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October 2009

AT&T results top estimates with iPhone help

CHICAGO/NEW YORK (Reuters) –
AT&T Inc (T.N) reported stronger-than-expected third-quarter profit as the glitzy iPhone and low budget Tracfone service attracted a record number of wireless customers.

While AT&T faces home phone disconnections and a drop in business spending that led it to forecast a small drop in 2009 revenue on Thursday, strength in mobile is offsetting much of the pain. Shares climbed 1.5 percent.

"This is becoming a grindingly familiar pattern with strength in wireless and weakness in wireline," said Sanford C. Bernstein analyst Craig Moffett. Wireless makes up about 44 percent of AT&T's revenue.

While Apple Inc's (AAPL.O) iPhone is paying big dividends, some investors worry about AT&T's increasing dependency on it because its exclusive U.S. rights to sell iPhone is expected to expire next year.

But AT&T noted that the iPhone only accounted for about a third of new monthly-bill paying customers in the quarter.

"We have a legacy of having a great portfolio or products. We know that's going to continue after the iPhone is no longer exclusive to us," AT&T's mobile chief Ralph de la Vega said on a conference call with analysts.

AT&T, the first major U.S. mobile operator to issue results for the last quarter, reported 3.2 million iPhone activations for the period, more than expected. That helped it attract 2 million net new customers -- a third more than analysts had forecast -- with a big chunk of those being the valuable monthly-bill paying subscribers.

Aside from the iPhone surprise, Moffett said much of AT&T's customer growth was from Tracfone, an America Movil (AMXL.MX) unit that uses AT&T's network to sell prepaid services.

"It's a sign of the traction prepaid players are getting. Tracfone's AT&T plan appeals to extreme budget customers," he said.

Stifel Nicolaus analyst Chris King said AT&T's growth likely means the No. 2 U.S. mobile service took customers from bigger rival Verizon Wireless, a Verizon Communications (VZ.N) and Vodafone Group Plc (VOD.L) venture, and from Sprint Nextel (S.N). Verizon reports on October 26. and Sprint reports Oct 29.

LANDLINE BLUES

Analysts were far less impressed with AT&T's landline business. The company's enterprise revenue declined 10.4 percent and overall landline revenue fell 7 percent, reflecting budget constraints and job cuts in the corporate world.

The declines also point to the continued trend of households disconnecting their home phone lines in favor of wireless or cable services.

Chief Financial Officer Rick Lindner told analysts that the enterprise segment would improve over time.

"In business, which is probably the most challenged right now, again we feel very good about how we're positioned and we know it's going to improve as the economy improves," he said.

Overall, earnings totaled $3.2 billion, or 54 cents a share, compared $3.2 billion, or 55 cents a share, in the period a year ago. Analysts had expected 50 cents a share.

Revenue fell 1.6 percent to $30.9 billion, the company said, which was in line with the average estimate of analysts polled by Thomson Reuters I/B/E/S.

While iPhone activations have depressed wireless profit margins in the past, AT&T said fewer customer cancellations and operational improvements helped it post an operating margin of 24.6 percent, up from 23.8 percent in the second quarter.

AT&T is also looking high-speed Internet and its U-Verse television service for growth. It added 240,000 U-Verse customers in the quarter, bringing its total to 1.8 million.

Its results come on the same day the U.S. Federal Communications Commission staff recommended a controversial proposal for new Internet rules aimed at preventing operators from favoring some content providers over others on wired and wireless networks.

Operators have loudly protested the proposal, which would not become final until next year, saying it would impede telecom investment. In his keynote speech at a Chicago trade show, AT&T's operations chief John Stankey said the proposal made him feel like he was going to a funeral.

"I know something sad's about to happen here," he said.

Shares of AT&T climbed 0.5 percent to $26.08 early Thursday afternoon on the New York Stock Exchange.

(Reporting by Sinead Carew in Chicago and Paul Thomasch in New

York; Editing by Derek Caney and Richard Chang)

Radovan Karadzic to boycott start of genocide trial

THE HAGUE (AFP) –
Bosnian Serb wartime leader Radovan Karadzic announced Thursday he will boycott the start of his genocide trial next week complaining he has not been given enough time to prepare.

