Preview
FILED: WESTCHESTER COUNTY CLERK 03/11/2024 11:36 AM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024
HL EXHIBIT 32
CHRYSTAL (HL DEF) DEPOSITION TRANSCRIPT
SEPTEMBER 28, 2020
FILED: WESTCHESTER COUNTY CLERK 03/11/2024 11:36 AM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024
3
1 SUPREMECOURTOFTHESTATEOFNEWYORK 1 l N D EX
COUNTYOFWESTCHESTER
2 2
3 PAMELAGOLDSTEIN, ELLYN& ) 3 DIRECTEXAMINATION
TONYBERKas Adninistrators ) BYMR.MACGILL.............................
4
4 of theEstateof Wnifred ) 4
Berk,andPAULBENJAMIN, on )
5 behalfof thernselvesandall ) 5
otherssimilarlysituated, )
6 ) 6
Plaintiffs, )
7 ) 7
VS. )1ndexNo.60767/2018
8 ) 8
HOULlHAN/LAWRENCE
INC., )
9 ) 9
Defendant. )
10 10
11 11
12 CO NFI DENT IA L 12
13 13
14 TheWebExdepositionof 14
15 ANNETTE"TONr' CHRYSTAL , 15
16 takenby counselfor theDefendantonthe28thday 16
17 of Septernber,2020,via WebEx,beforeHeatherS. 17
18 Orbaugh,NotaryPublicin andfor the Countyof 18
19 Boone,Stateof Indiana,CCR:LA. 19
20 20
21 21
22 22
23 ACCURATEREPORTINGOFINDIANA 23
WilliamF.Daniels,Prop.,RPR/CP,CM
24 12922BrightonAvenue 24
Carmel,Indiana46032
25 (317) 848-0088 25
1 A PPEA RA N CES 2 1 EX H I BI T S
2 2
3 FORPLAINTIFF
S: 3 DepositionExhibitNo.27 .............16
4 Mr. JeremyVest 4 DepositionExhibitNo.28 .............27
MINTZLEVINCOHNFERRISGLOVSKYandPOMPEO,PC
5 ChryslerCenter 5 DepositionExhibitNo.29 .............29
666ThirdAvenue
6 NewYork,NewYork10017 6 DepositionExhibitNo.31 .............30
7
7 DepositionExhibitNo.32 .............31
8
8 DepositionExhibitNo.33 .............32
9 FORDEFENDANT:
9 DepositionExhibitNo.34 ..............33
10 Mr.RobertMacGill
Mr.MatthewT. Ciulla 10 DepositionExhibitNo.35 ..............34
11 MACGILLPC
55MonumentCircle 11 DepositionExhibitNo.36 ..............35
12 Suite1200C
Indianapolis
, Indiana46204 12 DepositionExhibitNo.37 ..............36
13
13 DepositionExhibitNo.38 ..............37
14 Mr.StephenJones
JONESLAWLLP 14 DepositionExhibitNo.39 ..............37
15 670WhitePlainsRoad
Penthouse 15
16 Scarsdale,NewYork 10583
16
17
18 17
19 18
20 19
21 20
22 21
23 22
24 23
25 24
25
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NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024
1:00PM 5 7
1 1 less,Iw asaskedto w orkparttimeintheir
2 SEPTEMBER
28, 2020 2 trainingdepartment.Andsofor twoyearsI w orked
3 MS.ORBAUGH:Thisis CourtReporter 3 part-timeandthenthey hiredmefull-timeasthe
4 HeatherOrbaughofAccurateReportingof Indiana, 4 educationcoordinatorfor HoulihanLawrence.
5 12922BrightonAvenue,Carmel,Indiana46032. Today 5 Q Whendidyoubeginthefull-timeemployment
6 is September
28, 2020at 1:00p.m. Thisdeposition 6 astheeducationcoordinatorat HoulihanLawrence?
7 is occurringviaWebEx.Thisis thedepositionof 7 A 2010.
8 ToniChrystal,noticedby HoulihanLawrence. 8 Q All right. Andhow longdidyou-- ‚ñ -
9 Counsel,pleasestateyourappearancesfor the . 6WMt
10 record. 10 A WW 7hakjjaMM slu ph
11 MR.MACGlLL:RobMacGillandMatt 11 Q Andwhendidyoubeginthatjob?
12 Ciullafor HoulihanLawrence. 12 A Rye yearsago.
13 MR.JONES:StephenJonesonbehalfof 13 Q So approximately2015?
14 ToniChrystal. 14 A Yes,approximately.
15 MR.VEST: JeremyVest on behalfof 15 Q All right. Anddoyouin additionto the
16 Plaintiffs. 16 employmentthatyou havedescribed,youalsohave
17 ANNETTE"TONI"CHRYSTAL, 17 certainteachingcredentialsin theStateof New
18 Calleduponby counselfor theDefendant,
w as 18 York?
19 first dulyswom andthendeposedasfolow s: 19 A I amcertifiedto teachwiththeStateof New
20 DIRECTEXAMINATION 20 Yorkcontinuingeducationclasses.
21 BYMR.MACGILL: 21 Q Andyou saycontinuingeducationclasses,
22 Q Wouldyou stateyournamefor the record, 22 w hatareyou referringto?
23 please? 23 A Šharsthe22anda halfhoursthatagents
24 A AnnetteChrystal,C-h-r-y-s-t-a-1,
and my 24 haveto take everytwoyearsI amcertifiedto teach
25 nicknameis Toni. 25 as aclass;however,Ihave notdonethatbecauseI
6 8
1 Q Okay. Wheredoyouw ork ma'am? 1 havew orkedat HoulihanLawrence.So I really
2 A HoulihanLawrence. 2 haven'ttaughtany CEclasses.
3 Q AHright. Andcanyoutellus first a 3 Q Soareyouthencertifiedin theStateof New
4 littlebit aboutyour professionalbackground9
Are 4 Yorkto providecontinuingeducationto realestate
5 youa licensedrealestatesalesperson? 5 professionals?
