Federal Circuits, 11th Cir. (July 01, 1991)
Docket number: 88-3744
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U.S. Court of Appeals for the 5th Cir. - Dorothy Kane Rawls, Plaintiff-Appellant, v. Daughters of Charity of Saint Vincent de Paul, Inc., the Administrators Ofsaint Vincent de Paul Hospital; Insurance Company of North America; Haroldbolding; the Aetna Casualty & Surety Company; Charles B. Odom, Individually Andas Coroner Ofjefferson Parish and the Surety of His Bond, St. Paul Fire and Marine Insurancecompany; and Genevieve Arneson, Defendants-Appellees., 491 F.2d 141 (5th Cir. 1974) Plaintiff-Appellant, v. Daughters of Charity of Saint Vincent de Paul, Inc., the Administrators Ofsaint Vincent de Paul Hospital; Insurance Company of North America; Haroldbolding; the Aetna Casualty & Surety Company; Charles B. Odom, Individually Andas Coroner Ofjefferson Parish and the Surety of His Bond, St. Paul Fire and Marine Insurancecompany; and Genevieve Arneson, Defendants-Appellees.
U.S. Court of Appeals for the 11th Cir. - Overseas Private Investment Corp., William Parker, Taino Farms, Ltd., Plaintiff-Appellees/Cross-Appellants, v. Metropolitan Dade County, Defendant-Appellant/Cross-Appellee, South Dade Soil & Water Conservation District, Defendant., 47 F.3d 1111 (11th Cir. 1995) William Parker, Taino Farms, Ltd., Plaintiff-Appellees/Cross-Appellants, v. Metropolitan Dade County, Defendant-Appellant/Cross-Appellee, South Dade Soil & Water Conservation District, Defendant.
Frederick L. Wright, II, Patrick A. Thompson and James E. Stephenson, Atlanta, Ga., for Federated Dept. Stores, Inc.
Joseph H. Varner, Michael A. Fogarty, Tampa, Fla., for Edison Shopping Center et al. and Sanders, et al.Steven T. Northcutt, Tampa, Fla., for Austin-Westshore.Richard Fred Lewis, Miami, Fla., for Poole & Kent.Appeal from the United States District Court for the Middle District of Florida.Before KRAVITCH and ANDERSON, Circuit Judges, and ATKINS*, Senior District Judge.ATKINS, Senior District Judge:This is an appeal from the trial court's June 30, 1988 orders on the various post trial motions filed by the parties. This complex case sounding in negligence and breach of contract involved the construction of a Burdine's department store building in Ft. Myers, Florida during the late 1970's. Because we find error in the trial court's rulings, for the reasons stated below, we reverse in part and affirm in part.I.BACKGROUNDA. The PartiesThe claims in this case relate to the construction of a large department store building operated by Burdine's. Appellant/Cross-Appellee, the owner of the building at the time of the trial was Federated Department Stores, Inc. ("Federated"). During the relevant time periods, Federated operated a division called Burdine's. Appellee/Cross-Appellant, the general contractor for the construction of the building was Austin-Westshore Construction Company, Inc. ("Austin-Westshore"). Appellee/Cross-Appellant Seaboard Surety Company ("Seaboard") was Austin-Westshore's performance bond surety. Appellee/Cross-Appellant Poole & Kent Company was the mechanical contractor. The developers of the Edison Mall Shopping Center, where the Burdine's was being built, were also involved in the trial proceedings ("Developers").B. FactsIn June of 1978, Federated and Austin-Westshore entered into a contract involving the construction of a Burdine's department store building to be owned and operated by Federated in Fort Myers, Florida. As designed the building was to comprise two stories, with the structural capability for the addition of a third floor. Under the contract, Austin-Westshore was to build the structure and exterior of the building. Federated already had subcontracts for the electrical, mechanical and plumbing installations. These subcontracts were "assigned" to Austin-Westshore for coordination. Federated was to be responsible for the interior "build-out." Construction was to commence in July of 1979 and be completed one year later. Federated was to receive beneficial use of the store in six months, so that it could finish the interior in time for its scheduled August 1, 1979 opening.For one reason or another, delays plagued the project from the start. Early on in the construction, Austin-Westshore complained to Federated that active sewer and storm water lines underneath the northern side of the building site, and a live power line along its east boundary, threatened Austin-Westshore's construction schedule. Federated's operating agreement with the Developers required the Developers to remove the sewer, storm water and power lines before the construction began. These items were not removed until long after the project began. Despite these and other delays, the store was substantially completed in time for the August 1, 1979 opening.C. Procedural BackgroundIn April of 1980, Austin-Westshore filed suit against Federated in a Florida state