A federal court order against Smith is expected.

Judge Harry Hupp today is expected to order Smith International to pay $204.6 million to settle its long-running legal battle with archrival Hughes Tool of Houston. In a hearing in Los Angeles, Hupp orally ordered the Newport Beach-based company to pay Hughes $70.1 million in interest on $134.5 million in royalties as a result of its infringement of a patent on a seal used in oil drilling bits. Because Smith last week filed for protection from creditors under federal bankruptcy laws, however, there will be an automatic stay of the judgment. Separately, First Fidelity Bank of Newark, N.J., clarified its relationship with Smith. While the bank is listed in court documents as a Smith creditor, the bank said it is actually the trustee for $77 million in debentures issued by Smith.