Interest on Rodriguez's debt could grow
By Justin D. Anderson
Daily Mail Capitol Reporter
April 11, 2008
The amount of money that Rich Rodriguez potentially could be forced to pay West Virginia University is growing about $300 a day when interest is factored in.
And if WVU gets its way in its legal battle with the coach, that sum could soar to $900 a day.
In the end, the Michigan coach ultimately could owe WVU considerably more than the $4 million specified in the buyout clause in the contract that he had with WVU.
Rodriguez and WVU currently are wrangling over the clause in Monongalia Circuit Court.
According to the contract, Rodriguez owed a $1.33 million first installment on the contested clause 30 days after he terminated his relationship with WVU, said Tom Flaherty, lead lawyer for WVU.
That payment was due Jan. 18, and interest has been accumulating at a rate of about $300 a day.
And that may increase.
The full $4 million in the buyout was to be paid in three installments, the last of which is due in January 2010.
Because Rodriguez did not pay the first installment, Flaherty said he intends to ask Judge Robert Stone to declare that Rodriguez owes the entire $4 million debt now.
If Stone agrees, interest will start mounting at about $900 a day, or $330,000 a year.
Flaherty said interest on legal judgments had been set at a flat 10 percent rate since the 1980s. Lawmakers changed the law two years ago.
Now, the rate fluctuates each year according to a formula that is based on what the Fifth Federal Reserve District's secondary discount rate is on Jan. 2. The state tacks on 3 percentage points to arrive at its interest rate on legal judgments.
In 2007, the interest rate on legal judgments was 9.75 percent because the Federal Reserve District's rate was 6.75 percent. This year, the rate is 8.25 percent.
In a related matter, some have speculated that should the case go to trial, Rodriguez's lawyers would ask for a change of venue, though this is not commonly granted in civil cases.
Flaherty said he's not aware of any intention by Rodriguez's lawyers to do this. Marv Robon, the coach's lead lawyer, could not immediately be reached for comment.
Rusty Webb, a Charleston lawyer and former state legislator, said he believes Rodriguez's lawyers might ask that the trial be moved to either the Eastern Panhandle or Huntington.
The thought is that a jury in the panhandle would be made up largely of Washington, D.C. commuters. In Huntington, the jury probably would include a lot of Marshall University fans, Webb said.
Either way, the jury pool wouldn't include as many people who likely feel as strongly about Rodriguez's departure as do people in Morgantown, Webb said.
The two sides met in court for the first time on April 3.
Judge Stone ordered Rodriguez to turn over documents related to any talks with Michigan about his getting hired as coach there. The documents are due Tuesday.
The judge also dropped the fundraising WVU Foundation from the lawsuit, which was a defeat for the Rodriguez side.
Ed Pastilong, director of WVU athletics, and Craig Walker, chief of staff for WVU President Mike Garrison, are scheduled for depositions next Friday. Rodriguez will be deposed the following Monday.
Flaherty said they've given Rodriguez's lawyers more than 45 dates between now and mid-June for depositions of other university officials, including Garrison and WVU Board of Governors Chairman Steve Goodwin.
Nothing has been scheduled yet.
In the meantime, Flaherty said both sides are currently developing case management schedules to submit to Judge Stone.
Contact writer Justin D. Anderson at justin@dailymail.com or (304) 348-4843.[/quote]Should've paid up Rich...