(Unpublished appellate court decision affirming a verdict in excess of two million dollars in favor of Johnson & Bell client. This case has a storied history arising out of the formation, operation and subsequent dissolution of a limited partnership known as Forest Partners II, L.P. In July 1991, Forest Partners II was formed after Dr. Tan had raised $1.2 million from investors to fund the partnership to joint venture with drug testing laboratories in order to market drug testing services to industry. Forest Group, Inc. and Dr. Tan were the general partners and there were originally twelve limited partners, including Randall Pittman and Robert Lane who were the principals of the Forest Group. A dispute arose between the partners, and Forest Group, Pittman and Lane sued Dr. Tan and all the limited partners seeking $23,000,000 in compensatory and punitive damages. Dr. Tan and the Partnership filed a counterclaim against Forest Group, Pittman and Lane. In response, Pittman and Lane filed a second lawsuit against Dr. Tan. The cases were consolidated for trial. The case was initially tried to verdict in the Fall of 1997. The trial court found that Forest Group, Pittman and Lane were guilty of fraud and of breaching fiduciary duties owed to Dr. Tan and the Partnership. The court awarded Dr. Tan and the Partnership compensatory damages in the amount of $1.2 million and punitive damages in the amount of $300,000. The trial court dismissed the Forest Group, Pittman and Lane’s claims.The Forest Group, Pittman and Lane appealed. In the first appeal, the First District Appellate Court affirmed the trial court’s liability findings, but reversed the award of damages. The appellate court further held that the trial court’s dismissal of the Forest Group, Pittman and Lane’s claims against Tan and the Partnership was erroneous. The case was remanded to the trial court.
On remand, the trial court rejected Forest Group, Pittman and Lane’s attempts to reopen the proofs and ultimately entered judgment in favor of Dr. Tan and the Partnership. The trial court increased the award of damages to Dr. Tan and the Partnership awarding compensatory damages in the amount of $670,770 and punitive damages in the amount of $1,340,256. The trial court also rejected all of the claims Forest Group, Pittman and Lane had asserted against Dr. Tan and the Partnership.
The Forest Group, Pittman and Lane filed a second appeal. In Forest Group, Inc. v. Forest Partners II, L.P., No. 03-3619, the Appellate Court affirmed the trial court’s damage determinations and rejection of the claims asserted by the Forest Group, Pittman and Lane.
