Timothy S. Novak v. R. Paul Gray

This is a case about an oral agreement between business partners to split the proceeds from the sale of some stock options. A jury found that after fraudulently inducing the plaintiff to enter a valid contract, the defendant breached it, and the plaintiff suffered damages as a result. The district court entered judgment on the verdict and denied the defendant’s post-judgment motions. This is the defendant’s appeal.

I

Timothy Novak and Paul Gray were friends and business partners. In 2003 they made an oral agreement to split 50/50 the net proceeds from stock options that Gray was to receive for…