Commonfund Ordered to Pay $50-Million in Real-Estate Suit

A Los Angeles jury has ordered nonprofit financial manager Commonfund to pay $50.3-million in damages for breach of fiduciary duty to its partner in a series of Hollywood development projects, Bloomberg reports.

The damage award was set Friday, one day after jurors found for Newport Capital Advisors in its suit against Commonfund, in Wilton, Conn., which manages more than $26-billion in assets for endowments and foundations. Commonfund had partnered with Newport on the renovation of the storied Hollywood Palladium and three other projects.

Commonfund stopped making direct real-estate investments last year in the wake of losses suffered in the 2008 market crash. Its managing director, Keith Luke, said the firm might appeal, asserting that “there is no basis for either the verdict or the magnitude of the judgment.”