Ong International (U.S.A.) Inc., a Nevada Corporation; D & D Management, a Utah Corporation; and David L. Alldredge…

Summary

The Utah Supreme Court affirmed a jury verdict and judgment rescinding the mausoleum partnership and redemption agreements and awarding plaintiffs restitution of their $1,240,220 investment, $1,165,220 in consequential damages, and $1,800,000 in punitive damages for fraudulent misrepresentation that all crypts were concrete when most outdoor crypts were built of wood. The court held the redemption agreement's release unenforceable because its procurement was an integral part of the ongoing fraud, and that fiduciary disclosure duties survived the parties' adversarial split given Garner's control of information and the concealed wood construction. It also upheld admission of Garner's wealth evidence under the pre-statute common-law procedure, the rescission-plus-rate-of-return damage theory, the punitive award's ratio, and the costs award, finding the sole evidentiary error (limiting bias cross-examination) harmless.