A 21-year legal battle between five brothers from India, known for their success in the diamond trade and real estate in Los Angeles, has reached a turning point with a landmark verdict. Haresh Jogani has been ordered by a jury to pay more than $2.5 billion in damages to his brothers, Shashikant, Rajesh, Chetan and Shailesh Jogani, and to divide up their extensive Southern California properties consisting of approximately 17,000 apartments.
The legal dispute, known as Jogani v. Jogani, stems from allegations that Haresh Jogani breached a long-standing partnership with his siblings. This complex case, often compared to Charles Dickens' Bleak House, has endured eighteen appeals, countless attorneys, and the scrutiny of five judges in the Los Angeles Superior Court. Although the main phase of the trial has concluded, a hearing on punitive damages scheduled for Monday could further determine the outcome.
What sets this case apart is its unusual size, as most multibillion-dollar verdicts in the US involve large corporations. The final price distribution depends on the unpredictable real estate market, which has seen a decline in apartment prices since 2022.
The Jogani family's wealth came from the global diamond trade, with Shashikant “Shashi” Jogani founding a successful gemstone company in California. The early 1990s recession and the 1994 Northridge earthquake prompted Shashi to involve his brothers in running the company, which led to the expansion of their real estate portfolio.
At the heart of the dispute is Haresh Jogani's alleged removal of Shashi Jogani from the company's management without fair compensation, leading to a breach of their partnership. While Haresh argued the lack of a written agreement, the jury found him guilty of breaching an oral contract.
The judgment sets out 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 the ownership percentages in the real estate partnership: Shashi owns 50 percent, Haresh 24 percent, Rajesh 10 percent, Shailesh 9.5 percent and Chetan 6.5 percent.
As legal proceedings continue, the Jogani brothers' extensive real estate portfolio, which generates up to $137 million annually, remains at the center of this complicated and protracted dispute. The case titled Jogani v. Jogani takes place in the California Superior Court, Los Angeles County.