Opinion ID: 720636
Heading Depth: 2
Heading Rank: 3

Heading: Evian Action

Text: 36 Evian's complaint sought declaratory relief as to the lawful termination of the distribution agreement. The district court ruled on this claim as a matter of law, and found that the Agreement had expired of its own terms no later than January 31, 1990 11 and that the relationship between the plaintiff as supplier and the defendant as distributor was lawfully terminated. Valley contests this ruling. 37 We agree with the district court's disposition. Paragraph 2 of the Agreement clearly specifies that it is valid for a period of one (1) year, and further provides that 38 [a]t the end of the initial term of one (1) year ..., the Distributor [Valley] shall have the right to exercise an option to renew this Agreement for an additional period of one (1) year, provided the distributor has [met a quota] ..., except in the event this Agreement is terminated by the Company.... 39 Evian and Valley entered into the Agreement in January 1988. By its own terms, even with the single renewal provided for in the contract, the Agreement could have lasted no longer than January 1990. 12 40 Valley claims that the Agreement was renewed beyond its specified terms, because of a claimed understanding that the relationship would continue so long as Valley met its yearly quotas, and because Evian employees gave Valley a 1990 quota in exchange for the December 1989 water purchase. We are unpersuaded. The contract plainly states: This Agreement and the terms hereof may be changed only by [a] writing signed by both the Company and the Distributor. This Agreement ... may not be changed orally. The Agreement is clear that only one renewal was allowed, and that the maximum term of the arrangement was two years. A further renewal would have constituted a modification of the Agreement's terms, and no modification was ever made in the manner specified by the contract. 41
42 In Counts I and II of Evian's complaint, it alleged, on goods sold and account stated theories, that Valley owed $367,907.03 for product that was delivered, but for which Valley never paid. To prove Count I, Evian showed that it delivered the water in question to Valley, that Valley accepted delivery, and that Valley failed to pay Evian's invoices. To prove Count II, Evian showed that it had stated an account for the specified sum, and that Valley had not objected within a reasonable time, or paid. The jury ruled in Evian's favor on Count I, but awarded damages of only $186,676.85--slightly more than half of Evian's invoices. The verdict was against Evian on Count II. Evian then moved for judgment as a matter of law pursuant to Fed.R.Civ.P. 50(b), arguing that it was entitled to the whole sum claimed. The district court denied the motion. 43 We review the denial of Evian's motion for judgment as a matter of law de novo. Song v. Ives Labs. Inc., 957 F.2d 1041, 1046 (2d Cir.1992). We will grant judgment as a matter of law only where there is such a complete absence of evidence supporting the verdict that the jury's findings could only have been the result of sheer surmise and conjecture, or ... there is such an overwhelming amount of evidence in favor of the movant that [a] reasonable and fair minded [jury] could not arrive at a verdict against him. Mattivi v. South African Marine Corp., 618 F.2d 163, 168 (2d Cir.1980). In making this assessment, we view the evidence in the light most favorable to Valley, and give it the benefit of all reasonable inferences the jury might have drawn in its favor. Smith v. Lightning Bolt Productions, Inc., 861 F.2d 363, 367 (2d Cir.1988). 44 The district court ruled without explanation that the evidence was such that the jury could reasonably [have] arriv[ed] at the verdict it did. Giving Valley every benefit of the doubt, we nevertheless disagree. As to Evian's first count, the jury found in its special verdict that Evian had proved Valley's acceptance of the goods at issue. This finding is not contested by Valley. The jury, however, answered, No, to the question whether Evian was entitled to recover the full $367,907.03 and, as noted, went on to award a considerably smaller amount. The only matter at issue here is whether Evian was entitled as a matter of law to the full amount. 45 Valley's argument on appeal in support of the jury verdict on Count I is uncompelling. Valley argues that the invoices presented by Evian at trial were copies, presumably calling into question their reliability, and that Evian's account statements for Valley fluctuated, initially showing that Valley owed more than the money ultimately claimed by Evian, suggesting that Evian's record keeping was too poor to be reliable. Neither point could have persuaded a reasonable jury. The fluctuation in Valley's account statement is entirely consistent with Evian's invoices, simply reflecting the posting of various credits and debits--none of which Valley specifically challenges. Nor was there evidence that Evian had forged or altered the invoices. Indeed, Valley's own books confirmed the amount of Evian's billing. In short, Valley points to no evidence that contradicts or calls into question Evian's entitlement to full payment. We conclude that Evian was entitled as a matter of law to the full amount of its invoices for these shipments of water to Valley. 46 As to Count II, the claim based on Evian's account stated, the district court instructed the jury that if it found Evian had sent a statement of account to Valley, and Valley did not object within a reasonable time, it must award Evian damages in the full amount requested. Valley raises no objection to the charge. It did not contest receiving account statements, nor proffer evidence that it ever objected to the statements. Indeed, Valley's own internal accounting records reflected a debt due to Evian of $367,907.03. Nor does Valley point to evidence that would justify any reduction in payment as a setoff. 13 Under the circumstances, there was no valid basis for the jury's rejection of Evian's claim for the stated account. 47 We therefore reverse the district court's ruling, and direct entry of judgment for Evian in the full amount of its invoices under the alternative theories set forth in Counts I and II.
48 The district court granted Evian prejudgment interest pursuant to New York law. See N.Y.Civ.Prac.L. & R. § 5001 et seq. Valley appeals this ruling, arguing that under Connecticut choice of law principles Connecticut's prejudgment interest statute would apply. We see no error here, for Valley's interpretation of Connecticut choice of law rules is incorrect. Connecticut follows the Restatement 's approach with respect to prejudgment interest, and applies [t]he local law of the state selected by [applicable choice of law principles to] determine[ ] whether plaintiff can recover interest, and, if so, the rate, upon damages awarded him for the period between breach of contract and the rendition of judgment. Restatement (Second) Conflict § 207 cmt. e; see PaineWebber Jackson & Curtis, Inc. v. Winters, 579 A.2d 545, 551-53, 22 Conn.App. 640, Conn.App.Ct. 640, 651-56 (1990) (noting that New York CPLR § 5001 is a rule of substantive law to be applied by Connecticut courts when New York law is applicable pursuant to choice of law principles; contrasting this substantive rule with a Connecticut procedural rule designed to encourage settlements). The district court's award of prejudgment interest pursuant to New York law was therefore entirely proper.