Facts

Simplon Corp. was created for the purpose of engaging in real estate development by John Scull and Charles Evans III. In late 2004, Scull negotiated and directed the acquisition of several parcels of property in downtown San Diego for the Simplon Ballpark Project. Scull and Evans rose over $11 million from private investors and approximately $38 million in loans. In March 2008, the project went belly-up and Simplon Ballpark LLC filed for bankruptcy.

PLAINTIFF'S CONTENTIONS:
Simplon Ballpark sued Scull and Evans, alleging that the defendants had breached their fiduciary duties. Simplon contended that Scull and Evans breached their duties by self-dealing, commingling their assets, failing to segregate money and property, and failing to issue tax returns. Simplon also contended that the defendants took advantage of their control over the project and its funds, causing it to fail.

DEFENDANT'S CONTENTIONS:
Scull denied any wrongdoing, claiming that he received no money in connection with the project. He alleged that instead, he incurred substantial losses when the project failed. He also contended that Simplon was precluded by res judicata, collateral estoppel, lack of standing, lack of authority to prosecute such actions, and waiver of such claims.

Damages

Simplon sought recovery of $5,501,919 in damages.

Result

The court ruled in favor of Simplon and initially awarded $5,501,919 in total damages. However, following trial, the court granted defendants' judgment notwithstanding the verdict, rendering a defense judgment.