Closing Arguments Heard in SunAmerica Lawsuit

Describing the failed partnership between billionaire power broker Eli Broad’s company SunAmerica and a former partner as one of “ill-will, dissension and antagonism,” attorneys for the partner on Wednesday urged a judge to essentially grant them a business divorce.

The request came during closing arguments in a contentious lawsuit brought by SunAmerica against Jeffrey M. Gault. Proceedings in the 5-year-old lawsuit began in October.

“If you do not dissolve the relationship . . . it is only a matter of time before the parties are in litigation again,” said Gault’s attorney, Raymond Riley.

SunAmerica is suing Gault for allegedly concealing key information about real estate investment ventures when he was working for the firm, scouting potential investments in 1994.

Gault was to give the company the first shot at investing in potential deals he found. Gault acknowledged he knew about two, including one involving the Buena Park Mall in Orange County, but said they weren’t ripe for investment until after SunAmerica released him from his obligations in October 1994.

Investing with Gault was the Chicago-based Pritzker family, which owns the Hyatt hotel chain. SunAmerica is also suing the Pritzkers and is asking for punitive damages of $126 million--the amount of profit from the investments.

SunAmerica’s lead counsel, Michael L. Cypers, has said the case is “about people and human relations and what is fair.” The trial has drawn interest because Broad himself took the stand to testify.

Meanwhile, Gault’s attorneys on Wednesday characterized the case as SunAmerica’s attempt at a “squeeze play” to force Gault to relinquish the $30-million interest he holds in five hotels he still owns with the company.

Closing arguments will continue today. Superior Court Judge Judith C. Chirlin is not expected to issue a judgment for several weeks.