Grayco Resources, Inc. v. Poole

Decision Date03 October 1986
Citation500 So.2d 1030
PartiesGRAYCO RESOURCES, INC. v. James E. POOLE, Jr. 84-929.
CourtAlabama Supreme Court

Von G. Memory, Montgomery, for appellant.

Robert A. Huffaker of Rushton, Stakely, Johnston & Garrett, Montgomery, for appellee.

PER CURIAM.

This is an appeal by Grayco Resources, Inc., one of the plaintiffs, from a jury verdict in favor of defendant James E. Poole.

Plaintiff Grayco sued Poole for fraud, breach of contract, and violations under the Securities Act of Alabama, Ala.Code 1975, § 8-6-19, the Securities Act of 1933, and the Securities Exchange Act of 1934, arising out of the sale of fractional interests in certain oil leases in Kentucky. By subsequent amendment to the complaint, Stuart F. Graydon, Sr., one of the principals of Grayco, was added as a party plaintiff.

On appeal by Grayco, the issue is whether the trial judge failed to appropriately charge the jury on state and federal securities law. We hold that the trial judge erred in refusing to give certain requested instructions.

All claims brought by Grayco, except the claim under the Securities Act of 1934, were submitted to the jury. Grayco's and Graydon's post-judgment motions were denied.

Defendant Poole contends that Grayco's counsel failed to specify the grounds for its objection to the trial court's refusal to give certain of Plaintiffs' requested jury charges and that Grayco's objections were made after the jury retired, in violation of Rule 51, Ala.R.Civ.P. Thus, argues Defendant Poole, Plaintiff Grayco waived its right to appellate review. Additionally, Defendant suggests that Grayco's requested charges were adequately covered in the trial court's oral charge or were properly denied as erroneous statements of law.

DID GRAYCO FAIL TO OBJECT BEFORE THE JURY RETIRED?

Defendant contends that Grayco waived its right to appellate review because the jury had retired before any objection was made. To support its contention, Defendant refers to the following colloquy, which occurred upon the conclusion of the court's oral charge:

"THE COURT: Let me see you all just a minute. "(Whereupon a discussion between Court and counsel was held out of the hearing of the Jury and the trial proceeds as follows:)

"THE COURT: Any person who sells or offers to sell a security in violation of a division of this article or any rule or order imposed under this article. Is that what you want me to do? Okay. I just did it. Any person who offers to sell a security in violation of 5, Section 515 [sic] USCA, Section 77e.

"Ladies and gentlemen, if you will, retire and commence your deliberations. You all get the exhibits that were admitted in there.

"(Whereupon, the Jury retired to the jury room and the following occurs out of the presence and hearing of the Jury.)

"MR. MEMORY: Let the Record reflect that in the presence of the Jury and before they separated, it was brought to the attention of the Court that he had not given some of the requested legal charges offered by the Plaintiffs. That the Judge has noted on said requested charges which ones had been given and which ones were refused. We object to the refusal of the Judge and the Court to give each of the charges indicated based upon the fact that they state correct principles of law. They are good law and relate to this particular case. That relates to requested charges one through thirty-three.

"MR. HUFFAKER: I would like the Record to reflect that at the time the objection is being made, the Jury has already retired to deliberate.

"MR. MEMORY: And let the Record reflect that that statement was made under the suggestion of the Court because the objections were made while the Jury was still in the room."

Rule 51, Ala.R.Civ.P., provides that no party may assign as error the giving or failing to give an improper charge unless he objects and states the grounds of his objection before the jury retires. We note that Rule 51, Fed.R.Civ.P., is substantially the same as the relevant portion of Alabama Rule 51.

While it is true that the Rule requires that objections be made prior to the time the jury retires for deliberations, we will not construe this Rule so narrowly as to allow it to be a technical trap. As noted by the Committee Comments to Rule 1, Ala.R.Civ.P., "the policy of rules such as these is to disregard technicality and form in order that the civil rights of litigants may be asserted and tried on the merits," citing Mitchell v. White Consolidated, Inc., 177 F.2d 500 (7th Cir.1949), cert denied, 339 U.S. 913, 70 S.Ct. 574, 94 L.Ed. 1339 (1950). The purpose of the provision of the Rule requiring that objections be made before the jury retires "is to lessen the number of technical errors by giving both the trial judge and the opposing attorney an opportunity to correct possible errors." Pruett v. Marshall, 283 F.2d 436, 441 (5th Cir.1960). See, also, Industrial Development Bd. of Town of Section, Ala. v. Fuqua Industries, 523 F.2d 1226, 1238 (5th Cir.1975).

