Developer appeals $54.4-million judgment

Sue Doyle

NEWPORT BEACH -- Lawyers for William Lyon Co. on Wednesday asked a

judge to overturn a $54.4-million verdict against the developer for

allegedly firing a one-time partner who would not financially support the

company during a real estate slump.

William Lyon Co. is asking Superior Court Judge Raymond J. Ikola to

consider a new trial. A hearing will continue today in Santa Ana Superior

Court.

Attorneys for both the developer and John Markley, the former

employee, could not be reach for comment on Wednesday.

The court hearing was the latest move in a seven-year legal battle

between the powerful Newport Beach-based development company and Markley.

Markley was hired by the company in 1983 to develop apartment

complexes and, in 1993, he was fired. The company sued its former

employee for $19 million after he refused to pledge some of his ownership

interests to help William Lyon Co. pay off some bank loans.

Markley then filed a cross-claim and sued the developer, which offered

a $4.1-million settlement and agreed to return Markley to partnership.

Markley refused the settlement and took the company back to court for

breach of contract.

In March, a jury awarded $54.4 million to Markley after two days of

deliberation.

The award represented the estimated ownership share of the developer’s

apartment business owed to Markley.