Opinion ID: 2206450
Heading Depth: 1
Heading Rank: 3

Heading: Bitter's Counterclaim for Damages

Text: Bitter filed a counterclaim asking actual damages of $100,000 and punitive damages of $250,000. The gravamen of his claim is that the Smiths were guilty of willful and malicious misconduct purposely designed to inflict emotional distress on [Bitter] and to cause him other harm and damage. Bitter details a long list of alleged misconduct by the Smiths. He says that they set up new and secret bank accounts, organized a new and secret or purported to organize a new and secret corporation, withdrew funds from the business for their own personal profit, made loans to themselves from the business property, mortgaged and pledged the assets of the business for the obtaining of personal funds, refused to allow the defendant to inspect, see, or examine the books and records of the business, applied for a liquor license in their own name, and in the name of a new or purported corporation, and otherwise attempted to force the defendant from the business by refusing to communicate with him, and by slanderous statements and threats made against him. The trial court found against Bitter on this issue. These findings are binding on us if supported by substantial evidence. Iowa R.App.Pr. 14(f)(1). Bitter complains that the trial court did not make any findings of fact to support the result reached. We do not agree. The trial court found neither the Smiths nor Bitter were without fault. Most of the onus was placed directly on Bitter for his neglect, inattention, and dereliction of duty in handling the legal affairs of the business. The trial court further found the action of the Smiths in taking over the business and in ignoring Bitter in making business decisions, maintaining business records, incurring expense, and making distribution of corporate funds was in direct response to Bitter's failure to take timely and effective action to carry out his duties and obligations to the business. The trial court specifically found the Smiths were not guilty of willful or malicious conduct toward Bitter. To put the matter mildly, the evidence was in sharp dispute. Certainly there was substantial evidence to support Bitter. There was also substantial evidence to support the Smiths. On this state of the record, the trial court found against Bitter, and we are bound by these findings.