Buzgheia

This case involves fraud by a land developer (Dale Williams) and his operating companies (Leasco) upon a contractor, Hossam Buzgheia. A jury awarded a substantial fraud verdict including punitive damages, and the court awarded attorney’s fees and prejudgment interest, all totaling over $3 million. The jury rendered duplicative awards for breach of written and oral contracts and interference with prospective advantage. In an earlier proceeding, we held Williams posted adequate appellate sureties. (Buzgheia v. Leasco Sierra Grove (1994) 30 Cal.App.4th 766 [ 36 Cal.Rptr.2d 144 ].) We now reverse the judgment.

In part I, we find the court incorrectly instructed on the burden of proof regarding Buzgheia’s contractor’s license. In part II, we find the error prejudicial. In an unpublished portion of this opinion, we address some issues likely to recur on retrial.

First, we set out a sketch of the facts, viewed in favor of the verdict. (Bancroft-Whitney Co. v. McHugh (1913) 166 Cal. 140, 142 [ 134 P. 1157 ]; see People v. Johnson (1980) 26 Cal.3d 557, 575-578 [ 162 Cal.Rptr. 431 , 606 P.2d 738 , 16 A.L.R.4th 1255 ].) The introduction to Buzgheia’s brief states the gist of the…