Sterling Trial Ruling: Shelly Sterling Wins On All Counts, Ballmer Sale A Go
By Micky Shaked
Judge Michael Levanas ruled in state court Monday in favor of Shelly Sterling’s sale of the Los Angeles Clippers to former Microsoft CEO Steve Ballmer.
Shelly Sterling and Steve Ballmer's lawyers said they expect the sale of the Clippers to go through by Aug. 15.
— Arash Markazi (@ArashMarkazi) July 28, 2014
After two weeks of trial (and one week of recess in between), both sides made their closing arguments before Shelly Sterling got the ruling she and the NBA were hoping for.
Shelly Sterling, with a big smile, embraces Pierce O'Donnell.
— Dan Woike (@DanWoikeSports) July 28, 2014
Shelly Sterling is crying. "I'm just happy it's over. A great man will be taking over the team now."
— Arash Markazi (@ArashMarkazi) July 28, 2014
Though she won in a landslide decision, Shelly Sterling said outside the courthouse that she expects the NBA to one day lift Donald Sterling’s ban.
In an oral statement of his decision that took 30 minutes, Judge Levanas ruled on a number of individual points of contention:
- There was no credible evidence of an orchestrated “Plan B” to remove Donald Sterling from the trust, Shelly’s motives were legitimate.
Court doesn't find credible evidence of "A secret plan B."
— Dan Woike (@DanWoikeSports) July 28, 2014
Judge said the court finds Shelly's motivation to getting Donald tested was because she was legitimately concerned.
— Arash Markazi (@ArashMarkazi) July 28, 2014
- The two doctors used to assess Donald Sterling, Meril Platzer and James Spar, were both credible despite Platzer’s meeting with Shelly at the Polo Lounge for a drink after analyzing Donald
Court finds the two doctors Shelly had look at Donald were credible.
— Arash Markazi (@ArashMarkazi) July 28, 2014
- Shelly orchestrated the Clippers sale appropriately, including through Donald’s change of heart on May 29
Judge believes Shelly was credible when she said Donald wanted her to get what she could get in the sale of the team and supported her.
— Arash Markazi (@ArashMarkazi) July 28, 2014
Judge rules that Shelly was acting as a sole trustee when she entered into the binding term sheet.
— Arash Markazi (@ArashMarkazi) July 28, 2014
- In short:
Judge rules that Shelly properly removed Donald as a trustee and negotiated the sale of the team. Shelly wins round 1.
— Arash Markazi (@ArashMarkazi) July 28, 2014
- Up next came Donald Sterling’s revocation of the trust, which he argued gave him sole authority to sell the team.
Judge says Shelly "clearly had to authority" to engage in contract with Ballmer.
— Dan Woike (@DanWoikeSports) July 28, 2014
Judge rules the trust owns the Clippers, not owned by shares that reverted to Donald upon revocation
— Dan Woike (@DanWoikeSports) July 28, 2014
- Another victory for Shelly Sterling.
Shelly wins Round 2. RT @thejackwang Judge says probate court retains jurisdiction of this case despite Donald's revocation of the trust.
— Arash Markazi (@ArashMarkazi) July 28, 2014
- With few surprises through the first two issues, Round 3 concerning Donald’s ability to appeal was perhaps the most important and most up in the air.
1310b is "the most difficult to decide" judge says
— Dan Woike (@DanWoikeSports) July 28, 2014
- Judge Levanas bought Clippers CEO Dick Parsons’ “death spiral” argument, finishing off the rulings Shelly Sterling and the NBA were looking for.
1310 b is looking good for Shelly Sterling so far. Judge says trust will lose $400 million if provision isn't used.
— Dan Woike (@DanWoikeSports) July 28, 2014
The judge does order 1310b. This is huge. Shelly in a clean sweep.
— Arash Markazi (@ArashMarkazi) July 28, 2014
The decisions mean her sale of the Los Angeles Clippers to former Microsoft CEO Steve Ballmer will proceed. But the process remains on egg shells as Levanas’ decision isn’t set in stone.
The judge's ruling later today is a tentative oral decision and not legally binding yet. But it's significant. Can't see him changing.
— Arash Markazi (@ArashMarkazi) July 28, 2014
That, coupled with Donald Sterling’s lawsuit against Shelly Sterling and the NBA, mean the “Sterling situation” could be far from over. This comes as no surprise, as Donald Sterling has made clear his intention to drag out the process as long as possible in hopes of forcing a league takeover of the Clippers franchise.
As it became evident throughout trial proceedings that Sterling would lose the team one way or another, his opportunity to exact revenge in the form of damages lawsuits required the NBA to vote sterling out and facilitate the sale itself.
O'Donnell said if the NBA takes over the team and begins process for a sale that process could drag on into the season.
— Arash Markazi (@ArashMarkazi) July 28, 2014
Shelly Sterling and her lawyer, Pierce O’Donnell, requested at the end of proceedings last week that Judge Levanas make an appeal-proof ruling in order to prevent further delays.
O'Donnell said if the judge rules in Shelly's favor along with 1310B (appeal-proof) the sale of the Clippers will go forward.
— Arash Markazi (@ArashMarkazi) July 28, 2014
She got her wish. Though the NBA season should begin with both Doc Rivers and Chris Paul playing for the Los Angeles Clippers, we haven’t seen the last of Donald Sterling.
Steve Ballmer's lawyer said Steve will keep the team in L.A. The team name will also stick for the foreseeable future.
— Arash Markazi (@ArashMarkazi) July 28, 2014
To be clear - this isn't over over. Still a writ of appeal - still another lawsuit to try and go around Levanas' decision.
— Dan Woike (@DanWoikeSports) July 28, 2014
Donald's lawyer said he was calm. He only saw this as one battle in a long war.
— Arash Markazi (@ArashMarkazi) July 28, 2014