring up -- to bring to us what they20 wanted to do. It never meant -- it doesn't mean21 that any of this got approved.22 Q. Okay. I'm sorry. Did you say that's23 something that y'all started doing back in 200924 when Uncle Bubba's store started?25 A. I said I wasn't clear on the date. When

Page 531 we opened Uncle Bubba's store, it was -- we did a2 renovation to Uncle Bubba's. And the renovation

3 included us moving a bar area to the back and4 making a full retail store. And when we were5 doing that retail store, that was at the time that6 Mackworks was helping us with our human resource7 efforts.8 So it became a project that they helped9 take on coordinating, getting all of the right

10 people in the room. But everything that they did11 and all of the -- all of the actions that they12 came up with had to go to the general managers of 13 each location as well as myself for approval.14 Q. Okay. Do Uncle Bubba's and Lady & Sons

15 attempt to hire or promote from -- strike.16 If there is a position at Uncle Bubba's17 that would be a promotion for a Lady & Sons'18 employee, would -- would the organization attempt19 to promote that employee into that other position?20 Is that a goal within the organization?21 MR. FRANKLIN: Object to you asking a22 hypothetical question on a 30(b)(6) deposition.23 Subject to that, you can answer.24 MR. WITHERS: I object because I don't25 think that's part of the scope under the notice



16/43

15 (Pages 54 to 57)

Page 541 that this witness has been propounded for.2 MR. FRANKLIN: Are you still on number3 3?4 MR. BILLIPS: Actually, I've been kind5 of going back and forth between them.6 MR. FRANKLIN: It doesn't seem to fit7 into any of those categories of 1, 2 or 3.8 MR. BILLIPS: You can answer.9 MR. FRANKLIN: You can answer.

10 THE WITNESS: You said I could answer?11 MR. FRANKLIN: Yeah. You can answer.12 THE WITNESS: I'm sorry. We post13 positions. The position would, yes, be posted at14 all of the locations. It is always our goal to15 promote from within. I don't know many cases16 where Uncle Bubba's employees have left Uncle17 Bubba's or Lady & Sons have wanted to leave Lady &18 Sons. They usually go for promotions within their19 own areas.20 BY MR. BILLIPS:21 Q. Okay. And has Paula Deen Enterprises22 provided training sessions for managers at Uncle23 Bubba's and Lady & Sons?24 MR. WITHE RS: Objection. That's plainly25 outside of the scope of the matters for which she

Page 551 is being offered under the notice.2 MR. BILLIP S: It is within the scope of

3 having the same or substantially identical4 operation business purpose supervision.5 MR. WITHERS: I think it's plainly6 within your paragraph 7 of your notice,7 description of the training. Provide managerial8 supervisory personnel.9 MR. BILLIP S: The question that I'm

10 asking this witness is whether one entity, Paula11 Deen Enterprises, has provided training to12 employees of the other entities. Go ahead.13 THE WITNESS: We have through Mackworks.14 BY MR. BILLIPS:

15 Q. Okay. Who paid for it?16 A. You would need to ask our accountant.17 Q. Okay. Was there a period of time18 between J anuary 2008 to the present during which19 Earl Hiers was removed from any direct managerial20 role at Uncle Bubba's?21 A. Not to my understanding, no.22 Q. Was he -- are you aware of a time in23 which he was directed not to interfere with the24 operation of the restaurant?25 A. No, I'm not.

Page 561 Q. Okay. Who would have the authority to2 supervise or direct Mr. Hiers' work at Uncle3 Bubba's?4 A. The other owner, Paula Deen.5 Q. Okay. One of the functions that6 Mackworks performed -- strike. When Mackworks was

7 hired, did they come in and actually perform a8 human resources role?9 MR. FRANKLIN: Object to that. It's

10 outside the scope.11 MR. BILLIPS: If you would let me finish12 my question, you might find that it's within the13 scope.14 MR. FRANKLIN: I don't think I will.15 MR. BILLIPS: Please let me finish.16 MR. FRANKLIN: Go on.17 BY MR. BILLIPS:18 Q. Did Mackworks come in and perform a19 human resources role as if they were employed by20 Paula Deen Enterprises?21 MR. FRANKLIN: I'll object.22 MR. WITHERS: Object. Object. Calls23 for speculation with respect to what as if they24 did something. Calls for speculation and25 conclusion. And object it's outside the scope of

Page 571 the matters which this witness has been propounded2 for the purpose of your questioning.

3 MR. FRANKLIN: He beat me to it.4 MR. BILLIPS: You can answer.5 MR. FRANKLIN: You can answer.6 THE WITNESS: Can you say the question7 again. I'm sorry.8 BY MR. BILLIPS:9 Q. Did Mackworks perform human resources

10 supervision and functions for the Paula Deen11 organizations?12 A. Can I clarify that by asking --13 Q. Sure.14 A. Are you asking if they did disciplinary

15 action or are you just asking did they help in16 training?17 Q. Well, neither really.18 A. Okay.19 Q. I'm asking, for example, did they come20 in and audit human resources personnel files and21 direct the entities to change the way they were22 maintaining them?23 A. Yes, they did.24 Q. Okay. And did they provide training to25 managers on how to perform disciplinary functions?



