Facts

Plaintiff and cross-defendant Mahvash Mazgani ("Mahvash") is the paternal aunt of defendant and cross-complainant Kevin Moda ("Kevin"). Beginning around 2007, Kevin delivered to Mahvash certain monies in cash and checks, along with some jewelry (collectively, the "Assets") to be held in trust to provide Kevin with funds in his old age.
Mahvash and/or her family trust were the title owner(s) of two properties in Los Angeles; a condominium unit located at 141 S. Clark Drive, Unit 320, Los Angeles, CA ("Clark Property") and a multi-tenant property located at 1950 Massachusetts Avenue, Avenue, Los Angeles, CA ("Massachusetts Property"). Kevin believed that Mahvash purchased these properties using the Assets.
In 2009, a dispute arose between Mahvash and Kevin regarding the ownership of the two properties, and the assets, including the ownership of the money Mahvash deposited in an investment account ("Investment Account"). In October of that year, Mahvash sued Kevin and his companies, Hoffman La Brea, LLC and JKDM, LLC for declaratory relief, asking the court to declare her the sole owner of the Clark property and Massachusetts property and quiet title therein, and for Intentional Infliction of Emotional Distress.
Kevin subsequently counter-sued Mahvash and her daughters, Nazanin Mazgani and Neyaz Mazgani and their trust Wesson Trust, for breach of fiduciary duty, conversion, accounting, fraud, and Violation of Penal Code Section 496.

PLAINTIFF'S CONTENTIONS: Mazgani contended that her own trust, not Kevin, was the titleholder and owner of the Clark property and the Massachusetts property and neither Kevin nor his entities, Hoffman La Brea, LLC and JKDM, LLC had any interest in them. She also denied that an oral trust was ever created by Kevin and that she was ever the trustee for Kevin's trust. Mahvash claimed that she returned all of Kevin's assets to him, and only spent Kevin's money at his verbal direction/instruction and/or for his benefit. She also argued that the Investment Account was hers, that all of the investment money came solely from her, and that the profits made therein were hers alone.

DEFENDANT'S CONTENTIONS: Kevin contended that an oral trust existed with Mahvash as trustee, and that she had repeatedly breached her fiduciary duties as the trustee of his trust by: (1) commingling Kevin's money in various accounts, each also containing money from Mahvash and/or other people; (2) never inventorying the Assets or accounting for any charges and credits to his trust; and (3) Mahvash was misusing and/or misappropriating the trust's assets. Kevin also contended that: (i) except part of his jewelry, he never received any of his Assets back from Mahvash, and (ii) the Investment Account was funded with his money and therefore the investment and all profits made belonged to him, not Mahvash, and (iii) Mahvash, as Kevin's trustee failed to timely foreclose on certain deeds of trust recorded against the properties located 1117 S. Westlake Avenue Los Angeles, CA, 229 W. 25th Street, Los Angeles, CA, and 239 W. 25th Street Los Angeles, CA. Kevin further claimed that Mahvash purchased the Clark Property and the Massachusetts Property using funds from the commingled account containing trust assets, and therefore Kevin was the owner of the two properties.

Kevin argued that he was damaged over $11 million including, (i) failure to return cash and checks Kevin delivered to Mahvash, (ii) failure to return to Kevin two watches, (iii) Failure to pay the seed money and/or profits from the Investment Account, (iv) the lost value of the 3 Properties due to Mahvash's failure to foreclose the deeds of trust recorded against them, (v) ownership of the Clark Property and the Massachussettes Property, (vi) the rents collected from the Clark Property and the Massachuseets Property, (vii) Loan from Kevin to Mahvash, (viii) prejudgment interest at 10% per annum, and (ix) Treble damages under Penal Code section 496.

Result

After completion of the trial, the Court, taking the Jury's verdict as advisory, entered a judgment in favor of Kevin Moda and against Mahvash Mazgani in the amount of $33,229,583.55, (consisting of actual damages and prejudgment interest of $12,242,478.20, and $20,987,105.40 treble damages under Penal Code 496), plus the ownership of the Clark Property and the Massachusetts Property. The Court further ruled that Mahvash's daughters had no liability.

Other Information

Consolidated with BC622117

Length

approximately 12 weeks