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Los Angeles Times
Saturday, July 27, 1996

Jury Awards $107 Million to 2 Ex-Aerospace Employees

Courts: General Dynamics is found liable after failing to compensate them for equity in subsidiary when it sold missile business to Hughes Aircraft.

By CHRIS KRAUL
TIMES STAFF WRITER

Two victims of Southern California's aerospace industry collapse received some sweet solace Friday when a Los Angeles County Superior Court jury awarded them $107.4 million in damages after finding that their former employer, General Dynamics Corp.. was liable for fraud and breach of oral contract.

William Forti and Dolores Blanton, two longtime employees at the company's missile plant in Pomona, were awarded $3.7 million each in compensatory damages and $50 million each in punitive damages in the case, which was tried in the court's Norwalk Division. General Dynamics, which sold the Pomona plant to Hughes Aircraft in 1992, is expected to appeal the verdict.

Former General Dynamics Vice President Sterling Starr, who headed the Pomona division, testified that no ownership promise was made to Forti and Blanton, according to lead plaintiff attorney Don Howarth. But the jury believed the testimony of five witnesses, including the plaintiffs, that oral promises were made.

After three days of deliberations, the jury in Superior Court Judge Chris Conway's courtroom handed down the compensatory damages award. The panel then went back in deliberations and two hours later emerged with the punitive damage award.

Forti was a business development executive; after being laid off by the aerospace employer, he became a successful inventor. He and his son Mark sell a one-ounce Frisbee-like plastic ring called an X-zylo that can be thrown the length of two football fields.

Brian Bubb, part of the victorious legal team, said the toy has been a "tremendous success" and that Wal-Mart recently agreed to sell the product in its stores.

"He may be financially set, but I'm sure he takes great pride in the work he and his son are doing in developing their own business," Bubb said.

 

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