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Appeals affirmed the imposition of sanctions and the award to the
plaintiffs of lost profits damages, indemnity damages, and
punitive damages and reversed the award of reliance damages.
Satisfaction of the District Court's
Judgment in the Farmers Lawsuit
On or about August 4, 1988, the attorneys representing FIG
in the Farmers lawsuit delivered to the plaintiffs' attorneys,
Markowitz & Herbold, a check issued by FIG, dated August 3, 1988
(FIG check), in the amount of $2,254,983 (proceeds of the Farmers
lawsuit) and a letter attached thereto (FIG letter). The FIG
check was made payable to the plaintiffs in the Farmers lawsuit
(viz., DCI, Peter Diamond, and Shirley Diamond) and to Markowitz
& Herbold. The FIG letter stated, inter alia, that the check
represented full payment by FIG of the plaintiffs' claims, as
follows:
Amount of judgment $1,850,8909
Interest on judgment 161,821
Attorneys' fees 220,36010
9 This amount consisted of all the damages that the District
Court awarded to the plaintiffs, except reliance damages.
10 Although the District Court awarded the plaintiffs $220,360
in attorneys' fees and costs, the FIG letter indicated that the
proceeds of the Farmers lawsuit included a total of $226,212 in
attorneys' fees and costs. Moreover, although the District
Court's judgment awarding attorneys' fees and costs to the
plaintiffs does not indicate that the plaintiffs were also
awarded interest on those fees and costs, the FIG letter indi-
cated that the proceeds of the Farmers lawsuit included a total
of $15,369 in interest on those fees and costs. The record does
not explain the reasons for those discrepancies, and the parties
do not advance any argument about them. Despite the foregoing
(continued...)
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