Karadzic, 64, faces life imprisonment on 11 counts of genocide, war crimes and crimes against humanity for his actions as Bosnian Serb president during the 1992-95 Bosnia war that claimed an estimated 100,000 lives.

The trial before the International Criminal Tribunal for the former Yugoslavia (ICTY) starts next Monday. But Karadzic claimed it was being rushed in a written submission to the court released Thursday.

"I hereby inform you that my defence is not ready for my trial that is supposed to begin as scheduled, on the 26th of October, and that therefore I shall not appear before you on that date," he said.

Karadzic made his latest pronouncement as Sweden said that another former Bosnian Serb president, Biljana Plavsic, will be freed from prison in Sweden on October 27, following an ICTY decision to grant her early release from her sentence ordered for persecuting Croats and Muslims.

Karadzic, who denies all the charges against him and insists on conducting his own defence, complained of "unequal, disproportionate and unjust circumstances" in preparing his case.

"No lawyer in this world could prepare a defence within this period of time," he asserted.

"This trial, being the most gigantic, should have been given at least the average time for preparation, which is almost two years."

Court spokeswoman Nerma Jelacic said the trial would start as scheduled.

"The trial hearing in the case of Radovan Karadzic will proceed on Monday, 26 October at 09:00 in Courtroom 1 as previously scheduled," she said in a statement.

The judges are expected to decide at that time the next steps in the proceedings.

A heavily-bearded Karadzic was arrested on a Belgrade bus in July 2008, posing as an alternative healer, after 13 years on the run.

He is accused of being one of the masterminds of a plan to "permanently remove" Bosnian Muslims and Croats from Serb-claimed territory in Bosnia-Hercegovina.

Along with his military henchman Ratko Mladic, who is still at large, he is especially blamed for the 44-month siege of Sarajevo that left 10,000 people dead and the July 1995 massacre of around 8,000 Muslim men and boys at Srebrenica.

Prosecution spokeswoman Olga Kavran said the team was "ready to start the trial".

"The most important thing is that the trial will take place, if it is not Monday, it will be later."

Karadzic has filed several requests to delay his trial, saying in September he needed 10 more months to study a million pages of prosecution evidence and the statements of hundreds of witnesses.

"My entering the proceedings under such circumstances would be my only crime, for which I would deserve contempt of all victims of the war and a curse of the generations to come," said his letter to the court.

Several other accused have boycotted their ICTY trials, though never with forewarning.

One of them, ultra-nationalist Serb leader Vojislav Seselj, refused to leave his cell for the November 2006 opening of his trial in November 2006, which was eventually delayed by a year.

Ex-Serb intelligence chief Jovica Stanisic was absent from the start of his trial on March 17, 2008, for reasons of ill health. His trial only started this June.

In Sweden, Plavsic, 79, was sentenced in February 2003 to 11 years behind bars for her role in a campaign of persecution against Croats and Muslims in the Bosnian war.

She is the highest ranking official of the former Yugoslavia to have acknowledged responsibility for atrocities.

W.H.: Cheney failed on Afghanistan (Politico)

