Defendant Robert B. Surles appeals from the final judgment and decree entered on the jury verdict in favor of plaintiff Cornell Corrections of California, Inc. on Cornell’s claims for fraud and punitive damages brought against multiple defendants. Surles enumerates several errors that he contends entitle him to a new trial. First, he contends that the trial court erred in entering judgment on an allegedly confusing and internally inconsistent jury verdict. Second, Surles contends that the trial court erred in entering any judgment against him because he did not receive sufficient notice of trial. Third, he contends that the trial court erred in entering a judgment awarding punitive damages against him because the jury did not apportion punitive damages against every defendant found liable for fraud; there was insufficient evidence to support the jury’s apportionment of punitive damages; and there was insufficient evidence to support an aggregate punitive damages award in excess of $250,000. For the reasons discussed below, we affirm on condition that the punitive damages award against Surles be properly reduced. “On appeal, we examine the record in the light most favorable to the verdict and judgment.” Citation omitted. Compris Technologies v. Techwerks , 274 Ga. App. 673, 674 618 SE2d 664 2005. So viewed, the evidence shows that plaintiff-appellee Cornell provides correctional and rehabilitative services to state and local governments across the country. In 2003, defendant Longboat Global Advisors, LLC agreed to provide financing to a contractor that was constructing a juvenile correctional facility for Cornell in Colorado the “Colorado Project”. As part of the financing arrangement, on August 28, 2003 Cornell entered into an “Escrow Disbursement Agreement” the “Agreement” under which Cornell agreed to deposit $12,937,500 into what it believed was an escrow account at Bank of America in Atlanta. Under the Agreement, Bank of America, acting as escrow agent, was authorized to disburse Cornell’s deposited funds only after completion of the Colorado Project. The Agreement was executed by Cornell, the Colorado contractor, and defendant Edgar J. Beaudreault as managing director of Longboat. The Agreement also contained the purported signature of an officer with Bank of America.
Following execution of the Agreement, Beaudreault provided Cornell with a Bank of America account number and wiring instructions, after which Cornell wired the money into the alleged escrow account. Unbeknownst to Cornell, however, an escrow account had not been created, and Beaudreault had forged the signature of Bank of America on the Agreement. Without Cornell’s knowledge or consent, Beaudreault had instead arranged for Cornell’s funds to be wired into a Longboat securities account, after which he transferred the funds into a different, newly-created bank account from which he could freely remove the funds. By the time Cornell discovered that it was being defrauded, Beaudreault had secretly removed $5,100,000 of Cornell’s funds, which he had transferred to defendant Howard Sperling and his investment company, defendant Hasco Financial, for use in other investment projects. Additionally, defendant-appellant Surles had received $495,000 of Cornell’s funds, either directly from Beaudreault or indirectly through Sperling, for the construction of a marina in Chicago. Furthermore, Beaudreault had transferred $287,500 of Cornell’s funds into his own checking account, and his wife had received $170,500 of the funds indirectly through Sperling. In total, once the direct and indirect transfers to various parties were taken into account, $5,644,051.80 of Cornell’s deposited funds had been removed in violation of the Agreement.
