Opinion ID: 505496
Heading Depth: 1
Heading Rank: 2

Heading: sufficiency of the evidence

Text: 17 Equitable asserts that uncontradicted evidence introduced at trial demonstrates that Gonzalez failed to earn the minimum income required under the policy in question. It argues that insufficient evidence exists to support the jury award in favor of Gonzalez and that the district court erroneously denied its motions for a directed verdict, judgment notwithstanding the verdict, or in the alternative, a new trial. We disagree. 18 First we note the standards of review applicable to this case. Appellate review of the denial of a motion for a directed verdict or for a judgment n.o.v. is limited:  'we must examine the evidence in the light most favorable to the plaintiff and determine whether there are facts and inferences reasonably drawn from those facts which lead to but one conclusion--that there is a total failure of evidence to prove plaintiff's case.'  Mayo v. Schooner Capital Corp., 825 F.2d 566, 568 (1st Cir.1987) (quoting Fact Concerts, Inc. v. City of Newport, 626 F.2d 1060, 1064 (1st Cir.1980), vacated on other grounds, 453 U.S. 247, 101 S.Ct. 2748, 69 L.Ed.2d 616 (1981)). Review of the denial of a motion for a new trial is similarly limited. We will review only for an abuse of discretion, recognizing in our review the limited discretion afforded to the trial judge: [T]he trial judge may set aside a jury's verdict only if he or she believes that the outcome is against the clear weight of the evidence such that upholding the verdict will result in a miscarriage of justice. Conway v. Electro Switch Corp., 825 F.2d 593, 599 (1st Cir.1987) (citations omitted). 19 The crucial question for the trier of fact in the instant case was whether Gonzalez misrepresented his income within the meaning of Article 11.100 of the Insurance Code of Puerto Rico. In the instructions to the jury, the trial judge defined a misrepresentation as a situation in which the insured made the statement pertaining to his income knowing it to be untrue, or with total disregard of its veracity, regardless of whether or not he intended to deceive defendant.... Because the defendant did not object to that definition of misrepresentation, it establishes the contours of our inquiry. We must determine whether sufficient evidence exists, reading the facts and all inferences reasonably drawn therefrom in the light most favorable to the plaintiff, to establish that Gonzalez did not knowingly misstate his income or state it with complete disregard for accuracy. 20 Gonzalez asserts that any inaccuracy in his application was due to errors on the part of Berrios. He points out that he did not see the written question concerning income during the session with Berrios; that Berrios paraphrased many of the questions; that the agent merely asked if Gonzalez made at least $90,000 without specifying gross or net earnings; that Gonzalez responded truthfully in light of his gross income; and that Berrios never inquired as to the income of Gonzalez in the two years prior to the application. Appellant counters that net income is the relevant benchmark; that Gonzalez never made more than $30,000 in the relevant three-year period; and that even if gross income during the one year in question were at issue, Gonzalez simply did not gross in excess of $90,000 as he claimed during the interview with Berrios. To resolve these conflicting assertions, we turn to the evidence presented at trial. 21 Israel Delgado Ramos, the co-owner of the Plaza del Este Cash & Carry, testified that the insured earned $500 per week with a $2,000 bonus at Christmas. Gonzalez's annual salary therefore totalled approximately $28,000. In addition, Gonzalez earned income from a trucking operation which he began in May 1981. The business involved buying merchandise in bulk at the piers and selling it directly from the trucks to merchants. Gonzalez purchased two trucks and hired drivers to carry out this operation. One of the drivers, Robert Rivera, testified that the daily sales ranged from $3-5,000. The bookkeeper, Norma de Jesus Rivera, the wife of the second driver, Nicasio Rivera, testified that the sales in June totaled $23,649.33, while those in July totaled $27,039.45. Annualizing the lower figure would allow Gonzalez to estimate reasonably a gross income of $283,791.96--well above the $90,000 floor set by Equitable. 22 Equitable rejects this analysis. It insists upon looking at net income; it points out that the trucking operation generated a profit of merely $9.14 over the two-month summer period. Further, it points to the 1979 tax return of Gonzalez to establish an income of $9,554.85--a figure which varies considerably more than twenty percent from the $90,000 benchmark. 23 Although Equitable's analysis establishes that the insured's net income fell far short of the policy minimum and that his income varied more than twenty percent during the relevant period, it does not establish that Gonzalez misrepresented his income. Sufficient evidence exists for the trier of fact to have concluded that Berrios merely inquired as to income, without specifying a three-year time period, which Gonzalez reasonably understood as a query concerning gross income, and that the applicant answered truthfully to the best of his knowledge. Given the standards of review which apply, we find that the trial court properly denied Equitable's trial and post-trial motions. 24