Opinion ID: 76196
Heading Depth: 2
Heading Rank: 1

Heading: Whether the District Court Erred in Dismissing GT&T's Claim under the FDUTPA

Text: 12 The district court dismissed GT&T's FDUTPA claims, concluding that GT&T could not avail itself of the statute because it was a supplier — rather than a consumer — for the transactions in question. It also held that the FDUTPA's 2001 amendments should not apply retroactively to this case. We agree with the district court's reasoning on both issues. 13 The transactions in question all occurred in 1996, so the 1993 amendments to the FDUTPA apply to this case. The definition of consumer in the 1993 version of the FDUTPA included not only individuals but also various business organizations, including corporations. Fla. Stat. Ann. § 501.203(7) (West 1997). In 1993, the Florida legislature amended the stated purposes and rules of construction for the FDUTPA to provide as its central aim the protection of the consuming public at large and legitimate business enterprises from those who engage in unfair methods of competition, or unconscionable, deceptive, or unfair acts or practices in the conduct of any trade or commerce. Id. § 501.22. Before 1993, the same provision stated, To protect consumers from suppliers who commit deceptive and unfair trade practices. Id. historical & statutory notes. 14 GT&T argues that the 1993 amendments demonstrated a shift in the FDUTPA to afford protection not just to consumers but also to any legitimate business enterprise that had been injured by an unfair or deceptive business practice. Accordingly, GT&T argues that the fact that it was the supplier in this transaction should not prevent its FDUTPA claims. At least one court has agreed with this general argument. See Tampa Bay Storm, Inc. v. Arena Football League, Inc., 1998 WL 182418 (M.D.Fla. Mar.19, 1998). 15 Here, in dismissing GT&T's FDUTPA claims, the district court cited § 501.211(2) of the Act, which states, In any individual action brought by a consumer who has suffered a loss as a result of a violation of this part, such consumer may recover actual damages. The court reasoned that although the definition of consumer may include corporations and other business associations, Florida courts have focused on the capacity in which a given entity was acting in determining whether the entity qualified as a `consumer' and as such could seek monetary damages under the FDUTPA. 4 The district court relied on Warren Technology, Inc. v. Hines Interests Limited Partnership, 733 So.2d 1146 (Fla.3d Dist.Ct.App.1999), and N.G.L. Travel Associates v. Celebrity Cruises, Inc., 764 So.2d 672 (Fla.3d Dist. Ct.App.2000). Both of these cases instructed that corporations could not bring suit under the 1993 version of the FDUTPA when they had acted as suppliers or producers rather than as consumers for the transactions in question. 16 The district court was correct to dismiss the FDUTPA claims. As described above, two decisions by Florida courts have addressed the FDUTPA's application to this very issue, and these decisions support the district court's dismissal of the FDUTPA claims. Furthermore, even though the 1993 amendments expanded the law's protection to both the consuming public at large and legitimate business enterprises, the language of the statute still only permitted consumers to bring actions seeking monetary relief. 5 Fla. Stat. § 501.211(2) (West 1997). 17 According to GT&T's alternative argument, the FDUTPA's 2001 amendments expanded the pool of possible plaintiffs to include nonconsumers. Even if this were so, we cannot agree with GT&T's contention that the 2001 amendments should apply retroactively. [I]n the absence of clear legislative intent to the contrary, a law affecting substantive rights is presumed to apply prospectively. Arrow Air, Inc. v. Walsh, 645 So.2d 422, 424 (Fla.1994). Here, retroactive application would affect substantive rights by creating rights where none existed before. Therefore, for GT&T to prevail on its argument, the Florida legislature must have clearly intended retroactive application. The Act's text and the legislative history do not provide evidence of clear legislative intent to apply the 2001 amendments retroactively. Therefore, the district court did not err in dismissing GT&T's claims under the FDUTPA. 18 B. Whether the District Court Erred in Upholding the Jury's Calculation of GT&T's Compensatory Damages 19 In reviewing GT&T's renewed motion for judgment as a matter of law on the amount of compensatory damages, we must decide whether there was a legally sufficient evidentiary basis for a reasonable jury to find that GT&T's compensatory damages were $263,155. Fed. R.Civ.P. 50(a). In reviewing the denial of the Rule 50 motion, we consider all the evidence, and the inferences drawn therefrom, in the light most favorable to the nonmoving party. Carter v. City of Miami, 870 F.2d 578, 581 (11th Cir.1989). 20 In reviewing the jury's verdict, it is not our province to substitute our judgment as to the correct measure of damages; instead, we must determine whether the jury's calculation was reasonable in light of the trial evidence. Evidence in the record supports three possible calculations for the number of minutes that MCI routed to Guyana without paying termination charges. One witness stated that the number of minutes was 1,238,377. This calculation of minutes multiplied by the contract rate of $0.85 per minute would have produced $1,052,620 in termination payments. The jury, however, did not believe that GT&T carried its burden to prove all of its alleged compensatory damages, as it awarded only $263,155. 