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CHURCH OF SCIENTOLOGY WINS IMPORTANT VICTORY IN CONTRACT DISPUTE WITH ADVERTISING EXECUTIVES

CHURCH OF SCIENTOLOGY WINS IMPORTANT VICTORY IN CONTRACT DISPUTE
 WITH ADVERTISING EXECUTIVES
 NEW YORK, June 18 /PRNewswire/ -- The Church of Scientology issued the following:
 In a breach of contract case brought by the Church of Scientology International (CSI) against the formerly well-known advertising and marketing firm of Trout and Ries, Inc. (T&R), and its principals Jack Trout and Al Ries, a Supreme Court of the State of New York Justice has ruled that contractually agreed upon communication restrictions are binding in perpetuity when so stated and do not violate free speech rights.
 The church filed the suit when T&R refused to pay $50,000 in liquidated damages for a breach of a 1986 contract with the church, which centered on a statement made by Trout that was included in a negative and highly prejudiced story on the Church of Scientology published by Time magazine in 1991.
 At one time, the 70-employee T&R firm boasted $30 million in annual billings but the partners dissolved the corporation and divided its assets in July 1990.
 Although the facts of the breach were never disputed, T&R contended that they were not personally liable due to the contract's expiration prior to T&R's dissolution and claimed the agreement was not contingent. However, the court found that the contract's article in question was "clear," "unambiguous," and "not limited," concluding that Trout and Ries were liable as shareholders-distributees for "actual damages" resulting from the breach.
 The church's president, the Rev. Heber Jentzsch, stated that damages are "substantial," and attorneys are gathering the necessary papers for a full determination.
 "We believe in fairness and justice," said Jentszch, "but history has proven that these rights are only preserved by constantly and repeatedly attaining them for the benefit of everyone."
 -0- 6/18/92
 /CONTACT: The Rev. Heber Jentzsch of the Church of Scientology, 213-960-3500/ CO: Church of Scientology ST: New York IN: SU:


MH -- DC013 -- 1539 06/18/92 13:14 EDT
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Publication:PR Newswire
Date:Jun 18, 1992
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