Howard Concrete Pumping v. Peak Innovations

CourtSuperior Court of Pennsylvania
DecidedAugust 27, 2018
Docket725 WDA 2017
StatusUnpublished

This text of Howard Concrete Pumping v. Peak Innovations (Howard Concrete Pumping v. Peak Innovations) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard Concrete Pumping v. Peak Innovations, (Pa. Ct. App. 2018).

Opinion

J-A02011-18

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

HOWARD CONCRETE PUMPING : IN THE SUPERIOR COURT OF COMPANY, INC. : PENNSYLVANIA : Appellant : : v. : : PEAK INNOVATIONS, INC., AND : DREW RAYMOND NELSON, AN : INDIVIDUAL, AND TJ MINC, LLC : No. 725 WDA 2017

Appeal from the Judgment Entered April 21, 2017 In the Court of Common Pleas of Allegheny County Civil Division at No(s): GD14-021268

BEFORE: BOWES, J., OLSON, J., and KUNSELMAN, J.

MEMORANDUM BY BOWES, J.: FILED AUGUST 27, 2018

Howard Concrete Pumping Company, Inc. (“Howard”) appeals from the

judgment entered in its favor and against Peak Innovations, Inc. (“Peak”) in

this contract case. Specifically, Howard challenges a pre-trial evidentiary

ruling that limited its ability to establish damages. We affirm.

The trial court offered the following summary of the facts underlying

this action and the procedural history of the case.

[Howard] mixes and supplies grout for injection into underground spaces such as abandoned mines so as to improve ground stabilization. Over nearly forty years, Howard developed a variety of equipment and techniques to produce grout effectively at project sites. In 2012, Howard contracted with [Peak] an equipment manufacturer. Under the contract, Howard expected to buy from Peak a new and unique mixing plant, a custom-designed piece of equipment intended to provide a range of cementitious products with more efficiency and accuracy than had been previously accomplished in the industry. The novelty of this plant was such that Howard, already a long-time leader in the grout-related industry, believed it (Howard) would be able to J-A02011-18

move its business to the “next level,” evidently in terms of productivity, efficiency, and/or profit. The contract negotiations involved a number of documents and information such as proposals, purchase orders, warranties, and a non-disclosure agreement. Defendant Drew Nelson was an owner and/or executive of Peak involved in the negotiations and the eventual sale of the plant. Also involved in the contract negotiations and/or sale was TJM, Inc. (“TJM”). TJM was an authorized dealer or sales agent for Peak.

According to Howard, Peak delivered the plant in April 2013, several months late and, moreover, the plant did not operate properly. Howard contended that, as a result of the late delivery and the defects in the plant, Howard lost money. In its complaint filed in this suit, Howard alleged that its losses resulted from, for example, an inability to use the plant—or an inability to use it fully—on one or more of the jobs for which it was intended; the need to use replacement equipment; low productivity/efficiency when the subject plant was used; repair and troubleshooting costs; and costs for idle manpower. Howard also alleged that Peak and Nelson sold one of Howard’s competitors a plant that Peak manufactured using Howard’s trade secrets and other protected information. As defendants in this litigation, Howard initially named Peak, Nelson, and TJM. Howard’s claims against Peak and Nelson included breach of contract, breach of warranties, breach of the non-disclosure agreement, and misappropriation of trade secrets. Howard sued TJM for breach of both contract and warranties.

Prior to trial, all Defendants anticipated that Howard would seek to claim damages for, inter alia, Howard’s inability to secure a particular project with the Ohio Department of Transportation in or near Zanesville. Defendants sought to exclude evidence of that project from trial. Arguing to th[e trial] court, Howard contended that, because the subject plant was not properly operable, Howard had submitted a bid for the Zanesville work based on the anticipated use of other/older equipment. Because that equipment was not as cost-effective as Howard expected the new plant to be (if properly operable), Howard’s Zanesville bid was higher with the old equipment than it would have been with the new plant. Howard was not awarded the Zanesville job. Thus, Howard’s position was that, if the new plant had been operable, Howard would have submitted a lower bid, the Ohio Department of Transportation would have selected

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Howard for the Zanesville job, and Howard would have made a profit on the job.

Defendants raised several points in opposition to Howard’s Zanesville argument, including the contention that the jury in this case would need to speculate to determine whether the Ohio Department of Transportation would have awarded Howard the Zanesville project based solely on a lower bid. In this vein, Defendants contended that, in the course of considering bids, the appropriate Ohio officials were required, by Ohio law, to consider numerous factors in addition to the bid amount. Along these lines, Defendants also noted that Howard had no intention of calling any Ohio state official to testify about the issue of whether Howard would have received the Zanesville project if Howard had lowered its bid amount. Defendants’ point was simply that any claim of Zanesville damages was too uncertain to admit evidence thereon at trial. Th[e trial] court granted Defendants’ motions to preclude evidence of the Zanesville bid because the court found the Zanesville matter to be speculative. . . . Before trial, TJM and Howard settled their disputes. Peak and Nelson remained as Defendants.

The case was heard by a jury. The jurors found in Defendants’ favor on the counts of breach of confidentiality and misappropriation of trade secrets, but awarded Howard $50,000.00 on its breach of contract and warranty claims. Howard filed post-trial motions challenging th[e trial] court’s exclusion of the Zanesville evidence and requesting an award of prejudgment interest. The court denied Howard’s post-trial request for a new trial on the Zanesville issue but granted Howard $1,500.00 in prejudgment interest. The court then molded the verdict accordingly and ordered entry of judgment on April 17, 2017. Howard filed this direct appeal on May 16, 2017. On May 19, 2017, this court ordered Howard to file a statement of matters complained of on appeal. Howard filed its statement on June 9, 2017.

Trial Court Opinion, 6/17/16, at 1-4 (citations omitted).

Howard presents the following questions for this Court’s review.

1. Did the trial court err in granting Peak’s Motion in Limine and barring Howard’s evidence related to the Zanesville Project,

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where entitlement to and the amount of consequential damages are questions of fact for the jury?

2. Did the trial court err in substantively adjudging Howard’s claims for consequential damages as inherently speculative?

3. Did the trial court err by barring Howard’s entire claim for consequential damages related to the Zanesville Project by way of a motion in limine, improperly rendering the motion in limine a motion for summary judgment?

Howard’s brief at 3.

As all of Howard’s issues concern the trial court’s decision to preclude

Howard from offering evidence of damages from not obtaining the Zanesville

contract, we address them together. The following principles guide our

review.

A motion in limine is a pretrial mechanism to obtain a ruling on the admissibility of evidence, and it gives the trial judge the opportunity to weigh potentially prejudicial and harmful evidence before the trial occurs, preventing the evidence from ever reaching the jury. A trial court’s decision to grant or deny a motion in limine is subject to an evidentiary abuse of discretion standard of review.

Questions concerning the admissibility of evidence lie within the sound discretion of the trial court, and we will not reverse the court’s decision absent a clear abuse of discretion.

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Howard Concrete Pumping v. Peak Innovations, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-concrete-pumping-v-peak-innovations-pasuperct-2018.