Children's Broadcasting Corp. v. Walt Disney Co.

357 F.3d 860
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 26, 2004
Docket02-3161, 02-3310
StatusPublished
Cited by1 cases

This text of 357 F.3d 860 (Children's Broadcasting Corp. v. Walt Disney Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Children's Broadcasting Corp. v. Walt Disney Co., 357 F.3d 860 (8th Cir. 2004).

Opinion

RILEY, Circuit Judge.

Children’s Broadcasting Company (Children’s) sued ABC Radio Networks, Inc. (ABC Radio) and The Walt Disney Company (Disney) for breach of contractual duties to sell advertising and to maintain confidentiality and for misappropriation of a trade secret. The case was tried to a jury, which awarded Children’s $1.5 million for breach of contract, and $8 million for breach of the contractual duty of confidentiality and misappropriation of the trade secret. ABC Radio and Disney appeal (1) the district court’s 1 denial of their motion for judgment as a matter of law or, alternatively, for new trial; and (2) the award of prejudgment interest to Children’s. Children’s cross appeals, claiming the district court erred (1) in narrowing the scope of Children’s confidentiality claim solely to the misappropriated trade secret; and (2) by not awarding Children’s exemplary damages and attorney fees. We affirm.

I. BACKGROUND

This case, involving a letter agreement between Children’s and ABC Radio (ABC *863 Radio was later acquired by Disney), is before our court for a second time. In the previous appeal, our court held the district court erred in granting judgment as a matter of law in favor of ABC Radio and Disney on the issue of causation. Children’s Broad. Corp. v. The Walt Disney Co., 245 F.3d 1008, 1013, 1016 (8th Cir.2001). We determined the evidence was sufficient to support the jury’s finding that the breach of contract and the misappropriation of an advertiser list caused harm to Children’s. Id. at 1016. We also ruled evidence was presented from which the jury could approximate Children’s damages. Id. at 1017. We affirmed the district court’s conditional grant of a new trial, because the district court did not abuse its discretion in finding the testimony of one of Children’s experts should have been excluded. Id. at 1018-19. We remanded the case for a new trial on the limited issue of damages. Id. at 1022.

Our previous decision thoroughly discusses the underlying facts of this case, and we refer our reader to that decision for the details. Hereafter, we discuss only the facts most pertinent to this second appeal.

At the retrial on damages, Children’s presented evidence ABC Radio and Disney had “accelerated” their entry into the children’s radio market by using information about advertising and marketing they obtained from Children’s and its children’s radio network, Radio AAHS. The jury awarded Children’s (1) $1.5 million on the breach of contract claim for ABC Radio’s failure to make reasonable efforts to sell advertising and to develop affiliates for Children’s radio network, i.e., Radio AAHS; and (2) $8 million for breach of the contractual duty of confidentiality and the misappropriation of information about Children’s advertisers and potential advertisers contained in a document identified as PX217. The district court denied ABC Radio’s and Disney’s motion for judgment as a matter of law on the $8 million award or, alternatively, for a new trial. Children’s moved for entry of judgment to include prejudgment interest and exemplary damages. The district court awarded Children’s prejudgment interest totaling $2,567,082.19, and denied Children’s request for exemplary damages and attorney fees. The district court entered a $9.5 million judgment for Children’s with $2,567,082.19 in interest.

II. DISCUSSION

A. Judgment as a Matter of Law

1. Standard of Review

ABC Radio and Disney argue the district court erred in denying their post-trial motion for judgment as a matter of law. “We review de novo the district court’s denial of [a] post-verdict motion for judgment as a matter of law.” Racicky v. Farmland Indus., Inc., 328 F.3d 389, 393 (8th Cir.2003). We are required to decide whether or not the record contains evidence sufficient to support the jury’s verdict. Id. In doing so, “we must examine the sufficiency of the evidence in the light most favorable to [Children’s] and view all inferences in [its] favor.” Id. (citation omitted). “Judgment as a matter of law is appropriate only when all of the evidence points one way and is susceptible of no reasonable inference sustaining [Children’s] position.” Id. (citation omitted).

2. Evidence Supporting Verdict

ABC Radio and Disney argue the evidence Children’s presented regarding damages due to misappropriation of PX217 does not support the verdict. ABC Radio and Disney contend (1) the theories of Dr. Jonathan Putnam (Dr. Putnam), the damages expert witness for Children’s, were unfounded and speculative; (2) Dr. Put *864 nam considered evidence outside PX217 in reaching his conclusions; and (3) Dr. Putnam could not identify the proper “acceleration” intervals of ABC Radio’s and Disney’s entry into the market. ABC Radio and Disney contend they provided the only competent evidence regarding any acceleration interval. ABC Radio and Disney argue Children’s damages were improperly based upon projected profits rather than actual results. Finally, ABC Radio and Disney assert Children’s did not show evidence of any actual use of PX217.

a. Dr. Putnam’s Testimony

“We review under an abuse of discretion standard a district court’s ruling admitting expert witness testimony under Rule 702.” Bonner v. ISP Techs., Inc., 259 F.3d 924, 928 (8th Cir.2001). “Where the district court errs in admitting evidence, we will only grant a new trial or set aside a verdict if there is a clear and prejudicial abuse of discretion.” Lovett ex rel. Lovett v. Union Pac. R.R. Co., 201 F.3d 1074, 1080 (8th Cir.2000).

Dr. Putnam offered a theory regarding ABC Radio’s and Disney’s accelerated entry into children’s radio. The jury could have used all or some or none of Dr. Putnam’s various acceleration intervals (eleven months to two years) as benchmarks to calculate the appropriate amount of damages, depending on the jury’s findings regarding the amount of acceleration resulting from ABC Radio’s and Disney’s conduct. In calculating the various intervals, Dr. Putnam considered evidence, including two ABC Radio documents, regarding the length of time it would take to launch a children’s radio network. Dr. Putnam accepted Children’s testimony that Children’s took about 3 years to acquire the information in PX217. Dr.

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357 F.3d 860, Counsel Stack Legal Research, https://law.counselstack.com/opinion/childrens-broadcasting-corp-v-walt-disney-co-ca8-2004.