Scultz files motion to split Sonics suit

Schultz and Stern spoke June 24, according to court documents, and Stern said he wanted "to hear it from the horse's mouth" why Schultz would not drop his lawsuit.

"I told commissioner Stern that I did not consider the NBA's assurances regarding locating a team in Seattle to be strong enough for me to dismiss the BCOS's lawsuit," Schultz wrote in court documents. "In response to that, commissioner Stern said that the NBA would offer no further assurances in that regard."

Stern also told Schultz it would become very expensive for the Starbucks chairman if he continued his lawsuit.

City attorneys approached Yarmuth once again asking Schultz to reconsider before announcing July 2 its settlement with Bennett a few hours before Pechman was scheduled to rule.

On July 11, NBA vice president and general counsel Richard W. Buchanan informed Yarmuth in a faxed letter that Schultz would be responsible for all legal fees and reasonable expenses incurred by the NBA and PBC even if he wins his lawsuit. The letter cites a "release and indemnification" agreement signed by BCOS members at the time of the sale.

The split is appropriate because it would ensure the "case does not become an unnecessarily expensive and over-lawyered three-party litigation until absolutely necessary," Yarmuth wrote in Thursday's motion.

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