Woman Loses Bid in Fight Over Lottery : Courts: Judge refuses to freeze payout of $12.4-million winnings to her son and daughter-in-law.

SANTA ANA —  A Laguna Niguel woman who claims she was coerced into signing over $12.4 million in California lottery winnings to her son and daughter-in-law probably will lose her case at trial, a judge said Friday.

Orange County Superior Court Judge Dennis Keough was ruling on Joan F. Markham’s request that he freeze monthly payments to her son and daughter-in-law that amount to $631,000 a year for 20 years. To do that, Keough said, he first had to decide whether it was likely she ultimately would win. At this point, he said, she hadn’t offered enough proof of that.

The fight pits 66-year-old Markham against her son, Brian D. Markham of Newport Beach, and Nicole Markham, 41, of Coto de Caza. The younger Markhams are divorcing.

Nicole Markham, who was the only member of the family to come to court Friday, smiled at the judge’s ruling and said outside the courtroom that she was relieved by the turn the case has taken, but saddened by her family’s legal squabbling. She and her husband have three children 5 and younger.

“To me, the whole situation is very, very sad,” Nicole Markham said. “She’s the grandmother of my children and he’s their father, and it’s very sad that they had to stoop to this level.” Attorneys for Joan Markham left the courthouse without comment and could not be reached later.

Brian Markham’s attorney said his client has taken no position on his mother’s suit.

“He’s under a lot of stress as a result of all the litigation,” said attorney Milford Dahl Jr.

The elder Markham, who is a British subject and lives in Orange County on an extended visa, contends in a lawsuit filed in July that the couple coerced her into signing over her 1994 lottery winnings last fall by threatening to bar her grandchildren from visiting her and to have her deported. She is suing to have all the winnings returned to her.

But in a countersuit, Nicole Markham she claims that her husband was the real winner of the lottery. She said Brian Markham gave his winning ticket to his mother and allowed her to claim the money, to keep Nicole Markham from getting her fair share in the pending divorce. Nicole Markham’s countersuit against her mother-in-law and husband filed Thursday accuses them of fraud and conspiracy.

In support of her countersuit, Nicole Markham filed statements this week from Brian Markham’s tax preparer and two friends in which they say that Brian Markham admitted being the winner of the lottery, said her attorney, Tom Malcolm of Jones, Day in Irvine.

In a declaration, Patrick Hawkes, a friend, said Markham “was adamant that he was ‘not going to give Nicole a . . . penny.’ ”

No new dates have been set in either case, but Malcolm said Joan Markham’s suit is likely to go to trial this year.