DuBarry International, Inc. v. Southwest Forest Industries, Inc.

Defendant and appellant Southwest Forest Industries, Inc. (Southwest) appeals the judgment entered following a jury verdict, awarding plaintiff and respondent DuBarry International, Inc. (DuBarry) 1 $1,502,604-in damages for breach of an exclusive agency agreement, $1,502,604 for *556 bad faith denial of the existence of such agreement, and $3.8 million in punitive damages.

While the damage award for breach of contract must be affirmed, we conclude that (1) a duplicative award of compensatory damages was made and (2) the award of punitive damages was improper because there was no legal or factual basis for concluding that tortious misconduct had occurred. In reaching this latter conclusion we necessarily examine the tort recognized by the Supreme Court’s decision in Seaman’s Direct Buying Service, Inc. v. Standard Oil Co. (1984) 36 Cal.3d 752, 769-770 [ 206 Cal.Rptr. 354 , 686 P.2d 1158 ], and find that its limited scope will not support DuBarry’s claim. We therefore will modify the judgment by striking both the duplicative compensatory damages and the entire award of punitive damages. As so modified, the judgment will be affirmed.

Factual and Procedural…

I dissent, except as to the affirmance of the judgment on the contract cause of action as to which I concur.

In addition I dissent from the order of publication and I dissent from the majority’s refusal to dismiss the appeal.

The majority’s only apparent reason for refusing to dismiss the appeal and to thereafter publish the opinion is to discuss whether Seaman’s Direct Buying Service, Inc. v. Standard Oil Co. (1984) 36 Cal.3d 752 [ 206 Cal.Rptr. 354 , 686 P.2d 1158 ], should be expanded.

Since, however, there is no need to reach this issue, there is no reason to publish the opinion and there is no reason not to dismiss the appeal pursuant to the stipulation of the parties.

Substantial Evidence Supports the Bad Faith Denial of the Contract

The appellate court must examine the record to determine whether the evidence supports the jury’s determination finding the bad faith denial of the contract.

There is evidence that Fallaw (Southwest’s representative) repudiated the existence of the contract by denying DuBarry’s authority to present the September 3d terms, even though Russell had conversations with Fallaw about the offer. After Castle & Cooke accepted the offer, Fallaw…

Defendant and appellant Southwest Forest Industries, Inc. (Southwest) appeals the judgment entered following a jury verdict, awarding plaintiff and respondent DuBarry International, Inc. (DuBarry) [1] $1,502,604 in damages for breach of an exclusive agency agreement, $1,502,604 for bad faith denial of the existence of such agreement, and $3.8 million in punitive damages.

While the damage award for breach of contract must be affirmed, we conclude that (1) a duplicative award of compensatory damages was made and (2) the award of punitive damages was improper because there was no legal or factual basis for concluding that tortious misconduct had occurred. In reaching this latter conclusion we necessarily examine the tort recognized by the Supreme Court's decision in Seaman's Direct Buying Service, Inc. v. Standard Oil Co. (1984) 36 Cal.3d 752, 769-770 [ 206 Cal. Rptr. 354 , 686 P.2d 1158 ], and find that its limited scope will not support DuBarry's claim. We therefore will modify the judgment by striking both the duplicative compensatory damages and the entire award of punitive damages. (1)(See fn. 2.) As so modified, the judgment will be affirmed. [2]

The…