869 F.2d 264 (6th Cir. 1989), 88-5226, Agristor Leasing v. A.O. Smith Harvestore Products, Inc.

Docket Nº88-5226.
Citation869 F.2d 264
Party NameAGRISTOR LEASING, a Wisconsin Partnership; Agristor Credit Corporation, a Delaware corporation; Steiner Financial Corporation, a Utah corporation, Plaintiffs, William Dayon Taylor; Paulette Taylor, Defendants, Counter-Plaintiffs and Third-Party Plaintiffs-Appellees, v. A.O. SMITH HARVESTORE PRODUCTS, INC., Third-Party Defendant-Appellant.
Case DateJanuary 09, 1989
CourtUnited States Courts of Appeals, Court of Appeals for the Sixth Circuit

Page 264

869 F.2d 264 (6th Cir. 1989)

AGRISTOR LEASING, a Wisconsin Partnership; Agristor Credit

Corporation, a Delaware corporation; Steiner

Financial Corporation, a Utah

corporation, Plaintiffs,

William Dayon Taylor; Paulette Taylor, Defendants,

Counter-Plaintiffs and Third-Party Plaintiffs-Appellees,

v.

A.O. SMITH HARVESTORE PRODUCTS, INC., Third-Party Defendant-Appellant.

No. 88-5226.

United States Court of Appeals, Sixth Circuit

January 9, 1989

Argued Dec. 15, 1988.

Rehearing and Rehearing En Banc Denied March 24, 1989.

Page 265

John K. Maddin, Jr., Gracey, Maddin, Cowan & Bird, Nashville, Tenn., Arnold A., Jr., Hatfield, Van Cleave & Stulce, Chattanooga, Tenn., D. Michael Tranum, Knoxville, Tenn., Robert L. Crossley, Richard E. Herod, and James A. DeLanis, Nashville, Tenn., for Agristor Leasing, a Wisconsin Partnership, Agristor Credit Corp., a Delaware corp. and Steiner Financial Corp., a Utah corp., plaintiffs.

Malcolm L. McCune, James A. Vick, Gracey, Maddin, Cowan & Bird, Nashville, Tenn., Robert R. Ramsey, Burnett & Ramsey, Jamestown, Tenn., for William Dayon Taylor, defendant-appellee.

Robert R. Ramsey, Jamestown, Tenn., for Paulette Taylor, defendant-appellee.

Donald E. Egan, Lee Ann Watson, Bonita L. Stone, Katten, Muchin & Zavis, Chicago, Ill., John E. Brandon, David J. Pflaum, Watkins, McGugin, McNeilly & Rowan, Nashville, Tenn., for A.O. Smith Corp., defendant.

Before MILBURN and NORRIS, Circuit Judges, and SUHRHEINRICH, District Judge [*].

MILBURN, Circuit Judge.

A.O. Smith Harvestore Products, Inc. ("AOSHPI"), the third-party defendant, appeals from the judgment entered on the jury verdict for Dayon Taylor, the third-party plaintiff, in this diversity action originally brought to recover silos and damages for breach of a lease. The jury awarded Taylor approximately $1.1 million dollars in compensatory and punitive damages against AOSHPI on theories of strict tort liability, fraud, negligent and commercial misrepresentation. For the reasons that follow, we affirm.

Page 266

I.

A.

Plaintiffs Agristor Leasing, Agristor Credit Corp., and Steiner Financial Corp. ("creditors") filed this action against defendants William Dayon Taylor and Paulette Taylor on May 13, 1983. The creditors alleged the Taylors leased several silos and related equipment (hereinafter collectively referred to as "Harvestore silos") and had defaulted on their monthly payments.

On August 5, 1983, the Taylors answered and filed counterclaims against the plaintiffs and a third-party complaint against AOSHPI, A.O. Smith Corp., and Robert Brown, d/b/a East Tennessee Silo Builders. AOSHPI manufactures the Harvestore silos; the A.O. Smith Corp. is AOSHPI's parent corporation; and Brown erected the silos on the Taylor farm. The Taylors alleged the silos were defective and filed claims based upon allegations of fraud, negligent misrepresentation, sections 402A and B and 552(d) of the Restatement (Second) of Torts (1977), breach of express and limited warranties, and violations of the Tennessee Products Liability Act, Tenn.Code Ann. Secs. 29-28-101 to -108 (1980 & Supp.1988).

Several of the Taylors' claims were eliminated during pretrial proceedings, including Paulette Taylor's. The A.O. Smith Corp. and Robert Brown were voluntarily dismissed as third-party defendants prior to trial. In the liability phase of the trial, the jury returned a verdict, finding in favor of the Taylors and against AOSHPI on the Taylors' theories of fraud, negligent and commercial misrepresentation, and strict tort liability. The jury awarded Taylor compensatory damages of $501,168.00 and 10 per cent prejudgment interest on the compensatory damages. It also awarded $500,000.00 in punitive damages.

The district court denied AOSHPI's motions for a directed verdict, JNOV, a new trial, and remittitur. On January 20, 1988, the district court entered a final judgment on the jury verdict for $1,090,703.60, and AOSHPI filed a timely appeal on February 18, 1988.

