was frustrated in his attempt to change his family background and hand over exclusive control of his media empire to his eldest son. Edmund Gorman Jr., the probate commissioner of Reno, Nevada, who heard the case, handed down a verdict on Saturday, as reported by the New York Timesciting a sealed document that claimed Murdoch acted in “bad faith” when trying to change an irrevocable trust to leave Lachlan Murdoch in charge.
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A lawyer for Rupert Murdoch told the Times that he intends to appeal the decision. A spokesperson for the three Murdoch children who challenged their father’s efforts issued the following statement: “We appreciate Commissioner Gorman’s decision and hope we can move past this litigation to focus on strengthening and rebuilding relationships between all members of the family. .”
The case weighs heavily on the future of some of the world’s most renowned media properties. Through a family trust, Murdoch, 93, owns about 40% of the voting shares of both Fox, the parent company Fox Newsas well as News Corp., which has the Wall Street Journal and the Times of London among its many vehicles.
After Murdoch’s death, control of the fund would be divided between his four eldest children. Instead, he sought to give voting power to Lachlan, who serves as CEO of Fox and chairman of News Corp.
The case was heard in probate court, which manages the legal processes surrounding the transfer of property after a person’s death, and was not open to the public. Communication vehicles, including New York Times ea CNNunsuccessfully tried to open the proceedings to the public.
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A Nevada probate commissioner ruled in June that Murdoch could change the trust as long as he was doing so in good faith and in the best interests of his heirs. Murdoch argued that the move would benefit all six of his children, as it would prevent Lachlan’s more politically liberal siblings — Prudence, Elisabeth and James — from making Fox News more moderate, thereby damaging its value as a conservative media brand.
The trio chose to share legal advice and sue the father in a trial that began on September 16, arguing that the move violated the original conditions of the trust and that they would be unfairly stripped of their rights. Murdoch has hired his own team of lawyers, including former US Attorney General William Barr, who has been added as a family representative to the trust.
Nevada’s lack of income and inheritance taxes, as well as its confidentiality protections, have made the state a prime location for managing funds as family trusts. Choosing Reno over bustling downtown Las Vegas added another layer of privacy to the closed proceedings, according to Nevada probate attorney Elyse Tyrell.
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Under Nevada law, the losing party can appeal within 14 days, which would elevate the case to the district probate judge; that judge may reverse the previous judge’s recommendation, declaring it erroneous, or maintain it. One party could then appeal to the Nevada Supreme Court.
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