Court Opinion

ID: 9444009
Source: CourtListenerOpinion
Date Created: 2023-08-03 19:37:57.761676+00
Date Added: 2024-06-11T08:23:45.145065
License: Public Domain

*141MAGRUDER, Chief Judge
(dissenting in part).
Assuming the correctness of the court’s view, as expressed in the opinion by Judge Woodbury, that there was sufficient evidence produced at the trial to require the submission of the case to the jury, I agree that the appellate court, in vacating the judgment of the district court, should not send the case back with a mandate to the district court to enter judgment for the plaintiff on the jury’s verdict. As I read Montgomery Ward & Co. v. Duncan, 1940, 311 U.S. 243, 61 S. Ct. 189, 85 L.Ed. 147, it seems that the appellate court would not have power to make this disposition of the case. The reason is that such disposition on appeal would cut out the trial judge from the discretionary exercise of his primary function to determine whether to set the verdict for the plaintiff aside and grant a new trial, either on motion of the defendant, under Rule 59(b), F.R.C.P., 28 U.S.C., or on the judge’s own initiative under Rule 59(d). The defendant here has had no occasion to move for a new trial under Rule 59(d), since the district judge entered judgment for the defendant notwithstanding the jury’s verdict for the plaintiff.
Furthermore, even if we had the power to direct the entry of judgment on the verdict, we are certainly not required to do so under 28 U.S.C. § 2106; and I think it is entirely proper for us, as is indicated in Judge Woodbury’s opinion, to remand the case on such terms as to leave the district judge free to enter judgment on the verdict, or to set aside the verdict and grant a new trial, as in the exercise of his judicial discretion the district judge deems best. What the district judge will not be able to do is to set the verdict aside on the ground that the evidence was insufficient to make a case for the jury. That action would be inconsistent with the opinion and mandate of this court, and presumably could be corrected by an order of this court under 28 U.S.C. § 1651.
But even though the evidence was sufficient to require the submission of the case to the jury, there are many recognized reasons which would justify the trial judge in setting aside a jury verdict and granting a new trial. See the oft-quoted discussion by Judge Lurton in Mt. Adams & E. P. Inclined Ry. Co. v. Lowery, 6 Cir., 1896, 74 F. 463, 470, 476-477. For instance, the district judge, who saw and heard the witnesses, might be of the view that the defendant’s evidence was the more credible, and that the verdict for the plaintiff was against the weight of the evidence. Or he might conclude, from the size of the verdict, that the jury probably did not weigh the issues of liability impartially. In such instances he might come to the determination that in the interest of justice the verdict should be set aside and the issues submitted to another jury. Such determination is entrusted primarily to the trial judge, who is in a better position than the appellate court to rule justly and intelligently on whether a new trial should be granted.
All the foregoing is on the assumption that my colleagues are correct in concluding that there was sufficient evidence at the trial to warrant submission of the case to the jury. My own view is, however, that the plaintiff failed to make out a case for the jury, under the substantive law of contracts as declared in the Massachusetts courts, which admittedly is applicable here.
I agree that under the evidence submitted it would be not unreasonable for a jury to conclude that Rugo, in offering “permanent” employment, promised the plaintiff something more than employment at the will of the employer; that is, that the defendant in effect promised to keep the plaintiff in the job so long as the defendant remained in business and had work which the plaintiff could do and desired to do, and so long as the plaintiff was able to perform his work with “reasonable satisfaction”. But I am unable to find that the plaintiff gave anything which could satisfy the com*142mon law requirement of “consideration” for that supposed promise by the defendant.
As I read the Massachusetts cases, the Supreme Judicial Court adheres to the orthodox doctrines of consideration in declaring the local common law of contracts. Thus if A promises to work for B' so long as A chooses, and B promises to employ A for one year, A’s promise is illusory, and will not support, and render enforceable, B’s promise to employ A for one year (or for some other indefinite time not dependent upon the will of the employer). Unless A gives some independent valuable consideration, other than his services, for the counterpromise by B, the employment is merely at the will of both parties. Of course, so long as the service is given, and received, the agreement of the parties controls the amount of compensation and other terms of the employment; but otherwise the agreement creates no executory obligations on either side. Cf. Campion v. Boston & Maine R. R., 1930, 269 Mass. 579, 169 N.E. 499.
