Oct. 17, 2012, 10:09am PT

Delays continue in Dish-AMC trial
Judge adjourns court to address legal issues

By Jill Goldsmith
Variety.com

http://www.variety.com/article/VR1118060876?refCatId=14


A judge in the Dish-AMC trial sent the jury home and adjourned court 
until Monday to address legal issues in the case that need his attention 
and at least one Wall Streeter predicted a possible mistrial if delays 
continue.

The courtroom was packed Wednesday morning to hear testimony by Dish 
chairman Charlie Ergen, which will move to Monday when the trial resumes 
and he could face some tough questions under cross. Dish is facing three 
separate audits to determine if it destroyed evidence and investigators 
are trolling corporate hard drives and the hard drive of programming VP 
Carolyn Crawford for audit reports and subscriber data.

Dish has already been sanctioned for destruction of evidence. Finding of 
additional wrongdoing could further hurt its case.

Thomas Clapps, a legal analyst for Susquehanna Financial who has 
followed the trial since it began September 19 said there could be more 
delays as Dish would appeal an adverse finding and the court would need 
time to assess any new evidence. "As a result of all the sideshows at 
trial concerning Dish's document destruction and misconduct, there is an 
increased risk of a mistrial," Clapps wrote Wednesday.

Judge Richard Lowe of New York State Supreme Court in lower Manhattan 
said this week he hadn't been aware that Crawford had been attending 
trial proceedings daily, which could taint her upcoming testimony. Also, 
several jurors have conflicts late this month with only two alternates 
to fill in. It's a mistrial if more than two jurors can't serve the 
entire length of the trial.

AMC Networks' former parent Cablevision sued Dish for dropping a suite 
of high-definition channels called Voom in 2007 only two years into a 
15-year carriage agreement. Dish said it had the right because 
Cablevision hadn't fulfilled its contractual obligation to invest in 
Voom programming.

Cablevision is asking for $2.4 billion damages but that could rise if 
Dish is found to have understated its number high-def subscribers.

A settlement, which including a new carriage deal for AMC Networks on 
Dish, still seems the most likely outcome.

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