Better to Mediate Bankruptcy Rift

With reference to your editorial (“Unity Is Best in Bankruptcy Suit,” Dec. 21) it is true that, as soon as we are old enough to play organized sports, we are taught the importance of being “team players.” Yet, we are never told by our coaches to quit before the game is over, or to give in to bullies, even when other members of our “team” might urge us to do so in the interest of expedience.

Surprisingly, however, in the name of “team unity,” The Times apparently believes that, after having spent substantial funds in preparing its case for trial, the North Orange County Community College District should now abandon its lawsuit against the law firm of LeBoeuf, Lamb, Greene and MacRae and allow the LeBoeuf law partners to walk away victorious, without having to touch their annual profits of nearly $70 million to help close the gap between what the county is willing to take in settlement and what the district needs to recover in order to avoid a multimillion loss of principal, interest and attorney’s fees.

The county has negotiated a settlement with LeBoeuf, without the district’s advice or consent, that would only require LeBoeuf’s malpractice insurance carrier to make a settlement payment, and would shield the ample assets of the LeBoeuf firm. In order to collect this insurance money, the county has demanded that the district immediately drop its lawsuit in exchange for an unreasonably low share of the settlement proceeds that would leave the district far worse off than if it had never filed suit in the first place.

Instead of resorting to intimidation, the county should engage in negotiation. Political pressure tactics are counter-productive and only serve to polarize the parties. Indeed, if the county truly believes that the district is so wrong in refusing to accept its uncompromising settlement demands, then why is the county unwilling to abide by its earlier agreement to go to meditation with a retired jurist?

There would be no settlement dollars on the table if the district had not spent the time and the money to bring its case to trial--a case which is very different than the one being pursued by the county. We hope, therefore, that, in the interest of being fair to both sides, The Times will encourage the county to honor its prior agreements with the district, and “work toward common ground” by participating in a good faith mediation designed to resolve this needless controversy.

TOM HARRIS Jr.

Chancellor

North Orange County Community

College District