Sterling Sues KADY Owner for Libel

In a continuing exchange of lawsuits and counter-suits, the owner of Oxnard-based KADY-TV is being sued for libel by the former owner of the station, court documents filed Tuesday show.

Former owner Donald Sterling filed the libel suit in Ventura County Superior Court, alleging that a press release that KADY President John Huddy issued concerning their legal battles was purposely and maliciously false.

In the March 4 release, Huddy claimed a “split decision” in a ruling that most observers said Sterling won. Superior Court Judge Edwin Osborne ruled that Sterling had no ownership interest in Huddy’s FCC license, meaning that the transfer of ownership was legitimate and that Huddy still owes Sterling money.

The release also claimed that Sterling had agreed to pay $1.8 million to settle a previous lawsuit, which Huddy says he filed alleging “fraud and other misconduct.”

“This is Lewis Carroll at his best,” said James C. Fedalen, an attorney for Sterling. “I’m surprised there weren’t a bunch of rabbits jumping off that press release.”

Fedalen said Huddy never sued Sterling for fraud, nor did Sterling ever agree to pay Huddy $1.8 million to settle a lawsuit. Instead, it was Sterling who sued Huddy for failing to make lease payments on the station, he said. And Sterling agreed to waive $1.8 million in interest on the missed payments if Huddy agreed to make up the missed payments, Fedalen said.

“But he reneged on that and we had to sue again,” Fedalen said. “So there was no settlement.”

For his part, Huddy said he does not recall writing or sending out the press release.

“This is not a concern of mine,” Huddy said. “Being in a state of conflict with this man is old hat.”

Huddy bought the station from Sterling in 1991. Huddy has since filed for bankruptcy protection and is seeking to sell the station.