[page 1][page 2][page3][page4] [Comments from Judge Collins]

23, There was malice, fraud or oppression in the conduct of defendant Teresa Halton upon which the jury based its findings of breach of fiduciary duty.

24. Plaintiff is entitled to recover a punitive damage award from defendant Teresa Halton in the amount of $75,000.00.

V. Breach of Oral Agreement

25. There was an oral agreement between the plaintiff and defendant Teresa Halton that she could use the service mark STORYBOOK STUDIO solely within the San Francisco, California area.

26. Defendant Teresa Halton breached the oral agreement with the plaintiff by using the service mark STORYBOOK STUDIO on the Internet.

27. Defendant Teresa Halton breached the oral agreement with the plaintiff by using the service mark STORYBOOK STUDIO outside the San

Francisco, California area.

28. The plaintiff suffered $25,000.00 in compensatory damages as a result of defendant Teresa Halton's breach of contract.

Accordingly, plaintiff Gary Fong, Inc. shall recover the following sums from the following defendants:

(a) From defendants Teresa Halton and Peter Halton: $65,000 in compensatory damages; and

(b) From defendant Teresa Halton; $75,000 in compensatory damages; $10,000 in profits (attributable to her use of copyrighted material); and $75,000 in punitive damages.

AUDREY S. COLLINS
UNITED STATES DISTRICT JUDGE