O.J.'s Unique Talent.

In addition to garnering rushing yards, O.J. Simpson has a talent for generating lawsuits.

Add to the list a brand-new published opinion from the Ninth Circuit dealing with arcane legal principles of the McCarron-Ferguson Act, abstention, full faith and credit, and comity.

During Simpson's prosecution in the mid-90s, he borrowed against his Rockingham property (in Brentwood) and a New York townhome, according to the opinion. (See the background section, which is summarized below.)

Simpson defaulted. As a result, a foreclosure sale ensued. One potential bidder, Jeff Bazyler, contacted Hawthorne Savings--apparently the same bank that had the Simpson loan--to obtain funds to bid on the property. Hawthorne's President, Scott Braly, approved a loan for $2.6 million.

However, Braly decided to have Hawthorne bid against Bazyler at the foreclosure sale. Further, Hawthorne outbid Bazyler at the sale, purchasing the property for $2,631,000 almost $1.2 million under its market price. Hawthorne then sold the property for $3.7 million.

Bazyler was not amused. He sued Hawthorne and Braly, alleging deceit, constructive fraud and constructive trust. Hawthorne settled, paying Bazyler $700,000.

Then Hawthorne tendered to its insurer, who covered only $10,181.59 of Hawthorne's claimed out of pocket loss of $1,054,377.94. Thus, the case turned into a insurance coverage dispute between the bank and its insurer, which in turn generated a host of legal issues and a 40 page appellate decision.

But, Simpson started it all.

(HT: California Appellate Report.)