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  #411  
Old 11-13-12, 12:48
D-Queued D-Queued is offline
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I was thinking along the same lines, something between 8 and 10 mil.

Keep in mind that the very fact team Texas did a face-about wrt to settlement was because they realized they have very poor legal case and if csa pressed hard, they would also pay their legal fees plus the the 12 mil.

Otoh, walking away with 8 to 10 million with no blood spilled should be a prudent business decision.
Sure. If there was no emotion, ego or damaged reputations involved.

SCA have made their decision, and appear willing to risk losing another $2-3m in legal fees. That is clearly Board approved.

They want more than their money back. At this point, given they are highly unlikely to settle without admission of fault or something similar from Armstrong.

Wouldn't they also be interested in damages?

Thus, an educated guess suggests that their BATNA is well above $12m.

Dave.
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  #412  
Old 11-13-12, 14:43
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Scott SoCal Scott SoCal is offline
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Sure. If there was no emotion, ego or damaged reputations involved.

SCA have made their decision, and appear willing to risk losing another $2-3m in legal fees. That is clearly Board approved.

They want more than their money back. At this point, given they are highly unlikely to settle without admission of fault or something similar from Armstrong.

Wouldn't they also be interested in damages?

Thus, an educated guess suggests that their BATNA is well above $12m.

Dave.

Yep. This is about more than money, at least that is my sense. The SCA attorney Tillotson appears to want his pound of flesh.

Interestingly, I have an attorney buddy who thinks this may be a downfall for SCA. According to him, if suit is brought "on principle" it's almost always a loser.
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  #413  
Old 11-13-12, 14:49
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Yep. This is about more than money, at least that is my sense. The SCA attorney Tillotson appears to want his pound of flesh.

Interestingly, I have an attorney buddy who thinks this may be a downfall for SCA. According to him, if suit is brought "on principle" it's almost always a loser.
Depends how you account for the cost/benefit.

If you restrict the accounting to returns derived directly from the suit itself, then yes they might 'lose'.

If you look at their reputation and the impact on their broader business, then investing another $2-3m could readily be justified.

I think that they have already won. The only question now is how much will it cost Lance.

Dave.
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  #414  
Old 11-13-12, 15:03
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Yep. This is about more than money, at least that is my sense. The SCA attorney Tillotson appears to want his pound of flesh.

Interestingly, I have an attorney buddy who thinks this may be a downfall for SCA. According to him, if suit is brought "on principle" it's almost always a loser.
Not if you've been defrauded since the original contract along with the client avoiding giving "testimony" like the black plague!

Its a slam dunk.

They will settle with "no fault" for an undisclosed sum - which will be 12m give or take 1m.
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  #415  
Old 11-13-12, 15:12
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We currently have a demand of 12 million and an offer of 1 million, I would imagine the settlement would be around 9 million done and dusted by the end of November.
Lance does not have $9 million liquid.
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  #416  
Old 11-13-12, 15:19
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Lance does not have $9 million liquid.
Correct. No cash flow. There could be a fire sale!

Maybe those 7 jerseys in the frame are up for grabs!
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  #417  
Old 11-13-12, 15:20
Dr. Maserati Dr. Maserati is offline
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Originally Posted by Scott SoCal View Post
Yep. This is about more than money, at least that is my sense. The SCA attorney Tillotson appears to want his pound of flesh.

Interestingly, I have an attorney buddy who thinks this may be a downfall for SCA. According to him, if suit is brought "on principle" it's almost always a loser.
Tillotson is working for SCA at Bob Hammans behest - that's (IMO) who is calling the shots, and Bob is a professional gambler.

The original case was lost, a poor gamble - yet it did not sink the company, basically a write-off.
But this is new - anything they retrieve will be looked at like a bonus, throw it on the pile. So i agree it is a lot more personal - and Hamman will work out his odds and risk and as LA appears vulnerable he may well stick him for a large fee.

Interesting game.
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  #418  
Old 11-13-12, 15:21
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Correct. No cash flow. There could be a fire sale!

Maybe those 7 jerseys in the frame are up for grabs!
i think that sofa is worth more than the jerseys.
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  #419  
Old 11-13-12, 15:22
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Originally Posted by Scott SoCal View Post
Yep. This is about more than money, at least that is my sense. The SCA attorney Tillotson appears to want his pound of flesh.

Interestingly, I have an attorney buddy who thinks this may be a downfall for SCA. According to him, if suit is brought "on principle" it's almost always a loser.
SCA probably has a weak case. The settlement undoubtedly contained language to make the deal final. Setting that aside will be very difficult. A lot of time has passed, ten years in the case of the 2002 bonus. SCA will ratchet up the pressure until they get the maximum amount of money that Armstrong is willing to part with in exchange for not being deposed and not paying any more legal fees. They now know that is worth at least $1M. The final number will likely be $3-4M.
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  #420  
Old 11-13-12, 15:29
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Fortyninefourteen Fortyninefourteen is offline
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Lance does not have $9 million liquid.
Random sources estimate his net worth at 100 million plus. He should be able to cough up the cash by getting out of some investments, or through selling off of some assets assuming he has no liquidity. Then again, was his lunch with Doug Brinkley the first step in a book deal that might advance him 10 Mill??

Safe to say that all the private discussions around settlement must be absolutely tense and seething with rage.....unless there is a loophole, wonderboy is over the barrel on this one with nowhere to go unless he is prepared to go to trial.

His own private " Deliverance" moment......

Last edited by Fortyninefourteen; 11-13-12 at 15:39.
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