Facts

In an underlying case, plaintiff G. Terry Jones obtained a judgment against Adam Radly, the CEO of defendant Inova Technology, a publicly traded company. Jones subsequently obtained an assignment order that ordered Inova to pay to Jones any amounts Inova owed to Radly. Inova paid nothing to Jones. However, Inova did pay $20,000 per month to Southbase II LLC, which was entity affiliated with Radly.

Jones requested damages, a permanent injunction and a receiver to take over Inova.

PLAINTIFF'S CONTENTIONS:
Jones contended that the $20,000 per month that Inova was paying Southbase was a disguised compensation to Radly. In doing so, Jones claimed that Inova and Southbase conspired with Radly to violate the Uniform Fraudulent Transfer Act. Jones also contended that Inova's conduct was willful and malicious warranting punitive damages.

DEFENDANT'S CONTENTIONS:
Defendants contended that the money transferred to Southbase II LLC was not disguised compensation and that it was for bona fide services rendered by Southbase II LLC to Inova.

Damages

Jones requested $852,813 in compensatory damages.

Result

Following a bench trial, judgment was entered for $1,279,219 ($852,813 compensatory; $426,406 punitive). The court also entered a permanent injunction, and appointed a receiver.

Other Information

FILING DATE: July 9, 2010.