Enron Mail

From:rtellis@milbank.com
To:richard.b.sanders@enron.com
Subject:Discussion with Barth, Lebow and Vas re: Schultes
Cc:showard@milbank.com
Bcc:showard@milbank.com
Date:Wed, 20 Sep 2000 09:20:00 -0700 (PDT)

Richard, earlier today I spoke with Barry Friedberg, Schultes' New York
counsel to get some idea of what areas Schultes' Ohio counsel would be
interested in during tomorrow's discussion.? Friedberg explained that the
Ohio counsel are "classic plaintiff's lawyers" - they are not that familiar
with the issues and will tend to ask broad generalized questions.? Friedberg
also noted that they may be unaware that Enron is a defendant in the two
California actions and will likely be unaware that Enron is the only
defendant who has not cross-complained against Schultes. For purposes of
insuring that any deposition testimony in the Ohio case is not used against
any defendant in the bondholders' litigation,? Friedberg thought it would be
a good idea to try a limit any discussion to post-closing events and, more
specifically, whether Enron personnel were privy to any discussions with SDI
or McDonald regarding (1) the decision to fire Schultes, (2) Schultes'
alleged dishonesty and (3) Schultes' alleged incompetence.? Friedberg
explained that Busse's defenses to the defamation and wrongful termination
claims are (1) that he did not make any defamatory statements and (2) if he
did, they were true.? The problem with the second defense is that it may
affect our defenses in the bondholders' litigation.? If Enron or others were
aware that Schultes was dishonest or incompetent it will be important to know
when and how they learned of such information.? Ideally, they learned it
after the closing and only through discussions between McDonald and SDI.


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