Opinion ID: 436140
Heading Depth: 2
Heading Rank: 3

Heading: Similar Occurrence Evidence

Text: 20 First Commodity challenges the district court's admission of the 1976 consent decree introduced by Kerr. In this consent decree, Commodity Futures Trading Commission v. First Commodity Corporation of Boston, Donald Schleicher, Richard Schleicher, John Farwell Howe, III, No. 76-4051-M (D.Mass. Nov. 11, 1976), First Commodity agreed to cease and desist from a variety of deceptive practices, many of which are identical to the practices used by First Commodity in defrauding Kerr. (Tr. at 262-69). The consent decree was admitted solely for the purpose of demonstrating First Commodity's knowledge and intent to commit the fraud insofar as such knowledge and intent are relevant to the issue of punitive damages. See New England Enterprises, Inc. v. United States, 400 F.2d 58, 70 (1st Cir.1968). The jury was instructed adequately as to the limited purpose for which the evidence was admitted. Tr. at 269-70. Under Federal Rules of Evidence 404(b), the trial court has the duty to balance the probative force of the evidence against any possible prejudicial effect it might have on the jury. After both parties argued the consent decree's admissibility, the trial court weighed the probative value of this evidence against its possible prejudicial effect in the manner required by Rule 404(b). We cannot say that the trial court abused its discretion in admitting the 1976 consent decree. 21
22 First Commodity contends that the admission of the testimony of several witnesses who testified to prior similar activities by First Commodity was so prejudicial that it violated Rule 404(b) of the Federal Rules of Evidence, thus constituting an abuse of discretion by the district court and compelling reversal. We do not agree. 23 Rule 404(b) provides that evidence of other crimes or bad acts of the defendant may be admitted to show absence of mistake, identity, intent, and common plan or scheme. On the issue of punitive damages, the testimony of other customers about representations made by First Commodity through its agents was properly introduced to show First Commodity's absence of mistake and its intent to defraud the public. See Colonial Refrigerated Transportation, Inc. v. Mitchell, 403 F.2d 541 (5th Cir.1968) (judgment against defendant for prior similar fraud committed by defendant's employees held admissible in suit against defendant for limited purpose of proving motive, knowledge, or intent). Inasmuch as proper limiting instructions were given to the jury, First Commodity suffered no unfair prejudice from the admission of this testimony. 1 We hold that the district court did not abuse its discretion in admitting the testimony of other First Commodity customers. 2 24