This is a rush transcript from "On the Record," June 15, 2009. This copy may not be in its final form and may be updated.
GRETA VAN SUSTEREN, FOX NEWS HOST: She might be out of a job, which is not out of the lime light. For Miss California Carrie Prejean goes "On the Record."
Now, after the Miss USA pageant, Carrie Prejean made headlines when she answered a question about gay marriage. Prejean says she does not support it, and came in second place in the Miss USA contest. After the pageant, blogger and pageant judge Perez Hilton Prejean publicly, even called her the "b word." When next Prejean got involved in a very public fight with the pageant, Belgium stepped in, and he let her keep the Miss California title. But then there was another turn of events -- suddenly, she is fired. The Miss California pageant says Prejean breached contract and no longer Miss California. Earlier today we spoke with the now former Miss California.
VAN SUSTEREN: Carrie, nice to you.
CARRIE PREJEAN, FORMER MISS CALIFORNIA: Nice to see you too, Greta.
VAN SUSTEREN: Welcome to Washington.
PREJEAN: Thank you.
VAN SUSTEREN: I was surprised to find out you were here today. (LAUGHTER)
Big news, and maybe not such good news, but you're out as Miss California. Mad, sad, how do you feel?
PREJEAN: I guess there is a mix of emotions. I was of a little surprised the way that I found out. Normally when you are fired, you're boss calls you, right? Not in this case.
VAN SUSTEREN: How did you find out?
PREJEAN: I found out from the media, actually, which is pretty shocking.
VAN SUSTEREN: What, you get a phone call and you pick it up and they say?
PREJEAN: The media has my cell phone number. So they just called, and I happened to pick it up. And they said, you know, pretty much what my statement was. They wanted to ask me about it, and they broke the news to me. And I just did not know what to say.
VAN SUSTEREN: So what did you do?
PREJEAN: I immediately called my lawyer, and I said, "Do you know anything about this?" and he said, "No." He said the media, I guess it was TMZ that had called in just a few minutes before and told him about this in wanted his statement.
And then I think actually two hours after he received a fax from Keith Lewis's lawyer, saying that I was terminated.
VAN SUSTEREN: Do you, I mean, was it fun being Miss California, because this sort of an unusual situation. Your career has actually taken off. It's almost like a bull can make an eruption. People want to see you and interview you.
But did you like being Miss California? Did you like to feel that when it was sort of quiet?
PREJEAN: You know, I love representing California. I am so blessed that I was given the time to represent such a great state.
I felt that I represented it proudly, and I represented the majority of people in my state, and the majority of people in America on this issue of traditional marriage and saving it.
And so this whole thing has been such a shock. It's been just a whirlwind. I mean, from the moment I gave the answer to now, I cannot believe we are still talking about it, and we're still talking about this. So it's pretty crazy.
VAN SUSTEREN: Have you heard from Donald Trump in the last few days since you have been fired?
PREJEAN: Yes, I have, actually.
VAN SUSTEREN: What did he say to you? Or did you call them? How did it worked out? Did you call him, he call you, or how did it work out?
PREJEAN: I reached out, and we had a private discussion.
VAN SUSTEREN: Saying?
PREJEAN: I really do not want to talk about that right now.
VAN SUSTEREN: But he was in on firing you?
PREJEAN: Well, I am not sure it he was. I definitely know that it was Mr. Lewis's ultimate decision to fire me. He owns the franchise. He owns the business.
VAN SUSTEREN: Who, Mr. Lewis?
PREJEAN: Mr. Lewis owns the franchise of Miss California. So that is his business. So ultimately he has the final say.
VAN SUSTEREN: Well, he has written a letter to your lawyer saying that NBC was in on it, that Trump was in on it, saying he was not the only one. You don't buy that?
PREJEAN: I do not buy that.
VAN SUSTEREN: What do you think of Donald Trump?
PREJEAN: I think he is a great man. I think that he is caught in the middle. I think that he does not know to do and she is kind of going with Mr. Lewis. It was either get rid of Mr. Lewis would get rid of Carrie. And I think the safest way was to get rid of me.
VAN SUSTEREN: What is your relationship with Mr. Lewis? How did it go sour?
PREJEAN: Just from -- we have a couple of disagreements before Miss USA. It was really had to work with him and Shanna Moekler. We had butted heads several different times before the pageant.
VAN SUSTEREN: On what kind of issues, though?
PREJEAN: Just different issues. We just did not seem to get along really well. And then after the pageant, of course, I did not hear from them because the answer that I gave, I heard Mr. Lewis was deeply saddened and hurt that I believe that a marriage is between a man and a woman, which is pretty unfortunate that he gave that statement saying that he was sad just by my own opinion.
So just from there, that's when we started to really not get along. And I think that is why am here today.
VAN SUSTEREN: Had you ever discussed same-sex marriage with him before? I mean, is this something that he himself had been out front promoting? Why was this particular issue so, you know, sort of the straw the broke the camel's back?
PREJEAN: Because we have totally different opinions on it, and our views are completely opposite. And so when your titleholder holds a different view than you and becomes an advocate for traditional marriage, and you do not agree with it, I think that where you start butt heads.
VAN SUSTEREN: Did he ever tell you to sort of slow it down or make it softer, or we can make this work as long as you keep quiet on this? I'm not suggesting that you keep quiet on it, but did he ever try to get a deal with you?
PREJEAN: He, originally when I went to New York to do the first interview on "The Today Show" and with FOX and all of my interviews, he gave me a list of things to say. His team gave me a list of things to say.
And I just couldn't do it. I had to stay true to who I am, and I had to stay true to what I believe. I mean, it was my opinion. The judge asked me my own opinion, and I gave it to him. And so I do not think that I have back out or apologize to any particular group for giving my own opinion.
VAN SUSTEREN: Did you ever talk to Perez Hilton or have any e-mails back and forth after that fateful night when he asked that question that had such an explosive effect?
PREJEAN: What do you think of that question? Would you ever have asked it?
VAN SUSTEREN: Well, actually, you and I talked. I have judged the Miss America pageant, and I was that it wasn't the content or the substance, it was whether or not you could answer a question in an effective way, whether you are persuasive and look like you have thought about it, not whether you're right or wrong.
PREJEAN: Either way, this is how I figured it out. Either way when I was on that stage and I was asked question, I had to choose -- was I going to tell the truth, or was I going to sort of give in to him and give him the answer that he wanted to hear?
And I just could not do it. I just had to stay true to who I was. I had to stay true to what I believe. And I don't think that I should be punished for my own beliefs.
VAN SUSTEREN: So you think that the reason why you did not win the overall was because of this particular question?
PREJEAN: I that Perez Hilton admitted it. He said that she was front-runner, and he underscored me the lowest. And three of the other judges were gay, also, which I don't think a lot of people know that.
But I think that definitely was a huge reason why I did not win.
VAN SUSTEREN: And you would be Miss California but for this particular --
PREJEAN: I can't believe it has gone this far, Greta. I cannot believe that not only am I not miss USA right now, but I'm not miss California. It is really, it is shocking to me. And I do not think it has hit me yet, that this is actually what has come down to it. It is unbelievable.
VAN SUSTEREN: Carrie, thank you very much, and good luck. I think regardless of the controversy, I suspect you have a wonderful career and a successful one, and I wish you all the best of luck.
PREJEAN: Thank you so much.
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