Sol Price Says Son Sought Money, Not Reconciliation, at Meeting

Sol Price testified Wednesday that he met his estranged son, Laurence, in a restaurant three years ago to attempt a reconciliation, but that his son made an “outrageous” demand for $15 million.

Price, 73, the multimillionaire founder of the Price Club discount warehouses, is being sued by Laurence, 43, for $100 million for emotional distress he claims his father inflicted on him by interfering with the raising of his sons, now 17 and 15.

“I recall he told me he wanted $15 million . . . because Robert and I had made a lot of money, and that was his fair share,” Sol Price testified. Robert, Laurence’s elder brother, is president of the highly successful Price Club, which began with one location in San Diego in 1976 and has grown to 40 stores across the country.

Father Calls Son a ‘Difficult Child’

“The dream was that Larry would develop a business and demonstrate to one and all that he could handle people and . . . take his position as a major executive in the Price Club,” Sol Price said. But he described Laurence as a “difficult child” who could not deal with authority and dropped out of high school.

Although he had doubts about Laurence’s ability, Sol Price said, he arranged for Laurence to own and operate tire installation businesses attached to each Price Club. But, he said, his son mismanaged the centers, and the Price Co. board of directors canceled his contract in 1985, prompting Laurence to sue the company. An arbiter ruled against Laurence, and he lost the business.

Since that time, father and son have not been on speaking terms.

“I came to the conclusion that I was no longer going to aggressively try to help Larry in his business or otherwise and . . . let him run his own life,” Sol Price said. “I think that I’ve been trying all these years to accommodate myself to the proposition that there will never be a relationship between Larry and me.”

Sol Price’s lawyer, Gerald McMahon, on Wednesday entered into evidence a second letter Sol Price wrote to Laurence Price in 1986, at a time when, according to Laurence’s suit, he felt abandoned by his father. On Tuesday, McMahon produced a letter in which Sol Price asked his son to try to reconcile with him. That letter led to the meeting at which Laurence allegedly demanded $15 million.

Attempt to Get a Settlement

In the second letter, written after the meeting, Sol Price said he would try to get the Price Co., owner of the Price Clubs, to agree to a $4.5-million settlement to pay Laurence for the loss of his tire center leases. Under Laurence’s contract, his lease could be canceled by the Price Club, but the company had to pay him a fair amount for the business.

“You have to understand that I feel very strongly that company funds cannot be used to resolve personal or family problems,” the letter said. “I also worry (whether you believe it or not) that . . . the arbitrators could award less than $3.5 million, give Price Club attorneys fees out of your award, and award damages to the Price Club.”

(Laurence pressed on with the arbitration and won $3.7 million, but had to pay substantial attorneys’ fees and $700,000 in damages.)

“I really don’t think you want me to give you money under duress,” the letter said. “That would be the ultimate end to any chance of our reestablishing a father-son relationship. What I and your mother give you should be based on love and affection not legal pressure. . . .

“The family relationship in the long run is more important than the money. Now that my 70th birthday has come and gone, I am more aware than ever how precious time is and how much has been wasted in alienation and disputes.

“I want peace, friendship and affection. . . . Nothing would put more icing on my cake than to have the love,

trust and companionship of my son. Hopefully. Dad.”

Laurence Price testified Wednesday that he mistrusted the letter, had his lawyers review it and decided not to respond to it.

Under questioning by Laurence’s lawyer, Marvin Mitchelson, Sol Price said Wednesday that he never intended to carry out a threat to take away Laurence’s business if Laurence did not return his sons to their mother, from whom he was divorced. Laurence’s ex-wife, Emma, had won custody of the boys. Laurence took the pajama-clad boys from their mother’s home on a night in December, 1984, after they apparently had argued with her.

“I’m not sure what I meant,” Sol Price said of the threat. “I was trying to do what I thought would be the most effective argument . . . “

He said he believed Laurence had been intentionally cruel when he took the boys from their mother just before she was to take them for a Christmas visit to her family in Mexico.

“This was a cruel and heartless act that he did--when he did it and how he did it,” Sol Price said in testimony. “Once Larry decides on a course of action, it was like trying to move a mountain. I’m not sure why I said it (the threat). I don’t know. I was reaching out in frustration and anger. . . . I’m not sure I meant it when I said it. I never acted on it.”

The trial continues today before Superior Court Judge Arthur W. Jones.