Here, the record reflects that plaintiff made its objections to the trial judge during a whispered bench conference, prior to the time the jury retired. The charges were written and submitted to the court prior to its oral jury instructions. This is not a situation where the judge had no opportunity to correct his instructions. We find that the spirit of the rule has been complied with; thus, we will not deny plaintiff its right to appellate review.

DID GRAYCO FAIL TO ADEQUATELY SPECIFY THE GROUNDS FOR ITS OBJECTION?

Defendant Poole argues that Grayco did not state the grounds for its objections to the trial court's failure to give numerous written requested jury charges. Consequently, argues Defendant Poole, Grayco waived its right to appellate review.

All of the requested jury charges at issue here are statutory provisions or relate to case law construction of federal or state securities regulations. Defendant Poole relies on the following provision in Rule 51 as the basis for his argument:

"No party may assign as error the giving or failing to give a written instruction, or the giving of an erroneous, misleading, incomplete, or otherwise improper oral charge unless he objects thereto before the jury retires to consider its verdict, stating the matter to which he objects and the grounds of his objection."

It is true that we have construed Rule 51 to proscribe general objections. This Court has often held that a party has waived appellate review based on the "grounds" requirement of Rule 51. See Burnett v. Martin, 405 So.2d 23 (Ala.1981), Wright v. Waters, 367 So.2d 960 (Ala.1979). We have also said, however, that an overly rigid enforcement of Rule 51 should not be permitted. Hosey v. Seibels Bruce Group, S.C. Ins. Co., 363 So.2d 751 (Ala.1978). "Rule [will] not be so technically construed as to obliterate its spirit." Odom v. Linsey, 365 So.2d 664 (Ala.1978). The essential purpose of Rule 51 is to give the trial court an opportunity to correct its instructions and to avoid the waste of time and money from reversals that result from oversight, technical omissions, or remediable mistakes. See Hosey, at 753, Gardner v. Dorsey, 331 So.2d 634 (Ala.1976), Crigler v. Salac, 438 So.2d 1375 (Ala.1983). That being the purpose, we have held that where an oral charge is misleading or confusing, strict adherence to the grounds-stating requirement of Rule 51 is necessary in order to achieve the essential spirit of the Rule. Here, however, we are not dealing with misleading or confusing jury charges. We are dealing with a total failure to give requested written instructions on case law construction of the securities regulations.

It is the duty of the trial judge to educate the jury on the law of the case. Raines v. Williams, 397 So.2d 86 (Ala.1981), Health Maintenance Group of Birmingham v. Rutledge, 459 So.2d 889 (Ala.Civ.App.1984). We agree with the Fifth Circuit Court of Appeals:

"It is the inescapable duty of the trial judge to instruct the jurors fully and correctly on the applicable law of the case, and to guide, direct and assist them toward an intelligent understanding of the legal and factual issues involved in their search for truth."

McClendon v. Reynolds Electrical & Engineering, 432 F.2d 320 (5th Cir.1970), quoting from 2B Barron and Holtzoff, Federal Practice and Procedure, § 1105 at 470 (1961).

Considering the totality of the circumstances in this case, we cannot say that Plaintiff Grayco's objection was so general as to violate Rule 51 and thereby prevent appellate review. We take into consideration 1) the purpose of the Rule, which is to give the trial court an opportunity to correct the instructions, 2) the fact that these were written instructions and thus the trial judge had the opportunity to review them, and 3) the fact that plaintiff's counsel obviously raised his objections during a whispered bench conference at the close of the trial judge's charge to the jury. It is the opinion of this Court that the trial judge was aware of the plaintiff's objections. As we said in Gardner v. Dorsey, 331 So.2d 634 (Ala.1976):

"Surely, the Rule does not contemplate that the objecting party, in order to preserve for review an erroneous instruction, is required to deliver a discourse before the trial judge on the applicable law of the case."

331 So.2d 634, 637.

DID THE TRIAL COURT ERR IN FAILING TO GIVE GRAYCO'S REQUESTED JURY INSTRUCTIONS?

Plaintiff Grayco asserts that the trial court erred in not giving its requested charges number 8 through number 29.

Rule 51, Ala.R.Civ.P., provides that refusal of a requested written instruction "shall not be cause for reversal on appeal if it appears that the same rule of law was substantially and fairly given ... in the court's oral charge." In reviewing instructions to determine if they correctly set forth the applicable law, we must read and consider the charge as a whole. Allen v. Mobile Interstate Piledrivers, 475 So.2d 530, 536 (Ala.1985), ...

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