Opinion ID: 1189884
Heading Depth: 1
Heading Rank: 5

Heading: The Role of Extrinsic Evidence

Text: Given our conclusion that the 1980 license agreement is ambiguous, we look next to the record to determine whether any relevant extrinsic evidence is so one-sided in defendant's favor as to allow Stani's interpretation to prevail on summary judgment. As a preliminary matter, we address Topps' contention that the 1980 escrow agreement and 1976 license agreement are inadmissible for this purpose under the parol evidence rule. It is conceded that New York law governs the interpretation of the 1980 license agreement. New York's parol evidence rule generally bars admission of extrinsic evidence to vary or contradict the terms of a fully integrated writing. See Primex Int'l Corp. v. Wal-Mart Stores, Inc., 89 N.Y.2d 594, 599-600, 657 N.Y.S.2d 385, 679 N.E.2d 624 (N.Y.1997). Contrary to the district court's analysis, Topps, 454 F.Supp.2d at 101 n. 11, this rule of inadmissibility of extrinsic evidence applies to both oral and written evidence alike. See Primex, 89 N.Y.2d at 599-600, 657 N.Y.S.2d 385, 679 N.E.2d 624; Farm Stores, Inc. v. Sch. Feeding Corp., 79 A.D.2d 504, 504-05, 433 N.Y.S.2d 453 (1st Dep't 1980), aff'd 53 N.Y.2d 910, 440 N.Y.S.2d 633, 423 N.E.2d 56 (N.Y.1981). Moreover, Article 30 of the 1980 license agreement appears to express the parties' intent to form an integrated agreement. See Primex, 89 N.Y.2d at 596-97, 599-600, 657 N.Y.S.2d 385, 679 N.E.2d 624. Nonetheless, extrinsic evidence may be used as a guide to Stani's rights after April 1996 because the 1980 license agreement is facially ambiguous as to these rights. Even though a document may be fully integrated with respect to the ultimate terms of the agreement, the meaning of those terms may remain unclear. U.S. Fire Ins. Co. v. Gen. Reinsurance Corp., 949 F.2d 569, 571 (2d Cir. 1991) (applying New York law). In such cases, it is proper to consider extrinsic evidence in interpreting the ambiguous terms, irrespective of the parol evidence rule. Id. The extrinsic evidence in this case, however, does not resolve the ambiguities over Stani's rights for purposes of its summary judgment motion. The 1980 escrow agreement and the 1976 license agreement shed little light on the parties' intent with regard to Stani's rights to Topps formulas after April 1996. In fact, the strongest pieces of extrinsic evidence identified by the parties are Stani's own pleadings and the statement of one of its experts that it had no need for these formulas after that dateand possibly even much earlier. Far from proving Stani's case, these pieces of evidence lend support to Topps' position.