Edmondson v. American Motorcycle Ass'n, Inc.

54 F. Supp. 2d 544, 1999 U.S. Dist. LEXIS 9620, 1999 WL 428410
CourtDistrict Court, W.D. North Carolina
DecidedFebruary 10, 1999
DocketCIV. 1:96CV235
StatusPublished

This text of 54 F. Supp. 2d 544 (Edmondson v. American Motorcycle Ass'n, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edmondson v. American Motorcycle Ass'n, Inc., 54 F. Supp. 2d 544, 1999 U.S. Dist. LEXIS 9620, 1999 WL 428410 (W.D.N.C. 1999).

Opinion

MEMORANDUM AND ORDER

THORNBURG, District Judge.

THIS MATTER is before the Court on the Defendants’ post-trial motions for judgment as a matter of law or, in the alternative, for a new trial or remittur. The Plaintiff opposes the motions which, for the reasons stated herein, are denied.

I. PROCEDURAL BACKGROUND

After a six day trial, the jury found the Defendants converted a mailing list owned by the Plaintiff, wrongfully interfered with Plaintiffs contractual rights in 1995, converted business assets brought to a 1994 joint venture, and breached their fiduciary duty to the Plaintiff. The jury also answered issues concerning the Plaintiffs claim for unfair competition in his favor. The Court subsequently found the conduct stated in the issues constituted unfair competition in violation of North Carolina law. The jury awarded Plaintiff punitive damages of $1 million, but he elected to have his damages trebled pursuant N.C. Gen. Stat. § 75, et seq. Judgment was entered on December 30, 1998, for $2,790,000 in favor of the Plaintiff.

II. DISCUSSION

A. The Standards of Review.

Judgment as a matter of law is proper “when, without weighing the credibility of the evidence, there can be but one reasonable conclusion as to the proper judgment.” In reviewing the district court’s decision, we consider the evidence in the light most favorable to the nonmovant to determine whether the evidence presented at trial was sufficient to allow a reasonable jury to render a verdict in the nonmovant’s favor.

Princess Cruises, Inc. v. General Electric Co., 148 F.3d 828, 831 (4th Cir.), cert. denied, — U.S. --, 119 S.Ct. 444, 142 L.Ed.2d 399 (1998) (citations omitted). In making that assessment, all reasonable inferences are given the nonmovant and no decision may be based on materially contradictory evidence. Al-Zubaidi v. Ijaz, 917 F.2d 1347, 1348 (4th Cir.1990), cert. denied, 499 U.S. 960, 111 S.Ct. 1583, 113 L.Ed.2d 648 (1991).

On review of a motion for new trial, we are permitted to weigh the evidence and consider the credibility of witnesses. A new trial will be granted if “(1) the verdict is against the clear weight of the evidence, or (2) is based upon evidence which is false, or (3) will result in a miscarriage of justice, even though there may be substantial evidence which would prevent the direction of a verdict.”

*547 Cline v. Wal-Mart Stores, Inc., 144 F.3d 294, 301 (4th Cir.1998) (quoting Atlas Food Sys. & Servs., Inc. v. Crane Nat'l Vendors, Inc., 99 F.3d 587, 594 (4th Cir.1996)).

The standard of review for allegedly inconsistent verdicts is well established. When the use of a special verdict form leads to apparently conflicting jury findings, the court has a duty under the seventh amendment to harmonize the answers, if it is possible to do so under a fair reading of them. The Supreme Court has stated: “We must therefore attempt to reconcile the jury’s findings, by exegesis if necessary, ... before we are free to disregard the jury’s verdict and remand the case for a new trial.” In attempting to reconcile special verdicts, a court should look beyond the face of the interrogatories tó the court’s instructions.

Gosnell v. Sea-Land Service, Inc., 782 F.2d 464, 466-67 (4th Cir.1986) (quoting Gallick v. B & O R.R. Co., 372 U.S. 108, 119, 83 S.Ct. 659, 9 L.Ed.2d 618 (1963)) (other citations omitted).

“ ‘[Jjury determinations of factual matters such as ... the amount of compensatory damages will be reviewed ... by determining whether the jury’s verdict is against the weight of the evidence or based on evidence which is false.’ ” Cline, 144 F.3d at 305 (quoting Atlas Food Sys., 99 F.3d at 594).

B. Plaintiffs cause of action for conversion of the mailing list.

Plaintiffs first cause of action was for conversion of a mailing list which he had developed in the context of his business, Championship Cup Series (CCS). This list contained not only past participants in races sponsored by CCS but potential participants in future events, including amateur racers who might become professional. Defendants argue the complaint alleged conversion of a trade secret in the form of a mailing list. However, they complain, the jury was never instructed on the North Carolina law of trade secrets. 1

In the first claim for relief alleged in the Plaintiffs complaint, the mailing list was described as both a business asset and a trade secret under North Carolina law. However, the cause of action was based on conversion of the business asset which took the form of the mailing list; the claim was not based on conversion of a trade secret. Complaint, at H’s 53-55 (“The copying and use of the Edmondson Mailing List by the Defendant AMA constitutes a conversion of a business asset of the Plaintiff. The use of the Edmondson Mailing List by Defendant Paradama for the purposes of supporting its races constitutes a further conversion of a business asset of the Plaintiff. As a proximate result of the wrongful actions of the Defendants, Plaintiff has sustained damages in an amount in excess of $10,000 consisting of the value of the asset so converted, and the monetary value of the competitive advantage lost by the obtaining of this asset by a competitor of Plaintiff, and the value of the benefit to the Defendants in obtaining said asset without cost or effort in the development *548 of the same.”) (emphasis added). At no point does the complaint seek relief for conversion of a trade secret.

Moreover, the evidence at trial related to efforts taken by the Defendants to obtain the list. Roy Jansen, AMA’s director of competition, testified by video deposition that without the mailing list, AMA would have to start from “Square One.” As a result, an AMA official who worked at the CCS offices was to obtain the information, including the name of amateur racers, by downloading the list from the Plaintiffs field computer. And, the Defendants finally obtained the list when the Plaintiff turned over a set of mailing labels with the understanding the labels would not be duplicated. The labels, obviously, were the mailing list. Plaintiff moved at the close of his evidence to conform his pleadings to the evidence produced at trial; a motion which was granted. The issue thus became whether he had proved evidence that the Defendants converted the mailing list, not a trade secret. The jury, which was instructed on the law of conversion, found first, that the Plaintiff owned a business asset called a mailing list and second, that the list was converted by the Defendants.

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Bluebook (online)
54 F. Supp. 2d 544, 1999 U.S. Dist. LEXIS 9620, 1999 WL 428410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edmondson-v-american-motorcycle-assn-inc-ncwd-1999.