Hoiles Family Suit to Split Papers Slowly Moves Closer to Trial’s Start

The long-delayed trial of a suit to divide the highly profitable Freedom Newspapers Inc. media chain between two warring factions of the family that owns it inched closer to a start Wednesday as a gaggle of lawyers began arguing in Orange County Superior Court about crucial pretrial motions that will shape the case.

Judge Leonard Goldstein, who will continue hearing oral arguments today, did not indicate when he would rule on the issues. But the decisions are expected before testimony in the six-year-old case begins in early January.

Dissident shareholder Harry H. Hoiles, whose family controls about 33% of the closely held family-owned chain, wants one-third of the company’s estimated $1-billion assets for his branch of the family.

He claims that the families of his sister, Mary Jane Hoiles Hardie, and of his late brother, Clarence H. Hoiles, have unfairly ousted him from control of the company founded by their father, the late Raymond C. Hoiles. Harry Hoiles also claims in his suit that members of the other family branches have taken actions that diminished the value of his stock.

Spokesmen for the other two branches of the family--each of which also own about 33% of the stock--claim that they have acted only to protect the company and all of its shareholders and argue that Harry Hoiles should get a discounted price for his minority interest in the company.

Santa Ana-based Freedom Newspapers, the nation’s 14th largest newspaper chain, owns the Orange County Register, 28 smaller dailies, three weeklies and five television stations.