Lake files suit

As expected, attorneys for Lloyd Lake—co-founder along with Michael Michaels of the now defunct New Era Sports & Entertainment—filed a civil suit on Tuesday in San Diego County Court against Former USC and Heisman Trophy-winning running back (and now in his second season with the New Orleans Saints), Reggie Bush and his family. The suit alleges that Bush and his family failed to repay an array of benefits that they received from Lake and Michaels while Bush played for the Trojans. One of Lake’s attorney’s, Paul Wong, stated that in addition to the suit, Lake has agreed to meet with NCAA investigators on Friday to discuss possible improprieties and other NCAA violations between Bush and New Era during his days as a Trojan. Remember that Michaels previously settled with Bush and concurrently promised to keep quiet relating to any further investigation by the NCAA. That said, it was dubious even then to legal pundits whether or not a confidentiality agreement such as theirs could withstand the court’s powers of discovery and subpoena. Those looking into confidentiality agreements may want to understand the basics of and the legalities surrounding using an NDA first. Generally, judges frown upon the obstruction of justice, rather than allowing it to perpetuate.

The primary caveats of Lake’s suit are as follows:

1. Judgment sought is the recovery of benefits given to Bush “between November, 2004, through January, 2006, for work, labor, services, materials, goods, a vehicle, and shelter rendered at the special instance and request of Bush and his family.” It also seeks to recover an unspecified amount of cash given to Bush and his family during that same period.

2. The suit alleges the total value of the benefits extended to Bush and his family at just over $291,000.

3. The suit alleges that Bush’s family “expressly stated, in a meeting with (Lake) and [New Era] in October, 2004, and again in November, 2004, that they had fallen on hard times financially and required immediate and significant financial assistance to support their respective lifestyles, including, but not limited to, payment of living and travel expenses of Defendants LaMar Griffin and Denise Griffin (Bush’s parents) as well as living and lifestyle expenses of Defendant Reginald Bush. At said meetings, Defendants expressly and unequivocally, stated and promised that they were borrowing from (Lake) and [New Era] only and that they would not borrow money or accept monies from any other person or entity without expressly notifying (Lake) in advance.”

4. The suit alleges a “breach of agreement” due to Bush’s family receiving benefits from a third party, stating that Bush’s family “secretly received payments, in direct violation of Defendants’ promises to (Lake) and [New Era], from at least one person sometime around late October, 2005. In particular, said person paid for the airfare sometime around October 26, 2005, and hotel expenses of Defendants LaMar Griffin and Denise Griffin along with (Bush’s younger brother) when they traveled to Oakland from San Diego between November 11 to November 13. Defendants suppressed and concealed all knowledge and information of said payments from (Lake) and [New Era] as such information and knowledge would immediately end any further cash advances.”

5. The suit alleges the existence of “written communication” from Bush whereby he promises to repay some of the benefits.

Finally, it will be interesting to see the ramifications of whatever transpires at Lake’s meeting with the NCAA this Friday. Remember, according to Jason Cole and Charles Robinson, of Yahoo! Sports, theoretically “Lake could reveal a variety of information, from receipts, bank and phone records, as well as taped conversations between himself, Bush and Bush’s stepfather LaMar. Sources say the recordings were made as Bush’s agreement to sign with New Era began to fall apart in December 2005.”

And if it is determined by the NCAA and the Pac-10 that Bush and/or his family received improper benefits, Bush would be in violation of NCAA rules. “In accordance to NCAA bylaws,” writes Cole and Robinson, “Bush’s amateur status could be retroactively voided, prompting USC to forfeit games from the 2004 and 2005 seasons, including its latest national championship. Bush’s 2005 Heisman Trophy could also be in jeopardy. Per the language on the Heisman ballot, any winner of the award ‘must be in compliance with the bylaws defining an NCAA student-athlete.'”

–Jason G. Wulterkens