Opinion ID: 574972
Heading Depth: 3
Heading Rank: 1

Heading: The Inadequate Consideration Theory for Invalidating the Release

Text: 14 The jury was instructed that they could find the release was not supported by adequate consideration if it found a large disparity between the amount of the release and Counts' actual monetary loss. Counsel for Burlington preserved its objection to this instruction for appeal. Counsel specifically objected to the following language in the consideration instruction: A release is not supported by adequate consideration is [sic] there is a large disparity between the amount of the release and the actual monetary loss which the injured party eventually incurred. 15 This instruction does not correctly state FELA law on challenging a release for want of consideration. The Supreme Court has held that adequate consideration exists for a release of FELA claims when there are mutual concessions by the employee and the employer, and if the employee who gives the release receives something of value to which he had no previous right. Maynard v. Durham & S. Ry. Co., 365 U.S. 160, 163, 81 S.Ct. 561, 563, 5 L.Ed.2d 486 (1961). 16 In Maynard, the employee claimed that all he received in exchange for his release was his paycheck, to which he had an absolute right, and nothing more. Id. The Supreme Court held there was a genuine issue of fact concerning the presence of consideration for the release by Maynard. Id. In this case, however, according to Counts' own computations, he received $70,423 in addition to his wage entitlement in exchange for signing the release. Under Maynard, the release in this case was supported by adequate consideration and the issue should not have been submitted to the jury. The instruction stated incorrect law and the error was not harmless. 17 Generally, where there is an error of law in submitting one of a number of theories to the jury, the general jury verdict is tainted because it is impossible for the reviewing court to determine with certainty whether the theory upon which the jury based its verdict is a proper theory. Sunkist Growers, Inc. v. Winckler & Smith Citrus Products Co., 370 U.S. 19, 29-30, 82 S.Ct. 1130, 1136, 8 L.Ed.2d 305 (1962); Kern v. Levolor Lorentzen, Inc., 899 F.2d 772, 777 (9th Cir.1990). However, this court may construe a general verdict as attributable to one of several theories if it was supported by substantial evidence and was submitted to the jury free from error. Kern, 899 F.2d at 777, citing Traver v. Meshriy, 627 F.2d 934, 938 (9th Cir.1980). 18 The factors we must consider in deciding whether to exercise this discretion are: (1) the potential for confusion of the jury; (2) whether the losing party's defenses apply to the count upon which the verdict is being sustained; (3) the strength of the evidence supporting the count relied upon to sustain the verdict; and (4) the extent to which the same disputed issues of fact apply to the various legal theories. 19 Id., citing Traver, 627 F.2d at 938-39. 20 We do not find this an appropriate case for the exercise of discretion to avoid reversing the release phase of the case. Unlike Kern and Traver, the facts used by Counts to support the theories of recovery (lack of consideration, fraud in the inducement, mutual mistake of fact and economic duress) were not largely identical. Unlike Benigni v. City of Hemet, 879 F.2d 473 (9th Cir.1988), the theories in this case are not practically identical. Id. at 478. As was the case in Syufy Enterprises v. American Multicinema, Inc., 793 F.2d 990, 1002 (9th Cir.1986), cert. denied, 479 U.S. 1031, 107 S.Ct. 876, 93 L.Ed.2d 830 and 479 U.S. 1034, 107 S.Ct. 884, 93 L.Ed.2d 838 (1987), this case involves claims sharing common issues of fact, but also involving distinctive legal and factual components. Furthermore, as will be discussed below, of the four theories that were submitted to the jury, only one was submitted to the jury free from error. 21 Contrary to Counts' argument, the failure of Burlington to request a special verdict in this case does not affect the appealability of this issue. This issue involves legal claims rather than factual claims and does not involve the sufficiency of the evidence or calculation of damages. Compare McCord v. Maguire, 873 F.2d 1271, 1274 (9th Cir.), amended, 885 F.2d 650 (9th Cir.1989); Landes Constr. Co. v. Royal Bank of Canada, 833 F.2d 1365, 1373 (9th Cir.1987). 22