Michael H. Johnson and Patricia E. Johnson - Page 18

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          fearful of not acceding to his will; respondent portrays Mr.                
          Johnson as forcing Lancaster into feigning threats of                       
          condemnation so petitioners could be accorded section 1033                  
          treatment.  Respondent contends that when Mr. Johnson rejected              
          the Palmdale deal, "he had Lancaster exactly where he wanted."              
               It is from this viewpoint that respondent argues that Mr.              
          Johnson could not believe the threats of condemnation were likely           
          to be carried out because Mr. Johnson forced Lancaster to pretend           
          to threaten him.  Furthermore, respondent contends that if                  
          Lancaster repeatedly threatened Mr. Johnson with condemnation and           
          then took no action, a reasonable person would not believe the              
          threats.                                                                    
               We disagree.  Lancaster and Mr. Johnson were involved in               
          bitter, antagonistic, contentious, and hostile negotiations.                
          There was a sense of mutual mistrust between Mr. Johnson and                
          Lancaster officials.  Mr. Asturias testified as follows:                    
               Every time Mr. Johnson tried to renegotiate the deal,                  
               we just ratcheted down harder and harder on the terms                  
               of the deal.  I think that--I did not come up with this                
               idea.  The idea was--came up from my boss, Mr. Dukett.                 
               I thought it was a very good idea.                                     
          Mr. Rodio testified that he made it a point to make sure that Mr.           
          Johnson did not get everything that Mr. Johnson wanted.  He also            
          testified that Mr. Johnson was "a hard negotiator" and "a                   
          predator".                                                                  







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