Developer of Old World Asks Court to Set Aside $1.2-Million Judgment

Attorneys for the developer of the Old World shopping center in Huntington Beach have filed a motion in Orange County Superior Court, asking that a $1.2-million judgment against their client be invalidated because evidence was tampered with.

The attorneys say government documents which could have been helpful to their client, Joseph Bischof, were removed from files and destroyed by two of the plaintiffs in the case.

But the motion says also that the information comes from a former Old World shop owner who wants a 10% interest in Bischof’s company in return for his testimony.

The motion, the latest volley in a bitter four-year legal battle between Bischof and 12 store owners in the mock Alpine shopping center where shop owners live above their businesses, is based on alleged statements by Alfred Skistimas, a former store owner at Old World and a plaintiff in the original lawsuit against Bischof.

The motion was filed Friday by Bischof’s trial attorney, Joseph R. Donahue.

Removal of Files Alleged

In declarations accompanying the motion, Donahue and other attorneys for Bischof contend that Skistimas told them that two former members of the Old World Owners Assn.’s board of directors removed documents about Old World from the files of the state Department of Real Estate and the Huntington Beach Planning Department.

The motion calls the alleged acts a “deliberate and calculated maneuver designed to prevent (Bischof) from having a fair adversary hearing.”

Named in the motion are Virgil Batesole and Julietta Lewis. The motion contends that Skistimas told attorneys that the two removed and subsequently destroyed documents which they perceived as damaging to their case against Bischof.

According to Skistimas’ alleged statements to Bischof’s attorneys, Lewis--one of Bischof’s most vocal critics--showed Skistimas letters and documents purportedly removed from the Department of Real Estate’s files before the filing of the original lawsuit.

Lewis denies the charges. “I have never stolen any papers. They’re desperate,” she said in a telephone interview Monday.

Motion Called ‘Frivolous’

Robert S. Lewin, the attorney for Lewis and the other store owners who sued Bischof for fraud, described the motion as “frivolous. It’s a sham attempt to divert attention from their own wrongdoing, to confuse people out in Old World and to attempt to discredit Julietta (Lewis) and Virgil (Batesole).”

A Superior Court jury originally returned a $2.1-million judgment against Bischof. But that amount later was called “excessive” and reduced to $1.2 million by the judge.

Bischof subsequently filed for protection from creditors under Chapter 11 of the federal bankruptcy code. The bankruptcy is being contested by attorneys for the owners association and for the individual store owners.

The Chapter 11 filing, Donahue said, might be one reason Skistimas has come forward.

So far, Skistimas has refused to sign a declaration substantiating his conversations with Donahue and Jeffrey P. Walsworth, Bischof’s appellate attorney, and members of their staffs.

The motion says that Skistimas has refused to submit a sworn declaration unless he receives trust deeds to two properties and a 10% interest in West Coast Soccer League Inc., Bischof’s closely held company.

‘In a Nice Position’

Still, Donahue and Walsworth both said they believe Skistimas’ allegations.

Donahue said Monday that he told Skistimas that he “wouldn’t have any part” of an effort to convince Bischof to agree to Skistimas’ proposal. Donahue said he believes Skistimas told the same story to others representing Bischof in various legal actions in order to enhance his own negotiating position.

“This puts (Skistimas) in a nice position,” Donahue said. “He sees Mr. Bischof file Chapter 11 and figures it’s the right time to play his trump card.”

Skistimas could not be reached for comment on Monday.

Walsworth said he believes that in asking for a settlement from Bischof, Skistimas is looking for a means of “off-setting” some of the “hell” that would result from implicating several of his fellow plaintiffs.

Walsworth said he plans on filing a separate lawsuit against Lewis and Batesole based on Skistimas’ allegations. Those allegations, Walsworth said, have been confirmed by investigators he has hired. But he declined to say whether those investigators would testify at the hearing next month on the motion to dismiss the judgment against Bischof.

Lewin remains nonplussed. “They are relying on the statements of a man who is absolutely trying to shake down Mr. Bischof. I would hope such an obvious sham would have no influence on matters before the bankruptcy court.”