Award of Damages – Settlement Agreement

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7^th Circuit Court of Appeals

Case Name: Semir D. Sirazi, et al v. General Mediterranean Holding, SA et al

Case No.: 15-3655, 15-3505

Officials: BAUER, POSNER, and WILLIAMS, Circuit Judges.

Focus: Award of Damages – Settlement Agreement

Award of damages upheld minus punitive damages.

“Rezko breached the settlement agreement by failing to pay Sirazi anything, and the jury could as it did find GMH liable for tortious interference with contract because it induced Rezko to flout his agreement to repay Sirazi. But Sirazi’s suit also charges GMH with unjust enrichment and conspiracy, and this may seem piling on unjustly. But it isn’t. A person or firm can tortiously interfere with a contract with‐ out obtaining any money from his tort. But GMH did obtain money from defrauding Sirazi, by deflecting to itself money owed Sirazi. It was thus enriched unjustly. Likewise it con‐ spired with Rezko to transfer his property to it without pay‐ ing anything to Sirazi, thus further deflecting to GMH money owed Sirazi. As there was no possible excuse for the de‐ liberate misconduct, amounting to theft, in which GMH engaged, there is no basis for overruling the jury’s award of $5 million in punitive damages against GMH.”

Affirmed in part

Reversed in Part

Full Text

Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.