B.

Taylor is a high school biology teacher at Clarkrange High School in Clarkrange, Tennessee. He holds a master's degree in education and was an experienced dairy farmer. He owned and operated a dairy farm near Clarkrange until 1985. On March 13, 1980, Taylor entered into a lease of approximately $230,000.00 for two Harvestore...

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47 practice notes
  • 15 F.3d 573 (6th Cir. 1994), 92-5611, Black v. Ryder/P.I.E. Nationwide, Inc. Teamsters Local No. 519
    • United States
    • Federal Cases United States Courts of Appeals Court of Appeals for the Sixth Circuit
    • February 2, 1994
    ...motion is made, and give that party the benefit of all reasonable inferences. See Agristor Leasing v. A.O. Smith Harvestore Prods., Inc., 869 F.2d 264, 268 (6th A hybrid section 301 action involves two constituent claims: breach of a collective bargaining agreement by the employer and breac......
  • 50 F.3d 1365 (7th Cir. 1995), 94-1589, Horn v. A.O. Smith Corp.
    • United States
    • Federal Cases United States Courts of Appeals Court of Appeals for the Seventh Circuit
    • March 20, 1995
    ...Hines v. A.O. Smith Harvestore Prods., Inc., 880 F.2d 995 (8th Cir.1989); Agristor Leasing v. A.O. Smith Harvestore Prods., Inc., 869 F.2d 264 (6th Cir.1989); Agristor Leasing v. Saylor, 803 F.2d 1401 (6th Cir.1986); Hill v. A.O. Smith Corp., 801 F.2d 217 (6th Cir.1986); Klehr v. A.O. Smith......
  • Gibson v. Total Car Franchising Corp., 072804 NCMDC, 1:01CV994
    • United States
    • Federal Cases United States District Courts 4th Circuit Middle District of North Carolina
    • July 28, 2004
    ...Ct. App. Mar. 20, 2003) (awarding damages at a punitive-to-compensable ration of 2.7 to 1) (unpublished); Agristor Leasing v. AOSHPI , 869 F.2d 264 (6th Cir. 1989) (affirming based on Tennessee law an award of punitive damages in the amount of $500, 000 on theories of fraud and negligent At......
  • 819 P.2d 69 (Colo. 1991), 88SA397, Keller v. A.O. Smith Harvestore Products, Inc.
    • United States
    • Colorado Supreme Court of Colorado
    • October 7, 1991
    ...to establish tort claims not specifically prohibited by the terms of an agreement. Agristor Leasing v. A.O. Smith Harvestore Prods., Inc., 869 F.2d 264 (6th Cir.1989) (general release of claims clause ineffective to bar claims of fraud and misrepresentation in the inducement). See Formento ......
  • Request a trial to view additional results
47 cases
  • 15 F.3d 573 (6th Cir. 1994), 92-5611, Black v. Ryder/P.I.E. Nationwide, Inc. Teamsters Local No. 519
    • United States
    • Federal Cases United States Courts of Appeals Court of Appeals for the Sixth Circuit
    • February 2, 1994
    ...motion is made, and give that party the benefit of all reasonable inferences. See Agristor Leasing v. A.O. Smith Harvestore Prods., Inc., 869 F.2d 264, 268 (6th A hybrid section 301 action involves two constituent claims: breach of a collective bargaining agreement by the employer and breac......
  • 50 F.3d 1365 (7th Cir. 1995), 94-1589, Horn v. A.O. Smith Corp.
    • United States
    • Federal Cases United States Courts of Appeals Court of Appeals for the Seventh Circuit
    • March 20, 1995
    ...Hines v. A.O. Smith Harvestore Prods., Inc., 880 F.2d 995 (8th Cir.1989); Agristor Leasing v. A.O. Smith Harvestore Prods., Inc., 869 F.2d 264 (6th Cir.1989); Agristor Leasing v. Saylor, 803 F.2d 1401 (6th Cir.1986); Hill v. A.O. Smith Corp., 801 F.2d 217 (6th Cir.1986); Klehr v. A.O. Smith......
  • Gibson v. Total Car Franchising Corp., 072804 NCMDC, 1:01CV994
    • United States
    • Federal Cases United States District Courts 4th Circuit Middle District of North Carolina
    • July 28, 2004
    ...Ct. App. Mar. 20, 2003) (awarding damages at a punitive-to-compensable ration of 2.7 to 1) (unpublished); Agristor Leasing v. AOSHPI , 869 F.2d 264 (6th Cir. 1989) (affirming based on Tennessee law an award of punitive damages in the amount of $500, 000 on theories of fraud and negligent At......
  • 819 P.2d 69 (Colo. 1991), 88SA397, Keller v. A.O. Smith Harvestore Products, Inc.
    • United States
    • Colorado Supreme Court of Colorado
    • October 7, 1991
    ...to establish tort claims not specifically prohibited by the terms of an agreement. Agristor Leasing v. A.O. Smith Harvestore Prods., Inc., 869 F.2d 264 (6th Cir.1989) (general release of claims clause ineffective to bar claims of fraud and misrepresentation in the inducement). See Formento ......
  • Request a trial to view additional results