Facts

David Calvert-Jones was the CEO of Helinet Aviation Services LLC, a helicopter company in Van Nuys, from July 2005 through February 2007, when he was terminated by Helinet. Plaintiff had no written employment agreement. He claimed that when he was offered the job by Alan Purwin, the owner and chairman of Helinet, he was verbally promised 5 percent stock options in the company, among other things. Helinet denied ever making such a promise. After plaintiff was terminated, he filed suit in March 2007 alleging that he was wrongfully terminated, defrauded, defamed, that his vehicle was converted, and that he did not receive full compensation. Helinet filed a cross-complaint, including claims of breach of fiduciary duty (self-dealing) and fraud, among other things. Plaintiff's claim for breach of contract related to the stock options was the only claim submitted to the jury.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that he was verbally promised the stock options upon being offered the job of CEO.

DEFENDANTS' CONTENTIONS:
The defense denied that plaintiff had been promised stock options. Further, defendants alleged that Jones used his position to gain improper discounts on Helinet's goods for himself and for companies he was associated with, and other activities that financially harmed the company.

Damages

The plaintiff claimed lost wages and a five percent share in the company. According to plaintiff's counsel: At trial, the only damages claimed by plaintiff were the 5 percent share of Helinet. Plaintiff's valuation expert testified that the increase in fair market value of a 5 percent minority interest in Helinet from the time plaintiff was hired as CEO to the time that he was fired was $1,920,000. Helinet's valuation expert testified that the change in value during this time period for a 5 percent minority interest in Helinet was $88,000. On the cross-claims, an economist for Helinet testified that Helinet's damages on the cross-claims were $422,000. Plaintiff denied any wrongdoing, but admitted at trial that he leased a helicopter on one occasion for personal use without paying and that he placed his new helicopter on Helinet's insurance policy without permission.

Result

The jury returned a unanimous verdict in favor of plaintiff for $1,920,000. On the cross-claims, the jury award $12,480 (voting 9-3) on theories of breach of contract and negligence, but rejected the breach of fiduciary duty and fraud claims. On Sept. 8, 2009, the court granted Helinet's motion for JNOV, reversing the verdict in favor of the plaintiff.

Other Information

FILING DATE: March 27, 2007.

Deliberation

1 hour, 45 minutes

Length

two weeks