KB Equities, Incorporated v. KFW Corporation and Carlsmith, Ball, et al.
Published: Oct. 9, 1993 | Result Date: Sep. 8, 1993 | Filing Date: Jan. 1, 1900 |Case number: BC023955 – $4,023,000
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Joseph Z. Perry
(technical)
Robert E. Hinerfeld
(technical)
Defendant
Thomas S. Loo
(technical)
Thomas E. Higgins
(technical)
Facts
Plaintiff owned 44.4% of KFW Corporation, a computer research and development company, and had a representative on the KFW Board of Directors. Defendants Carlsmith, Ball, et al. and Patricia Mulryan were attorneys for KFW and for a different 44.4% shareholder of KFW. Defendants prepared a proxy in 1990 which Plaintiff signed in favor of the other 44.4% shareholder. At Defendants' recommendation, Plaintiff's proxy was thereafter used (on January 16, 1991) to remove Plaintiff's representative from the KFW Board of Directors, and then Plaintiff's stock ownership in KFW was diluted from 44.4% to less than 6%.
Settlement Discussions
Defendants contend there were no demands and no offers, but Defendants indicated they might pay costs of defense (about $50,000.00).
Damages
Loss of ownership interest in KFW. Plaintiff sought unspecified punitive damages.
Deliberation
3 days
Poll
10-2 on $3,100,000 compensatory damages, 12-0 special findings of oppression, fraud & malice, 11-1 on $23,000 punitive damages against Mulryan, 12-0 on $900,000 punitive damages against Carlsmith
Length
17 days
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