Facts

In the 1970s, Martin and Bessie Warren began purchasing residential properties and apartment buildings. As Martin and Bessie aged, they began to delegate management duties and responsibilities to their three adult children, Lauri Shahar, Scott Warren, and Bruce Warren. Bruce and Scott were attorneys, and they provided advice on tax planning and property matters. Neither son ever advised their parents to seek independent counsel regarding any property transfers.

In 2012, Scott suggested Martin and Bessie could reduce their estate taxes by creating limited liability companies for the individual properties and gifting the companies to their children. As a result, Martin and Bessie signed deeds transferring their properties, but retaining fractional interest for security and retirement income. In 2019, however, Scott advised Martin and Bessie to gift all remaining ownership interests to the children to avoid taxes.

In 2022, a family dispute occurred over a condominium gifted to Lauri, and the family relationship deteriorated. On August 15, 2022, Martin and Bessie Warren, 89 and 92 years old, filed suit against Scott and Bruce in Los Angeles Superior Court.

PLAINTIFFS' CONTENTIONS: Martin and Bessie contended that their sons had engaged in elder abuse, fraud, negligent misrepresentation, and breach of contract. Specifically, they contended that their sons had promised the LLCs still belonged to Martin and Bessie after the 2019 transfers, and that they would provide all money Martin and Bessie requested at any time for any reason. Instead, Martin and Bessie claimed that Scott and Bruce had no intention of providing them with the support they needed, and that Scott and Bruce had defrauded them out of properties worth almost $20 million.

DEFENDANTS' CONTENTIONS: Scott and Bruce Warren denied any wrongdoing or liability and all of the plaintiffs' material allegations. They contended that Lauri had exerted undue influence and control over Martin and Bessie, and that she was the one who had orchestrated the lawsuit to avoid paying Bruce and Scott for the gifted condominium.

Settlement Discussions

A mediation was held with the Hon. Thomas Wilhite of ADR, Inc. Martin and Bessie initially demanded $6 million to settle their claims, but reduced their amount to $5.5 million. Scott and Bruce collectively sought to offer $3 million. The trial judge, the Hon. Timonthy Patrick Dillon, presided over a 3-day Mandatory Settlement Conference before a jury was selected. Plaintiffs reduced their $6 million demand to $5 million; defendants offered $2.5 million with an indication they would pay $3 million.

Damages

Plaintiffs sought over $4 million.

Result

A verdict was returned in favor of Scott and Bruce, and Scott was awarded $600,000 for his cross-complaint against Lauri Shahar.

Deliberation

The jury deliberated for two days.

Poll

As to claims against Scott Warren: 9-3 for Financial Elder Abuse, 11-1 as to Fraud, 10-2 on Negligent Misrepresentation. As to Defendant Bruce Warren 12-0 on Financial Elder Abuse and 11-1 on Breach of Contract. As to Defendant Scott Warren as Trustee of the Hard Habit Trust 10-2 on Breach of Contract as to Punitive Damages 11-1. As to both Defendants and then 11-1 on the Cross-Complaint of Scott Warren against Lauri Shahar.

Length

Trial lasted 11 days.