A day after former Vice President Dick Cheney charged the Obama administration with "dithering" over its strategy for the war in Afghanistan, White House press secretary Robert Gibbs returned fire with guns blazing.
"What Vice President Cheney calls dithering, President Obama calls his solemn responsibility to the men and women in uniform," Gibbs said Thursday. "I think we've all seen what happens when somebody doesn't take that responsibility seriously."
Calling Cheney's comment "curious," Gibbs attacked the Bush administration for allegedly taking years to provide the support necessary for the war effort in Afghanistan.
"I think it's pretty safe to say that the vice president was, for seven years, not focused on Afghanistan," Gibbs said. "Even more curious given the fact that an increase in troops sat on desks in this White House, including the vice president's, for more than eight months."
Cheney offered his dim assessment of the Obama administration's approach to Afghanistan at a Wednesday dinner hosted by the Center for Security Policy, where the former vice president was present with the group's Keeper of the Flame award.
"Having announced his Afghanistan strategy last March, President Obama now seems afraid to make a decision, and unable to provide his commander on the ground with the troops he needs to complete his mission," Cheney said. "The White House must stop dithering while America’s armed forces are in danger. Make no mistake: Signals of indecision out of Washington hurt our allies and embolden our adversaries. Waffling, while our troops on the ground face an emboldened enemy, endangers them and hurts our cause."
The former vice president also addressed comments made last Sunday by Obama’s chief of staff, Rahm Emanuel, blaming the Bush administration for taking an inadequately active approach to shaping war strategy.
Cheney retorted that Bush administration officials were digging into "every aspect of Afghanistan policy" last fall and briefed the Obama transition team on their findings and recommendations.
"The new strategy they embraced in March, with a focus on counterinsurgency and an increase in the numbers of troops, bears a striking resemblance to the strategy we passed to them," Cheney said.
Cheney’s remarks had the West Wing "fired up" Thursday morning, according to one aide.
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Insurers say they still want health overhaul deal

WASHINGTON – Health insurers insist they're still committed to getting a health care overhaul bill passed this year. But all around Washington, people are wondering if — or when — the industry will change its mind and try to kill it.
The industry's chief lobbyist, Karen Ignagni, said Thursday that insurers "can continue to make a major contribution" to the overhaul effort. She told a gathering of the trade group America's Health Insurance Plans: "Yes, we can achieve reform."
But her comments came in the midst of mounting tensions between her industry and majority Democrats and on the heels of months in which President Barack Obama and Democratic leaders have painted insurers as a chief villain in the health overhaul effort.
"They want us where they've put us right now, which is as an enemy," Steven Champlin, a former House Democratic aide-turned-lobbyist advising the insurance group, told those at Thursday's conference. Even so, he added, "You have to stay focused on being part of the process and part of the solution."
Some in Washington, though, are not sure the insurance industry will stay on that path much longer. They argue that Democrats' nonstop attacks make it obvious the industry has already been carved out of the legislative process — unlike the pharmaceutical industry, hospitals and doctors, with whom lawmakers are working.
Insurers must decide whether to continue bargaining "or whether they are going to fight in the trenches for what they think is right," said Robert Rusbuldt, who as president of the independent insurance agents' trade group has clashed at times with insurance companies. "That is not an easy decision. Some scars have been opened on both sides, and you can make an argument that it doesn't make sense to go back to the negotiating table."
Insurers are unhappy because they say the Senate Finance Committee version of the legislation doesn't compel people strongly enough to buy insurance — a key tradeoff for the industry's agreement to sell policies to those who are already sick. It also objects to billions in new taxes on insurers.
The industry released two reports earlier this month saying families' insurance costs would rise under provisions of a version of health overhaul drawn up by the Finance committee. Ignagni's group also aired a TV ad in six states saying older peoples' benefits under Medicare Advantage, a privately administered form of the program, would be threatened.
Firing back, Democrats have begun pushing legislation through Congress erasing insurers' federal antitrust exemption. House Speaker Nancy Pelosi, D-Calif., said Thursday she'll include the provision in her chamber's health overhaul bill, which she and other Democratic leaders are still crafting.
The industry's rhetoric in Washington, such as Ignagni's remarks on Thursday, is "accommodating," said Ron Pollack, who heads the liberal Families USA. "But outside the Beltway, where substantial resources are being spent, those resources are clearly undermining getting health care reform this year."
Should the insurance industry opt for a broader attack, it would not take long to launch a TV ad campaign.
"I'm sure they have contingency plans," said Evan Tracey, president of the Campaign Media Analysis Group of Arlington, Va., which monitors political advertising. "I think they can bring all the resources they would need to bring to bear to have a really big footprint, as far as media goes."
Of the $130 million spent so far this year on TV ads in the health care fight, just $3 million has come from insurance groups, Tracey said.
In contrast, $27 million has been spent so far attacking the insurance industry, he said, by labor, progressive and other groups. Continuing that theme, several hundred demonstrators marched in front of the hotel where the insurers were holding their convention Thursday, chanting and carrying signs such as, "Big Insurance, Sick of It."
Several lobbyists, speaking on condition of anonymity to avoid risking their relationship with the insurance group, said they understood it was considering a TV ad campaign costing $100 million or more — a huge sum. The insurers' spokesman, Robert Zirkelbach, said "we know absolutely nothing" about such an effort.
Scott Styles, the insurance group's senior vice president for federal lobbying, said if needed the insurance association could team with other business organizations like the U.S. Chamber of Commerce, which has criticized many aspects of Democrats' health effort and has several insurance companies as members.
But it will likely be harder for the insurance industry to find business allies this year than it was in 1993 and 1994, when the insurers — allied with other health care providers and business groups — helped kill then-President Bill Clinton's health revamping effort.
This year, providers like drug companies and hospitals have been working for an overhaul after reaching agreements with the White House and Senate Finance Committee Chairman Max Baucus, D-Mont., to limit the cuts imposed on their industries.

