The Los Angeles Times from Los Angeles, California • Page 188

A14 I I NOV I Mill li l. rx) SD I ANCI.I.I.S I IMI BRODERICK: Case Ends in Mistrial CNN Gives Noriega Tapes to Magistrate for Review Media: U.S. official is to report to district judge on whether the broadcast of conversations would damage the ex-dictator's right to a fair trial. MIKF.CI.ARY I Al. I( Fill: TIMES MIAMI The swirl of legal issues complicating the case against Gen.

Manuel A. Noriega took another turn Tuesday when the Cable News Network handed a federal magistrate several jail -house tape recordings of the former Panamanian dictator talking with his lawyers. The magistrate, William C. Turnoff, is to review the conversations and then report to U.S. District Judge William M.

Hoevcler on whether broadcast of the tapes damages the general's right to a fair trial on drug-dealing charges. CNN agreed to submit the tapes for review after the U.S. Supreme Court refused Sunday to overturn an order by Hoeveler that temporarily barred the network from airing them. Frank Rubino, Noriega's chief defense counsel, has charged CNN with compromising the general's right to a fair trial by airing privileged attorney-client conversations. Meanwhile, during an interview Tuesday in his chambers, Hoevcler lamented the delays caused by wrangling over the tapes and the defense team's legal fees, which the judge called "these side problems which have taken on a life of their own." Rubino, who says he has not been paid for months, has asked to quit the case unless the government cither makes money from Noriega's frozen bank accounts available, or the judge raises the SGO an hour fee cap the defense could charge as court-appointed lawyers.

"If we did not have these prob- lems, we could make that trial date of Jan. 28," Hoevcler said. Hut, he added, bringing in a new defense team "would cause (a delay of at least a couple of months." Of the funding question, Hoevcler said that "we're reaching a crisis on that." and indicated that he would rule next week. "I would prefer that they (Rubino and three colleagues stay on the case," he said. "That's the most sensible way to get this case to trial." The judge said also during the interview that he was aware that the case against the former strongman, seized during last December's invasion of Panama, was frequently ridiculed by comics and newspaper columnists, and he acknowledged a widespread public perception that Noriega's chances for a fair trial are remote.

"I know everybody believes, 'Let's give him a trial before we hang It's unfortunate that people feel that way," Hoeveler said. "In all that I do, I try to give the impression that he's getting a fair shake. "But these other issues, the fees, the tapes these are causing the skepticism." Added Hoevcler: "I have every intention of making sure he does get a fair trial. And not just because he's Gen. Noriega, but because he's a defendant in a criminal proceeding." The next step in the CNN tape issue is expected after Turnoff reports to Hoeveler, perhaps later this week.

At that point, the judge will either permit their airing, or order a permanent ban. A ban will prompt an appeal by CNN, according to network attorneys. arc confident that after VV Magistrate Turnoff reviews these tapes, CNN will be found not to have violated the court order," said Steven W. Korn, general counsel for Turner Broadcasting System CNN's parent company. Those conversations broadcast last week recorded at the federal prison south of Miami, where Noriega is being held were not covered by the judge's order protecting attorney-client privilege, Korn said.

"We acted in good faith," he added. Noriega co-counsel Jon May said Continued from Al T. Broderick III, and his second wife, Linda Kolkena Broderick. A new trial date is to be set next Tuesday. San Diego County Dist.

Atty. Edwin Miller said Tuesday night that he and Wells will decide in the next few days whether to go forward with a second trial. Betty Broderick's daughter, Kim Broderick, 20, a sophomore at the University of Arizona who testified against her mother at the trial, said she was "frustrated and mad." She added: "I just wanted this to be behind us." Defense attorney Jack Earley said the hung jury was "not a real surprise" and added that he plans now to ask that Betty Broderick be freed on bail. He also said he is amenable to plea bargaining. In the meantime, Earley said, "This has been a vindication that Betty Broderick is not what she has been pictured to be." Saying Betty Broderick had been successful at the trial in persuading at least some jurors that she had been a victim, too, and contending that she was guilty at most of manslaughter, Earley said it was "obvious" that jurors "saw some of the things she saw and felt some of the things she felt." Betty Broderick declined to comment, saying: "I'm still in custody.

I'm not supposed to talk." Betty Broderick, 43, was charged with two counts of first-degree murder in the shooting deaths of her ex-husband and his second wife. She has been held without bail at the Las Colinas Jail in Santee since she surrendered to police only hours after the killings. Daniel Broderick, who was 44, was a prominent medical malpractice attorney and a former president of the San Diego County Bar Assn. Linda Kolkena Broderick, who was 28, was his office assistant. After 16 years of marriage, Daniel and Betty Broderick separated.

During and after a bitter divorce, Betty Broderick accused him of using his legal influence to cheat her out of her fair share of his seven-figure annual income. Betty Broderick admits firing the shots that killed her ex-husband and his second wife. Testifying in her own defense, she contended at the trial that she did not have the premeditation the law requires for first-degree murder because she intended only to confront him and to kill herself last Nov. 5, when she stole into his house before dawn. Prosecutor Wells contends that Betty Broderick fully intended the killings and executed her ex-husband and his new wife after years of rising rage that stemmed from the divorce.

Jurors had five options in the case first- and second-degree murder, voluntary and involuntary manslaughter, and not guilty on any charges. First-degree murder means the murder was premeditated or considered beforehand while second-degree lacks that deliberation. Voluntary manslaughter means a killing was committed after a sudden provocation. Involuntary manslaughter describes a killing that occurs while doing something else without due caution. After passing a note saying that the jury was "unable to reach a unanimous decision," foreman Lu-cinda L.

