Champps Entertainment Inc. Announces an Update on DAKA Litigation.Business Editors LITTLETON, Colo.--(BUSINESS WIRE)--June 3, 2004 Champps Entertainment Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CMPP CMPP Centre Médico-Psycho-Pédagogique ), owner and operator of Champps restaurants nationwide, today announced an update regarding the re-determination of punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. by the trial court in the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. related to the company's spin-off from DAKA International Inc. As previously disclosed, in the third quarter of fiscal 2000, a Washington, D.C. Superior Court jury awarded a former Daka Inc. ("Daka") food service employee $187,500 in compensatory damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. , $4,812,500 in punitive damages and a subsequent award of $276,500 for attorneys' fees and costs, based on the employee's claim of negligent supervision and retaliation due to conduct that the plaintiff alleged occurred at a former Daka food service location in 1996. On Sept. 20, 2000, Daka filed an appeal with the District of Columbia Court of Appeals
On Dec. 24, 2003, the District of Columbia Court of Appeals issued its decision in the matter of Daka Inc., Appellant vs. Tyrone McCrae, Appellee A party who has won a judgment in a lawsuit or favorable findings in an administrative proceeding, which judgment or findings the losing party, the appellant, seeks to have a higher court reverse or set aside. (No. 00-CV-1270). In its decision, the court affirmed the award of compensatory damages in the amount of $187,500 and attorneys' fees and costs in the amount of $276,500. However, the court held that the award of $4,812,500 in punitive damages was unconstitutional and vacated the award. The court remanded the case to the trial court for re-determination of punitive damages in accordance with legal principles outlined in its opinion. The trial court has made a re-determination and has awarded punitive damages in the amount of $937,500 to the plaintiff. The company is considering whether to appeal the trial court's award but will record an expense related to predecessor companies of $937,500 in its current quarter based on this decision by the trial court. Littleton, Colo.-based Champps Entertainment Inc. currently owns and operates 48 Champps restaurants and franchises 12 Champps restaurants across 21 states. Champps, which competes in the upscale casual dining segment, offers an extensive menu consisting of freshly prepared food, coupled with exceptional service. Champps creates an exciting environment through the use of videos, music, sports, and promotions. Statements made in this press release include forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Information on significant potential risks and uncertainties that may cause such differences include, but are not limited to, those mentioned by the company from time to time in its filings with the Securities and Exchange Commission. The words "believe," "estimate," "expect," "intend," "anticipate," "should" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and, therefore, readers should not place undue reliance on these forward-looking statements. |
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