Opinion ID: 702337
Heading Depth: 1
Heading Rank: 3

Heading: Whether the District Court Abused Its Discretion in

Text: Awarding Punitive Damages 20 Finally, Gramercy argues that the district court incorrectly awarded punitive damages to Wolens. We review the district court's entry of judgment of punitive damages for abuse of discretion. Cash v. Beltmann North Am. Co., 900 F.2d 109, 110 (7th Cir.1990). An abuse of discretion occurs when a court applies the wrong legal standard or considers inappropriate factors in reaching a conclusion of law. Id. The proper inquiry is whether a reasonable person using the proper legal standard could agree with the district court. United States Equal Employment Opportunity Comm. v. Century Broadcasting Corp., 957 F.2d 1446, 1460 (7th Cir.1992). 21 The Illinois Sales Representative Act provides for exemplary damages as follows: 22 A principal who fails to comply with the provisions of Sec. 2 concerning timely payment of commissions due upon the termination of the contract with the sales representative, shall be liable in a civil action for exemplary damages in an amount which does not exceed three times the amount of the commissions owed to the sale representative. Additionally, such principals shall pay their sales representatives a reasonable attorney fee and court costs. 23 820 ILCS 120/3. 24 Courts will award exemplary damages only when the sales representative proves that the principal willfully and wantonly refused to pay. Century Broadcasting, 957 F.2d at 1460. Illinois courts caution against awarding exemplary damages under the Sales Act except to punish and deter intentional or egregious conduct. Zavell & Assocs., Inc. v. CCA Indus., Inc., 257 Ill.App.3d 319, 195 Ill.Dec. 586, 588, 628 N.E.2d 1050, 1052 (1993). 25 Gramercy complains that the jury determination in its favor on its claim of Wolens' misrepresentation is irreconcilable with the jury's punitive damages sanction against Gramercy. Gramercy argues that the standard for exemplary damages could not have been met if the jury also returned a verdict in its favor. 26 Federal Rule of Appellate Procedure 10(b)(2) requires that a transcript be included in the record on appeal where a party challenges that insufficient evidence supports a verdict. However, Gramercy did not request that the trial transcript be included in the record on appeal. As a result we are unable to evaluate the evidence submitted in this case. Such an omission is grounds for forfeiture of a claim. 1 27 Gramercy protests in its reply brief that it does not challenge the sufficiency of the evidence in support of the punitive damages and that, therefore, no transcript is necessary. Instead, Gramercy argues that, because it had a valid claim against Wolens, it was justified as a matter of law in not paying Wolens his commissions until after a judicial determination of the amount by which Wolens had damaged Gramercy. Moreover, even if it were not justified in waiting, it did not have the requisite intent as a matter of law to be liable for punitive damages. 28 Belying this position, however, are Gramercy's repeated references in its brief (obviously without citation to a transcript) asserting support from what the evidence at trial demonstrated. For example, Gramercy states: 29 The evidence introduced at trial showed that Gramercy had a good faith and reasonable basis to believe that Wolens had caused it damages in an amount in excess of what it owed Wolens 30 and: 31 Wolens did not introduce any evidence at trial that Gramercy's conduct was outrageous and the moral equivalent of criminal conduct. 32 Brief of Appellant at 19, 22. 33 These are unmistakable references to what evidence the jury did and did not hear, yet we cannot evaluate the accuracy of these assertions of fact because we do not have the transcript of the trial. In addition, Gramercy apparently considers it obvious what precise testimony and facts the jury believed to be true despite the fact that neither special verdict forms nor interrogatories were used. 34 We do not find matters nearly so clear, and a trial transcript is an essential tool for examining what facts the jury had to support its verdict. We do not know, for example, whether the jury had any basis to reach a conclusion that Gramercy acted willfully, wantonly, egregiously, or in bad faith in withholding Wolens' commissions. And, incidentally, the jury instructions included in the record on appeal are obviously incomplete, so we don't even know in what legal framework the jury considered the evidence and arguments of counsel. 35 It is our duty to reconcile apparently inconsistent verdicts, if possible, rather than to overturn them. Century Broadcasting, 957 F.2d at 1460. This standard puts Gramercy in a difficult position to begin with, a position made impossible by its decision not to provide a transcript. Gramercy failed to comply with FED.R.APP.P. 10(b)(2), thus restricting our ability to review its appeal of the jury's punitive damages award. That appeal is forfeited. 36 AFFIRMED.