Karzai likely to win second Afghan vote: Clinton

WASHINGTON (AFP) –
Afghan President Hamid Karzai will likely emerge the winner even if his country's election authorities call a second round in contested polls, US Secretary of State Hillary Clinton said Friday.

The election commission is expected to make an announcement soon on Afghanistan's second-ever presidential vote on August 20, in which Western observers allege that widespread fraud inflated Karzai's showing.

"It is likely that they will find that President Karzai got very close to the 50-plus-one percent" needed for an outright victory, Clinton told CNN.

"So I think one can conclude that the likelihood of him winning a second round is probably pretty high," she said.

The top US diplomat said she had no inside knowledge on what the election commission would announce but called for the Afghan leadership to follow its recommendations.

Clinton said the run-off could take place quickly.

"The ballots are printed and certainly some planning has been done. It could absolutely be carried out, within the next few weeks, before the snows come," she said in the interview.

Karzai has bristled at EU observers' charges that one quarter of the votes cast could be fraudulent, fueling tension between the Afghan leader and Western nations that backed him after the 2001 overthrow of the Taliban regime.

But Karzai's ambassador to Washington, Said Tayeb Jawad, said Thursday that a run-off was likely, the first time a member of the Afghan leader's inner circle has publicly acknowledged the possibility.

The election debacle comes as President Barack Obama's administration mulls sending thousands more troops to Afghanistan to battle a Taliban insurgency.

But Clinton said the possibility of a second round would not delay the decision.

"I think that we have taken into account every possible outcome as we have engaged in our strategic analysis," she said.

"I think the president is expecting to make a decision on his own timetable, when he is absolutely comfortable with what he believes is in the best interest of the United States," she said.

White House spokesman Bill Burton said separately: "Whether or not there's a runoff, and the final results, will be factored in just like everything else happening in the region into the final assessment of our strategy there."

He said the White House would stay neutral between Karzai and his main rival, former foreign minister Abdullah Abdullah.

"The legitimacy of this election and of the leadership of Afghanistan is in the hands of the Afghan people," Burton told reporters on Air Force One as Obama flew to Houston, Texas.

"We don't have any favorites in this race; we're just waiting for the final results," he said.

Obama has had a noticeably cooler relationship with Karzai than former US president George W. Bush, with administration officials privately alleging corruption in the Afghan leader's ranks.

Serbs prepare talks on shared Bosnian government

BELGRADE (AFP) –
Representatives of Bosnian Serb parties on Friday met Serbia's President Boris Tadic in Belgrade ahead of talks aimed at strengthening Bosnia's central government, an official from his cabinet said.

The meeting, confirmed to AFP by the official, lasted for several hours until late on Friday although no statement was released.

According to Beta news agency, which quoted a source close to the participants, Tadic told Bosnian Serb leaders that Serbia would not interfere into the negotiations on Bosnia's future led by US and EU officials.

Leaders from Bosnia's Serb, Muslim and Croat communities met in Sarajevo on October 9 at a summit organised by the European Union and Washington and further talks are scheduled for October 20.

Both Swedish Foreign Minister Carl Bildt, whose country currently holds the EU presidency, and US Deputy Secretary of State Jim Steinberg chaired last week's meeting.

