Ruling on Freedom’s Trustee Is in the Air

A skirmish in the battle for control of Freedom Communications Inc. shifted Friday to probate court, where a judge was asked to determine whether a trustee holding a key block of the company’s common stock has the authority to vote the shares.

Orange County Superior Court Judge Marjorie Laird Carter set a hearing on the matter for Nov. 5 -- about the time that Freedom shareholders may be asked to decide whether to allow outsiders to buy or invest in the family-owned firm, parent of the Orange County Register.

If the decision is close, a vote of the shares held in the trust could play a decisive role.

The trustee is retired Los Angeles Superior Court Judge Paul Egly. Egly previously voted the shares, representing about 3.8% of Freedom’s stock, in favor of exploring options for a sale of part or all of the Irvine-based company.

The trust was established by James H. Hoiles, who died in 1964. His grandfather, R.C. Hoiles, founded the company.

In a motion Friday, Egly contended he also had authority to vote on an actual sale of Freedom shares and asked Carter to rule that he does.

James Hoiles’ three sisters asked Carter to rule that Egly has no such authority. The sisters are part of a family faction that has campaigned against selling Freedom, although they have been forced to support the alternative of allowing outsiders to invest in the firm to buy out disgruntled relatives’ shares.

Though Carter delayed the voting issue for at least a month, she did rule that a 1989 settlement of earlier suits over the trust no longer could be kept secret, because no “overriding public interest” was served by doing so.

As reported Wednesday in The Times, terms of the settlement already had been outlined in public filings. They included an $800,000 payment to Patricia G. Hoiles, James Hoiles’ widow, who receives income from the trust as long as she lives.