17/43

16 (Pages 58 to 61)

Page 581 MR. WITHERS: Same objection with2 respect to being offered outside of the -- or a3 question that is squarely outside the matters that4 this witness has been propounded to respond to.5 MR. BILLIPS: You can answer.6 MR. FRANKLIN: And I join in that.7 We're about at the end of the rope with you asking8 questions outside the scope. I don't want to9 start instructing her not to answer, but I'm going

10 to if you persist.11 MR. BILLIPS: Are you going to seek a12 protective order?13 MR. FRANKLIN: I beg your pardon?14 MR. BILLIPS: Are you going to seek a15 protective order?16 MR. FRANKLIN: We'll do what's17 appropriate.18 MR. BILLIPS: Because I'm not aware of a19 privilege that would apply. But let me ask you.20 Who are you going to identify to give testimony on21 the remaining items?22 MR. FRANKLIN: We are going to have J ody23 Farmer testify as to human relations issues. We24 are going to --25 MR. BILLIPS: Could you do them by

Page 591 number, so I could --2 MR. FRANKLIN: Where are we. Mr. Farmer

3 will testify and respond to 4, 5, 6, 7, 8, 14, 15,4 16, 17, 18, and that's it.5 MR. BILLIPS: Did you say 16?6 MR. WITHERS: Yes.7 MR. FRANKLIN: I did.8 MR. BILLIP S: 18. Was he -- that's one9 of his?

10 MR. WITHERS: Yes.11 MR. FRANKLIN: Yes. Mr. Schumacher will12 respond to 9, 11, which we are objecting to, and13 he will not answer any questions with regard to14 number 11 -- I'm sorry, 12, 13.

15 And Melissa McCurry will respond to 20,16 21, 22. That's it. I think that ought to add up.17 While you're contemplating your next question,18 let's take about a five-minute break.19 MR. BILLIPS: Sure.20 (Recess from 2:27 p.m. to 2:38 p.m.)21 (Exhibit 5 marked for identification.)22 BY MR. BILLIPS:23 Q. I'll show you what's been marked as24 Exhibit 5 to your deposition. This is an25 August 18, 2010 email of which you were one of the

Page 601 recipients.2 A. Yes.3 Q. And in light of the limitations of your4 role as a deponent, earlier I asked you if there5 was a period during which Mr. Hiers' role was6 limited.7 If you look under item number two where8 it says HR issues, Bubba and Willy encounter.9 Plan: J im Gerard notified. Karl meeting with

10 Uncle Bubba today to reinforce, quote, no11 operations interference. Do not come onsite12 impaired. Do contribute via interaction with13 tourists, guests, photo ops as appropriate. Do14 you see that?15 A. Uh-huh.16 Q. Is it true that during this time period17 in August of 2010 Mr. Hiers --18 MR. FRANKLIN: Object to that. That's19 not covered by any of these categories, and I'm20 going to instruct her not to answer.21 MR. BILLIPS: Counsel, the item number22 1 --23 MR. FRANKLIN: It's not up for debate.24 MR. BILLIPS: Item number 1 asks the25 witness to testify to the duties of each such

Page 611 director, officer and manager.2 MR. FRANKLIN: And she's testified to

3 duties.4 MR. BILLIPS: And I am asking her and5 impeaching her with regard to a specific manager.6 MR. FRANKLIN: A 30(b)(6) deposition is7 not designed for impeachment.8 MR. BILLIPS: I don't know where you saw9 that in the rules, because it's not contained in

10 the book that I've seen.11 MR. FRANKLIN: She's not going to answer12 that question.13 BY MR. BILLIPS:14 Q. Ma'am, was there a time period -- let me

15 get the question out. Was there a time period in16 August of 2010 in which Mr. Hiers was instructed17 not to have any -- not to interfere with the18 operations of Uncle Bubba's restaurant?19 MR. FRANKLIN: And I'm going to instruct20 her not to answer. That does not fall within the21 scope of -- if you say it's covered by 1, I say it22 isn't. 2 or 3.23 MR. WITHERS: Same objection.24 MR. BILLIPS: You're instructing her not25 to answer?



18/43

17 (Pages 62 to 65)

Page 621 MR. FRANKLIN: That's what I'm2 instructing her.3 MR. BILLIPS: Are you following --4 MR. FRANKLIN: And if we need to, we'll5 get a protective order. So if you want to star6 that and we'll come back another day, that's fine.7 MR. BILLIPS: You will need to get a8 protective order.9 BY MR. BILLIPS:

10 Q. Was there a time period in August of 11 2010 when Mr. Hiers' role was limited to12 interacting with tourists, guests and photo ops as13 appropriate?14 MR. WITHERS: Objection and same15 instructions.16 MR. FRANKLIN: Yeah. Same instruction.17 MR. BILLIPS: I'm sorry.18 MR. FRANKLIN: That's the same question19 in a different body.20 MR. BILLIPS: Okay. It's not really21 what I'm about to say. Well, I guess you're22 representing this witness, too, to the extent23 she's here as an agent of Uncle Bubba's, right?24 Okay. I was forgetting that she had a tripartite25 role.

