Developer to Pay $31,000 in Fees for Bungled Libel Suit

Developer Craig E. Caldwell was ordered to pay nearly $31,000 to the Legal Aid Foundation of Long Beach to cover attorney’s fees and court costs stemming from his libel suit against the foundation.

Long Beach Superior Court Judge Robert Parkin ruled last week that Caldwell’s “entire lawsuit was both totally and completely without merit” and was intended to harass attorney Alaine R. Parry and the foundation. Caldwell had dropped the suit in June.

In a separate action, the foundation last week filed a lawsuit accusing Caldwell of renting an uninhabitable residence on Golden Avenue to two families. The foundation last March had filed a suit accusing Caldwell and his companies of renting uninhabitable residences on Golden Avenue to five families.

Caldwell, who could not be reached for comment, in the past has claimed that his tenants created the poor conditions. Accusations that his buildings are uninhabitable are “without merit,” he has said.

In April, Caldwell filed a $10-million libel lawsuit accusing Parry and the foundation of instigating news stories in which he was accused of being a slumlord. The lawsuit said the stories exposed him to “hatred, contempt and ridicule because they disparage the personal and business reputation of (Caldwell) as a developer of quality housing projects.”

Caldwell dropped the libel suit in June several days before a hearing in which the foundation was planning to seek dismissal.

Parry’s lawyers lauded the judge’s decision to order Caldwell to pay legal fees and court costs. “The law permits recovery of all attorneys’ fees and other costs where lawsuits are frivolous. We are pleased that Judge Parkin agreed that Mr. Caldwell’s lawsuit was filed and pursued in bad faith and without any legal basis,” said Douglas E. Mirell.

Caldwell’s attorney could not be reached for comment.