Bailey v. Chattem, Inc.

• Decision Date: 16 October 1985
• Citation: 779 F.2d 49
• Parties: Unpublished Disposition NOTICE: Sixth Circuit Rule 24(c) states that citation of unpublished dispositions is disfavored except for establishing res judicata, estoppel, or the law of the case and requires service of copies of cited unpublished dispositions of the Sixth Circuit. WESLEY T. BAILEY, Plaintiff-Appellee, v. CHATTEM, INC., Defendant-Appellant. 83-5424, 84-5193
• Court: U.S. Court of Appeals — Sixth Circuit

Page 49

779 F.2d 49

Unpublished Disposition

NOTICE: Sixth Circuit Rule 24(c) states that citation of unpublished dispositions is disfavored except for establishing res judicata, estoppel, or the law of the case and requires service of copies of cited unpublished dispositions of the Sixth Circuit.

WESLEY T. BAILEY, Plaintiff-Appellee, v. CHATTEM, INC., Defendant-Appellant.

83-5424, 84-5193

United States Court of Appeals, Sixth Circuit.

10/16/85

AFFIRMED

E.D.Tenn.

ON APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TENNESSEE

BEFORE: MARTIN and JONES, Circuit Judges; and BROWN, Senior Circuit Judge.

Per Curiam.

The question before us is whether the evidence presented to the jury was properly admitted and was sufficient to support the verdict in a trial to determine the amount of damages for fraud. This court previously affirmed the lower court's judgment of liability for fraud in obtaining the assignment of patent rights, but reversed the award of damages and remanded for a new trial on that issue. 684 F.2d 386 (6th Cir. 1982). On retrial, the jury awarded Bailey $627,000. Chattem appeals, arguing primarily that the expert testimony was not reliable and was not sufficient to support the amount of damages awarded. On consideration of this argument and the other issues raised, we find that no reversible error occurred in the proceedings in the lower court, and, accordingly, we affirm the judgment.

The complicated facts of this patent dispute are fully explicated in our prior opinion in this litigation. 684 F.2d 386 (6th Cir. 1982). In the prior appeal, this court found that, although the promise sued upon contained a provision that payments would 'somehow' be tied to a cost of living index, there was insufficient proof presented to the jury to define that provision:

Bailey argues that the jury's award could legitimately be larger than this [the total of the remaining payments, $222,679] to take into account future inflation. However, here the measure of damages was set by a proposed contract, and the jury could not assume the payments under the contract would vary unless the contract so provided. Though there was a reference in the evidence to inclusion of a cost of living clause 'somehow' tied to 1975 prices, without further definition this term is too vague for the jury to assign any non-arbitrary value to it. 'To set a quantifiable damage figure arbitrarily is impermissible.' Agricultural Services Ass'n, Inc. v. Ferry-Morse Seed Co., 551 F.2d 1057, 1072 (6th Cir. 1977). (emphasis added).

684 F.2d at 395. Chattem argues that the evidence presented on retrial did not sufficiently define the vague term and that the expert testimony was inadmissible because it did not prove the actual intent of the parties. Chattem also contends that the trial court erred in admitting expert testimony that was not based on reliable methods. We disagree.

We note that the admissibility of expert testimony lies in the sound discretion of the trial court and is reviewable only for an abuse of discretion. Kline v. Ford Motor Co., 523 F.2d 1067, 1070 (9th Cir. 1975); 3 J. Weinstein, Evidence p702 at n.15 (1982). In diversity cases, we resolve questions of the sufficiency of evidence according to the test of sufficiency under state law, applying the law of the forum state. Moran v. Johns-Manville Sales Corp., 691 F.2d 811, 813 (6th Cir. 1982). In Tennessee, the...