Page 631 MR. FRANKLIN: And now you know.2 MR. BILLIPS: Now I remember.

3 MR. FRANKLIN: We're here to please.4 MR. BILLIPS: That's working out so far,5 so that's good.6 MR. FRANKLIN: Glad you're so happy.7 BY MR. BILLIPS:8 Q. Was it within the scope of the duties of 9 Mr. Schumacher to send written warnings to

10 managers for them to issue to employees?11 MR. FRANKLIN: About what? What are12 you --13 MR. BILLIP S: About anything. For a14 disciplinary action.

15 BY MR. BILLIPS:16 Q. Did Mr. Schumacher draft those to send17 to managers to issue to employees? You don't18 know?19 A. I don't know.20 Q. Okay.21 A. He has not sent one to me so, no.22 Q. Do you know if that was within the scope23 of his duties during the period of time 2008 --24 2008 to the present?25 A. No. My understanding of the scope of

Page 641 his duties were financial.2 Q. Okay.3 A. General managers would have written4 documentation for files.5 Q. And were you unaware that Mr. Schumacher6 would write such documentation and give it to them7 to issue?8 A. Say that again. I'm sorry.9 Q. Were you unaware that Mr. Schumacher

10 would draft such documentation and give it to11 managers to issue to the employees?12 A. I was never made aware, no.13 Q. Was Mr. Schumacher the person with whom14 the Mackworks people communicated regarding their15 audit and findings, their -- their human resources16 audit and findings?17 A. He was the initial person, yes.18 Q. Okay. And was he their contact?19 A. As far as I know, yes, he was their main20 contact.21 Q. All right. And that was for all three22 of the companies he was the contact?23 A. Yes.24 Q. And when Mackworks was doing its audit,25 it was also including the Paula Deen Retail?

Page 651 A. Yes.2 Q. Okay. Was it including any other

3 companies?4 A. Not that I'm aware.5 Q. Did PDR operate the store at Uncle6 Bubba's? I think I asked that. I don't remember7 the answer.8 A. No, they did not.9 Q. That was operated by Uncle Bubba's?

10 A. Yes.11 Q. Did Mr. Schumacher have the authority to12 write-up general managers of the restaurants?13 MR. WITHERS: Object to the term14 write-up. It's vague and ambiguous.

15 MR. BILLIP S: Issue disciplinary16 reprimand.17 BY MR. BILLIPS:18 Q. Ma'am?19 A. Yes.20 Q. Okay. Did he, in fact, issue reprimands21 to general managers on occasion?22 A. I'm sure he has, yes.23 Q. Okay. He issued reprimands to Dustin24 over the monkey incident, correct?25 A. Yes.



19/43

18 (Pages 66 to 69)

Page 661 Q. Did the -- did Uncle Bubba's and Lady &2 Sons have policies and procedures manuals?3 A. Yes, they did.4 Q. And were they identical except with5 regard to the names on the front and on various6 forms?7 A. I would believe so. They're both8 restaurants.9 Q. All right. And they were prepared by

10 Paula Deen Enterprises; is that correct?11 A. No, they were not.12 Q. Who were they prepared by?13 A. By the individual locations.14 Q. So you're not suggesting that they15 prepared them independently, are you?16 A. Well, Lady & Sons. There was no Paula17 Deen Enterprises when The Lady & Sons started, so18 they had to have had a manual prior to us coming19 in to --20 Q. So Lady & Sons and Uncle Bubba's have21 policy manuals?22 A. Yes.23 Q. And they're identical, correct, except24 for the names?25 A. I would think so, yes.

Page 671 Q. And you -- were they -- strike. By whom2 were -- was the Lady & Sons manual prepared?

3 A. That happened before my time. I don't4 know who drafted it. I know J im Gerard has5 approved manuals for us, so...6 Q. Okay. During 2010?7 A. Can I clarify. These are employee8 manuals, right? You're talking about employee9 manuals?

10 Q. I'm talking about policy and procedure11 manuals.12 A. Okay. Policy and procedure manuals.13 Procedures would be different at both locations,14 so they would have to be done by the locations.

15 But employee policies would -- are pretty much all16 law.17 Q. Okay.18 A. You lawyers kill a lot of trees.19 Q. You know, that is what happens when20 things are produced in paper.21 (Exhibit 6 marked for identification.)22 BY MR. BILLIPS:23 Q. I'll show you what's marked as Exhibit24 6. Do you recognize Exhibit 6 being an email25 dated December 12th, 2011 that reflects Paula

Page 681 Deen Enterprises contributing money toward the2 compensation of employees of Uncle Bubba's?3 A. Uh-huh. Yes. I'm sorry.4 Q. All right. So according to this email,5 Paula Deen Enterprises provided funds to6 compensate for a bonus for all of the employees of 7 Uncle Bubba's; is that correct?8 A. That's what this reads, yes.9 Q. Okay.

