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June 25, 2008
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Payment Of Attorneys' Fees Also At Stake In Sonics-Seattle Trial

Payment Of Legal Fees Yet Another
Issue In Sonics-Seattle Dispute
The battle over attorneys' fees in the Sonics-Seattle trial over the team's KeyArena lease "figures to be one more dispute in the already heated process," as the losing side will "wind up paying most of the attorneys' fees," according to Greg Johns of the SEATTLE POST-INTELLIGENCER. The city, if it loses, would be responsible for the "majority of attorneys' fees that could approach $2[M]" from Seattle-based Byrnes & Keller, which is repping the Sonics in the case. Conversely, if the Sonics lose, the team would have to cover legal fees from the city's K&L Gates firm that "totaled $1.1[M] as of mid-May and figure to have increased sharply in the past month." Johns notes the fight "figures to grow even more expensive should the decision be appealed." If an appeal is filed, the "ultimate winner would be responsible for attorneys' fees for both trials." And if U.S. District Judge Marsha Pechman rules in favor of the Sonics in the current trial, a "separate trial to calculate the amount of rent owed by the Sonics to the city would be needed." Johns notes "neither side is cutting corners on expenses," as the Sonics paid $100,000 for a survey of Seattle residents and the city paid $17,753 for the expert testimony of Smith College sports economist Andrew Zimbalist. Additionally, Seattle is paying K&L Gates attorney Paul Lawrence $420 an hour and chief strategist Slade Gorton $685 per hour (SEATTLE POST-INTELLIGENCER, 6/25).

MOTION OFFENSE: In Seattle, Jim Brunner reports Sonics attorney Brad Keller yesterday filed a motion seeking to "prevent Seattle Deputy Mayor Tim Ceis from testifying Thursday during the final day" of the trial. Seattle lawyers plan to call Ceis to "counter claims that the city participated in a 'Poisoned Well' scheme to financially bleed" Sonics Owner Clay Bennett into selling the team. Keller in the motion noted a city attorney had "instructed Ceis not to answer certain questions about that plan during his April 28 deposition, citing attorney-client privilege." Keller argued that the city "should not be allowed to waive that privilege now and 'sandbag' the Sonics" (SEATTLE TIMES, 6/25).

Writer Feels Seattle Should Take Bennett
Up On Offer To Buy Out KeyArena Lease
REAX: In Oklahoma City, Berry Tramel writes the trial "really hasn't done much other than smear more mud. ... Frankly, it all seems a waste of time." Tramel: "Seattle loses if Bennett wins. Seattle loses if Seattle wins. ... Hope is the only rationale for Seattle continuing the fight; hope that somehow the Sonics will stay. And that hope is gone." Tramel notes Bennett already has offered to pay the city $26.5M to buy out of the KeyArena lease and writes, "Ask Bennett for that $26.5[M], make peace with the league and get about the business of building an arena" (DAILY OKLAHOMAN, 6/25). In Seattle, Art Thiel writes under the header, "Schultz, Bennett Poisoned The Well." Thiel writes of Starbucks Chair & CEO Howard Schultz, who in '06 sold the Sonics to Bennett, "Neither Schultz's plan nor commitment was worth a damn. ... It is apparent that Schultz was barely more sincere in mandating a best-efforts requirement -- even with the home-court advantage, he air balled twice in Olympia himself -- than Bennett was in honoring it" (SEATTLE POST-INTELLIGENCER, 6/25).


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