Palladium Partner Awarded $50M

A Southern California investment firm was recently awarded a $50 million judgment from a former partner over four real estate projects that included a renovation of the Hollywood Palladium.

A jury in a Los Angeles Superior Court ordered nonprofit investment manager Commonfund to pay $16.3 million in compensatory damages and $34 million in punitive damages to Newport Capital Advisors Oct. 19, according to court documents obtained by the Los Angeles Times.

In court, Newport Capital alleged Commonfund had attempted to bring in a new developer and claim sole ownership of several properties after entering an agreement to co-own, develop and renovate the Palladium and surrounding areas in 2004. Several projects apparently stalled after the real estate crash in 2008.

The Palladium is currently under receivership, the Times said.