O.J.’s Unpaid Debt
The People vs. Orenthal Simpson captured the nation’s attention in 1995. The State of California brought charges against football and movie star, O.J. Simpson for the murder of former spouse Nicole Brown and her friend Ron Goldman. The case resulted in a not-guilty verdict. However, in a civil suit brought by the families, he was found liable for the deaths of Ron Goldman and Nicole Brown Simpson. As a result, O.J. owed a $33.5 million judgment. That unpaid debt continues even after O.J.’s recent death, an important lesson about the persistence of financial obligations.
O.J.’s will named long-time lawyer Malcolm LaVergne to serve as personal representative of the estate. At first, LaVergne planned to deny the Goldman and Brown families’ claims. Later the lawyer reversed his position. The personal representative plans to pay any claim the parents file, to retrieve the millions awarded in a 1998 civil judgment against the accused killer.
Attorney Malcolm LaVergne, who represented Simpson from 2009 until the former running back’s death on April 10 after a battle with prostate cancer, walked back statements made, saying that he’d fight to prevent a payout of the $33.5 million judgment awarded to the families of Simpson’s ex-wife, Nicole Brown Simpson, and her friend Ron Goldman. In a later statement, LaVergne said, “I can tell you in advance, [the] claims will be accepted. And his claim will be handled in accordance with Nevada law.”
LaVergne said that his initial remarks were a reaction to Fred Goldman, father of Ron Goldman. The Goldman family has doggedly pursued payment of the judgment since 1997. Fred Goldman had publicly denounced Simpson, even within hours after his death.
The victims’ families have never received any money from Simpson relating to the judgment. By legal operation, the judgment total increases by 10 percent each year. The money owed to the Goldmans and Browns is a judgment lien and a “secured debt. The probate process gives priority to secured debts. The decedent’s secured debts are paid before other creditors of Simpson holding unsecured debt, according to state laws. All debts have priority over distributions to the beneficiaries, OJ’s four adult children.
The football Hall of Famer had assets at his death. Those holdings included real estate holdings in Florida.
While O.J. Simpson may have been able to avoid paying the judgment during life, his estate will now pay. The estate planning lesson is that our debts live on even after our deaths.
Evan J. Krame