6 A I am. 6 A Yes.
7 Q Andhow longhaveyoubeenso licensed? 7 Q Okay. Andhow longhaveyoubeenso
8 A Since1994. 8 certified?
9 Q All right. Andinw hatstatew ereyou 9 A I am goingto say2014.
10 licensedto be a realestatesalespersorf? 10 Q Okay. Now,areyoualsoa memberof any
11 A NewYorkState. 11 localrealestateassociations?
12 Q AAright. Andareyoualsoa licensedreal 12 A HudsonGatewayAssociationofRealtors.
13 estatebroker? 13 Q All right. Anddoyouhaveanyrole,do you
14 A Associatebroker. 14 haveanyspecificrolelocallyin termsof the
15 Q Okay. Andw hendidyouachievethatlicense? 15 HudsonGatewayAssociationof Realtors?
16 A 1996. 16 A I amonthe EducationCouncil.
17 Q AAright. AlsoStateof NewYork? 17 Q Andhow longhaveyoubeenonthe Education
18 A Stateof NewYork. 18 Councilof HudsonGatewayAssociationof Realtors?
19 Q Okay. Now, canyoutell us alittle bit 19 A A coupleyears,twoor threeyears.
20 aboutyourernploymentat HoulihanLawrence?What 20 Q Okay. Now, w ithrespectto thatEducation
21 w asthefirstjob thatyouhadw ithHoulihan 21 Councilrole, areyou amemberof anyfaculty?
22 Lawrence? 22 A I ama memberof theHudsonGateway's
23 A Ijoined HoulihanLawrencein2010as an 23 AssociationofRealtor'sfaculty.
24 associatebrokerintheirWhiteRainsbranch 24 Q Okay. Now,with respectto the NewYork
25 office. Andabouta yearafterthat,maybea little 25 StateAssociationof Realtors,doyouhaveany role
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17 19
1 customer.Andwereviewit in detail. We do a role 1 withyoureducationandtraining?
2 play,wefill outtheforms.andwespendthewhole 2 A Well --
3 afternoondiscussinghow
importantagentsareto the 3 MR.VEST: Objection,foundation.
4 businessandhowimportanttheirjob is workingwith 4 A -- it is basicallyanoverviewof the
5 clientsandthattheyneedto knowtheirfiduciary 5 fiduciaryresponsibilitythatthey hava Andwhen
6 duties. Andso reallywe do thefiduciarydutiesin 6 they'retaughtin realestateclass,they referto
7 detail. 7 it as OldCar,andwediscussobedience,loyalty,
8 Q Okay. I noticedthatyoumentionedhere,you 8 disclosure,confidentality,and accounting.ButI
9 havea sectiononproblemsolving,counseling, 9 actuallyuse accountability
as opposedtoaccounting
10 askingtherightquestions,agentsgetthedeal 10 becausewedon'thandlefundsor moneyin NewYork.
11 done;do youseethosesections? 11 Isay youneedto be accountableforeverythingthat
12 A Yes. 12 youdo. And,of course,reasonableskillandcare.
13 Q Thereis a referenceherein counseling, 13 So basicallythefiduciaryandtheagent
14 thereis a counselingsection,canyougiveus a 14 consultantadvisesandconsultstheirclient,they
15 littleinsightasto howyouteachthisparticular 15 educateandguidetheirclient,they areinvolvedin
16 portionof thedocurnent? 16 thedecisionmaking.Again,thisis a personthatis
17 A Well, I explainto themthat they needto 17 workingas a client,a fiduciary.Theyusejudgment
18 haveconversatiorswiththeirclientsto guidethem 18 andexperienceandtheygetthedealsdonebecause
19 andcoachthemandexplaintheformsthat they are 19 they area trustedadvisorfor life and hopefully
20 signing,andespeciallythe agencydisclosureform 20 they willget referralsandare basically
21 andwhat--how they arerepresentingtheirclient. 21 irreplaceableinthetransaction
22 Q I seethatyou reference--goahead. 22 Q All right. If youturnto thenext page,
23 A Thisis just,again,they needto havethe 23 Ms.Chrystal,youwill seethatonDocument36728
24 conversationwithclients. 24 thereis a referenceonthe top lineto, "fiduciary
25 Q Okay. Andyoumentionedherein the second 25 responsibilityto yourclient,buyer,or seller."
18 20
1 lineof counseling,youmentionedkeepingthemfully 1 Doyouseethat?
2 informedeverystepof the way and makingthe 2 A Yes.
3 processastransparentas possibleis the key, don't 3 Q Andthenthereis -- ifyougodowna few
4 makeanythingsecret. Doyou seethat? 4 linesit says,"Whatremainsthesarneis your
."
