Over-Achiever’s $20-Million Jury Award Cut to $10 Million

A Beverly Hills insurance executive who was fired by Sperry & Hutchinson Co. for making too much money was told Wednesday that he must accept $10 million, instead of the $20 million a jury awarded him last January, or face a new trial.

In reducing the award to Frank V. McCullough Sr., 64, Los Angeles Superior Court Assistant Presiding Judge Jack E. Goertzen said that he had no question about the liability of the Green Stamp company but that he believes $20 million is “somewhat excessive.”

Jurors had ordered Sperry to pay $4 million in compensatory damages and $8 million in punitive damages and had assessed its former insurance subsidiary--S & H Insurance Co.--which McCullough ran, $6 million in compensatory damages and $2 million in punitive damages.

Goertzen reduced those amounts to $4 million in total compensatory damages from both companies, however they choose to divide the payment, and $6 million punitive damages against Sperry with no punitive damages against S & H, which is now in liquidation.

“I’m disgusted. I just think that is just awful,” the mild-mannered McCullough said outside court after Goertzen’s ruling. “What 12 people worked hard to do, one man just changes, and I don’t follow his reasoning or logic at all. I really didn’t expect this. I thought maybe a modest cut, but 50% isn’t modest.”

Goertzen gave McCullough’s attorney, Charles B. O’Reilly, until 4 p.m. Friday to decide whether to accept the reduced award or prepare for a new trial on the amount of damages.

McCullough sued Sperry over his dismissal April 14, 1978, as head of S & H Insurance Co., claiming that he was ousted because he earned lucrative bonuses based on a contractual share of profits. He now heads his own firm, Carlisle Insurance Co.