This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Torts
Conversion
Breach of Fiduciary Duty

Richard Engelberg and Jim Enis v. Gary Leeds, et al.

Published: Jul. 15, 1995 | Result Date: Jun. 14, 1995 | Filing Date: Jan. 1, 1900 |

Case number: 659606 –  $4,085,990

Judge

Barbara T. Gamer

Court

San Diego Superior


Attorneys

Plaintiff

Nicholas A. Boylan
(Law Office of Nicholas A. Boylan, APC)

David P. King


Defendant

Robert S. Brewer Jr.
(Seltzer Caplan McMahon Vitek)

Richard E. Gattis

Timothy Kuncz

Eric Deller


Experts

Plaintiff

Douglas R. Anderson
(technical)

Defendant

Robert K. Athy
(technical)

Facts

This case arose out of fraud allegations in a $20,000,000 sale of the 5-star Westin Resort Hotel in Rancho Mirage, Palm Desert, California. Plaintiffs were Jim Enis and Richard Engelberg who previously held partnership interests in the resort hotel. In that June 1990 sale, partnership interests of Plaintiffs and Defendants were sold to a fellow corporate partner. That partner, a Defendant Japanese real estate developer and builder, settled out early for $200,000. The partnership's law firm, which was involved in the sale of Plaintiffs' partnership interests was also named as a Defendant. They settled out 2 weeks into trial for $775,000; Plaintiffs proceeded to trial against their former partners, Southern California real estate developer Gary Leeds and attorney David I. Sheinfeld.

Settlement Discussions

Plaintiffs contend they demanded $3,000,000 and Defendants offered $10,000.

Damages

$3,700,000 for moneys lost during the 1990 sale of the partnership interests which held the Westin Resort Hotel property.

Injuries

Lost investment interest in partnership, emotional distress.

Result

The jury found Leeds and Sheinfeld liable for fraud, breach of fiduciary duty, and conversion of funds.

Deliberation

6 days

Poll

9-3

Length

11 weeks


#78461

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390