10 MR. FRANKLIN: Surely you're not going11 to amend and sue them for generosity.12 THE WITNESS: Well, Paula would have the13 right under Paula Deen Enterprises to.14 MR. BILLIPS: I'm not suggesting that15 generosity is something for which they could be16 sued. I'm merely suggesting that these are17 entirely integrated enterprises, as is apparently18 recognized by everybody in the company.19 BY MR. BILLIPS:20 Q. Did Uncle Bubba's and Lady & Sons21 coordinate in setting prices for catering for22 outside customers?23 A. I wouldn't think that they would have24 done it together, no. Lady & Sons has their own25 catering and Uncle Bubba's has their own catering.

Page 691 And the food offered at each is somewhat2 different.

3 (Exhibit 7 marked for identification.)4 Q. I'll show you what's marked as Exhibit5 7. Is Exhibit 7 an email from Mr. Schumacher6 discussing a catering event and the prices offered7 by L&S, and his suggestion that the price offered8 by Uncle Bubba's be increased in light of the9 profit -- the price offered from L&S?

10 A. That's what this reads.11 Q. Okay. Was it common for the two12 restaurants to communicate with each other about13 catering events where either one of them might do14 the event?

15 A. This was an actual event for Karl.16 Q. Right.17 A. The Elks Lodge was his, so he asked for18 both of them to be part of it. In most cases,19 unless they request for both restaurants, they're20 two different types of food. So it's rare that21 one would want the other.22 Now, if Lady & Sons couldn't handle an23 event, I would certainly hope that they would send24 the business over to Uncle Bubba's. It only makes25 sense. But, no, I don't think that they -- they



20/43

19 (Pages 70 to 73)

Page 701 sit together and talk about joint opportunities.2 Q. Okay. Lady & Sons and Uncle Bubba's,3 are they in competition with each other?4 A. Not really, no.5 Q. Okay. And employees are instructed at6 the two restaurants to refer customers between the7 restaurants, correct?8 A. Absolutely.9 Q. So that the common goal is to get the

10 customers into one of those two restaurants?11 A. The common goal is to get them into both12 restaurants.13 Q. Okay. Preferably not at the same time.14 A. Yes. Correct.15 Q. So if there is a -- an issue about a16 customer or if you have a potential customer and17 they're going out to dinner, you want them to come18 to one of the two?19 A. Correct.20 Q. And the two restaurants work together to21 refer customers to each other where that22 opportunity is available, correct?23 A. They are supposed to.24 Q. Okay. And do the restaurants provide25 coupons for each others' operations?

Page 711 A. I believe they do, yes.2 Q. Okay. So you can go to Lady & Sons and

3 get a coupon to Uncle Bubba's?4 A. At times, yes. And vice versa.5 Q. And vice versa. Do the restaurants also6 coordinate in buying and purchasing food?7 A. Not that I'm aware.8 Q. Okay. Did they determine -- do they do9 anything to see if they're getting the same food

10 costs from the same vendors?11 A. They may have discussions. Chef to chef 12 may have a discussion, but nothing formal.13 Q. Okay.14 (Exhibit 8 marked for identification.)

15 BY MR. BILLIPS:16 Q. I'll show you what's marked as Exhibit17 8. Is Exhibit 8 an email from Karl Schumacher18 September 27, 2010 in which you are copied talking19 about one major item that I heard came from the20 panel that met to interview the human resource21 candidates last week was people from Lady & Sons22 and Uncle Bubba's want to work closer. One area23 is to see if we're getting the same food costs.24 A. Uh-huh. Yes.25 Q. So did this get carried out?

Page 721 A. Not that I'm aware of.2 Q. Okay. Do you know one way or the other?3 A. I don't know one way or the other.4 Q. I'm sorry. For the record, counsel was5 showing the witness a note.6 MR. FRANKLIN: I'll even read what I7 said. You deserve a raise.8 MR. BILLIPS: Okay.9 THE WITNESS: You can make that happen.

10 MR. FRANKLIN: Make sure that's in the11 record now.12 MR. WITHERS: That was another gotcha13 moment.14 MR. BILLIP S: If I could, I would15 certainly try.16 THE WITNESS: Thank you. Put that in17 the record.18 MR. FRANKLIN: It's good we agree on19 something. You want to destroy their brand, but20 you want Theresa to get a raise.21 MR. BILLIPS: I have no desire to22 destroy their brand.23 MR. FRANKLIN: I guess it's Mr. Woolf.24 MR WOOLF: Me either.25 MR. BILLIPS: I would like the brand to

Page 731 remain as popular as possible and financially2 lucrative as possible.

3 THE WITNESS: I need to look at his4 paper. It goes J FTF -- never mind. I'm just5 trying to find humor in all of this.6 MR. FRANKLIN: I missed that one.7 THE WITNESS: When you're looking down8 his list, my initials end in F, and his end in F.9 So it looks like -- I'm trying to figure out where

10 he's at. I can't tell whether he's at a J .F. or a11 T.F.12 MR. BILLIPS: This actually won't help13 you. I'm just marking who was responsible for14 what, so it's not going to help you know where I

15 am.16 MR. FRANKLIN: It's the blind leading17 the blind.18 BY MR. BILLIPS:19 Q. Now, Ms. Feuger, has there been any20 effort to change the forms or logos or other21 identifying items between Paula Deen Enterprises22 and Lady & Sons and Uncle Bubba's because of this23 lawsuit?24 A. No.25 (Exhibit 9 marked for identification.)



