DeCamp

Defendants First Kensington Corporation (hereinafter Kensington) and Barry S. Marlin (hereinafter Marlin) appeal from the judgment of the superior court awarding plaintiff Jack M. DeCamp compensatory and punitive damages totaling $72,525 on plaintiff’s complaint for money had and received and fraud. The cause was heard as an uncontested matter after the default of defendants was taken as a result of defendants’ failure to file a verified answer to the verified complaint.

The complaint alleged that defendants had jointly induced plaintiff to turn over $35,000 to Kensington. The misrepresentation charged was that the money would be invested in fixed deposits in banks in the United Kingdom where a high rate of interest would be received, whereas in fact no such deposits were ever intended or made and defendants simply converted the funds to their own use.

Defendants’ demurrers to the complaint were overruled and, on September 20, 1976, defendants filed an answer comprising simply a general denial signed by defendants’ counsel. The lack of verification was explained as follows:

On Februaiy 4, 1977, plaintiff filed a motion to strike this answer or, alternatively, for…