Katy Perry may have a new real estate law named after her — and not in a good way.
The “Roar” singer and her partner, Hollywood actor Orlando Bloom, are caught up in a legal battle with Carl Westcott, the 84-year-old founder of 1-800-Flowers. Perry's business manager, Bernie Gudvi, acted as the singer's agent when she and Bloom purchased Westcott's $15 million mansion in Montecito, California.
According to court documents obtained by NBC News, Westcott filed a lawsuit against Gudvi in Los Angeles Superior Court stating that he was not of sound mind when he agreed to sell his home in 2020.
However, Perry and her manager won't back down from the deal.
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Now all the parties are embroiled in a contentious court case that's inspired an act called The PERRY Act, which aims to protect seniors from bad real estate transactions. (Note: TODAY.com has found that the website for The PERRY Act is mainly accessible through mobile devices.) The PERRY Act has not gone through any legislative process but does have the endorsement of more than 30 politicians.
NBC News has reached out to Perry for comment but has not heard back.
Here's what we know about the real estate battle and the act it inspired.
Entertainment News
Perry is battling Carl Westcott, founder of 1-800-Flowers, over the purchase of his home
Perry's legal battle started in July 2020 when their manager, Bernie Gudvi, attempted to purchase a mansion on their behalf for $15 million from Carl Westcott, the now 84-year-old founder of 1-800-Flowers.
Westcott's lawyers say he was of 'unsound mind' when he agreed to the deal
Westcott’s lawyers explained in court documents that the elderly Westcott was of "unsound mind" when he agreed to the deal with Perry's manager in July 2020.
The complaint says that, Westcott, who suffers with Huntington’s disease, was on opiate pain medication following a six-hour back surgery.
Soon after, when Westcott felt "mentally clear again," he tried to back out of the deal. But Perry and her manager were “not willing to walk away” from the purchase, Wescott’s lawyers stated in court documents.
Perry's agent's team says Westcott was 'competent' enough to sell his home
Gudvi's lawyers argue that Westcott, who had purchased the home only weeks before making the deal in July 2020, was "competent" and eager to sell his home.
“He was competent when he hired an experienced real estate broker, vetted the brokerage commission rate, arranged showings of the Property, entertained multiple offers, sought alternative houses, and ultimately negotiated a highly lucrative sale,” Gudvi’s lawyers said in a May 2022 court filing seeking to dismiss Westcott's case.
Perry's agent is countersuing for more than $5 million
The “California Gurls” singer's agent is countersuing Westcott for millions in damages.
Court documents state that Gudvi is seeking $3.21 million for "loss of use of the property," as well as an additional $2.7 million in damages caused by her "(1) holding off on selling her residence at the time and thus continuing to pay the mortgage; and (2) renting a comparable property in the area once she did sell her residence because she could not move into the subject property due to Westcott's actions."
Westcott's family members are now backing The PERRY Act
As the two parties continue to fight for the home, Wescott’s family members are backing a campaign for a new real estate act called the Protecting Elder Realty for Retirement Years, or The PERRY Act.
“The Katy PERRY Act addresses the risks of elder financial abuse, especially as it relates to property and real estate sales and transfers,” a website for the act says.
“The Act establishes a 72 hour cool-down period during which either party involved in a contract for conveyance of a personal residence, in which one party is over the age of 75, can rescind the agreement without penalty,” it added.
The website includes the names and testimonies of more than 30 bipartisan state and local politicians across the U.S. who back the act.
Chart Westcott, son of Carl Westcott, said he would like to see the PERRY Act protect other seniors who end up in undesirable business deals.
“We hope lawmakers will adopt protections for seniors in real estate transfers so that what happened to my father will never happen to anyone else’s aging parents or grandparents ever again,” the younger Westcott said in a statement.
TODAY.com reached out to The PERRY Act's organizers to see if there are plans to formally introduce it as legislation.
Perry has been in other battles with seniors over real estate purchases in the past
The case is not the first time Perry has become embroiled in a legal battle over real estate with senior citizens.
In 2105, the 13-time Grammy nominee purchased a former Catholic convent in Los Angeles for $15 million, despite objections from the elderly nuns who once lived there.
Though the nuns wanted to sell the 22,000-square-foot property to a developer, a judge ruled in Perry’s favor, explaining that it was the Catholic Church who owned the convent and not the nuns.
During a court appearance for a related legal hearing, an 89-year-old nun who was involved in the case collapsed and died, Reuters reported at the time.
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