21/43

20 (Pages 74 to 77)

Page 741 BY MR. BILLIPS:2 Q. Is Exhibit 9 an email from Karl3 Schumacher to you and other individuals dated4 October 28th, 2010?5 A. Yes.6 Q. And is this email relating to no7 harassment policy forms?8 A. Yes, it is.9 Q. And there is a question, need to order

10 these forms for Uncle Bubba's and Paula Deen11 Retail. There was a talk about company-wide12 logos. You passed that question on. Is there a13 logo we can use company wide, and then asked Karl14 Schumacher what is the parent company that all15 companies fall under. And then the top of the16 email is his response, correct?17 A. Correct.18 Q. He says, "I do not want to use a19 company-wide form. We're trying to keep each20 company with their own identity and not be treated21 as a family of companies, as someone recently has22 tried to treat us." Was that referring to Ms.23 J ackson's EEOC charge or do you know?24 A. I never caught that. That's what it was25 referring to.

Page 751 Q. Okay. But the people who were2 determining what the logos would be were all the

3 same people for all the companies, right?4 A. With input from each of the locations,5 yes.6 Q. Sure.7 (Exhibit 10 marked for identification.)8 BY MR. BILLIPS:9 Q. Is Exhibit 10 an example of what I was

10 asking about earlier with employees being11 considered for an in-house promotion for an12 employee to go from Lady & Sons to a front house13 manager position at Uncle Bubba's?14 A. Yes.

15 MR. FRANKLIN: Why don't you let her16 read the thing.17 THE WITNESS: Yeah. I'm sorry.18 MR. FRANKLIN: I want you to read it19 first and then --20 MR. BILLIPS: Sure.21 THE WITNESS: Okay. What was the22 question?23 BY MR. BILLIPS:24 Q. Is this an example of what I had asked25 you about earlier with the company treating an

Page 761 employee going to a managerial position at Uncle2 Bubba's from a lower level position at Lady & Sons3 as being an in-house promotion?4 MR. WITHERS: Objection. Compound and5 asks her to comment upon your question.6 BY MR. BILLIPS:7 Q. You can answer.8 A. This looks like an email coming from9 Karl to J amie just suggesting that if there's a

10 Lady & Sons manager that's ready for a promotion,11 he'd like to recommend you for Uncle Bubba's12 position.13 Q. Right.14 A. Yes.15 Q. And he refers to that as an in-house16 move?17 A. Yes. He does refer to it as an in-house18 move.19 Q. Okay.20 (Exhibit 11 marked for identification.)21 BY MR. BILLIPS:22 Q. I'll show you what's been marked as23 Exhibit 11. Do you recall earlier I asked you24 if --25 MR. FRANKLIN: Why don't you let her

Page 771 read it first.2 MR. BILLIPS: Sure. That's fine.

3 THE WITNESS: Okay. I'm sorry.4 BY MR. BILLIPS:5 Q. Is Exhibit 11 a J uly 28th, 2010 email6 from Karl Schumacher?7 A. Yes.8 Q. And do you recall me asking you earlier9 if Ms. Deen had made it a priority for the

10 restaurants to work closer?11 A. Yes.12 Q. And in this email, J uly 28th, 2010,13 Mr. Schumacher indicates that Ms. Deen has made it14 more of a priority for the restaurants to work

15 closer, correct?16 A. I see where he says Paula has mentioned17 in the past that she wants the two restaurants --18 I don't know where you say it's a priority, unless19 I'm missing something.20 Q. The next sentence. Mentioned in the21 past, she wants the two restaurants to work22 closer.23 A. I'm not aware of this email, so my24 answer is still I didn't know it was a priority.25 Q. All right. Well, were you aware that



22/43

21 (Pages 78 to 81)

Page 781 the restaurant -- excuse me -- that Paula Deen2 organizations were working on -- working closer3 with regard to walk-in guests, large groups and4 catering?5 A. I knew that there had been discussions,6 yes. I was not part of any of those meetings.7 Q. Okay. Do you know the outcome of those8 discussions?9 A. I do not.

10 Q. Do you know whether they were -- whether11 they did, in fact, put into effect the items12 mentioned in Exhibit 11?13 A. I've seen brochures in The Lady & Sons14 for Uncle Bubba's and vice versa, so I would say,15 yes, that has happened. I'm not aware of number16 two.17 Q. Number two is to have --18 A. Large groups. Have The Lady & Sons19 banquet staff recommend people to try Paula's20 seafood restaurant. I don't -- I'm not in that21 operational day-to-day basis, so I don't know that22 they're doing it. Personally I hope they are.23 Q. Right.24 A. Catering, again, I'm not in on a25 day-to-day basis. If there was a meeting that was

Page 791 held, it was discussed. I can't tell you whether2 it was implemented or not.

