Facts

Plaintiff James Cano filed suit against defendant Alberto Giacomelli in connection with an agreement the two had made regarding a La Jolla-area gym that Giacomelli owned.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended he met Giacomelli at Giacomelli's gym. At Giacomelli's request, Cano loaned him $55,000 for expenses of the gym operation. Soon thereafter, Giacomelli suggested that Cano contribute additional, more substantial sums to the business, and that Cano would become a co-owner or partner. Plaintiff alleged that over the course of five years, he contributed over $1 million to the business, and that Giacomelli assured him that his investment was safe because Giacomelli had over $1 million in assets in his native Italy. Plaintiff further alleged that without his knowledge or consent, most of the money he contributed was used by Giacomelli for personal expenses of Giacomelli and his family, including luxury hotels, vacations, and restaurants.

DEFENDANT'S CONTENTIONS:
Giacomelli alleged that an investment adviser who was going to help obtain private equity to fund the expansion of the gym misappropriated much of the money contributed by plaintiff. He further contended that plaintiff knew and agreed that Giacomelli could use the funds plaintiff contributed for his personal expenses, since plaintiff was buying in to the business.

Giacomelli cross-complained against plaintiff for approximately $60,000, which he claimed plaintiff agreed to pay toward a lawsuit against the gym.

Result

The jury found in favor of the plaintiff and awarded him $540,000. The jury also found in favor of cross-defendant on Giacomelli's cross-complaint.

Other Information

FILING DATE: Aug. 1, 2012.

Deliberation

one day

Poll

10-2 (on findings of intentional misrepresentation and breach of fiduciary duty)

Length

four days