5 A Yes. 5 fiduciaryresponsibility Doyou seethat?
6 Q Is thatpartofwhatyouteachfromaswer 6 A Yes.
7 A Disclosure. 7 Q Andwhenyou saywhat--withreferenceto
8 Q Okay. 8 thisw hatremainsthesameis your fiduciary
9 A Disclosureisveryimportant,yes. 9 responsibility,doesthatmeanregardlessorw hether
10 Q Okay. Thenas partof --you mentionedin 10 you arerepresentingthebuyeror theseller?
11 thefirstparagraphabovethatyou say I am looking 11 A Correct.
12 at thesecondparagraphand specificallythethird 12 Q Allright.
13 line,secondandthirdline,it says,"It doesn't 13 A If it is a client,thars yourfiduciary
14 matterwhereorhowtheclientcomesyourway, 14 duty.
15 consultingis educatingand counselingbuyeror 15 Q All right. Andthenyou haveitlookslike
16 sellerclients." Doyouseethat? 16 anacronym"OldCar." Doyouseethat?
17 A Yes. 17 A Yes.
18 Q Thenbeneaththatyou seethe heading, 18 Q Couldyou explainto theCourtwhat ismeant
19 "Agentsgetthedeal done,fiduciaryandagent 19 by thatacronynf?
20 consultant"doyouseethat? 20 A OldCarisjust a way to rememberyour
21 A Yes. 21 fiduciaryduties. Andthatwouldbeobedienceof
22 Q Andwithrespectto the "advisesand 22 all lawfulinstructons.Andwhent do myclass,1
23 consults,educatesandguides"lines,what -- orI 23 do very,very niceextensiveexamplesoncodeof
24 shouldsay howdoyougo abouttrainingonthose 24 ethics,w hatis obedience.If my clienttold meI
25 featuresthatI just referencedherein connection 25 wantall offersin writing,I am beingobedientto
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1 theirrequest As longas it is lawful,thenI can 21 1 of Agency,doyouseethat? 23
2 followtheirobedience. 2 A Yes.
3 Loyalty,act inthe bestinterestof your 3 Q Withrespectto this section,canyoutell
4 clientsat all timesaboveyourownandyour 4 theCourtat leastin generaltermsw hatthis
5 company's.Disclosureof all materialfactsabout 5 sectionofyourdocumentrefersto or dealswith?
6 the property,nottheclient. Confidentiality, 6 A Yes. SowhenI train, I liketo do many
7 clients'information
keepingyourbuyerandseger 7 differentactivities.I don'tliketo juststand
8 to yourself.AndI do believethatgoesto the 8 thereandpreach.I w anttoinvolvethe groupas
9 gravew ithyou. Confidentiality.Foran example, 9 muchas possible.Sothisis basicaHy
my role play
10 they areterninaHyill,they don'tw antanyoneto 10 for disclosureof agency.
11 knowthat. Confidential.Youcannottell anyone 11 Sow hatwe do is I caHupononeof the
12 thatinformation. 12 agentsto be Wilma,someoneto be Fred,and they
13 And,again,accountingw ouldbefundsbutwe 13 readalong.Thisis a very goodway of
14 don'tcoHectfundsin NewYorkso I justturnit howtheconversationshouldtake
14 understanding
15 aroundto accountabilityandmakesurethatyou are 15 place.
16 accountable
for everythingyou do,everythingyou
17 say,everythingyou write,becauseyou are
18 accountable
for it.
19 Again,this is -- andthenall reasonable
20 skillandcareand thats, youknow, youshouldknow 20 Andthenafterw e dotheroleplayandthey
21 yourbusiness,you shouldknowyour marketarea,you 21 are all, oh,wcw, thatwas great,theyunderstandit
22 shouldhavereasonableskillaboutthebusinessthat 22 a little better,I thendoa physicalfill outthe
23 youareperforrring. 23 formroleplay. SoI havetwo agentstogether,and
24 Q Okay. So turningthento thenextpagethere 24 sometimesthree,andyou arethebuyerandyou are
25 is Exhibit- I am sorry,BatesNumber36729. 25 the agent,you aretheagentandyou arethe buyer
1 Ms.Chrystal,thereis a sectionentitled,"NYS 22 1 andyou arethe agent,andwefill outtheforms 24
2 practices." Doyouseethat?
AgencyDisclosureHLS 2 fourdifferentw ays. Onew ayw ouldbew orkingwith
3 A Yes. 3 the seller,onewayw ouldbew orkingwiththe buyer,
4 Q Canyou tell theCourtin generaltermswhat 4 onew ayw ouldbew orkingas a dualagent,truedual
5 thatsectiondealsw ith? 5 agent,andonew ay w ouldbew orkingas a dualagent
6 A Thisis just actually,again,talkingabout 6 withdesignation.
7 yourfiduciaryduties,butthebestscenariotomeet 7 Q So,Ms.Chrystal,thenjust -- I w antto make
8 clientsw ouldbe inthe officeina conferenceroom 8 surew e arekeepingup w ithyou,sotherole playing
9 so thatyou canexplainall the documentation,
they 9 thatyou havereferredtoandthentheform
10 cansignall the documentation
in frontof youonce 10 completionthatyou have referredto,theseare--
11 you haveexplainedandthey understandit, andthen 11 thesef aHin thepagesof 36734through36749;is
12 youmakea copyandyougivetheclienta copy. 12 thatcorrect?
13 Theyneverleavew ithouta copy. Thatw ouldbethe 13 A Yes,uh-hub.
14 bestscenarioasto be ableto do it w ithina 14 Q Okay. I just w antto makesurew e havethose
15 conferenceroomenvironmentbeforeyougo outw ith 15 pagesreferencedin relationto yourtestimony.
16 anyclients. 16 A Right.
