In 1975, Dr. Joseph Baram acquired legal title to Foxey Toni, a bay filly race horse, for $3,000 in a claiming race at the Keystone Race Track in Bucks County, Pennsylvania. Dennis Fredella became the trainer for Foxey Toni and was given authority to enter her in races in Dr. Baram’s name. Foxey Toni raced under Dr. Baram’s name on October 11, October 17, and November 8, 1975.
Thereafter, a Certificate of Foal Registration for the horse, issued by the Jockey Club of America, came into Fredella’s possession at a time when he was indebted to Robert Farugia. Without the knowledge or consent of Dr. Baram, Farugia obtained possession of the horse from Fredella and was given the foal certificate bearing the forged signature of Dr. Baram. Farugia first dated the certificate, transferring the horse to Glenn Hackett and himself. Foxey Toni was subsequently raced in Canada by the putative new owners without the knowledge or consent of Dr. Baram.
After Dr. Baram learned of these events, he met with Farugia and demanded the return of Foxey Toni. Farugia refused to return the horse or pay her value of $3,000, but offered instead a modest cash settlement, which Dr. Baram rejected. Dr. Baram filed a complaint sounding in “Trespass for Conversion” in the district court against Farugia, Hackett, and Fredella. A default judgment for failure to appear was entered against Fredella.
Dr. Baram acknowledged at trial that, as a result of previous criminal proceedings against Fredella in state court, he had been paid $3,000 by Fredella covering Dr. Baram’s claim for the value of the horse, Foxey Toni, and that he agreed to accept that. This case then proceeded as a bench trial for compensatory and punitive damages for conversion against Farugia and Hackett. The court awarded compensatory damages of $3,000 against both defendants for the value of Foxey Toni and assessed punitive damages of $5,000 against Farugia. The court dismissed the complaint against Fredella with prejudice. This appeal by Farugia and Hackett followed.
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