Glaser Weil Steps in to Lead Decade-long Litigation for The Yucaipa Companies, Achieves Complete Victory

Glaser Weil took over an almost decade-long litigation representing The Yucaipa Companies, a premier Los Angeles-based investment firm, in its first victory and secured a complete victory for the client.

Yucaipa had been the defendant in litigation arising out of its 2007 investment in a car-hauling company. Throughout this litigation, Yucaipa, represented by another law firm, had faced adverse ruling after adverse ruling in multiple venues, including New York state and appellate courts and the Delaware Bankruptcy Court, Chancery Court and District Court. In June 2021, Delaware Bankruptcy Court Judge Christopher Sontchi issued a $132 million judgment against Yucaipa on summary judgment for breach of contract claims.

Yucaipa then decided to replace its existing counsel and hire Glaser Weil to handle the scheduled trial on the remaining tort claims before Judge Sontchi. In that trial, the same plaintiff asked Judge Sontchi, consistent with his prior rulings, to award the plaintiff another $156 million (plus pre-judgment interest for over 11 years) and additional damages worth approximately $45 million.

In the time frame of nine months, the Firm’s team absorbed 10 years’ worth of materials, including over 40 depositions and thousands of documents, preparing the case for trial. Following a seven-day in-person trial in Delaware, the court issued a judgment in favor of our client related to the tort claims.

After our trial victory, we appealed the decision related to the $132 million breach of contract claims and the opposing party agreed to settle in connection with the outstanding judgment. A confidential settlement was signed on August 8, 2023.