17 Butthereis so manydifferentw aysof 17 Q Soif you -- if I couldaskyouto moveto
18 meetingclientsandcustomersthatyou arenot 18 Page36750andfocusonthe Sections750through
19 alwaysableto sit downat theirhomefor a listing 19 753?
20 presentationor at theofficefor a buyer 20 A Yes.
21 presentation.It couldbe onthe fly manytimes. 21 Q In generaltermscouldyoutelltheCourt
22 Q All right. Lefs turnto anotherpageif we 22 w hatthissectionof yourWelcomeAgentpacketis?
23 couki,if youw ouldgo to 36732? 23 A SoI alsoprintoutanof theseformsto go
24 A Yes. 24 alongw iththispagehereon Exhibit7 andthat
25 Q Thereis a headlinehereentitledDisclosure 25 w ouldbethe listingpresentation.Thesearecheck
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25 27
1 boxesthattheagentshouldbe ableto explainto 1 A Yes.
2 theirclientwhentheymeetwiththem. 2 MR.VEST: Objection,foundation.
3 Theyshouldbeableto explainthe listing 3 Q Andw as it theregularpracticeofloulihan
4 presentation.Tharstheirmarketinganalysis, 4 Lawrencetocreateor updatetheseexhibitsat or
5 thats their pricingopinion,thars theirCNA. 5 aroundthetimedescribedonthefrontcoverof this
6 Theyshouldbeableto explaintheirmarketingplan. 6 exhibit?
7 Theyshouldbeableto explainthe listingsheets 7 MR.VEST: Objection,foundation.
8 andwhatan agentviewandw hata clientviewlooks 8 Q Youmayanswer.
9 like. 9 A Couldyourepeatthequestion?
10 I havecopiesof all of thesew henwedothis 10 Q Yeah.Wasit theregularpracticeof
11 in class. Theyshouldbeableto explainwhat an 11 HoulihanLawrencetocreateor updatethis
12 exclusiverightto sellagreementis, it is a 12 particularExhibit28at or aroundthetime
13 contractandw hattheblankspotsthatneedto be 13 describedonthefrontcoverof thisexhibit?
14 fiRedin are. Theyneedto go aheadandexplain 14 MR.VEST: Objection,vague,and
15 that. Explanationof dual agencydesignationand 15 foundation.
16 selleragent,buyeragent. 16 A Yes.
17 Q All right. CouldI slowyou - 17 Q Theanswerisyes?
18 A Theseare basicallyourformsin ourpacket 18 A Yes.
19 thattheagentsshouldfeelcorrfortablehavingthe 19 Q Okay.
20 conversationwithclients. 20 MR.MACGlLL:At thistimew ewould
21 Q Okay.So let mebacktrackononeitem. If 21 offerintoevidenceExhibit28.
22 youcouldlookat 36753,please? 22 (Exhibit28 offered.)
23 A Yes. 23 Q I w ouldaskyouto turnnowto Exhibit3 or
24 Q Andthisis entitled"HLBestPracticesAgent 24 Tab 3, Exhibit29. Areyouthere?
25 TransactionsTasks for Se ers." Doyou seethat? 25 A Yes.
26 28
1 A Yes. 1 Q All right. AndwasExhibit29a document
2 Q Andis thisthechecklistthatyouwerejust 2 thatw ascreatedin theregularcourseof Houlihan
3 referringto? 3 Lawrence'soperation?
4 A Yes. 4 A Yes.
5 Q Okay. So, Ms. Chrystal,I wantto shift 5 MR.VEST: Objection,foundation.
6 focusherefor a fewminutesandI w antto askyou 6 Q And isthisa trueandcorrectcopyof the
7 aboutcornpanyoperationsguidelines.Areyou 7 operationguidelinesin effectas of March2012for
8 familiarwith companyoperationguidelines of 8 HoulihanLawrence?
9 HoulihanLawrencefrom2009to thepresent? 9 MR.VEST: Objection,foundation.
10 A Yes. 10 A I believeso.
11 Q All right. And generaHyspeaking- w ell, 11 Q Andthenwasthis- wasit theregular
12 lets takea lookat a fewexhibits.Wouldyouturn 12 practiceof HoulihanLawrencetocreateor update
13 to Tab2 in your binder,please?And thisis 13 theseoperationguidelinesat or aroundthetime
14 Exhibit28. 14 describedin thefrontcoverof eachexhibitor this
15 A Okay. 15 exhibit?
16 Q Whatis Exhibit28? 16 A Yes.
17 A Companyoperationsguidelines. 17 MR.VEST: Objection,foundation.
18 Q I am sorry,say thatagain,please. 18 Q And is thisexhibitatrueandaccuratecopy
19 A Companyoperationsguidelines. 19 of the originaloperationsguidelinesas revisedon
20 Q AMright. AndExhibit28,theseare 20 March2012?
21 guidelinesthatw erein effectas ofw hen? 21 MR.VEST: Objection,foundation.
22 A 2009. 22 A Yes.
23 Q Andw erethese- w asthisparticularsetof 23 Q Okay. Lefs turnto Tab--
24 operationsguidelines, wasthiscreatedin the 24 MR.MACGILL:We offerintoevidence
25 regularcourseof HoulihanLawrence'soperations? 25 Exhibit29.
