Opinion ID: 27784
Heading Depth: 2
Heading Rank: 2

Heading: Jury Question on Detrimental Reliance

Text: 26 Our standard of review for challenged jury instructions is two-prong. First, the challenger must demonstrate that the charge creates substantial doubt as to whether the jury was properly guided in its deliberations. Hartsell v. Dr. Pepper Bottling Co., 207 F.3d 269, 273 (5th Cir.2000). Second, even if the jury instructions were erroneous, we will not reverse if we determine that the challenged instruction could not have affected the outcome of the case. Id. We find that the jury was instructed properly. 27 Bayou Furs and Berry cite no authority for the proposition that detrimental reliance could not be based on statements also made in a binding contract. The district court determined that Industrias had proven the facts required by article 1967 of the Louisiana Civil Code for imposition of detrimental reliance liability: (1) that Bayou Furs and Berry made promises, (2) that Industrias's reliance on the representation was reasonable, and (3) that Industrias's reliance caused a change in position to its detriment. See LA CIV.CODE ANN. art. 1967 (West 1987). We agree with the district court and conclude that judgment as a matter of law was properly denied as to this claim. IV. LUTPA 28 Bayou Furs and Berry contend that they are entitled to judgment as a matter of law on the LUTPA claim because there is insufficient evidence that Bayou Furs and Berry are Industrias's competitors as required to find a party liable under LUTPA. They also contend that the evidence is insufficient to support a finding that Bayou Furs and Berry engaged in the type of egregious conduct that forms the basis of a LUTPA violation. They argue that the finding of LUTPA liability is inconsistent with the jury's later finding that they did not act with the intention to obtain an unjust advantage over Industrias. Because we have already found that Berry is entitled to judgment as a matter of law on the LUTPA claim due to his agency status, we will only address Bayou Furs's arguments. 29 The district court rejected both arguments asserted by Bayou Furs. With regard to the argument that Bayou Furs is not a competitor, the court correctly pointed out that Camlot testified that Industrias was not only a customer, but a competitor with Bayou Furs in the international market. 30 Turning to the argument that Bayou Furs's actions were not sufficiently egregious to justify the imposition of LUTPA liability, the district court found that LUTPA does not require a misrepresentation or unethical conduct to be engaged in with the intent to obtain an unjust advantage or to cause a loss or inconvenience. We agree. LUTPA prohibits [u]nfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce. LA.REV.STAT. ANN. § 51:1405(A) (West 1987). The statute merely requires a showing of some element of fraud, misrepresentation, deception or other unethical conduct on [a] defendant's part. Marshall v. Citicorp Mortgage, Inc., 601 So.2d 669, 670 (La.Ct.App.1992) (citation omitted). Because LUTPA does not require an intent to obtain an advantage or to cause a loss, there is no inconsistency in the jury verdict. See Willard v. The John Hayward, 577 F.2d 1009, 1011 (5th Cir.1978) (explaining that a jury's answers should only be considered inconsistent when there is no way to reconcile them.). The jury could have found Berry's representations, on behalf of Bayou Furs, that the contract was backed by LL&E, and the refusal of Bayou Furs to perform under the contract due to changed market conditions, unethical. Accordingly, the district court correctly denied Bayou Furs's motion for judgment as a matter of law on the LUTPA claim. V. Bad Faith 31 Bayou Furs and Berry challenge the jury's finding that they acted in bad faith by arguing that bad faith requires a finding of intentional and malicious conduct. They assert that the district court confused the jury by substituting the word or for and in three of its five references to the elements of bad faith when reading the charge to the jury. They also argue that the jury's finding of bad faith is inconsistent with its earlier finding that the misrepresentations of Bayou Furs and Berry were not made with an intent to obtain an unjust advantage or to cause a loss or inconvenience to Industrias. 32 The district court rejected the challenge to the bad faith finding. The court determined that the evidence regarding Bayou Furs's improper downgrading excuse could rationally support a finding that it acted in bad faith. The instruction requested by Bayou Furs and Berry asked that the jury be charged that bad faith requires an intentional or malicious failure to perform. They cannot now complain about this language in the charge. Further, since neither Bayou Furs or Berry objected to the charge, we apply the plain error standard of review. Russell v. Plano Bank & Trust, 130 F.3d 715, 721 (5th Cir.1997). We find no plain error in the charge. 