Opinion ID: 767757
Heading Depth: 2
Heading Rank: 6

Heading: Trial Court's Findings of Fact

Text: 60 In granting Schmitt's Rule 50 motion, the trial court made two factual findings that Balance Dynamics contests. In considering the factual findings that a trial court has made in the context of granting of a Rule 50 motion, a reviewing court considers de novo the evidence in the light most favorable to the non-movant, giving that party the benefit of all reasonable inferences. Jackson v. Quanex, 191 F.3d at 657. In ruling on a Rule 50 motion, a trial court is not permitted toweigh the evidence or make credibility determinations, as these are jury functions. Id. A dismissal pursuant to Rule 50 is improper where the non-movant presents sufficient evidence to raise a material issue of fact for the jury. Id. 61 First, the trial court acknowledged that Balance Dynamics could prove actual confusion by presenting evidence that the Schmitt communications were literally false; but it found that even Balance Dynamics' expert had been unwilling to testify that the Schmitt communications were literally false. Since we have ruled that a showing of literal falsity in this case would not have aided Balance Dynamics in its quest to recover damages to goodwill, there is no need to decide whether the trial court erred in its factual determination that Balance Dynamics presented no evidence of literal falsity. 62 Second, Balance Dynamics contests the trial court's finding that its damage control activities were an over-reaction to the problem. The trial court made the following factual determinations: 63 the evidence really taken as a whole shows what happened here. Plaintiff got a copy of this letter just as Mr. Schulte testified, called a few of his partners together and began to over-react something horrible, and ran out and tried to, quote, put out the fire, when no fire was ever testified to. I don't know what fire the plaintiff is talking about. There was just no fire produced for this Court.... That damage that you called loss control is an over-reaction by the Plaintiff that I think the evidence on liability makes it very clear, you didn't even have to do it. You could have handled half of these customers on the telephone, but more importantly his customers included sophisticated engineers at Ford Motor Car Company, the other auto manufacturers and big companies. Engineers know just exactly what those standards are, just exactly what... the EPA rulings are... frankly I have no idea why this case has been hanging around the court for three and a half years. 64 Balance Dynamics protests this finding on the grounds that Mr. Schulte had testified that, after the letter was disseminated, some of his customers contacted him in reference to its claims. Schulte further stated that of those companies with whom he had initiated contact, most had received the letter. Schulte testified that his customers told him they didn't want to necessarily have anything to do with a product that had these stipulations associated with it. He also testified that many customers were concerned about the regulation and disposal of the Balance Dynamics products. 65 Obviously, the trial court did not have the benefit of an articulated standard for recovery of damage control costs. Under that standard, the testimony above contradicts the trial court's conclusion that Balance Dynamics failed to put on evidence showing the existence of a fire to put out. The customer inquiries Balance Dynamics received could be taken as proof of the likelihood of damage, cf. Harper House, Inc. v. Thomas Nelson, Inc., 889 F.2d at 210; PPX Enterprises, Inc. v. AudioFidelity Enterprises, Inc., 818 F.2d at 272, and may suffice to show that the deception was material and likely to influence a purchasing decision. Further, the customer inquiries belie the proposition that Balance Dynamics' customers are so familiar with EPA regulations that Schmitt's communications would not be off-putting. Therefore, this evidence creates a material issue of fact and the trial court should have let the matter go to a jury for determination. Jackson v. Quanex, 191 F.3d at 647.