Scrushy v. Tucker

955 So.2d 988 (2006)

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Nature of the Case

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Facts

P filed a shareholder's derivative lawsuit on behalf of HealthSouth against D, the former chief executive officer for HealthSouth, and numerous other defendants. P alleged that D and others perpetrated an accounting fraud against HealthSouth, resulting in massive financial losses by HealthSouth and ultimately its shareholders. P's complaint also alleges that D was unjustly enriched when he accepted bonuses as a result of overvalued financial statements that misstated HealthSouth's net income, which, P alleges, was in violation of a contract between HealthSouth and D. P claims D [and others] knowingly and willfully conspired and agreed to misrepresent and falsely inflate earnings and HealthSouth's true financial condition. D engaged in this fraud, misrepresentation, and manipulation of income and earnings of HealthSouth to enrich himself with bonuses, stock options, and other corporate perks. D sold at least 7,782,130 shares of stock since 1999 at prices grossly inflated by the materially misstated financial statements. D and others `earned' tens of millions of dollars in bonuses, stock options, and excessive salary and perks based on the inflated earnings. After D was acquitted of the criminal charges, P moved for a partial summary judgment seeking only restitution from D of bonuses he received from 1996 to 2002. The trial court entered a judgment in excess of $47 million plus prejudgment interest. D appealed. D claims that P did not establish the necessary elements to prove unjust enrichment in that P that it would be unconscionable for D to keep the bonuses.