3 Q. Mr. Schumacher would have more4 information about that?5 A. Yes.6 Q. Mr. Schumacher would have more7 information than you about the integration of the8 operations of the restaurants and Paula Deen9 Enterprises; is that true?

10 A. I don't really know what you mean by11 integration.12 Q. To the extent that they were operated as13 divisions or departments of the single entity,14 would Mr. --

15 A. Yes.16 Q. He would have more information about17 that?18 A. Yes.19 Q. Okay. He would have more information20 about the identity of the business purpose and21 operation of those organizations?22 A. What do you mean by the identity?23 Q. By the extent to which they are24 identified.25 A. As far as on paper, yes.

Page 801 Q. Okay. And as a matter of fact, he had a2 greater role in actually overseeing operational3 issues as well, correct?4 A. At times, yes.5 Q. Okay. Who is Michelle Elizabeth White?6 A. She's my brand manager.7 Q. Okay. And the UBLJ at Uncle Bubba's is8 Lisa J ackson; is that right?9 A. I don't remember Lisa's email address,

10 but if that's what it says, yes.11 Q. Okay.12 MR WOOLF: Let me just say out loud, we13 would -- to the extent that our questions have14 relied on documents, we would be a little more15 prepared except we got 60,000 pages of documents16 put on our desk on Friday. That's fine. That's17 why it's taking a little longer here.18 MR. WITHERS: No worries. We've all19 been working hard to get a grip on these20 documents.21 MR. BILLIPS: And if we could, I think22 we put this in a letter, but to the extent that23 documents are electronic, we did request that they24 be produced in native format.25 And it would be a whole lot easier, I

Page 811 think for everybody, if native -- if electronic2 documents were produced in native format.

3 There was no -- and I will note that4 there was no objection to not producing them in5 native format. So I think the rules entitle us to6 receive them that way.7 BY MR. BILLIPS:8 Q. I'm going to go through and come back to9 this in a minute. But while we're looking, the --

10 item 19 is -- requests to state, describe and11 explain the nature of the relationship between12 Dustin Walls and/or J amie Deen and Bobby Deen.13 A. Okay. J amie and Bobby are brothers.14 They're both owners of The Lady & Sons. Dustin

15 came onboard at The Lady & Sons in April of 199916 working as a -- I think he produced Hoecakes.17 Worked his way up. Was promoted to general18 manager in 2005. They've developed a friendship19 over those years.20 Q. Is that it?21 A. That's it.22 Q. What did you do to prepare yourself to23 testify on that item?24 A. I have been with the company for almost25 ten years, so I knew most of it myself.



23/43

22 (Pages 82 to 85)

Page 821 Q. Okay. Well, did you ask anybody for2 information to prepare yourself?3 A. Yes.4 Q. Who?5 A. I checked with J amie to find out when6 Dustin started.7 Q. Did you ask --8 A. I checked with Karl to make sure that9 the dates were accurate.

10 Q. Okay. What else?11 A. That's it.12 Q. Did you ask them the nature of their13 relationship?14 A. No, I did not.15 Q. And had you ever heard of there being16 any different relationship between them?17 A. What do you mean by different?18 Q. Something beyond what you've described?19 MR. FRANKLIN: Like what?20 THE WITNESS: Like what?21 MR. BILLIPS: Anything.22 MR. FRANKLIN: Same sex marriage. What23 are you talking about?24 BY MR. BILLIPS:25 Q. Sure. Same sex marriage, same sex

Page 831 relationship, one of them saved the other one's2 life from an attack by killer bees. You know,

3 anything.4 MR. FRANKLIN: You heard about that5 incident.6 THE WITNESS : I know that they're7 friends. They've hung out together on many8 occasions. If I'm not mistaken, they were in each9 others weddings.

10 BY MR. BILLIPS:11 Q. Okay. Who had the -- please name12 everyone within the organizations, Paula Deen13 organizations who had the authority to fire Dustin14 Walls after he had referred to an African-American

15 employee as a monkey.16 A. The owners, J amie, Bobby, Paula. Karl17 would have had authority, if those three gave him18 so. But the three that have the overarching19 authority are the owners.20 MR. BILLIP S: Okay. Give us about ten21 minutes.22 MR. FRANKLIN: Okay.23 MR. BILLIPS: If we could have the room24 for that time.25 (Recess from 3:31 p.m. to 3:39 p.m.)

Page 841 BY MR. BILLIPS:2 Q. J ust a couple more questions and then3 we'll need to have a discussion. Does Uncle4 Bubba's Seafood and Oyster House, Incorporated,5 have board of directors meetings?6 A. Not that I'm aware of.7 Q. Does it have minutes to your knowledge?8 A. Not that I'm aware of.9 Q. Okay. What about The Lady Enterprises,

10 Incorporated? Do they have board of director11 meetings?12 A. Not that I'm aware of.13 Q. Do they have minutes of board of 14 directors?15 A. Not that I'm aware of.16 Q. Boards -- is there a board of directors?17 A. We had one meeting -- board of directors18 meeting for Paula Deen Enterprises one time, and19 that was dissolved. So there is no board, to my20 knowledge, for any of the companies.21 Q. Okay. You had one meeting -- one --22 A. Time meeting.23 Q. -- board of directors meeting for Paula24 Deen Enterprises, Incorporated?25 A. Yes.

