She also denied Israel’s claim that Waibel made defamatory statements intentionally and with malice.
But the judge granted Israel’s partial summary judgment as to his claim that Waibel made defamatory statements per se to others and made defamatory statements negligently.
Hillbroom sued his former attorneys David Lujan and Barry Israel for legal malpractice, negligence, breach of fiduciary duty, fraud, and violations of Racketeer Influenced and Corrupt Organizations Act.
Hillbroom also sued Waibel for conspiracy.
Israel has filed a motion for summary judgment for his cross-claims against Waibel for libel, slander, and defamation.
Israel also requested the court to enter a judgment against Waibel and issue an award of $1,442,877.67 and punitive damages in the amount of $400,000.
In her 17-page order, Judge Manglona stated that while the court agrees with Israel that he is entitled to presumed damages as a matter of law, “no evidence has been provided supporting any amount.”
She added, “Regarding Israel’s entitlement to special damages, the court disagrees with Israel’s claim that the damages are undisputedly $1,442,877.67. Rather, the question of presumed and/or special damages should be left for the jury to decide.”
As for the $400,000 claimed by Israel, Judge Manglona said he failed to establish traditional malice and to demonstrate entitlement as matter of law.
She said there is a reasonable dispute as to the amount of punitive damages owed and that issue should be left for the jury to decide.
At the status conference hearing on Oct. 1, 2020, attorney Rachel Dimitruk, who represents Hillbroom, and Lujan, who represents himself, told the court that mediation between them was ongoing.
In July 2020, Hillbroom agreed to dismiss Israel from the lawsuit after a settlement agreement was reached. A stipulation of dismissal from the parties was then filed in court.
Israel and Lujan, who represented Hillbroom when he was a minor, secured $90 million from the Larry Lee Hillblom estate on their client’s behalf.
When Hillbroom became an adult, he sued his former lawyers and trustee.
He alleged that the defendants committed extrinsic fraud on the Guam guardianship court by denying him a fair opportunity to challenge their 56% retainer.
Hillbroom is one of the four DNA-proven heirs of DHL Corp. founder Larry Lee Hillblom who died in a plane crash in 1995 near Saipan leaving behind him an estate estimated at about $600 million.
