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Gottlieb v. Iskowitz
Georges Marciano (Marciano) and his various entitles (Marciano entities)[1] (sometimes collectively referred to as Marciano), appeal a judgment in favor of Marciano’s former accountants, Gary Iskowitz (Gary), Gary’s accounting firm Gary Iskowitz & Co., LLP (the Iskowitz firm), Gary’s accounting partner, Carolyn Malkus (Carolyn), and Gary’s spouse, Theresa Iskowitz (Theresa), also an accountant with the firm (sometimes collectively referred to as Iskowitz).[2] [3]
In these consolidated cross-actions (L.A. Super. Court, case Nos. BC384493 & BC385790), the trial court imposed terminating sanctions against Marciano for discovery abuse. The trial court dismissed Marciano’s complaint against Iskowitz and struck Marciano’s answer and entered his default on the Iskowitz cross-complaint, which resulted in a $55 million judgment against Marciano pursuant to a default proveup.
The essential issues presented include whether the trial court abused its discretion in imposing terminating sanctions against Marciano for noncompliance with discovery, and whether the trial court awarded excessive damages on the default proveup.
Based on our review of the record, we perceive no abuse of discretion in the imposition of terminating sanctions, which resulted in the dismissal of Marciano’s complaint against Iskowitz and the entry of Marciano’s default on the Iskowitz cross-complaint. However, on the record presented, the amount of the damages which were awarded on the default proveup is excessive. Therefore, the judgment is reversed and the matter is remanded for further proceedings consistent with this opinion.

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