Last-Minute Talks Put ICN Trial on Hold

With a jury only moments away from listening to opening statements in the sexual harassment trial of ICN Pharmaceuticals and Chairman Milan Panic, defense attorneys Monday asked for a last-minute conference with the opposition, halting the proceedings and sending the case into limbo until today.

Orange County Superior Court Judge Raymond J. Ikola, clearly annoyed that the jury had already waited in the courthouse corridor for much of the morning and part of the afternoon, asked what possibly could be achieved by another delay.

“Potentially a lot, your honor,” one of ICN’s attorneys told the judge.

Citing “unexpected developments,” the judge then excused the jury for the day and said, “I can’t really tell you more than that.”

Attorneys for both sides emerged from the courtroom tight-lipped. Although an official gag order has not been issued by the judge, the attorneys said they have agreed not to publicly discuss any details. They would not say whether they are engaged in last-minute settlement talks.

The case pits ICN and Panic against Mary Martinelli, the company’s former human resources director. She is one of six female ICN employees in the last five years to accuse Panic of sexual harassment and one of four to file a lawsuit.

Panic, ICN’s 68-year-old founder and a former prime minister of Yugoslavia, has long maintained that he has done nothing wrong and his attorneys have said previously that the charges are “without merit.”

Attorneys huddled among themselves and occasionally with their opposing lawyers throughout Monday. Panic, seated at the defense table, sipped water and occasionally spoke to his attorneys. Martinelli also was in the courtroom and frequently was called over to participate in discussions.

Attorneys spent two full days last week selecting a jury of eight women and four men to hear the case. Ikola asked members of the panel to return to court at 10 a.m. today. It is not known if opening statements will take place then.

Martinelli, 38, was a $101,200-a-year executive whose duties included dealing with sexual harassment claims. In addition to accusing Panic of sexually harassing her for several years, Martinelli alleges that other ICN officials had known of Panic’s unwanted advances since 1992 but didn’t take any action to stop him even after other former employees filed harassment cases.

Two other public sexual harassment lawsuits against Panic have been settled and another is set for trial in January.