Stay Granted in $8.5-Million Verdict Against McGaw Inc.’s Ex-Owner

An Orange County Superior Court judge granted a stay Wednesday in a $8.5-million civil judgment involving the previous owner of an Irvine-based medical company whom a jury this week decided had violated a verbal contract with a former colleague.

A jury ruled that James Sweeney, former chief executive officer of McGaw Inc., owed David Holder $8.5 million because the two agreed to buy McGaw. Sweeney and Holder met while both worked at Baxter Healthcare.

In 1990, Sweeney bought McGaw and later raised $24 million in a public offering.

Sweeney’s attorney, Michael Rhodes, said the stay prevents Holder from enforcing the verdict until the defense has an opportunity to file an appeal.

“We are displeased with the overall outcome of the events,” Rhodes said, “but glad we got the stay.” Rhodes said an appeal will be filed in the case in the next few months.

Harold Collins, attorney for David Holder, said the actions of the defense came as no surprise. “They had indicated that they would file post-trial motions and an appeal,” he said.