There is nothing in the leading case of Carnig v. Carr, 1897, 167 Mass. 544, 46 N.E. 117, to suggest that an employer’s promise of permanent employment is valid and enforceable in the absence of some counterperformance or counter-promise by the employee adequate to satisfy the technical common law requirements of “consideration”. In that case, in exchange for the defendant’s promise to give the plaintiff permanent employment as an enameler and engraver, the plaintiff agreed to give up his competing business and sell his stock in trade to the defendant. The plaintiff performed his part of the bargain and entered into the defendant’s employment. It was held that the defendant was liable for breach of contract on account of later discharging the plaintiff without good cause. Here the defendant’s promise of permanent employment was supported by an independent valuable consideration given by the plaintiff; in which case, of course, it did not matter that in the resulting employment the employer was bound “permanently”, whereas the employee was free to quit at will. Kirkley v. P. H. Roberts Co., 1929, 268 Mass. 246, 167 N.E. 289, is perhaps not so clear a case on facts, but as I understand it the court did not intend to lay down any different rule as to the requisites of consideration. The court in 268 Mass, at page 251, 167 N.E. at page 290, said that the plaintiff, considering whether to leave his then employer and throw in his lot with the defendant, was promised that, if he would do so and come with the defendant, he would be given employment for so long as he faithfully and diligently performed his duties. “He decided so to do, and received this written agreement. Here was sufficient consideration for the promise of employment.” That being so, the court said it did not matter that the employee on his part did not promise to remain with defendant for any definite time. On the point of consideration the court relied particularly upon two earlier decisions, Carnig v. Carr, which has been referred to above, and Revere v. Boston Copper Co., 1834, 15 Pick., Mass., 351. In the latter case there was a bilateral contract by which the corporation agreed to employ the plaintiff for an indefinite time until the corporation should be dissolved, and the employee on his part promised that he would devote the whole of his time to the employer’s business and would engage in no other business for so long as the employee should live. Such agreement obviously met the common law requirements of consideration. The same was true in Sloan v. Hayden, 1872, 110 Mass. 141, and in Rooney v. Weeks, 1935, 290 Mass. 18, 194 N.E. 666. In each of those two cases the employer’s promise of indefinite employment for so long as the employee rendered reasonably satisfactory services, to be determined objectively, and not merely at the caprice of the employer, was supported by good consideration, in that the employee promised to work for a definite period of time, in the first case for three *143years and in the second case for ten months. In Daniell v. Boston & Maine R. R., 1903, 184 Mass. 337, 68 N.E. 337, it did not appear that any issue of lack of consideration was raised or discussed by the court.
In the case at bar, it appeared from the plaintiff’s own testimony that the plaintiff did not promise to work for Rugo for any definite period of time, or for any indefinite time dependent upon a condition not within the control of the employee. He explained his understanding of the word “permanent” to mean that, providing he was satisfactory to Mr. Rugo and Mr. Rugo satisfactory to him, “and providing I liked working in the office, [italics added] providing I did my job, I could remain there on an established basis”. It seems clear that, even on the plaintiff’s own version, he regarded the continued employment as entirely optional on his part.
Nor can I find any independent valuable consideration on the plaintiff’s part given and bargained for as the agreed exchange for the defendant’s promise of “permanent employment”. It is true that it was necessary for the plaintiff to give up the possibility of continued employment in Trinidad and to come to Boston, in order to accept employment in defendant’s Boston office. But this necessary preliminary action by the plaintiff can hardly be regarded as the performance of an act which was bargained for as the agreed-upon exchange for a unilateral promise by Rugo to give permanent employment to the plaintiff at the plaintiff’s option. See 1 Williston on Contracts § 112 (Rev. ed. 1936). Nor has it been suggested that, apart from the conventional requirements of consideration, the defendant’s promise might be binding and enforceable upon an application of the principle stated in Am.L. Inst.Rest. of Contracts, § 90. Furthermore that section in the Restatement does not seem to be in accordance with the Massachusetts law. See Spillane v. Yarnalowicz, 1925, 252 Mass. 168, 147 N.E. 571, 38 A.L.R. 1401; Davis v. German American Ins. Co., 1883, 135 Mass. 251. “It would cut up the doctrine of consideration by the roots, if a promisee could make a gratuitous promise binding by subsequently acting in reliance on it.” Holmes, J., in Commonwealth v. Scituate Savings Bank, 1884, 137 Mass. 301, 302. See also Martin v. Meles, 1901, 179 Mass. 114, 117, 60 N.E. 397.
If my conclusion thus far is right, that the evidence in the case was not sufficient to go to the jury (as the district judge held), then it becomes necessary to consider a question of procedure.
