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A 21-year legal battle among five brothers from India, renowned for their success in the diamond trade and Los Angeles real estate, has reached a turning point with a groundbreaking verdict. Haresh Jogani has been ordered by a jury to pay over $2.5 billion in damages to his brothers, Shashikant, Rajesh, Chetan, and Shailesh Jogani, and to divide their extensive Southern California property holdings, consisting of around 17,000 apartments.
The legal dispute, known as Jogani v. Jogani, stems from accusations that Haresh Jogani violated a longstanding partnership with his siblings. This complex case, often likened to Charles Dickens' Bleak House, has endured 18 appeals, numerous attorneys, and the scrutiny of five judges in the Los Angeles Superior Court. While the trial's main phase has ended, a punitive damages hearing scheduled for Monday may further shape the outcome.
What sets this case apart is its unusual scale, as most multibillion-dollar verdicts in the U.S. involve large corporations. The final distribution of the award hinges on the unpredictable real estate market, which has seen a decline in apartment prices since 2022.
The Jogani family's wealth originated from the global diamond trade, with Shashikant "Shashi" Jogani establishing a successful gem business in California. The recession in the early 1990s and the 1994 Northridge Earthquake prompted Shashi to involve his brothers in managing the firm, leading to the expansion of their property portfolio.
At the core of the dispute is Haresh Jogani's alleged removal of Shashi Jogani from firm management without fair compensation, sparking a breach of their partnership. While Haresh argued the absence of a written agreement, the jury found him guilty of breaking a verbal contract.
The verdict details damages of $165 million for Haresh's breach of the diamond partnership with Chetan and Rajesh, along with $1.8 billion to Shashi, $234 million to Chetan, and $360 million to Rajesh for the breach of the real estate partnership. The jury also determined ownership percentages in the real estate partnership: Shashi holds 50 per cent, Haresh 24 per cent, Rajesh 10 per cent, Shailesh 9.5 per cent, and Chetan 6.5 per cent.
As the legal proceedings continue, the Jogani brothers' extensive real estate portfolio, generating up to $137 million annually, remains central to this intricate and protracted dispute. The case titled Jogani v. Jogani unfolds in the California Superior Court, Los Angeles County.
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