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Washoe County probate commissioner rules against Rupert Murdoch, New York Times reports


The New York Times reported Monday that Rupert Murdoch lost his bid in a Reno courtroom to give control of his media empire to his son Lachlan.

According to the Times, which received a copy of the sealed court ruling by probate commissioner Edward Gorman, Rupert and Lachlan acted in "bad faith" to change a trust that splits control of his media empire among Murdoch's four oldest children.

Trusts proceedings in Nevada are closed to the public. State law allows for redaction and sealing of information in court filings without prior court orders.

Gorman filed his 96-page decision Saturday, according to the Times. The Times said the ruling was "scathing," and Gorman called Murdoch's plan a "carefully crafted charade."

It could be appealed to a district judge.

In September, 93-year-old Murdoch, his children and teams of lawyers were in downtown Reno for the battle over the fate of the mogul's holdings, including Fox News, The Wall Street Journal and The New York Post.

Murdoch wanted Lachlan, who runs the vast collection of publishing and television companies, to have full control after his death. But to do that, Murdoch had to break an irrevocable trust set up during his second divorce.

The trust terms allow Murdoch the right to make changes if he is acting in benefit of his beneficiaries. Gorman rejected that argument.

The way the trust stands, operational control will be shared equally among Murdoch's four oldest children — Lachlan, James, Elisabeth and Prudence Murdoch.

For a week in September, a row of black SUVs with dark windows lined up outside the Washoe County courthouse. Both sides zipped in and out of blocked-off parking meters designated for the billionaire clan just steps from the courthouse. The entrances were guarded by Washoe County Sheriff's deputies who unsuccessfully tried to shoo away lingering media.

Dawn Chmielewski of Reuters contributed to this report.