33 In Louisiana, an obligor [who acts] in bad faith is liable for all ... damages, foreseeable or not, that are a direct consequence of his failure to perform. Bond v. Broadway, 607 So.2d 865, 867 (La.Ct.App.1992) (citing LA. CIV.CODE ANN. art. 1997 (West 1987)). Bond defined bad faith as follows: 34 The opposite of good faith, generally implying or involving actual or constructive fraud, or a design to mislead or deceive another, or a neglect or refusal to fulfill some duty or some contractual obligation, not prompted by an honest mistake as to one's rights or duties but by some interested or sinister motive. The term bad faith means more than mere bad judgment or negligence, it implies the conscious doing of a wrong for dishonest or morally questionable motives. 35 Id. (citations omitted). Based on this definition, there is evidence upon which a reasonable jury could conclude that Bayou Furs and Berry acted in bad faith. A reasonable jury could have rejected the testimony regarding Molczadzki's unreasonable downgrading and found that Bayou Furs and Berry acted with dishonest or morally questionable motives. We therefore conclude that the district court was correct in denying judgment as a matter of law on the jury's finding of bad faith. VI. Breach of Contract 36 Bayou Furs next argues that it did not breach the Nutria Agreement because Industrias unreasonably downgraded the nutria skins. Industrias counters that extensive evidence regarding the alleged improper downgrading was presented and the jury rejected the testimony, finding that Bayou Furs did not have any justifiable reason to excuse performance under the Nutria Agreement. 37 Bayou Furs's argument was not presented in its Rule 50 motion. When a party has not moved for judgment as a matter of law, we review its challenge to evidentiary sufficiency only for plain error. McCann v. Tex. City Refining, Inc., 984 F.2d 667, 673 (5th Cir.1993) (citation omitted). In other words, this Court will reverse only if the judgment complained of results in a manifest miscarriage of justice. United States ex rel. Wallace v. Flintco Inc., 143 F.3d 955, 963-64 (5th Cir.1998) (quoting McCann, 984 F.2d at 673) (internal quotation marks omitted). Under plain-error review, the inquiry is whether the plaintiff has presented any evidence in support of its claim. Bayou Furs has not demonstrated that the jury's findings in this regard constitute plain error as there is evidence to support the jury's determination. VII. Force Majeure 38 Bayou Furs and Berry assert that the district court erred in granting Industrias's Rule 50 motion on Bayou Furs's force majeure defense. They assert that weather conditions prevented them from performing under the contract and the district court improperly took this defense out of the hands of the jury. 39  Force majeure is defined as a providential occurrence or extraordinary manifestation of the forces of nature which could not have been foreseen and the effect thereof avoided by the exercise of reasonable prudence, diligence, and care or by the use of those means which the situation renders reasonable to employ. Eubanks v. Bayou D'Arbonne Lake Watershed Dist., 742 So.2d 113, 119 (La.Ct.App.1999). The district court based its decision on Camlot's testimony that weather conditions had nothing to do with the non-delivery of the nutria skins. The court noted that Camlot testified that the only reason the skins were not delivered was the grading problem between the parties. Camlot's candid judicial admission foreclosed any argument regarding force majeure. Therefore, we affirm the district court's decision to grant judgment as a matter of law as to this issue. VIII. The Second 100,000 Skins 40 Bayou Furs and Berry next contend that the district court erred in instructing the jury that the Nutria Agreement was a contract for the sale of 200,000 nutria skins. They argue that the parties reached an agreement for the price of the first 100,000 skins, but no price was set for the sale of the second 100,000 skins. They further assert that the record supports the view that they did not intend to be bound unless a price could be agreed upon. 41 The district court rejected this argument on the basis that there was overwhelming evidence that the price for the second 100,000 skins was to be set by the market and that the market price was an ascertainable measure. A contract for the sale of goods that does not set a price is enforceable if the price is to be the reasonable price at the time and place of delivery. If there is an exchange or market for such things, the quotations or price lists of the place of delivery or, in their absence, those of the nearest market, are a basis for the determination of a reasonable price. LA. CIV.CODE ANN. art. 2466 (West 1996). Nevertheless, if the parties intend not to be bound unless a price be agreed on, there is no contract without such an agreement. Id. The contract provides that 42 the additional 100,000 skins price will be determined and agreed upon prior to the completion of delivery of the [first] 100,000 skins ... it is the idea to discuss the price for the remaining 100,000 skins on or about January 15th, 1998 43     44 if both parties can not [sic] agree on price for the second 100,000 skins seller is free to sell to any one [sic] including Argentina. 