Opinion ID: 721371
Heading Depth: 1
Heading Rank: 3

Heading: maddox's cross-appeal

Text: 60 In its cross-appeal, Maddox contends that the judge erred when he reduced the amount of damages awarded against Benham by $1,137,000, and against Dynalogic by $330,000, contending both that Maddox offered proof of damages and that the district court erred in not admitting evidence of the performance bond. We agree with the district court that Maddox has not demonstrated evidence of actual damages, and we affirm the reduction in damages. 61 The district court's reduction of damages in this case is akin to a partial judgment as a matter of law on that one claim. Although Maddox asserts that the district court's action is best viewed as a remittitur, which can only be granted when the award is so excessive as to shock the court's conscience, Triton, 85 F.3d at 347, this ignores the substance of the district court's action. The district court noted that its action was not a remittitur. Rather, as the district court concluded, Maddox failed to offer sufficient proof as to one independent, readily identifiable quantum of damages. 62 When it is apparent as a matter of law that certain identifiable sums included in the verdict should not have been there, district courts possess the power to reduce the amount of the verdict accordingly. See Hoover v. Valley West D M, 823 F.2d 227, 230 (8th Cir.1987) (district court properly reduced verdict by $17,500 because plaintiff, as a matter of law, failed to prove damages on one independent issue); see also 6A J. Moore, Moore's Federal Practice, p 59.08, at 59-201, 59-202 (2d ed.1995) (when there is no genuine factual issue as to the amount of recoverable damages ... the court has the power to order judgment for the amount that is recoverable as a matter of law); 11 Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure: Civil 2d § 2815, at 159 (2d ed.1995) (same). We review such a reduction of verdict as we would any other order granting judgment as a matter of law. We will affirm the district court's order only if a reasonable jury, viewing the evidence in the light most favorable to the nonmovant and giving the nonmovant the benefit of all reasonable inferences, could not draw differing conclusions from the evidence. See Abbott v. City of Crocker, Mo., 30 F.3d 994, 997 (8th Cir.1994). 63 Under Missouri law, proof of actual damages is required for a party to recover for a breach of contract. See U.S. Durum Milling, 785 F.Supp. at 1373 (analyzing Missouri law). It is well settled that  'contingent, speculative, or merely possible [consequences] are not proper to be considered by the jury in ascertaining the damages, for it would be plainly unjust to compel one to pay damages for results that may or may not ensue....'  First Nat'l Bank v. Kansas City S. Ry., 865 S.W.2d 719, 739 (Mo.App.1993) (quoting Hahn v. McDowell, 349 S.W.2d 479, 482 (Mo.App.1961)). To recover damages, a plaintiff must make more than just a showing that damages are possible or even probable developments.... Thienes v. Harlin Fruit Co., 499 S.W.2d 223, 230 (Mo.App.1973). 64 Maddox presented no evidence whatsoever that it actually reimbursed EEI for the sums expended by EEI. Although Maddox presented evidence that EEI looked to Maddox for reimbursement, 11 until Maddox actually reimbursed EEI, it has suffered no concrete damages. For example, should EEI have sued Maddox for these sums (rather than collecting on the performance bond), it is conceivable that Maddox could have interposed a successful defense against EEI and be adjudged not liable to EEI. Until Maddox has paid the costs or has been adjudged liable for these costs, any damages to Maddox are merely speculative and contingent, and hence not recoverable. 65 Maddox counters that, had it been able to introduce evidence of the performance bond, then there would have been sufficient evidence to enable the jury to conclude that Maddox had been damaged. This excluded evidence would have shown that USF & G paid $2.8 million to EEI to cover the added costs of repair, and that Maddox was contractually liable to reimburse USF & G. Although we will assume for the sake of argument that it was error to disallow this evidence, we believe that any possible error was harmless. 66 Maddox correctly notes that USF & G acted in the role of surety, and that Maddox was the indemnitor for USF & G. Under Missouri law, an indemnitor of a surety compelled to satisfy the liability of a surety is subrogated to all rights to which the surety would have been subrogated. Westerhold v. Carroll, 419 S.W.2d 73, 76 (Mo.1967). Thus, Maddox argues that it can maintain a suit against Benham and Dynalogic because it is subrogated to all of the rights held by USF & G, which had actually paid the repair costs. 67 Maddox misinterprets Missouri law. Although it has correctly quoted Westerhold, it ignores one important fact of that case: the indemnitor had already paid the surety, which is why subrogation was permitted. Id. This is in accord with the long-established rule that the right of subrogation does not accrue until the party seeking subrogation has paid the underlying claim. See Liberty Mut. Ins. Co. v. Mercantile Home Bank & Trust Co., 241 S.W.2d 493, 496 (Mo.App.1951); see also 73 Am.Jur.2d Subrogation §§ 26, 30 (2d ed. 1974 & Supp.1996); 83 C.J.S. Subrogation § 11 (1953 & Supp.1995) ([t]he rights of a subrogee attach at the time ... he pays the debt). 68 In this case, Maddox has offered no evidence that it has reimbursed USF & G for the sums it expended. The evidence excluded by the district court would not have established this either, because the offer of proof would only have shown that USF & G considered Maddox to be liable, and not that Maddox had been adjudged liable or actually paid the debt. See 6 Trial Tr. at 11-14. Therefore, even had the district court admitted the evidence, Maddox would not have been able to demonstrate that it suffered concrete damages. The district court correctly granted the reduction in verdict.