Chung v. Kaonohi Center Co.

618 P.2d 283, 62 Haw. 594, 1980 Haw. LEXIS 228
CourtHawaii Supreme Court
DecidedOctober 8, 1980
DocketNO. 6190
StatusPublished
Cited by53 cases

This text of 618 P.2d 283 (Chung v. Kaonohi Center Co.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chung v. Kaonohi Center Co., 618 P.2d 283, 62 Haw. 594, 1980 Haw. LEXIS 228 (haw 1980).

Opinion

*596 OPINION OF THE COURT BY

RICHARDSON, C.J.

This case arises out of a contract to lease conce'ssion space for a fast-food Chinese kitchen in the Pearlridge Mall. Plaintiffs-appellees, Farrant Chung, Jordon Y. S. Lum, and J & C Company, a partnership consisting of Chung and Lum, brought a successful breach of contract action in the circuit court of the first circuit against defendants-appellants, Kao-nohi Center Company, a Hawaii general partnership, Sheldon M. Gordon and E. Phillip Lyon, individual general partners, and Pearlridge Mall-joint venture 315068, Ed Brennan, Sheldon M. Gordon, E. Phillip Lyon, John Fujieki, and Northwestern Mutual Life Insurance Company, a Wisconsin corporation, partners and joint venturers. 1 We affirm.

In September, 1971, plaintiffs negotiated with William Prosser, defendants’ agent, for a ten-year lease on a Chinese fast-food outlet as one component of an international kitchen to be constructed by defendants at the Pearlridge Mall. At that time, plaintiff Chung was a stockbroker and plaintiff Lum owned and operated the House of Dragon, a Chinese restaurant in the Pearl City Shopping Center. 2

As a result of the negotiations, a contract to lease the Chinese kitchen was executed on January 17, 1972. On January 20, 1972, plaintiffs paid defendants a $1,666 deposit *597 on the lease. 3 In anticipation of operating the Chinese kitchen, plaintiffs arranged for financing, ordered equipment and furnishings, hired chefs and workers, advertised in the yellow pages of the telephone book for the to-be-built kitchen, and incurred other expenses.

Plaintiffs were in frequent contact with defendants after the lease was signed and the record shows voluminous correspondence between the parties concerning the design and operation of the fast-food Chinese kitchen. Whenever plaintiffs inquired about an opening date, they‘were to'ld to be patient and were assured that they would be notified as soon as a firm date was set. During this period, defendants were negotiating with other parties about leasing the Chinese kitchen. Defendants had given a right of first refusal to a Ms. Liza Chong and were also negotiating with a Mr. Sergio Battistetti, whose partnership eventually obtained the lease on the entire international kitchen operation. Plaintiffs were never informed of these other negotiations. In fact, when confronted with a newspaper article naming Battistetti as the lessee of the international kitchen, Prosser denied the report.

In early June 1973, Prosser sent a letter to plaintiffs informing them that the landlords of Pearlridge Shopping Center had decided not to pursue plaintiffs’ lease of the Chinese kitchen. A check for $1,666, the amount of plaintiffs’ deposit, was enclosed.

In the trial court, plaintiffs sought specific performance of the lease agreement, contract damages including damages for emotional distress and loss of future profits, and punitive damages for fraudulent, malicious and intentional misrepresentation and acts. The trial judge denied plaintiffs’ request for an instruction on punitive damages, 4 but allowed instructions on damages for emotional distress and lost profits. The jury returned a special verdict awarding $50,000 for emo *598 tional distress and $175,000 for lost profits. Defendants then moved for judgment notwithstanding the verdict or, in the alternative, for a new trial. The motion was denied and this appeal followed.

On appeal, appellants do not challenge the jury’s finding with respect to liability. With one exception, this appeal is premised entirely upon the jury’s award of $225,000 in contract damages. The issues which appellants raise and the order in which they will be discussed are:

L Whether the trial court erred in denying defendants’ motion for a mistrial, which was based upon testimony by plaintiff Lum that his wife had suffered miscarriages as a result of the contract breach.
II. Whether the trial court erred in giving a jury instruction allowing damages for emotional distress for breach of a commercial contract.
III. Whether the trial court erred in giving a jury instruction allowing damages for loss of anticipated profits in an unestablished business.
IV. Whether the trial court erred in submitting to the jury a special verdict form, which contained spaces for damages for emotional distress and lost profits.

I. MOTION FOR MISTRIAL.

We first consider appellants’ contention that a mistrial should have been declared because of certain testimony by plaintiff Lum. The testimony was as follows:

Q. [By Mr. Kim, plaintiffs’ attorney]: Now, how about your wife? How your wife feel this time?
A. My wife?
Q. Uh-huh.
A. That time she worry too much and she also scold me, too. “Why they do that? You do anything wrong?” She asked me. So my wife, I think, two times miscarry. She go operation hospital last year. They cancel my lease.
MR. KIEFER [defendants’ attorney]: Your Honor, I’m honestly going to have to move to strike that. This *599 man can’t give a medical opinion as to the cause of the miscarriage.
THE COURT: Objection sustained. Motion granted. Jury is instructed to disregard the last statement made by the witness.

Appellants argue that Mr. Lum’s testimony was so inflammatory that the instruction to disregard it could not cure its detrimental effect.

When a court has admonished a jury to disregard an improper statement, the ordinary presumption is that the jury will do so. State v. Cavness, 46 Haw. 470, 473, 381 P.2d 685, 686-87 (1963); State v. Lenox, 250 Ind. 482, 237 N.E.2d 248 (1968). See also Territory v. Goto, 27 Haw. 65, 97 (1923); Saiki v. Lee Sing, 27 Haw. 399, 414 (1923); Oltmans v. Orthopaedic and Fracture Clinic, PA., _ Minn. _, 278 N.W.2d 538 (1979); Apodaca v. Miller, 79 N.M. 160, 441 P.2d 200 (1968). However, this court has held that when improper testimony is prejudicial to the opposing party, the ordinary presumption prevails “only if there is a reasonable certainty that the impression upon the jury could be or was dispelled by the court’s admonition.” Young v. Price, 48 Haw. 22, 27, 395 P.2d 365, 368 (1964). See also Territory v. Corum, 34 Haw. 167, 184-85 (1937). Appellants contend that the facts of this case are similar to those of Young v. Price and that the trial court should have granted their motion for mistrial. We disagree.

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Bluebook (online)
618 P.2d 283, 62 Haw. 594, 1980 Haw. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chung-v-kaonohi-center-co-haw-1980.