SAN DIEGO -- Attorneys argued Wednesday in federal court that John DeLorean's multimillion dollar ranch should go to the former automaker's creditors and not to his lawyer as payment for legal fees.
Detroit bankruptcy trustee David Allard Jr. made his argument before U.S. District Judge J. Lawrence Irving, who is hearing the non-jury case against DeLorean's attorney, Howard Weitzman.
Weitzman, who successfully defended DeLorean on cocaine-trafficking charges, said his client knew what he was doing when he turned over his elegant San Diego County ranch to him as payment for his services.
The suit contends the ranch, valued at $2.5 million to $3.5 million, belonged to DeLorean's bankruptcy estate and any revenues generated by it should be paid to the car company's creditors.
Weitzman, of Pacific Palisades, Calif., said DeLorean knew legal fees could run as high as $2.5 million during the 1984 Los Angeles trial that ended in his acquittal on charges he conspired to distribute $24 million in cocaine.
'The one thing he needed more than anything at that point in his life was competent counsel,' Weitzman said.
But, Weitzman said there was no proof DeLorean deeded the 50-acre Pauma Valley ranch to him in an attempt to keep it from the trustee of the bankrupt DeLorean Motor Car Co.
DeLorean, 60, did not appear in court for opening statements in the trial.
Attorney Robert Weiss of Detroit, representing the creditors' committee, told the judge the transfer of the ranch to Weitzman was part of a 'concerted program and plan of John DeLorean to defraud the creditors.'
Irving said he was considering calling on neutral expert witnesses to help settle any conflict on what the appropriate fee for Weitzman's services would be.
Weiss said the quality of Weitzman's defense was not the focus of the case.
'The issue is whether Mr. Weitzman should be compensated with the Pauma Valley property,' he said.
DeLorean, who founded a sports car company that ended in financial collapse in 1982, has announced plans to manufacture a new sports car in the Columbus, Ohio, area.
Those plans are being delayed by a bankrutpcy case in U.S. District Court in Detroit in which DeLorean is trying to gain control of the trademark and patents for the DeLorean sports car.
