It took the jury just over a day to decide in favor of former Morton’s and Hard Rock owner Peter Morton. Morton was being sued by his ex-wife for $10 million. Tarlton Morton alleged that Peter defrauded her out of more the $10 million in stock in the Hard Rock Hotel and Casino.
She also claimed that Peter hired private investigators to stalk and harass her.
The jury decidedly unanimously (which is not required in civil cases) that Morton did not breach any fiduciary duty to his ex, nor did they believe that he invaded his ex-wife’s privacy.
Morton co-founded the Hard Rock Café chain, which was sold in 1995, and the Hard Rock Hotel & Casino in Las Vegas, which was sold in 2006. His famous Hollywood restaurant, Morton’s, closed in 2007. He has recently produced a few movies.
Peter and Tarlton Morton married in 1990 but divorced seven years later. In their original prenuptial agreement, Tarlton would have received a $100,000 trust fund for each year the two remained married. When the Hard Rock Hotel and Casino in Vegas was being planned, that section of the prenup was amended and Morton offered his wife a 1% stake in the hotel instead.
After their divorce, Tarlton asked Morton to buy out her share in 2004. His accountants valued it at $451,000 and Morton paid her that amount for her stock.
The hotel sold two years later for $770 million. Her 1 to 1.67 percent stake would have given Tarlton over $11 million. in 2006, she realized the sale would have given her over $11 million. She filed suit against Morton in January 2007, claiming that she was not shown a cover letter from the bank explaining that the valuation was for tax purposes — not an attempt to assess the stock’s likely price at sale.
She claims that, after she filed suit, she began being followed and harassed. Morton’s family law attorneys did hire a private investigator to obtain proof that she was doing drugs. (The Mortons have minor children together.)
One picky, lawyerly note: The article I originally read about this verdict said, “Morton Not Guilty of Defrauding, Harassing Ex-Wife.” Civil juries do not decide guilt. They decide liability. Guilt is a criminal law concept. Be accurate in your reporting and in your headlines!
