Powertrain, Inc. v. Ma, Civil Action No. 1:11–cv–00105–GHD.

• Citation: 88 F.Supp.3d 679
• Decision Date: 17 February 2015
• Docket Number: Civil Action No. 1:11–cv–00105–GHD.
• Parties: POWERTRAIN, INC., a Mississippi corporation, Plaintiff v. Joyce MA, individually, Defendant.
• Court: U.S. District Court — Northern District of Mississippi

88 F.Supp.3d 679

POWERTRAIN, INC., a Mississippi corporation, Plaintiff

v.Joyce MA, individually, Defendant.

Civil Action No. 1:11–cv–00105–GHD.

United States District Court, N.D. Mississippi, Aberdeen Division.

Signed Feb. 17, 2015.

Filed Feb. 18, 2015.

Duncan L. Lott, Duncan Lott, Attorney, Thomas O. Cooley, Langston & Lott, P.A., Booneville, MS, for Plaintiff.

Timothy Michael Peeples, Daniel, Coker, Horton & Bell, Oxford, MS, for Defendant.

MEMORANDUM OPINION DENYING PLAINTIFF'S MOTION FOR NEW TRIAL

GLEN H. DAVIDSON, Senior District Judge.

Presently before the Court is a motion for new trial [279] filed by Plaintiff Powertrain, Inc. Defendant Joyce Ma has filed a response, and Plaintiff Powertrain, Inc. has filed a reply. The matter is now ripe for review. Upon due consideration, the Court finds that the motion [279] is not well taken and should be denied.

A. Factual and Procedural Background

On May 3, 2011, Plaintiff Powertrain, Inc. (“Powertrain”) brought this diversity action against Best Machinery & Electrical, Inc. (“Best Machinery”), a dissolved California corporation, and Joyce Ma (“Ma”), a California citizen.¹ This case has been on the Court's docket since that time, approximately three years and nine months.

Service of process was perfected on Best Machinery pursuant to applicable law. However, the Clerk of the United States District Court for the Northern District of Mississippi subsequently entered default [108]; Powertrain filed a motion for default judgment [109] against Best Machinery; and the Court granted default judgment against Best Machinery in the amount of $2,600,000.00, together with interest accruing at the then-current federal rate of 0.13% from the date of the Default Judgment until the date it was paid in full. See Ct.'s Default J. [124]; Ct.'s Order [117] & Mem. Op. [118] Re: Serv. of Process on Best Machinery.² At trial, the only claims remaining were Powertrain's claims against Ma, individually.³

Uncontested Facts

The following facts were established by the Pretrial Order:

In 2001, Ma and Oneal Wood, the president of Powertrain, met at a trade show in Las Vegas. Pretrial Order [272] at 3, ¶ (a); 5, ¶ 8(b). Subsequently, Powertrain placed orders for Chinese engines through Best Machinery; Best Machinery then ordered the engines from Chinese manufacturers and had them shipped to the United States. Id. at 3, ¶ 8(a); 5, ¶ 8(b); 7, ¶ 8. After the imported engines arrived in the United States, Powertrain sold or distributed the engines. Id. at 7, ¶ 9. All subject engines were manufactured in China, were imported for resale in the United States by Powertrain, and were subject to EPA emission standards. Id. at 6, ¶¶ 6, 7. Although the extent of Ma's involvement is contested, it is undisputed that Ma helped find Chinese manufacturers who could supply the products Powertrain wanted. Id. at 3, ¶ 8(a); 5, ¶ 8(b).

Between sometime in 2002 and early 2003, Best Machinery assisted Powertrain in Powertrain's purchase of a handful of engines, as well as related equipment, manufactured in China by EVERFINE Corporation (“Everfine”). Id. at 6, ¶ 9(a)(1). As a part of the process of purchasing engines manufactured by Everfine, Powertrain applied for and eventually obtained a Class I Certificate of Conformity from the EPA which was issued to Powertrain on June 4, 2002, for a 4 hp/163 cc Everfine engine designated as engine family 2PTIS.1632P1 for model year 2002. Id. at 6, ¶ 9(a)(2). In early 2003, Best Machinery ceased its relationship with Everfine and began to arrange for Powertrain to purchase engines and related equipment manufactured by Tong Yong,⁴ another Chinese manufacturer. Id. at 6, ¶ 9(a)(4). From 2003 to 2006, Powertrain renewed its Certificate of Conformity for the Everfine 4 hp/163 cc engine under the carry-over provisions of 40 C.F.R. § 90.119. Id. Powertrain obtained that Class I Certificate of Conformity with the assistance of Thomas Keenum, an attorney whom Powertrain retained for that purpose. Id. at 6, ¶ 9(a)(3).

Between 2002 and 2006, Powertrain purchased 78,284 small engines and non-road equipment containing such engines from China through Best Machinery for resale in the United States. Id. at 6, ¶ 9(a)(5). Between early 2003 and approximately November of 2006, the engines and related equipment purchased by Powertrain through Best Machinery were manufactured by Tong Yong. Id. at 6, ¶ (9)(a)(4).