Preview
FILED: WESTCHESTER COUNTY CLERK 03/11/2024 11:36 AM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024 HL EXHIBIT 32 CHRYSTAL (HL DEF) DEPOSITION TRANSCRIPT SEPTEMBER 28, 2020 FILED: WESTCHESTER COUNTY CLERK 03/11/2024 11:36 AM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024 3 1 SUPREMECOURTOFTHESTATEOFNEWYORK 1 l N D EX COUNTYOFWESTCHESTER 2 2 3 PAMELAGOLDSTEIN, ELLYN& ) 3 DIRECTEXAMINATION TONYBERKas Adninistrators ) BYMR.MACGILL............................. 4 4 of theEstateof Wnifred ) 4 Berk,andPAULBENJAMIN, on ) 5 behalfof thernselvesandall ) 5 otherssimilarlysituated, ) 6 ) 6 Plaintiffs, ) 7 ) 7 VS. )1ndexNo.60767/2018 8 ) 8 HOULlHAN/LAWRENCE INC., ) 9 ) 9 Defendant. ) 10 10 11 11 12 CO NFI DENT IA L 12 13 13 14 TheWebExdepositionof 14 15 ANNETTE"TONr' CHRYSTAL , 15 16 takenby counselfor theDefendantonthe28thday 16 17 of Septernber,2020,via WebEx,beforeHeatherS. 17 18 Orbaugh,NotaryPublicin andfor the Countyof 18 19 Boone,Stateof Indiana,CCR:LA. 19 20 20 21 21 22 22 23 ACCURATEREPORTINGOFINDIANA 23 WilliamF.Daniels,Prop.,RPR/CP,CM 24 12922BrightonAvenue 24 Carmel,Indiana46032 25 (317) 848-0088 25 1 A PPEA RA N CES 2 1 EX H I BI T S 2 2 3 FORPLAINTIFF S: 3 DepositionExhibitNo.27 .............16 4 Mr. JeremyVest 4 DepositionExhibitNo.28 .............27 MINTZLEVINCOHNFERRISGLOVSKYandPOMPEO,PC 5 ChryslerCenter 5 DepositionExhibitNo.29 .............29 666ThirdAvenue 6 NewYork,NewYork10017 6 DepositionExhibitNo.31 .............30 7 7 DepositionExhibitNo.32 .............31 8 8 DepositionExhibitNo.33 .............32 9 FORDEFENDANT: 9 DepositionExhibitNo.34 ..............33 10 Mr.RobertMacGill Mr.MatthewT. Ciulla 10 DepositionExhibitNo.35 ..............34 11 MACGILLPC 55MonumentCircle 11 DepositionExhibitNo.36 ..............35 12 Suite1200C Indianapolis , Indiana46204 12 DepositionExhibitNo.37 ..............36 13 13 DepositionExhibitNo.38 ..............37 14 Mr.StephenJones JONESLAWLLP 14 DepositionExhibitNo.39 ..............37 15 670WhitePlainsRoad Penthouse 15 16 Scarsdale,NewYork 10583 16 17 18 17 19 18 20 19 21 20 22 21 23 22 24 23 25 24 25 FILED: WESTCHESTER COUNTY CLERK 03/11/2024 11:36 AM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024 1:00PM 5 7 1 1 less,Iw asaskedto w orkparttimeintheir 2 SEPTEMBER 28, 2020 2 trainingdepartment.Andsofor twoyearsI w orked 3 MS.ORBAUGH:Thisis CourtReporter 3 part-timeandthenthey hiredmefull-timeasthe 4 HeatherOrbaughofAccurateReportingof Indiana, 4 educationcoordinatorfor HoulihanLawrence. 5 12922BrightonAvenue,Carmel,Indiana46032. Today 5 Q Whendidyoubeginthefull-timeemployment 6 is September 28, 2020at 1:00p.m. Thisdeposition 6 astheeducationcoordinatorat HoulihanLawrence? 7 is occurringviaWebEx.Thisis thedepositionof 7 A 2010. 8 ToniChrystal,noticedby HoulihanLawrence. 8 Q All right. Andhow longdidyou-- ‚ñ - 9 Counsel,pleasestateyourappearancesfor the . 6WMt 10 record. 10 A WW 7hakjjaMM slu ph 11 MR.MACGlLL:RobMacGillandMatt 11 Q Andwhendidyoubeginthatjob? 12 Ciullafor HoulihanLawrence. 12 A Rye yearsago. 13 MR.JONES:StephenJonesonbehalfof 13 Q So approximately2015? 14 ToniChrystal. 14 A Yes,approximately. 15 MR.VEST: JeremyVest on behalfof 15 Q All right. Anddoyouin additionto the 16 Plaintiffs. 16 employmentthatyou havedescribed,youalsohave 17 ANNETTE"TONI"CHRYSTAL, 17 certainteachingcredentialsin theStateof New 18 Calleduponby counselfor theDefendant, w as 18 York? 19 first dulyswom andthendeposedasfolow s: 19 A I amcertifiedto teachwiththeStateof New 20 DIRECTEXAMINATION 20 Yorkcontinuingeducationclasses. 21 BYMR.MACGILL: 21 Q Andyou saycontinuingeducationclasses, 22 Q Wouldyou stateyournamefor the record, 22 w hatareyou referringto? 23 please? 23 A Šharsthe22anda halfhoursthatagents 24 A AnnetteChrystal,C-h-r-y-s-t-a-1, and my 24 haveto take everytwoyearsI amcertifiedto teach 25 nicknameis Toni. 25 as aclass;however,Ihave notdonethatbecauseI 6 8 1 Q Okay. Wheredoyouw ork ma'am? 1 havew orkedat HoulihanLawrence.So I really 2 A HoulihanLawrence. 2 haven'ttaughtany CEclasses. 3 Q AHright. Andcanyoutellus first a 3 Q Soareyouthencertifiedin theStateof New 4 littlebit aboutyour professionalbackground9 Are 4 Yorkto providecontinuingeducationto realestate 5 youa licensedrealestatesalesperson? 5 professionals? 