Freedom Newspapers Inc. Drops Suit for Attorney Fees

Freedom Newspapers Inc.’s majority shareholders decided Tuesday to drop their lawsuit for attorney fees and costs against disgruntled family member Harry H. Hoiles. But the action is little more than a housecleaning matter.

Because Hoiles lost his long-fought bid for a court order dissolving the Irvine-based media chain last week, he already is liable to pay the majority’s court costs, estimated at $100,000 to $300,000. The court could also order him to pay the majority’s attorney fees, said Leonard A. Hampel, the Costa Mesa attorney for the families of Hoiles’ sister and late brother.

Attorney fees and court costs for both sides in five years of the dissolution battle total nearly $12 million, lawyers in the case have estimated.

“Our hope is that this is a first step toward eliminating litigation with Harry,” Hampel said.

Vernon W. Hunt Jr., the Santa Ana trial attorney for Hoiles, said he expects to ask Orange County Superior Court Judge Leonard Goldstein this week for a statement of decision on the judgment against Hoiles--a required first step in any plans for an appeal. No decision has been made yet on whether to appeal, he said.

The Hoiles family and the families of Mary Jane Hoiles Hardie and the late Clarence H. Hoiles each own about a third of the company. Freedom Newspapers owns or operates 29 newspapers, including the Orange County Register, and five television stations.