On Friday Tadic "indirectly told the (Bosnian Serb) officials that he expected them to reach a compromise with representatives of the other two nations (Muslim and Croatian one) in Bosnia that would enable the country's further progress towards EU membership," the same source said.

Prior to the meeting, Tadic said it was "an opportunity to discuss an initiative in Butmir that should be decisive for Bosnia's European integration."

Earlier, Bosnian-Serb premier Milorad Dodik told Srna news agency he would present "his party's position" to Tadic on the European Union's and Washington's wish to see stronger central institutions in Bosnia.

"Dodik was likely to refuse proposals expected to be offered by US and EU officials," Beta's source said after the meeting.

Bosnia's 1992-1995 war, sparked by ethnic tensions surrounding its break from the former Yugoslavia, left at least 100,000 people dead and more than two million homeless.

Under the Dayton peace accords that ended the war, Bosnia has since consisted of two semi-independent entities -- the Serbs' Republika Srpska and the Muslim-Croat Federation -- linked with weak central institutions.

In a bid to make the country more functional and bring it closer to Europe the international community has been insisting on strengthening the central institutions at the expense of the ethnic entities and reforming the constitution.

The dispute underlines deep divisions over how to organise the country, with Serbs insisting on retaining autonomy while Muslims and Croats favour a stronger central government.

Texas police find woman, 45, living with corpse

BIG SANDY, Texas – A 45-year-old Texas woman has been committed for mental evaluation after authorities say she lived in an apartment for a week with her dead boyfriend's body. The Tyler Morning Telegraph reported Big Sandy police were flagged down by a man Friday who reported a stench coming from his sister's apartment.
Once inside, police found 50-year-old William Drake dead on a couch. From the condition of the corpse, police believe he had been dead about a week.
According to police Lt. Van Burr, the woman said Drake "didn't want to leave the apartment."
Burr said Drake died of natural causes and had recently stopped his dialysis treatments. He said Drake had lived for 10 years with the woman, who had been hospitalized for mental illness before. Burr declined to reveal her name.
Big Sandy is about 100 miles east of Dallas.
___
Information from: Tyler Morning Telegraph, http://www.tylerpaper.com

Father of Anna Nicole's daughter due to testify

LOS ANGELES – Larry Birkhead, who gained fame in a custody battle over Anna Nicole Smith's daughter, was due to testify in the preliminary hearing for two doctors and the man who once fought him for custody of little Dannielynn.
Howard K. Stern, the boyfriend-lawyer who claimed he was the baby's father, lost that battle when Birkhead proved by DNA evidence that the little girl was his. Now Stern sits in the defendant's chair before a judge who will decide if he and the two doctors must stand trial in Smith's drug overdose death.
Dr. Khristine Eroshevich, Dr. Sandeep Kapoor and Stern are not charged with killing her but with conspiring to illegally provide her with controlled substances.
In testimony by Smith's former bodyguard, Stern was portrayed as a devoted companion to the celebrity model who went through a "commitment ceremony" with her five months before she died.
Witness Maurice Brighthaupt said he was present at the ceremony on a boat off the Bahamas on Sept. 28, 2006, the same month that Smith gave birth to her baby and saw her only son Daniel die.
"It was a unification through the eyes of God is how they put it," Brighthaupt said.
But Brighthaupt also offered damaging testimony against both Stern and Eroshevich saying he witnessed them injecting Smith with medication. It was the first time he has made such an allegation and Stern's attorney Steve Sadow attacked his account as false. He showed that Brighthaupt had given different stories to cable TV outlets after Smith's death in return for payments of $150,000 for his interviews.
Brighthaupt, who spent two full days on the witness stand, was to wind up his testimony Friday morning before Birkhead was due on the witness stand.
He has not commented on Birkhead's role in Smith's life except to say that he was with Smith in May of 2004 when she met Birkhead at the Kentucky Derby and began dating him.
Sadow indicated outside court he was looking forward to Birkhead's testimony.
"I think Larry's going to do his best to tell the truth," said Sadow. "If he does, he'll be very helpful to Howard."
Under Sadow's cross-examination, Brighthaupt said that many of the things he told his TV interviewers were lies, crafted to protect Smith's reputation. Among them was his statement that he never saw her take illicit drugs and never saw the drug methadone in her house. He also said then that Smith was in control of everything including decisions about her medication. He said now that was a lie.
"I had a lot of time to think about everything I said in the past and I'm trying to rectify everything now," he said.
He also acknowledged he had tried to sell a book on the case but the publisher rejected his manuscript calling it "too boring."
Thursday's court session was marked by Superior Court Judge Robert J. Perry's decision to bar the prosecution from inquiring about an alleged sexual relationship between Smith and Eroshevich who had been her longtime psychiatrist and friend.
"This is a preliminary hearing," Perry told the prosecutors. "It's not a trial. It's to determine if there's probable cause for a trial. I'm just not going to turn this into some circus sideshow."
Perry said the issue could be raised again at trial before another judge, who could then rule on its relevance.
Outside court, attorney Adam Braun, who represents Eroshevich, called the sexual allegation a distraction and said the judge made the right call in barring the testimony.

