will decide which Sterling controls LA Clippers
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[June 12, 2014]
By Eric Kelsey
LOS ANGELES (Reuters) - Shelly Sterling on
Wednesday was granted a trial next month in Los Angeles to resolve a
dispute with her estranged husband Donald Sterling over who controls the
NBA's Los Angeles Clippers, leaving its $2 billion sale up in the air.
Shelly Sterling has asked a probate court to confirm her as the
controlling owner of the team after Donald Sterling promised to
block the franchise's NBA-record sale to former Microsoft <MSFT.O>
chief executive Steve Ballmer.
Donald Sterling, 80, was banned for life by the National Basketball
Association in April and fined $2.5 million by the league after tape
of racist remarks he made in private were leaked to the media. He
has owned the Clippers for 33 years.
A four-day trial in Los Angeles Superior Court is set to begin on
July 7 and offer a resolution ahead of the NBA owners' July 15 vote
on whether to approve the sale to Ballmer.
Attorneys for Shelly Sterling filed the emergency request for a
hearing to try to reinforce her status as the sole trustee of the
family trust and her right to sell the team without Donald
They allege that if the sale to Ballmer is not completed by the
NBA's Sept. 15 deadline the league will seize and sell the Clippers
franchise at public auction.
Last month, two neurologists found Sterling to have Alzheimer's
disease, which triggered the clause transferring control of the
trust that owns the team to Shelly Sterling.
According to the clause, Sterling would not have the standing to
block the sale to Ballmer that was agreed to by Shelly Sterling and
tentatively approved by the NBA.
Donald Sterling's attorneys did not immediately respond to a request
for comment but have disputed that Sterling has early Alzheimer's
If the Los Angeles probate court rules that Donald Sterling can halt
the sale, the NBA will reinstitute a hearing among owners to
terminate Sterling's ownership, a person with knowledge of the
Sterling, who originally approved the deal with Ballmer, has also
sued the NBA and Commissioner Adam Silver for at least $1 billion,
alleging he was forced to sell the team due to a recording made
illegally according to California law.
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Silver has maintained that an agreement struck with Shelly Sterling
after the deal with Ballmer indemnifies the league against any legal
action taken by her husband, so the Sterling Family Trust would have
to pay any possible damages awarded to Donald Sterling.
Meanwhile, a former Clippers "Fan Relations Intern" has sued the
trust for wages and damages, alleging the team violated U.S. and
California labor laws by not paying its interns.
Frank Cooper alleges he worked between 40 and 50 hours weekly for
about two months in late 2012, often performing work similar to that
of paid employees. He said the unpaid work reflects a trend of
employers mislabeling workers as interns to avoid paying wages.
"These programs purport to be training programs, but provide little
value to the worker while enriching the employer through the
provision of free labor," says the lawsuit, filed in U.S. District
Court on Tuesday.
(Additional reporting by Eric M. Johnson in Seattle; Editing by
Andrew Hay/Mark Heinrich)
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