Scientology Crime Syndicate

Subject: Grady Ward to Scientology: NOTICE OF RESCISSION
From: grady@gradyward.com (Grady Ward)
Date: Mon, 19 Apr 1999 16:45:53 GMT

This was served on scientology today:


"In order to obtain equity, one must do equity"

Grady Ward
3449 Martha Court
Arcata, CA  95521-4884
Telephone (707) 826-7712
(707) 826-0360 facsimile
E-mail : grady@gradyward.com

April 19, 1999

Thomas R. Hogan
Law Offices of Thomas R. Hogan
10 Almaden Boulevard, Suite 535
San Jose, CA 95113

	Re:	Religious Technology Center, Inc. v. Grady Ward
	No. C-96-20207-RMW (EAI)

Dear Mr. Hogan,

	This letter is to give notice to your client that I elect 
	under California Civil Code  1689(b) to rescind the 
	settlement contract that you believe we entered into on May 
	12, 1998. Pursuant to California Civil Code  1691, I hereby 
	offer to return to you all consideration given me such as 
	forbearance of any claim(s) in the district court for 
	alleged copyright infringement, upon condition that you 
	likewise return or void all consideration that I have 
	tendered to you such as the $200 monthly payments, order and 
	consent to judgment and permanent injunction.

	As soon as practicable, I will also make a motion in 
	District Court to set aside the Order, Final Judgment and 
	Permanent Injunction as material elements of the rescinded 
	settlement contract.fn.1

	Your client, R.T.C. and its attorneys have shown a clear 
	intention to dishonor the settlement negotiations entered 
	into between us by repeatedly breaching the contract's 
	implied covenant of good faith and fair dealing by 
	wrongfully trying to deprive me of the very income I need to 
	pay the $200 a month sum owed to you for life specified in 
	the May 12, 1998 settlement negotiations.fn.2 At least twice 
	Marty Rathbun, a member of the board of RTC and a 
	principal in the May 12, 1998 settlement negotiations has 
	tried tortiously and in bad faith to interfere with my 
	employment with Robert S. Minton and F.A.C.T.Net even though 
	there was no justifiable reason to do so. 

        The most recent example of this wrongful conduct on the part 
        of your client and its attorney, namely, Samuel D. Rosen, 
        Marty Rathbun, and Mike Rinder occurred on February 28, 1999 
        that a declaration under penalty of perjury I received on 
        April 5, 1999 from Robert S. Minton in which he testifies 
        that Marty Rathbun used false and defamatory statements that 
        I was a "convicted copyright infringer" in order to persuade
        F.A.C.T.Net to terminate me. To wrongfully attempt to force 
        me to breach my obligation to pay you the $200 a month and 
        to thereby owe you $3,000,000.00 by default is a material 
        breach going to the heart of the executory contract..fn3 
        Considering that this behavior also jeopardizes my family 
        with young children who rely upon my meager income for food 
        and shelter is also outrageous and indefensible. And 
        although I have written you about the facts described in the 
        Minton declarations on March 22, 1999 in my successful 
        Opposition to your motion to strip me of my IFP status, 
        you pointedly did not deny their truth in your Reply.

	I am issuing notice at this time even though I believe that 
	no valid settlement contract exists because under the law 
	the rescission remedy must be diligently pursued once the 
	facts justifying such rescission are known.fn.4 

	Very truly yours,

Grady Ward, in pro per, in forma pauperis

1. April 5, 1999 Declaration of Robert S. Minton
2. November 12, 1998 Declaration of Robert S. Minton

1 A contract of settlement may not be rescinded partially. Larsen v 
Johannes (1970, 1st Dist) 7 Cal App 3d 491, 86 Cal Rptr 744. Cal Civ 
Code  1688 (1999)

2 "A refusal or failure of a party to perform his part of the
contract, or a clear intention to violate it, or the annexation of 
an unwarranted condition, gives the other party the right to 
rescind." Loop Bldg. Co. v De Coo (1929) 97 Cal App 354, 275 P 881.

3 "The covenant of good faith finds particular application in
situations where one party is invested with a discretionary power 
affecting the rights of another. Such power must be exercised in 
good faith." Marsu, B.V. v. The Walt Disney Company, 1999 U.S. App.
LEXIS 5413  (CA9 Cal, March 25, 1999); One breach of the implied 
covenant is to attempt to prevent the other party from performing 
her contractual duties or satisfying contractual conditions. See, 
e.g., Monotype Corp. v. International Typeface Corp., 43 F.3d 443, 
451 (9th Cir. 1994); "California law recognizes implied covenant of
good faith and fair  dealing and certain contracts that neither 
party will do anything to deprive the other of benefit of contract."
Cancellier v. Federated Dept. Stores, 672 F.2d 1312, cert. denied 
103 S.Ct. 131  (9th Cir. 1982); Restatement (Second) of Contracts  
205 (1981); "Every contract imposes upon each party a duty of good
faith and fair dealing in its performance and its enforcement."
Carma Developers, Inc. v. Marathon Dev. Cal., Inc., 2 Cal. 4th 342, 
371, 826 P.2d 710 (1992); The California Supreme court's analysis of 
the state and applicability of the Implied Covenant of Good Faith 
and Fair Dealing in Seaman's Direct Buying Service, Inc. v. Standard 
Oil Co. (1984) 36 Cal.3d 752, at pp. 768-770 [206 Cal.Rptr. 354, 686 
P.2d 1158]

4 Rescission within a reasonable time is necessary where it is 
desired to rescind a contract for a breach thereof. Wenzel & H. 
Const. Co. v Metropolitan Water Dist. (1940, CA9 Cal) 115 F2d 25.

Religious Technology Center, Inc. v. Grady Ward
No. C 96-20207-RMW (EAI)

April 19, 1999
Page 2 of 2

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[Note: The Minton declarations describing the facts of the cult's breach of contract and bad faith are available from my website under "my work --> legal"]

-- Grady Ward grady@gradyward.com http://www.gradyward.com/ (707) 826-7712 174E E007 35C4 511B 7DB7 D782 A32E A234 *Verified* PGP signature *required* to authenticate message

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