Business Notes Computers

In 1976 William Millard borrowed $250,000 to expand an Oakland-based computer company called IMSAI. The lender, a Boston-area investment firm named Marriner & Co., got a note that was convertible into 20% of the stock in Millard's company. Last week a California jury ordered Millard to pay up, and the verdict may cost him $525 million, or 2,100 times the original loan. Reason: Millard built a sister company of IMSAI into ComputerLand, the giant retail computer chain (1984 revenues: $1.4 billion), and 20% of ComputerLand's stock is worth a fortune.

If the verdict stands, the money will go to Micro/Vest, a California-based investor group led by John Martin-Musumeci, a former ComputerLand employee. Formed in 1981, Micro/Vest paid Marriner $1.9 million for Millard's note, before ComputerLand shares zoomed in value. Marriner sold to avoid a legal battle after Millard disputed its claim to ComputerLand stock.

) Micro/Vest was more than willing to fight. In last week's first round, the jury awarded Micro/Vest the ComputerLand stock it sought, which may be worth $400 million. It also ordered Millard, who plans to appeal the ruling, to pay Micro/Vest $125 million in punitive damages for trying to renege on his debt.