6 A I am. 6 A Yes. 7 Q Andhow longhaveyoubeenso licensed? 7 Q Okay. Andhow longhaveyoubeenso 8 A Since1994. 8 certified? 9 Q All right. Andinw hatstatew ereyou 9 A I am goingto say2014. 10 licensedto be a realestatesalespersorf? 10 Q Okay. Now,areyoualsoa memberof any 11 A NewYorkState. 11 localrealestateassociations? 12 Q AAright. Andareyoualsoa licensedreal 12 A HudsonGatewayAssociationofRealtors. 13 estatebroker? 13 Q All right. Anddoyouhaveanyrole,do you 14 A Associatebroker. 14 haveanyspecificrolelocallyin termsof the 15 Q Okay. Andw hendidyouachievethatlicense? 15 HudsonGatewayAssociationof Realtors? 16 A 1996. 16 A I amonthe EducationCouncil. 17 Q AAright. AlsoStateof NewYork? 17 Q Andhow longhaveyoubeenonthe Education 18 A Stateof NewYork. 18 Councilof HudsonGatewayAssociationof Realtors? 19 Q Okay. Now, canyoutell us alittle bit 19 A A coupleyears,twoor threeyears. 20 aboutyourernploymentat HoulihanLawrence?What 20 Q Okay. Now, w ithrespectto thatEducation 21 w asthefirstjob thatyouhadw ithHoulihan 21 Councilrole, areyou amemberof anyfaculty? 22 Lawrence? 22 A I ama memberof theHudsonGateway's 23 A Ijoined HoulihanLawrencein2010as an 23 AssociationofRealtor'sfaculty. 24 associatebrokerintheirWhiteRainsbranch 24 Q Okay. Now,with respectto the NewYork 25 office. Andabouta yearafterthat,maybea little 25 StateAssociationof Realtors,doyouhaveany role FILED: WESTCHESTER COUNTY CLERK 03/11/2024 11:36 AM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024 17 19 1 customer.Andwereviewit in detail. We do a role 1 withyoureducationandtraining? 2 play,wefill outtheforms.andwespendthewhole 2 A Well -- 3 afternoondiscussinghow importantagentsareto the 3 MR.VEST: Objection,foundation. 4 businessandhowimportanttheirjob is workingwith 4 A -- it is basicallyanoverviewof the 5 clientsandthattheyneedto knowtheirfiduciary 5 fiduciaryresponsibilitythatthey hava Andwhen 6 duties. Andso reallywe do thefiduciarydutiesin 6 they'retaughtin realestateclass,they referto 7 detail. 7 it as OldCar,andwediscussobedience,loyalty, 8 Q Okay. I noticedthatyoumentionedhere,you 8 disclosure,confidentality,and accounting.ButI 9 havea sectiononproblemsolving,counseling, 9 actuallyuse accountability as opposedtoaccounting 10 askingtherightquestions,agentsgetthedeal 10 becausewedon'thandlefundsor moneyin NewYork. 11 done;do youseethosesections? 11 Isay youneedto be accountableforeverythingthat 12 A Yes. 12 youdo. And,of course,reasonableskillandcare. 13 Q Thereis a referenceherein counseling, 13 So basicallythefiduciaryandtheagent 14 thereis a counselingsection,canyougiveus a 14 consultantadvisesandconsultstheirclient,they 15 littleinsightasto howyouteachthisparticular 15 educateandguidetheirclient,they areinvolvedin 16 portionof thedocurnent? 16 thedecisionmaking.Again,thisis a personthatis 17 A Well, I explainto themthat they needto 17 workingas a client,a fiduciary.Theyusejudgment 18 haveconversatiorswiththeirclientsto guidethem 18 andexperienceandtheygetthedealsdonebecause 19 andcoachthemandexplaintheformsthat they are 19 they area trustedadvisorfor life and hopefully 20 signing,andespeciallythe agencydisclosureform 20 they willget referralsandare basically 21 andwhat--how they arerepresentingtheirclient. 21 irreplaceableinthetransaction 22 Q I seethatyou reference--goahead. 22 Q All right. If youturnto thenext page, 23 A Thisis just,again,they needto havethe 23 Ms.Chrystal,youwill seethatonDocument36728 24 conversationwithclients. 24 thereis a referenceonthe top lineto, "fiduciary 25 Q Okay. Andyoumentionedherein the second 25 responsibilityto yourclient,buyer,or seller." 18 20 1 lineof counseling,youmentionedkeepingthemfully 1 Doyouseethat? 2 informedeverystepof the way and makingthe 2 A Yes. 3 processastransparentas possibleis the key, don't 3 Q Andthenthereis -- ifyougodowna few 4 makeanythingsecret. Doyou seethat? 4 linesit says,"Whatremainsthesarneis your ." 5 A Yes. 5 fiduciaryresponsibility Doyou seethat? 6 Q Is thatpartofwhatyouteachfromaswer 6 A Yes. 7 A Disclosure. 7 Q Andwhenyou saywhat--withreferenceto 8 Q Okay. 8 thisw hatremainsthesameis your fiduciary 9 A Disclosureisveryimportant,yes. 9 responsibility,doesthatmeanregardlessorw hether 10 Q Okay. Thenas partof --you mentionedin 10 you arerepresentingthebuyeror theseller? 