Jackson v. Morse

871 A.2d 47, 152 N.H. 48, 2005 N.H. LEXIS 44
CourtSupreme Court of New Hampshire
DecidedApril 1, 2005
DocketNo. 2004-240
StatusPublished
Cited by13 cases

This text of 871 A.2d 47 (Jackson v. Morse) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. Morse, 871 A.2d 47, 152 N.H. 48, 2005 N.H. LEXIS 44 (N.H. 2005).

Opinion

Nadeau, J.

The plaintiffs, William C. and Donna Jackson, appeal the jury verdict in Superior Court (Smukler, J.) on their claim for promissory estoppel against defendant Charles W. Morse, Jr. and trustee-defendant Ameritrade Holding Corp. They also appeal a post-trial order denying them attorney’s fees. We affirm in part, vacate in part and remand.

The plaintiffs commenced this action in April 2003, asserting causes of action for promissory estoppel, negligent misrepresentation and breach of fiduciary duties. They alleged, in part, the following facts. The Jacksons and Morse were long-time friends. In early 2000, Morse offered to invest for the Jacksons funds they had received in settlement of a lawsuit. Morse later promised the Jacksons that if by December 31, 2001, the value of their investment account was less than $62,000, he would make up the shortfall, but only if they gave him complete control over, and did not interfere with his management of, the investment account. In reliance upon Morse’s representations of past success in securities investment and his promise to make them whole, the Jacksons accepted his offer and gave him total control over the investment account.

The value of the account dropped to approximately $8,000 by December 31, 2001, and Morse’s failure to restore the account to a value of $62,000 prompted the instant lawsuit. The record reflects that only the Jacksons’ [50]*50promissory estoppel claim went to trial. The jury returned a verdict for the Jacksons in the amount of $29,064.64.

On appeal, the Jacksons argue that the trial court erred in instructing the jury that damages could be limited to the extent of the Jacksons’ reliance. Before reaching this argument, however, we must address Morse’s contention that the Jacksons failed to preserve this issue for appeal. Specifically, Morse asserts that the true basis of the Jacksons’ appeal is that the jury’s verdict was too small, and that the Jacksons failed to preserve that issue for appeal because they failed to file a motion for additur.

We find Morse’s argument unpersuasive because we reject its premise. The Jacksons’ challenge of the jury’s verdict is based upon a claim that the trial court’s instruction on the measure of damages was legally erroneous and apparently confused and misled the jury. The Jacksons preserved this issue by objecting to the court’s failure to give their proposed instruction on damages. Accordingly, the issue is properly before us on appeal.

Turning to the merits of the Jacksons’ argument, we first note the parties’ respective positions on damages. The Jacksons contended at trial, and now argue on appeal, that the only appropriate measure of damages in this case is their expectation interest, in other words, the amount of damages that would put them in the position they would have been in if Morse had performed as he promised. Morse, on the other hand, argued at trial for a reliance measure of damages, in other words, the amount of damages that would put the Jacksons in the position they would have been in if they had not relied upon his promise. On appeal, Morse continues to assert that the law of this and other States supports the view that reliance damages are the appropriate award under a promissory estoppel theory. While both parties objected at trial to giving the jury the choice of damage measures, Morse now argues that the trial “court’s jury instructions were not erroneous as a matter of law in that the court properly permitted the jury to exercise its discretion in determining which of the two measures of damages to apply.”

Specifically, the court instructed the jury, in part:

If your verdict is for the plaintiffs, then you must determine the amount of money that will reasonably, fairly, fully, and adequately compensate them for such damages as you find were caused by the legal fault of the defendant____
[51]*51The purpose of any damages awarded is to put the plaintiffs in the same position they would have been in if the defendant had not been legally at fault. You should compare the position of the plaintiffs because of the defendant’s legal fault to the position they would have been in had the defendant not been legally at fault.
In a promissory estoppel claim, relief may sometimes be limited to damages measured by the extent of the plaintiffs’ reliance, rather than by the terms of the promise.

During deliberations, the jury asked the judge to define “legal fault of the defendant.” The court responded, in part:

The legal fault claimed by the plaintiffs is promissory estoppel____

If you find that the plaintiffs have proved the elements of promissory estoppel — in other words, breach of a legally binding promise, you should consider the parties’ different positions on the measure of damages. The plaintiffs claim that the damages caused by the defendant’s legal fault should be based on the promise. The defendant claims that any damages should be determined by the plaintiffs’ reliance. You are permitted to apply notions of fairness and equity — based on the evidence — to your determination of damages.

“The purpose of jury instructions is to identify issues of material fact, and to inform the jury of the appropriate standards of law by which it is to resolve them.” Carignan v. N.H. Int’l Speedway, 151 N.H. 409, 418 (2004). Thus, the trial court has a duty to instruct the jury completely and correctly on the law applicable to the case. Peterson v. Gray, 137 N.H. 374, 377 (1993). We will find reversible error if an erroneous civil jury instruction could have misled the jury “into basing its verdict on a misperception of the law.” Id. (quotation omitted).

The award of damages is a “factually driven” determination. Beaty v. McGraw, 15 S.W.3d 819, 827 (Tenn. Ct. App. 1998). “[T]he amount of damages to be awarded in a particular case is essentially a fact question. However, the choice of the proper measure of damages is a question of law to be decided by the court.” Id. (citations omitted); accord Truesdale v. Straw, 58 N.H. 207, 215 (1877). In some instances, the choice between alternative measures of damages is dependent upon a factual determination that must be made by the jury. See Hills of Palos Condo. Ass’n v. I-Del, Inc., 626 N.E.2d 1311, 1327 (Ill. App. Ct. 1993), appeal [52]*52denied, 631 N.E.2d 708 (Ill. 1994). In those cases, when alternative measures are submitted to the jury, care should be taken to instruct the jury to apply only one measure depending upon how it resolves the underlying factual issue. Cf. Arch of Ill. v. S.K. George Painting, 681 N.E.2d 1049, 1051 (Ill. App. Ct. 1997).

The trial court in this case erroneously allowed the jury to make the legal determination of choosing a measure of damages. That this error apparently misled the jury is evidenced by the amount of the verdict, which does not appear to reflect a determination of the measure of damages based upon either reliance or expectation.

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Bluebook (online)
871 A.2d 47, 152 N.H. 48, 2005 N.H. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-morse-nh-2005.