Aerotech Resources, Inc. v. Dodson Aviation, Inc.

• Decision Date: 14 February 2002
• Docket Number: CIV. A. No. 00-2099-CM.
• Citation: 191 F.Supp.2d 1209
• Parties: AEROTECH RESOURCES, INC., Plaintiff, v. DODSON AVIATION, INCORPORATED, Dodson International Parts, Inc., and Robert L. Dodson, a/k/a J.R. Dodson, Defendants.
• Court: U.S. District Court — District of Kansas

191 F.Supp.2d 1209

AEROTECH RESOURCES, INC., Plaintiff, v. DODSON AVIATION, INCORPORATED, Dodson International Parts, Inc., and Robert L. Dodson, a/k/a J.R. Dodson, Defendants.

CIV. A. No. 00-2099-CM.

United States District Court, D. Kansas.

February 14, 2002.

COPYRIGHT MATERIAL OMITTED

James W. Herron, Lewis, Rice & Fingersh, St. Louis, MO, William H. Meyer, Lewis, Rice & Fingersh, L.C., Kansas City, MO, Richard L. Richards, Jarvis & Richards, Coral Gables, FL, Carl H. Hoffman, Coral Gables, FL, for Plaintiff.

Penny R. Moylan, Bennett, Hendrix & Moylan, Topeka, KS, for Defendants.

MEMORANDUM AND ORDER

MURGUIA, District Judge.

Plaintiff Aerotech Resources, Inc. brought this diversity action governed by Florida state law against defendants Dodson Aviation, Inc., Dodson International Parts, Inc., and Robert L. Dodson, alleging that defendants interfered with its efforts to sell defendants' Boeing 727 aircraft to the Ecuadorian airline TAME, a third party. Specifically, plaintiff alleged that defendants tortiously interfered with its business relationship with TAME, that defendants fraudulently promised plaintiff that it would have the exclusive agency to negotiate and sell defendants' Boeing 727 commercial jet to TAME, that defendants engaged in fraud by keeping silent as to their intent regarding the plaintiff's attempts to sell defendants' Boeing 727 to TAME, and that defendants breached a fiduciary duty owed to plaintiff.

A jury trial in this matter was held before the court between May 21, 2001 and June 4, 2001. On June 4, 2001, the jury returned a verdict partially in favor of plaintiff, finding the defendants committed fraud by silence. The jury awarded damages to plaintiff based on this verdict in the amount of $211,500, specifying that the damages were sustained on November 23, 1998. The jury returned a verdict in favor of defendants on all other submitted issues.

Presently before the court are plaintiff's renewed motion for judgment as a matter of law (Doc. 127); plaintiff's motion to alter or amend the judgment (Doc. 129); plaintiff's protective motion for a new trial (Doc. 131); defendants' motion for judgment as a matter of law, motion to alter or amend judgment, motion for relief from judgment and/or in the alternative, motion for new trial (Doc. 133); and defendants' motion for stay on an execution of judgment pending defendants' motion for a new trial and motion to alter or amend a judgment and motion for judgment as a matter of law (Doc. 135). For the reasons set forth below, plaintiff and defendants' motions are granted in part and denied in part.

• Background

This case arises out of the proposed sale of defendants' Boeing 727 commercial jet aircraft. The parties dispute the type and effect of their relationship preceding the defendants' proposed sale of the aircraft to TAME. Plaintiff contends it entered into a brokerage agreement with defendants, whereby it was to be the exclusive broker of the aircraft for sale to TAME. Defendants dispute this characterization and contend that they attempted to enter into a purchase agreement with plaintiff, whereby plaintiff would purchase the aircraft and resell it to TAME, at a profit. Following defendants' attempt to sell the aircraft to TAME without plaintiff's involvement, plaintiff filed suit alleging tortious interference with a business relationship, fraudulent promise of a future event, fraud by silence and breach of fiduciary duty.

The case proceeded to a trial on the merits. On June 4, 2001, following a trial by jury, the jury returned a verdict partially in favor of plaintiff, as noted. The court entered judgment according to the verdict on June 4, 2001.¹ Subsequently, the parties filed the post-trial motions that are currently pending before the court.

• Legal Standards

• Post-Verdict Renewed Motion for Judgment as a Matter of Law

A renewed motion for judgment as a matter of law (previously judgment notwithstanding the verdict or "judgment n.o.v.")² under Fed.R.Civ.P. 50 "may be granted only when, without weighing the credibility of the evidence, there can be but one reasonable conclusion as to the proper judgment." Jackson v. City of Albuquerque, 890 F.2d 225, 230 (10th Cir. 1989). Judgment as a matter of law is appropriate "only if the proof is all one way or so overwhelmingly preponderant in favor of the movant as to permit no other rational conclusion." J.I. Case Credit Corp. v. Crites, 851 F.2d 309, 311 (10th Cir.1988). "Judgment n.o.v. should be cautiously and sparingly granted." Lucas v. Dover Corp., 857 F.2d 1397, 1400 (10th Cir.1988). "In determining whether the grant of a motion for judgment n.o.v. is appropriate, the court must view the evidence and indulge all inferences in favor of the party opposing the motion and cannot weigh the evidence, consider the credibility of witnesses or substitute its judgment for that of the jury." Id. (internal citations omitted).

