Kerkorian Takes Stand at Disney Trial

Kirk Kerkorian, the billionaire financier and former owner of the MGM studio, testified in a rare courtroom appearance on Tuesday that he was stunned to learn that Walt Disney Co. held exclusive, worldwide rights to the MGM name for use at theme parks.

Looking tan and trim but displaying a less-than-stellar capacity to recall meetings and details, Kerkorian said he never intended or conspired to breach any agreement with Disney.

Disney is seeking to prevent Kerkorian from building a movie-related theme park under the name of MGM Grand. The park is to be part of a 33-acre casino resort.

Disney also is trying to establish that MGM, under Kerkorian’s reign, conspired to flout the 1985 agreement that sold Disney the exclusive worldwide rights. Kerkorian’s lawyers contend that MGM Grand is in no way constrained by the rights held by Disney.

MGM studios, sold by Kerkorian in 1990, is suing Disney for more than $100 million and seeking to bar Disney from using the name of MGM on a movie production attraction called Disney-MGM Studios, in Orlando, Fla.

During his nearly two hours of testimony in Los Angeles Superior Court, Kerkorian responded “I don’t recall” 37 times, with a handful of variations. Kerkorian, who first became a significant MGM shareholder in 1969, served as chief executive officer from 1973-1974 and remained its top shareholder until 1990, said that he often was not involved or familiar with its operations.

“So you’re going to be asking a lot of things that I just don’t know about,” Kerkorian, 75, told Disney’s lawyer, Sanford M. Litvack.

Kerkorian described what he said was his and MGM colleagues’ shock in 1987, when they determined that Disney in 1985 had obtained rights to use the MGM name on theme park attractions anywhere.

“We thought they were licensed only for Orlando,” Kerkorian testified, saying that he was “upset” to learn otherwise. But when he and his top executives tried to pinpoint who in the company was responsible for that aspect of the 1985 deal with Disney, Kerkorian said, “we found a dead end.”

And what did Kerkorian next decide to do?

“I don’t recall what happened,” Kerkorian testified.

At another point, after Judge Curtis Rappe struck from the record an answer not directly responsive to an attorney’s question, Kerkorian turned to his right, and said softly to the judge: “Sorry--only been in court one time in my life.” That appearance came in an unrelated civil matter, according to one of Kerkorian’s lawyers.

Afterward, Kerkorian answered questions from reporters regarding his education--he had testified that he attended a “semi-reform school” through eighth grade in Los Angeles, plus six more months at a trade school. “I got lucky,” Kerkorian said, adding with a slight smile: “It’s better to be lucky than smart, they say.”