Dickerson Claims He Was Misled

Eric Dickerson has long been known for his frugality. It’s been a running joke with the Rams’ running back. His teammates have often said that Dickerson might have the first dollar he ever made.

But a $12.5-million lawsuit, filed against former agent Jack Rodri in Los Angeles Superior Court last Monday, claims that Dickerson actually knew little about his money, that he was blatantly misled and mismanaged by his former financial adviser and now faces serious “cash flow and liquidity problems.”

Dickerson, who in 1985 signed a three-year contract extention through 1989 with the Rams, will earn $683,000 in base salary in 1987.

The contract was negotiated by Rodri and former heavyweight boxing champion Ken Norton, who formed Ken Norton Personal Management Agency, Inc. in 1985. Their only client was Dickerson, who in 1984 set the National Football League single-season rushing record with 2,105 yards.

Last week, Norton filed a $1- million suit against Rodri for allegedly mismanaging his money.

In Dickerson’s suit against Rodri, a copy of which was obtained by The Times, the running back is seeking $2.5 million in general damages and $10 million in punitive damages.

It charges Rodri with, among other things, breach of contract, negligent misrepresentation and fraud.

Dennis Loomis, the attorney representing Rodri, said he would not comment extensively on the lawsuit until he studied the document.

“But based on what I’ve heard,” Loomis said, “I have every reason to believe the claims are not well founded. There is a second side to this story.”

Loomis has advised Rodri not to talk about the case, though Rodri told the Associated Press on Wednesday that the lawsuit is “totally misleading” and added, “We will eventually prove our point, when we get a chance to tell it. Mr. Dickerson’s money was well handled.”

The allegations against Rodri encompass almost every facet of Dickerson’s finances. The document acknowledges that Dickerson in 1986 signed over complete power of attorney to Rodri, who handled everything from investments to paying Dickerson’s monthly bills.

The lawsuit, filed by Dickerson’s attorney, Arn Tellem, also alleges:

--That Rodri structured the contract to benefit himself more than Dickerson. The agreement was that Rodri would receive 10% of Dickerson’s first-year earnings, 5% in the second-year and 2% in the third year. But instead of spreading out his $500,000 signing bonus over three years, Dickerson received the entire bonus in 1986, the year in which Rodri received the highest percentage of his client’s earnings.

--That Rodri did not inform Dickerson that he was required to pay 25% of the premium on a $4-million insurance policy that the Rams had purchased as part of the contract.

--That Rodri misled Dickerson by stating his three-year extention was a “fantastic” deal and would make the Ram the “highest-paid running back.” The total value of Dickerson’s three-year deal is about $900,000 per season. According to a recent survey of salary figures by the NFL Players Assn., 11 running backs made more money than Dickerson in 1986.

--That even though Rodri was entitled to reimbursement for some travel and communication expenses, he charged Dickerson $24,000 on Dec. 27, 1985, for stationary and office supplies such as Manila file folders and pens.

--That Rodri charged Dickerson a percentage for incentive bonuses the running back received, which was not part of the agreement. For example, Rodri took 10% ($1,000) of Dickerson’s 1986 playoff earnings. Dickerson also paid Rodri $1,000 as part of the back’s $10,000 bonus for gaining more than 1,000 yards in 1985, at a time when Dickerson was still under a contract negotiated by his first agent, Jack Mills.

Also, the suit alleges that Rodri was paid 10% or $1,750 for a Dickerson endorsement with Kellog’s Corn Flakes, a deal arranged by another agent.

--That Rodri invested a “substantial” amount of Dickerson’s monies without Dickerson’s knowledge or consent, which violated the original agreement. Also, the suit claims that Rodri “fraudulently misrepresented the nature or purpose of certain documents that were presented for Dickerson for signature.”

The suit claims that a total of $156,598 was fraudulently removed from Dickerson’s personal account for investments he did not approve. In addition, Dickerson is obligated pay promissory notes totaling $250,678 by 1990.

Based on his “trust in (Rodri’s) business judgment,” Dickerson signed documents and promissory notes for “down the road” investments with the knowledge that Rodri would discuss the matter with Dickerson before any money was invested.

But, the suit claims, that was not the case.

It states that in July of 1985, without Dickerson’s consent, Rodri paid $35,200 from Dickerson’s account to the agent of the partnership, California Apartment Properties, Ltd. Another $75,000 was paid to the partnership in December of 1985. Dickerson also must pay $159,000 on another promissory note at various intervals until 1989.

Similarly, Dickerson also holds three limited partnerships in Sandstone Investors, Ltd.

According to the lawsuit, a total of $19,500 was paid by Dickerson into that partnership without his knowledge. Dickerson must pay another $60,000 in promissory notes by 1990.

Dickerson paid $20,788 and owes $30,878 in another limited partnership interest in Brook Hollow Investors, Ltd.

Dickerson says in the suit that had he known the nature of the investments, he would have never signed the documents in advance.

Dickerson also claims that, without his consent, Rodri purchased $21,828 in shares of Purolator in January, 1986, and $19,108.10 worth of shares in Ohio Edison two months later. Dickerson claims he was forced to sell the stock at a loss “in excess of $5,000.”

--That Rodri, without Dickerson’s consent, purchased a $100,000 single premium insurance policy and received $8,000 as commission.

“There’s no doubt in my mind that we will prevail in this litigation,” Tellem said Wednesday. “We did a careful review to ascertain all the facts, and we believe we have ample evidence to support every allegation. We suspect that there might be more problems, but this is all we could ascertain to date.”

Asked how much responsibility Dickerson should share for signing over power of attorney, Tellem said: “That’s easy to answer in hindsight. You’re not a lawyer, are you? An agent with a power of attorney is in the highest position of trust, he has the highest moral and ethical duty to his client. The facts demonstrate that that position of trust was not met.”

For Dickerson, it all started on the sandy beaches of the Bahamas in 1985, when he happened to run into boxer Ken Norton. The Bahamas trip was arranged for Dickerson by his first agent, Jack Mills. In conversation, Norton said he sensed that Dickerson was unhappy about his financial affairs.

Dickerson, the second pick in the 1983 NFL draft, signed a four-year contract with the Rams for $2.2 million.

In 1985, though, Dickerson broke O.J. Simpson’s single-season rushing record and understandably thought he deserved a raise. The Rams, though, rarely grant contract extensions.

Norton began talking to Dickerson about Rodri, his manager and financial adviser since 1971.

It wasn’t long before Ken Norton Personal Management Agency, Inc., was formed.

Dickerson fired Mills.

“I was concerned,” Mills said Wednesday, recalling the scenario. “I didn’t know anything about these people, other than that they had no experience. It was basically related to me that he (Dickerson) had made a change. I didn’t have a chance to talk to him about it.”

Under the guidance of Rodri and Norton, Dickerson staged a 46-day holdout in 1985 before finally returning to the team in September, with a good-faith promise from the Rams about a contract extention. Dickerson signed a three-year deal the following December.

Dickerson has been unavailable for comment on his lawsuit.