One of the Largest Verdicts in U.S. History LAS VEGAS, Aug. 18
LAS VEGAS, Aug. 18 /PRNewswire/ -- Gil Hyatt, a Nevada inventor, scientist
and engineer with over 70 patents from the United States Patent & Trademark
Office to his credit, was awarded more than $388 million by a Nevada jury
against the Franchise Tax Board of the State of California. Liability was
based on torts committed by the Franchise Tax Board while auditing Mr. Hyatt's
residency, during the time he received substantial sums of money for licensing
his patents.
The jury returned a unanimous liability and compensatory damage verdict on
August 6, 2008, for more than $138,000,000, for fraud, intentional infliction
of emotional distress, abuse of process, breach of confidential relationship,
and invasions of privacy. On August 12, the jury unanimously determined that
FTB's conduct warranted punitive damages. On August 14, the jury rendered its
verdict assessing $250 million in punitive damages against the Franchise Tax
Board.
Mark A. Hutchison, lead counsel for Mr. Hyatt, stated that "The entire
case, from start to finish, is unprecedented." Hutchison is founding partner
of Hutchison & Steffen, one of Nevada's largest civil litigation firms.
Hutchison said the ruling against the California Franchise Tax Board is like
"the shot heard round the world at Lexington and Concord" for abusive taxing
agencies. He continued by stating that "Government agencies should pause and
reflect on the significance of this verdict." Mr. Hutchison was quick to
praise the efforts of his co-counsel stating that "Peter Bernhard and Don Kula
were outstanding in helping present this case to a jury -- this was a team
effort." Peter Bernhard is of counsel in the firm of Bullivant Houser Bailey,
while Don Kula is a partner with Perkins Coie.
The lawsuit has been progressing for more than 10 years. After the case
was filed in Nevada in 1998, California took the case to the Nevada Supreme
Court and then to the United States Supreme Court, arguing that Nevada courts
could not adjudicate Mr. Hyatt's claims against the California Franchise Tax
Board in Nevada. The United States Supreme Court disagreed and unanimously
upheld the Nevada Supreme Court's ruling that Mr. Hyatt's intentional tort
claims could proceed to trial in Nevada.
Gilbert P. Hyatt, who received a key microprocessor patent in 1990, sued
California's tax assessment and collection agency, alleging the agency audited
him in bad faith and committed fraud and other intentional torts during its
audit. The Franchise Tax Board claimed he was a California resident in 1991
and part of 1992, assessing Hyatt millions of dollars in income taxes for
those years, including fraud penalties.
The jury verdicts have historical significance. The jury's compensatory
damages against the California Franchise Tax Board total almost $138.1
million, including $85 million for emotional distress and $52 million for
invasion of privacy, plus almost $1.1 million in attorney fees. Nevada law
requires prejudgment interest to be added from the date the complaint was
served. In addition to compensatory damages, the jury then found that
California's taxing agency acted with oppression, fraud, or malice and awarded
punitive damages to Hyatt in the amount of $250 million, bringing the total
judgment to $388 million, making it one of the largest verdicts in favor of an
individual in United States history.
Mr. Hyatt was grateful for the verdict rendered by the jury and stated
that he "hoped this will prevent other taxpayers from going through the same
nightmare I have had to endure for over a decade."
About Hutchison & Steffen, LLC
Hutchison & Steffen, a Martindale-Hubbell(R) AV-rated law firm, provides a
wide variety of legal services, including business and commercial litigation,
real estate, appellate litigation, creditor's rights, construction law,
employment law, insurance litigation, landlord/tenant law, physician advocacy,
personal injury, immigration law, and environmental law. For more information
about Hutchison & Steffen, please contact Teresa Tokumon at 702.385.2500, or
visit the firm's Web site at http://www.hutchlegal.com.
About Consultants in Marketing, Inc.
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collateral development, television and radio production and special events
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is celebrating over a decade of exceptional results and client service.
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For more information, call 702.944.2464 or visit the Web site at
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SOURCE Hutchison & Steffen, LLC
