EXCLUSIVE DETAILS: Inside The Courtroom As TLC And Jon Gosselin Battle It Out Today

UPDATE 3:58 pm EST: The hearing has now recessed. Judge Mason says he will make a ruling on the injunction between 5pm and 5:30pm EST today.

UPDATE 3:56 pm EST: Judge Mason says regarding Pennsylvania Labor Dept requesting Discovery contract:

"They don't have to ask for it.  They can subpoenae it.  They can require the production of this document.  There's evidence they made the inquiry.  No evidence there was enforcement."

Gosselin's attorney Peter Toumbekis responds: "But it is still ongoing."

Judge: "Very well."

TLC's lead attorney Paul Gaffney counters on Toumbekis' earlier Larry King comment: "It was not authorized."

UPDATE 3:51 pm EST: Jon Gosselin's attorney Peter Toumbekis addresses the issue of "child labor" to Judge Mason:

"The law in this land - here in Maryland  and in Pennsylvania  -- says it is a criminal offense for every time it was done.  Every performance was a criminal offense, punishable by fine and imprisonment.

"This contract was a scheme to avoid child labor laws.  To circumvent them.

"Discover designed this contract so they wouldn't have to pay these children.... to delineate what part of $5000 or $22,500 should be paid to the children.

"As the likelihood of success, the court has hear about breaches.  I maintain there were no breaches.  His public apearances and TV appearances he made are both carved out of the exclusivity agreement.

"As for the Larry King appearance that was coordinated with Discovery."

UPDATE 3:42 pm EST: Jon Gosselin's attorney Peter Toumbekis continues his closing argument, telling Judge Mason:

"TLC realized they were losing control. Every conversation Sabin (TLC's Chief Operating Officer)  had, he was trying to throw the reins of control around Mr Gosselin. They tried to get Julie May (Jon's manager) to get him under control.  All the while he was going through a divorce this network was telecasting."

UPDATE 3:38 pm EST: Jon Gosselin's attorney Peter Toumbekis addresses Judge Mason and begins his closing argument:

"Mr. Gosselin became a very well know television personality. There has been no irreparable harm. In fact, their ratings have gone through the roof!  Mr. Sabin (TLC's Chief Operating Officer) said they lost sponsors because of the sensationalism of the lifestyle Mr. Gosselin was living scared people away."

UPDATE 3:38 pm EST: TLC lead attorney Paul Gaffney wraps up his closing arguments by telling Judge Mason:

"So the irreparable harm prong is easily satisfied.

"We're not trying to keep him from earning a living.  Up until a year ago, he was an IT specialist!  He hasn't even tried to get a job.  Where's the evidence he's dusting up his resume?  Trying to get a job? There is none.

"He has a job, it's with us. He doesn't want to fulfill it.

"Their representative did a great job when she got this contract.  She did a fine job in representing her clients."

With that, Gaffney ends his closing argument.

UPDATE 3:35 pm EST: TLC lead attorney Paul Gaffney continues his closing by telling Judge Mason:  "It started out as $5000/episode.  Then they hired a talent agent and asked for a raise --and I can say this now -- they got it.  It went from $5000/show to $22,500/episode!"

UPDATE 3:33 pm EST: TLC'S lead attorney Paul Gaffney continues his closing argument by citing answers from both Kate Major's and Hailey Glassman's depositions in the case.

Gaffney reads from Kate Major's deposition. Quoting her, Gaffney says: "I (Major) tried to get him to talk, he said he was afraid to talk.  He was not allowed to do interviews whatsoever."

Gaffney, once again reading from Major's deposition about the Divorced Dads' Club and about Michael Lohan:

Deposition question to Major: "Did you have a conversation with John about his contract with TLC?

Major's response: "He knew it was inconsistent, but at that point he just didn't care."

Regarding Hailey Glassman testimony: Deposition question to Glassman: "Did Mr. Gosselin ever tell you he couldn't talk?"

Glassman's response: "He said TLC will not allow it.  He was like a child. 'How come Kate can do this and not me?' Because they can control Kate's mouth."

UPDATE  3:24 pm EST: Jon Gosselin's attorney Paul Toumbekis addresses the judge about the issue over the deposition transcripts.

"They brought this action to Mr. Gosselin.  They opened this door for him to defend himself. Now they are trying to hide this contract from the Pennsylvania Dept of Labor and from public scrutiny because it violates PA child labor laws."

UPDATE 3:04 pm EST: Regarding the contract, Judge Mason unredacts much of it. But says, "Issues directly related to compensation are proprietary, so I will order those to be redacted."

TLC'S lead attorney Paul Gaffney tells Judge Mason he will submit a redacted version in the morning.

UPDATE 2:59 pm EST: The judge is now taking a look at the contract to see what portions can be made public.

UPDATE 2:54 pm EST: Jon Gosselin's attorney Peter Toumbekis addresses the judge about the issue over the deposition transcripts.

"They brought this action to Mr. Gosselin.  They opened this door for him to defend himself. Now they are trying to hide this contract from the Pennsylvania Dept of Labor and from public scrutiny because it violates PA child labor laws."

