Friday, November 8, 2002
Closing arguments heard in Steinberg lawsuit
Associated Press
LOS ANGELES -- Sports agent Leigh Steinberg's $40 million
lawsuit claiming a former business partner and others conspired to
steal clients and set up a competing agency went to the jury Friday
evening.
The eight-member federal court jury began deliberating after
being told by Steinberg's attorney during closing arguments that
the agent was the victim of betrayal. The defense countered that
David Dunn and the other defendants competed fairly against
Steinberg, and characterized the lawsuit as revenge.
Steinberg attorney Brock Gowdy detailed a "game plan'' executed
by Dunn and partner Brian Murphy to steal clients, employees and
documents from the firm of Steinberg, Moorad & Dunn and blackmail
Steinberg so he wouldn't try to stop them.
"This is a case about betrayal and it's a case about
blackmail,'' Gowdy said.
Steinberg, a model for Tom Cruise's flamboyant sports agent in
the movie "Jerry Maguire,'' has represented dozens of star
athletes. But lawyers for Dunn and his co-defendants claim that
Steinberg, despite his reputation, has seen his role in dealmaking
dwindle in recent years. They say it was Dunn who actually did much
of the work.
Dunn departed SMD to form Athletes First two years after
Steinberg merged SMD with Assante Corp. of Canada. The defense
claims Dunn was cheated out of millions in the deal and that SMD
had become dysfunctional as Steinberg grew arrogant and rude.
Athletes First defense attorney Lee Hutton told the jury in his
closing argument that Dunn didn't solicit any SMD clients to join
his firm, and that the athletes made their own choices.
Gowdy contended that Dunn breached his contract with SMD soon
after he signed a new contract worth $7 million that included a $2
million signing bonus and a clause that forbade Dunn to compete
with Steinberg's firm.
Gowdy said Dunn broke that agreement in starting Athletes First.
Dunn joined Steinberg's firm in 1991.
