Irvine Co. Loses $40-Million Suit to Lion Country
A jury found Friday that the Irvine Co. acted “with fraud and malice” to undermine the business dealings of Lion Country Safari and awarded damages of $40 million to the now-defunct theme park.
The award to Lion Country Safari, which operated its wild animal park from 1969 to 1984 on Irvine Co. land near the El Toro “Y,” could go higher on Monday, when the Superior Court jury will reconvene to consider additional damages.
A top official of the Irvine Co., which is Orange County’s largest landowner, said he was stunned. “I think it’s a runaway jury, and evidence entered into the trial does not support the verdict,” said Peter D. Zeughauser, the land company’s vice president and general counsel. “We will ask the judge to set aside” the verdict “and appeal if necessary.”
Although the award was less than the $50 million to $100 million that Lion Country Safari had requested, the chairman of the theme park’s parent company was elated.
“Justice triumphed,” said Harry Shuster, who heads United Leisure Corp.
The case centered on Lion Country’s allegations that the Irvine Co. repeatedly interfered with its attempts to sublease much of the 300 acres that United Leisure controls under a 28-year lease.
While it was still operating, Lion Country did sublease about 100 acres for the construction of the Irvine Meadows Amphitheatre and the Wild Rivers water park.
Irvine Co. sued to stop both projects but was unsuccessful. The land company said it preferred that the site be used for less permanent attractions such as softball fields, horseback-riding trails and a golf driving range.
United Leisure sued in 1987, alleging that the Irvine Co. tried repeatedly to thwart plans for development of other lucrative recreational projects on the remaining 200 acres it was leasing. Irvine Co. “generally acted in such a way as to make it impossible to derive a profit from its lease,” United Leisure alleged in court documents.
Irvine Co. countersued, alleging that Lion Country owed back rent and penalties totaling $2.5 million. The jury on Friday rejected Irvine Co.’s claim.
Lion Country Safari was a drive-through wilderness park that allowed visitors to get close to exotic animals such as lions, elephants, zebras and giraffes. Park employees made sure that visitors kept the car windows rolled up.
The park closed in 1984, citing a prolonged sag in attendance despite being one of the region’s better-known attractions. United Leisure filed for bankruptcy reorganization two years later.
United Leisure contended in its lawsuit that it tried repeatedly to forge deals that would have brought other recreational businesses to the property but was thwarted each time. Its only success was with the Irvine Meadows Amphitheatre and the Wild Rivers water park, from which it still receives revenue.
Irvine Co. officials said they feared that the former Lion Country site would become overdeveloped with attractions that would bring in thousands of visitors daily, thereby tying up traffic and causing other problems as South Orange County grew.
The property, near the intersection of the San Diego and Santa Ana freeways, is only a short distance from the Irvine Spectrum, a mixed-use office development that has long been planned as the next major business center in Orange County.
During the monthlong trial, the jury heard testimony about nearly a quarter-century of dealings between the two companies. Many of the allegations were based on some highly technical points defined in the fine print of contracts between the companies.
To clarify the issues, lawyers on both sides stacked the courtroom with poster-sized copies of checks, contracts, aerial maps and other visual aids. Court clerks helped lawyers keep track of more than 1,000 exhibits.
Testimony was just as painstaking. United Leisure’s Shuster was on the witness stand for seven days.
The 12-member jury, which began deliberations on Tuesday, awarded $37.3 million to United Leisure after finding that the Irvine Co. interfered with Lion Country’s attempts to sublease the property, and that the landowner did so maliciously and fraudulently.
It also awarded $259,982 to United Leisure as reimbursement of rent payments that the Irvine Co. collected but to which the jury found it was not entitled.
Finally, the jury found that the Irvine Co. unfairly put Lion Country under duress to sign an agreement involving the Irvine Meadows Amphitheatre. As a result, Lion Country is entitled to another $3.3 million, the jury said.
Lion Country Legal Safari
A six-year legal battle ended Friday when a jury awarded $40 million to the operators of the now-defunct Lion Country Safari. How the case developed:
* 1969: United Leisure signs 28-year lease with Irvine Co. for 300 acres near intersection of the San Diego and Santa Ana freeways. Property was developed as Lion Country Safari.
* 1984: Attraction closes after 15 years of poor attendance.
* 1986: United Leisure files for reorganization under Chapter 11 of federal bankruptcy code.
* 1987: Irvine Co. files lawsuit, alleging that United Leisure owes $2.5 million in rent. United Leisure countersues for $50 million it alleges was lost because Irvine Co. would not allow new recreational operations.
* Oct. 1, 1993: Jury selection begins.
* Nov. 2, 1993: 12-member jury begins deliberations.
* Nov. 5, 1993: United Leisure wins judgment.
Source: Los Angeles Times
