http://www.detroitnews.com/article/2010 ... al-battlesEstate of Pistons owner mired in legal battles
Charity commitments the Pistons owner is said to have made before his death at issue. A legal fight has erupted pitting the widow of Detroit Pistons owner William Davidson against the managers of his estate, amid reports that she is maneuvering to sell the team. At issue: Allegations that his estate refuses to pay $20 million the business-and-sports tycoon promised to Jewish and Israeli causes before he died March 13. The accusations, which emerge from December lawsuits, come as Karen Davidson, 61, is moving to shed some of his holdings. She sold the Detroit Shock women's basketball team in fall and a Manhattan condominium for $3.55 million in August, and recently listed the 10-acre Stony Creek Ranch in Aspen, Colo., for $47 million. Sources also say she's shopping the Pistons, which Forbes claims is worth $479 million. Through a spokesman, Karen Davidson declined comment on the Pistons, but addressed lawsuits against the estate involving a firm that lists her as manager. "Karen Davidson regrets that these issues could not be settled amicably," said spokesman Michael Layne. "She has joined in legal actions to have the estate of William Davidson honor this clear, unequivocal commitment ... helping fulfill William Davidson's vision and love for the state of Israel."William Davidson, who was 86, parlayed ownership of Guardian Industries glass company into a sports empire that once included the Pistons, Shock, Tampa Bay Lightning hockey team and Detroit Fury arena football team. He also was a world renowned philanthropist who gave heavily to Jewish and Israeli causes. His 19-page will, signed one week before his death, breaks his estate estimated at more than $1 billion into several trusts and names three beneficiaries: Karen Davidson; a son, Ethan Daniel Davidson; and daughter, Marla Jane Davidson Karimipour; all of Bloomfield Hills. The will doesn't specify how much each would receive, or which properties, but lists the estate's representatives as Jonathan S. Aaron, William Davidson's son-in-law, and Eric L. Garber.
Before speculation of the Pistons sale broke this week, legal actions against the estate were already in motion. On Dec. 1, Milestones Upgrading & Industries Co., an Israeli company, filed suit in Oakland Circuit Court claiming the estate reneged on $15.35 million that William Davidson pledged to invest through his company, Big Ben Investments. That firm, for which state records list Karen Davidson as manager, received $23.65 million in earlier investments from her husband, according to court records. Big Ben also filed a similar lawsuit after the estate denied the request from Milestones. Both cases are assigned to Oakland Circuit Judge Nanci Grant. According to court papers, Milestones was established by Davidson with his longtime friend, retired Israel Brig. Gen. Oded Tyrah. The private-equity firm was intended to "invest in small to medium-sized Israeli-related companies, using proceeds, $40 million, from an earlier Israeli investment," according to Layne. The suits claim Aaron informed company officials in April that "because of a dispute arising among the beneficiaries of the estate," no more money was forthcoming. State records indicate Karen Davidson replaced Aaron as manager of Big Ben Investments in November, just weeks after the lawsuit alleges the estate denied a claim from the firm for more money.
Aaron, Garber and the estate's attorneys couldn't be reached for comment Tuesday.Separately, another Jewish group -- Areivim Philanthropic Group -- has filed a $4.8 million claim against the estate, court records indicate. William Davidson helped establish the New York City-based charity in 2007 and was one of 13 trustees who pledged $5 million apiece to the group that "funds our Jewish future" through educational grants, according to a complaint against the estate, Aaron and Garber. The complaint alleges Davidson donated $200,000 before the estate severed funding. "Bill Davidson helped set this (Areivim) up -- it was his dream," said attorney Henry Baskin, who filed the claim. Aaron and Garber denied the request in October, stating "there is no supporting documentation to establish the claim," according to court papers. Layne said: "He (Davidson) was a man of his word and would honor this clear, unequivocal commitment." He wouldn't address claims from sources that Karen Davidson is seeking a buyer for the Detroit Pistons. Attorney Oscar Feldman, who sold his minority stake in the franchise in October, said he's heard that she is interested in selling. "It's not confirmed," said Feldman. "It's the word around town."
