Lincoln Composites, Inc. v. Firetrace USA, LLC

825 F.3d 453, 89 U.C.C. Rep. Serv. 2d (West) 1060, 2016 U.S. App. LEXIS 10346, 2016 WL 3186895
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 8, 2016
Docket14-3554
StatusPublished
Cited by33 cases

This text of 825 F.3d 453 (Lincoln Composites, Inc. v. Firetrace USA, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Lincoln Composites, Inc. v. Firetrace USA, LLC, 825 F.3d 453, 89 U.C.C. Rep. Serv. 2d (West) 1060, 2016 U.S. App. LEXIS 10346, 2016 WL 3186895 (8th Cir. 2016).

Opinion

KELLY, Circuit Judge.

Firetrace USA, LLC (Firetrace) appeals the district court’s 1 denial of its Federal Rule of Civil Procedure 59 motion for new trial or remittitur, following a jury verdict in favor of Lincoln Composites, Inc. (Lincoln). Finding no error, we affirm. 2

I. Background

Lincoln manufactures composite tanks for the storage and transport of natural gas in places where pipelines are unavailable. Firetrace makes custom designed fire suppression systems that detect and suppress fires. Through a series of transactions, Lincoln purchased fire detection tubing from Firetrace, which Lincoln then installed in its “Titan Module” tanks. There is no dispute that through these transactions the parties entered a contract for the purchase and delivery of Firet-race’s tubing, although the parties dispute the terms and conditions of the contract. Some of the tubing was defective and, despite Firetrace’s repeated attempts to fix the defect, the tubing failed, resulting in natural gas being vented into the air when there was not a fire. After 18 months, Lincoln decided it could no longer use the Firetrace tubing and demanded Firetrace refund the purchase price. Firet-race refused, contending the contract was governed by its terms and conditions, which limited remedies to repair or replacement of the tubing. Lincoln claimed its terms and conditions governed the contract between the parties, and these terms and conditions did not limit its remedies.

Lincoln then sued Firetrace in Nebraska state court for breach of contract, breach of express warranty, breach of implied warranty of merchantability, and breach of implied warranty of fitness for a particular purpose. Firetrace removed the case to federal court. Following an eight-day trial, a jury returned a verdict in favor of Lincoln, finding Firetrace breached an express warranty to Lincoln. The jury awarded damages in the amount of $920,227.76.

Firetrace then filed a Rule 59 motion. Firetrace alleged Lincoln failed to present *458 sufficient evidence on several aspects of its claim and that the district court made several errors in instructing the jury. Pri- or to the district court ruling on Firet-race’s Rule 59 motion, Firetrace appealed from the final judgment entered as well as from orders by the district court denying Firetrace’s motion for sanctions and Firet-race’s motion for summary judgment. The district court ultimately denied the Rule 59 motion.

II. Jurisdictional Issue

As a preliminary matter, Lincoln argues we do not have jurisdiction over Firetrace’s appeal because Firetrace filed its notice of appeal while its Rule 59 motion was still pending and never filed an amended notice of appeal. Under Federal Rule of Appellate Procedure 4(a)(4)(B)(ii), once its Rule 59 motion was denied, Firet-race was required to file an amended notice of appeal. 3 Lincoln contends Firet-race’s failure to file an amended notice of appeal deprives us of jurisdiction. See Miles v. Gen. Motors Corp., 262 F.3d 720, 722-23 (8th Cir. 2001) (finding no jurisdiction to review order denying new trial where no amended notice of appeal filed).

Firetrace concedes it did not file an amended notice of.appeal but asserts it filed the “functional equivalent.” Following the district court’s denial of its Rule 59 motion, Firetrace filed an Amended Statement of Issues in our court that included the issue “[wjhether the district court erred by denying Firetrace’s Motion for Remittitur and for New Trial.” Firetrace also filed an Amended Designation of Record on Appeal that added both parties’ briefings related to the motion for new trial and the district court’s order denying the motion. Firetrace points out it filed its Amended Statement of Issues within the proper time and asks us to construe that as its Amended Notice of Appeal.

We “liberally construe the requirements of Rule 3” of the Federal Rules of Appellate Procedure. Smith v. Barry, 502 U.S. 244, 248, 112 S.Ct. 678, 116 L.Ed.2d 678 (1992). We have “jurisdiction over [an] underlying order if the appellant’s intent to challenge it is clear, and the adverse party will suffer no prejudice if review is permitted.” Hallquist v. United Home Loans, Inc., 715 F.3d 1040, 1044 (8th Cir. 2013). Even when the notice is “technically at variance with the letter of [Rule 3], a court may nonetheless find that the litigant has complied with the rule if the litigant’s action is the functional equivalent of what the rule requires.” Smith, 502 U.S. at 248, 112 S.Ct. 678 (quoting Torres v. Oakland Scavenger Co., 487 U.S. 312, 316-317, 108 S.Ct. 2405, 101 L.Ed.2d 285 (1988)). At oral argument, Lincoln was unable to explain how Firetrace’s filings differed from an amended notice of appeal or how it was prejudiced. We conclude Firetrace made its intent clear by filing its Amended Statement of Issues and Amended Designation of the Record on Appeal and that Lincoln will not be prejudiced if we allow review. We now consider the issues raised on appeal.

III. Firetrace’s Motion for Remittitur or New Trial

Firetrace argues that it is entitled to a new trial on the merits based on *459 sufficiency of the evidence and faulty jury instructions and either a new trial on or remittitur of damages. “[T]he granting or denial of a new trial is a matter of procedure governed by federal law.” Bank of Am., N.A. v. J.B. Hanna, LLC, 766 F.3d 841, 851 (8th Cir. 2014) (alteration in original) (quoting Brown v. Royalty, 535 F.2d 1024, 1027 (8th Cir. 1976)). We review the denial of a motion for new trial for an abuse of discretion. Weitz v. MH Washington, 631 F.3d 510, 523 (8th Cir. 2011). A district court abuses its discretion in denying a motion for new trial based on sufficiency of the evidence “if the verdict is against the weight of the evidence and allowing it to stand would result in a miscarriage of justice.” Bennett v. Riceland Foods, Inc., 721 F.3d 546, 552-53 (8th Cir. 2013) (quoting The Shaw Grp., Inc, v. Marcum, 516 F.3d 1061, 1067 (8th Cir. 2008)). “Remittitur is appropriate where the verdict is so grossly excessive as to shock the judicial conscience.” Id. at 553. A new trial or remittitur is not appropriate “merely because we may have arrived at a different amount from the jury’s award.” Id.

A. Motion for New Trial Based on Sufficiency of the Evidence

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825 F.3d 453, 89 U.C.C. Rep. Serv. 2d (West) 1060, 2016 U.S. App. LEXIS 10346, 2016 WL 3186895, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lincoln-composites-inc-v-firetrace-usa-llc-ca8-2016.