Federal Circuits, 1st Cir. (November 14, 1991)
Docket number: 91-1250
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Joseph L. Cotter with whom Helene Kazanjian, Barbara Healy Smith, and Goodwin, Procter & Hoar, Boston, Mass., were on brief, for defendant, appellant.
Charles Donelan with whom Ann L. Palmieri and Day, Berry & Howard, Boston, Mass., were on brief, for plaintiff, appellee.Before TORRUELLA, Circuit Judge, HILL,* and BOWNES, Senior Circuit Judges.HILL, Senior Circuit Judge.Maryland Cup Corporation, doing business as Sweetheart Products Group ("Sweetheart"), appeals from a jury verdict awarding Amarin Plastics Inc. ("Amarin") damages for breach of contract.The business relationship between the two parties began approximately 18 years ago. Sam Shapiro owned and operated Sweetheart, a company which was undertaking to sell plastic utensils--knives, forks, spoons, and the like. Richard King, an acquaintance of Shapiro, operated Amarin and was its engineer. In 1973, these two men and companies entered into a relationship in which Amarin would produce plastic utensils for Sweetheart. Sweetheart's sales grew dramatically, and both companies prospered greatly.Not all of their contractual agreements were formalized to the extent that they might have been had this litigation been foreseen. The parties had worked together in an amicable, symbiotic relationship until Shapiro sold Sweetheart to another corporate entity. The new owners had had no prior dealings with King or Amarin. They elected to cease contracting the production of plastics to Amarin. This termination of the long personal relationship illuminated the lack of formal, detailed writings evidencing the contractual status of the two companies. It required this litigation through a jury trial to determine and define the rights and obligations of the parties.To determine the present contractual relation of the two parties, the jury was asked to begin in 1973, when Amarin and Sweetheart entered a contract in which Amarin would make plastic cutlery for Sweetheart for a five year period. During this same time, the two parties also entered a Mold Removal Agreement (the "Agreement"). It is this agreement which is the subject of this lawsuit.To make the plastic cutlery, Amarin used molds. These molds were produced for and owned by Sweetheart, but Amarin allegedly provided the design. The molds remained in the possession of Amarin. The Mold Removal Agreement stated that if Sweetheart ever removed these molds from Amarin's possession, Sweetheart would pay Amarin one-third of the molds' costs. At the time of the execution of this agreement, Amarin had nine molds in its possession. The parties disagree over whether the agreement covered subsequently manufactured molds. Amarin contends that the Agreement covers fifty-one molds, for the creation of which it provided the engineering services. Sweetheart argues that the Agreement covered only the nine molds in existence when the contract was made. The contract, by its terms, refers to the "mold charges quoted herein," implying that the contract referred only to molds in existence at the time of the contract. However, the jury apparently found that the Agreement covered subsequent molds.In addition to the dispute over whether the contract applied to any subsequent molds, the parties also disagreed over which subsequent molds, if any, the agreement covered. The written Agreement seemed to indicate Sweetheart would be required to pay the one-third charge only for molds removed from Amarin's possession. Sweetheart never physically removed thirteen of the molds from Amarin's possession. Moreover, Amarin never had possession of all fifty-one molds. The manufacturers of the molds shipped fifteen of them directly to Sweetheart. However, Amarin claims the agreement covers molds it never physically possessed.King and industry experts testified at trial that it is industry practice to enter this type of mold removal agreement. The money charged in the agreement would reimburse Amarin for its costs in helping produce and maintain these molds. The agreement would also enable Amarin to recoup the costs of expanding its factory to meet Sweetheart's production demands. Amarin argued that the Agreement was not designed to pay Amarin for the molds, but to reimburse Amarin for its contribution to the engineering and production of the molds. In effect, then, the Agreement simply reimbursed Amarin for its services and would protect it if Sweetheart decided to stop doing business with Amarin. Therefore, it did not matter, Amarin argued, that Amarin never possessed fifteen molds or lost possession of thirteen. The terms of the agreement covered services, and the termination of the companies' relationship would trigger the terms of the Agreement.In 1983, Shapiro sold Sweetheart to Fort Howard Paper Company. The new management decided to start manufacturing cutlery in-house and to end the relationship with Amarin. This decision caused Amarin to invoke the terms of the Agreement and to demand one-third of the molds' costs. The jury was then asked to decide whether a contract existed and whether this contract covered all fifty-one molds. The jury awarded Amarin $760,026.09, which was one-third of the cost of the fifty-one molds.Sweetheart appeals this judgment and raises four issues. One, whether there was error in the trial court's denial of Sweetheart's motion for judgment notwithstanding the verdict or a new trial. Two, whether evidence concerning Amarin's engineering services should have been admitted. Three, whether the trial court should have granted continuances until two witnesses were able to attend trial. Four, whether two documents were inadmissible hearsay.JUDGMENT NOTWITHSTANDING THE VERDICTSweetheart contends that there was not enough evidence for the jury to find that the Agreement covered the fifty-one molds, and the district court erred in not granting its motion for judgment notwithstanding the verdict or a new trial. The appellant has a high burden to show that a jury verdict should be disturbed. In Chedd-Angier Production v. Omni Publications Int'l, Inc., this Court wroteAppellate review of a jury verdict is extremely restricted and should be granted cautiously and sparingly. To do otherwise deprives the party of a decision by jury. We are compelled, therefore, even in a close case, to uphold the verdict unless the facts and inferences, when viewed in the light most favorable to the party for whom the jury held, point so strongly and overwhelmingly in favor of the movant that a reasonable jury could not have arrived at this conclusion. 