Coombe

Cross-complainant and appellant, Pat Rose Associates (PRA), a limited partnership, sued cross-defendants and appellants, Mervyn G. Flory, Jr., D. Wesley Coombe and others not parties to this appeal, for (1) breach of a hotel lease and (2) fraud in the sale of the hotel. The jury found for PRA and awarded it compensatory and punitive damages exceeding $9 million.

Coombe and Flory contend that (1) the trial court erroneously failed to dismiss when PRA did not bring the case to trial within five years; (2) PRA elected a contract remedy before trial and was thus precluded from recovering for fraud; and (3) the jury awarded excessive damages for fraud. Coombe asserts that he is entitled to attorney’s fees as the prevailing party in an action on a contract. Flory contends that (1) the award of punitive damages was excessive, and (2) evidence was improperly admitted. PRA cross-appeals, contending that if the court determines that PRA’s fraud recovery is precluded by an election of remedies, then the award of contract damages was erroneous as a matter of law.

Factual and Procedural Background

Flory was the president of Kingsway Services, Inc. (Kingsway), and Coombe was its…