Katy Perry Set to Recover $1.8 Million After Prolonged Legal Battle Over Montecito Mansion
Katy Perry is poised to recoup $1.8 million in damages following a years-long dispute over a $15 million Montecito estate, marking one of the most closely watched celebrity real-estate cases in recent years. The order, signed Tuesday by Los Angeles County Superior Court Judge Joseph Lipner, will take effect unless either party files a valid objection within the next ten days. The ruling caps the second phase of litigation between Perry and 86-year-old Texas entrepreneur Carl Westcott, who attempted to overturn the sale four years ago.
The dispute began in July 2020, when Westcott agreed to sell the property, a 9,285-square-foot estate purchased only weeks earlier, to Perry through her business manager, Bernie Gudvi. Soon after signing the sales contract, Westcott sought to void the agreement. His lawyers argued that he had been cognitively impaired due to a degenerative brain condition, the lingering effects of back surgery, and heavy pain medication. Perry and her legal team countered that Westcott had acted knowingly and deliberately, presenting communications showing he negotiated actively, considered multiple offers, and participated extensively in the sale.
During the 2023 liability trial, Perry’s team introduced text messages, emails, and testimony they said demonstrated Westcott’s awareness. Evidence showed he rejected Perry’s initial $13.5 million offer, signed a counteroffer at $15 million, extended key deadlines, arranged a personal walkthrough for Perry, and even entertained interest from another high-profile buyer, Maria Shriver. Judge Lipner ultimately ruled that Westcott was competent when he signed the agreement, finalizing Perry’s right to purchase the property.
Following that decision, Perry placed $9 million into escrow and formally took possession of the home in April 2024, leaving the remaining $6 million pending the damages determination. The second phase of the trial focused on Perry’s claims that she incurred significant financial losses during the four-year delay. Her team sought $4.7 million, including more than $3 million in lost rental income and over $2 million in repair costs tied to alleged deterioration that occurred while the case was pending.
Judge Lipner’s ruling awarded Perry $2.8 million for lost rental value and $260,000 for property repairs, including remediation for water damage and the removal of a fallen tree. However, he deducted $1 million based on the conclusion that Perry was able to invest a portion of the withheld funds during litigation, offsetting some losses. The final award totals $1.8 million.
Westcott’s attorneys argued the property could not have been in disrepair, pointing out that Perry rented it to actor Chris Pratt and his wife, Katherine Schwarzenegger, after taking control. Perry’s team countered that she was not seeking reimbursement for repairs she completed but rather compensation for what would have been required to return the home to its original 2020 condition, as stipulated in the purchase agreement.
The legal battle drew public attention early on, with critics initially casting Perry as a superstar leveraging her influence against an elderly seller. Evidence presented during the trial, however, painted a more complex picture. Westcott had acquired the property on May 29, 2020, and was described by witnesses as alert and engaged throughout the negotiation process. The judge noted that even Westcott’s medical expert could not offer a definitive explanation supporting the claim of incapacity.
As the case approached its conclusion, Perry remained a regular fixture in entertainment headlines. In April, she made a brief trip into sub-orbital space aboard a Blue Origin flight, and her subsequent split from longtime partner Orlando Bloom generated widespread coverage. She has also been seen publicly alongside former Canadian Prime Minister Justin Trudeau, prompting media speculation about their relationship.
With the court’s latest ruling, Perry moves significantly closer to closing a contentious chapter that has stretched over four years. Unless objections delay the process, the payment will finalize the financial component of the dispute and fully reaffirm her ownership of the Montecito estate.