When the plaintiff finished putting in his evidence, the defendant made a motion for a directed verdict. This motion was made under Rule 50(a), F.R.C.P., not Rule 50(b). There is no provision in Rule 50(a) authorizing the trial judge to reserve action on the motion until after the jury’s verdict. The whole purpose of a motion under Rule 50(a) is to terminate the case at that point, without putting the defendant to the necessity of introducing his own evidence and thus extending the duration of the trial. See Bach v. Friden Calculating Machine Co., Inc., 6 Cir., 1945, 148 F.2d 407, 409 commenting on the similar motion under Rule 41(b). It is well-settled that if a motion under Rule 50(a) for a directed verdict at the close of the plaintiff’s case is denied, and the defendant thereupon presents his own evidence, this constitutes a waiver of the motion; unless a renewed motion for a directed verdict is made at the close of all the evidence, the defendant is precluded from questioning on appeal the sufficiency of the evidence to take the case to the jury. Minnehaha County v. Kelley, 8 Cir., 1945, 150 F.2d 356, 359; Ruud v. American Packing & Provision Co., 9 Cir., 1949, 177 F.2d 538, 542.
In the present case, when the defendant proceeded to put in its evidence, its previous motion for a directed verdict under Rule 50(a) expended itself. The action of the trial judge, without support in the rules, in undertaking to re*144serve action on the motion until after verdict, seems to me to have been of no effect. I think that the course open to the district judge, after verdict for the plaintiff had been brought in, was the same as if no motion under Rule 50(a) for a directed verdict had been made. Rule 50(b) has no application to the case. Therefore there is no present occasion to consider the accuracy of the statement in Johnson v. New York, N. H. & H. R. R. Co., 1952, 344 U.S. 48, 50, 73 S.Ct. 125, 127, that, even though disposition of a motion for a directed verdict at the close of all the evidence is reserved, under Rule 50(b), nevertheless, “in the absence of a motion for judgment notwithstanding the verdict made in the trial court within ten days after reception of a verdict the rule forbids the trial judge or an appellate court to enter such a judgment.” (Italics added.)
Under the circumstances here presented, I can find nothing in the rules or in the decided cases which would authorize the trial judge to enter judgment for the defendant notwithstanding the verdict. Believing as he did, that the evidence was not sufficient to make a case for the jury, all he could do at that stage was to set aside the verdict and leave the ease standing for a new trial. I do not think that he had power to enter a final adverse judgment, thus cutting out the plaintiff from the right to another jury trial, even though the plaintiff would be doomed to failure at such second trial if the evidence was the same. Nor in such a situation would the trial judge necessarily be forced to enter judgment for the defendant if the defendant, immediately after the new trial is ordered, moves for a summary judgment and attaches to his motion the record of the testimony taken at the previous trial. The evidence available to the plaintiff at a second trial might not be the same; and thus the plaintiff by filing of proper counter affidavits might defeat the defendant’s claim that there is no genuine issue as to any material fact and that the defendant is entitled to judgment as a matter of law.
When a case in a federal district court has been submitted to a jury and the jury has returned a verdict for the plaintiff, I do not think that there is a general “inherent” power in the trial judge, independent of some express authorization in statute or rule, to enter judgment for the defendant notwithstanding the verdict. As an original question of policy, there may be much to be said for a recognition of such inherent power. But the matter has become enveloped in technicalities, stemming in part from the significance which the Supreme Court has read into the concluding clause of the Seventh Amendment: “In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law.” Cf. Baltimore & Carolina Line, Inc., v. Redman, 1935, 295 U.S. 654, 55 S.Ct. 890, 891, 79 L.Ed. 1636, with Slocum v. New York Life Ins. Co., 1913, 228 U.S. 364, 33 S.Ct. 523, 57 L.Ed. 879. See also Parsons v. Bedford, 1830, 3 Pet. 433, 447-448, 7 L.Ed. 732; Cone v. West Virginia Pulp & Paper Co., 1947, 330 U. S. 212, 67 S.Ct. 752, 91 L.Ed. 849; Globe Liquor Co., Inc., v. San Roman, 1948, 332 U.S. 571, 68 S.Ct. 246, 92 L.Ed. 177; Johnson v. New York, N. H. & H. R. R. Co., 1952, 344 U.S. 48, 73 S.Ct. 125. The matter is not so clear as it might be, but the inference I draw from the various Supreme Court decisions is that the power of a court to enter judgment notwithstanding the verdict is narrowly restricted, and is not available in the procedural situation presented in the case at bar.
My conclusion is that I would reverse the judgment of the district court directing the entry of judgment for the defendant notwithstanding the verdict, but leave standing the alternative order directing that the verdict be set aside and a new trial had.