Manatt Secures $31M Judgment on Behalf of Client in Breach of Fiduciary Duty Trial
LOS ANGELES--(BUSINESS WIRE)--Mar 15, 2019--Manatt, Phelps and Phillips, LLP, a multidisciplinary, integrated national professional services firm, secured a significant trial victory on behalf of client Leonard Schrage following a two-month bench trial in Los Angeles Superior Court. The Manatt team was led by litigation partner and lead trial counsel Steven M. Goldberg and included partners Ivan L. Kallick, Richard J. Maire, Benjamin G. Shatz and senior associate Kishan H. Barot.
Leonard Schrage was awarded approximately $31 million in compensatory and punitive damages, plus nearly $1 million in legal fees, after the court found his brothers had breached their fiduciary duties related to the automobile dealerships the three inherited from their father. The court determined that Leonard’s brothers “knowingly and intentionally conspired to undermine Leonard’s authority at every step,” and that their misconduct threatened the financial viability of the business, significantly impacting Leonard’s financial interests.
“Leonard’s goal has always been to preserve the long-standing success of the dealerships he inherited from his father,” said Manatt partner Steven Goldberg. “We are thrilled to have secured this victory on his behalf.”
The trial lasted from April 4, 2018 to June 6, 2018. The court determined that, due to the breach of fiduciary duty, damages to Leonard totaled $21 million. In addition, the judge awarded Leonard a total of $10 million in punitive damages, $5 million against each defendant.
About Manatt, Phelps & Phillips, LLP
Manatt, Phelps & Phillips, LLP is one of the nation’s leading law and consulting firms, with offices strategically located in California (Los Angeles, Orange County, Palo Alto, San Francisco and Sacramento), New York (New York City and Albany), Chicago and Washington, D.C. The firm represents a sophisticated client base—including Fortune 500, middle-market and emerging companies — across a range of practice areas and industry sectors. For more information, visit www.manatt.com.
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Manatt, Phelps & Phillips, LLP
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Manatt, Phelps and Phillips, LLP
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PUB: 03/15/2019 03:59 PM/DISC: 03/15/2019 03:59 PM