11 thefirstparagraphabovethatyou say I am looking 11 A Correct. 12 at thesecondparagraphand specificallythethird 12 Q Allright. 13 line,secondandthirdline,it says,"It doesn't 13 A If it is a client,thars yourfiduciary 14 matterwhereorhowtheclientcomesyourway, 14 duty. 15 consultingis educatingand counselingbuyeror 15 Q All right. Andthenyou haveitlookslike 16 sellerclients." Doyouseethat? 16 anacronym"OldCar." Doyouseethat? 17 A Yes. 17 A Yes. 18 Q Thenbeneaththatyou seethe heading, 18 Q Couldyou explainto theCourtwhat ismeant 19 "Agentsgetthedeal done,fiduciaryandagent 19 by thatacronynf? 20 consultant"doyouseethat? 20 A OldCarisjust a way to rememberyour 21 A Yes. 21 fiduciaryduties. Andthatwouldbeobedienceof 22 Q Andwithrespectto the "advisesand 22 all lawfulinstructons.Andwhent do myclass,1 23 consults,educatesandguides"lines,what -- orI 23 do very,very niceextensiveexamplesoncodeof 24 shouldsay howdoyougo abouttrainingonthose 24 ethics,w hatis obedience.If my clienttold meI 25 featuresthatI just referencedherein connection 25 wantall offersin writing,I am beingobedientto FILED: WESTCHESTER COUNTY CLERK 03/11/2024 11:36 AM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024 1 theirrequest As longas it is lawful,thenI can 21 1 of Agency,doyouseethat? 23 2 followtheirobedience. 2 A Yes. 3 Loyalty,act inthe bestinterestof your 3 Q Withrespectto this section,canyoutell 4 clientsat all timesaboveyourownandyour 4 theCourtat leastin generaltermsw hatthis 5 company's.Disclosureof all materialfactsabout 5 sectionofyourdocumentrefersto or dealswith? 6 the property,nottheclient. Confidentiality, 6 A Yes. SowhenI train, I liketo do many 7 clients'information keepingyourbuyerandseger 7 differentactivities.I don'tliketo juststand 8 to yourself.AndI do believethatgoesto the 8 thereandpreach.I w anttoinvolvethe groupas 9 gravew ithyou. Confidentiality.Foran example, 9 muchas possible.Sothisis basicaHy my role play 10 they areterninaHyill,they don'tw antanyoneto 10 for disclosureof agency. 11 knowthat. Confidential.Youcannottell anyone 11 Sow hatwe do is I caHupononeof the 12 thatinformation. 12 agentsto be Wilma,someoneto be Fred,and they 13 And,again,accountingw ouldbefundsbutwe 13 readalong.Thisis a very goodway of 14 don'tcoHectfundsin NewYorkso I justturnit howtheconversationshouldtake 14 understanding 15 aroundto accountabilityandmakesurethatyou are 15 place. 16 accountable for everythingyou do,everythingyou 17 say,everythingyou write,becauseyou are 18 accountable for it. 19 Again,this is -- andthenall reasonable 20 skillandcareand thats, youknow, youshouldknow 20 Andthenafterw e dotheroleplayandthey 21 yourbusiness,you shouldknowyour marketarea,you 21 are all, oh,wcw, thatwas great,theyunderstandit 22 shouldhavereasonableskillaboutthebusinessthat 22 a little better,I thendoa physicalfill outthe 23 youareperforrring. 23 formroleplay. SoI havetwo agentstogether,and 24 Q Okay. So turningthento thenextpagethere 24 sometimesthree,andyou arethebuyerandyou are 25 is Exhibit- I am sorry,BatesNumber36729. 25 the agent,you aretheagentandyou arethe buyer 1 Ms.Chrystal,thereis a sectionentitled,"NYS 22 1 andyou arethe agent,andwefill outtheforms 24 2 practices." Doyouseethat? AgencyDisclosureHLS 2 fourdifferentw ays. Onew ayw ouldbew orkingwith 3 A Yes. 3 the seller,onewayw ouldbew orkingwiththe buyer, 4 Q Canyou tell theCourtin generaltermswhat 4 onew ayw ouldbew orkingas a dualagent,truedual 5 thatsectiondealsw ith? 5 agent,andonew ay w ouldbew orkingas a dualagent 6 A Thisis just actually,again,talkingabout 6 withdesignation. 7 yourfiduciaryduties,butthebestscenariotomeet 7 Q So,Ms.Chrystal,thenjust -- I w antto make 8 clientsw ouldbe inthe officeina conferenceroom 8 surew e arekeepingup w ithyou,sotherole playing 9 so thatyou canexplainall the documentation, they 9 thatyou havereferredtoandthentheform 10 cansignall the documentation in frontof youonce 10 completionthatyou have referredto,theseare-- 11 you haveexplainedandthey understandit, andthen 11 thesef aHin thepagesof 36734through36749;is 12 youmakea copyandyougivetheclienta copy. 12 thatcorrect? 13 Theyneverleavew ithouta copy. Thatw ouldbethe 13 A Yes,uh-hub. 14 bestscenarioasto be ableto do it w ithina 14 Q Okay. I just w antto makesurew e havethose 15 conferenceroomenvironmentbeforeyougo outw ith 15 pagesreferencedin relationto yourtestimony. 