Eric S.
Pettit

Defended LIHTC investors in seven affordable housing properties against efforts by their developer partners to force the investors to relinquish their property interests for amounts that were tens of millions of dollars below fair market value. Following a bench trial in 2019 that Eric first chaired, the court rejected the developers’ claims, and instead found that the developers had engaged in bad faith.

Defended a LIHTC investor against efforts by the investor’s developer partner to manipulate an appraisal process in order to reduce the price the developer needed to pay to purchase the investor’s interest. The court ruled on summary judgment that the developer’s actions had caused the appraisal to be “tainted beyond salvation,” and—following a bench trial in 2019 that Eric first-chaired—awarded the investor hundreds of thousands of dollars in attorneys’ fees.

Defended a hedge fund manager against fraud charges brought by the SEC. Following a five-week SEC administrative trial in New York, the administrative law judge ruled in 2018 that the Commission had failed to meet its burden to prove that client had defrauded his investors, and rejected the Commission’s request to impose a lifetime securities bar and damages in excess of $60 million against the client.

Defended the former president and chief operating officer of America’s largest home-mortgage lender against governmental investigations and dozens of civil actions arising out of the 2008 subprime mortgage crisis. The client was never charged with wrongdoing by any federal or state agency, and all of the civil lawsuits were either dismissed or settled.

Obtained summary judgment and dismissal with prejudice of numerous tort, nuisance, and environmental claims brought against a multinational oil company by a condominium owners association and dozens of individual owners. The plaintiffs sought in excess of $35 million in connection with a 110-unit condominium development built in Oakland, California, on a former oil terminal site that the client had sold decades earlier.

Compelled arbitration and obtained order dismissing claims for breach of contract and the implied covenant of good faith and fair dealing, defamation, tortious interference, abuse of process, and intentional infliction of emotional distress brought by a registered investment advisor against a prominent national financial services firm. The arbitrator also found that the client was entitled to injunctive and potential monetary relief based on the plaintiff’s knowing violation of a confidentiality agreement.

Represented investor in FINRA arbitration against E*Trade Securities, LLC for advising the client that auction rate securities (“ARS”) were a liquid investment immediately before the ARS market collapsed in February 2008. The three arbitrator FINRA panel ordered that E*Trade pay the client the full purchase price of the frozen ARS he purchased and awarded the client more than 98% of the attorney fees incurred in litigating the case.

Secured voluntary dismissal of construction defect and unlawful distribution claims brought by condominium owners association against the client, a developer of luxury homes in Southern California.

Defended major record label against right of publicity claim filed by an infamous former Los Angeles drug dealer who alleged that the rapper professionally known as “Rick Ross” had adopted his name and persona without permission. The trial court granted summary judgment in the client’s favor, and the Court of Appeal affirmed the decision, ruling that the plaintiff’s claims were barred by the First Amendment.

Drafted and helped negotiate executive employment agreements for the executive chairman and CEO of a leading national home lender and servicer.

With Bet Tzedek Legal Services, filed a lawsuit against a slumlord on behalf of two families living in uninhabitable conditions in a Los Angeles apartment building. After taking significant discovery, the parties reached a settlement on terms favorable to the clients, including the payment of relocation costs and other money damages.