Irvine Co. Fine in Lion Country Case Overturned

In an unusual move, a judge on Friday overturned a 1993 lawsuit settlement requiring Irvine Co., Orange County’s largest landowner, to pay $42.6 million in damages to the company that operated the now-defunct Lion Country Safari theme park in south Orange County.

Citing insufficient evidence to justify the jury’s Nov. 5 verdict, Orange County Superior Court Judge Claude M. Owens granted a motion calling for a new trial in the case, which dates back to 1987.

United Leisure Corp., the former operator of Lion Country Safari, had alleged in its lawsuit that Irvine Co. undermined the business of the park operator by blocking it from making full use of the 300 acres it was leasing from Irvine Co. As a result, United Leisure alleged in its lawsuit, it was eventually forced to shut down Lion Country Safari.

A jury decided that Irvine Co. should pay about $37 million in damages to United Leisure and later awarded an additional $5 million in punitive damages.

In granting the motion for a retrial, however, Owens said “there is no evidence of loss of anticipated profits” from other projects planned by United Leisure for the site.

Peter D. Zeughauser, the Irvine Co.’s general counsel, said in a statement: “We are gratified by what we believe is a proper result.” Owens’ action, he said, “strongly supports our view that Lion Country’s award was built on groundless and misleading claims.”

Brian Lysaght, a lawyer for United Leisure, said the company will appeal Owens’ order for a retrial, no date for which was set.

Stephen Thames, a partner in the Irvine office of the law firm Allen, Matkins, Leck, Gamble & Mallory, said of Owens’ action Friday: “Certainly this is unusual. You don’t see a lot of judgments overturned.”

“The judge decided the judgment that was entered was simply not supported by the evidence,” said Thames, whose firm specializes in real estate litigation.

Lion Country Safari opened in 1969 as a drive-through wilderness park that allowed visitors to get close to exotic animals such as lions, elephants, zebras and giraffes. The park closed in 1984, citing a prolonged decline in attendance. United Leisure filed for bankruptcy reorganization two years later.

While it was operating, Lion Country subleased about 100 acres for the construction of the Irvine Meadows Amphitheatre and the Wild Rivers water park. Irvine Co. unsuccessfully sued to stop both projects, saying it wanted the property to be used for less-permanent attractions, such as a golf driving range.

In 1987, United Leisure sued Irvine Co., alleging that the landowner had tried repeatedly to thwart plans for development of lucrative recreation projects and had “generally acted in such a way as to make it impossible to derive a profit” from the property.

“This is a complete bailout for the Irvine Co.,” Lysaght said Friday. “There’s no question in my mind that the jury understood everything.”

Irvine Co. owns Irvine Ranch, which covers more than 90 square miles and is one of the nation’s largest planned communities. It includes 17,000 businesses, 65,000 homes and has a population of about 175,000. At least 60,000 acres of the ranch remain undeveloped.