Los Angeles— O.J. Simpson died on Thursday without paying the majority of the $33.5 million judgment that a California civil jury gave to the families of his ex-wife Nicole Brown Simpson and her friend Ron Goldman. Simpson was acquitted in a criminal trial, but juries found him guilty in a 1997 wrongful death case.
The public will now have a better understanding of Simpson’s finances, and the families will have a greater chance of collecting, assuming there is anything to collect. Here’s how the next few months might play out.
A probate process
Whether or not he left a will, and whatever that document states, Simpson’s assets will very definitely have to go through the probate process in court before his four children or other intended heirs can collect on any of them.
Different states have different probate laws. In most cases, the case is filed in the state where the individual resided at the time of death. In Simpson’s case, that is Nevada. But if significant assets are in California or Florida, where he also lived at various times, separate cases could emerge there.
The Goldman and Brown families will be on equal footing with other creditors
Nevada law requires an estate to go through the courts if its assets exceed $20,000 or if real estate is involved, and this must be done within 30 days after the death. If a family fails to file documentation, creditors themselves might initiate the procedure.
Once the matter is in court, creditors who claim they are owed money can seek a portion of the assets. The Goldman and Brown families will be on at least equal footing with other creditors, and will probably have an even stronger claim.
Under California law, creditors holding a judgment lien, such as the plaintiffs in the wrongful death lawsuit, are considered to have secured debt, and have priority over creditors with unsecured debt. And they are in a better position to get payment than they were before the defendant’s death.
Arash Sadat, a Los Angeles attorney who specializes in property disputes, believes it is “100%” beneficial for the claimant if the debtor is deceased and their money is in probate.
He stated that his firm had a jury trial and their clients received a $9 million verdict award, which the debtor appealed and postponed indefinitely.
”He did everything he could to avoid paying this debt,” Sadat said. “Three or four years later, he died. And within weeks, the estate cuts a check for $12 million. That’s the $9 million plus interest that I had accrued over this time.”
The executor or administrator of the estate has much more of an incentive to dispense with debts than the living person does. “That’s why you see things like that happening,” Sadat said. However, this does not guarantee payment
“I do think it’s going to be quite difficult for them to collect,” attorney Christopher Melcher said. “We don’t know what O.J. has been able to earn over the years.”
What assets did Simpson own?
Simpson said he lived solely on his NFL and private pensions. Hundreds of costly possessions were seized as part of the jury award, and Simpson was forced to auction his Heisman Trophy for $230,000.
Goldman’s father, Fred Goldman, the principal plaintiff, has always stated that the problem was never about money, but rather about holding Simpson accountable. In a statement issued Thursday, he stated that with Simpson’s death, “the hope for true accountability has ended.”