45 When a party challenging a jury instruction does not object, as is the case here, we apply the plain error standard of review. Russell, 130 F.3d at 721. At trial, Frederico testified that the price for the second 100,000 skins was to be set by the market. Camlot testified that there was a determinable market price for the second skins. Based on this, we find no plain error in the court's instruction. IX. Evidence of Indemnification 46 Berry contends that the district court erred by allowing Industrias to question him about his indemnity agreement with LL&E and by referring to the agreement during closing arguments. Evidentiary rulings are affirmed unless the district court abused its discretion and a substantial right of the complaining party was affected. United States v. Asibor, 109 F.3d 1023, 1032 (5th Cir.1997). 47 During his opening statement, Berry's counsel described him as a man accused of betting his retirement on nutria skins. Berry asserts that he was simply trying to illustrate the fallacy in Industrias's argument that he took on personal responsibility for the contract by arguing that no sensible person would obligate themselves on a contract with so much to lose and nothing to gain. He contends that his economic risk in obligating himself on a contract is completely independent from his ability to pay the judgment. The district court disagreed, finding that the repeated references to Berry's jeopardizing his retirement during counsel's opening statement specifically raised the issue and opened the door for opposing counsel to question him accordingly. The court also instructed the jury that the evidence was only admitted for the purpose of impeachment and not to determine liability or damages. The court issued a proper limiting instruction and we cannot find an abuse of discretion or an affect on a substantial right justifying a new trial. Therefore, we conclude that Berry is not entitled to a new trial on this basis. X. Damages 48 In reviewing a jury award, we are reviewing the district court's denial of a motion for a new trial. Concise Oil & Gas P'ship v. La. Intrastate Gas Corp., 986 F.2d 1463, 1475 (5th Cir.1993). Because the district court has a wide range of discretion in acting on such motions, the standard of review is abuse of discretion. Sam's Style Shop v. Cosmos Broad. Corp., 694 F.2d 998, 1006 (5th Cir.1982). [T]here is no such abuse of discretion unless there is a complete absence of evidence to support the verdict. Id. A jury award is entitled to great deference and should not be disturbed unless it is entirely disproportionate to the injury sustained. Caldarera v. Eastern Airlines, Inc., 705 F.2d 778, 784 (5th Cir.1983). 49 Bayou Furs and Berry seek a new trial on the issue of damages. The court rejected their motion for a new trial, finding that it was primarily an objection to the testimony of Industrias's damages expert. Determinations about witness credibility fall within the province of the jury, and the district court properly refused to disturb the award on this basis. 50 Bayou Furs and Berry also contend that the district court erred by failing to include a mitigation interrogatory in the verdict form. However, the district court did include an instruction on mitigation. Moreover, there was ample evidence in the trial record demonstrating Industrias's attempts to mitigate, including testimony by Frederico and Leonardo that they attempted to obtain the skins from other suppliers but were unsuccessful. Bayou Furs and Berry cite no authority supporting their argument that the court's failure to offer a specific question, as opposed to a jury instruction, on mitigation constitutes reversible error. Therefore, we refuse to grant a new trial on this ground. 51 Finally, Industrias's expert calculated that it suffered $4,683,090 in damages. The jury found that Industrias suffered $3,465,350 in damages. It also found that Industrias and Berry were each twenty six percent responsible for the damages suffered, while Bayou Furs was forty eight percent at fault. Bayou Furs and Berry assert that the court erred in not reducing the award by the twenty six percent attributable to Industrias. Industrias argues that Louisiana law does not allow comparative fault allocation for detrimental reliance and LUTPA damages. 52 Industrias is correct that Louisiana law does not allow comparative fault allocations on detrimental reliance and LUTPA claims. See LA. CIV.CODE ANN. art. 2323 (West 1997). 4 Accordingly, during an extensive jury charge conference, the parties and the district court agreed that if the jury found liability on either the detrimental reliance or LUTPA claims, the award would not be reduced. On the other hand, if the jury had found Bayou Furs and Berry liable for the breach of contract claim alone, then the court was to reduce the award by the percentage of fault allocated to Industrias. Because the jury found liability on the detrimental reliance and LUTPA claims, the court correctly refused to reduce the jury award. See art. 2323. 53 Finally, we note that the jury returned a $3,465,350 general damages verdict in response to all of the claims for which it found Bayou Furs and Berry liable. Accordingly, the district court's judgment found that Bayou Furs and Berry were liable for the damages jointly and in solido. See LA. CIV.CODE ANN. art. 2324 (West 1997). The principal effect of imposing solidary liability among co-tortfeasors is that any tortfeasor may be compelled to pay the entire judgment. Touchard v. Williams, 671 So.2d 1065, 1068 (La.Ct.App.1996). As such, the fact that we have granted judgment as a matter of law for Berry on the LUTPA claim does not affect the judgment or his liability for the damages.