Will a Third Trial Be the Charm for Casden Brothers?

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Condominium developer Alan Casden will return to trial for a third time against his brother Henry in a six-year dispute that began when the pair decided to work together.


The third trial comes this month after a local appellate court reversed large portions of a prior jury award.


Henry Casden, former president of Casden Properties LLC, originally sued his brother to recover $225,000 in unpaid dividends from his stake in a Casden-controlled partnership. Alan Casden won most of the original jury trial, but that was reversed by a 2nd Appellate District and sent back to Los Angeles Superior Court.


Then in 2003, the tables were split when a second jury awarded Henry Casden about $5.5 million in severance and unpaid dividends but also gave Alan Casden $1 million in damages, stating that his brother had breached his three-year employment agreement.


But earlier this month, a separate 2nd Appellate District panel eliminated $5 million of the award to Henry Casden, leaving him only $500,000. It also reduced Alan Casden’s $1 million award to a maximum of $117,592 and allowed Henry Casden to pursue an additional claim that he was owed $4 million in unpaid bonuses plus interest.


Henry Casden’s lawyer, Hillel Chodos, said he expects the case to return to Los Angeles Superior Court in the next few months.


Tom Nolan, a partner at Skadden Arps Slate Meagher & Flom LLP representing Alan Casden, said he would “aggressively defend against Henry’s claim that he’s entitled to a bonus.”



Election Timing


Word last week that a federal grand jury would likely return a second indictment in April or May as part of an investigation of Fleishman-Hillard Inc. has fueled new buzz about the timing of any possible action by prosecutors.


Assistant U.S. Attorney Adam Kamenstein disclosed the timing of the next indictment at a status hearing in the case against John Stodder, a former vice president at Fleishman who managed a $3 million-per-year contract with the Los Angeles Department of Water & Power. Stodder was indicted in January on charges that he submitted at least $250,000 in fraudulent bills to the city and has pleaded not guilty to 11 felony counts of wire fraud.


Fleishman did public relations work for L.A. Mayor James Hahn’s office and other city departments creating a potential political issue as the May 17 election draws near.


Kamenstein refused to comment on all the speculation, but Deputy District Attorney Max Huntsman, lead county prosecutor in the Fleishman case, denied there was any connection to the timing of the next indictment.


“If people are of the opinion that Mr. Kamenstein is taking an action because of the election, they are mistaken,” he said.



*Staff reporter Amanda Bronstad can be reached at (323) 549-5225, ext. 225, or at

[email protected]

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