First Act Inc. v. Brook Mays Music Co., Inc.

429 F. Supp. 2d 429, 65 Fed. R. Serv. 3d 74, 2006 U.S. Dist. LEXIS 25936, 2006 WL 1134484
CourtDistrict Court, D. Massachusetts
DecidedApril 26, 2006
DocketCIV.A. 03-12020-EFH
StatusPublished
Cited by9 cases

This text of 429 F. Supp. 2d 429 (First Act Inc. v. Brook Mays Music Co., Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Act Inc. v. Brook Mays Music Co., Inc., 429 F. Supp. 2d 429, 65 Fed. R. Serv. 3d 74, 2006 U.S. Dist. LEXIS 25936, 2006 WL 1134484 (D. Mass. 2006).

Opinion

MEMORANDUM AND ORDER

HARRINGTON, Senior District Judge.

INTRODUCTION

First Act Inc. (“First Act”) manufactures and sells band instruments, including trumpets, flutes, and clarinets. Brook Mays Music Company, Inc. (“Brook Mays”) is a band instrument retailer. The genesis of this case is Brook Mays’ 2003 publication of a document titled “ISO *432 Alert.” First Act argued at trial that Brook Mays’ ISO Alert falsely disparaged the quality of First Act band instruments, and that such disparagement caused significant harm to their sales and reputation. In December, 2005, a jury returned a verdict in favor of First Act in the amount of $20,768,309 for its claims against Brook Mays sounding in false advertising under the Lanham Act, commercial disparagement, and tortious interference with an existing or prospective contractual relationship. This matter is now before the Court on Defendant Brook Mays’ Motion for Judgment Notwithstanding the Verdict, or in the Alternative for a New Trial, and for Remittitur. For the reasons discussed in more detail below, defendant’s motion is granted in part. Defendant’s request for Judgment Notwithstanding the Verdict pursuant to Fed.R.Civ.P. 50 is denied. Defendant’s Motion for a New Trial and Remittitur under Fed.R.Civ.P. 59 is also denied, except that a remittitur is granted with respect to the damages awarded by the jury for harm to and remediation of First Act’s reputation.

DISCUSSION

Of the numerous arguments set forth in defendant’s motion, two bear specific mention and will be discussed herein. First, defendant argues for a new trial on First Act’s commercial disparagement 1 claim because the jury was improperly instructed as to the standard of fault required under that tort. Second, defendant argues that a remittitur is warranted with respect to the damages awarded for restoration of First Act’s reputation. Defendant’s remaining arguments for judgment notwithstanding the verdict and for a new trial find no support in law or in fact, and are hereby dismissed in sum.

I. Jury Instruction on Commercial Disparagement

Brook Mays argues that a new trial is warranted because the jury was improperly instructed as to the standard of fault required for the tort of commercial disparagement. Put simply, Brook Mays contends that commercial disparagement requires a showing of actual malice. Here, the jury was instructed that negligence is sufficient. The standard for a new trial based on an erroneous jury instruction is clear — a new trial is warranted only if the objecting party can show that the instruction in question was “misleading or gave an inadequate understanding of the law.” Steinhilber v. McCarthy, 26 F.Supp.2d 265, 278 (D.Mass.1998) (citations omitted). Even if the objecting party shows the Court misstated the law, a new trial can be granted only if the Court’s error affected the outcome of the trial. Romano v. U-Haul Int’l., 233 F.3d 655, 667 (1st Cir.2000); Allen v. Chance Mfg. Co., Inc., 873 F.2d 465, 469-70 (1st Cir.1989); see also 11 Charles A. Wright & Arthur R. Miller, Federal Practice and Procedure § 2886 (2d ed.1995) (jury instructions reviewed under harmless error standard). As discussed more fully below, Massachusetts law is unsettled with respect to whether commercial disparagement requires negligence or actual malice. Therefore, it is not clear, though it may be possible, that the Court’s negligence instruction misstated the law. Even if the Court did misstate the law, however, the trial record and verdict returned by the jury show that any error was harmless; a *433 new trial on First Act’s commercial disparagement claim is not warranted.

Before analyzing the applicable Massachusetts law, some procedural history is in order. This issue was addressed by the parties in their proposed jury instructions and during oral argument to the Court. Plaintiffs counsel argued for a negligence instruction based primarily on two cases: Flotech, Inc. v. E.I. Du Pont de Nemours Co., 627 F.Supp. 358, 365 (D.Mass.1985) and Bose Corp. v. Consumers Union of United States, Inc., 508 F.Supp. 1249, 1259 (D.Mass.1981). 2 According to Flotech and Bose, the standard of fault for commercial disparagement is determined — as is the case with the closely related tort of defamation 3 — by reference to the plaintiffs status as a “private” versus “public” figure. As the Court stated in Flotech:

Whether a plaintiff is deemed a public or private figure is often crucial. For, if [the plaintiff] is deemed a private rather than a public figure, it may recover by showing [defendant’s] negligence, a lower threshold than ‘actual malice.’ These elements of the First Amendment’s ‘public figure’ doctrine apply to product disparagement actions.

627 F.Supp. at 365 (emphasis added and citations omitted). Based on this language, plaintiff argued that a negligence instruction was appropriate because First Act was a private rather than a public figure. See Bruno & Stillman, Inc. v. Globe Newspaper Co., 633 F.2d 583, 586-92 (1st Cir.1980) (distinguishing private figure corporations versus public figure corporations). Counsel for the defendant argued that actual malice was the appropriate standard regardless of First Act’s status as a private versus public figure. 4 The Court expressed reservations as to defendant’s argument because defendant was able to cite only one case in support of its proposed instruction, DeCosta v. Viacom Int’l, Inc., 981 F.2d 602 (1st Cir.1992), and even though the DeCosta Court *434 referenced “malice” as the appropriate standard in an action for commercial disparagement, it did so only in dicta. See DeCosta, 981 F.2d at 610 (citing Big O Tire Dealers, Inc. v. Goodyear Tire & Rubber Co., 561 F.2d 1365, 1373 (10th Cir.1977) (applying Colorado law)). Believing Flotech and Bose to be more squarely on point with the issues in this lawsuit, the Court ultimately decided that a negligence instruction was appropriate. 5

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429 F. Supp. 2d 429, 65 Fed. R. Serv. 3d 74, 2006 U.S. Dist. LEXIS 25936, 2006 WL 1134484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-act-inc-v-brook-mays-music-co-inc-mad-2006.