16 anyclients. 16 A Right. 17 Butthereis so manydifferentw aysof 17 Q Soif you -- if I couldaskyouto moveto 18 meetingclientsandcustomersthatyou arenot 18 Page36750andfocusonthe Sections750through 19 alwaysableto sit downat theirhomefor a listing 19 753? 20 presentationor at theofficefor a buyer 20 A Yes. 21 presentation.It couldbe onthe fly manytimes. 21 Q In generaltermscouldyoutelltheCourt 22 Q All right. Lefs turnto anotherpageif we 22 w hatthissectionof yourWelcomeAgentpacketis? 23 couki,if youw ouldgo to 36732? 23 A SoI alsoprintoutanof theseformsto go 24 A Yes. 24 alongw iththispagehereon Exhibit7 andthat 25 Q Thereis a headlinehereentitledDisclosure 25 w ouldbethe listingpresentation.Thesearecheck FILED: WESTCHESTER COUNTY CLERK 03/11/2024 11:36 AM INDEX NO. 60767/2018 NYSCEF DOC. NO. 1787 RECEIVED NYSCEF: 03/11/2024 25 27 1 boxesthattheagentshouldbe ableto explainto 1 A Yes. 2 theirclientwhentheymeetwiththem. 2 MR.VEST: Objection,foundation. 3 Theyshouldbeableto explainthe listing 3 Q Andw as it theregularpracticeofloulihan 4 presentation.Tharstheirmarketinganalysis, 4 Lawrencetocreateor updatetheseexhibitsat or 5 thats their pricingopinion,thars theirCNA. 5 aroundthetimedescribedonthefrontcoverof this 6 Theyshouldbeableto explaintheirmarketingplan. 6 exhibit? 7 Theyshouldbeableto explainthe listingsheets 7 MR.VEST: Objection,foundation. 8 andwhatan agentviewandw hata clientviewlooks 8 Q Youmayanswer. 9 like. 9 A Couldyourepeatthequestion? 10 I havecopiesof all of thesew henwedothis 10 Q Yeah.Wasit theregularpracticeof 11 in class. Theyshouldbeableto explainwhat an 11 HoulihanLawrencetocreateor updatethis 12 exclusiverightto sellagreementis, it is a 12 particularExhibit28at or aroundthetime 13 contractandw hattheblankspotsthatneedto be 13 describedonthefrontcoverof thisexhibit? 14 fiRedin are. Theyneedto go aheadandexplain 14 MR.VEST: Objection,vague,and 15 that. Explanationof dual agencydesignationand 15 foundation. 16 selleragent,buyeragent. 16 A Yes. 17 Q All right. CouldI slowyou - 17 Q Theanswerisyes? 18 A Theseare basicallyourformsin ourpacket 18 A Yes. 19 thattheagentsshouldfeelcorrfortablehavingthe 19 Q Okay. 20 conversationwithclients. 20 MR.MACGlLL:At thistimew ewould 21 Q Okay.So let mebacktrackononeitem. If 21 offerintoevidenceExhibit28. 22 youcouldlookat 36753,please? 22 (Exhibit28 offered.) 23 A Yes. 23 Q I w ouldaskyouto turnnowto Exhibit3 or 24 Q Andthisis entitled"HLBestPracticesAgent 24 Tab 3, Exhibit29. Areyouthere? 25 TransactionsTasks for Se ers." Doyou seethat? 25 A Yes. 26 28 1 A Yes. 1 Q All right. AndwasExhibit29a document 2 Q Andis thisthechecklistthatyouwerejust 2 thatw ascreatedin theregularcourseof Houlihan 3 referringto? 3 Lawrence'soperation? 4 A Yes. 4 A Yes. 5 Q Okay. So, Ms. Chrystal,I wantto shift 5 MR.VEST: Objection,foundation. 6 focusherefor a fewminutesandI w antto askyou 6 Q And isthisa trueandcorrectcopyof the 7 aboutcornpanyoperationsguidelines.Areyou 7 operationguidelinesin effectas of March2012for 8 familiarwith companyoperationguidelines of 8 HoulihanLawrence? 9 HoulihanLawrencefrom2009to thepresent? 9 MR.VEST: Objection,foundation. 10 A Yes. 10 A I believeso. 11 Q All right. And generaHyspeaking- w ell, 11 Q Andthenwasthis- wasit theregular 12 lets takea lookat a fewexhibits.Wouldyouturn 12 practiceof HoulihanLawrencetocreateor update 13 to Tab2 in your binder,please?And thisis 13 theseoperationguidelinesat or aroundthetime 14 Exhibit28. 14 describedin thefrontcoverof eachexhibitor this 15 A Okay. 15 exhibit? 16 Q Whatis Exhibit28? 16 A Yes. 17 A Companyoperationsguidelines. 17 MR.VEST: Objection,foundation. 18 Q I am sorry,say thatagain,please. 18 Q And is thisexhibitatrueandaccuratecopy 19 A Companyoperationsguidelines. 19 of the originaloperationsguidelinesas revisedon 20 Q AMright. AndExhibit28,theseare 20 March2012? 21 guidelinesthatw erein effectas ofw hen? 21 MR.VEST: Objection,foundation. 22 A 2009. 22 A Yes. 23 Q Andw erethese- w asthisparticularsetof 23 Q Okay. Lefs turnto Tab-- 24 operationsguidelines, wasthiscreatedin the 24 MR.MACGILL:We offerintoevidence 25 regularcourseof HoulihanLawrence'soperations? 25 Exhibit29.