Settlement talks fail as trial pitting Skaggs vs. Angels begins

At its core, a civil action is about money. Nobody pleads guilty. Nobody goes to prison. Either someone pays someone else or they don’t.

That’s why about 95 percent of civil lawsuits nationwide reach a settlement before or during trial, according to legal experts. Pre-trial discovery is usually complete and mediation can result in settlements. Trials are expensive, and both plaintiffs and defendants overwhelmingly prefer to eliminate the risk of an all-or-nothing jury verdict by agreeing on a compromise amount.

It’s also why the case brought by the family of deceased Angels pitcher Tyler Skaggs against the Angels surprised some legal experts. A recent all-day settlement conference between attorneys went nowhere, and both sides are focused on a trial, which begins Monday in Orange County Superior Court with opening statements and testimony.

Skaggs was found dead in his hotel room in Southlake, Texas, on July 1, 2019, before the Angels began a series against the Texas Rangers. The Tarrant County Medical Examiner conducted an autopsy and found that in addition to opioids, Skaggs had a blood alcohol content of 0.12. The autopsy determined that he died of asphyxiation after inhaling his own vomit and that his death was accidental.

Former Angels communications director Eric Kay was sentenced Tuesday to 22 years in federal prison after being convicted of providing the counterfeit oxycodone pills laced with fentanyl that led to the Skaggs’ overdose.

Prosecutors alleged that Kay sold opioids to Skaggs and at least five other professional baseball players from 2017 to 2019. Several players testified during the trial about obtaining illicit oxycodone pills from Kay.

The Skaggs family filed a lawsuit in June 2021, alleging that the Angels knew, or should have known, that Kay was supplying drugs to Skaggs and other players. Testimony established that Kay was also a longtime user of oxycodone and that the Angels knew it.

The Angels responded by saying that a former federal prosecutor hired by the team to conduct an independent investigation into the circumstances leading to Skaggs’ death determined that no team executive was aware or informed of an employee providing opioids to a player.

“The lawsuits are completely without merit and the allegations are baseless and irresponsible,” the Angels said in a statement shortly after the suit was filed. “The Angels organization strongly disagrees with the Skaggs family’s claims and we will vigorously defend these lawsuits in court.”

The team has not budged from that position even after years of discovery that included more than 50 depositions, a pretrial ruling by the judge that Kay’s conviction cannot be questioned during the civil trial, and Judge H. Shaina Cover denied the Angels’ motion for summary judgment, saying, “There is evidence that… Angels baseball knew Kay was distributing drugs to players and failed to take action to get him to stop. »

The settlement conference held between attorneys for the Angels and the plaintiffs — who include Skaggs’ widow Carli, mother Debra Hetman and father Darrell Skaggs — merely underscored that the two sides view the matter very differently, according to people familiar with the negotiations who are not authorized to speak publicly about the matter.

Settlement conferences are confidential, and the California Evidence Code protects statements and conduct at conferences from being used to prove liability. However, legal experts say it is clear that the two sides remain far apart in assessing the value of the case.

“They certainly could have been talking about settlement all along,” said Edson K. McClellan, an Irvine attorney who specializes in high-stakes civil and employment litigation. “I would be surprised if they don’t engage in settlement negotiations.”

The damages sought by the Skaggs family include their projected future income and compensation for the pain and anguish suffered by the family.

Lawyers for the Skaggs family initially said they were seeking $210 million, although that figure increased during the four years of pre-trial litigation. A claim by Angels attorney Todd Theodora at a hearing this summer that the plaintiffs were seeking $1 billion was dismissed last week by someone in the Skaggs camp who said “we’re not asking for that amount at all. My God, the whole world would be upside down.”

Skaggs had undeniable earning potential. The former left-handed first-round pick was just 27 years old and an established member of the Angels’ starting rotation when he passed away. He made $3.7 million in 2019 and likely would have made at least $5 million in his final year of arbitration before becoming a free agent after the 2020 season.

Although Skaggs posted average statistics – his earned run average was above 4.00 in each of his seven seasons and his career win-loss record was 28-38 – free agent contracts for starters under 30 range from three to six years for $15,000 to $25,000 per year. And he could have earned another contract in his mid-30s.

Assuming he stays healthy — Skaggs missed the 2015 season because of Tommy John surgery and has suffered other injuries during his career — experts said a reasonable projection of future earnings could exceed $100 million. However, his history of drug use could dampen the projections.

“Speculative projections, assuming he played another 10 years, push the price to nine figures, but honestly, looking at the level of substance abuse, jurors might have doubts,” said Lauren Johnson-Norris, a defense attorney based in Orange County.

Damages caused by pain, suffering and mental anguish could be added to the award, either by jury verdict or settlement. Legal experts expect Skaggs’ attorneys — among them nationally known Rusty Hardin and Shawn Holley — to emphasize that losing a husband or son around whom your life is centered deserves recompense.

This week’s opening statements are expected to illustrate why the two sides are not close to a settlement.

Skaggs’ lawyers will say the Angels are responsible for his death because they knew Kay was a habitual drug user who provided opioids to players, pointing to evidence that Angels team doctor Craig Milhouse prescribed hydrocodone to Kay 15 times between 2009 and 2012.

Also likely to be mentioned is Angels star Mike Trout, who according to the deposition of former Angels clubhouse keeper Kris Constanti also offered to pay for Kay’s rehab in 2018.

The Angels will counter by telling the jury that prosecutors in Kay’s criminal trial concluded that he was not acting as an employee when he gave Skaggs the fentanyl-laced oxycodone. Kay was charged and convicted, not the team.

Skaggs and Kay, the Angels will say, were two men engaging in criminal acts in their spare time and they hid it from the team. The Angels’ lawyers will tell the jury that taking doctor-prescribed opioids while recovering from surgery is much different than Skaggs cutting and snorting counterfeit pills that were not prescribed to him.

Testimony will begin after opening statements, and current and former Angels executives Tim Mead, Tom Taylor and John Carpino are expected to be the first called.

And as lawyers present their best arguments and witnesses testify in a trial expected to last more than two months, both sides will silently evaluate whether seeking a settlement is in their best interests.

An agreement could be reached at any time, thus abruptly ending the legal proceedings.

“Sometimes what triggers a settlement is a court ruling or a witness behaving well or badly,” McClellan said. “As the trial proceeds and evidence comes in, the risk is highlighted and causes plaintiffs and defendants to evaluate their cases in a clearer light.”