Williams v. CWI, Inc.

Reggie Williams (plaintiff), a newly wealthy NBA player, was steered by financial planner Waymon Hunt and his company CWI (defendant) into a $1 million heating-unit investment promised to yield returns and tax benefits. Williams paid a $50,000 deposit, which Hunt immediately took for his own use while repeatedly assuring Williams the investment was safe; the units were never bought. The agreement required repayment if it could not be fulfilled. Hunt first claimed the money as a finder's fee but later admitted he owed it. Williams also sought the tax savings he would have realized with legitimate advice.

Whether a plaintiff who was fraudulently induced to enter a contract may recover damages, including punitive damages, for the fraud.