The
National Law Journal's largest verdicts of 2001 
The
National Law Journal's largest verdicts of 2001
 Breach of Contract |
| Jurors Award $33M in Real-Estate Development Dispute |
| Verdict: $33,000,000.00 |
| Case: David Stoddart and Jencar Development Corporation, a Nevada corporation, v. The Estate of William Peccole and The William Peccole 1982 Trust, No. A-353258 |
| Court: Clark County District Court, NV |
| Judge: Michael A. Cherry |
| Verdict Date: 01-17-2001 |
| Plaintiff(s) |
Attorney:
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Expert:
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Demonstrative Evidence: None |
| Defendant(s) |
Attorney:
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Expert:
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Demonstrative Evidence: None |
| A Nevada jury ordered the estate of a
prominent real estate developer in Las Vegas to pay $33 million to resolve
a dispute over the profits of a land venture.
Judge Michael A. Cherry called the award "a shock to the conscience of the court" and reduced it to $5 million. The case began in late 1992 with a meeting between real estate developer William Peccole and David Stoddart over a 1,200-acre housing, commercial and golf-course project known as Queensridge. At issue was whether Stoddart came on board as a consultant or as a partner. Peccole, who had Alzheimer's disease, died in 1999, four years into the case. The plaintiff said the arrangement was a partnership: Peccole would provide the land and Stoddart would shepherd the residential aspect of the project through development, for a draw of the profits, said plaintiff's attorney Richard McKnight. Though no written agreement existed between the two men, Stoddard sent Peccole a letter outlining the partnership, and Peccole never responded to that letter, McKnight said. Three years later, once the properties were ready for sale, Peccole dismissed Stoddart from the project, and Stoddart said he had breached their agreement. The defense maintained that Stoddart was not Peccole's partner but his employee. The two had a signed agreement that made Stoddart an independent contractor on the residential elements of the Queensridge project, said defense attorney Marc Cook. Stoddart did not raise the idea of partnership until after Peccole was diagnosed with Alzheimer's disease. Also, Stoddart's account of the details of the deal - amount of land, who actually owned the property - changed repeatedly, Cook said. The nature of the payments that Stoddart received from the project was also at issue. Though Stoddart received no money for the first five to six months of his involvement, he did receive between $10,000 and $20,000 a month thereafter, McKnight said. Stoddart said those payments were advances on his draw from the eventual profits, while Peccole maintained it was his pay as an employee, McKnight said. "But my guy was there for five or six months and didn't get a penny," McKnight said. "What employee doesn't get paid?" The defense maintained that during the time Stoddart wasn't being paid he actually was working on a joint project between the two men. The two had a partnership to develop a 32-acre area of land within the Queensridge project, Cook said. That effort was scrapped and Stoddart came on board as an independent contractor. |
Verdict Information: Plaintiffs filed a post-trial motion to have the amount reduced to zero or to have the case retried. Judge Michael A. Cherry reduced the amount to $5 million, but if both parties did not accept that amount, the damages question would go to a new trial. The plaintiff rejected that amount, so the amount has now been reduced to zero. An appeal has been filed.
Settlement negotiations: Plaintiff offered a settlement of $3.5 million. Defense rejected and did not counteroffer. |