UPDATE 1-General Growth to appeal Calif decision

(Adds background)

NEW YORK, Nov 13 (Reuters) - General Growth Properties Inc(GGP.N: Quote, Profile, Research, Stock Buzz), the second-largest U.S. mall operator, said on Tuesday that it would appeal a $15 million punitive damage award and a related $74.2 million award that a California jury rendered against it last week.

Both decisions followed a lawsuit against the Chicago-based company by Caruso Affiliated Holdings LLC involving Glendale Galleria, a California mall.

The damages resulted from delays to Caruso's project.

The lawsuit dates back four years when Caruso accused General Growth of engaging in anti-competitive practices and hindering the development of the 900,000 square foot open-air shopping center Caruso was building across the street from Glendale Galleria. General Growth acquired the Glendale mall in 2003 in a joint venture with the New York Common Retirement Fund.

The case focused on issue of a lease for the Cheesecake Factory restaurant.

Late Nov. 8, the jury ordered the owners of the Galleria to pay Caruso $74.2 million in compensatory damages.

General Growth said it would lower its previously reported third-quarter results by its share of the verdict, or $37 million, to core funds from operations of 68 cents per share from 80 cents per share.

It also reduced third-quarter fully diluted FFO to 70 cents per share from 83 cents per share.