James E. Deas and Peterbilt of Florida, Inc., a Florida Corporation v. Paccar, Inc., a Delaware Corporation

775 F.2d 1498, 1985 U.S. App. LEXIS 23976
CourtCourt of Appeals for the Eleventh Circuit
DecidedNovember 14, 1985
Docket83-3182
StatusPublished
Cited by33 cases

This text of 775 F.2d 1498 (James E. Deas and Peterbilt of Florida, Inc., a Florida Corporation v. Paccar, Inc., a Delaware Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James E. Deas and Peterbilt of Florida, Inc., a Florida Corporation v. Paccar, Inc., a Delaware Corporation, 775 F.2d 1498, 1985 U.S. App. LEXIS 23976 (11th Cir. 1985).

Opinion

CLARK, Circuit Judge:

This is an appeal by James E. Deas (Deas) and Peterbilt of Florida, Inc. (P.O.F.) from an order granting PACCAR, Inc. (PACCAR) a new trial. Deas is the President and sole stockholder of P.O.F., formerly an exclusive Peterbilt truck dealer. PACCAR is the manufacturer of Pet-erbilt Trucks. One of PACCAR’s divisions is Peterbilt Motors Company (Peterbilt).

Deas and P.O.F. filed this action against PACCAR, Inc. for: (1) violation of the Federal and Florida Dealer Day in Court Acts; (2) fraud with respect to the nondisclosure of facts regarding prospective loans, supplies of new trucks for resale, and P.O.F.’s status as a dealer; and (3) tortiously interfering with P.O.F.’s business relationships. P.O.F.’s claims based on the Federal and Florida Acts and Deas’ claim of tortious interference with a prospective business relationship were the only claims submitted to the jury. The jury found that PACCAR, through its Peterbilt Motors Company Division, violated the Florida and Federal Acts and tortiously interfered with a prospective business relationship held by Deas.

PACCAR filed a motion for judgment notwithstanding the verdict (J.N.O.V.) and an alternative motion for a new trial. The district court, after a hearing, denied the motion for J.N.O.V. and granted PAC-CAR’s alternative motion for a new trial. In its order, the court stated:

It is this Court’s opinion that the admission of Dr. Westbrook’s testimony (the expert who testified on behalf of plaintiff) as support for both liability and damages was in error in that it was completely speculative. Without such evidence the plaintiff could not have pre-vailed____

Record, Vol. 13 at 3188.

Deas and P.O.F. requested the court to enter a judgment notwithstanding the verdict so that an immediate appeal could be taken. The plaintiffs stated that they could not establish any better case on retrial and that they could not afford a retrial. They thus wanted to win or lose based on the record made at trial. The court granted the motion for judgment notwithstanding the verdict and PACCAR’s alternative motion for a new trial. The procedural aspect of this appeal is discussed infra in § II.

I. FACTS

Deas and a co-partner purchased a truck dealership in Orlando in 1966. At that time, the company operated under a different name and was not an exclusive Peter-bilt distributor.

In 1970, Deas became the president and sole stockholder of the company. With the permission of Peterbilt, Deas changed the dealership name to Peterbilt of Florida and thereafter sold Peterbilt Trucks exclusively. 1 The initial distributor’s contract between Deas and Peterbilt was signed in February, 1971 and could be terminated by either party by giving thirty days notice.

In 1971 and 1972, Peterbilt encouraged Deas to sign a new distributor contract and to expand to other markets in Florida. Although Deas objected to certain provisions of the contract and to the plans for expansion, he eventually signed the new contract and in 1973 embarked on an expansion program which his accountant had advised was not prudent. The contract provided that additional facilities would be necessary *1500 when required and did not obligate Peter-bilt to lend any financial support to P.O.F.

Deas testified that he believed that PAC-CAR would provide him with all of the trucks he needed and with financial assistance when he reluctantly agreed to expand. He related that he discussed the expansion efforts with PACCAR’s General Manager and General Marketing Manager. They told him that it was necessary for him to expand his operation so the company could achieve greater market penetration. Deas responded that P.O.F. was centrally located, that he did not have the money for the proposed expansion, and that more trucks would be needed. According to Deas, they assured him that he would be able to obtain all of the trucks he needed and that he would receive assistance in financing. Record Vol. 1 at 194. Benny L. Bailey, PACCAR’s Eastern Region Credit Manager, corroborated Deas’ opinion about obtaining financial assistance during the expansion. Although he also indicated that Deas probably misunderstood the statements of PACCAR’s representatives, he testified that Deas informed him that Deas had been offered financial assistance. Record, Vol. 24 at 1238. 2

Bailey convinced Deas to apply for wholesale financing from Associates Finance (Associates). 3 As a result, Deas and Associates entered into an agreement in which Associates extended wholesale financing so that P.O.F. could obtain its inventory. Record, Vol. 20 at 220-221. Deas did not receive any direct financial assistance from Peterbilt.

From 1971 to 1974 P.O.F. received outstanding performance awards from Peter-bilt. However, P.O.F.’s subsequent financial performance was not as outstanding. P.O.F. had a negative net worth from 1975 to 1978. 4 Its accountant, Carson Eddy, testified that P.O.F.’s financial problems were the result of a lack of operating capital. Eddy also testified that P.O.F.’s accounting procedures were deficient; although, he did not feel they affected P.O.F.’s profits. 5

Eddy rendered his opinion about the causes of P.O.F.’s financial condition:

In 1974 and '75, I believe they had some problems with strikes at the factory which caused Mr. Deas not to have enough trucks available for sale. I think that was during 1970 — I can’t recall the exact date — I think it was ’73 and ’74 was the strike.
Right after that, they went on allocations, I believe, and weren’t able — they weren’t able to get enough trucks to sell and had too much overhead with all the branches.
[B]y using internal capital at the time for expansion, at the time that recession hit, they did not have internal funds available to carry on those operations; and therefore, had to go to outside short-term lending at very high interest rates at that time.

Record, Vol. 23 at 941, 943.

PACCAR’s Eastern Region Credit Manager had a similar observation regarding the cause of P.O.F.’s financial problems:

QUESTION: Did you investigate the source of the problem?

ANSWER: Yes.

*1501 QUESTION: What did you determine?

ANSWER: That it developed over a period of time beginning with a shortage of trucks to sell in 1975 and subsequently carried into 1976, creating the shortage where he couldn’t pay a parts statement on a monthly basis____

Record Vol. 24 at 1244.

In January, 1975 Deas contacted Joseph Dunn, the General Manager of the Peter-bilt Division, because P.O.F.’s distributor’s contract was near the date of expiration.

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Bluebook (online)
775 F.2d 1498, 1985 U.S. App. LEXIS 23976, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-e-deas-and-peterbilt-of-florida-inc-a-florida-corporation-v-ca11-1985.