Facts

Plaintiff Marie A. Keating, 84, and her late husband invested in real estate in the Culver City/West Los Angeles area over many years. Along with other family members and some family friends, plaintiff owned a fractional interest in several apartment buildings. These fractional interests were not of record. Plaintiff's nephew, defendant Patt Kaye, inherited a fractional interest in one such property in Culver City from his adoptive father.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that after defendant acquired his 65 percent interest in the 10-unit apartment building he attempted to seize plaintiff's 35 percent interest for himself. Plaintiff alleged that defendant obtained fraudulent quitclaim deeds from other fractional owners, even though their fractional interests had been relinquished years earlier. He mortgaged the property, taking out cash, and billed plaintiff for the cost of the new mortgage, even as he concealed the mortgage from her and released none of the cash it generated to her. Plaintiff also claimed defendant failed to account to plaintiff for her share of the laundry money generated by the property.

After reducing her income in this manner, plaintiff claimed, defendant took out a second, larger loan, again concealing it from plaintiff. Plaintiff claimed then defendant convinced her that he should take over management of the property, taking management fees for himself that also reduced plaintiff's income from the property. When plaintiff questioned her reduction in income, and on the eve of the second mortgage becoming known because of tax reporting requirements, defendant cut her income off entirely. Plaintiff claimed that defendant committed financial elder abuse relating to real estate when he stole her 35 percent share in the 10-unit apartment building and its income. Plaintiff also contended defendant and his property management company defrauded her and that he breached his fiduciary duties toward her. Plaintiff claimed she was entitled to a declaration of her 35 percent ownership interest and payment of 35 percent of the property's income. Plaintiff further claimed that defendant was obligated to pay her attorney fees because he committed elder abuse.

DEFENDANT'S CONTENTIONS:
Defendant contended he was the sole owner of the property and that plaintiff had defrauded him by claiming she owned an interest in the property, causing him to pay income to her to which she was not entitled.

Result

Defendant Kaye and his property management company settled with plaintiff for $1 million, which paid for plaintiff's 35 percent share of the 10-unit apartment building that was valued at $830,000, $40,000 in lost income from the property, and the remaining $130,000 for her attorney fees.

Other Information

The parties had two unsuccessful private mediations. A week prior to trial, the parties reached a settlement during a mandatory settlement conference before Magistrate Judge Patrick J. Walsh. FILING DATE: Aug. 27, 2013.