The Mellor Law Firm, APLC

California Real Estate, Construction, Bankruptcy, Foreclosure and Business Litigation Lawyers

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Call: (951) 221-4744

  • Our Firm
  • Attorney Profile
  • Practice Areas
    • Real Estate Law
    • Construction Law Attorney
    • Experienced Foreclosure Attorney Serving Riverside Homeowners
    • Business Law
    • Chapter 7 Bankruptcy
    • Chapter 13 Bankruptcy
    • Contract Disputes
    • Insurance
    • Loan Modifications
    • Personal Injury & Wrongful Death
    • Mechanic’s Lien
  • Case Handling
  • Clients
  • Blog
  • Contact

$32,500,000 Punitive Damages Award Reversed.

October 28, 2015 by

punitive damages.2 Plaintiffs are the survivors and the estate of a decedent who suffered from mesothelioma as a result of his exposure to asbestos. The jury awarded various amounts to the survivors and the estate, and also awarded the estate $32,500,000 in punitive damages. With regard to the testimony about defendant Borg-Warner Morse TEC INC’s [BWMT] financial condition, the trial judge limited plaintiffs’ expert testimony to 30 minutes on direct, 30 minutes on cross and 10 minutes on rebuttal. Plaintiffs’ expert, Robert Johnson, stated that he evaluated all the factors that were available to him through publicly available information for BWMT. That publicly available information consisted solely of BorgWarner, Inc.’s [not BWMT], audited financial statements from 2009-2012 and an excerpt from an audited financial statement that documented the revenue and earnings of BWMT before interest and taxes in 2002. On cross-examination, Johnson conceded that his opinion was constrained by the dearth of publicly available information on BWMT and was limited to an estimation – he characterized it as an “understatement” – of BWMT’s revenue. He acknowledged that revenue, or the amount of money coming into a corporation, “doesn’t tell you anything about” profit or loss, cash on hand, debts for the corporation, or bank credits. Johnson further conceded that he had no information about BWMT’s net worth, market capitalization, research and development, stock buybacks, accounting fees, or CEO compensation. Johnson acknowledged that BWMT was one of “many” subsidiaries of BorgWarner, Inc. Johnson explained that nothing in the financial documents . . . specifically broke out the profitability of BWMT. He therefore looked at the most recent profitability figures he could find, the ones from 2002, and concluded that the figures “probably stayed the same” because BorgWarner, Inc. had not told its shareholders that profitability declined. The Court of Appeal noted: “As discussed above, the only evidence of BWMT’s financial condition was the somewhat muddled testimony of plaintiffs’ expert, Robert Johnson.” The appellate court further stated: “The problem is that this evidence was, at best, pertinent to only half of BWMT’s balance sheet and therefore was not, standing alone, meaningful evidence of BWMT’s financial condition.” The Court of Appeal reversed the award of punitive damages “because plaintiffs’ limited evidence of BMWT’s financial condition was not sufficient to sustain an award of punitive damages.” (Soto v. BorgWarner Morse TEC Inc. (Cal. App. Second Dist. Div. 4; August 5, 2015) 239 Cal.App.4th 165 [191 Cal.Rptr.3d 263].)

Filed Under: Appellate Law News, Damages Law News, Evidentiary Law News, Legal News Tagged With: 191 Cal.Rptr.3d 263, 239 Cal.App.4th 165, 500

Call Us: 951-222-2100

Consultations available in-office or over
the phone. Speak to one of our leading attorneys in California today.

Recent News

How to Prepare Your Business for a Merger or Acquisition

July 16, 2025 By Mark Mellor

With the 50,000 merger and acquisition (M&A) deals that happened globally in 2024, it is evident that businesses are constantly looking for ways to grow and expand. M&A deals can provide a quick and effective way for companies to enter new markets, acquire new … Read More...

What Is Commercial Litigation and How Does It Affect Your Business?

May 23, 2025 By Mark Mellor

Every business, regardless of its size or industry, faces unique challenges. Among these, legal disputes can often be the most daunting and disruptive. Commercial litigation, a specialized area of law, serves as a framework for resolving disputes arising from business … Read More...

Common Types of Real Estate Fraud

May 21, 2025 By Mark Mellor

Real estate transactions are some of the most significant financial decisions you’ll make in your lifetime. Unfortunately, the complexity of these deals creates opportunities for fraud. Whether you’re a buyer, seller, or investor, knowing how to protect yourself and recognize … Read More...

Follow Mellor Law Firm

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Our Areas of Practice

  • Comprehensive Real Estate Legal Services
  • Construction Law Attorney
  • Mechanic’s Lien – Stop Notice
  • Experienced Foreclosure Attorney Serving Riverside Homeowners
  • Business Law
  • Contract Disputes
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Insurance
  • Lien Stripping Bankruptcy
  • Loan Modifications
  • Personal Injury & Wrongful Death
  • Property Ownership

Navigate

  • Home
  • Our Firm
  • Mark Mellor
  • Practice Areas
  • Case Handling
  • Clients
  • Resources
  • Contact
  • Blog
  • Privacy Policy

Practice Areas

  • Comprehensive Real Estate Legal Services
  • Construction Law Attorney
  • Mechanic’s Lien – Stop Notice
  • Experienced Foreclosure Attorney Serving Riverside Homeowners
  • Business Law
  • Contract Disputes
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Insurance
  • Lien Stripping Bankruptcy
  • Loan Modifications
  • Personal Injury & Wrongful Death
  • Property Ownership

Recent Posts

  • How to Prepare Your Business for a Merger or Acquisition
  • What Is Commercial Litigation and How Does It Affect Your Business?
  • Common Types of Real Estate Fraud
  • Everything You Need to Know About Adverse Possession in California

Follow Us

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Contact our offices

The Mellor Law Firm, APLC
6800 Indiana Avenue, Suite 220
Riverside, CA 92506
Phone: (951) 221-4744
Fax: (951) 222-2122
10.0Mark Albert Mellor

The Mellor Law Firm, APLC © 2025. All Rights Reserved.