Klein Choice: $2 Million or Face Al Davis in New Trial

In a decision that left attorneys for Al Davis and the Los Angeles Raiders jumping for joy, a Superior Court Judge Friday reduced the $10-million jury award to former San Diego Chargers owner Eugene Klein by 80%, leaving Klein with the option of taking the money or facing his old nemesis in court again.

Judge Gilbert Harelson gave Klein 30 days to accept the reduced damage award of $2.04 million. Should Klein fail to take the reduced offer, Harelson said he would grant a motion by Davis and the Raiders for a new trial.

Harelson announced his ruling in response to a new trial motion filed last month by Davis’ attorneys on the grounds of jury misconduct. A San Diego jury awarded Klein $5 million in compensatory damages in December and an additional $5 million in punitive damages a month later after a controversial three-month trial stemming from a lawsuit filed by Klein against Davis for malicious prosecution.

Bias Alleged

However, alternate juror Stacey Thomas alleged in a sworn declaration that several jurors expressed bias against Davis during the trial. According to Thomas’ four-page affidavit, some jurors openly expressed their contempt for the Raiders during the trial and deliberations. She called Davis’ office in the middle of deliberations to tell him that he was being victimized by “prejudiced and biased statements” by jurors.

Davis’ attorneys promptly used Thomas’ allegations as the basis for a motion for a new trial and asked Harelson to set aside the $10-million verdict.

Klein, a millionaire businessman who sold the Chargers in 1984, sued Davis after charging that the general managing partner of the Raiders had maliciously singled him out as a defendant in the Raiders’ 1981 antitrust lawsuit against the National Football League.

In announcing his ruling, Harelson described Klein and Davis as “two giants in their field acting as adversaries in a game of hardball, and Klein and Davis are both great hardball players.”

But on Friday, it was difficult to distinguish the winner from the loser as a result of Harelson’s ruling. Despite winning a cool $2 million from Davis and the Raiders, Klein and his attorneys gave the appearance of coming out losers.

Klein Glum

Asked by reporters for a comment on Harelson’s ruling, a glum-faced Klein answered tartly: “I have none.”

Klein attorney Frank Pitre put on the best face and said he was “disappointed only to the effect that the jury came back with a $10-million verdict.”

Davis was not present at Friday’s hearing, but a gleeful Joseph Alioto, Davis’ attorney and a former mayor of San Francisco, called Harelson’s ruling a victory for Davis and the Raiders.

“They couldn’t beat the Raiders on the field, so they felt they could beat them somewhere else,” said Alioto. “Well, it didn’t happen . . . We knocked out 80% of this verdict that we originally said was unjust, and there’s a good chance that we will knock out the other 20% at a new trial.”

Reasons for Reduction

Klein sued Davis after he suffered a heart attack while testifying in Davis’ suit against the NFL and Klein. In a two-page ruling, Harelson said that he decided to reduce the compensatory damages awarded to Klein from $5 million to $1.04 million on several grounds, including:

- No permanency of injury.

- Physical effects of the heart attack were for a relatively short period of time, approximately 6 months.

- No limitation on Klein’s physical activities after November, 1981.

- No damage to Klein’s reputation.

- No loss of business opportunity.

- No financial loss other than $48,606.82 in medical and hospital expenses.

Harelson also decided to reduce the punitive damages awarded to Klein from $5 million to $1 million, in part because the “acts of Allen Davis and the Raiders were done with a great deal of involvement with and advice from their attorneys.”

The judge said that the acts by Davis and the Raiders “were not so reprehensible” as to justify a $5 million punitive award. Harelson ruled that the “appropriate punishment” would be that Davis pay $280,000 in punitive damages and the Raiders pay an additional $720,000.

Pitre, Klein’s attorney, said he would discuss Harelson’s ruling with Klein before deciding whether to accept the $2 million or reject it and let Davis have a new trial.

Appeal Hinted

A smiling Alioto said that Davis would wait to see what Klein’ next move will be, but he hinted strongly that Davis would probably file an appeal for a new trial in the state appellate court if Klein takes the money.

“We would like a new trial because we think we can knock off the rest of damages awarded to the other side,” said Alioto.

Then he looked across to the other end of the hallway, where Klein and his attorneys were approaching the elevator, and said in a loud voice: “Happy Easter, everyone. Have a good one.”