Alameda Jury Mulls Decision
in Fraud Suit Against NBA Stars

OAKLAND -- An Alameda County jury began deliberations Monday at the conclusion of a five-week civil court trial in which NBA stars Gary Payton and Brian Shaw are being sued for fraud by the former minority owners of a defunct Emeryville billiard club.

The plaintiffs, who are demanding $300,000 compensation and punitive damages, say the basketball players reneged on a verbal agreement to invest in the club and to follow through on business plans to open similar clubs around the East Bay.

Lawyers for Payton and Shaw say the suit has no merit. "The plaintiffs don’t have a right to money just because Gary Payton has money," said John Burris, Payton’s attorney, in his closing statement today. "You don’t have to let people ride your coat tails unless you give them permission."

The plaintiffs, Michael Ohayon, and brothers Robert Aissa and Victor Aissa, became minority shareholders of First Place Sports Bar and Billiards, the Emeryville pool hall and restaurant bar, in October 1995. Under the name First Place Development Partnership, Robert Aissa said he mortgaged his home in a $300,000 investment with his brother into the business in hopes of expanding the business. He said Payton and Shaw gave numerous "legally binding" verbal assurances they would invest as well.

"They were hanging out at the club all the time, drawing people to the place, and telling us that they were in for sure," said Robert Aissa. "Brian Shaw said he we just needed to wait until after he renegotiated his contract with the [Orlando] Magic."

Aissa said the partners, including Glenn Matsuhara and operator William Brew, planned to open up more First Place billiards clubs in the Easy Bay and lure clientele based on the names of other NBA players who were showing interest in the business. Aissa said he met with Payton and Shaw on multiple occasions, even flying to Seattle once to talk with Payton.

After the club owner Glenn Matsuhara and operator William Brew had disagreements 1997, however, Shaw distanced himself from the business and never invested.

Matsuhara opted out of the business after Payton agreed to spend $150,000 to take over partial business interest. Payton gave an addition $52,000 to Brew to pay back accrued operating debts. Payton’s attorney said a contract clarified that Payton wasn’t liable, however, for business costs such as owed rent and a $380,000 SBA loan.

"Payton would have been responsible for the corporation if he was a director or operator, but he wasn’t," Burris said.

Burris added, "nobody can say justifiably that Gary Payton ran the club or paid the bills." Robert Bass, the attorney for Brian Shaw, argued that his client’s "interest in the business doesn’t qualify as commitment to invest."

"A conversation in a barroom is not authority," Bass said.

William Brew, who represented himself as a defendant in the suit, also owned part of the business and operated First Place Sports Bar and Billiards until it folded last year. The trial took place in the courtroom of Judge Robert Freedman.