Streetscenes
Streetscenes v. ITC Entertainment Group, Inc.
Opinion
lead Opinion
Munoz, J.
A movie production company hires an executive to look for projects, with the movie production company having the right of “first refusal” as to any projects the executive finds. The producer is housed in the movie production offices and has all of the trappings of an executive producer of the company. When the producer finds investors for a movie, he promises millions in profits and then proceeds to fraudulently convert over $1 million from those investors.
At trial, the movie production company disavows the executive producer’s actions and claims he was an independent producer. The jury finds he was an agent and awards damages for moneys invested and lost in addition to lost profits and punitive damages. On this appeal the fraud of the producer is not disputed, but agency and lost profits are.
We reverse that portion of the judgment awarding damages for lost profits and remand for a new hearing on the issue of the amount of punitive damages.
*237 Facts
The appellants in this action are ITC Entertainment Group, Inc., ITC Entertainment Group Ltd. and ITC Distribution, Inc. (ITC). Respondents are StreetScenes L.L.C. and CrewCast L.L.C. (respondents). 1 The principals of…