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HomeMy WebLinkAbout11. Kari Sand Exhibit 1 to Declaration Exhibit 1 Deposition of Chesley Dillon In Re: TracFone Wireless, Inc. December 23, 2020 206.287.9066 l 800.846.6989 1325 Fourth Avenue, Suite 1840, Seattle, Washington 98101 www.buellrealtime.com email: info@buellrealtime.com In Re: TracFone Wireless, Inc. Chesley Dillon 206.287.9066 l 800.846.6989 BUELL REALTIME REPORTING, LLC 272e2162-b46c-491c-aad8-2dbce80b0c33 Page 1 BEFORE THE HEARING EXAMINER OF THE CITY OF RENTON ________________________________________________________ RE: ) ) TracFone Wireless, Inc. ) ) Administrative Appeal ) ) ________________________________________________________ VIDEOCONFERENCE DEPOSITION UPON ORAL EXAMINATION OF CHESLEY DILLON ________________________________________________________ (All participants appearing via Zoom videoconference.) Taken at Miami, Florida DATE TAKEN: December 23, 2020 REPORTED BY: KATHLEEN HAMILTON, RPR, CRR, CCR 1917 In Re: TracFone Wireless, Inc. Chesley Dillon 206.287.9066 l 800.846.6989 BUELL REALTIME REPORTING, LLC 272e2162-b46c-491c-aad8-2dbce80b0c33 Page 2 1 A P P E A R A N C E S 2 APPEARING VIA ZOOM FOR THE APPELLANT: 3 SCOTT EDWARDS 4 GRANT S. DEGGINGER Lane Powell PC 5 1420 Fifth Avenue Suite 4200 6 Seattle, Washington 98111 206.223.7000 7 EdwardsS@LanePowell.com deggingerg@lanepowell.com 8 9 APPEARING VIA ZOOM FOR THE CITY OF RENTON: 10 KARI L. SAND 11 Ogden Murphy Wallace P.L.L.C. 901 Fifth Avenue 12 Suite 3500 Seattle, Washington 98164 13 206.447.7000 ksand@omwlaw.com 14 15 16 * * * * * 17 18 19 20 21 22 23 24 25 In Re: TracFone Wireless, Inc. Chesley Dillon 206.287.9066 l 800.846.6989 BUELL REALTIME REPORTING, LLC 272e2162-b46c-491c-aad8-2dbce80b0c33 Page 3 1 DEPOSITION OF CHESLEY DILLON 2 EXAMINATION INDEX 3 EXAMINATION BY PAGE 4 MS. SAND................................................. 4 5 6 7 EXHIBIT INDEX 8 EXHIBITS FOR IDENTIFICATION PAGE 9 73 TracFone brochure 16 74 TRACFONE WIRELESS TERMS AND CONDITIONS OF SERVICE 29 10 75 Tracfone BASIC PHONE CARD 46 76 Oct. 2010 TRACFONE WIRELESS v. REVENUE 170 Wn.2d 61 11 273, 242 P.3d 810 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In Re: TracFone Wireless, Inc. Chesley Dillon 206.287.9066 l 800.846.6989 BUELL REALTIME REPORTING, LLC 272e2162-b46c-491c-aad8-2dbce80b0c33 Page 38 1 user activates wireless service with TracFone, the end 2 user must provide the ZIP Code for the primary place of 3 use? 4 A. I don't think we ask that question. 5 Q. Who's "we", TracFone? 6 A. TracFone. 7 Q. They don't ask for the customer's primary place 8 of use? 9 A. We ask where the customer -- the ZIP Code where 10 the customer's going to use their phone the most or 11 terms along that line. 12 Q. Okay. I think we're saying the same thing. I 13 just called it primary place of use and you said the 14 place where they're going to use it the most; is that 15 right? 16 A. Yes, that's what I said. 17 Q. Okay. So TracFone asks the end user for the ZIP 18 Code of the place where they're going to use their phone 19 the most; correct? 20 A. I don't know if that's an exact quote, but it's 21 in line with those terms. 22 Q. Okay. 23 MR. EDWARDS: Hey, Kari, before you move on 24 there, in terms of, for the record, the version of the 25 exhibit that you're looking at and questions that you've 17 Q. Okay. So TracFone asks the end user for the ZIP 18 Code of the place where they're going to use their phone 19 the most; correct? 20 A. I don't know if that's an exact quote, but it's 21 in line with those terms. In Re: TracFone Wireless, Inc. Chesley Dillon 206.287.9066 l 800.846.6989 BUELL REALTIME REPORTING, LLC 272e2162-b46c-491c-aad8-2dbce80b0c33 Page 52 1 airtime minutes using an airtime card such as this; 2 correct? 