court asserting claims for breach of contract and delay damages owed for construction of Federated's Burdine's department store in Fort Myers, Florida. Federated removed the action to the United States District Court for the Middle District of Florida and filed an answer denying liability. Federated also filed a counterclaim against Austin-Westshore asserting breach of contract and negligence for damages allegedly suffered as a result of Austin-Westshore's failure to construct the building in conformance with the contract requirements, industry standards, and/or the local building code. Added to Federated's counterclaim was Austin-Westshore's performance bond surety, Seaboard, who guaranteed Austin-Westshore's proper performance on the building of this particular Burdine's department store.Federated later filed a third-party action against the Developers of the shopping mall where the store was built, contending that if Austin-Westshore was damaged by delays, those delays and damages were caused solely by the actions of the Developers. Federated claimed that the Developers breached their duties to Federated and therefore should be liable for any sums recovered by Austin-Westshore from Federated.The mechanical contractor, Poole & Kent intervened in the action claiming damages for delays and overruns from Austin-Westshore, Seaboard, and Federated, and for alleged nonpayment for work performed under its subcontract. Federated then filed a supplemental counterclaim against Austin-Westshore and Seaboard asserting that Austin-Westshore and Seaboard were directly liable for any sums due Poole & Kent or, in the alternative, that if Federated was found liable on Poole & Kent's claims, then Austin-Westshore and Seaboard were liable to Federated for the same amount.The parties consented to proceed before a United States Magistrate. The jury trial commenced on May 11, 1987 and lasted for almost two months. The jury returned its verdict on July 2, 1987. As to Federated's claims, the jury found in favor of Federated on some of its negligence claims. Specifically, the jury found that Federated was entitled to recover against Austin-Westshore and Seaboard for negligent construction of the following items: exterior concrete walls, foundations, store entrances, footings and structural members of the building. The jury determined that the amount of damages as to these items totaled over 6.7 million dollars. The jury in following the special interrogatories applied the "economic waste" measure of damages to Federated's recovery which had the effect of reducing Federated's damages to $1,564,546.79. The jury also found that Federated was not entitled to recover damages against Austin-Westshore and Seaboard for breach of contract except for a claim for the cleaning of the building after construction.The jury found in favor of Austin-Westshore on several claims and awarded Austin-Westshore the following amounts: $282,011.46 for the unpaid contract balance, $19,176.55 for extra skirts for canvas canopies and additional guard services, and $102,000.00 on its delay/acceleration claim. The jury found that Austin-Westshore was not entitled to recover on any of its claims for extra work. The jury also found that Federated should not recover any of the amount awarded to Austin-Westshore from the Developers.As to Poole & Kent, the jury found that Poole & Kent was entitled to recover against Austin-Westshore and Seaboard on the unpaid contract balance. As to the delay claims, the jury found that Poole & Kent was entitled to recover against Federated on its delay claims. In addition, the jury found that Austin-Westshore, Seaboard, Federated, and the Developers were all partially responsible for Poole & Kent's delay damages, but the verdict form did not ask the jury to apportion the percentage of responsibility between the parties.The trial court entered judgment on February 5, 1988, awarding $1,522,277.32 in damages plus attorneys' fees and costs of $190,284.67 to Federated and awarding $731,195.26 in damages and pre-judgment interest to Austin-Westshore. The trial court also entered final judgment in favor of Poole & Kent and against Austin-Westshore and Seaboard in connection with Poole & Kent's claims for unpaid contract balances in the amount of $56,307.67. A second final judgment was entered in favor of Poole & Kent against Federated in connection with the delay claims in the amount of $63,863.96. Poole & Kent's judgment amounts were based upon stipulated and agreed damages among all the parties as to the claims of Poole & Kent for the separate items of unpaid contract balances and delay damages.Federated, Austin-Westshore and Seaboard all filed post trial motions. By various orders dated June 30, 1988, the trial court ruled on the post trial motions. The trial court granted Austin-Westshore's judgment notwithstanding the verdict ("JNOV") motion with respect to Federated's