Springfield Crusher, Inc. v. Transcontinental Ins. Co., 15847.

• Decision Date: 01 February 1967
• Docket Number: No. 15847.,15847.
• Citation: 372 F.2d 125
• Parties: SPRINGFIELD CRUSHER, INC. v. TRANSCONTINENTAL INSURANCE COMPANY, Appellant.
• Court: U.S. Court of Appeals — Third Circuit

372 F.2d 125 (1967)

SPRINGFIELD CRUSHER, INC. v. TRANSCONTINENTAL INSURANCE COMPANY, Appellant.

No. 15847.

United States Court of Appeals Third Circuit.

Argued September 26, 1966.

Decided February 1, 1967.

Rehearing Denied March 1, 1967.

John F. James, Christiansted, St. Croix, V. I., for appellant.

John D. Marsh, Christiansted, St. Croix, V. I. (Young, Isherwood & Marsh, Christiansted, St. Croix, V. I., on the brief), for appellee.

Before KALODNER, HASTIE and SMITH, Circuit Judges.

OPINION OF THE COURT

WILLIAM F. SMITH, Circuit Judge.

The claim for damages in this action is based on the alleged breach of an indemnity policy issued by the defendant. The plaintiff sought to recover for the loss allegedly sustained as the result of damage to a piece of loading equipment admittedly covered by the policy. At the trial there was no serious dispute as to the defendant's liability and the principal question was one of damages. At the close of all the evidence the defendant moved the court to direct a verdict in favor of the plaintiff in the amount of $9,000. This somewhat unusual motion was consistent with the defendant's theory that under the policy the amount recoverable was limited to the cost of repairs. The motion was denied and the case was submitted to the jury, which returned a verdict in favor of the plaintiff, assessing the damages at $25,700 plus interest, the limit of liability under the policy.

The defendant moved for judgment notwithstanding the verdict and, in the alternative, for a new trial; the new trial was urged on the ground that the verdict was against the weight of the evidence. The motion was denied and this appeal followed. Since the evidence in the record was clearly sufficient to have warranted the submission of the case to the jury, the denial of the motion for judgment notwithstanding the verdict was proper. The remaining question for decision is whether the court below erred in its denial of the motion for a new trial.

We recognize, as we must, that a motion for a new trial on the ground herein urged by the defendant is addressed to the sound discretion of the trial judge and its denial is not ordinarily reviewable in the absence of a showing of exceptional circumstances such as an abuse of discretion. Silverii v. Kramer, 314 F.2d 407, 413 (3rd Cir. 1963); Eisenberg v. Smith, 263 F.2d 827, 829 (3rd Cir. 1959), cert. den. 360 U.S. 918, 79 S.Ct. 1436, 3 L.Ed.2d 1534; 6 Moore, Federal Practice, ¶ 5908, p. 3820 (2d Ed.1953). There is an abuse of discretion, within the meaning of the rule, when the action of the trial judge is clearly contrary to reason and not justified by the evidence. Measured by this standard the denial of the motion for a new trial in the instant case was an abuse of discretion.

The insured equipment was purchased by the plaintiff on April 13, 1964, and thereafter was in continuous use until August 25 of the same year, when it was seriously damaged by a falling boulder. At the time of purchase the equipment had a reasonable value equal to the purchase price of $25,800. There was a...