Legal News

Appeals court affirms $94M judgment against former Qualcomm director

By Richard Binder

The California Second Appellate District Court affirmed a judgment last Wednesday against former Qualcomm director and shareholder Neil Kadisha for mismanaging two trusts for a young widow's two children. The Court also added about $20 million in prejudgment interest to the judgment.

Retired Los Angeles Superior Court Judge Henry W. Shatford wrote in his initial decision that Kadisha was "no more than a common thief," and that he had misappropriated millions of dollars of trust funds, invested trust assets in a real estate venture in which he had a financial interest, sold trust assets in order to embezzle the funds, and failed to properly manage trust assets resulting in the loss of millions of dollars.

One of Kadisha's arguments was that many of those challenged transactions were in the trusts' best interests. Justice Walter Croskey, writing for the Court of Appeal, said a trustee cannot enter into a transaction solely for his personal benefit, even if it makes economic sense from the trust?s point of view.

The Encino-based law firm of Krane & Smith represented Dafna Uzyel and her children, Izzet and Joelle, and won a $94 million final judgment for compensatory and punitive damages.

Full story at Metropolitan News-Enterprise.

Full post as published by Legal Pad | LA on September 27, 2010 (boomark / email).