Lamborn v. Dittmer

688 F. Supp. 113, 1988 U.S. Dist. LEXIS 4853, 1988 WL 60637
CourtDistrict Court, S.D. New York
DecidedMay 26, 1988
DocketNo. 83 Civ. 2493 (RLC)
StatusPublished

This text of 688 F. Supp. 113 (Lamborn v. Dittmer) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamborn v. Dittmer, 688 F. Supp. 113, 1988 U.S. Dist. LEXIS 4853, 1988 WL 60637 (S.D.N.Y. 1988).

Opinion

OPINION

ROBERT L. CARTER, District Judge.

This action revolves around the allegedly wrongful dissolution of a partnership. After roughly a three-week trial resulting in a jury verdict of $30 million for plaintiffs, defendants move for judgment n.o.v. or, in the alternative, for a new trial. Defendants assert five bases for their two pronged motion: (1) the speculative nature of plaintiff’s testimony regarding Refco International Futures’ (“RIF”) value, plus lack of support for testimony in the record; (2) counsel for plaintiffs appealed to the passions and prejudices of the jury and injected his own opinion of the credibility of various witnesses; (3) plaintiffs’ attorney should have been disqualified, and the court should have allowed defendant to call plaintiffs’ attorney as a witness; (4) it was error to permit plaintiffs to introduce a document labelled “Refco Inc. Clearing Charges to RIF” as overcharges, and to bar testimony concerning plaintiffs’ employment and earnings since RIF’s dissolution; and (5) the court should have directed a verdict that RIF was properly dissolved and in favor of Dittmer on the counterclaim.

We deal with the motion for judgment n.o.v. first. The basic rule is that a judgment n.o.v. will not lie unless a motion for a directed verdict has been made at the close of all the evidence specifying the same grounds for relief articulated in the motion for judgment n.o.v. United States for Use of Roper, IBG, Div. of Roper Corp. v. Reisz, 718 F.2d 1004, 1007 (11th Cir.1983) (a motion for a directed verdict at the close of plaintiff's case will not suffice unless it is renewed at the close of all the evidence). Accord Johnson v. Armored Transport of California, Inc., 813 F.2d 1041, 1042 (9th Cir.1987); Baskin v. Hawley, 807 F.2d 1120 (2d Cir.1986); Della Grotta v. State of Rhode Island, 781 F.2d 343, 349-50 (1st Cir.1986); Halsell v. Kimberly-Clark Corp., 683 F.2d 285 (8th Cir.1982), cert. denied, 459 U.S. 1205, 103 S.Ct. 1194, 75 L.Ed.2d 438 (1983).

When plaintiffs rested, the court was certain that a motion for directed verdict had no merit and was prepared to deny it summarily. (Tr. 869) “[T]he only purpose for the motion would be to preserve your record. This is done.” (Id.). At the close of all the evidence, the court reminded counsel for defendants that he would be permitted to make his motion for the record, and that if he wanted “to make [115]*115such a record [he] better do so at the present time.” (Tr. 1295) Counsel declined to do so because he did not want to take up everyone’s time. (Id.) The court responded it was not going “to allow anytime,” but was merely going to permit counsel to put the motion on the record. (Tr. 1295-96)

Although technically the present motion for judgment n.o.v. is not properly before the court, Baskin v. Hawley, supra, the circumstances of this case are such that failure to make the motion may be excused. At both the close of plaintiffs’ case and at the close of all the evidence, the court made clear to counsel that making the motion would constitute a waste of time, that little time would be allowed for argument and that the motion would be denied out of hand. While counsel may be faulted for not putting on the record in summary fashion the arguments made here to support the motion, the court has to bear much of the responsibility for counsel’s silence. It would not be fair now to deny the motion on procedural grounds.

Moreover, counsel’s failure to make the motion for directed verdict at the appropriate time has not prejudiced the plaintiffs. All the reasons stated in support of the motion, except the one relating to Mr. Fleming’s closing argument, were voiced during the trial. Thus, defendants’ position comes as no surprise. Plaintiffs have been firmly convinced throughout of the appropriateness of their own theory, so that it is doubtful that they would have amended or modified their position as a result of defendants’ arguments. There are circumstances where strict application of the rule should not apply. See McKinnon v. Berwyn, 750 F.2d 1383 (7th Cir.1984); Bonner v. Coughlin, 657 F.2d 931 (7th Cir.1981); Pittsburgh-Des Moines Steel Co. v. Brookhaven Manor Water Co., 532 F.2d 572 (7th Cir.1976). See also Ebker v. Tan Jay International, Ltd., 739 F.2d 812, 813 (2d Cir.1984) (citing cases). This case presents such circumstances. We therefore proceed to the merits.

In this circuit the rule is that judgments n.o.v. may be granted when “the evidence is such that without weighing the credibility of the witnesses or otherwise considering the weight of the evidence, there can be but one conclusion as to the verdict that reasonable men could have reached.” Simblest v. Maynard, 427 F.2d 1, 4 (2d Cir.1970) That rule has been reaffirmed again and again. See e.g. Mattivi v. South African Marine Corp., “Huguenot”, 618 F.2d 163 (2d Cir.1980); Konik v. Champlain Valley Physicians Hospital Medical Center, 733 F.2d 1007 (2d Cir.), cert. denied, 469 U.S. 884, 105 S.Ct. 253, 83 L.Ed.2d 190 (1984); Unijax, Inc. v. Champion International, Inc., 516 F.Supp. 941 (S.D.N.Y.1981) (Carter, J.), aff'd, 683 F.2d 678 (2d Cir.1982). In considering the motion, the evidence must be viewed in the light most favorable to the non-moving party. The motion “will be granted only if (1) there is a complete absence of probative evidence to support the verdict for the non-movant or (2)the evidence is so strongly and overwhelmingly in favor of the movant that reasonable and fair minded men in the exercise of impartial judgment could not arrive at a verdict against him.” Armstrong v. Commerce Tankers Corp., 423 F.2d 957, 959 (2d Cir.) (citations omitted), cert. denied, 400 U.S. 833, 91 S.Ct. 67, 27 L.Ed.2d 65 (1970); Noonan v. Midland Capital Corp., 453 F.2d 459 (2d Cir.), cert. denied, 406 U.S. 945, 92 S.Ct. 2044, 32 L.Ed.2d 333 (1972).

Witness credibility, however, was a crucial factor in this case, and the evidence does not meet the applicable yardstick of being overwhelmingly in favor of the movant.

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Bluebook (online)
688 F. Supp. 113, 1988 U.S. Dist. LEXIS 4853, 1988 WL 60637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamborn-v-dittmer-nysd-1988.