Saturday, April 17, 1999
Judge freezes Schott deals
Reds limiteds win temporary reprieve
BY JOHN ERARDI
The Cincinnati Enquirer
Three Reds limited partners, who are suing Marge Schott over her attempt to sell her team shares to her cousin, received a temporary restraining order putting any deals on hold until April 29.
“At this time, I'm going to restrain her from doing anything until I have a chance to hear the evidence,” Hamilton County Common Pleas Judge Robert Ruehlman said Friday.
In 12 days, the two parties will present their cases at the hearing for an injunction.
If the limiteds are granted the injunction, it clears the way for them to buy the club by paying Mrs. Schott $65 million, based on the terms of a deal she made with Cleveland attorney Larry Dolan.
In a lawsuit filed Thursday, the limiteds said Mrs. Schott's subsequent deal with her cousin Steve Schott would cost them $5 million more upfront and $7 million more down the the road. (Mrs. Schott's remaining share would have cost Mr. Dolan $8 million; Mr. Schott $15 million.)
The limiteds have characterized the Steve Schott deal as “contrived.”
Reds limited partners Carl Lindner, George Strike and William Reik believe they made a deal with Mrs. Schott by matching Mr. Dolan's offer; Mrs. Schott believes she had the right to make a deal with a new buyer (Steve Schott's group) after the limiteds sent her a letter describing Mr. Dolan's offer as “non-binding.”
“The court issued the order we think is appropriate,” attorney James Burke, of Keating, Muething & Klekamp, representing the limiteds, said Friday.
Frank Kelley, who is Mrs. Schott's attorney and participated in Friday's in-chamber discussion with Judge Ruehlman by teleconference, said Mrs. Schott will file an answer to the limiteds' complaint before the end of the month.
Reds Stories
