EX-LOVER OF DALLY TO TESTIFY; CERTAIN QUESTIONS OK'D.

Byline: Jesse Hiestand Daily News Staff Writer

Prosecutors in the pending murder trial against Michael Dally won the right Tuesday to present what prosecutors say is some of the most damaging circumstantial evidence linking Dally with the murder of his wife.

Superior Court Judge Frederick A. Jones ruled that prosecution witness Sallie Lowe, a former mistress of the defendant, can tell jurors of statements Dally made years ago, including an alleged desire to have his wife killed to avoid a costly divorce.

Lowe, a Santa Barbara resident, already has given much of that testimony at the trial of Diana Haun, Dally's longtime lover who was convicted recently of conspiring with him to kidnap and murder Sherri Dally.

But attorneys for Michael Dally, a 37-year-old grocery store manager from Ventura, have filed a motion to block Lowe from testifying on 20 separate topics. The attorneys claim all of those topics are irrelevant to the trial and highly prejudicial to the defendant, who faces a possible death sentence if convicted.

After a daylong hearing Tuesday, Jones ruled that five areas of Lowe's testimony are admissible in the Dec. 15 trial.

Permitted testimony includes Dally allegedly telling Lowe he felt like a trapped animal in his marriage and hated his wife so much that he wanted her dead. Lowe also is expected to tell jurors that Dally wanted his wife to ``disappear'' because he could not be prosecuted if the body was not found.

In addition, Lowe is expected to say Dally wanted his wife to die an extremely painful death by being stabbed and having the knife twisted in her flesh.

Dally allegedly talked of taking his wife on a second honeymoon to Big Sur where he planned to push her body over the cliffs. And he allegedly asked Lowe if she was capable of killing someone.

Jones accepted the admissibility of this evidence over objections of defense attorney Sharon Jones who said the statements were made four to seven years ago and were vague.

Deputy District Attorney Lela Henke-Dobroth said the statements were critical to the prosecution's case because they show Dally long had contemplated both a motive and means of killing his wife.

Sherri Dally's dismembered body was found in a remote ravine north of Ventura about a month after she was kidnapped by Haun on May 6, 1996. An autopsy showed she had been stabbed repeatedly.

``(Dally's) statements to Sallie Lowe about his hatred, lack of respect and desire to have Sherri disappear are extremely unique in the sense that most people who don't get along with their spouse get a divorce,'' Henke-Dobroth said. ``(Dally) was discussing with her a murder in a specific style.''

But the defense scored a partial success when the prosecution agreed not to ask Lowe about eight of the subjects on which she was supposed to testify.

They include Lowe's claims that Dally once choked her and, on another occasion, suggested she commit suicide, both allegedly so he could take control of her bank account. Prosecutors had hoped that piece of testimony would show Dally was willing to kill for financial gain, as he is charged in this case.

The prosecution also agreed not to ask Lowe whether Dally had bragged he was a pimp and drug dealer.

Prosecutors said they were withdrawing this evidence in anticipation of the defense mounting a blistering attack on Lowe's credibility and because other witnesses, including admitted prostitutes, can give similar testimony.

The remaining topics of Lowe's testimony are expected to be addressed at a hearing today.