Miller v. Holzmann

Decision Date23 June 2008
Docket NumberCivil Action No. 95-1231 (RCL).
Citation563 F.Supp.2d 54
PartiesRichard F. MILLER, Plaintiff, v. Philipp HOLZMANN, et al., Defendants.
CourtU.S. District Court — District of Columbia

Keith V. Morgan, U.S. Attorney's Office, Robert B. Bell, Gregory B. Reece, Howard M. Shapiro, Jennifer M. O'Connor, Matthew B. Baumgartner, Monya Monique Bunch, Robert D. Cultice, Wilmer Cutler Pickering Hale & Dorr LLP, Jonathan Goldman Cedarbaum, Wilmer Hale, Kevin Michael Henry, Sidley Austin, LLP, Michael F. Hertz, Department of Justice, Michael J. Friedman, U.S. Department of Justice, Washington, DC, Carolyn Gail Mark, U.S. Department of Justice, Robert D. Cultice, Wilmer Cutler Pickering Hale & Dorr LLP, Boston, MA, for Plaintiff.

Charles Anthony Zdebski, Troutman Sanders LLP, Barry Coburn, Coburn & Coffman, PLLC, Jeffrey J. Lopez, Michael Reilly Miner, Elizabeth Ewert, Michael J. McManus, Drinker Biddle & Reath LLP, Andrew Lawrence Hurst, Stephen Printiss Murphy, Reed Smith LLP, Washington, DC, June Ann Sauntry, Brian P. Watt, Bryan B. Lavine, Troutman Sanders LLP, Charles C. Murphy, Jr., Ellen G. Schlossberg, Vaughan & Murphy, Atlanta, GA, for Defendants.

MEMORANDUM OPINION

ROYCE C. LAMBERTH, Chief Judge.

Ironically enough, this sordid tale of filthy dealing and dirty money began in the sewers of Cairo. After the Camp David Accords of 1979, the United States saw an opportunity to reward Egypt for its recognition of Israel with funding for public works projects. According to plaintiffs' evidence, defendants also saw an opportunity: to enrich themselves at U.S. tax-payers' expense by colluding to secure, and then overcharge on, contracts for these projects.

Nearly twenty years after these underlying events, this multi-defendant1 conspiracy case came to trial.2 Over the course of seven weeks, a jury absorbed a vast amount of evidence, including testimony from forty-one witnesses and over 500 exhibits, and witnessed a vigorous and thorough defense. After resolving numerous factual disputes and weighing the credibility of each witness, the jury returned a verdict for plaintiffs on May 14, 2007, awarding over $34 million in damages to the United States. This Court ultimately fixed total liability at $90,438,087.66.3

Each defendant now challenges the jury's verdict and/or the Court's judgment.4 Their motions present issues relevant to both liability and damages. Defendants' challenges, in their new trial motions, to this Court's evidentiary and other rulings necessarily implicate the sufficiency of the evidence objections raised by their motions for judgment as a matter of law. Hence, this Opinion first considers defendants' proposed grounds for a new trial, then considers the sufficiency of the evidence along with defendants' other offered bases for judgment as a matter of law, and finally evaluates certain defendants' arguments for remittitur and/or relief.

I. Applicable Legal Standards
A. Rule 59(a) — New Trial

Federal Rule of Civil Procedure 59(a) affords a court discretion to grant a new trial on all or some issues "for any reason for which a new trial has heretofore been granted in an action at law in federal court." Fed.R.Civ.P. 59(a). Such reasons have included excessive damages, "substantial errors ... in the admission or rejection of evidence[,] or the giving or refusal of instructions." Nyman v. FDIC, 967 F.Supp. 1562, 1569 (D.D.C.1997) (Urbina, J.). Yet "minor evidentiary errors ... in the course of a long trial," do not suffice. Wild v. Alster, 377 F.Supp.2d 186, 189 (D.D.C.2005) (Walton, J.) (quotation marks and citations omitted). Rather, the court's discretion to grant a new trial — which is to be exercised "sparingly and cautiously," Miller v. Penn. R.R. Co., 161 F.Supp. 633, 641 (D.D.C.1958) (Holtzoff, J.)"has generally been understood to include actions rendering the trial unfair." Sparshott v. Feld Entm't, Inc., 311 F.3d 425, 433 (D.C.Cir.2002). Only "a clear miscarriage of justice," Wild, 377 F.Supp.2d at 189, or "manifest error of law or fact" will warrant a new trial, Nyman, 967 F.Supp. at 1569.

When a court concludes that the jury's "verdict is against the weight of the evidence," rather than grant judgment as a matter of law, it may instead order a new trial. Nyman, 967 F.Supp. at 1569; see Fed.R.Civ.P. 50(b)(2). "The standard for a new trial is less onerous than the one applicable to a Rule 50 motion." Nyman, 967 F.Supp. at 1569. But just as with a motion for judgment as a matter of law, the Court should "not disturb a jury verdict `unless the evidence and all reasonable inferences that can be drawn therefrom are so one-sided that reasonable men and women could not disagree on the verdict.'" Duncan v. Wash. Metro. Transit Auth., 240 F.3d 1110, 1113 (D.C.Cir.2001) (en banc) (quoting Curry v. District of Columbia, 195 F.3d 654, 659 (D.C.Cir.1999)).

