L.A. Considers Record Payment in King Suit : Police: Council meets in private on proposal to settle brutality case for $5 million to $8 million.

As Rodney G. King cruised the city and awaited word on a car telephone, the City Council on Wednesday began debating behind closed doors a proposed multimillion-dollar settlement of a lawsuit he filed against the city after his beating by four Los Angeles police officers.

After the 90-minute secret session, council members could not reach agreement on a payment to King of $5 million to $8 million, which could represent the largest amount ever paid by the city in a police brutality case.

City Hall sources said, however, that some council members were leaning toward settling the suit in the hopes of avoiding more unrest in the city by putting an end to the potentially divisive litigation.

So optimistic were King and his lawyer of a settlement on Wednesday that they drove around the city expecting their car phone to ring with news that they should report to City Hall, where King would publicly speak about the need for continued peace.

“I want to get on with my life,” King said in an interview with The Times as he drove near Topanga Canyon. “It’s great, it’s fine if we can get this over with. I want to put the pressure behind me and try to live a normal life.”

Asked what he would tell the council if the agreement is adopted, King said:

“I would thank them for working as fast as they could and for getting this thing resolved. And I would thank them for showing some genuine concern.”

City officials would not discuss details of the proposed settlement, citing a gag order issued by U.S. District Judge Harry Hupp, who is overseeing the suit that was filed shortly after King’s March, 1991, beating.

But sources said the settlement calls for King to receive one lump sum payment followed by annual installments for the rest of his life. The sources estimated the value of the payment package to be between $5 million and $8 million.

That amount is far short of the $1 million that King’s attorney, Steven A. Lerman wanted for each of the 56 baton swings leveled at King, which could be seen on an amateur videotape of the incident.

City officials said they expect the council to take the matter up again in two weeks.

The settlement talks began shortly after the April 29 not guilty verdicts for the four officers who stood trial in Simi Valley on criminal charges of beating King. The 26-year-old motorist was stopped March 3, 1991, after a car chase that ended in Lake View Terrace. Under the eye of a video camera, he was beaten repeatedly by officers wielding batons, kicked and suffered numerous broken bones and cuts.

City Hall sources said the council appeared to be “moving toward” settling with King and that council members were driven largely by a desire to put the King incident behind the city and continue with efforts to rebuild following the riots that devastated wide sections of Los Angeles.

The unprecedented social and political ramifications surrounding the case have placed council members in an unusual position.

“The council is caught between two different responsibilities,” said one city official, who requested anonymity. “The first is to keep the peace and the other is to minimize the financial burden on the city. The two goals may be in conflict.”

Several council members argued Wednesday that an expeditious settlement would be preferable to another protracted trial, which they said could reignite civil unrest in the city.

“There was some concern of what the city risks if the settlement talks fail and the trial goes ahead,” said one official. “Could the daily exposure to the testimony result in more violence? There were several (council) members who were concerned about that.”

But some council members also questioned whether the proposed settlement amount might be too high. “They talked about whether this was the best deal or if it was too much money,” said the source.

At least one council member worried that the payout of a major settlement could set the city up for even greater losses in ongoing state budget talks. The official argued that a major expenditure by the city might be seen by state officials as evidence that the city is not as financially strapped as it has claimed.

But the general tenor of Wednesday’s secret debate--which one official described as “cool and rational”--was that an early settlement would be the best outcome.

“It was difficult for anyone to see any positive consequence of taking it to trial,” the official said.

When council members emerged from their meeting, they were besieged by television news crews and reporters who had begun packing the hallway outside the City Council chambers as rumors of the settlement spread. After the council members refused comment, reporters chased City Atty. James K. Hahn down a corridor. He would only confirm that the King case had been discussed.

King’s lawyer, Lerman, said he remains hopeful that the settlement can be approved.

“Ultimately, the client makes the decision, and Rodney King and I both agreed that on the terms of this settlement, more was to be gained by resolving the matter,” the lawyer said.

Lerman said he and King are willing to end the lawsuit for several reasons, including the fact that the case is on hold indefinitely in federal court.

He said he cannot move ahead with the suit until after Officer Laurence M. Powell is retried on one criminal charge and after the U.S. attorney’s office prosecutes the police for violating King’s civil rights or announces it will not seek criminal charges.

He said that scenario could mean he would not be able to try his case until late next year. Even then, he conceded, there is always the chance that a jury may side with the city, as occurred in Simi Valley.

“Today’s dollars,” he said, “are worth more than tomorrow’s speculation.”

Meanwhile, he said, some officials have told him they want King to appear in the council chambers when the settlement is announced as a show of solidarity for the city’s rebuilding effort.

“And they’re going to get him,” Lerman said. “There are many people, especially in the minority community, who have a great interest in Rodney King and this would alert the community and inform the citizens that Mr. King has found some justice.”

The previous record settlement against the Police Department of $5.5 million came last year after a former Los Angeles Coliseum groundskeeper was shot by an off-duty officer and left a paraplegic.