Background:
Valley Traffic Systems Inc., Philip Keith Jackman, and Trevor Paine (defendants) appealed a decision where they were found to have engaged in a coordinated defamation campaign against Raoul Malak and the Ansan Traffic Group (plaintiffs), their competitors in the traffic control services industry.

Key Legal Issues:
The defendants argued the trial judge erred by:

1. Misapplying the "common design" tort standard by not requiring direct participation.
2. Basing liability on speculative inferences.
3. Relying improperly on hearsay evidence.
4. Awarding aggravated and punitive damages on a joint and several basis without sufficient evidence of malice.

Court Findings:
The court dismissed the appeal, affirming that Valley Traffic Systems Inc. and the individual defendants intentionally participated in a defamatory scheme to harm the plaintiffs' business reputation. The court found the defendants liable for defamation, with credible evidence showing payments to co-defendant Remon Hanna to further the defamatory acts.

Damages Awarded:
The court upheld damages totaling $1.5 million:

• $500,000 in general damages for Raoul Malak,
• $300,000 in general damages for the Ansan Traffic Group,
• $200,000 in aggravated damages, and
• $500,000 in punitive damages.

The total amount awarded reflected compensation for reputational harm and punishment for malicious conduct. The aggravated and punitive damages were ordered on a joint and several basis, holding all defendants accountable for the full amount.