The following excerpt is from Sentry Select Ins. Co. v. Badiou (In re Badiou), 527 B.R. 692 (Bankr. E.D. Cal. 2015):
The plaintiff's objection that he was not awarded exemplary damages in addition to compensatory damages is not well taken, because plaintiff prosecutes this action solely and only as assignee of the cause of action of the injured persons who owned the property at the time of the alleged unlawful conversion of their deed. In 8 Ruling Case Law page 595, it is said: Exemplary damages are allowed only to the immediate person receiving the injury, either in a suit prosecuted by himself or by someone for his use. This appears to be harmonious in principle with the rule that a bare right to file a bill in equity for fraud committed upon the assignor will be denied because the transfer of such right is against public policy. (Swallow v. Tungsten Products Co., 205 Cal. 207, 217, 270 P. 366.)
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