The court cuts Mohamed Hadid’s liability on Strada Vecchia by $ 900,000

Mohamed Hadid and 901 Strada Vecchia Rd (Getty, Real Estate Agent)
Mohamed Hadid and 901 Strada Vecchia Rd (Getty, Real Estate Agent)

Mohamed Hadid scored a clear – if incremental – victory in the courtroom this week as a judge cut nearly $ 1 million from commitments related to the fateful Strada Vecchia spec mansion of the spec-developer-cum-reality TV star in Bel Air.

It has been a good year for Hadid, who has spent the past few months immersed in two separate, high-profile real estate battles.

But the latest legal developments mean that Hadid is personally liable for about $ 900,000 less than under a previous court order on the unfinished project, which is to be demolished.

“It’s a big win,” said Jeff Reeves, Hadid’s lawyer in the case.

This week’s decision was not the decision Hadid ultimately aims to reach.

The developer and his legal team claim “he should never have been sued for this in the first place and he does not owe any money now,” Reeves said. “And that’s where we hope to reach at the end of the appeal process.”

An attorney for the plaintiffs in the case did not immediately respond to a request for comment. Hadid also declined to comment.

Last week’s revised ruling came months after a jury decided a civil case brought by four neighbors of the property against Hadid. In September, after a lengthy trial, the jury found that the developer and an affiliated entity were liable for damages resulting from the construction of the infamous property. The finding led to a $ 2.9 million fine.

But that number was in itself something of a victory for Hadid because the plaintiffs had sought $ 26 million.

“We are very disappointed,” Judith Bedrosian, one of the four plaintiffs, said immediately after the verdict.

At the time, Bedrosian also expressed frustration that Strada Vecchia – despite a court mandate demolition – remained standing. “We want to sell our homes,” she said. “Who is going to buy our house with that thing up there?”

Last week’s revised court ruling came after challenges from Hadid’s legal team. The original court ruling, Hadid’s lawyers successfully argued, had mistakenly distributed to Hadid all of the approximately $ 2.3 million in emotional distress that the jury had ruled on; in fact, the jury had awarded 70 percent of those damages to Hadid and the remaining 30 percent to an LLC involved in the property.

This change resulted in a reduction of about $ 690,000 in the amount for which Hadid is personally responsible – even though he is also tied with others to the LLC. A further $ 200,000 reduction in Hadid’s exposure came from a recalculation of interest rates in the revised order, Reeves said.

It can still take months before the developer is forced to reject something because his legal team plans to appeal the entire verdict.

“Zero dollars,” Reeves added, “is the right number.”

The larger battle over Strada Vecchia, which also included a criminal case that resulted in community service for Hadid, has raged for years. But the saga reached a major milestone in November when the property – which was put under judicial review in 2019 after a judge ruled it was unsafe – was finally sold.

The buyer was Sahara Construction Company, a Ventura County-based firm that agreed to pay $ 5 million for the property and also carry out the long-awaited demolition.

“We are quite relieved to have finally reached a conclusion,” said Joe Horacek, a neighbor who, along with his wife, Bibi, led the civil case and has called for a demolition due to security fears, following the sale. closure. “It feels like it’s behind us and it will be done.”

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