A Los Angeles Superior Court jury has awarded another $50 million in damages against Nashville entrepreneur Greg Daily, who filed bankruptcy last week after he came out on the losing end of a seven-year legal battle with California businessman Douglas Shooker.
The punitive damage award is in addition to the $300 million in compensatory damages Shooker won when a four-month trial ended on May 11. The jury reached a decision on the punitive phase of its deliberations late Friday, but the trial judge agreed to a motion from both parties that the judgment be kept under seal temporarily, for reasons unclear from the record. Two sources close to the case have confirmed the amount to NashvillePost.com.
Often, the amount of a punitive award comes in far greater than the corresponding compensatory award, but in this instance the plaintiff had sought damages in the relatively modest range of $60 million to $100 million.
Shooker sued Daily over a stake in what is now iPayment Inc. that Shooker claimed he was denied through manipulation by Daily nearly a decade ago. The payment processing company has since gone public and then private again, and the jury awarded Shooker an amount based on what his share of the company would now be if he had been able to retain it.
Jim Penrod, Daily's attorney from the San Francisco office of Morgan, Lewis & Bockius, could not be reached today but has previously said his client would appeal.