Opinion ID: 559511
Heading Depth: 2
Heading Rank: 1

Heading: Submission of Contract Interpretation to the Jury

Text: 19 Collectors' Guild contends that the district court erred by finding the contract to be ambiguous and, consequently, by submitting the question of contract interpretation to the jury. According to Collectors' Guild, the language of the second contract, namely that Werbungs transferred to Collectors' Guild's assignor all of Werbungs' right, title and interest in said two editions and all earnings therefrom unambiguously establishes that Werbungs transferred all its right and interest in the illustrations as well. 20 As a preliminary matter, we note that the parties assume, and we agree, that New York law governs this case. Under New York law, a contract must be interpreted to give effect to the intent of the parties. See, e.g., Curry Rd. Ltd. v. K-Mart Corp., 893 F.2d 509, 511 (2d Cir.1990). Where contract language is ambiguous, interpretation of the language's meaning, and hence, determination of the parties' intent, is a question for the jury. Proteus Books Ltd. v. Cherry Lane Music Co., 873 F.2d 502, 509 (2d Cir.1989); Citizens Cent. Bank v. Fisher, 126 A.D.2d 968, 969, 511 N.Y.S.2d 743 (4th Dep't 1987). Contract language is ambiguous if reasonable minds could differ as to its meaning. Van Wagner Advertising Corp. v. S & M Enterprises, 67 N.Y.2d 186, 191, 492 N.E.2d 756, 758-59, 501 N.Y.S.2d 628, 631 (1986); Chimart Associates v. Paul, 66 N.Y.2d 570, 573, 489 N.E.2d 231, 233, 498 N.Y.S.2d 344, 346 (1986). The determination of whether contract language is ambiguous is a question of law. See, e.g., Proteus Books, 873 F.2d at 509; Van Wagner Advertising, 67 N.Y.2d at 191, 492 N.E.2d at 758, 501 N.Y.S.2d at 631. Consequently, our review is de novo. Network Pub. Corp. v. Shapiro, 895 F.2d 97, 99 (2d Cir.1990). 21 Collectors' Guild argues that the phrase in the second contract assigning to Maecenas all [of Werbungs'] right, title and interest in said two editions includes Werbungs' right to share in the income from the future publication of the illustrations. Arguably, this assignment is broad and reasonably might be read as Collectors' Guild urges. However, the first contract plainly distinguishes between the illustrations and the editions. The second contract, which incorporates the first contract by reference, refers only to the editions. See, e.g., A.F.L. Falck, S.p.A. v. E.A. Karay Co., 639 F.Supp. 314, 320 (S.D.N.Y.1986) (where one contract incorporates another contract by reference, it is appropriate to examine both contracts to determine the parties' intent). Thus, it is equally plausible to conclude that had the parties intended the assignment in the second contract to include Werbungs' rights to income from the use of the illustrations, they knew how to do so expressly. Accordingly, because the contract is susceptible to more than one reasonable interpretation, the district court properly submitted the issue of contract interpretation to the jury. See, e.g., Proteus Books, 873 F.2d at 509; Fisher, 126 A.D.2d at 969, 511 N.Y.S.2d at 743. 22