Diamond Claims & Investigation Services, Inc. - Page 31

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          (4) that DCI and the Diamonds periodically invested in new equip-           
          ment for ETS and hired employees for the purpose of providing               
          services to FIG; (5) that ETS provided services to FIG during the           
          years 1982 through 1984; and (6) that FIG breached the agreement            
          at issue in the Farmers lawsuit.                                            
               With respect to the plaintiffs' claims against FIG for                 
          fraudulent misrepresentations, the pretrial order alleged, inter            
          alia, that FIG repeatedly made false misrepresentations to the              
          plaintiffs and concealed the true state of affairs from the                 
          plaintiffs with the knowledge and intent that the plaintiffs                
          would rely on such misrepresentations to their detriment.                   
               With respect to the lost profits damages that the plaintiffs           
          sought from FIG for breaches of contract and for fraudulent mis-            
          representations, the pretrial order alleged, inter alia:                    
          (1) That the plaintiffs suffered damages as a result of those               
          actions of FIG; (2) that the plaintiffs lost profits on the                 
          investigative work that FIG assigned to investigative agencies              
          other than DCI; and (3) that "Plaintiffs Peter and Shirley                  
          Diamond are entitled to recover their lost income, including loss           
          of profits from ETS, and increased expenses, arising from defen-            
          dants' fraud and breach of their agreement with plaintiffs."                
               With respect to the punitive damages that the plaintiffs               
          sought from FIG for fraudulent misrepresentations, the pretrial             
          order alleged that the Diamonds, as well as DCI, were entitled to           
          punitive damages in the amount of $25 million.                              




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