Facts

The plaintiffs alleged breach of contract and fraud against the defendant, John Switzer, InvestorÆs Edge and
Hartcourt Companies, from a contract entered into between the plaintiff, Harvey Productions, and defendants
Switzer and InvestorÆs Edge. The contract was for the benefit of Hartcourt Companies as Harvey was
producing and syndicating a financial news television show on CNBC that would highlight the business of
Hartcourt, a public company. InvestorÆs Edge had a contract with Hartcourt to provide public relations.
The defendants were to pay the plaintiff $50,000 worth of shares (unrestricted trading) in Harcourt Companies
in exchange for production and media consulting services.
The plaintiffs contended that the defendant furnished the plaintiff with restricted shares and not the unrestricted
shares as had been promised.
While awaiting the restriction to expire, the stock appreciated in value to over $950,000. The plaintiff never
received the unrestricted shares.
The defendant Harcourt settled with the plaintiff for an undisclosed sum. InvestorÆs Edge
and Switzer did not answer the complaint. Damages and liability were established and then the
court entered a judgment against defendants InvestorÆs Edge and Switzer.