Search warrants executed in the case and released a few weeks ago described photos of Smith and Eroshevich in a bathtub in a sexual situation.

Brighthaupt offered no testimony against Kapoor and said he had not heard of him. Kapoor's lawyer asked him no questions.

___

Associated Press writer Anthony McCartney contributed to this report.

Rockefeller Says Democrats Can’t Tailor Health Care to Snowe

Oct. 16 (Bloomberg) -- Senator Jay Rockefeller said
Democrats shouldn’t tailor a health-care overhaul to the wishes
of Republican Senator Olympia Snowe and need to push for
legislation that includes a government-run insurance program.

“We can’t sort of hedge and say ‘what’s Olympia going to
do,’” Rockefeller, a West Virginia Democrat, said in an
interview on Bloomberg Television’s “Political Capital with Al
Hunt,” airing this weekend. “We’ve got to decide what we
want.”

Snowe, who this week voted for an $829 billion finance
committee bill, is the only Republican to back an overhaul
plan. Keeping the Maine lawmaker on board as the legislation
moves through the Senate may help attract Democrats facing re-
election battles and possibly other Republicans.

Senate Majority Leader Harry Reid is trying to craft a
final measure that satisfies conflicting demands of his party,
such as whether to include a government-run plan.

“If we calculate so finely and so exquisitely, we’re
going to lose our leadership and our momentum,” said
Rockefeller, 72. “And right now yes, we did get her vote. As
she said yes for this one, it doesn’t mean for the next round
of votes.”

Rockefeller said Reid’s legislation would have to include
a government plan, or public option, to compete with private
companies, such as Indianapolis-based WellPoint Inc.

Counterweight to ‘Malevolence’

“There has to be a counterweight to the malevolence of
the insurance industry,â€

Snowe, who is being courted for her support on the health
overhaul by the White House, has urged President Barack Obama
to drop the public option and instead suggested a so-called
trigger that would activate a public option only if private
insurers fail to make coverage affordable.

While Rockefeller, a member of the finance committee,
voted for the panel’s plan, he was critical of it because it
failed to include the public option.

He and other Democrats say the public option is the best
way to lower costs so more uninsured Americans can afford
coverage. The finance committee measure instead offers $6
billion in seed money for nonprofit insurance cooperatives.

“There were 30 Democrats that signed a petition asking
Harry for a public option,â€

Negotiating Rates

Reid is “more likelyâ€

That proposal would be similar to an amendment offered by
Senator Chuck Schumer, a New York Democrat, that was rejected
by the finance panel.

Rockefeller also said he favors greater checks on
insurance companies. He said he would introduce an amendment
requiring insurers to spend 85 percent of their revenue on
health care for consumers.

“This is in a couple of the House bills,” he said. “I
think it’s a discipline which works very, very well.”

Rockefeller has expressed concern over a plan to impose a
tax on insurance companies’ most-expensive policies because it
would affect coal-miners and other working-class Americans. The
finance committee bill is the only one of five overhaul
versions passed by House and Senate panels to include the levy.

