Facts

Pursuant to an employment agreement, defendant iFreedom Communications Incorporated and other related entities hired plaintiff Paul Thomas Chester as the chief marketing officer. Plaintiff worked for defendants from June 18, 2004, to Sept. 29, 2005, when he was terminated. Plaintiff sued defendants alleging breach of employment contract, violations of wage and hour laws, and retaliation. Defendants moved to compel arbitration.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that the defendants' actions constituted a breach of the employment contract, violated the California Labor Code and constituted fraud. Defendants knowingly withheld payments and compensation owed to plaintiff. Plaintiff entered into an employment agreement with defendants wherein plaintiff was promised a percentage of all sales as well as stock in the company. Defendants failed to pay on the contract and also failed to provide stock in the company as required by the parties' contract.

DEFENDANTS' CONTENTIONS:
Defendants contended that they fulfilled all of their obligations.

Settlement Discussions

Defendants offered approximately $5,000 to settle.

Damages

Plaintiff alleged $976,902,274 in damages and sought punitive damages.

Result

At arbitration before the Hon. William F. McDonald (Ret.) of JAMS, the arbitrator found defendants' conduct was willful, wanton, malicious, and oppressive. Plaintiff was awarded $3,903,820,195 in compensatory and punitive damages, plus interest of $203,013,683. A judgment of $4,106,833,878 was granted against defendants, jointly and severally, on plaintiff's petition to confirm the arbitration award.

Other Information

Defendants' attorney was substituted out as counsel in December 2007. Thereafter, defendant Timothy Ringgenberg, founder and principal, represented himself and the companies he founded. Post-judgment interest will accrue at a rate of more than $1.125 million per day until the judgment is paid. Defendants were sanctioned for failing to comply with discovery orders and for failing to pay arbitration fees. FILING DATE: Dec. 1, 2007.