By Dan Levine and Lisa Richwine
LOS ANGELES (Reuters) – A lawsuit that challenges the mental competence of media mogul Sumner Redstone, the former executive chairman of Viacom Inc, can proceed, a California judge said in a tentative ruling on Monday.
The decision by Los Angeles Superior Court Judge David Cowan is a victory for Redstone’s former girlfriend, Manuela Herzer, who claims the 92-year-old billionaire was mentally incompetent when he removed her as his designated health care agent in October.
The lawsuit has raised questions about Redstone’s role in decision-making at Viacom and CBS Corp, media companies in which he controls about 80 percent of voting stock. Redstone stepped down as executive chairman at both companies earlier this month but remains a director.
Redstone suffers from a speech impairment but was fully aware of his actions when he replaced Herzer with Viacom Chief Executive Philippe Dauman as the person designated to make decisions about his medical care if he is unable, his lawyers argue.
Redstone’s attorneys asked Cowan to dismiss Herzer’s lawsuit, but on Monday the judge rejected the motion in a tentative order distributed before a brief hearing.
The judge made no ruling on Redstone’s mental health, saying that matter would be considered after a trial, which he scheduled to begin May 6.
However, the judge questioned the arrangements under which Dauman directs Redstone’s care, and indicated alarm at the state of Redstone’s health.
“The court finds it perplexing that Redstone still puts Philippe Dauman and for that matter Thomas Dooley, the COO of Viacom, ahead of his own daughter as his agent in case of his incapacity,†the judge wrote in the ruling. “It has to be an unusual situation where a parent still at this late date puts his East Coast business colleagues ahead of an adult child, or for that matter adult grandchildren, in terms of his care.â€
The judge questioned how a CEO in New York, such as Dauman, had the “time or ability†to look after Redstone in California, even with the best intentions.
Redstone’s daughter Shari opposed Dauman replacing her father as Viacom executive chairman earlier this month.
The judge noted an opinion provided by Dr. Stephen Read, a psychiatrist hired by Herzer, who has examined Redstone. He did not discuss details of Read’s report, but said: “Suffice it to say, though not conclusive as to capacity, but those details are difficult to read in describing how this man is hanging on to life.â€
Read has stated in court filings that he believes Redstone lacked the mental capacity to change his health care directive.
Redstone’s personal physician Richard Gold, and geriatric psychiatrist James Spar, have told the court they believe the mogul was competent to make that decision.
Redstone’s lawyers argue that Herzer is merely seeking financial gain after Redstone’s move in October to revoke a part of his estate plan that would have given Herzer a $70 million inheritance.
Gabrielle Vidal, a lawyer for Redstone, said on Monday that Redstone’s privacy is being “eviscerated†by the legal proceedings, and that Redstone just wanted to live in peace, without litigation.
However, the judge said it was difficult to understand what Redstone wanted.
“Unfortunately I have no declaration from him, I have no evidence from him,†the judge said in the hearing.
Viacom shares were up 3.2 percent at $37.39 on Monday on Nasdaq.
(Reporting by Dan Levine and Lisa Richwine; Editing by Bill Rigby)
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