Appeals Court Affirms Decision to Overturn $17.3 Million Damage Award in West Knoll Apartment Fire

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A state appeals court panel today affirmed a trial judge’s decision to overturn a jury’s verdict directing former Clippers owner Donald Sterling to pay an actress $17.3 million stemming from a fire at one of his apartment buildings in West Hollywood.

Robyn Cohen
Robyn Cohen

The three-justice panel of the 2nd District Court of Appeal rejected arguments by attorneys for Robyn Cohen that Los Angeles Superior Court Judge William MacLaughlin erred when he ordered a complete new trial of the case except for her claim for intentional infliction of emotional distress, which he dismissed.

“If there are any doubts on the subject, a complete new trial must be held if one party would be prejudiced by a limited retrial,” Justice Paul Turner wrote in the 30-page, unanimous decision. “The damages verdict does not reveal what conduct the jury found was the basis for the compensatory and punitive damages awards.”

In December 2012, a jury found Sterling liable to Cohen for breach of contract, breach of the warranty of habitability and intentional infliction of emotional distress and awarded her $2.3 million in compensatory damages. The panel also found that Sterling and his employees at the West Hollywood property at 888 West Knoll Dr. acted with malice toward Cohen, triggering a punitive damages phase of the trial in which she was awarded an additional $15 million.

Cohen said she lost most of her personal property in the Sept. 28, 2009, fire and maintained that the building had an inadequate fire detection system.

Both sides appealed MacLaughlin’s February 2013 post-trial ruling. He ordered a retrial on all issues, stating in a 19 page decision that there was insufficient evidence to show that Sterling deliberately caused emotional distress to Cohen before or after the fire.

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The judge granted Sterling a post-trial judgment on Cohen’s claim for intentional infliction of emotional distress. He also found that that the punitive damage award of $15 million was excessive, reducing the amount to $5.8 million and the overall award from $17.3 million to $8.1 million.

MacLaughlin declined to give Sterling a judgment on Cohen’s claim for breach of the implied warranty of habitability.

Cohen asked that the original verdict be reinstated by the Court of Appeal with a finding that the punitive damages award was not excessive.

Sterling’s appeal asked for judgment in his favor on the punitive damages claim. His attorneys noted that $2 million of the $2.3 million in compensatory damages Cohen was awarded was to compensate her for her pain and suffering. But the appellate court panel found that the punitive damages issue also should be retried.

Cohen is perhaps best known for her topless role in Wes Anderson’s comedy-drama “The Life Aquatic with Steve Zissou,” which starred Bill Murray and Owen Wilson. She lived for 10 years in the 54-unit Sterling-owned building on West Knoll and told jurors she stayed so long in part because it was under the city’s rent control ordinance.

Cohen maintained that her unit was among 52 units in which warning horns connected to the main alarm were not working the day of the fire. She also alleged that none of the dozen smoke detectors throughout the building were
functioning.

Kim Webster, a former cast member on “The West Wing,” and several other tenants also sued Sterling in January 2010, but settled with him before trial.

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joetheplummber
joetheplummber
9 years ago

I hope Ms. Cohen gets a couple Million and buys at least one court-side seat to a Clippers Game. Maybe she will invite an African American friend and get her picture in the paper!

Todd Bianco
Todd Bianco
9 years ago

Well, it just goes to prove that money can buy justice. Justice for the wealthy, that is. The $8.1 million is pocket change for Sterling and I doubt that he and his wife have changed their odious tactics and slum lord reputations. The legal maneuvers and delaying tactics saved Sterling $9.2 million. If he paid his attorneys even $1 million, it was a good “investment.”

Miles
Miles
9 years ago

Living in a Donald Sterling run building is equal to being on the RMS Titanic. As for the Courts – the 1% like Sterling own them. As for Sterling and his wife… they are every reason not to rent.