Reggie Bush loses attempt to settle lawsuit via confidential arbitration

Bush loses attempt to take case to arbitration

SAN DIEGO — Reggie Bush lost Monday in his bid to go to confidential arbitration to settle a lawsuit filed by a fledgling sports marketer.

The state Court of Appeal upheld a lower court’s order denying Bush’s motion to compel arbitration with Lloyd Lake, meaning the case will proceed in court. Lake is trying to recoup nearly $300,000 in cash and gifts the star running back and his family allegedly accepted while he was playing at the University of Southern California.

“This was Reggie’s last-ditch effort to keep this out of the public eye,” said attorney Brian Watkins, who is representing Lake. “Now it will be litigated in the public court and people will be able to see his wrongdoing.”

Lake is accusing Bush and his parents of accepting the cash and gifts during Bush’s sophomore and junior seasons at USC. Lake and his partner, Michael Michaels, were trying to attract Bush as a client for the marketing firm, New Era.

Bush, now with the New Orleans Saints, did not sign with New Era.

The NCAA and Pac-10 are investigating whether Bush and his parents took improper benefits. Bush has not met with NCAA and Pac-10 investigators, and has repeatedly denied any wrongdoing.

If Bush is found retroactively ineligible, he could lose his Heisman Trophy.

If the NCAA determines that USC violated rules, the football program could have to forfeit victories from those seasons — when the Trojans won a national championship and lost in the BCS title game against Texas — and face additional penalties.

“Reggie Bush coaxed our client, Lloyd Lake, into giving him over $300,000 while he was still in college, and then didn’t return any of the money,” Watkins said.

A message was left seeking comment from an attorney for Bush.

Michaels, who owned a San Diego-area house where Bush’s parents allegedly lived rent-free, reached an out-of-court settlement with the family in April 2007. Attorneys for Bush argued that Lake was bound by the arbitration clause in Michaels’ settlement agreement.

Watkins said he’ll begin scheduling depositions with Bush, USC coach Pete Carroll, Michael Michaels and others.

Watkins tried to take Bush’s deposition in February 2008, but said the running back didn’t show up.