Carroll v. Jaques

927 F. Supp. 216, 1996 U.S. Dist. LEXIS 7171, 1996 WL 279161
District Court, E.D. Texas·Decided May 21, 1996·No. 1:95 CV 87·Published·Cited by 4 cases

Opinion

MEMORANDUM OPINION AND ORDER DENYING DEFENDANTS’ RENEWED MOTION FOR JUDGMENT AS A MATTER OF LAW, MOTION FOR NEW TRIAL, AND MOTION TO ALTER OR AMEND THE JUDGMENT

SCHELL, Chief Judge.

Before this court are Defendants’ Renewed Motion for Judgment as a Matter of Law, Motion for New Trial, and Motion to Alter or Amend the Judgment. Plaintiff filed a response. Defendants thereafter filed a Reply and Supplemental Brief in Support of their motions. Plaintiff then filed another response. Upon consideration of the motions, responses, and memoranda of law, this court is of the opinion that Defendants’ motions should be DENIED.

I. BACKGROUND

On October 5, 1994, Plaintiff, Dermot Patrick Carroll (“Carroll”), filed this action in the 172nd Judicial District Court of Jefferson County, Texas. Carroll alleged that Defen *219 dants, Leonard C. Jaques and The Jaques Admiralty Law Firm, P.C. (collectively “Jaques” unless otherwise indicated), committed malpractice under the theories of negligence, gross negligence, fraud, breach of contract, and deceptive trade practices. On February 17, 1995, Defendants removed the action to this court.

On September 15, 1995, this court dismissed Carroll’s legal malpractice claims and Texas Deceptive Trade Practices Act claim because those claims were barred by the statute of limitations. Carroll’s breach of contract claims also were dismissed on limitations grounds because “attorney malpractice claims sound in tort regardless of whether they are framed as tort or contract actions.” American Medical Elecs. v. Korn, 819 S.W.2d 573, 576 (Tex.App. — Dallas 1991, writ denied) (relying on Willis v. Maverick, 760 S.W.2d 642, 644 (Tex.1988)). Only Carroll’s fraud claim remained in this action.

On February 5, 1996, Defendants filed a Motion to Dismiss for Improper Choice of Law; and subsequently, on February 7, 1996, Defendants filed their Rule 12(b)(6) Motion to Dismiss Claims Under Michigan Law. In these motions, Defendants argued that the laws of Michigan should apply, and that Carroll’s exclusive remedy is a malpractice action, which is barred under a Michigan two-year statute of limitations. Defs.’ Br. in Supp. of Mot. to Dismiss at 6. The threshold issue for determination was whether Defendants had shown a true conflict between the laws of Texas (the forum) and Michigan (the foreign state). On February 8, 1996, the court initially determined that Defendants had not carried this burden and that the laws of Texas would apply. But, upon an oral motion, the Defendants later carried their burden of showing that a true conflict of laws existed between the laws of Texas and Michigan with respect to punitive damages. Unlike Texas law, Michigan law does not permit recovery of punitive damages, but only - “exemplary” damages to compensate a plaintiff. Thus, on February 9, 1996, the court ruled that the laws of Michigan would govern this action. Tr. of Hr’g on Pretrial Mots, at 17. Although the laws of Michigan would govern the substantive issues, the court applied Texas statute of limitations. Under the Texas choice-of-law rules by which this court is bound, the general rule is that a Texas court (or a federal court sitting in Texas) will apply its own statute of limitations even though it must apply the substantive law of a foreign state. Ellis v. Great Southwestern Corp., 646 F.2d 1099, 1111 (5th Cir.1981).

On February 12, 1996, this court empaneled a jury in this diversity action. On February 20, 1996, this action came on for trial before a jury. On February 27, 1996, the jury returned a verdict finding that Leonard C. Jaques and The Jaques Admiralty Law Firm, P.C. committed fraud upon Dermot Carroll. The jury awarded Carroll damages in the amount of $5,000,000 ($1,500,000 in actual damages and $3,500,000 in exemplary damages). On March 4, 1996, a judgment in the amount of $5,563,545.51 (including prejudgment interest) was entered against the Defendants.

II. DISCUSSION

A. Motion for Judgment as a Matter of Law

1. Standard

Rule 50 of the Federal Rules of Civil Procedure sets forth the standard for judgment as a matter of law:

If during a trial by jury a party has been fully heard on an issue and there is no legally sufficient evidentiary basis for a reasonable jury to find for that party on that issue, the court may determine the issue against that party and may grant a motion for judgment as a matter of law against that party with respect to a claim or defense that cannot under the controlling law be maintained or defeated without a favorable finding on that issue.

Fed.R.Civ.P. 50(a)(1). A motion for judgment as a matter of law raises the same issues as a motion for summary judgment. “‘The primary difference between the two motions is procedural’---- In essence, though, the inquiry under each is the same: whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party *220 must prevail as a matter of law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52, 106 S.Ct. 2505, 2512, 91 L.Ed.2d 202 (1986) (quoting in part Bill Johnson’s Restaurants, Inc. v. NLRB, 461 U.S. 781, 745 n. 11, 103 S.Ct. 2161, 2171 n. 11, 76 L.Ed.2d 277 (1983)).

A motion for judgment as a matter of law should be granted “[i]f the facts and inferences point so strongly and overwhelmingly in favor of the moving party that the reviewing court believes that reasonable jurors could not have arrived at a contrary verdict____” Resolution Trust Corp. v. Cramer, 6 F.3d 1102, 1109 (5th Cir.1993). In ruling on a motion for judgment as a matter of law, “a court must examine the entire record in the light most favorable to the nonmovant and draw all inferences in that party’s favor.” Becker v. PaineWebber, Inc., 962 F.2d 524, 526 (5th Cir.1992). A court may not weigh the evidence, pass on the credibility of witnesses, or substitute its judgment of facts for that of the jury. Johnson v. Bekins Van Lines Co., 808 F.Supp. 545, 547 (E.D.Tex.1992), aff'd, 995 F.2d 221, cert. denied, 510 U.S. 977, 114 S.Ct. 471, 126 L.Ed.2d 422 (1993). The court now turns to Defendants’ specific arguments raised in their renewed motion for judgment as a matter of law.

2. Sufficiency of the Evidence for Submission to the Jury

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Carroll v. Jaques, 927 F. Supp. 216, 1996 U.S. Dist. LEXIS 7171, 1996 WL 279161 (E.D. Tex. 1996).

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