Northrop Corp. v. General Motors Corp.
Decision Date | 27 April 2004 |
Docket Number | No. 49A02-0205-CV-428.,49A02-0205-CV-428. |
Citation | 807 N.E.2d 70 |
Parties | NORTHROP CORPORATION, Northrop Aircraft Division, Appellant-Defendant, v. GENERAL MOTORS CORPORATION and Allison Engine Company, Inc., Appellee-Plaintiffs. |
Court | Indiana Appellate Court |
George T. Patton, Jr., Andrew M. McNeil, Bryan H. Babb, Sandra H. Perry, Bose McKinney & Evans, LLP, Indianapolis, IN, Joseph F. Coyne, Paul S. Malingagio, Pro Hac Vice, Sheppard Mullin Richter & Hampton LLP, Los Angeles, CA, Attorneys for Appellant.
Terrill D. Albright, Joseph H. Yeager, Jr., Baker & Daniels, Indianapolis, IN, John L. Rice, Scott E. Pickens, Pro Hac Vice, Pillsbury Winthrop LLP, Anthony J. Trenga, Pro Hac Vice, Miller & Chevalier, Chartered, Washington, DC, Attorneys for Appellees.
Northrop Corporation, Northrop Aircraft Division, n/k/a Northrop Grumman Corporation ("Northrop"), appeals the trial court's judgment in the amount of $67,669,492.05 in favor of General Motors Corporation and Allison Engine Company, Inc. ("Allison").
We affirm.
Northrop has raised three (3) main issues with approximately ten (10) sub-issues, which we consolidate, as follows:
1. Did the trial court commit reversible error when it denied Northrop's motion for judgment on the evidence?
2. Did the trial court commit reversible error in instructing the jury?
3. Did the trial court err by awarding Allison prejudgment interest?
We commence this opinion by adopting the FACTS as outlined by another panel of this court in General Motors Corp. v. Northrop Corp., 685 N.E.2d 127, 130-132, (Ind. Ct.App.1997), trans. denied, as follows:
The facts of this case are extensive and complicated. This action began with the United States Air Force who, in 1986, chose Northrop and Lockheed Aircraft Company (Lockheed) to build the Air Force's new Advanced Tactical Fighter (ATF) aircraft. Both Lockheed and Northrop were to build two ATF prototypes. The ATFs and their design were to be analyzed by the Air Force, and the company whose aircraft was judged, overall, to be more satisfactory would be awarded all future ATF work. Simultaneously, the Air Force was holding a similar competition between General Electric Corporation (GE) and Pratt & Whitney (P & W) for design of the ATF's engines. Each company would also develop two engines, one to be installed in each of the two aircraft.
The design of Northrop's stealth aircraft was unique in that the aircraft's engines were embedded within the ATF's body. Utilizing this design, the engine's high-temperature exhaust, around 4000 degrees, would flow in a channel over the rear deck of the aircraft, thus reducing radar and infrared observability. A key to the success of the design was the development of an engine exhaust liner (EEL), which is an insulating structure that would allow the aircraft to withstand the heat produced by the ATF's engines.
On October 29, 1987, Allison personnel attended a meeting with GE representatives to discuss the EEL. A GE engineer showed Allison a chart which appeared to be based upon Northrop test data. The chart indicated to Allison that the liner environment would be significantly different than had been indicated by Northrop, and Allison engineers knew that the information would force Allison to develop a heavier and more expensive liner design.
Id. at 130-32 (original footnotes omitted) (footnotes 2 and 3 added).
We also determined that federal law would apply to the specialized terms of the contracts as set out in the FARs, and that California law would control the resolution of the common law causes of action. Id. at 134-35.
Pursuant to remand, a thirty-day jury trial began on January 22, 2002 in the Marion County Superior Court on the remaining issues. After weighing the evidence, the jury returned verdicts for Allison on all counts related to the EEL and the Trailing Edge (TE)4 in the amount of $25,850,434 and $5,427,862, respectively. Thereafter, the trial court, pursuant to California Code § 3287(a), awarded Allison prejudgment interest in the amount of $36,391,196.05. The trial court determined that, alternatively, under California Code § 3287(b), it could have awarded prejudgment interest in the amount of $33,266,396.80.
During the course of the trial, the jury heard testimony from dozens of witnesses and reviewed hundreds of pages of documentary exhibits. All issues were vigorously contested between Allison and Northrop. Virtually all of the FACTS as found in General Motors Corp., supra, were presented to the jury during the course of the trial. The ensuing additional facts and evidence were presented to the jury before arriving at its verdict.
The jury heard evidence that the determination of...
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