On May 28, 2009, the United States Department of Justice, Environmental and Natural Resource Division, filed a complaint against Powertrain and its sister companies, Wood Sales, Inc. (“Wood Sales”) and Tool Mart, Inc. (“Tool Mart”), related to the purchase and importation of the subject engines into the United States. Id. at 7, ¶ 9(a)(10). In May of 2011, the United States and Powertrain, Wood Sales, and Tool Mart entered into a Consent Decree requiring Powertrain, Wood Sales, and Tool Mart to pay civil penalties to the United States in the amount of $2,000,000 plus interest; to implement an emission reduction program; and to destroy or export any remaining subject engines in their inventory. Id. at 7, ¶ 9(a)(11). Powertrain subsequently initiated this suit claiming that Best Machinery and Ma should be held responsible for the damages Powertrain incurred in the suit by the United States against Powertrain. Id. at 7, ¶ 9(a)(12).

Alleged Facts

Powertrain alleged that Ma, both individually and as the alter ego of Best Machinery, imported to the United States from China small engines that violated the EPA's emission and labeling standards and were not covered by certificates of conformity, and that Powertrain purchased 78,284 of the engines (the “subject engines”) from Ma. Powertrain alleged that as a direct and proximate result of Ma's alleged sale of the subject engines to Powertrain, the United States filed civil actions against Powertrain for injunctive relief and the assessment of civil penalties for these violations, and Powertrain was liable for civil penalties in the amount of $2,000,000 plus interest, the cost of exporting or permanently destroying the subject engines, and the cost of implementing an emission off-set project. Powertrain asserted causes of action for negligence, breach of contract, breach of warranty, and piercing-the-corporate-veil/alter-ego liability for Ma's involvement through Best Machinery.

On October 28, 2014, trial commenced. At the close of Powertrain's case-in-chief, on October 29, 2014, Ma moved for judgment as a matter of law. The Court granted the motion and entered final judgment [277] in favor of Ma against Powertrain.

On November 21, 2014, Powertrain filed the present motion for a new trial [279]. Powertrain asserts essentially two grounds for relief: (1) “the trial court erred in refusing to allow Powertrain to read into the record deposition testimony of Best [Machinery]'s owners, Zhao Lei and Zhao Agen”; and (2) “the trial court's decision [to grant Ma's motion for judgment as a matter of law at the close of Powertrain's case-in-chief] is against the great weight of the evidence when viewed in the light most favorable to Powertrain” and was the result of improper weighing of the evidence and credibility determinations. See Pl.'s Mot. New Trial [279] ¶ 9.

The Court has carefully considered the arguments concerning Powertrain's request for a new trial, as well as attached documentation, the trial transcript, the trial exhibits, and all authorities bearing on the matter. The Court is of the opinion that none of Powertrain's arguments have merit and that the Court's judgment should stand, for the reasons stated below.

B. Federal Rule of Civil Procedure 59 Standard

Rule 59 of the Federal Rules of Civil Procedure provides in pertinent part that “[t]he court may, on motion, grant a new trial on all or some of the issues—and to any party—... after a jury trial, 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)(1)(A). Such a motion “must be filed no later than 28 days after the entry of judgment.” Fed.R.Civ.P. 59(b). Because the instant motion for a new trial was filed within 28 days of the entry of judgment, it shall be construed as a Rule 59 motion. See, e.g., Komolafe v. Dewease, 87 Fed.Appx. 385, 2004 WL 304198, at *1 (5th Cir.2004) (per curiam) (citing Teal v. Eagle Fleet, Inc., 933 F.2d 341, 347 n. 3 (5th Cir.1991) (post-judgment motion for new trial and/or for relief from judgment was properly considered under Rule 59 because it was filed within the requisite Rule 59 time period)).

“A district court has discretion to grant a new trial under Rule 59(a) of the Federal Rules of Civil Procedure when it is necessary to do so ‘to prevent an injustice.’ ” Jones v. Ruiz, 478 Fed.Appx. 834, 835 (5th Cir.2012) (per curiam) (quoting United States v. Flores, 981 F.2d 231, 237 (5th Cir.1993) ). Although Rule 59(a) does not state appropriate grounds for a new trial, “[a] new trial may be appropriate if the verdict is against the weight of the evidence, the amount awarded is excessive, or the trial was unfair or marred by prejudicial error.” Scott v. Monsanto Co., 868 F.2d 786, 789 (5th Cir.1989) (internal citation omitted). “Courts do not grant new trials unless it is reasonably clear that prejudicial error has crept into the record or that substantial justice has not been done, and the burden of showing harmful error rests on the party seeking the new trial.” Sibley v. Lemaire, 184 F.3d 481, 487 (5th Cir.1999).

C. Analysis and Discussion

As stated above, Powertrain makes two arguments in support of its request for a new trial under Rule 59. The Court will analyze each argument in turn.

i. Whether the Court Improperly Excluded Deposition Testimony of Zhao Lei and Zhao Agen

Prior to the commencement of trial in this cause, Ma moved in limine to exclude the introduction of depositions of Zhao Lei and Zhao Agen which were taken during the earlier Honda case. The Court granted Ma's motion in limine and excluded the...