The 40 percent excise tax, which would begin in 2013,
would be placed on insurers of employer-sponsored health plans
with benefits exceeding $8,000 for individual coverage and
$21,000 for families. Thresholds are increased by $1,850 and
$5,000 for retirees 55 and older and for employees in union-
heavy industries.

Antitrust Exemption

Rockefeller also said he would back a plan to repeal the
insurance industries’ antitrust exemption to spur competition
and control costs, in separate legislation.

Christine Varney, head of the U.S. Justice Department’s
antitrust division, told the Senate Judiciary Committee this
week that ending the exemption would bolster competition,
though she stopped short of calling on Congress to act.

Rockefeller said he’s optimistic that health-care
legislation would pass, saying the odds are “pretty good”
that Obama will sign a bill this year.

To contact the reporter on this story: Catherine Dodge in
Washington at cdodge1@bloomberg.net

Father of Anna Nicole's daughter due to testify

LOS ANGELES – Larry Birkhead, who gained fame in a custody battle over Anna Nicole Smith's daughter, was due to testify in the preliminary hearing for two doctors and the man who once fought him for custody of little Dannielynn.
Howard K. Stern, the boyfriend-lawyer who claimed he was the baby's father, lost that battle when Birkhead proved by DNA evidence that the little girl was his. Now Stern sits in the defendant's chair before a judge who will decide if he and the two doctors must stand trial in Smith's drug overdose death.
Dr. Khristine Eroshevich, Dr. Sandeep Kapoor and Stern are not charged with killing her but with conspiring to illegally provide her with controlled substances.
In testimony by Smith's former bodyguard, Stern was portrayed as a devoted companion to the celebrity model who went through a "commitment ceremony" with her five months before she died.
Witness Maurice Brighthaupt said he was present at the ceremony on a boat off the Bahamas on Sept. 28, 2006, the same month that Smith gave birth to her baby and saw her only son Daniel die.
"It was a unification through the eyes of God is how they put it," Brighthaupt said.
But Brighthaupt also offered damaging testimony against both Stern and Eroshevich saying he witnessed them injecting Smith with medication. It was the first time he has made such an allegation and Stern's attorney Steve Sadow attacked his account as false. He showed that Brighthaupt had given different stories to cable TV outlets after Smith's death in return for payments of $150,000 for his interviews.
Brighthaupt, who spent two full days on the witness stand, was to wind up his testimony Friday morning before Birkhead was due on the witness stand.
He has not commented on Birkhead's role in Smith's life except to say that he was with Smith in May of 2004 when she met Birkhead at the Kentucky Derby and began dating him.
Sadow indicated outside court he was looking forward to Birkhead's testimony.
"I think Larry's going to do his best to tell the truth," said Sadow. "If he does, he'll be very helpful to Howard."
Under Sadow's cross-examination, Brighthaupt said that many of the things he told his TV interviewers were lies, crafted to protect Smith's reputation. Among them was his statement that he never saw her take illicit drugs and never saw the drug methadone in her house. He also said then that Smith was in control of everything including decisions about her medication. He said now that was a lie.
"I had a lot of time to think about everything I said in the past and I'm trying to rectify everything now," he said.
He also acknowledged he had tried to sell a book on the case but the publisher rejected his manuscript calling it "too boring."
Thursday's court session was marked by Superior Court Judge Robert J. Perry's decision to bar the prosecution from inquiring about an alleged sexual relationship between Smith and Eroshevich who had been her longtime psychiatrist and friend.
"This is a preliminary hearing," Perry told the prosecutors. "It's not a trial. It's to determine if there's probable cause for a trial. I'm just not going to turn this into some circus sideshow."
Perry said the issue could be raised again at trial before another judge, who could then rule on its relevance.
Outside court, attorney Adam Braun, who represents Eroshevich, called the sexual allegation a distraction and said the judge made the right call in barring the testimony.

Search warrants executed in the case and released a few weeks ago described photos of Smith and Eroshevich in a bathtub in a sexual situation.

Brighthaupt offered no testimony against Kapoor and said he had not heard of him. Kapoor's lawyer asked him no questions.

___

Associated Press writer Anthony McCartney contributed to this report.