American Environmental Enterprises, Inc. v. Health Environmental Loss Prevention, Inc. (h.e.l.p.) and the City of Youngstown, Ohio

921 F.2d 276, 1990 U.S. App. LEXIS 25133, 1990 WL 208590
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 17, 1990
Docket89-3590
StatusUnpublished
Cited by1 cases

This text of 921 F.2d 276 (American Environmental Enterprises, Inc. v. Health Environmental Loss Prevention, Inc. (h.e.l.p.) and the City of Youngstown, Ohio) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Environmental Enterprises, Inc. v. Health Environmental Loss Prevention, Inc. (h.e.l.p.) and the City of Youngstown, Ohio, 921 F.2d 276, 1990 U.S. App. LEXIS 25133, 1990 WL 208590 (6th Cir. 1990).

Opinion

921 F.2d 276

Unpublished Disposition
NOTICE: Sixth Circuit Rule 24(c) states that citation of unpublished dispositions is disfavored except for establishing res judicata, estoppel, or the law of the case and requires service of copies of cited unpublished dispositions of the Sixth Circuit.
AMERICAN ENVIRONMENTAL ENTERPRISES, INC., Plaintiff-Appellee,
v.
HEALTH ENVIRONMENTAL LOSS PREVENTION, INC. (H.E.L.P.) and
The City of Youngstown, Ohio, Defendant-Appellant.

No. 89-3590.

United States Court of Appeals, Sixth Circuit.

Dec. 17, 1990.

Before RALPH B. GUY, Jr. and BOGGS, Circuit Judges, and BERTELSMAN, District Judge.*

PER CURIAM.

American Environmental Enterprises, Inc. ("American"), had a contract with the City of Youngstown to remove asbestos from some city property. American thought it deserved additional payment beyond the contract price for the removal of what it called "extra" asbestos. The city refused to pay more, so American walked off the job and sued for breach of contract. The city counterclaimed for breach of contract and a jury found in favor of American on its claim, and against the city on its counterclaim.

The city appeals from these jury verdicts, and appeals from the trial court's denial of its Rule 60(b)(2) motion for a new trial based on the fact that after the trial American's President, Paul Buckley, was indicted and convicted on charges of criminally violating the Clean Air Act because of asbestos abatement procedures he used at another site. For the reasons that follow, we uphold the jury's verdict and affirm the district court's denial of the city's Rule 60(b)(2) motion.

* The contract underlying these proceedings was signed in August 1987. American promised to remove asbestos from a site ("the Avanti site") in Youngstown for $297,000. The city provided American with a sample-based estimate of the total amount of asbestos at the Avanti site. However, this sample turned out to be inaccurate. H.E.L.P., which was acting as a consultant to the city on the Avanti abatement project, discovered additional amounts of asbestos behind a boiler plate at the Avanti site in October 1987.

American estimated that it would cost $125,000 to remove the plate and this additional asbestos, making the contract a losing proposition for American unless the price was renegotiated. The city and American met on November 23 to discuss changing the contract price. The city refused to change the price, contending that the contract American signed obligated it to remove all of the asbestos found at the Avanti site, even if the actual amount differed significantly from the amount estimated by the city. American informed the city that it would halt work and abandon the site if the city did not approve the change in price. The city refused to approve a change, and American walked off the job on November 24.

American brought suit on four claims, including one alleging tortious interference with contract, and brought an action for a declaratory judgment that American could base its bid for the contract on the amounts of asbestos contained in the city's sample. The city counterclaimed, contending that American had breached the contract. They jury ultimately decided two of American's claims and the city's counterclaim. The jury found that the city had breached the contract and American had not. It also found that the city had not tortiously interfered with American's contract with its bonding company.

One of American's witnesses at trial was its President, Paul Buckley. Mr. Buckley testified as an expert on the subject of asbestos abatement methods. The city also had experts testify on this subject, among them the Carano brothers, James and Nicholas. James Carano was President and C.E.O. of H.E.L.P. Final judgment on the jury's verdict was entered on May 31, 1989. Mr. Buckley was indicted for violating the Clean Air Act during work at the LTV Steel Campbell Works site ("LTV site") on September 20, 1989.

The city filed a timely appeal from the court's judgment on June 28, 1989. The city filed its Rule 60(b)(2) motion with the district court on November 1, 1989. This circuit held its briefing schedule in abeyance until the district court ruled on the city's motion. The district court denied the motion on February 16, 1990. The city has not yet filed an appeal from this denial, though its brief on this appeal, containing an argument contesting the court's denial of the Rule 60(b)(2) motion, was filed on April 25, 1990.

II

Two of the city's contentions, those on American's suit and the city's counterclaims, are intertwined. Both parties agree that American breached the contract by stopping work, but was justified if the city breached the contract when it refused to renegotiate the contract price. We shall therefore examine both appeals together.

We begin by noting that we do not, strictly speaking, review the verdicts of juries. "Our review of the sufficiency of the evidence is by a review of a trial judge's rulings on motions for directed verdict or JNOV." Moran v. Johns-Manville Corp., 691 F.2d 811, 813 (6th Cir.1982). Accord Young v. Langley, 793 F.2d 792 (6th Cir.), cert. denied, 479 U.S. 950 (1986). As the city never moved for either a directed verdict or JNOV at trial, and does not offer any explanation for its failure on appeal, we are without jurisdiction to review the jury's findings.

We would, however, affirm the jury's verdicts if we did have jurisdiction. The key question the jury had to resolve was whether the contract was ambiguous with respect to American's ability to rely upon the amounts contained in the city's sample when preparing and making its bid. At trial, American introduced much evidence that the custom in the asbestos abatement industry was that such preliminary samples could be relied upon, and that any subsequent discoveries requiring more work than initially described would lead to renegotiation of the contract price. If the contract was ambiguous with respect to American's ability to rely on the sample, then this evidence was admissible and properly could be considered by the jury. This court cannot overturn a jury verdict without finding that no reasonable jury could have reached the verdict reached by that jury. Moran, 691 F.2d at 813. This rule is doubly important in this diversity case, where we must follow Ohio law. Ohio prohibits a jury verdict from being overturned on appeal if sufficient evidence exists that reasonable minds could differ over the verdict. O'Day v. Webb, 29 Ohio St.2d 215, 280 N.E.2d 896 (1972). Thus, the mere existence of American's evidence requires us to affirm the jury's verdict, provided that the contract is ambiguous as a matter of law.

We would be compelled to uphold the jury's verdict because the contract is ambiguous as a matter of law. First, the district court clearly charged the jury that the contract was ambiguous, and that therefore evidence of industry custom was admissible.

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921 F.2d 276, 1990 U.S. App. LEXIS 25133, 1990 WL 208590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-environmental-enterprises-inc-v-health-environmental-loss-ca6-1990.