Sterling v. Montgomery CA2/6
The James M. and Frieda E. Montgomery Foundation (the Foundation) and members of the Montgomery family appeal from the judgment, entered after a court trial, finding that James F. Montgomery committed fraud and other torts when he convinced respondent Kenneth Sterling to invest in a bank he was attempting to open for business. Appellants contend (1) the trial court erred when it excluded all but one of their witnesses; (2) the fraud judgment is not supported by substantial evidence because Jim Montgomery’s representations to Sterling were true; (3) the causes of action for conversion and common counts should be reversed because Sterling had no ownership interest in the money transferred from the Bank to the Foundation; (4) the punitive damages award must be reversed because it violates public policy and is not supported by substantial evidence; and (5) there is no legal basis for the award of attorney’s fees and that the trial court allowed cost items prohibited by statute.
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