Skip to main content

Trial will weigh if Sterling was properly ousted

By WTOP Staff

TAMI ABDOLLAH
Associated Press

LOS ANGELES (AP) — A trial will be held next month to determine whether Donald Sterling, who opposes his estranged wife’s planned sale of the Los Angeles Clippers, was properly removed as an administrator for the family trust that owns the team.

A probate court judge in Los Angeles Wednesday denied Shelly Sterling’s urgent request to confirm her authority as sole administrator of The Sterling Family Trust so that she can unilaterally proceed with a $2 billion sale of the team to former Microsoft CEO Steve Ballmer. Instead, the judge agreed to an expedited hearing because of looming sales deadlines.

The development is the latest in a legal tug-of-war following the NBA’s decision to ban Donald Sterling for life after racist remarks to a girlfriend were recorded and publicized. Donald Sterling is fighting the decision and suing the league for $1 billion.

The league has contended the comments were bad for business and damaged both the Clippers and the NBA.

The four-day trial was granted exceptionally quickly and will begin July 7. The deadline for the sale is July 15, which also is the date the NBA’s owners hope to vote on whether they will approve the sale.

Court filings Wednesday indicated the NBA has set a hard deadline of Sept. 15. If the sale isn’t completed then, the league will undertake proceedings to seize and sell the team on its own.

Donald Sterling’s lawyer, Bobby Samini, left the courthouse without comment after a clerk announced the trial schedule. Neither Sterling was present.

“I just want to resolve this as quickly as possible,” NBA Commissioner Adam Silver told The Associated Press on Wednesday in Miami at an NBA Cares event.

The crux of the case will center on the question of whether the 80-year-old Donald Sterling is mentally competent to be a co-trustee of The Sterling Family Trust, which gives him the authority to determine the team’s future. According to the trust’s terms, he can be ruled “mentally incapacitated” after being evaluated by two doctors, said Pierce O’Donnell, Shelly Sterling’s attorney.

Shelly Sterling activated that clause in negotiating what would be a record-breaking deal with Ballmer as sole trustee. But Donald Sterling challenged the removal in a letter sent Monday to his wife’s attorney said “any attempt to remove me as a Trustee of the Sterling Trust is invalid and illegal. Furthermore, any assertion that I am ‘incapacitated’… is false and without merit.”

According to court documents, two doctors examined Donald Sterling in May and concluded that he suffers from “mild cognitive impairment consistent with early Alzheimer’s Disease” or some other forms of brain disease after examining brain scans and having him undergo other tests.

“In my opinion he is substantially unable to manage his finances and resist fraud and undue influence, and is no longer competent to act as trustee of his trust,” concluded Dr. James E. Spar, who is affiliated with the division of geriatric psychiatry at UCLA.

Sterling voluntarily went to the doctors at the request of his wife, according to a person with knowledge of the proceedings who spoke on condition of anonymity because they were not authorized to discuss the details publicly.

A third doctor reviewed the two doctors’ findings as well as Sterling’s brain scans and concurred with their conclusions that he “lacks the capacity to function as trustee.”

Donald Sterling’s attorney, Maxwell Blecher, contested the doctors’ findings in remarks Tuesday to The Associated Press.

“Anybody at his age level on a brain scan would probably show some impairment. But that doesn’t mean you forget where your car keys are and you’re incompetent,” Blecher said. “There isn’t the slightest evidence he’s incapable of managing his affairs.”

Donald Sterling said in a statement that he’s not just fighting for the Clippers but taking a stand against the NBA, which he called “a band of hypocrites and bullies” and “despicable monsters” who want “to take away our privacy rights and freedom of speech.”

“As I’ve said previously, if Donald chooses to litigate against us, so be it,” Silver said. “So it’s going to take longer than we had hoped for this transaction to close, but it’ll get done ultimately. It’s just a question of time.”

Ballmer’s attorney, Adam Streisand, said he was pleased with the trial schedule and “confident that after the trial the court is going to bless this transaction.”

The NBA’s general counsel, Rick Buchanan, warned in a court papers that if the judge didn’t confirm Shelly Sterling’s sole trusteeship and if her deal with Ballmer “is not promptly consummated, there will be substantial harm” to the Clippers, the NBA and even The Sterling Family Trust — the last of which would be responsible for the NBA’s costs related to the legal proceedings that result.

Buchanan said a recent independent survey of more than 500 Clippers fans found the majority would be less likely to support the team if Donald Sterling remained its owner. Buchanan said thousands of NBA fans worldwide have contacted the league directly or via social media to say they’re hurt or embarrassed by his views and aren’t sure they’ll continue supporting the league and its teams. He also cited NBA player worries about the impact for the team with the upcoming NBA draft.

“Mr. Sterling’s continued ownership is damaging the Clippers’ and NBA’s relationships with existing and potential business partners and licenses,” Buchanan wrote. He said nearly all of the Clippers’ local sponsors have terminated or suspended their relationships with the team, including Adidas, Commerce Casino and Hotel, Red Bull, Mandalay Bay Hotel, Virgin America and Mercedes.

Shelly Sterling’s court bid aims to have a judge confirm her authority as sole trustee to ensure the Ballmer sale moves forward.

Blecher said that a representative for Donald Sterling would be at any hearing, and that the next step is to have other doctors evaluate Donald Sterling.

“I have no doubt at the end of the day the court is not going to say he’s incompetent,” Blecher said. “That’s a very high burden in the probate court — otherwise people would get their sisters and wife and brother-in-laws and everybody declared incompetent.”

___

AP Basketball Writer Tim Reynolds in Miami contributed to this report.

___

Tami Abdollah can be reached at http://www.twitter.com/latams

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Where to take the family while they visit DC

Government shuts down after last-minute talks and Senate vote fail

How the Tax Cut Affects Investors