Giffin v. Kehoe
In this dispute over the ownership and operation of E2 Brokers, Inc. (E2), a closely held corporation, plaintiff Robin Giffin alleged, in essence: (1) he and Jacob Mickalich[1]created E2, then brought in defendant Michael Kehoe to run it; (2) Kehoe cheated Giffin out of his share in E2 and turned it into a personal piggy bank. Claiming breach of fiduciary duty and fraud, Giffin sought damages in excess of $500,000, the imposition of a constructive trust, and a declaration of the parties respective ownership interests in E2.
When a complaint alleges damages in excess of x dollars and the defendant defaults, the maximum damage award the plaintiff may receive is x dollars. Therefore, on remand either the trial court shall enter an award not to exceed $500,000, or Giffin may amend his complaint to specify greater damages; if he does so, however, Kehoes default will be opened. Kehoes default is affirmed.
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