Judge confirms $13.5M jury verdict in Steinbeck estate case

A federal judge has denied defendants a new trial after they lost a $13.5 million verdict last year in the latest dispute over the estate of author John Steinbeck.

Steinbeck's third wife, Elaine Steinbeck, inherited the writer's intellectual property after his death in 1968. His sons challenged her control, which resulted in a 1983 settlement whereby they ceded their rights in exchange for greater royalties.

During a jury trial in Los Angeles last September, U.S. District Judge Terry J. Hatter Jr. ruled that John Steinbeck's daughter-in-law, Gail Knight Steinbeck, violated the 1983 deal by repeatedly interfering with the estate's projects, such as films based on his works, through lawsuits. Kaffaga v. Steinbeck et al., 14-CV08699 (C.D. Cal., Nov. 10, 2014).

Gayle Knight Steinbeck is the widow of the author's son, Thomas.

The jury deliberated for a little over three hours before finding in favor of the estate.

The estate sought a permanent injunction and declaratory relief, both of which were denied on Friday along with the defendant's request for a new trial.

"We are gratified with the judge's decision confirming the jury award and the estate's right to control the Steinbeck works," said Waverly Scott Kaffaga, executor of the estate.

"We are excited to move forward in bringing Steinbeck's works to stage and screen," Kaffaga added.

Kaffaga is Elaine Steinbeck's daughter and the inheritor of the estate.

In his denial of permanent injunctive relief for the estate, Hatter said that its counsel had to prove the monetary damages were insufficient compensation for future injury.

In his ruling, he wrote that the verdict was enough.

Hatter also wrote that his court was not the appropriate venue to issue such relief based on other lawsuits filed in different states that were part of the pattern of interference central to the trial.

In related disputes, the Southern District of New York and the 9th U.S. Circuit Court of Appeals have ruled for the estate in the past.

Susan J. Kohlmann of Jenner & Block LLP argued for the estate, and was not available to comment.

Matthew I. Berger of Matthew I. Berger Law Group PC represented the defendant and did not respond to a request for comment.