Page 851 Q. Okay. And now it's become Paula Deen2 Enterprises, LLC?

3 A. I don't know whether -- I'm sorry. I4 don't know whether it was incorporated. I don't5 know whether the board was put under incorporated6 or LLC. We had one board meeting and it never --7 we never -- it was to discuss putting together a8 board and asking people to be on the board. And9 it was dissolved before it ever got started.

10 Q. What was dissolved, the meeting or the11 corporation?12 A. The board. The actual board itself.13 Q. Okay.14 A. So there is no board for any of the

15 organizations --16 Q. Okay.17 A. -- with any owners to include Paula18 Deen.19 Q. Okay. What is The Lady & Sons, LLC?20 What function does it perform?21 A. That's a Karl -- I mean, I apologize.22 That's a Karl question, the difference between The23 Lady & Sons, Inc., versus --24 Q. Lady & Sons, LLC?25 A. Uh-huh.



24/43

23 (Pages 86 to 89)

Page 861 Q. Okay.2 A. For accounting purposes.3 Q. Okay. So the business purpose of The4 Lady & Sons, LLC, is something that Karl5 Schumacher would have to testify to?6 A. Yes.7 Q. Okay. As a matter of fact, the business8 purpose of having all of these entities at least9 nominally distinct is something that Mr.

10 Schumacher would have to testify to; is that fair?11 A. He could, yes.12 Q. He would have greater information and13 more knowledge and better ability to provide14 accurate testimony on that subject than you would,15 correct?16 A. He would have greater knowledge from the17 accounting perspective on how paperwork is filled18 out and LLCs and Inc.'s are developed, yes, and19 what goes to those different accounts. But from20 an operational standpoint, I have just as much21 knowledge.22 Q. Okay. Except for the items that we've23 discussed earlier --24 A. Right.25 Q. -- where you acknowledge that Mr.

Page 871 Schumacher will have to answer questions about the2 extent to which there was an effort to coordinate

3 for purposes of the entities, correct?4 A. Yes.5 Q. Okay.6 A. That was something he was hoping to do.7 Q. Okay. And according to his email, it8 was something that Ms. Deen was hoping to do,9 correct?

10 A. Correct.11 MR. BILLIP S: All right. It's apparent12 that Mr. Schumacher would have greater knowledge13 on at least items 1 and 3 than this witness.14 There have been items that --

15 MR. FRANKLIN: I'm not sure she said --16 finish. I'm sorry to interrupt you.17 MR. BILLIP S: There's been questions18 where she has been unable to answer and has had to19 defer to Mr. Schumacher with regard to the20 coordination of the -- of the operation of the21 businesses, whether they have substantially22 identical business operations in particular areas.23 And we would hope that you would24 stipulate, since Mr. Schumacher is going to be25 appearing anyway, to allowing us to ask Mr.

Page 881 Schumacher those questions. Is he going to be2 here tomorrow?3 MR. FRANKLIN: He may be here today or4 tomorrow.5 MR. BILLIPS: Okay. But subject -- and6 there is the one issue where we had -- where you7 instructed the witness not to answer.8 MR. FRANKLIN: Right. I think that was9 if Mr. Hiers came in drunk or lucid.

10 MR. BILLIP S: No. It was about whether11 Mr. Hiers was told that he -- whether he was12 barred from having operational -- interfering in13 the operations of the restaurant.14 MR. FRANKLIN: I'm not sure that was the15 question, but the record will speak for itself.16 THE WITNESS: Would you allow me to ask17 that question to the witness, was Mr. Hiers barred18 from having -- from interfering in the operation19 of The Lady & Sons restaurant?20 MR. FRANKLIN: And you can answer that.21 You can answer that.22 THE WITNESS: Based on the document that23 you showed me, I'm not sure what exhibit it was,24 it states yes.25 BY MR. BILLIPS:

Page 891 Q. Okay. And do you know why?2 A. No. I'm not aware.

3 Q. Okay. Do you know who barred him from4 having that operational role?5 A. That would be Karl to Paula apparently,6 because that's what it states in the email.7 Q. Okay.8 A. If Mr. Hiers is a 50 percent owner of 9 Uncle Bubba's Seafood and Oyster House,

10 Incorporated, how could Paula tell him what to do?11 MR. FRANKLIN: Objection. That calls12 for speculation on her part.13 MR. BILLIPS: Well, it -- no. That14 calls --

15 MR. FRANKLIN: It does.16 MR. BILLIP S: It calls for a properly17 educated witness to testify to the organizational18 structure of these entities and the duties and19 powers of officers and directors.20 MR. FRANKLIN: She has testified, as I21 recall, that Mrs. Deen is an owner and she can22 fire.23 MR. BILLIPS: Can a 50 percent owner24 fire a 50 percent owner? That's my question.25 MR. FRANKLIN: That's really a



