Raiders’ Insurer Sues the Raiders : Company Does Not Want to Pay $5-Million Award to Klein

An insurance company Tuesday sued the Raiders to avoid possibly having to pay a $5-million award that Al Davis, the team’s managing general partner was ordered to pay Eugene Klein, former owner of the San Diego Chargers.

The National Union Fire Insurance Co. of Pittsburgh sued the Raiders in federal court in Los Angeles for a court determination of its responsibilities under the team’s liability coverage.

The suit claimed the California Insurance Code bars coverage of malicious acts.

Klein sued Davis for malicious prosecution after the Raiders’ successful 1980-81 antitrust suit against the National Football League. Klein claimed that a heart attack he suffered on the witness stand in August 1982 was a consequence of Davis’ naming him as a defendant in the suit.

Klein, who has since sold the Chargers, won a judgment Dec. 10 for more than $5 million in compensatory damages against Davis.

In San Diego, meanwhile, the punitive damages phase of the trial began in Superior Court.

Jurors deliberated about 30 minutes before recessing for the day. They resume deliberations today.

During closing arguments, Klein attorney Frank Petrie urged the jury to punish Davis for wrongfully naming Klein an individual defendant in the Raiders’ antitrust suit against the NFL.

“We have to send a message that hurts and is felt,” Petrie said, adding that a $7-million punitive judgment would be in the “hurt” range.

Joseph Alioto, who represented Davis, told the jury it should not award any punitive damages.

Superior Court Judge Gilbert Harelson denied motions by Davis’ attorneys for a mistrial and examination of jurors for possible misconduct. A subpoena served by Davis’ representatives on NFL Commissioner Pete Rozelle also was quashed. Davis had sought Rozelle’s testimony in the punitive damage phase of the trial.