December 22, 2010

Best Financial v. Chapman: $625,000 in punitive damages affirmed

In this unpublished opinion, the California Court of Appeal (Fourth Appellate District, Division One) affirms punitive damages totaling $625,000 against three defendants in a real estate fraud action.  The court rejected the defendants' "conclusory" argument that the evidence did not support an award of punitive damages.  Interestingly, none of the defendants challenged the amount of the punitive damages, even though the ratios were fairly high, including a ratio in excess of 10 to 1 for one of the defendants.