Lawsuit Could Prove Costly

Anaheim taxpayers could face a million-dollar legal bill if the City Council proceeds to a trial in its lawsuit against the Angels, but two members of the council said Wednesday that amount would not necessarily deter them.

“The spending of any money gives us pause,” Mayor Curt Pringle said. “But we’re spending money for a purpose that is right and to defend the economic value of our name.”

The city has incurred nearly $200,000 in costs payable to Rutan and Tucker, the Costa Mesa law firm assisting Anaheim in the case, City Atty. Jack White said.

In response to a public records request, White said the city has received a $59,404 bill for work through Dec. 31 -- the council authorized research and preparation for a lawsuit in November -- and estimates a $127,000 bill for work from Jan. 1-21.

On Friday, Orange County Superior Court Judge Peter Polos refused to stop the Angels from playing as the Los Angeles Angels of Anaheim and ruled the city had not shown a reasonable chance of proving the name change violated the team’s stadium lease. A trial might not start for months -- if not longer -- and White said he could not estimate what the legal bills might be if the city proceeds.

“It’s not going to be inexpensive,” he said.

“Easily, it’s seven figures,” said Sheldon Eisenberg, who handles intellectual property and entertainment litigation at the Santa Monica firm Bryan Cave. Eisenberg said such a cost was “typical” for “complex contract disputes involving large sums of money.”

Councilman Richard Chavez said the council has asked attorneys to prepare a cost-benefit analysis for options that include dropping the case, pursuing a settlement or proceeding to trial. Although city attorneys failed to convince Polos that the Angels violated a clause that requires the team name “include the name Anaheim therein,” the city could take the chance on persuading a jury and winning damages experts say could range into the tens -- or hundreds -- of millions.

“If that’s the case, $1 million might be worth it,” Chavez said. “But I don’t have enough information right now to decide whether a million-dollar legal battle is worth it.”

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The Angels planted a few more footsteps in Los Angeles, announcing a five-year agreement that enables the team to sell its merchandise at Team LA stores at Staples Center, the Home Depot Center and CityWalk at Universal Studios.

Under the agreement, AEG Merchandising -- part of the Anschutz empire that includes the Kings, Galaxy, Staples Center and the Team LA stores -- will run the Angel Stadium store. The Team LA outlets also are considered team stores, sources said, and sales at team outlets are not subject to major league rules requiring merchandising revenue be split equally among the 30 teams.

Dodger merchandise is available at the CityWalk site but not at Staples or Home Depot, AEG officials said. Staples attracts 230 events per year and Home Depot 100, AEG spokesman Michael Roth said.

AEG vice president Alan Fey said the company intended to help the Angels “increase their merchandise revenue opportunities regionally, nationally and internationally.”

Although the Angels have removed Anaheim from their uniforms and merchandise, spokesman Tim Mead said the agreement did not mean team items bearing the Los Angeles name would now appear.

“We have not authorized any Los Angeles merchandise,” he said. “You just won’t see that.”