Judge: Kevin C. Brazile, Case: 24STCV04578, Date: 2024-08-13 Tentative Ruling

Hearing Date: August 13, 2024

Case Name: Gilchrist v. Pollock, et al.

Case No.: 23STCV27913 

Matter: Non-Appearance Case Review Re: Default Judgment

Ruling: The Default Judgment Application is denied without prejudice. 

Plaintiff to give notice.

If counsel do not submit on the tentative, they are strongly 

encouraged to appear by LACourtConnect rather than in person due to the COVID-19 pandemic. 

This is an action in which Plaintiff David Gilchrist alleges that he is a vice president at Merrill Lynch and that Defendant Pollock defamed Gilchrist by accusing him of mismanagement, fraud, money laundering, and theft.

Gilchrist now seeks a default judgment with $21 million in damages: $2 million for “Shame, Mortification or hurt Feelings”, $2 million for loss of reputation, $2 million for harm to business profession, and $ 15 million in punitive damages.

When assessing punitive damages on default judgment, courts consider the following three factors: (1) the reprehensibility of the defendant’s conduct; (2) proportionality—i.e., whether the amount of the award bears a reasonable relationship to the damage actually suffered by the plaintiff; and (3) whether the award is reasonable in light of the defendant’s financial condition.  (Baxter v. Peterson (2007) 150 Cal.App.4th 673, 679.)  The purpose of punitive damages is to deter, without being excessive.  (Adams v. Murakami (1991) 54 Cal.3d 105, 112.)  “A reviewing court cannot make a fully informed determination of whether an award of punitive damages is excessive unless the record contains evidence of the defendant’s financial condition.”  (Id. at p. 110.)

The Court cannot award any punitive damages because sufficient evidence of Defendant’s financial condition has not been provided.  Plaintiff merely indicates that “I am informed and believe that Ms. Pollock held $1,500,000 in assets with Merrill. I understand that that money was only the cash component of her assets. Ms. Pollock also owns approximately one-fourth of Cambria Investments, an investment firm that manages over $27 billion in assets. Moreover, Ms. Pollock owns real property, including her primary residence in Redondo Beach.”  Even assuming a proper foundation was provided for these assets, Plaintiff failed to provide evidence of Defendant's liabilities.

The Court also finds the $6 million claimed for compensatory damages to be unsubstantiated and highly speculative.   Therefore, the Default Judgment Application is denied without prejudice.  Plaintiff is ordered to file a new proposed judgment seeking $500,000 in total damages.  

Plaintiff to give notice.