Failed Rival Wins $1.3 Million From Ex-Pilot Publishers

An Orange County Superior Court jury on Wednesday ordered Coast Community News, former publishers of the Daily Pilot newspaper, to pay $1.3 million to the owner of the now-defunct Newport News.

The decision came after a four-week trial and more than three years after the two newspapers waged a bitter circulation battle that resulted in lawsuits and a police complaint.

The Daily Pilot filed a lawsuit in November 1991 accusing the News of inflating its circulation figures and falsely calling itself the Newport Beach leader in newspaper circulation to lure away advertisers.

The Newport News ceased publication on Oct. 16, 1992, after only 15 months in business. In its countersuit, the News said the Pilot’s accusations had caused revenue to fall by 57%, putting the News out of business.

In addition to the lawsuits, the publisher and owner of the News, Lucie Kay Schrock, had filed a complaint with Costa Mesa police on Oct. 6, 1992, accusing the Pilot of defrauding advertisers by overstating its own circulation by as much as 33%.

At that time, both newspapers were distributed free in Newport Beach, Costa Mesa and unincorporated parts of Orange County.

Schrock said Wednesday that she felt “vindicated” by the award.

“It’s great for me,” Schrock said. “After being called a fraud, it’s nice to let everyone know that I wasn’t. It was an ugly little battle, and they maliciously went after me.”

Schrock said the question of punitive damages in the case will be decided next week.

James Gressinger, who was publisher of the Pilot when the lawsuit was filed, could not be reached for comment.

California Community News Corp., owned by Times Mirror Co., purchased the Daily Pilot in June 1993. Times Mirror also owns the Los Angeles Times, which is distributed jointly with the Daily Pilot in Newport Beach and Costa Mesa. Jeffrey S. Klein, president and CEO of California Community News Corp., said Wednesday that the Pilot’s current owners are not involved in the suit.

“This was a dispute between two parties, both of which have nothing to do with the Daily Pilot today,” Klein said.