PHOENIX – A wealthy Phoenix-area real estate developer and a business his sons control have been ordered to pay $171 million by a jury for a contested land deal.
The Maricopa County Superior Court jury found that Conley Wolfswinkel and WVSV Holdings were found guilty of aiding and abetting a breach of fiduciary duty after a monthslong civil trial. The jury set compensation at $21 million and on Monday tacked on $150 million in punitive damages.
Wolfswinkel attorney Lee Johnson said they would appeal.
In the 1990s, Wolfswinkel was hit with $2 billion in judgments related to the collapse of several savings and loans where he was a borrower. He eventually settled the judgments for about $22 million but was shunned by former business associates and branded by some as a crook.
Working through family companies, Wolfswinkel rebuilt his real-estate empire and has been trying to rebuild his reputation.
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The suit that ended Monday included a long cast of Phoenix-area power brokers.
Wolfswinkel was sued by former America West Airlines chief Bill Franke, powerful real estate agent Sandra Baldwin and noted trial lawyer Leo Beus, among others.
A co-defendant was Robert Burns, developer of the Sun Valley Parkway, at one time called "the road to nowhere."
The case involved the 2003 sale of 13,500 acres along the parkway west of Phoenix to WVSV Holdings, controlled by Wolfswinkel's sons Brandon and Ashton.
WVSV paid $74 million for two parcels, including 10,000 acres owned by 10K LLC, which includes Franke, Beus, Baldwin, attorney Paul Gilbert, investor Bill Pope and others. Burns had put together 10K to buy the land for about $9 million in 1990s.
In 2003, Burns agreed to sell the property, including 3,500 adjoining acres, to the Wolfswinkels.
The investors sued Burns, who was managing the property, for breach of his responsibility to get the best deal for the investors. Burns settled with 10K, leaving Wolfswinkel as the lone defendant.
"We're very happy with the jury's decision," said investor Randy Stolworthy, who is now 10K's managing member. "Typically, Conley (Wolfswinkel) wears people out over years of legal processes. This time, it didn't work."
Wolfswinkel's attorney Johnson said he expected Judge Edward Burke or an appellate court to disallow the judgment because of earlier cases that affirmed the land sale.
"They may be partying now," Wolfswinkel said. "But it won't be for long."
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