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Jury Awards $125 Million in ComputerLand Case

March 14, 1985|VICTOR ZONANA | Times Staff Writer

A state Superior Court jury in Oakland on Wednesday levied $125 million in punitive damages against ComputerLand Corp. and its founder, William Millard, for failing to honor the terms of a 9-year-old note for $250,000.

Of the total, $10 million was levied against Millard and the balance against ComputerLand, one of the nation's largest retailers of personal computers.

Earlier this week, the jury ruled that Millard owed the note holder, an investor group named Micro/Vest Corp., compensatory damages consisting of a 20% stake in ComputerLand. Attorneys for Micro/Vest say that stake may be worth $400 million, although ComputerLand, a closely held Hayward, Calif.-based company, has disputed that valuation.

ComputerLand, whose officials couldn't be reached for comment, Wednesday asked for and was granted a two-week stay of the judgment by Judge Donald P. McCullum. ComputerLand is expected to use the stay to prepare an appeal.

The jury's original verdict hinged on a clause in the note that allowed its holder to convert the debt into a 20% stake in numerous Millard enterprises.

FOR THE RECORD
Los Angeles Times Tuesday March 19, 1985 Home Edition Business Part 4 Page 2 Column 3 Financial Desk 2 inches; 41 words Type of Material: Correction
Of $125 million in punitive damages levied last week by an Oakland jury against ComputerLand Corp. and its founder, William Millard, $115 million was levied against Millard and his holding company and the rest against ComputerLand. A story in last Thursday's Times reversed those amounts.

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