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July 25, 2008
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Schultz Seeks To Split Bennett Suit In Response To NBA Efforts

Schultz Seeking To Have Lawsuit
Against Sonics Owners Split Into Two Parts
Starbucks Chair & CEO Howard Schultz Thursday filed a motion seeking to split into two parts his lawsuit seeking to rescind his '06 sale of the then-Sonics to a group led by NBA's Oklahoma City franchise Owner Clay Bennett, according to Greg Johns of the SEATTLE POST-INTELLIGENCER. Schultz' attorney Richard Yarmuth Thursday filed a motion with U.S. District Court Judge Marsha Pechman asking to "'bifurcate' the suit into separate trials that would first determine whether Bennett's group was guilty of fraud, breach of contract or negligent misrepresentation before moving to a second phase to decide a legal remedy should Schultz succeed in the initial pursuit." The motion is "partially in response to the NBA's motion to intervene in the case, given the league's insistence that it be involved in any transfer of ownership." The motion indicated that NBA Commissioner David Stern "has made it clear to Schultz that his continued pursuit of litigation would become 'very expensive' for him and his former partners." If Pechman grants Schultz' request, the split trial would "potentially keep the NBA and its legal team on the sideline until the second phase to determine how the court might resolve the dispute." Schultz, in a declaration filed with the motion, "outlines how Stern pressured him to drop his litigation and join with the city in its settlement last month that allowed" Bennett to move the franchise to Oklahoma City. Schultz indicated that Stern "wanted 'to hear it from the horse's mouth' as to why" Schultz was not dismissing his suit. According to Schultz, Stern said if Schultz "did not join in the settlement, I should realize it will become very expensive for me and my partners and he implied that I should reconsider my position" (SEATTLE POST-INTELLIGENCER, 7/25). In Seattle, Percy Allen notes splitting the suit would allow Pechman to "render a decision on Schultz's claims that he was duped into selling the team before hearing arguments on how she would force the team to return from Oklahoma City" (SEATTLE TIMES, 7/25).

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