Opinion ID: 523220
Heading Depth: 2
Heading Rank: 3

Heading: New Trial or Partial New Trial?

Text: 35 Relying on Rule 59(a), Federal Rules of Civil Procedure, 1 appellee contends that if this Court should grant a new trial to appellants, the trial so ordered should be restricted to a trial on the issue of liability and the amounts set by the jury in the first trial as to the amount of damages should not be retried. 36 Appellant is correct in stating that the scope of a new trial may be limited to a single issue when the issue as to which a new trial is required is separate from all other issues and the error requiring a new trial does not affect the determination of any other issue. See Indamer Corp. v. C.H. Crandon, 217 F.2d 391 (5th Cir.1954). 37 This, of course, then leaves the question whether, in this case, the grant of a new trial on the issue involving the claim by FIGA that the fire was deliberately set by, or at the instance of, one of the responsible parties controlling the insured is an issue that is entirely separate from the issue of the amount of damages recoverable. 38 The Supreme Court has spoken on this subject in Gasoline Products Co. v. Champlin Refining Co., 283 U.S. 494, 51 S.Ct. 513, 75 L.Ed. 1188 (1931):Where the practice permits a partial new trial, it may not properly be resorted to unless it clearly appears that the issue to be retried is so distinct and separable from the others that a trial of it alone may be had without injustice. 39 283 U.S. at 500, 51 S.Ct. at 515. 40 Here, FIGA contested the amount of damages, both in its pleadings and by proof it offered during the trial. A substantial amount of the damages recovered represented the loss of earnings allegedly suffered by the insured. This evidence related to the solvency or insolvency of the insured, its profit-making potential and its entire financial situation. These factors were related to the alleged intent of the insured for intentionally causing the fire, and they related to the amount of damages in the estimate the jury was required to make of lost earnings. Moreover, FIGA contended that the insured violated the terms of the policy by falsely exaggerating the value of the property lost in the fire. 41 We agree, therefore, with the Court of Appeals for the Third Circuit when it stated: 42 In addition, we believe that facts underlying [the insured's] claim for losses under the policy and [the insurer's] defense of fraudulent exaggeration of the proof of loss are so interwoven with those of the arson defense that justice demands a retrial of these issues together.... [Citing Gasoline Products Company, supra.] ... [The insured's] financial history, profitability, and solvency were relevant to this claim and these defenses. 43 American Home Assurance, 753 F.2d at 329. 44 We conclude, therefore, that the new trial should be on all issues presented at the original trial.