LTC Assists Firm With $110M Verdict

August 2010

Following a six-week trial, on July 27, 2010, a unanimous ten-member Maricopa County jury awarded a landmark $110,658,800 verdict to the Gray Development Group against Northeast Phoenix Partners – the master developer of Desert Ridge and the Chicago-based developer of the financially troubled CityNorth project at Desert Ridge. The case, Epicenter Partners LLC, et al. vs. Northeast Phoenix Partners, LC2007-000011, concerned Gray's attempts to develop a 41-acre parcel located in Desert Ridge on Deer Valley Road directly across the street from the Desert Ridge Marketplace and the CityNorth development. Gray acquired the parcel for $32 million in 2004 at a state auction. Gray presented evidence at trial proving that Northeast Phoenix Partners, an entity controlled by the Thomas J. Klutznick Company of Chicago, abused its powers as Master Developer to block Gray's development efforts between 2004 and 2007 in order to protect its neighboring CityNorth development.

Gray's lead trial counsel, Michael Kibler of Simpson Thacher & Bartlett, who tried the case with his partner Barry Ostrager, said, "This case was extremely hard fought; the jury attentively sat through six weeks of testimony and waded through dozens of complex documents. But in the end, the case, like most cases, boiled down to right versus wrong. Bruce Gray had the right to build his apartments at Desert Ridge and the Klutznick organization was wrong to deny Gray his right. We are highly confident that the verdict will withstand any appeal.”

To assist with the presentation of evidence at this trial, Kibler, of Simpson Thacher & Bartlett, contacted Legal Technology Consulting, Inc., in May. LTC senior consultant Chris Lakso, along with the assistance of CEO Timothy Piganelli, began to put together a project plan for automating the courtroom and setting up a system to present evidence in court. “Chris was awesome! He was an instant core member of the team.” said Kibler. Lakso’s responsibilities were to manage the case’s entire evidence database including over 950 document trial exhibits consisting of 18,000 pages, approximately 72 hours of deposition video, 414 impeachment clips and over 60 demonstrative graphics.

In addition, Lakso had to manage the technology in the courtroom every day during trial. The courtroom system consisted of an Audio-Video system that LTC setup and installed for both parties to use at trial. The system was setup such that both sides could present exhibits, graphics, video and audio in a manner which everyone can see. Lakso’s main job in court was to bring up any one of a number of exhibits within a moment’s notice. After the trial day was done, Lakso continued his day working in the firm’s war room by constructing video impeachment clips for each adverse witness; assisting in modifying graphics for expert witnesses using Microsoft PowerPoint, and preparing the next day’s exhibits based on witness outlines submitted to him by attorneys working on the case. The trial evidence included:

• Documents showing that the Klutznick organization leveraged its close relationship with Phoenix City Councilwoman Peggy Neely to block Gray's zoning case.  Councilwoman Neely was a vocal supporter of the Klutznicks' controversial $97.4 million City sales tax rebate for the CityNorth project.
• Documents showing that the Klutznicks orchestrated a behind-the-scenes campaign to drum up community opposition to Gray's apartment project.
• Documents showing that the Klutznicks abused their complete control over the Desert Ridge Community Association to benefit their CityNorth project.

 

“With such a large amount of money at stake, the stress levels were high but the team stayed cohesive at all times. Bruce Gray was very appreciative of the work the entire team did.” said Lakso. “We thought we had a great case and had to keep telling ourselves to not get self-mesmerized. It wasn’t until the verdict that we realized just how strong the case was. We never took our position for granted.” Lakso concluded.

 

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LTC is an expert consulting firm offering strategic solutions for litigation and legal-based projects. Comprised of a group of veteran experts, LTC offers some of the most experienced consultants in the country in the areas of trial and jury consulting, eDiscovery, Case Management and Graphics and Animation. LTC has been providing solutions to its clients since 1988.