Facts

Jeff Cherun sued Bruce Makowsky and Quantum Leap Investments LLC.

Cherun was the founder and owner of Teatro Custom Installations, which installed customized home theaters and audio-visual systems in high-end residences in Los Angeles.

PLAINTIFF'S CONTENTIONS:
In August 2010, Cherun and his company were hired by Makoswsky to install and maintain audiovisual systems and other technology in Makowsky's $15 million Malibu residence. Cherun also made installations at other properties that Makowsky subsequently purchased and contended that the two became friends. Cherun alleged that he pitched an idea to Makowsky about a product, an iPad dock, which was prompted by Makowsky's interest in investing in a new business idea. Cherun alleged that he and Makowsky entered in to a business venture, and that he acted according to the belief that the two had such a relationship. Cherun claimed Makowsky also acted accordingly, and even referred to the two of them as "co-creators" and "partners" in the business. Cherun contended that he continued to improve on his product, and came up with an entertainment bundle called "INFOtainment." Cherun alleged that QVC became highly interested in it. However, when he approached Makowsky about documenting their relationship in writing, Makowsky resisted. Cherun alleged that Makowsky thereafter formed Quantum Leap to conduct the business operations of INFOtainment. Cherun alleged that Makoswky thereafter marketed INFOtainment to QVC, and shut him out of the whole dealings because Makowsky did not want to share any of the partnership profits. Cherun alleged that Makowsky minimized his contributions, and told him to step down from his partnership role to become a distributor. Cherun alleged that he refused Makowsky's offer. Cherun alleged that QVC began selling the INFOtainment product, and has sold millions of dollars worth of the INFOtainment products since October 2012, without Cherun receiving any share of the profits.

Cherun sued Makowsky, and asserted causes of action for breach of oral partnership agreement, breach of fiduciary duty, unjust enrichment, and accounting. Cherun contended that Makowsky never disputed that they were co-creators of the business or that he was the one who came up with the business idea to begin with. As such, Cherun claimed that Makowsky and his company owed him from the profits made through sales of INFOtainment products.

DEFENDANTS' CONTENTIONS:
Defendants issued a general denial, and asserted various affirmative defenses.

Result

The jury rendered a verdict in favor of Cherun and awarded him $536,000 in compensatory damages, plus $1.78 million in punitive damages, for a total sum of $2.316 million.

Other Information

FILING DATE: Feb. 6, 2013.