In SIRY INVESTMENT, L.P. v. FARKHONDEHPOUR, the Supreme Court resolved a conflict in lower courts by ruling that treble damages and attorney’s fees pursuant to section 496(c) are recoverable in theft-related business tort cases. The Court found it applies so treble damages and attorney’s fees can be awarded in a case concerning “fraudulent diversion of partnership funds.” The Court also allowed a preponderance of the evidence proof, not clear and convincing. The plaintiff still must prove a knowing “theft”, but this will be the next new business tort remedy!
SIRY INVESTMENT, L.P. v. FARKHONDEHPOUR S262081
