Ambassador Hotel Co. v. Wei-Chuan Investment

Defendants Wei-Chuan Construction and Development, Inc. (“WCC”), Jau H. Huang, Huei Shyong Huang and Simon Shen appeal the judgment of the district court in favor of plaintiff Ambassador Hotel Co., Ltd. (“Ambassador”) and counter-claimant Kopin International, Inc. (“Ko-pin”) (together, “plaintiffs”). In the action below, Ambassador brought federal securities fraud, common-law fraud and breach of contract claims that arose from its decision to join a hotel venture proposed by the defendants, which failed. Defendants counterclaimed against Ambassador and added claims against Kopin, alleging that Kopin mismanaged the project. In turn, Kopin counterclaimed, asserting claims against defendants for fraud, breach of fiduciary duty, and breach of contract.

The district court found defendants ha-ble for violations of the federal securities laws, fraud, breach of contract, and breach of fiduciary duty. Defendants argue that the evidence in the case does not support the judgment. Defendants also challenge the district court’s award of damages to *1021 both Ambassador and Kopin as double recovery for Ambassador based on Ambassador’s ownership of Kopin stock. Finally, defendants challenge the…