Holiday Group Partners v. McPherson CA4/1

INTRODUCTION

Appellant Steve McPherson appeals from a default judgment and the trial court’s subsequent denial of his motion to set aside the default judgment. He asserts we must reverse because the law favors resolution of cases on their merits. He also contends the trial court’s prior ruling that there was no contract between the original plaintiff, Gregorio Acosta,1 and Appellant precluded entry of a default judgment against Appellant. Finally, Appellant challenges the sufficiency of the evidence supporting the punitive damages award. We disagree that reversal is warranted on these grounds and therefore affirm the default judgment.

FACTUAL AND PROCEDURAL BACKGROUND

On November 22, 2019, Acosta filed a complaint against Blue Chip Thoroughbreds, LLC (Blue Chip), Tom Mansor, and Appellant (collectively, the defendants). He alleged claims of breach of contract, fraud in the inducement, constructive fraud, and breach of fiduciary duty based on written and oral contracts he made with Blue Chip to purchase interests in several racehorses and a $40,000 loan he made to Appellant. Acosta claimed he invested $224,500 as an equity position in the ownership and sale of the horses, but…