Fudali v. Pivotal Corp.

623 F. Supp. 2d 11, 2008 U.S. Dist. LEXIS 108912, 2008 WL 6190343
CourtDistrict Court, District of Columbia
DecidedNovember 10, 2008
DocketCivil Action 03-1460 (JMF)
StatusPublished
Cited by5 cases

This text of 623 F. Supp. 2d 11 (Fudali v. Pivotal Corp.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fudali v. Pivotal Corp., 623 F. Supp. 2d 11, 2008 U.S. Dist. LEXIS 108912, 2008 WL 6190343 (D.D.C. 2008).

Opinion

MEMORANDUM OPINION

JOHN M. FACCIOLA, United States Magistrate Judge.

A jury trial in this case began on October 22, 2007, and concluded on October 26, 2007, with a verdict favorable to the plaintiff. The parties dispute the amount of damages that should flow from the jury’s verdict, and have submitted briefs in support of their respective positions. See, e.g., Plaintiffs Statement of Damages Calculation (“Calc.”); Defendant Pivotal Corporation’s Response to Plaintiff Marjorie Fudali’s Statement of Damages Calculation (“Opp.”); Plaintiff Marjorie Fudali’s Response to Defendant Pivotal Corporation’s Response to Plaintiff Marjorie Fudali’s Statement of Damages Calculation (“Reply”). A hearing was held on May 12, 2008, and the Court now turns to the issues that separate the parties.

I. Rule 50

At the close of the plaintiffs case in chief, and again before this case was sub *13 mitted to the jury, Pivotal moved for judgment as a matter of law on two issues: (1) whether Pivotal’s agreement with Syngenta contained extended payment terms, and (2) whether plaintiffs recovery was limited to commissions based on revenue from licenses and 12 months of maintenance contracts. The Court twice denied defendant’s motions so that these issues would be submitted to the jury for its consideration. The Court noted that defendant was free to move to set aside the verdict should the verdict be unfavorable to its position.

In its reply to plaintiffs damages calculation, defendant seeks to renew its Rule 50 motion. However, this is not an appropriate procedural posture to challenge the jury’s verdict. Instead, defendant should renew its motion within 10 days of the entry of judgment, which has not yet occurred. See Fed. R. Civ. P. 50(b). As these issues are not ripe for decision, I will reserve judgment on them until such time as a motion is properly filed.

II. Contractual Issues

A. OEM Royalties

The defendant challenges the plaintiffs inclusion of [REDACTED] in OEM royalties in the calculation of commissionable revenue because “Pivotal earned nothing from these amounts.” Opp. at 10. Pivotal has described OEM royalties as:

amounts that Pivotal must pay to other companies who manufacture software that Pivotal uses in implementing its software for customers. These funds thus effectively pass through Pivotal from Pivotal’s customers to the OEM, with Pivotal making no money on these royalties.

PI. Exh. 39 1 at 6; see also Opp. at 2 (“Pivotal was obligated to pay [REDACTED] to third-parties for OEM royalties for other software included in the software Pivotal was selling to Syngenta.”).

The plaintiff argues in response that Jim Warden testified that OEM royalties were not ordinarily deducted from commission payments, and that no evidence was offered by the defendant to contradict that testimony. Reply at 5. Documentary evidence was introduced to support defendant’s argument, however. First, Paragraph 6.6 of the Incentive Compensation Plan FY2002 states that “commissions on any sale will be calculated net of any OEM Fees Pivotal must pay with respect to that sale.” PI. Exh. 4 ¶ 6.6. Second, the “Syngenta Commission Calculation Worksheet” describes in detail the OEM royalties to be deducted from the Syngenta deal. PI. Exh. 31. In response, the plaintiff points to the Olsen memorandum, 2 entitled “Revenue Recognition on Syngenta Contract,” as evidence that the OEM royalties were never paid. PL Exh. 40. But the Olsen memo, as the title indicates, focuses on revenue recognition; Paragraph 6.6 of the Incentive Compensation Plan FY2002 indicates that this amount differs from the amount of a sale that is commissionable. Pl. Exh. 4 at ¶ 6.6; see also id. at ¶ 6.2(c) (commission based on “commissionable fees”).

To the extent that this question requires a weighing of competing evidence and a finding of fact, the Court notes that the plaintiff did not request in her proposed verdict form that the jury make that determination, Verdict Form [# 99], and no *14 objection was raised by her to the final verdict form’s silence as to OEM interest. Verdict Form [# 102]; Transcript, Oct. 24, 2007; see also Fed. R. Civ. P. 49(a)(3) (“A party waives the right to a jury trial on any issue of fact raised by the pleadings or evidence but not submitted to the jury unless, before the jury retires, the party demands its submission to the jury.”). Nor did she raise an objection to the jury instructions, which were similarly silent in regard to OEM royalties. Jury Instructions [# 104]; see also Fed. R. Civ. P. 51(d) (party cannot assign as error a failure to give an instruction unless that instruction was requested by the party). Because plaintiff did not demand that the issue of OEM royalties be submitted to the jury, she has waived her right to a jury determination on that issue, and the Court is permitted to make a factual finding. Fed. R. Civ. P. 49(a)(3) (“If the party does not demand submission, the court may make a finding on the issue.”). Based on the evidence, I find that OEM royalties in the amount of [REDACTED] were paid by Pivotal and should be excluded in the calculation of the plaintiffs final judgment.

B. Pre-Existing Maintenance Obligations

Defendant also challenges the plaintiffs inclusion of [REDACTED] in pre-existing maintenance obligations in her damages calculation. Opp. at 11. Defendant notes that the Global Agreement between Pivotal and Syngenta states “the parties acknowledge and agree that the sum of [REDACTED] applies to maintenance and support services for the Existing Syngenta (and Syngenta Entities) Installed and Purchased Software Base for the period to 31/3/04.” PI. Exh. 33 at 32. Plaintiff has not offered any evidence to contradict the Global Agreement’s assertion that this portion of the maintenance charges billed to Syngenta were attributable to other previous sales. Instead, plaintiff argues that Pivotal did not deduct this figure from its calculations in the Olsen memorandum, PL Exh: 40, or the commission calculation sheet, Pl. Exh. 31, and therefore should not be permitted to deduct them now.

However, the Olsen memorandum specifically discusses the pre-existing maintenance obligation in the section entitled “Revenue Treatment.” Pl. Exh. 40 at 2. The memo notes that the “post deployment PCS renewal rate of [REDACTED] includes PCS for pre-2002 licenses worth approximately [REDACTED].” Id. This refers to one half of the [REDACTED] figure included in the contract.

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623 F. Supp. 2d 11, 2008 U.S. Dist. LEXIS 108912, 2008 WL 6190343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fudali-v-pivotal-corp-dcd-2008.