Opinion ID: 208849
Heading Depth: 3
Heading Rank: 3

Heading: JMOL, new trial, or remittitur

Text: Revolution contends that the district court erred in denying the post-trial motions for, in the alternative, JMOL, a new trial, or remittitur. We review the denial of these post-trial motions by applying the law of the regional circuitin this case, the Ninth Circuit. See Koito Mfg. Co. v. Turn-Key-Tech, LLC, 381 F.3d 1142, 1148 (Fed.Cir.2004).
In the Ninth Circuit, the court of appeals reviews a district court's denial of a motion for JMOL de novo. Theme Promotions, Inc. v. News Am. Mktg. FSI, 546 F.3d 991, 999 (9th Cir.2008). The test is whether the evidence, construed in the light most favorable to the nonmoving party, permits only one reasonable conclusion, and that conclusion is contrary to that of the jury. Id. A jury's verdict must be upheld if supported by substantial evidence. Pavao v. Pagay, 307 F.3d 915, 918 (9th Cir.2002). Substantial evidence is relevant evidence reasonable minds might accept as adequate to support the jury's conclusion, even if it is also possible to draw a contrary conclusion. Three Boys Music Corp. v. Bolton, 212 F.3d 477, 482 (9th Cir.2000). A court will not weigh the evidence or assess the credibility of witnesses in determining whether substantial evidence exists. Landes Const. Co. v. Royal Bank of Can., 833 F.2d 1365, 1371 (9th Cir.1987). At trial, Contour proposed $11 million in damages and Revolution advocated for $312,000. The jury returned a verdict awarding damages of $4.3 million to Contour. Revolution argues that JMOL is required because the jury verdict is mathematically impossible. According to Revolution, the damages would have been at most around $2.8 million, computed by multiplying the total revenue of $55 million as calculated by Contour's counsel, to the reasonable royalty rate of 5% as the jury found. The total revenue of $55 million was calculated based on (1) the average sales prices advocated by Revolution, and (2) 70% of the total sales price of the combination eyewear as the price for the infringing primary frames. As the district court pointed out, the jury did not have to use either number in calculating the damages. Indeed, Revolution's CEO testified about two different prices for the infringing products: the list price and the much discounted average price. He also testified that the business model of Revolution was built on selling a primary frame with an auxiliary clip-on sun lens, and not just primary frames or auxiliary frames by themselves. Construing such testimony in the light most favorable to Contour, the jury could have used the higher list price and/or the entire price for the combination eyewear in computing the damages. The damages thus calculated would have been even more than $4.3 million. Revolution argues that there is no substantial evidence to support even the $55 million total revenue as advocated by Contour. It attacks the testimony of Contour's witness regarding the 70%/30% breakdown of the price for the primary frame/auxiliary frame. Revolution forgets that, at the JMOL stage, the court does not weigh evidence, and all inferences must be drawn in favor of Contour. Revolution also contends that there is no substantial evidence to support the jury's finding of the 5% royalty rate. Regarding this issue, the district court went through a detailed analysis of relevant factors under Georgia-Pacific Corp. v. United States Plywood Corp., 318 F.Supp. 1116, 1120 (S.D.N.Y.1970). We agree with the district court that the evidence is sufficient to support the 5% royalty rate. In sum, the district court did not err in denying Revolution's motion for JMOL.
In the alternative, Revolution contends that the fatal inconsistency in the interrogatories of the Special Verdict necessitates a new trial. In the Ninth Circuit, the denial of a motion for a new trial is reviewed for an abuse of discretion. Incalza v. Fendi N. Am., Inc., 479 F.3d 1005, 1013 (9th Cir.2007). In deciding a motion for a new trial, the judge can weigh the evidence and assess the credibility of witnesses, and need not view the evidence from the perspective most favorable to the prevailing party. Landes Constr., 833 F.2d at 1371. In addition, the existence of substantial evidence does not prevent a court from granting a motion for a new trial if the verdict is against the clear weight of the evidence. Id. However, a district court may not grant or deny a new trial merely because it would have arrived at a different verdict. Wilhelm v. Associated Container Transp. (Austl.) Ltd., 648 F.2d 1197, 1198 (9th Cir.1981). Revolution argues that the $4.3 million damages award exceeds the royalty for both the infringing primary frame and the non-infringing auxiliary frame. We have already explained that the jury verdict of $4.3 million is within reason because the jury did not have to base its damages computation on the average price. More importantly, as the district court stated, the damages award based on a reasonable royalty rate is only the floor, not the exact amount. This rationale is well supported by the statutory language, see 35 U.S.C. § 284 (requiring that the court award the claimant damages adequate to compensate for the infringement, but in no event less than a reasonable royalty), and our case law, see, e.g., Rite-Hite Corp. v. Kelley Co., 56 F.3d 1538, 1544 (Fed.Cir.1995); Del Mar Avionics, Inc. v. Quinton Instrument Co., 836 F.2d 1320, 1326 (Fed.Cir.1987) (stating that the purpose of § 284 is not to provide a simple accounting method, but to set a floor below which the courts are not authorized to go). Therefore, the district court did not abuse its discretion in denying a new trial.
Revolution further asserts that the district court should have reduced the jury verdict. A jury's supportable finding of the amount of damages must be upheld unless the amount is grossly excessive or monstrous. See Lambert v. Ackerley, 180 F.3d 997, 1011 (9th Cir.1999) (en banc). A trial court's decision against remittitur is reversed only on a showing of clear abuse of discretion. See L.A. Police Protective League v. Gates, 995 F.2d 1469, 1477 (9th Cir.1993). Revolution repeats the same arguments here as those for JMOL and a new trial. As discussed earlier, the verdict is supported by substantial evidence. The district court found the jury verdict of $4.3 million well within the range of damages advocated by the parties at trial, i.e., between $312,000 as proposed by Revolution, and $11 million as proposed by Contour. Therefore, we agree with the district court that the jury verdict is not grossly excessive. Certainly, no abuse of discretion has been shown. Accordingly, we affirm the denial of Revolution's post-trial motions for JMOL, for a new trial, or for remittitur.