Facts

Camille Abat, Miriam Choi, Steven Chapnick, Joseph Fahs, and Elizabeth Tagle were former employees of Guess Jeans co-founder Georges Marciano. Marciano sued the employees alleging, inter alia, fraud, conspiracy, and embezzlement. The five former employees all filed separate cross-complaints against Marciano alleging defamation and intentional infliction of emotional distress.

PLAINTIFF/CROSS-DEFENDANT'S CONTENTIONS:
Marciano claimed the former employees stole his emails and other personal information, and conspired to sell his art and valuable wine from his collection. Marciano also alleged that the former employees conspired to, and did, steal millions of dollars in cash from him.

DEFENDANT/CROSS-COMPLAINANTS: Defendants denied the allegations. Cross-complainants claimed that Marciano sent emails and letters to law enforcement agencies, government agencies, and to their former colleagues and other individuals accusing them of fraud and theft. They also alleged that Marciano's harassment and treatment of them was extreme and outrageous, and caused them severe emotional distress. Cross-complainants further claimed that Marciano acted with malice, oppression, and/or fraud warranting punitive damages.

Damages

Marciano claimed more than $400 million worth of stolen assets. Cross-complainants sought compensatory damages as well as punitive damages.

Result

Judgment in favor of cross-complainants with each receiving an award of $69,044,000 in compensatory damages and $5 million in punitive damages.

Other Information

According to attorney Jennifer DeLoach: On Dec. 31, 2008, Judge White granted terminating sanctions against Marciano on the complaint, ordering that his complaint be stricken. This was the result of his refusal to comply with the rules of discovery or with court orders. The following month, on Jan. 27, 2009, Judge White granted terminating sanctions against Marciano on the cross-complaints, ordering his answers to the cross-complaints be stricken. This was also the result of Marciano's repeated refusal to comply with court orders and his conduct during discovery. The court held a liability hearing on May 18 and May 21, 2009, and determined that each of the cross-complainants had proved prima facie cases to support the allegations in their complaints. The court also determined that Marciano had acted with the requisite malice and/or oppression to award punitive damages, and set a jury trial for assessment of damages for July 20, 2009. The jury trial began on July 20. The cross-complainants presented closing arguments on July 25, and the jury began deliberations that day. On July 27, the jury returned verdicts awarding each cross-complainant $69,044,000 in compensatory damages and $5,000,000 in punitive damages.