Los Angeles Superior Court (Post Jury Trial Settlement)

Los Angeles Superior Court (Post Jury Trial Settlement)
Result: $1,600,000 to Client

Irvine Trial Lawyer Gregory G. Brown represented 10 tenants of an apartment complex in Beverly Hills, CA against the landlord/owner of the complex. After trial, bankruptcy and the setting of a new trial, Defendants increased their offer from $200,000 pre-trial to $1,600,000. The primary issues involved defendant’s 1) failure to abide by the Los Angeles Rent Stabilization Ordinances by failing to register the units and increasing rent above the allowed amounts, 2) breach of the implied warranty of habitability by maintaining the premises in substandard conditions, 3) improper withholding of security deposits, 4) breach of contract and 4) fraud.

The trial was bifurcated. Phase 1 was a Business & Professions Code Section 17200 Unfair Business Practices claim. Plaintiffs prevailed and obtained both an injunction and Court ordered restitution. In the Court’s ruling, it was noted that the defendant Kaye’s credibility was “zero”.

The Phase 2 jury trial began shortly thereafter. After jury selection and opening statements defendant Kaye filed for chapter 11 bankruptcy which resulted in a mistrial. Five months later, Plaintiffs were successful in obtaining relief from the automatic bankruptcy stay and obtained a new trial date with the same judge. As trial approached, defendants offered 4 times their highest previous offer, which resulted in a $1,600,000 settlement.