Thursday, April 03, 2008

Ichan Remembers Texaco

Maybe nobody cares any more except the bankruptcy lawyers, but here is a fascinating bit of inside baseball history--Carl Ichan remembers the Texaco-Pennzoil deal--where Texaco wound up in bankruptcy after it lost a $12 billion (big money in those days) for "interference with contract." What gets me most is Ichan's ebullient good humor. The standard mantra (formulated mainly by the Wall Street Journal) was that the whole case was a crime against humanity (it always gets me how these populist Republicans turn off their populism when it comes to the jury system).

Ichan pretty much agrees that it was a crime against humanity, but he doesn't see why that should keep him from having fun. And not incidentally, he's willing to suggest that the whole mess owed as much to the arrogance and presumption of hubba hubba New York lawyers as it did to the wiles of the evil Plaintiff's attorney, Joe Jamail.

At the end, Ichan thinks they are laughing at his story, but in fact I think they are just laughing at how badly he does the Jamail accent (caution dirty words, or word):


Source: (link) and H/T: TigerHawk.

Afterthought: Ichan mocks Jamail's plans for the money. In fact, Jamail has given away a lot of money--and has endowed a professorship at the UT Law School. Wonder if Ichan would regard this as a preferred use.

1 comment:

TigerHawk said...

I have no problem with the jury system. The big complaints about the case, as I recall, were that (i) it should have been dismissed before trial for failure to show a claim, insofar as a topping bid for a public company should not constitute "tortious interference" with another company's transaction for many good reasons, and (ii) the damages instructions were ridiculous (going from memory here, but I believe the judge instructed the jury to calculate damages based on the difference between the imputed value of Getty's reserves implicit in Pennzoil's bid and the open-market price per barrel of oil at the time, as if the two were comparable).