Bandana Trading Co., Inc. v. Quality Infusion Care, Inc.

164 Cal. App. 4th 1440, 80 Cal. Rptr. 3d 495, 2008 Cal. App. LEXIS 1114
CourtCalifornia Court of Appeal
DecidedJuly 21, 2008
DocketB196119
StatusPublished
Cited by10 cases

This text of 164 Cal. App. 4th 1440 (Bandana Trading Co., Inc. v. Quality Infusion Care, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bandana Trading Co., Inc. v. Quality Infusion Care, Inc., 164 Cal. App. 4th 1440, 80 Cal. Rptr. 3d 495, 2008 Cal. App. LEXIS 1114 (Cal. Ct. App. 2008).

Opinion

Opinion

YEGAN, J.

Jurors are routinely admonished not to form or express an opinion on the case until it is finally submitted to them. However, jurors often form opinions, hopefully tentative, concerning the credibility of witnesses as they are listening to them. This is a natural response consistent with processing information. With such a tentative opinion in mind, a juror should not demonstrably agree with a statement of law argued by counsel premised upon the credibility of a witness. Depending on how aggravated such conduct may be, it may rise to the level of prejudicial misconduct. Here, we conclude that there was no prejudicial misconduct.

During argument, counsel for respondent told the jury it could reject the entire testimony of a witness if it determined that the witness had been willfully false in one material aspect thereof. (See, e.g., BAJI No. 2.22.) 1 The juror expressed her agreement by clapping her hands. It is not misconduct for a juror to agree with a black-letter principle of law. Jurors are supposed to accept the law as given to them by the trial court. But, given the context, it *1443 was apparent that the juror tentatively believed that one or more of appellant’s witnesses had been less than candid. This must have left appellant’s counsel with a sinking feeling. Given the juror’s explanation and the trial court’s expressed appraisal of this conduct, we cannot conclude that the juror should have been excused from the jury.

Quality Infusion Care, Inc. (QIC or appellant), appeals from the judgment, after a jury trial, in favor of respondent Bandana Trading Co., Inc., in this action for breach of contract. QIC contends the trial court erred when it refused to remove a juror for misconduct after the juror applauded by clapping her hands during respondent’s rebuttal argument. It further contends it was entitled to a new trial because the same juror committed misconduct during deliberations when she injected technical knowledge into the deliberations, intimidated other jurors and rushed them into a verdict. We affirm.

Facts and Procedural History

Appellant purchased large quantities of a prescription medication called Gamunex from respondent, Bandana Trading Inc., which does business under the name CT International. Gamunex is a blood plasma derivative that is used to treat immune deficiencies. Shortages in the plasma supply create shortages in the availability of Gamunex. Appellant began buying Gamunex from respondent in January 2004. It placed its last order in February 2005. Until January 2005, respondent sold Gamunex to appellant on “net 15 days” terms, meaning that payment was due within 15 days of shipment. In practice, respondent allowed its customers an additional 30-day grace period, so that it expected each invoice to be paid in full within 45 days of shipment. Appellant often paid within the 45-day period; it also paid late on several occasions. When appellant had an outstanding invoice that was older than 45 days, respondent would place it on “credit hold,” refusing to ship more medication to appellant until the invoice was paid.

On January 21, 2005, appellant informed respondent that it had acquired a large, new client. Serving the new client would require appellant to double its orders of Gamunex. Because the new client paid appellant on a 90-day cycle, appellant asked respondent to agree to 90-day payment terms. Respondent initially offered 60-day terms, which appellant accepted. Appellant sent a check by overnight delivery for its outstanding balance of $77,000 and received a new shipment of Gamunex.

Between February 1, 2005, and February 22, 2005, appellant placed seven orders for Gamunex, creating an outstanding balance of $244,132.76. This was the largest outstanding balance appellant had ever owed to respondent. At the same time, a shortage of Gamunex developed. Respondent received *1444 limited shipments from the manufacturer and decided to give preference to customers that paid their invoices within 15 days. Respondent informed appellant of the new arrangement. None of appellant’s outstanding invoices were more than 45 days old. Appellant did not pay them.

Appellant placed its next order in early March. Respondent refused to ship any amount of Gamunex until appellant paid its entire outstanding balance. Appellant offered to send one-half of the balance due. Respondent agreed to accept that payment and promised to fill appellant’s order immediately after it received the check. Appellant did not send the check. Respondent did not ship any additional Gamunex to appellant. Appellant obtained a new supplier of the drug. It did not pay respondent its outstanding balance of $244,132.76. Within a few months, appellant’s new client began to refer patients elsewhere for their supply of Gamunex.

Respondent sued appellant for breach of contract, to recover the outstanding balance. Appellant cross-complained for interference with prospective business advantage. It alleged that it was forced to find a new supplier of Gamunex because respondent abruptly changed its credit terms and refused to ship Gamunex before it received payment on invoices that were not yet 45 days old. The new supplier could not provide enough product to the new chent’s patients, so appellant lost that account and with it, $1.5 million in profit.

After a three-day jury trial, counsel presented their closing arguments. During his rebuttal argument, respondent’s trial counsel argued that appellant’s witnesses were lying about many issues, including the reason it lost the new account. Then counsel read to the jury the standard instruction that, “ ‘if you decide that a witness has deliberately testified untruthfully about something important, you may choose not to believe anything that witness said.’ ” At that point, Juror No. 2 applauded by clapping her hands. Respondent’s counsel continued his argument without commenting on the juror’s applause.

Following a lunch break the trial court and counsel interviewed each juror separately, in an effort to determine the impact of Juror No. 2’s applause. When questioned about it, Juror No. 2 explained, “I was pleased with the statement that was read whereas if it was proved that somebody lied on the stand that all of their testimony could be dismissed.” Each of the remaining jurors remembered the incident; no one stated that it would impact their impartiality. Jurors found the applause odd, embarrassing or an expression of stress. None could recall the statement that prompted or immediately preceded the clapping.

The trial court declined to remove Juror No. 2. It noted that the conduct was unusual but “no grounds for substitution” because, it concluded, the *1445 incident did not cause any of the jurors to be “influenced or prejudiced.” It further found “that the incident in and of itself is not of such a magnitude that it would require automatic removal.”

Using a special verdict form that addressed eight causes of action and included 48 separate questions, the jury returned special verdict in favor of respondent and awarded damages of $311,238.43. The trial court inquired whether any of the verdicts had been reached by less than a unanimous vote.

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Cite This Page — Counsel Stack

Bluebook (online)
164 Cal. App. 4th 1440, 80 Cal. Rptr. 3d 495, 2008 Cal. App. LEXIS 1114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bandana-trading-co-inc-v-quality-infusion-care-inc-calctapp-2008.