UPDATE 2:44 pm EST: Court is back in session after a ten-minute recess to discuss the deposition transcripts.

UPDATE 2:29 pm EST: Lawyers for TLC are now introducing into evidence deposition transcripts.

Jon Gosselin's legal team is objecting.

Gosselin's attorney Peter Toumbekis states his objection over the deposition transcripts:  "(Paul) Gaffney gave no notice to us that depositions were being taken to be remitted for this hearing.

To properly assess credibility of witness, you need to assess them personally."

Gaffney responds: "I believe they had knowledge of Jon Gosselin's intent to breach.  It's useful testimony."

The judge responds: "But breach doesn't require intent.  But if you could identify sections of the depositions that illustrate his intent to do harm, I'll receive those.  But not the whole thing....  My intent is to resolve the issue today."

UPDATE 2:36 pm EST: TLC boss Edward Sabin has now finished his testimony.

UPDATE 2:30 pm EST: Jon Gosselin's attorney Peter Toumbekis begins questioning TLC boss Edward Sabin.

Toumbekis: "Is it true a trust was created for children after the Pennsylvania Department of Labor and Industry began an investigation of Discovery?"

Sabin:  "We hired a law firm to advise us on the inquiry the state had made."

Toumbekis: "Isn't it true Discovery has not set up a trust for the eight children?"

Sabin: "No"

Toumbekis: "I didn't think so. Isn't it true, Discovery hasn't provided a contract or a form of the contract to the Pennsylvania Department of Labor?"

Sabin: "I don't know. It is true the parents are responsible for payment to the children."

Toumbekis: "Isn't it true Discovery didn't file for any work permits or location permits?"

Sabin: "Yes, that is true."

UPDATE 2:23 pm EST: TLC boss Edward Sabin resumed his testimony which began earlier today and tried to establish that the network has been damaged by Jon's actions. He told the court that advertisers were being scared away because Jon was taping for TLC's competitors and said: Bottom line is it became clear he wouldn't honor his contract unless the court forced him to do it."

UPDATE 1:47 pm EST: The court hearing has resumed.

Round one -- Ding! The mud began flying in Maryland Circuit Court between Jon Gosselin and TLC Thursday morning, as the network’s head said the 32-year-old reality TV dad breached their Jon & Kate Plus 8 contract with his antics over the past six months.

TLC Chief Operating Officer Edward Sabin testified that the network was embarrassed by Jon's jet-setting summer, after years of airtime portraying him as a campy family man.

"It made the show look bad," Sabin said during questioning by TLC’s lead attorney Paul Gaffney, citing an appearance in August Jon made at an MGM pool party in Vegas.

"Photos of Jon Gosselin with scores of bikini-clad women was inconsistent with our image brand of our show," Sabin said.

Sabin testified that he contacted Gosselin's manager, Julie May, regarding the bad boy antics to no avail, as he said the father-of-eight poured "oil on the fire" when he "worked the fence" of his property signing autographs, traveled to France with his young lover, Hailey Glassman, and started talking about a "Hollywood Rebel" clothing line.

Said Sabin: "It was a bit disconcerting, so we cried, ‘Foul! Guys, foul!’ -- you gotta get your guy in line."

Sabin testified that the situation worsened when the Ed Hardy-loving reality TV dad surrounded himself with a team of aggressive reps, attorney Mark J. Heller and manager Michael Heller.

"I expressed my dismay that we had just had a conversation that Jon would keep things on the up and up," Sabin said. "Then, he flagrantly omitted the E! exclusive paid interview. The interview did not go forward. I called someone I knew at E! about the exclusivity clause in the TLC contract and E! pulled it."

Sabin said that, Jon’s attorney Mark Heller, upon learning the E! interview was canceled, reacted "explosively."

"He start yelling at me, threatening me," Sabin said. "Saying he was going to embarrass me."

Sabin said he was "astounded" upon learning that Jon and his camp were shopping around a reality TV show called Divorced Dads Club, casting Jon with his Hamptons running mate, Michael Lohan.

Fed up with Jon's bad boy behavior, Sabin said TLC "decided to rename the program and shift the focus to Kate's plight as a single mother; Jon was going to be paid under the same terms of the contract."

Sabin testified that TLC's final decision to sue the father-of-eight was the end result of "a series of last straws," notably taking money from "entertainment programs (ET, The Insider) where folks sit around and gossip about celebrities' lives."

He said that Gosselin violated his confidentiality clause when he openly discussed the payments he was receiving for the show.

Sources tell RadarOnline.com that Gosselin himself will take the stand during the hearing at some point Thursday; at this time, Gosselin has not been seen at the courthouse, but when he does, he is expected to be questioned -- under oath -- about his outside income, statements about TLC and more, which should make for some bombshell revelations about the behind-the-scenes maneuverings between Jon, Kate and the network.

The prestigious law firm Williams & Connolly is representing TLC; their lead attorney, Paul Gaffney, has already deposed two of the more fascinating characters tied to the fiasco, including Glassman and Lohan, among others.

Stay with RadarOnline.com for the latest on this developing story.