25/43

24 (Pages 90 to 93)

Page 901 contention issue --2 MR. BILLIP S: No. My question --3 MR. FRANKLIN: -- that needs to be4 answered -- is more suited to an interrogatory.5 MR. BILLIPS: You may feel that way.6 MR. FRANKLIN: I do feel that way.7 MR. BILLIPS: I disagree.8 MR. FRANKLIN: Well, that's good.9 BY MR. BILLIPS:

10 Q. My question, ma'am, is given that Ms.11 Deen is a 50 percent owner of Uncle Bubba's and12 that Mr. Hiers is a 50 percent owner of Uncle13 Bubba's, how would she have the authority to fire14 him?15 MR. FRANKLIN: Once again, that -- I16 object to that and I instruct her not to answer,17 because that's not -- that's a question more18 suited to an interrogatory that requires19 participation by counsel because it's a legal20 issue.21 MR. WITHERS: I object on the basis it's22 calling for a conclusion. And with respect to23 it's calling for a legal conclusion, I think we've24 already plowed this ground to be honest with you.25 Mr. Billips, it is my longstanding practice not to

Page 911 engage in conversations and dialogue with counsel.2 You know, we make our objections. You ask the

3 question. If we instruct the witness not to4 answer then, you know, we move on to the next5 matter. It's not -- it's not a dialogue between6 counsel.7 BY MR. BILLIPS:8 Q. Does Paula Deen have the authority to9 fire Bubba Hiers?

10 MR. FRANKLIN: Objection.11 MR. WITHERS: Objection. Asked and12 answered.13 MR. FRANKLIN: Same thing.14 BY MR. BILLIPS:

15 Q. You can answer.16 MR. FRANKLIN: No. It's been asked and17 answered.18 MR. BILLIP S: You're instructing the19 witness not to answer a question on the basis that20 it's been asked and answered?21 MR. FRANKLIN: It's asked and answered22 and it calls for a conclusion and that is --23 MR. BILLIPS: Most questions do.24 MR. FRANKLIN: Well, that is more suited25 to a written interrogatory. And as Mr. Withers

Page 921 said, I'm not going to argue with you.2 MR. BILLIPS: And all of those you3 believe under the federal rules are a basis for4 instructing the witness not to answer? Can you5 identify a privilege for me?6 MR. FRANKLIN: I just stated it. I'm7 not going to argue with you. That's why we have a8 courthouse.9 MR. BILLIPS: Ma'am --

10 MR. FRANKLIN: She's not going to answer11 that question.12 MR. BILLIPS: Let's do this, because13 it's obvious we'll have to go to the courthouse14 over it, but whether it's appropriate to bring15 this witness back or another witness back, let me16 ask one question to see where we're going.17 BY MR. BILLIPS:18 Q. Ma'am, do you know the answer to the19 question? Not answering, just give me a yes or20 no, do you know the answer to the question can21 Paula Deen fire Bubba Hiers?22 A. No.23 MR. BILLIPS: Okay. So like I was24 saying before, we'd ask your -- that you stipulate25 to Mr. Schumacher testifying on some of these

Page 931 issues since this witness does not know some of 2 the answers to some of our questions.

3 MR. FRANKLIN: I'll have to think about4 it.5 MR. BILLIPS: Well --6 MR. WITHERS: Let me just -- I don't7 mean to interrupt you, Mr. Billips. I thought you8 were finished. But let me just say this. The9 questions that she was uncertain of dealt with --

10 or the answers that she was uncertain of when you11 were asking her dealt with the documents that you12 were showing her, which primarily were Exhibits 413 through 11, Plaintiff's Exhibits 4 through 11 in14 the deposition, which were either to or from Mr.

15 Schumacher.16 To the -- I would suggest, Mr. Franklin,17 to the extent that she was unable to answer a18 question -- particular question about those19 exhibits, if you want to pose the same questions20 to Mr. Schumacher during his deposition as21 corporate designee, we can do that.22 The only other thing I recall her being23 unable to answer was the last question, last line24 of questioning where you were asking about The25 Lady & Sons, LLC, and the reason for those



26/43

25 (Pages 94 to 97)

Page 941 particular designations. And if you want to ask2 Mr. Schumacher about that, I think that's3 agreeable as well. In terms of replowing things4 that she's already testified to, I don't want to5 do that.6 MR. BILLIPS: Well, okay. And I have no7 desire to replow items to which she's already8 testified. There are documents in that similar9 vain to those which I've used here today that I

10 haven't bothered to waste our time asking her11 because she wouldn't know the answer to the12 question.13 If she didn't know the answer to these14 that we showed her, she wouldn't know the answer15 to the others either.16 So, you know, I don't think it would17 take that much longer of Mr. Schumacher as a18 witness, but --19 MR. WITHERS: Let's just -- I don't mean20 to interrupt you again. I apologize.21 MR. BILLIPS: Yes, you do too mean to22 interrupt me. I was going on and on.23 MR. WITHERS: You've got these long24 pauses. But I would sa

DEPO Feuger

Documents

Transcript of DEPO Feuger