01/28/97 - 11:44 PM ET - Click reload often for latest version
SANTA MONICA, Calif. - In two separate trials, much has been made of O.J. Simpson's fame. But jurors in his civil trial may be asked to consider his fortune as well.
If the jurors decide he committed the murders, they will face a new question: How much money should it cost him? And that would set off a major confrontation on the issue of Simpson's finances.
Fixing the amount of monetary damages and determining how it should be paid are usually the most complicated and divisive issues in civil suits.
The issues can generate years of courtroom fighting and a tug of war over every dollar. Winning a suit is one thing; collecting the money often requires an army of accountants, court orders and infinite persistence.
Simpson is expected to give the court a financial statement this week stating that his net worth has plummeted to less than zero. It was estimated at $10.8 million when he and his wife, Nicole Brown Simpson, divorced on Dec. 31, 1991.
If they win their cases, the plaintiffs for the Browns and the family of Ron Goldman are expected to ask for judgments totaling more than $12 million. That would be more money than ever has been imposed on an individual defendant in a publicized verdict.
"Definitely an eight-figure amount," says Robert Hirschhorn, a Texas lawyer and jury consultant who has followed the case since the murders occurred June 12, 1994.
The plaintiffs are Goldman's father and mother - Fred Goldman and Sharon Rufo - and Nicole's estate, presided over by her father, Louis Brown. Fred Goldman and Rufo both have filed wrongful-death actions for the loss of their son. There are also two so-called "survival" actions filed on behalf of both estates.
A survival action is a legal device that essentially allows a dead person to sue for the damages he would have been entitled to if he had survived.
Sorting out the money
None of the plaintiffs believe Simpson is as broke as he is expected to claim. In a hearing scheduled today, the two sides will argue over whether Simpson has given the court adequate financial information.
An investigation by CNN and Time magazine reported that Simpson has at least $2.5 million tucked away in retirement and pension funds, although that money is untouchable in a civil judgment. The funds begin paying annuities in five years, when Simpson turns 55. At about the same time, he'll start drawing a total of $2,000 in monthly pensions from the Screen Actors Guild and the National Football League.
But even if Simpson were to prove that he's broke now, the plaintiffs would argue for a big judgment on grounds that Simpson's fame will earn him money over time.
"He is a media figure and . . . there may be an audience that will pay just to hear or see him," says Richard Share, a Los Angeles lawyer who represents banks and other companies in civil judgments.
His normal TV, film and advertising incomes cut off, Simpson has been making money off his notoriety. Although neither Simpson nor his business manager, Leroy Taft, will discuss details, it's estimated that he netted $1 million from the sale of his book, I Want To Tell You, and another $250,000 for autographing the book.
His income from the sale of family pictures taken in the weeks and months after his criminal trial to tabloid magazines has been calculated at $500,000 in published reports citing anonymous sources. In his statements to the court, he reported $250,000 income from the sale of a video presenting his side of the case.
Enormous bills
But his $950,000-a-year income from NBC and Hertz is gone. And his legal bills have been enormous. His criminal case cost at least $3 million, possibly as much as $6 million.
His defense in the civil case, estimated at close to $1 million, reportedly was paid for by an insurance policy on his company, Orenthal Enterprises. Although the policy didn't cover criminal charges, he qualified once he was acquitted. But he paid an unknown out-of-pocket amount for his successful battle with Nicole's parents for custody of his children, Sydney, 11, and Justin, 8.
Simpson joked on the witness stand that he used to be a wealthy man but that now he has "a lot of wealthy lawyers."
Not that he lives poorly. The cost of running his Rockingham estate includes a maid, a gardener, personal assistants and a full-time security guard.
To cover his lifestyle and pay his lawyers, he went through $500,000 in cash and stocks, then sold a number of assets. He sold a 50% interest in a string of HoneyBaked Ham franchises. He sold three Orange County condominiums for $700,000 that he owned outright and some property in Mexico for an unknown amount. He sold his New York apartment for a $1.1 million profit.
Growing debt
He borrowed an unspecified amount against his childrens' estate and re-mortgaged his Rockingham home for a $3 million line of credit (his original mortgage was almost paid before the murders). That left him about $200,000 a year in interest payments. Sliding real estate values in southern California have dropped the value from $5 million in 1994 to an estimated $4 million today.
Even if Simpson does get hit with a judgment, the plaintiffs can't seize any property with a lien on it. The lien-holder has a previous claim. That makes the Rockingham home untouchable, which means the only property that could be seized by the plaintiff is the $250,000 San Francisco condominium where Simpson's mother lives. Having her evicted could subject the plaintiffs to public criticism.
If Simpson loses this case and appeals, he'll continue piling up legal debts. Losing parties who appeal typically are required to post a bond covering 1 1/2 times the judgment. A bondsman would post the money and require Simpson to give him 10% of the amount.
But for the jury now considering Simpson's financial fate, his money situation is irrelevant at least for the moment. If jurors don't find Simpson liable for the attacks, the case is over. If they do find him liable, their first job is to set compensatory damages. Those would be awarded with no regard for Simpson's financial condition.
Nicole's family chose not to file a wrongful-death suit, so they'll receive no compensatory damages. And the only direct loss to Nicole's estate under the survival action is the black dress she was wearing when she died, valued at $250.
But Goldman's family did file for wrongful-death, leaving the jury to calculate a figure for their pain and suffering.
Both sides already have been preparing the jury for that battle. Simpson's lawyer has painted the families as greedy. "This fight is not about justice. This fight is about money," Robert Baker told jurors.
The plaintiffs stress money is the only recourse they have left. "Justice would be to see Ron Goldman walk through that door or Nicole Brown Simpson playing with her children," Fred Goldman's lawyer, Daniel Petrocelli, told the jury.
By Richard Price, Jonathan T. Lovitt and Gale Holland, USA TODAY
