Kerkorian Loses Bid in Suit Against Automaker

DaimlerChrysler’s lawyers didn’t hide a witness’ notes in the trial of billionaire Kirk Kerkorian’s fraud suit over the company’s 1998 merger with Chrysler Corp., a court-appointed official concluded Monday.

Collins Seitz, a lawyer appointed to review the handling of former Chrysler executive Gary Valade’s notes, said the documents probably weren’t turned over to Kerkorian’s lawyers because of problems copying them. U.S. District Judge Joseph J. Farnan Jr. in Wilmington, Del., halted the trial Dec. 16 when the missing evidence turned up.

The decision is likely to clear the way for Kerkorian’s $3-billion suit to resume this month, lawyers said. Kerkorian sought to be declared winner of the trial when the missing documents turned up. Seitz’s finding makes it unlikely that Farnan will grant that request, legal experts said.

“Those kinds of motions would only be granted if someone intentionally withheld documents,” said Robert Zito, a corporate litigator in New York City who handles securities cases.

DaimlerChrysler said the finding by the court-appointed master supported the company’s contention that the missing notes weren’t deliberately covered up.

“We always said it was an error in the process rather than an attempt to hide anything,” said Han Tjan, a spokesman for DaimlerChrysler, the world’s fifth-largest automaker.