Opinion ID: 521021
Heading Depth: 2
Heading Rank: 2

Heading: the alternative grant of a new trial on the contract claims

Text: 31 The district court's authority to order a new trial is admittedly less constrained than its authority to enter a judgment contrary to the jury's verdict. However, the district court may order a new trial only if it finds that the jury's verdict was clearly contrary to the weight of the evidence. William Inglis & Sons, 668 F.2d at 1027; Traver v. Meshriy, 627 F.2d 934, 940-41 (9th Cir.1980). Since we conclude that the jury's verdict in this case was not clearly against the weight of the evidence, we hold that the district court abused its discretion when it ordered a new trial. 32 The plaintiffs' position respecting the alternative grant of a new trial on the contract claims is understandably guarded. Although plaintiffs do not explicitly request reversal of the retrial order, they argue that the district court abused its discretion in ordering that a new trial be held on the contractual liability issues in the event that the judgment nov were reversed. By insisting that the district court abused its discretion, the plaintiffs imply that their acceptance of a new trial on Aramco's contractual liability is contingent on this court's determination that the tort claims must proceed to trial. 33 We take plaintiffs' position to be that they object to retrial of Aramco's contractual liability given our disposition of the tort issues. See infra section IV. We cannot say that the jury's verdict was clearly against the weight of the evidence. Aramco failed to present substantial evidence in support of their view that the plaintiffs should have investigated whether the ban on unlicensed commercial businesses applied to videotape rental clubs. Neither of the company directives mentions services which are available only on the Aramco compound. Moreover, several Aramco officials participated in the club and assured the plaintiffs that the club was permissible. The McGhees also consulted with Fred Drucker, an attorney whom Aramco's Personnel Department relied upon for legal advice; Drucker told the McGhees that they were not in violation of the law as long as their club included no pornography. George Ryan, head of Aramco's Internal Security Department, told the McGhees that they were not violating company policy. Further, Mr. McGhee and Mr. Rudh consulted with their immediate superiors and were assured that they were not violating company policy. Finally, Mrs. McGhee consulted Aramco's Community Services Department and was told that, as long as the club included no pornography, she had nothing to worry about. In sum, the plaintiffs had ample reason to believe that they were complying with company policy.