Crossing Jordan

Knafel's appeal could pose more legal problems for MJ

CHICAGO -- Facing a demand for $5 million or exposure of a long-ago affair with a nightclub singer, Michael Jordan had a decision to make. He responded by surprising his erstwhile lover, Karla Knafel, filing a lawsuit against her and accusing her of extortion.

It was a bold and risky maneuver. Jordan and his lawyers demanded a court decision that Knafel legally was nothing more than an extortionist. In deciding to file the suit, Jordan had to balance the disclosure of a sexual relationship he began late in 1989 -- Knafel says that she and Jordan began seeing each other in December of that year, three months after Jordan married Juanita, the mother of his three children -- against a legal procedure whose outcome was far from certain. It must have been a tough call for Jordan, but his strategy has worked. So far.

Last week Cook County Circuit Court Judge Richard Siebel did exactly what Jordan hoped he would do. Siebel threw out Knafel's lawsuit against Jordan and ruled that Knafel was, indeed, "extortionate" in her demand that Jordan fulfill a promise she says he made on multiple occasions: that he would pay her $5 million upon his retirement in return for her silence.

Knafel filed papers with detailed accounts of everything that happened between her and Jordan. Jordan claimed that no agreement existed between them, while Knafel insisted that one did. It appeared likely that the factual disagreements would require a jury trial. Siebel could have required a jury trial and kept the case going for months or even years. Ultimately, the jury could have concluded that Knafel had kept her part of the agreement, saying nothing about the affair for more than 12 years and through two Jordan retirements, and that now it was time for Jordan to pay what he had promised.

In his eight-page opinion, the judge agreed with Jordan's attorney, Frederick J. Sperling, that such an agreement with Karla Knafel would be unenforceable legally.

"The illegal portion, the agreement to pay 'hush money,' goes to the essence of the agreement," said Siebel. "... Because the 'hush money' provision infects the entire agreement, the court finds that the entire agreement between Jordan and Knafel is void and unenforceable as a matter of law."

This is not the first time a court in Chicago has ruled in favor of the Windy City's greatest athlete. A local jury once decided -- in a five-week trial of a $28 million claim -- that Jordan did not breach a contract to act in a movie. In another case, Jordan sucessfully brought trademark infringement and misappropriation claims against Avon Products when the company used his name and image without permission.

Knafel, now 40,, and her attorneys are planning an appeal of Siebel's ruling. They have a powerful argument that they believe could reverse the ruling in favor of Jordan.

In the appeal, Knafel's attorney, Michael Hannafan of Chicago, will suggest to the higher court that it was Jordan's idea that Knafel keep silent. Only Jordan benefited from her silence, they will argue. And now Jordan cannot be permitted to say the agreement for her silence was "extortionate" and illegal since he suggested it and he benefited from it.

Hannifan will request that the higher court reverse Jordan's victory by applying a legal doctrine known as "equitable estoppel."

The use of equitable estoppel in the right situations separates the A students from the B students in law schools all over America, and it could be Jordan's undoing in Knafel's appeal. Here is how it could work for Knafel and against Jordan: Simple fairness (equity) prevents (estops) Jordan from claiming extortion when he demanded her silence, benefited from her silence, and promised to pay for her silence. If equitable estoppel is granted, it would prevent Jordan from claiming extortion and force him to answer her claim that he made a promise he did not keep.

It was just about impossible to put a stop to Jordan on the basketball court, but a former girlfriend may succeed in putting an estoppel on him in an appeals court.

But it appears that Jordan's problems with Karla Knafel are far from over.

Sports Illustrated legal analyst Lester Munson regularly Holds Court on sports law and business matters on SI.com.

 

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