B. Judgment as a Matter of Law — Rule 50

Under Federal Rule of Civil Procedure 50, a court may, on motion, direct entry of judgment contrary to a jury verdict when "a reasonable jury would not have a legally sufficient evidentiary basis to find for that party on that issue." Fed.R.Civ.P. 50(a). Courts "do not, however, lightly disturb a jury verdict." McGill v. Munoz, 203 F.3d 843, 845 (D.C.Cir.2000). A court may enter judgment contrary to that verdict only when "the evidence[,] and all reasonable inferences that can be drawn therefrom[,] are so one-sided that reasonable men and women could not" have reached the jury's verdict. Scott v. District of Columbia, 101 F.3d 748, 752 (D.C.Cir.1996).

"[A]lthough the court should review the record as a whole, it must disregard all evidence favorable to the movant that the jury was not required to believe." In re Lorazepam & Clorazepate Antitrust Litig., 467 F.Supp.2d 74, 80 (D.D.C.2006) (Hogan, C.J.) (citing Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 151, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000)). Further, "the court must draw all reasonable inferences in favor of the nonmoving party, and it may not make credibility determinations or weigh the evidence." Reeves, 530 U.S. at 150, 120 S.Ct. 2097. "Credibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Thus, a court should grant a Rule 50 motion only when, "under the governing law, there can be but one [ ] conclusion as to the verdict" — that it defies reason. Id. at 250, 106 S.Ct. 2505.

C. RemittiturRule 60(b)

Federal Rule of Civil Procedure 60(b) empowers courts to grant relief from a final judgment when "the judgment has been satisfied, released, or discharged." Fed.R.Civ.P. 60(b)(5). "[A] motion for a credit on a judgment should be treated as a Rule 60(b)(5) motion for relief from [that] judgment." Kassman v. Am. Univ., 546 F.2d 1029, 1033 (D.C.Cir. 1976) (per curiam). Like a motion for a new trial, "the decision to grant or deny a rule 60(b) motion is committed to the discretion of the District Court." United Mine Workers 1974 Pension v. Pittston Co., 984 F.2d 469, 476 (D.C.Cir.1993).

D. Alteration or AmendmentRule 59(e)

Federal Rule of Civil Procedure 59(e) provides for alteration or amendment of a previously-entered judgment. Fed.R.Civ.P. 59(e). "While the court has considerable discretion in ruling on a 59(e) motion, the reconsideration and amendment of a previous order is an extraordinary measure." Zyko v. Dep't of Def, 180 F.Supp.2d 89, 90 (D.D.C.2001) (Urbina, J.). Hence, such a motion "need not be granted unless the district court finds that there is ... `the need to correct a clear error or prevent manifest injustice.'" Firestone v. Firestone, 76 F.3d 1205, 1208 (D.C.Cir.1996) (quoting Nat'l Trust v. Dep't of State, 834 F.Supp. 453, 455 (D.D.C.1993)).

II. New Trial Motions
A. Prior Criminal Proceedings

In 2002, Defendant Bilhar pleaded guilty to an antitrust conspiracy in violation of the Sherman Act, 15 U.S.C. section 1. (See Exs. A, B to PL's Mot. [558].) In its Order of March 14, 2007, this Court granted plaintiffs' motion in limine [558] to preclude Bilhar from contesting its liability on Contracts 20A and 29 based on this plea. (See Mem. Op. & Order of Mar. 14, 2007[713] at 5-6; Mem. Op. & Order of Mar. 20, 2007[738] at 1-2 (denying motion for reconsideration).) The Court subsequently admitted both Bilhar's plea agreement and the accompanying Joint Rule 11 Memorandum, against all defendants, under Federal Rule of Evidence 803(22). (Mem. Op. & Order of Mar. 16, 2007[722] at 3-4; Mem. Op. & Order of Mar. 20, 2007[738] at 2 (denying motion for reconsideration); Mem. Op. & Order of Mar. 21, 2007[743] at 4-5 (denying motion to sever).) Defendants challenge both rulings.5

1. Collateral Estoppel

"Courts have often held that issues determined in connection with a criminal conviction may be preclusively established in later civil trials." Otherson v. Dep't of Justice, 711 F.2d 267, 271 (D.C.Cir.1983). While recognizing that at least seven other Circuits have done so, our Court of Appeals has not taken a definitive position on whether issues determined in connection with a defendant's guilty plea may similarly be given preclusive effect. Id. at 275 n. 8.

Meanwhile, district courts in this Circuit have routinely treated criminal convictions — including those based on guilty pleas — "[a]s conclusive proof of the facts supporting the conviction,"...

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