756 F.2d 930, 934 (1st Cir.1985). The Court should draw all inferences in the plaintiff's favor. Payton v. Abbott Labs, 780 F.2d 147, 156, 19 Fed.R.Evid.Serv. 1077 (1st Cir.1985). If the evidence is contradictory, and reasonable people could disagree about the outcome, then the issue should be decided by the jury.Chedd-Angier, 756 F.2d at 934.After a review of the evidence, we hold that the matter was properly presented to the jury. Both Shapiro and King gave evidence that the Mold Removal Agreement, as orally modified, was designed to reimburse Amarin for its engineering services in production and maintenance of the molds.In a letter, Shapiro noted that the written agreement was extended beyond 1978 by oral modifications. Shapiro believed that the new agreement covered new molds that replaced the worn molds.1 Amarin did not demand payment for the old molds, but had a continuing right to do so if Sweetheart stopped doing business with Amarin.Shapiro and King also modified the Agreement to cover molds that were not sent to Amarin. When King learned that Banner Mold and Die Co., Inc., the mold manufacturer, was sending molds directly to Sweetheart, he voiced his concern to Shapiro that Amarin was being by-passed. King testified that he and Shapiro agreed that the written agreement would cover these molds as well, and that King should continue to provide engineering services for molds sent directly to Sweetheart. This oral agreement modified the original agreement covering only molds in Amarin's possession.Amarin also presented evidence about the purpose of the contract. King testified that the Mold Removal Agreement was designed to reimburse him for providing engineering services for the design of the molds. Shapiro, in his letter, agreed that the one-third figure in the agreement covered King's engineering assistance. Shapiro also wrote that the Agreement was designed to allay King's concerns that Sweetheart might produce the cutlery in-house. The agreement would help Amarin recoup the costs of expanding its factory and buying equipment to meet Sweetheart's needs if the relationship ever ended.King, Shapiro, and employees of Amarin, Banner, and Tupperware International testified that King performed engineering services as required by the agreement. Sweetheart argues that King's contributions were minimal and merely replicated the current state of the art. Amarin never contested this. In fact, King himself testified that he provided state of the art engineering to the design and manufacture of the molds and that these services were not unique. Sweetheart's argument regarding the quality of King's services is irrelevant since the agreement merely required engineering services, not unique and novel engineering advances.This evidence was sufficient for the jury to find that there was an agreement covering engineering services, that Amarin had performed, and that Sweetheart's duty to perform had matured.Sweetheart also moved for a new trial. A new trial should be granted only if the verdict is against the clear weight of the evidence or "resulted from some trial error and amounts to a clear miscarriage of justice." Payton, 780 F.2d at 152. While Sweetheart contests the admission of some evidence and the district court's denial of its motions for continuance, we do not find that the district court erred. See infra. Moreover, although the evidence was contradictory, and the facts were hotly disputed, we conclude that the verdict was supported by substantial evidence and do not conclude that an injustice was done.EVIDENTIARY RULINGSSweetheart next contends that the district court mistakenly introduced evidence of Amarin's engineering services since these services are irrelevant to the Mold Removal Agreement. King, Haldie Nicholson, an employee of Amarin, and Ralph P. DeFelice, an employee of Banner, all testified as to the nature of Amarin's services. To be admissible at trial, evidence must be relevant, tending to prove a "fact that is of consequence to the determination of the action." Fed.R.Evid. 401, 402. See Cruz-Sanchez v. Rivera-Cordero, 835 F.2d 947, 949, 24 Fed.R.Evid.Serv. 493 (1st Cir.1987). We find that this was relevant evidence.Amarin was suing on a contract. Since the matter of consequence was the nature and scope of the contract, any evidence that would help prove a contract would be relevant. In its complaint and at trial, Amarin argued that the Agreement covered engineering services provided by King. Amarin did not introduce evidence of the cost of these services, but merely demonstrated to the jury how King and Amarin helped design the molds. While this evidence could not have been used to prove the existence of a claim, since Amarin was not suing in quantum meruit, the evidence was relevant to show the jury what the contract encompassed and how the contract was performed. This would help make the contract more understandable to the jury.Moreover, proof of performance is an essential part of a contract claim. To show that it is entitled to recovery, the plaintiff must show that it has performed. See Mirachnick v. Kaplan, 294 Mass. 208, 1 N.E.2d 40 (1936) (to survive a motion for demurrer, a mortgagor must allege performance in an action for breach of contract); Gagnon v. Ainsworth, 283 Mass. 488, 186 N.E. 498, 499 (1933) (plaintiff must prove complete performance to recover on a building contract). By showing that it had provided engineering services, Amarin demonstrated that it had fulfilled its part of the contract, thereby giving rise to Sweetheart's duty to pay one-third of the costs when Sweetheart terminated the relationship.CONTINUANCESSweetheart next contends that the district court erred in not granting a continuance until one of its witnesses became well enough to testify. In determining whether there was error in a denial of a continuance, the court should evaluate the facts of the particular case and not mechanically apply a test. United States v. Lussier, 929 F.2d 25, 28 (1st Cir.1991); United States v. Poulack, 556 F.2d 83, 86, 2 Fed.R.Evid.Serv. 54 (1st Cir.1977), cert. denied,Try vLex for FREE for 3 days
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