Katy Perry's $1.8 Million Legal Victory: 5 Shocking Details From The Montecito Mansion Lawsuit Conclusion

The five-year legal saga over the $15 million Montecito mansion purchased by Katy Perry and Orlando Bloom has finally reached a definitive and financially substantial conclusion, with a judge ruling firmly in the couple's favor and awarding them a significant sum in damages. As of December 10, 2025, the pop superstar is set to recoup approximately $1.8 million from the home's previous owner, a verdict that closes one of the most high-profile and emotionally charged real estate disputes in recent memory. This ruling not only secured the property for the celebrity couple but also awarded them substantial compensation for the years the house was tied up in litigation, primarily covering lost rental income and other related costs.

The core of the legal battle centered on the seller, ailing veteran Carl Westcott, who attempted to rescind the sales contract just days after signing, claiming he was not of sound mind due to pain medication and his deteriorating health condition. The ensuing courtroom drama pitted one of the world's most recognizable pop stars against a respected, elderly businessman, creating a complex and sensitive case that captivated the public and legal experts alike.

Key Figures: The Celebrity Couple, The Veteran, and The Judge

The Montecito mansion lawsuit involved several high-profile and critical figures whose actions and decisions shaped the five-year legal process.

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• Katy Perry (Katheryn Elizabeth Hudson): The global pop star, known for hits like "Firework" and "Roar." She and her then-fiancé, Orlando Bloom, sought to purchase the Montecito property in 2020. She testified during the trial, confirming that the property was intended for her partner, Orlando Bloom.
• Orlando Bloom: A British actor famous for roles in The Lord of the Rings and Pirates of the Caribbean. Perry confirmed he is the true owner of the disputed $15 million mansion, which they acquired shortly before the birth of their daughter, Daisy Dove Bloom.
• Carl Westcott: The seller, an 85-year-old disabled veteran and successful entrepreneur who founded companies like 1-800-FLOWERS. He suffers from Huntington's disease, a progressive neurological disorder. He claimed he was under the influence of strong pain medication following back surgery when he signed the contract, leading him to seek rescission.
• Bernie Gudvi: Perry and Bloom's business manager, who handled the initial purchase agreement for the couple in July 2020. Gudvi was the named party in the original transaction.
• Judge Joseph Lipner: The Los Angeles Superior Court judge who oversaw the non-jury trial and ultimately issued the decisive tentative ruling in late 2023, which was finalized in 2024.

The $15 Million Transaction and the Claim of Mental Incapacity

The dispute began in July 2020 when Katy Perry and Orlando Bloom, through their business manager, agreed to purchase the sprawling, eight-bedroom Montecito, California, estate for $15 million. This purchase was intended to be a family home, adding to the growing list of celebrity-owned properties in the exclusive Santa Barbara County enclave.

However, just two days after signing the purchase agreement, Carl Westcott attempted to revoke the sale. His lawyers argued that Westcott was not of "sound mind" when he consented to the sale. The core of his defense rested on his medical condition—Huntington's disease—and the heavy prescription pain medication he was taking following a major back surgery. Westcott claimed the combination of his illness and the drugs rendered him mentally incapacitated and unable to understand the gravity of the contract.

The legal strategy employed by the Westcott family sought to utilize California property law provisions that allow a contract to be voided if one party can prove they lacked the requisite mental capacity at the time of signing. The stakes were incredibly high, as both sides were fighting not just for the property but for the principle of contract sanctity versus the protection of vulnerable individuals.

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The Judge’s Verdict: No Convincing Evidence of Incapacity

The lengthy, non-jury trial—a format where a judge, not a jury, decides the facts—culminated in a decisive victory for Katy Perry and Orlando Bloom. In a tentative ruling issued in late 2023, Judge Joseph Lipner concluded that Carl Westcott had failed to provide convincing evidence that he was legally incapable of consenting to the sale at the time he signed the contract.

The judge's finding effectively validated the original purchase agreement, clearing the way for the celebrity couple to finally take control of the dwelling. They officially closed on the property in May 2024, four years after the initial agreement and five years into the legal battle. This resolution was a major relief for Perry, who had previously stated her desire for "justice" in the contentious legal battle.

The $1.8 Million Damages Award and Financial Fallout

Following the successful validation of the contract, Katy Perry's legal team pursued damages to compensate for the financial losses incurred during the protracted legal dispute. The pop star initially sought $5 million in damages, a figure intended to cover the costs and lost opportunities resulting from the property being tied up in litigation.

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The court ultimately awarded Perry approximately $1.8 million (or £1.4 million), a substantial sum that focused primarily on two key areas:

• Lost Rental Income: A significant portion of the award was calculated based on the estimated rental value of the $15 million Montecito mansion over the four years it was unavailable to Perry and Bloom. The couple had intended to rent out the property for a time, and the court recognized this as a quantifiable financial loss.
• Maintenance and Operational Costs: The damages also covered various costs associated with maintaining the property and the legal expenses incurred during the five-year contract dispute.

This ruling means that Carl Westcott, the ailing veteran who tried to rescind the sale, is now legally obligated to pay the celebrity couple nearly $2 million in addition to losing the property. The financial fallout for Westcott adds a tragic layer to the lawsuit, highlighting the severe consequences of high-stakes real estate litigation. The Westcott family is now awaiting the final steps in the case, including the formal agreement to the statement of decision.

Topical Authority: Contract Dispute and Celebrity Real Estate

This case serves as a powerful example of the complexities inherent in high-value real estate transactions, particularly when issues of mental capacity and contract law intersect. The verdict reinforces the legal principle that merely having a medical condition or taking medication is not, in itself, sufficient grounds to rescind a contract; a high bar of proof for legal incapacity must be met. The court's meticulous examination of Westcott's condition and the timing of the contract signing proved critical in upholding the sale. The case has become a landmark example in California property law regarding the defense of mental incapacity in contract disputes.

The Montecito area, known for its ultra-luxury real estate, often attracts these kinds of high-profile property battles. For Katy Perry and Orlando Bloom, securing the $15 million mansion—a key piece of their family's real estate portfolio in a highly desirable location—was a major personal and financial victory. The additional $1.8 million in damages provides compensation for the time and resources lost, finally closing the chapter on a contentious and highly publicized legal ordeal that started in the summer of 2020. The resolution of this five-year legal battle allows the couple to fully integrate the Montecito home into their lives, moving past the protracted contract dispute and the sensitive claims of the veteran seller.