The judge has denied a new trial as to evidence. Apparently the compensatory damage award of $7M stands. He has, based on prior cases that have set some sort of standard, reduced the punitive damages to $8.16M. The plaintiffs (Conti/Simons) have 30 days to accept or reject the judge's decision.
It is not clear from the judge's order if the Watchtower has any options. I assume they do and I assume they will reject the judge's order and appeal the entire case. What the judge has done is to give the WT a way out and a way to save a little face. His review of the case is saying to the Watchtower: "I've checked the way the case was handled and I feel you have no basis for an appeal. If you do appeal, the higher court will most likely agree with me and reject your appeal."
He is also saying, "Based on the evidence, and comparing the punitive damages award against other similar cases, I agree that the punitive damages arrived at by the jury were too large because they were based on the jury's emotions and desire to send a message and not reasonably based entirely on the evidence. Take what you can get Watchtower and get out while the getting is good."
Whether the judge wins the argument and convinces the WT to take what it can get - the damage has been done. The case files, evidence, and testimony are all in the public domain and the Watchtower can't do a thing about that. They will certainly face other trials - and those trials will use the Conti case as a template. The only way out for the Watchtower is to settle quick, admit their errors, and change their policies while they can.
I've heard from a fairly reliable source that the Watchtower is planning to once again reorganize their relationship with the local congregations to create a more formal legal barrier between the corporate WT and local congregations. I'll make this as plain as I can:
Elders will soon find themselves on their own in these types of cases because the WT corporate legal eagles will find a way to effectively make them "franchises" - just like McDonald's and Taco Bell.
How would this work? Watchtower supplies the operating guidelines, teaching materials, literature, and training. They will approve the ownership and management. Their monthly franchise fee will be everything over and above local Kingdom Hall expenses. But the "franchised Kingdom Halls" will be separate legal entities.
I know this sounds like Menlo Park in reverse, but this is the only way the WT can free itself from the burden of all (or at least some) local liabilities.
For those of you who are still active brothers seeking out more responsibility within your Kingdom Hall - run, don't walk, away from any idea of becoming an elder or even a ministerial servant. You could find yourselves personally liable (just as the North Fremont KH was in the Conti case) and lose everything you own. Even if you win your case, it is likely that the WT will require you to get local counsel and not depend on WT Legal for your defense.
Time will tell us if this rumor is right or not. I think it will be sooner than later...
JV