negligence claims relating to negligent construction of the building. The trial court granted Federated's JNOV motion on its breach of contract claim except for that portion of the claim concerning the exterior walls. The trial court denied Federated's request that its damages be those determined by the jury without the application of "economic waste," and refused to strike Austin-Westshore's delay claim. The trial court granted Federated's JNOV motion against Poole & Kent entering an amended final judgment against Poole & Kent on its claim for delay damages. All post trial claims not addressed in the order were denied. The June 30, 1988 order also reflected the amended damages awarding $731,195.26 in damages to Austin-Westshore and $834,939.61 in damages plus $104,367.45 in attorneys' fees to Federated.II.DISCUSSION1A. The Verdict Form--49(a) or 49(b)As a threshold question we must determine whether the verdict form submitted to the jury was a special verdict under Rule 49(a) or a general verdict accompanied by answers to written interrogatories under Rule 49(b). The record is entirely unclear on this point necessitating our attention to this issue before further analysis.Under the special verdict, Rule 49(a), "the court is given the authority to dispense with the general verdict altogether, and to submit the various fact issues in the case to the jury in the form of individual fact questions, on each of which the jury is to return a special verdict." 9 C. Wright & A. Miller, Federal Practice and Procedure: Civil Sec. 2501 at 484 (1971). "Today, under the special verdict system, the jury makes formal findings on issues of ultimate fact and the court applies the law." Portage II v. Bryant Petroleum Corporation, 899 F.2d 1514, 1520 (6th Cir.1990) (citations omitted).Rule 49(b), as opposed to Rule 49(a), allows the court to submit a general verdict accompanied by written interrogatories, on one or more issues of fact. 9 C. Wright & A. Miller, Sec. 2511 at 521; Fed.R.Civ.P. 49(b). "The general verdict with interrogatories affects the weight given to certain factors; it requires the jury 'to give close attention to the more important issues and their answers serve to check the propriety of the general verdict.' " Portage II, 899 F.2d at 1520 (quoting 9 C. Wright & A. Miller, Sec. 2511, at 521).The trial court's use of the term "special interrogatories" in the order dated June 30, 1988 does not provide guidance in our resolution of this issue. Page 8 of the June 30, 1988 order, refers to the special interrogatories in regard to a case involving a verdict under Rule 49(a). On the other hand, page 26 of the order refers to special interrogatories citing a case involving a verdict under Rule 49(b). Mere use of the term special interrogatories does not put the verdict in this case into the category of a special verdict. The two are quite distinguishable as explained by one commentator:A special verdict is one in which the jury finds all the facts and then refers the case to the court for a decision on those facts. It is rendered in lieu of a general verdict and contains findings on all material issues in the case. Special interrogatories, on the other hand, are propounded as to the selected issues of fact, and answers to them always, or at least normally, given in connection with, not in substitution of, a general verdict.Annotation, Submission of Special Interrogatories in Connection with General Verdict under Federal Rule 49(b), and State Counterparts, 6 A.L.R.3d 438, 440 (1966).After careful consideration of the written questions presented in the jury verdict form, the form on which they were presented,2 and the issues they were designed to resolve, it is clear that a general verdict accompanied by interrogatories as authorized under Rule 49(b) was presented to the jury.B. Procedural Bar to Raising the "Economic Loss"Having determined that this is a 49(b) verdict, we next address the issue of whether Austin-Westshore and Seaboard waived their right to move for JNOV on the economic loss theory by failing to move for directed verdict on that issue at the close of the plaintiff's case or at the close of all the evidence. Federated contends that Austin-Westshore and Seaboard were procedurally barred from raising the economic loss theory for the first time in the motion for JNOV. We agree and reverse on this issue reinstating the jury's finding of liability on the negligence theory.The present analysis begins with the core principle that a court can only consider a JNOV motion if the moving party has previously made a motion for a directed verdict at the close of all the evidence. Fed.R.Civ.P. 50(b); 5A J. Moore & J. Lucas, MOORE'S FEDERAL PRACTICE 50.08 (2d ed. 1989); Rawls v. Daughters of Charity of St. Vincent DePaul, Inc., 491 F.2d 141, 147 (5th Cir.), cert. denied,Try vLex for FREE for 3 days
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