Klein to Seek Millions More in Raiders Verdict

The well-guarded financial secrets of the Los Angeles Raiders and the wallet of managing general partner Al Davis will be the next targets of former San Diego Chargers owner Eugene Klein and his lawyers, already the proud holders of a $5-million jury verdict against Davis and his football club.

San Diego County Superior Court Judge Gilbert Harelson cleared the way Thursday for further proceedings in Klein’s malicious-prosecution lawsuit against Davis, placing the Raiders chief at risk of being ordered to pay Klein $11 million or more in punitive damages.

A jury Wednesday found unanimously that Davis, by naming Klein as an individual defendant in the Raiders’ $180-million antitrust suit against the NFL, was responsible for the heart attack Klein suffered while testifying in that landmark case.

Under rules established before the two-month trial began, the jury will be called back next week to hear testimony about the financial condition of Davis and the Raiders. With that information as background, Klein’s lawyers will ask the jurors to render additional damages against Davis designed to punish him for suing Klein.

Klein’s suit asked for $11 million in punitive damages, but attorney Joseph Cotchett said Thursday he will ask Harelson to waive that limit so jurors can impose whatever penalty they deem appropriate.

“Any award of (punitive) damages must be designed to punish,” said Frank Pitre, another of Klein’s attorneys. “It must hurt at this stage.”

The Raiders organization and its lawyers still were reeling Thursday from a result they never expected.

“I went to bed shocked. I woke up shocked. I remain in a state of shock,” said Raiders’ lawyer Jeff Birren.

But painful as the $5,048,606 verdict may have been, things could get worse for Davis and the Raiders. The initial award was covered by the Raiders’ insurance policies. A punitive damage award would not be--it would have to be paid out of Davis’ holdings.

Davis’ attorneys tried to block further proceedings over punitive damages, arguing to Harelson that the jury’s verdict Wednesday was wrong-headed and that there was no evidence Davis had committed “outrageous” acts justifying an award of punitive damages.

Rejecting the defense motion, Harelson said he had guaranteed Klein that the trial would go into a punitive damage phase if the jury found Davis liable for Klein’s heart attack in May, 1982. The judge noted, though, that he also reserved the right to set aside a punitive damage award he considered excessive.

Harelson ordered jurors to return Monday afternoon for the trial to resume. Lawyers in the case said it was conceivable that some sort of settlement could be pounded out in the meantime, bringing the trial to an end.

But Cotchett, at least, expressed some enthusiasm for a hearing in which Davis would “open his books,” revealing his balance sheet and that of the Raiders--information Davis always has been loathe to disclose.

According to Cotchett, Klein’s vow to donate to heart research all he collects from Davis, after expenses, extends to any punitive damage verdict returned by the six-man, six-woman jury.

Gary Bailey, one of Davis’ attorneys, said, however, that he did not “believe for a minute” that Klein would donate the money to charity.

Bailey disclosed that he had asked Harelson in chambers Wednesday to declare a mistrial in the case, after learning that Klein had gone on a radio talk show earlier in the day with Roger Hedgecock to pledge to give away any money the jury awarded.

“I thought that was misconduct and an effort to influence the decision of the jury,” Bailey said.

But Harelson made no ruling on the motion before the jury came back with its verdict, rendering Bailey’s request moot.