Kaneko

I. BACKGROUND

A. The Complaints Erika filed her initial form complaint in this matter in July 1993. It alleged three causes of action against Toshio: fraud, breach of contract, and common counts. The complaint also included an exemplary damages attachment that generally alleged Toshio was guilty of malice, fraud, and oppression. The complaint prayed for damages in the amount of $229,407, interest and attorney fees according to proof, $750,000 in

2 punitive damages, and such other legal and equitable relief as the court deemed just and proper. Toshio filed a form answer to this original complaint, asserting a general denial. Erika then filed a first amended complaint (the operative complaint) in May 1994, which named two additional defendants: Hideaki Masui (Toshio’s father) and H. Masui and Company (the Company). The operative complaint asserted all three causes of action pled in the original complaint plus new claims for concealment, conversion, and additional common counts against all defendants. It again included an exemplary damages attachment that generally stated defendants were guilty of malice, fraud, and oppression. The operative complaint sought damages in the…