In 2019 we reported on the $8 million punitive damages award against entrepreneur Alki David in this case, one of several lawsuits against him that resulted in punitive damages.
The California Court of Appeal (Second District, Division Four) affirmed the award in an unpublished opinion. David argued that the Court of Appeal should reverse the punitive damages because the plaintiff failed to introduce sufficient evidence of David’s financial condition. The court ruled that David forfeited that argument by disobeying the trial court’s order to appear as a witness in the punitive damages phase of trial.
The court further ruled that, forfeiture aside, the evidence was sufficient to support the award. The plaintiff did not present evidence of David’s net worth, and instead presented evidence only of his income (which was negative) and certain assets. Other courts have held that such evidence is insufficient, and that the plaintiff must present evidence of the complete financial picture, including the defendant’s expenses and liabilities. But the court here concluded that the partial evidence was good enough, because it showed that David was a wealthy man who could afford to pay a large sum of punitive damages. Although this analysis conflicts with the holdings of other cases, the chances of Supreme Court review seem low, due to the forfeiture problem and the fact that the opinion is unpublished.