Swann, 26, of San Diego, a county air pollution inspector, told Whelan in court Tuesday that the panel could not decide whether the case was about murder or manslaughter. Whelan sent the panel back for more talks but, 29 minutes later, the jury returned, saying that it was unable to break the deadlock and that further talks were unlikely to help. Swann said that the panel took "three or four" votes but, after conferring with others on the jury, said the others "seem to feel it was more than half a dozen." Whelan then declared a mistrial, telling the panel it was "a shame that you can't have a final resolution, but that's the way things sometimes end up." In interviews later Tuesday, jurors declined to explain whether the 10 who favored murder believed it was first- or second-degree. Similarly, jurors did not say whether the two urging a lesser charge sought voluntary or involuntary manslaughter. Wells said the outcome was "hugely frustrating." "Well, obviously there were a lot of emotional issues in this case, a lot of opinions going both ways." she said.

"Finding 12 people who were going to agree was going to be difficult." Wells also said she did not know what she would do differently in a second trial because she wanted to talk to jurors to find out what worked and what didn't the first time around. She said she would rethink tactical decisions she made, like not asking Betty Broderick on cross-examination about the act of the killings. "Obviously I'll be open to thinking about lots of different things," she said. Earley said a second trial would be burdensome. With no income and limited assets, Betty Broderick might not be able to afford a second trial, Earley said.

Still, he said, "I will be there. She wants me as her attorney and I like her as a client." Tactically, he said, the difficulty for the defense the second time around is that prosecutors know the strengths and weaknesses of the defense case. "It's just distressing to know you're at square one again," he said. In recent years, five other high-profile San Diego criminal trials have resulted in a hung jury on some or all charges among them the cases against Roger Hedge-cock, Sagon Penn, Craig Peyer and Richard T. Silberman.

In the case of Nancy Hoover Hunter, the jury was hung on the vast majority of charges. Like their cases, Earley said, the frustration is in realizing that a lengthy trial has not yet yielded closure in Betty Broderick's case. "It seems like it's been going on forever," he said. Times staff writer Michael Granborry contributed to this story. HOUSING: Real Estate in California Seen Worsening he has asked Hoeveler to find CNN in contempt of court, and assess fines of up to $300,000 for each broadcast of a taped conversation between the general and his attorneys.

Multiplying that fine by each airing over every CNN affiliate could produce a total of some $12 million, he said. When asked if those fines could be used to pay Noriega's legal fees, May said; "That may well be." For home delivery, call 565-8522 Cos Attfleteg SKmes San Diego County Edition HONEYBAKED Continued from Al ploymenl levels have been dropping, an ominous sign for the future of the state's economy, Hen-slcy said. Nationwide, housing starts fell almost 27 in October, compared to a year ago, and 6, compared to the previous month. That put building at a seasonally adjusted annualized level of just over 1 million homes, the lowest since June, 1982. That means that 1 million homes would be built if the October pace was maintained all year long.

"It's a substantial drop, no question about it," said Adrian Cooper, a Commerce Department economic analyst. The drop was especially severe in the western United States, including California, where building activity fell to a seasonally adjusted annual level of 266,000 units. That was 33 lower than in October, 1989, and 17 lower than in September. "New home sales in the West have been plummeting," said Robert Villanucva, director of forecasting for the National Assn. of Home Builders.

California accounts for roughly half the new-home HOMEFED STOCK OFF 25 A sagging state economy and real estate market could leave the nation's fifth-largest with $1 billion in problem loans by year-end. Dl production in the western United Slates. The recent decline in new-home construction in California has been particularly pronounced in once-hot areas such as the Antelope Valley in northern Los Angeles County and the Inland Empire east of Los Angeles, housing experts say. Market conditions are starting to resemble the housing slump of the early 1980s, when mortgage rales soared into the teens and decimated California's and the nation's real estate industry. Mortgage rates are stable today, hovering around 10 for fixed-rate loans, but consumer confidence has been shot by the turmoil in the Middle East and lenders have all but quit making residential development loans, real estate experts say.

Although the California housing market has been in a slow decline since last year, the drop has accelerated in recent weeks after Iraq's invasion of Kuwait on Aug. 2. The slowdown has been worsened because builders are having difficulty getting loans. Lenders are reluctant to make new real estate development loans because existing loans have soured in increasing numbers, causing growing losses at thrifts and banks. In Southern California, builders have taken extreme measures to deal with the slump, in many cases laying off as much as 40 of their work force, according to Dimick of Deloitle Touche.

If the downward trend continues, he predicted, it will force added layoffs and may cause some builders to merge with other firms or even go out of business. "1 had one client, who normally sells about 1,000 homes a year, tell me he's selling about six or seven homes a month," Dimick said. "That's serious trouble." Some builders are considering investing their own money in projects just to keep their staffs working, Dimick said. "That's not something they normally do," he said. The pain from the downturn has rippled through all corners of the real estate industry, from interior decorators and carpet supply firms to the financially strongest development firms.

Two of Orange County's largest developers, Irvine Co. and Santa Margarita have both laid off employees and scaled back development plans in recent days. Kaufman Broad Home the state's largest single-family home builder, has laid off about one-quarter of its 650-person staff in California. "Tt's a general slowdown that A affects almost all the markets," according to Bruce Karatz, Kaufman Broad's chief executive officer. On a national level, the Com merce Department reported that construction of apartment buildings of five units or more fell to 156,000 in October, the lowest level since August, 1963, when those numbers were first tabulated separately.

The apartment construction market was a "disaster zone," said Villanucva of the National Assn. of Home Builders. The department also noted that the annualized pace of housing construction in the South fell to 395,000 units in October, the lowest level since October, 1981. The annualized rate of 266,000 homes built in the western United States was the lowest total since November, 1982. correction notice In today's Sears preprint, there Is an error on page 18 of the 20-page wrap.

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