Banks v. General Atomics
A jury returned a verdict in favor of Paul Banks on his fraud and contract claims, which alleged General Atomics (GA) lured him away from stable employment on the promise that GA would grant him "equity" or "ownership" in a newly formed division of GA. On the fraud claim, the jury awarded Banks $2.9 million in compensatory damages and $5.8 million in punitive damages. On the contract claim, the jury awarded Banks $6 million. Viewing the fraud and contract remedies as inconsistent, the trial court required Banks to elect between them. Banks chose his fraud claim and consented to remittitur of the punitive damage award to $2.9 million after the court conditionally granted GA's new trial motion on the basis of excessive punitive damages.
GA appeals the judgment on several grounds. First, GA contends the trial court erred by allowing Banks to pursue his fraud claim at trial because the court had already summarily adjudicated a similar statutory fraud claim (Labor
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