In a recent decision, the Georgia Court of Appeals ruled to vacate a punitive damages award of $65 million, deeming it excessive in light of the specific circumstances surrounding the case.
The court noted that the wrongful act in question caused harm to just one individual, with that harm being primarily economic in nature.
Consequently, the jury’s imposition of substantial compensatory damages, totaling $650,000, along with over $500,000 in attorney fees, remains intact.
The ruling now sets the stage for a limited second trial concerning punitive damages, should it be upheld.
Laurie Webb Daniel, representing the defendant, expressed satisfaction with the court’s decision, highlighting the thoughtful analysis applied by the Georgia Court of Appeals in considering the constitutional factors.
On the other side, Parikh’s attorney opted not to comment on the ongoing case.
During the original trial, Parikh had accused the defendant, Thakkar, of conducting a fraudulent scheme over three decades, asserting that he was manipulated into investing over $2 million in three restaurants located in the Atlanta area, from which he claimed he never received ownership stakes.
Evidence during the trial revealed that Thakkar had amassed millions in unpaid judgments, including one exceeding ten years in age.
Parikh argued that Thakkar’s refusal to repay these debts had left numerous victims struggling to collect what they were owed.
In a recent filing, Thakkar countered that the venture was adversely affected by the coronavirus pandemic and insisted that the fallout from his partnership with Parikh did not warrant the hefty punitive damages awarded.
Both Thakkar and Parikh were involved in the failed restaurant chain, which included Gyro City Hiram, Gyro City Roswell, and Santorini Taverna.
Despite his past triumphant ventures, including a profitable hotel development, Thakkar portrayed Parikh as a savvy investor who ceased financial contributions to the restaurant’s upkeep.
Parikh initiated legal proceedings against Thakkar in October 2020 in Fulton County Superior Court, asserting that Thakkar owed him $145,000 in loans while also failing to recognize his ownership interests in the restaurants linked to his investments.
The jury ultimately ruled in favor of Parikh, finding Thakkar liable for fraud, indicating that Thakkar intended to cause harm to Parikh.
In addition to the punitive damages, the jury awarded Parikh $145,000 plus interest for his loans.
Thakkar sought to have the entire verdict overturned; however, the appeals court found ample evidence supporting the jury’s fraud ruling.
In its decision, the court highlighted discrepancies in Thakkar’s testimony, which was described as “highly conflicting,” and pointed out that Thakkar admitted to failing to provide Parikh with restaurant ownership.
Furthermore, the court revealed that there was evidence of Thakkar misappropriating funds intended for operational costs, redirecting some of that money into his own personal business instead.
Parikh had requested a staggering $1 billion in punitive damages, suggesting that such a significant figure was meant to raise awareness about Thakkar’s dealings and deter future misconduct.
However, the court deemed Thakkar’s fraudulent actions, while reprehensible, did not warrant a punishment of $65 million due to the lack of widespread harm caused.
This case highlights the ongoing complexities and implications of fraud in business, as well as the judicial system’s approach to determining appropriate penalties.
As both parties consider their next moves, there remains the possibility for the Georgia Supreme Court to review the latest ruling, leaving the future of punitive damages in this case hanging in the balance.
image source from：https://www.ajc.com/news/2025/06/atlanta-doctors-65m-verdict-wiped-out-for-being-too-big/
