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Paul v. Destito

Trial court should have conducted a hearing on plaintiff's litigation expenses after it properly determined that the evidence did not support that portion of the jury's award.

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Ralph Destito sued Douglas Paul, Sharon Paul, Catspaw Productions, Inc. “CPI”, Catspaw, Inc. “Catspaw”, Atlanta Catco, Inc. “Catco”, and Recording Studio, Inc. “RSI” for fraud, negligent misrepresentation, conspiracy to breach fiduciary duty, negligent breach of fiduciary duty, alter ego liability, amounts due on a promissory note, attorney fees, costs, and punitive damages. CPI counterclaimed, asserting that Destito owed it in excess of $44,000.

A jury found for Destito on each count and against CPI on its counterclaim. With respect to punitive damages, the jury further concluded that defendants “acted, or failed to act, with a specific intent to harm Plaintiff Ralph Destito.” The trial court denied the majority of defendants’ motions for directed verdict and judgment notwithstanding the verdict “j.n.o.v.”. As to Destito’s claim for litigation expenses, however, the trial judge granted defendants’ j.n.o.v. motion. The parties filed cross-appeals, challenging various aspects of the trial court’s decision on the motions for directed verdict and j.n.o.v. For reasons that follow, we affirm and remand for further proceedings.

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