Bardis

In this case involving self-dealing, secret markups and clandestine commissions arising out of a real estate partnership, a jury awarded plaintiffs Christo Bardis and Lloyd and Nancy Arnold, a California limited partnership, $165,527.63 in compensatory damages and $7 million in punitive damages against defendants Marvin L. Oates and his corporation A&A Properties, a California corporation.

Defendants launch a twofold attack on the judgment: First, without contesting the factual underpinnings of the jury’s finding that they committed fraud and breach of fiduciary duty, defendants claim that plaintiffs failed to show they were damaged and therefore defendants were entitled to judgment as a matter of law. Second, assuming compensatory damages were properly assessed, defendants contend the punitive damages award was so grossly excessive that it must be vacated.

We find no error in the award of compensatory damages. However, in light of recent due process constraints laid down by the United States Supreme Court in State Farm Mutual Insurance v. Campbell (2003) 538 U.S. 408 [ 155 L.Ed.2d 585 , 123 S.Ct. 1513 ] (Campbell), we shall modify the punitive damages award from $7…