VW Credit v. Keuylian
Danner & Martyn, Daniel E. Martyn, Jr., Michael D. Schulman, Diana S. Ponce-Gomez;Law Offices of Michael D. Schulman and Michael D. Schulman for Plaintiff and Respondent.
Plaintiff VW Credit, Inc. (VCI) sued certain individuals, business entities, and trusts (collectively, defendants) for failure to repay loan obligations taken on by two Lamborghini dealerships. After defendants ignored discovery requests and refused to comply with ensuing court orders, the trial court granted terminating sanctions (Code Civ. Proc., § 2023.030, subd. (d)) against defendants. Thereafter, two default judgments were entered awarding VCI sizable compensatory (approximately $14 million) and punitive (approximately $44 million) damages against some of the defendants, including individuals Viken Keuylian, Nora Keuylian, Asdghig Keuylian, and Sossi Keuylian (appellants).[1] Appellants take issue with the punitive damage awards. Because we agree with their contentions, we modify the judgment by striking the awards of punitive damages. There was insufficient notice of the amount of punitive damages demanded by VCI. (Code Civ. Proc., §§ 425.115, 580, subd. (a).) Moreover, there was insufficient evidence of appellants’ financial condition presented at the default judgment prove-up hearing.
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