Gunderson v. Wall
Respondent Jon M. Gunderson (Gunderson) filed suit against appellants Richard Wall (Wall), Welded Fixtures, Inc. (Welded), and Christopher Gruys (Gruys) (collectively, Appellants) for violation of the California Uniform Fraudulent Transfer Act (UFTA) (Civ. Code,[1] 3439 et seq.). The gravamen of Gundersons complaint was that Gruys fraudulently transferred to Wall and Welded approximately $1.3 million in funds that belonged to Gunderson. Following a jury verdict in his favor, Gunderson was awarded compensatory damages against Wall and Welded, and punitive damages against Wall, Welded and Gruys. For the reasons set forth below, we conclude that substantial evidence supported the verdict against Wall and Welded for compensatory damages on the fraudulent transfer claim, but not the awards of punitive damages. We further conclude that the trial court abused its discretion in issuing a discovery sanction order that precluded Gruys from presenting any evidence or cross-examining any witnesses at trial based on his invocation of the Fifth Amendment privilege against self incrimination during discovery. Court accordingly affirm in part and reverse in part the judgment, and remand the matter for further proceedings consistent with this opinion.
Comments on Gunderson v. Wall