Opinion ID: 564824
Heading Depth: 2
Heading Rank: 1

Heading: Partial Directed Verdict

Text: 19 At the close of the plaintiffs' evidence, Duramed moved for partial directed verdict solely on the issue of whether Duramed had failed to use its best efforts to secure the release of the Pottis' shares by September 30, 1987. Duramed makes the same argument to this Court that was unavailing below: that the evidence presented by plaintiffs was insufficient for any reasonable jury to find that best efforts were not expended by Duramed. 20 In this Circuit it is well established that a federal court sitting in diversity applies the standard for a directed verdict used by the courts of the state whose substantive law governs the action; in this case Ohio law. Arms v. State Farm Fire and Cas. Co., 731 F.2d 1245, 1248 (6th Cir.1984); Gold v. National Savs. Bank, 641 F.2d 430, 434 (6th Cir.), cert. denied, 454 U.S. 826, 102 S.Ct. 116, 70 L.Ed.2d 100 (1981). Ohio courts require that a court presented with a motion for a directed verdict construe the evidence and all permissible inferences therefrom most strongly in favor of the party against whom the motion is made and consider neither the weight of the evidence nor the credibility of the witnesses in disposing of the motion. See, e.g., Lones v. Detroit, T. & I.R. Co., 398 F.2d 914, 919 (6th Cir.1968), cert. denied, 393 U.S. 1063, 89 S.Ct. 714, 21 L.Ed.2d 705 (1969); Durham v. Warner Elevator Mfg. Co., 166 Ohio St. 31, 139 N.E.2d 10 (1956). Such a motion will be granted only if, after considering the evidence in this light, there can be but one reasonable conclusion as to the proper verdict. 166 Ohio St. at 36, 139 N.E.2d 10. 21 Duramed concedes that whether Duramed exerted its best efforts through the employment of legal counsel and all other means to release plaintiffs' shares from escrow is a question of fact. However, Duramed argues that at the close of plaintiffs' case their motion for a partial directed verdict should have been granted because plaintiffs had failed to produce evidence showing with some certainty what Duramed could have done, but failed to do, to obtain the release of the escrowed shares. Our review of whether there was evidence that Duramed did not use its best efforts must be based on the entire record, not just the record at the end of plaintiffs' case, because Duramed proceeded to offer evidence in its own defense. See 9 C. Wright & A. Miller, Federal Practice and Procedure Sec. 2534, at 588-90 (1971); 5A J. Moore & J. Lucas, Moore's Federal Practice, p 50.05 (2d ed. 1986). Although Duramed did renew its motion at the close of the evidence, the totality of evidence was sufficient to submit this issue to the jury. 22 Plaintiffs' evidence on the best efforts question consisted of testimony from Dr. Gopal Potti himself and Harry Santen, an attorney who negotiated the Termination Agreement on behalf of Dr. Potti. Both witnesses testified to the importance of the release of escrow provision and the considerable discussions with Duramed's principals and attorney about the need of Dr. Potti to receive his shares. Both testified that several possible means of obtaining the release of the escrowed shares were discussed with Duramed, including contacting the Division of Securities to obtain an exception to the Escrow Agreement 2 or substituting other shares between plaintiffs and another shareholder. Whether the latter method would have been possible is questionable, but there was evidence that Duramed did not follow through on efforts to secure early release of the shares. The evidence was therefore sufficient to raise the reasonable inference that Duramed did not in fact use its best efforts to have plaintiffs' shares released.