Opinion ID: 726057
Heading Depth: 3
Heading Rank: 1

Heading: Punitive Damages Evidence/Gross Profits Evidence

Text: 44 Since the evidence of MMCC's gross profit was relevant to EPC's breach of contract claim, which was not dismissed, MMCC was not denied a fair trial by its admission. As the district court wrote: 45 First, the evidence of MMCC's profit was relevant because it supported plaintiff's claim that MMCC did not pay Evergreen for work that Evergreen did for which MMCC received payment from the Army Corps of Engineers. In other words, as Evergreen argued, the fact that MMCC exceeded its original expectations with respect to profit is evidence that it got away without paying Evergreen. 46 Second, proof of bad faith and malice were relevant in respects other than punitive damages. Plaintiff alleged, among other things, that MMCC breached the Subcontract by failing to deal in good faith and that the no damage for delay clause of the Subcontract was invalid due to MMCC's bad faith and willful, malicious conduct. Hence, I overruled defendants' objections and admitted evidence that was relevant to these claims of bad faith and fraud, that also was relevant to the issue of punitive damages. This evidence included: MMCC's handling of the confession of judgment and promissory note; MMCC's inflation of the backcharges; MMCC's receipt of payment for Evergreen's work and refusal in turn to pay Evergreen; and Dennis Capolino's purported statement when negotiating the backcharges that DeLello could try to litigate but that MMCC would tie him up for years. 47 On the other hand, I granted defendants' objections and refused to admit evidence that was relevant only to the punitive damages claim. This included evidence of MMCC's profits from other construction projects, its annual revenues, its total size and assets, and the Capolino family's annual income and total net worth. 48 Evergreen, 890 F.Supp. at 1224 (original emphasis). We find that the district court did not abuse its discretion in deciding that the probative value of this evidence was not substantially outweighed by its prejudicial effect. See Fed.R.Evid. 403.