A. Motion for New Trial

Pursuant to Fed.R.Civ.P. 59(a), a "new trial may be granted to all or any of the parties on all or part of the issues ... in an action in which there has been a trial by jury. . . ." Motions for a new trial are committed to the sound discretion of the trial court. McDonough Power Equip., Inc. v. Greenwood, 464 U.S. 548, 556, 104 S.Ct. 845, 78 L.Ed.2d 663 (1984); Hinds v. Gen. Motors Corp., 988 F.2d 1039, 1046 (10th Cir.1993). They are "not regarded with favor and should only be granted with great caution." United States v. Kelley, 929 F.2d 582, 586 (10th Cir.1991).

In reviewing a motion for a new trial the court must view the evidence in the light most favorable to the prevailing party. Griffin v. Strong, 983 F.2d 1544, 1546 (10th Cir.1993). A new trial based upon an error of law is unwarranted unless that error affected the substantial rights of the parties. Fed.R.Civ.P. 61; Heyen v. United States, 731 F.Supp. 1488, 1489 (D.Kan. 1990), aff'd, 945 F.2d 359 (10th Cir.1991). "The party seeking to set aside a jury verdict must demonstrate trial error which constitutes prejudicial error or that the verdict is not based on substantial evidence." White v. Conoco, Inc., 710 F.2d 1442, 1443 (10th Cir.1983). The court should "ignore errors that do not affect the essential fairness of the trial." McDonough Power Equip., 464 U.S. at 553, 104 S.Ct. 845.

Moreover, where a jury's verdict is challenged as contrary to the evidence, the court's "inquiry focuses on whether the verdict is clearly, decidedly or overwhelmingly against the weight of the evidence." Black v. Hieb's Enters., Inc., 805 F.2d 360, 363 (10th Cir.1986).

• Motion to Alter or Amend Judgment

Rule 59(e) preserves the district court's right to alter or amend a judgment after the judgment is entered. Motions to alter or amend a judgment are appropriate where they involve reconsideration of matters properly encompassed in the decision on the merits. White v. N.H. Dep't of Employment Sec., 455 U.S. 445, 451, 102 S.Ct. 1162, 71 L.Ed.2d 325 (1982). In fact, a Rule 59(e) motion to alter or amend judgment is essentially a motion for reconsideration. Henry v. Office of Thrift Supervision, 1993 WL 545195, at *1 (D.Kan. Dec. 28, 1993) (citing Hilst v. Bowen, 874 F.2d 725, 726 (10th Cir.1989)), aff'd, 43 F.3d 507 (10th Cir.1994)). It allows a party to allege fundamental legal errors that require the court to reconsider an earlier decision. Federated Mut. Ins. Co. v. Botkin Grain Co., 856 F.Supp. 607, 609 (D.Kan.1994). Reconsideration is proper when there has been a manifest error of law or fact, when new evidence has been discovered or when there has been a change in the relevant law. Brumark Corp. v. Samson Res. Corp., 57 F.3d 941, 948 (10th Cir.1995); All West Pet Supply Co. v. Hill's Pet Prods. Div., Colgate Palmolive Co., 847 F.Supp. 858, 860 (D.Kan. 1994). A party cannot invoke Rule 59(e) to raise arguments or evidence that should have been raised in the first instance or to rehash arguments previously considered and rejected by the court. See id.; Federated Mut. Ins. Co., 856 F.Supp. at 609.

In addition, a Rule 59(e) motion is appropriate where the court's original judgment failed to provide that relief which the court found a party entitled to receive, or where the party seeks a post-judgment award of prejudgment interest. Osterneck v. Ernst & Whitney, 489 U.S. 169, 175, 109 S.Ct. 987, 103 L.Ed.2d 146 (1989).

"The party moving for reconsideration has the `burden to show that there has been a change of law, that new evidence is available, or that reconsideration is necessary to correct clear error or prevent manifest injustice.'" Mackey v. IBP, Inc., 1996 WL 417513 at *2 (D.Kan. July 22, 1996) (quoting Int'l Bhd. of Teamsters, Chauffeurs, Warehousemen & Helpers of Am. v. Sambol Meat Packing Co., 1993 WL 393010, at *2 (D.Kan. Sept.30, 1993)). Whether to grant or deny a motion to reconsider is committed to the district court's sound discretion. Henry, 1993 WL 545195, at *1 (citing Hancock v. City of Okla. City, 857 F.2d 1394, 1395 (10th Cir. 1988)).

• Motion for Relief from Judgment

Rule 60(b) provides for relief from judgment provides courts with a "grand reservoir of equitable power to do justice in a particular case." State Bank of S. Utah v. Gledhill (In re Gledhill), 76 F.3d 1070, 1080 (10th Cir.1996) (internal quotations omitted). Therefore, the court has substantial discretion to grant relief as justice requires under Rule 60(b). Pelican Prod. Corp. v. Marino, 893 F.2d 1143, 1146 (10th Cir.1990). However, such relief "is extraordinary and may only be granted in exceptional circumstances." Bud Brooks Trucking, Inc. v. Bill Hodges Trucking Co., 909 F.2d 1437, 1440 (10th Cir.1990). "A litigant shows exceptional circumstances by satisfying one or more of Rule 60(b)'s six grounds."³

Van Skiver v. United States, 952 F.2d 1241, 1243-44 (10th Cir.1991).

"Not a substitute for a direct appeal, a rule 60(b) motion addresses matters outside the issues on which the judgment was...