3 A. Yes. 4 Q. Isn't it true that TracFone has a direct 5 financial relationship with every end user who purchases 6 airtime directly from TracFone? 7 A. You said that purchases directly from TracFone? 8 Q. Correct, from either the website or by calling 9 Customer Care. 10 A. Yes. 11 Q. To your knowledge does TracFone pay or remit 12 utility taxes to any Washington city? 13 A. Yes. 14 Q. How many Washington cities? 15 A. I'm not sure. 16 Q. Can you name any of the Washington cities that 17 TracFone pays utility tax to? 18 MR. EDWARDS: Kari, I'm going to object to 19 the question about names of specific cities. That's 20 confidential taxpayer information. And I -- I don't 21 know that -- that's been the same issue that your 22 witness has been struggling with in terms of naming 23 other cities that are not a party to this matter. And I 24 don't think asking about the identity of specific taxing 25 jurisdictions where TracFone's tax reporting constitutes 4 Q. Isn't it true that TracFone has a direct 5 financial relationship with every end user who purchases 6 airtime directly from TracFone? 7 A. You said that purchases directly from TracFone? 8 Q. Correct, from either the website or by calling 9 Customer Care. 10 A. Yes. 11 Q. To your knowledge does TracFone pay or remit 12 utility taxes to any Washington city? 13 A. Yes. 14 Q. How many Washington cities? 15 A. I'm not sure. In Re: TracFone Wireless, Inc. Chesley Dillon 206.287.9066 l 800.846.6989 BUELL REALTIME REPORTING, LLC 272e2162-b46c-491c-aad8-2dbce80b0c33 Page 69 1 upon sale to the subscriber. Again if we're talking 2 about a customer there, so when a card is purchased from 3 a retailer, it is activated and then sold. So when it 4 says activated upon the sale, a customer is purchasing 5 an active card. There may also be active cards. 6 There is then: Activation requires that 7 subscriber provide TracFone with a cellphone's serial 8 number and ZIP Code in which the subscriber will 9 primarily use the cellphone. That's talking about the 10 activation of a handset. And, again, this is -- that 11 term "primarily" is not a word we use. 12 (As read): TracFone chooses an underlying 13 carrier for the area and sends a code that programs 14 it -- that programs it with the correct home area, 15 telephone number, and rating information. 16 That code that is sent is -- is like an SMS 17 message, and that is done through a facility-based 18 carrier's network. 19 (As read): Once a TracFone cellphone is active, 20 a subscriber may purchase additional airtime minute 21 cards in increments of 30 to 400 minutes or by 22 contacting TracFone and getting additional airtime. 23 The minute cards can be different denominations 24 now than the 30 to 400 minutes. There may be others. 25 And the last sentence there is still correct. 19 (As read): Once a TracFone cellphone is active, 20 a subscriber may purchase additional airtime minute 21 cards in increments of 30 to 400 minutes or by 22 contacting TracFone and getting additional airtime. 23 The minute cards can be different denominations 24 now than the 30 to 400 minutes. There may be others. In Re: TracFone Wireless, Inc. Chesley Dillon 206.287.9066 l 800.846.6989 BUELL REALTIME REPORTING, LLC 272e2162-b46c-491c-aad8-2dbce80b0c33 Page 90 1 C E R T I F I C A T E 2 3 STATE OF WASHINGTON 4 COUNTY OF KING 5 6 I, Kathleen Hamilton, a Certified Shorthand 7 Reporter and Notary Public in and for the State of 8 Washington, do hereby certify that the foregoing 9 transcript of the deposition of CHESLEY DILLON, having 10 been duly sworn, on DECEMBER 23, 2020, is true and 11 accurate to the best of my knowledge, skill and ability. 12 IN WITNESS WHEREOF, I have hereunto set my hand 13 and seal this 5TH day of JANUARY, 2021. 14 15 16 ______________________________________ 17 KATHLEEN HAMILTON, RPR, CRR, CCR #1917 18 19 20 21 22 23 24 25