RICHARD WARREN LEWIS, a witness, called by the defendant, after having first been duly sworn, testified as follows:

DIRECT EXAMINATION

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Q.  And where was that meeting, sir?

A.  In the conference room of Larry Flynt Publications, Century City, Los Angeles.

Q.  And who was present at that meeting?

A.  The various editors, legal counsel -- would you like for me to name a few people?

Q.  Yes, please.

A.  Kelly Garrett, who was the Executive Editor at the time, I believe; Bruce Helford, who was another editor; Dwaine Tinsley, editor; David Kahn, legal counsel; Larry Flynt, editor and publisher; and several others.

Q.  Did any of these people create the idea which is reflected in that ad parody?

A.  No.

Q.  Who did create that idea?

A.  It was created by a consultant named Michael Salzbury.

Q.  And was that ad parody idea sold to Hustler Magazine?

A.  Yes, it was.

* * *

Q.  Yes, sir.  What was said at that meeting about Hustler's intent in publishing that ad parody?

A.  The intent was satire and humor.  It was a parody.

Q.  Now, can you recall what anybody said in words of substance?

A.  I recall most vividly the conversation that went on for some time between Larry Flynt and David Kahn, the legal counsel.  Larry -- let me say David wanted to put "Ad parody.  Not to be taken seriously" at the bottom of the page.  And Larry felt that no one could possibly take the ad parody seriously.

* * *

Q.  What were your feelings about the ad parody?

A.  My feelings were those of the other editors there, I mean, we laughed at it.  We thought it was satire.  And we done [sic] that many times in the past with public figures.

Q.  Was there any thought in your mind as to whether any reader would take that as a factual statement about Mr. Falwell?

A.  There was none.

Q.  Was there any thought in your mind as to whether any reader would view it as an authentic Campari advertisement?

A.  No, there was no question in my mind that it could be taken any other way but as a parody or a satire.

Q.  What is there about the parody that made you think that no one would -- that no reader would take it as a factual statement about Mr. Falwell?

A.  The language, the copy.  I believe that Mr. -- Reverend Falwell's feelings about drinking, for one, are well known, and about morality are well-known.

Q.  All right, looking at the ad parody that you have in front of you, can you point to any of the things in there specifically that form part of the basis upon which you thought that no one could take this ad seriously?

A.  The copy involving the Reverend Falwell's mother; the business about the outhouse; the language, you know, the profanity that exists in the ad.  This is something that would not ordinarily appear in a real Campari ad.

Q.  Let me direct your attention to the language above the name Campari, at the bottom, left-hand side.  The language starts out: "Campari, like all liquor, was made to mix you up."

A.  Yes?

Q.  Was anything about that language that influenced your opinion as to whether anyone would take that as a factual statement?

A.  Was there any question in my mind?

Q.  Yeah.

A.  No, there was none.

Q.  What is that.  Can you tell us?

A.  Because it does not read like a real ad.

* * *

Q.  When you say that we have done that kind of thing many times in the past, what kind of thing are you talking about?

A.  We had done ad parodies for other products.  One that comes to mind is Dewars Scotch whiskey.  We have done John DeLorean and we've done various car companies, cigarette companies, consistently, throughout the history of Hustler Magazine.  Ad parody has been one of the things we do.

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CROSS EXAMINATION

BY MR. GRUTMAN:

Q.  Mr. Lewis, do I understand that since February of 1980, when you assumed your position at Hustler up to the present time, you've had continuous responsibility for the overall content of the magazine, Hustler?

A.  No.

Q.  When is it then that you assumed responsibility for the overall content of Hustler Magazine?

A.  In April of this year.

Q.  April of 1984?

A.  Yes.

Q.  So at the time of the first publication in November of 1983, the November, 1983 issue of Hustler, you did not have an editorial responsibility for the contents of the magazine.

A.  That's true.

Q.  Who did?

A.  Sir, I'm hesitating only because it's either Kelley Garrett or Bruce Helford, I can't recall which.

* * *

Q.  I draw your attention, Mr. Lewis, to a document that's been received into evidence -- let me show it to you -- it says, "Hustler November Campari Ad. BH. 8/4/83.  Jerry Falwell Talks About His First Time." Have you ever seen this document before?

A.  Yes, I have.

Q.  When did you first see it?

A.  Several months ago, I would think.

Q.  Several months ago would be subsequent to August '83, would it not?

A.  I said several months ago.  It would not be subsequent to August, 1983.

Q.  I'm sorry, your seeing it was subsequent to August, 1983, am I right?

A.  That's right.

Q.  Would you agree that it was subsequent to the time that it appeared in the magazine?

A.  That this --

Q.  That you saw it.

A.  No, I saw it after it appeared in the magazine.