21 If the jury assumed that the set of stolen minutes and the set of all 1996 minutes had roughly the same breakdown of audiotext versus non-audiotext minutes, it reasonably could have concluded that GT&T proved its damages with respect to all of the minutes for non-audiotext calls. Thus, because non-audiotext calls constituted twenty-five percent of the minutes, there would have been approximately 309,594.25 non-audiotext minutes. When multiplied by the contract rate of $0.85 per minute, there would be damages of $263,155 for the non-audiotext minutes. This number is, probably not coincidentally, the exact amount of compensatory damages that the jury awarded. 22 The next inquiry is whether a reasonable jury could have completely denied recovery for the other seventy-five percent of the minutes. GT&T asserts that the evidence would have compelled a reasonable jury to award it $0.85 for every minute that the appellees stole. We disagree. The evidence shows that GT&T, following industry custom, usually gave audiotext companies a large percentage of the termination payments generated from audiotext calls. Failing to discount the likely amount of the kickbacks to audiotext companies would ignore industry custom and would place GT&T in a better position than it would have occupied but for the defendants' wrong. Accordingly, it was reasonable for the jury to reduce GT&T's damages award by the amount of money that GT&T would have kicked back to audiotext companies. 23 Nevertheless, it was not reasonable for the jury to find that GT&T suffered zero damages with respect to the audiotext calls. Even though determining the amount paid in kickbacks is difficult, the trial evidence gives varying rates for the amount of the kickbacks, ranging from $0.40 per minute to $0.525 per minute. Unfortunately, neither side provided the jury with a weighted average for the discount rate. Therefore, because tort law requires an aggrieved plaintiff to prove its damages with a reasonable degree of certainty, see Central State Transit & Leasing Corp. v. Jones Boat Yard, Inc., 206 F.3d 1373, 1376-77 (11th Cir.2000), we will assume the highest discount rate, $0.525 per minute. Using this figure, the minimum amount of damages that a reasonable jury could have found was $533,462. We arrive at this figure by adding the amount that GT&T would have earned from nonaudiotext calls ($248,447.78 6 ) and the amount that it would have earned from audiotext calls ($284,984.22 7 ). Accordingly, even though GT&T forwarded an incorrect calculation of its losses, the district court erred in denying GT&T's Rule 50 motion as to the measure of its damages because the jury's calculation of damages was unreasonable. 24 C. Whether the District Court Erred in Upholding the Jury's Calculation of GT&T's Right to Restitution 25 In most cases there would be no need to assess the availability and the measure of a restitutionary remedy, as the amount of the plaintiff's loss usually equals the measure of the defendant's gain. But, here, GT&T paid kickbacks to audiotext companies, which practice would have reduced the amount that the defendants would need to pay in compensation to return GT&T to its rightful position. Accordingly, we must address GT&T's restitution claim because GT&T's loss was less than the defendants' gain. 26 Restitution is a remedy that is often available to victims of a wrong. Restitution measures a plaintiff's recovery according to the defendant's, rather than the plaintiff's, rightful position. Because the jury measured GT&T's right to restitution in terms of GT&T's loss rather than by the benefit conferred on the defendants, the district court erred when it failed to grant GT&T's Rule 50 motion. In cases of wrongful enrichment, a plaintiff whose goods or services were obtained by a conscious wrongdoer generally has two available remedies: compensatory damages or restitution. When the plaintiff elects restitution, the plaintiff can either recover the goods themselves or the fair market value of the transferred goods and services. See Barbouti v. Lysandrou, 559 So.2d 648, 650-51 (Fla.Dist.Ct.App.1990) (noting that a defendant's tortiously taking of money or goods belonging to another gives rise to an implied obligation to return that property and that a plaintiff may `waive' the tort action, and sue instead on a theoretical and fictitious contract of restitution of the benefits which the defendant has so received) (citing W. Prosser & W. Keeton, The Law of Torts § 94, at 672-73). Furthermore, if the goods have been sold by the tortfeasor, the plaintiff may recover either the fair market value of the goods and services (restitutionary remedy) or the proceeds of the sale (disgorgement remedy), and the plaintiff is entitled to the higher. 8 1 George E. Palmer, The Law of Restitution § 2.12, at 157-58 (1978). Applying these principles to the present case, the defendants were conscious wrongdoers who conspired to use GT&T's phone networks for calls from the United States to Guyana. The fair market value of these goods and services, as measured by GT&T's contracts with MCI, was $0.85 per minute. The evidence shows that the defendants wrongfully appropriated (and GT&T unknowingly conferred on the defendants) at least 1,169,166 minutes. Therefore, a reasonable jury would have measured GT&T's right to restitution as at least $993,791. 27 On remand, GT&T may seek restitution from Melbourne, Wajay, and Chilesat, as these three parties obtained a benefit from GT&T through wrongful conduct. Nevertheless, GT&T cannot seek both damages and restitution from the defendants, as doing so would violate the prohibition against receiving double recovery for the same wrong. See Thornber v. City of Fort Walton Beach, 568 So.2d 914, 919 n. 8 (Fla.1990); Barbe v. Villeneuve, 505 So.2d 1331, 1332 (Fla.1987).