Kothari v. Patel6/17/2003
This matter, arising from a business venture, appears in this court for the second time. The origins of this consolidated appeal lie in an action filed by Interstate Development Services of Lake Park, Georgia, Inc. (IDS) against Vijay Patel (Vijay). Vijay answered and counterclaimed, and the case went to trial in 1994, resulting in a verdict for IDS on its complaint and for Vijay on his counterclaim for lost profits. On appeal by IDS, we reversed the judgment for Vijay on the ground that the evidence supporting it was too speculative. Interstate Dev. Svcs. v. Patel, 218 Ga. App. 898 (463 SE2d 516) (1995).
In 1996, Vijay moved to set aside the judgment in the previous suit, and brought suit against IDS and the other three individual principals in the corporation, Dr. Arvind Patel, who is Vijay's uncle, Arvind's wife Varsha Patel, and Dr. Prashant Kothari, Arvind's friend and business associate. He sought compensatory and punitive damages from the individuals, dissolution of the corporation, and other injunctive relief. Vijay's motion to set aside was granted, and the parties agreed to consolidate the prior suit, which had been returned to its pretrial status, with Vijay's action for trial. Because Vijay sought punitive damages, the trial was bifurcated.
In the first phase, the jury returned a verdict in favor of Vijay for $209,556 in compensatory damages, $248,854 to compensate Vijay for his interest in IDS, and $212,300 in expenses of litigation. It found that Vijay was not liable on the corporation's counterclaim and found clear and convincing evidence to support an award of punitive damages. In the second phase, the jury awarded punitive damages in the amount of $750,000 against Arvind Patel, $100,000 against Varsha Patel, and $350,000 against Kothari. Judgment was entered on the verdicts, and the defendants' motions for jnov, for new trial, and to amend the judgment were denied. In case number A03A0286, Kothari appeals from the judgment against him, and in case number A03A0287, the remaining defendants appeal. The appellants have consolidated their appeals, with one brief being filed on behalf of IDS and another on behalf of all individual appellants. We follow their form, consolidating the appeals for review and addressing the enumerations raised by IDS separately from those raised by the individual appellants. We find no merit in any of the appellants' contentions, and we affirm the judgment.
Construed to support the verdict, the evidence presented at trial showed that the project in issue began when Vijay located property for sale in south Georgia. He believed that the site, along I-75, would be perfect for tall billboards. He made a small down payment and sought other investors. The three individual appellants agreed to invest, and they formed IDS, a statutory close corporation. IDS then purchased the property. Vijay executed a stock subscription agreement and he alone executed a personal guarantee of a note to the seller.
Matters soon became contentious between the parties, and IDS, at the direction of Arvind and Kothari, filed suit against Vijay, seeking collection on the note and acceleration of the stock subscription commitment requiring Vijay to contribute up to $200,000 in capital. Vijay answered and counterclaimed, claiming that he was entitled to recover lost profits from IDS and that IDS had violated the Georgia corporation code sections protecting minority shareholders. During the pendency of that litigation, Kothari engaged in negotiations for the sale of a small portion of IDS's property in south Georgia to Flying J, Inc., for development of a truck stop. In early 1994, an agreement was reached between IDS and Flying J to sell 20 acres for more than
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