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IN THE COURT OF APPEALS OF IOWA No. 2-272 / 11-1400 Filed June 27, 2012

RC & CA DOGHOUSE, L.L.C., and CORY EDWARD STEINER, Plaintiffs-Appellees, vs. DAVID RICCADONNA and DOGHOUSE BAR AND LOUNGE, INC., Defendants-Appellants. ________________________________________________________________

Appeal from the Iowa District Court for Polk County, Karen Romano, Judge.

The defendants appeal from default judgment and damages entered against them in this action asserting claims of breach of contract, intentional interference with prospective business advantage, intentional interference with contract, conversion, trespass, and defamation. REVERSED IN PART, AND REMANDED. AFFIRMED IN PART,

Eric Eshelman, Des Moines, for appellants. Brenda L. Myers-Maas, Clive, for appellees.

Heard by Vaitheswaran, P.J., and Doyle and Danilson, JJ.

2 DANILSON, J. Defendants, David Riccadonna and Doghouse Bar and Lounge, Inc., appeal from entry of default judgment and the award of compensatory and punitive damages entered in favor of plaintiffs, RC & CA Doghouse, L.L.C. and Cory Steiner, on their claims of breach of contract, intentional interference with prospective business advantage, intentional interference with contract,

defamation, conversion, and trespass. Riccadonna also appeals from a directed verdict dismissing his counterclaims. Riccadonna sold a bar or lounge to the plaintiffs, reclaimed the lounge without justification, then after this action was filed, failed to comply with discovery or timely appear for the jury trial. We affirm the dismissal of his

counterclaims and the award of compensatory damages, but determine the punitive damages were excessive. We reverse in part and remand to effectuate a remittitur or, if not accepted, a new trial on punitive damages. I. Background Facts and Proceedings. On December 31, 2009, Cory Steiner on behalf of RC & CA Doghouse, LLC, buyer, and Dave Riccadonna, seller, entered into a bill of sale for the business operated as Doghouse Bar and Lounge with a purchase price of $90,000. Riccadonna acknowledged he had received $16,000 cash and

personalty1 with a value equivalent to $38,525.36. Exhibit B attached to the bill of sale provided that buyer "shall acquire name rights," and seller "after closing, relinquishes all ownership interest in the business." Exhibit B further stated:
The personalty included pool tables, a shuffleboard table, a foosball table, and a jukebox, in addition to the inventory of the premises known as the Doghouse Bar and Lounge.
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