Ab-initio density functional calculations on explicitly doped La(2-x)Sr(x)CuO4 find doping creates localized holes in out-of-plane orbitals. A model for superconductivity is developed based on the assumption that doping leads to the formation of hole
s on a four-site Cu plaquette composed of the out-of-plane A1 orbitals apical O pz, planar Cu dz2, and planar O psigma. This is in contrast to the assumption of hole doping into planar Cu dx2-y2 and O psigma orbitals as in the t-J model. Interaction of holes with the d9 spin background leads to chiral polarons with either a clockwise or anti-clockwise charge current. When the polaron plaquettes percolate through the crystal at x~0.05 for LaSrCuO, a Cu dx2-y2 and planar O psigma band is formed. Spin exchange Coulomb repulsion with chiral polarons leads to D-wave superconductivity. The equivalent of the Debye energy in phonon superconductivity is the maximum energy separation between a chiral polaron and its time-reversed partner. An additive skew-scattering contribution to the Hall effect is induced by chiral polarons and leads to a temperature dependent Hall effect that fits the measured values for LaSrCuO. The integrated imaginary susceptibility satisfies omega/T scaling due to chirality and spin-flip scattering of polarons along with a uniform distribution of polaron energy splittings. The derived functional form is compatible with experiments. The static spin structure factor is computed and is incommensurate with a separation distance from (pi,pi) given by ~(2pi)x. Coulomb scattering of the x2-y2 band with polarons leads to linear resistivity. Coupling of the x2-y2 band to the undoped Cu d9 spins leads to the ARPES pseudogap and its doping and temperature dependence.
