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Breach of Contract
Legal Malpractice
Misuse of Proxy and Fraud

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

William E. Burby

Court

L.A. Superior Central


Attorneys

Plaintiff

Burton Mark Senkfor

Thomas L. Watters


Defendant

Don Mike Anthony


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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