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 Leonards brothers knowingly and intentionally conspired to undermine Leonards authority at every step, and that their misconduct threatened the financial viability of the business, significantly impacting Leonards financial interests.
Leonards 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.
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Manatt, Phelps & Phillips, LLP is one of the nations 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 baseincluding Fortune 500, middle-market and emerging companies across a range of practice areas and industry sectors. For more information, visit www.manatt.com.
Angel Fahy 212.704.1994
Manatt, Phelps & Phillips, LLP