Heacock

Plaintiff Marie Heacock and defendants Ivor Sack and Ivorette-Texas, Inc. (collectively Sack) appeal from a judgment awarding Heacock nominal compensatory damages of $1 and punitive damages of $150,000 arising out of Heacock’s expulsion from a joint venture with Sack and defendant David Pain. We affirm the judgment of liability against Sack and the judgment in favor of Pain. We conclude the trial court erred, however, in directing a verdict on the amount of compensatory damages and a retrial on that issue is required. We also conclude for a variety of reasons that the jury must be permitted to recalculate the appropriate amount of punitive damages. We therefore reverse as to the amount of both compensatory and punitive damages and remand for a limited retrial on those issues.

Factual and Procedural Background

Heacock was employed as a store manager by the Upstart Crow Corporation which operated a chain of bookstore coffeehouses, one of which was located in the Seaport Village shopping center in San Diego. When Upstart Crow declared bankruptcy, Heacock learned it might be possible to purchase the Seaport Village store. She began discussions with the company, negotiating…