Marjam Supply Company of Florida, LLC v. PLITEQ, Inc.

CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 27, 2020
Docket18-13765
StatusUnpublished

This text of Marjam Supply Company of Florida, LLC v. PLITEQ, Inc. (Marjam Supply Company of Florida, LLC v. PLITEQ, Inc.) 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
Marjam Supply Company of Florida, LLC v. PLITEQ, Inc., (11th Cir. 2020).

Opinion

Case: 18-13765 Date Filed: 04/27/2020 Page: 1 of 21

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 18-13765 ________________________

D.C. Docket No. 1:15-cv-24363-KMW

MARJAM SUPPLY COMPANY OF FLORIDA, LLC, MARJAM SUPPLY COMPANY,

Plaintiffs - Appellants,

versus

PLITEQ, INC., PAUL DOWNEY,

Defendants - Appellees.

________________________

Appeal from the United States District Court for the Southern District of Florida ________________________

(April 27, 2020)

Before MARTIN, GRANT, and LAGOA, Circuit Judges.

MARTIN, Circuit Judge: Case: 18-13765 Date Filed: 04/27/2020 Page: 2 of 21

Marjam Supply Company of Florida, LLC and Marjam Supply Company

(“Marjam”) appeal the District Court’s order denying Marjam’s motion for

judgment as a matter of law and for a new trial. Marjam challenges the sufficiency

of the evidence of damages awarded to Pliteq, Inc. and Paul Downey, the owner of

Pliteq, (collectively, “Pliteq”) and also takes issue with several of the District

Court’s evidentiary rulings. After careful review, we affirm.

I. BACKGROUND Pliteq manufactures and sells sound isolation products, including its

GenieMat RST (“GenieMat”) product. The GenieMat is a flat, rubber mat used in

offices and apartment buildings to reduce sound transmission. In March 2014,

Marjam (a building materials distributor) and Pliteq entered into an exclusive

distributor agreement for GenieMat products. Under the terms of the agreement,

Marjam was required to pay in advance for its GenieMat orders. It initially upheld

its end of the bargain. Then in June 2015, Pliteq notified Marjam that Marjam was

significantly late on payments totaling $160,000. Pliteq also discovered Marjam

was selling competing products. Instead of immediately terminating the

agreement, Pliteq refused to ship any product until Marjam paid the past due

amount and gave Marjam a chance to respond to these issues. Marjam responded

by threatening to take “swift and inordinate” and “extreme and unpleasant” action

if Pliteq did not reconsider its position. Pliteq then terminated the agreement.

2 Case: 18-13765 Date Filed: 04/27/2020 Page: 3 of 21

Mark Buller, Marjam’s owner, and James Metcalf, Marjam’s products

manager, began discussing plans to get even with Pliteq. Mr. Buller directed Mr.

Metcalf to cooperate with Ecore (one of Pliteq’s direct competitors), with the idea

that the two companies intended to “cripple” and “bury” Pliteq. The owner of

Ecore told Mr. Metcalf that Pliteq was intentionally mislabeling the thickness of its

GenieMat products from one of its manufacturers, so the two companies hatched a

plan. Marjam agreed to a distribution agreement with Ecore and began selling

Ecore products. Then Mr. Metcalf emailed Pliteq saying that “some very ‘scary’

facts” regarding the thickness of GenieMats “have forced us to ‘resolve’ this ‘my’

way.” Mr. Metcalf in turn demanded reimbursement for Pliteq’s purported

fraudulent advertising about the thickness of GenieMats.

Marjam sent a formal demand letter to Pliteq claiming that the GenieMats

were not performing. As part of what Mr. Buller described as a “Blitzkrieg” attack

on Pliteq, Marjam sent copies of this demand letter to Pliteq’s customers with a

transmittal indicating that Marjam had “ceased selling GenieMat products”

because of “recent information about illegal activity brought to our attention.”

Marjam also sent copies of its Complaint to Pliteq’s customers, including Kast

Construction (“Kast”), with the knowledge that Pliteq had an existing relationship

with those customers. Marjam warned the customers, writing: “We are extremely

concerned about current and future liability.” After receiving Marjam’s email,

3 Case: 18-13765 Date Filed: 04/27/2020 Page: 4 of 21

Kast planned to avoid using Pliteq products until the dispute with Marjam was

“sorted out.”

Marjam sued Pliteq for false advertising, breach of warranty, and breach of

contract alleging Pliteq distributed and sold non-conforming GenieMats. Pliteq

responded and asserted counterclaims against Marjam, saying that Marjam

tortiously interfered with contracts and business relationships and engaged in false

advertising, unfair competition, breach of contract, and copyright infringement.

Each party moved for summary judgment, which the court granted, in part, on each

of Pliteq’s and Marjam’s motions. Marjam proceeded to trial on breach of contract

and breach of warranty claims based on its purported loss of the Met 3 project,

which it claimed was terminated after the customer found out GenieMats “did not

provide the required sound insulation attributes.” Pliteq proceeded to trial on its

tortious interference, false advertising, and unfair competition claims.

At the close of evidence, Pliteq and Marjam each moved for judgment as a

matter of law under Rule 50(a). Pliteq argued that Marjam had not presented

sufficient evidence to support either a breach of warranty or a breach of contract

claim related to the Met 3 project. The District Court agreed and entered judgment

as a matter of law against Marjam on those claims.1 Marjam argued that Pliteq had

1 At trial, the evidence demonstrated that a range of thickness of the products, known as nominal thickness, was consistent with industry practice; was within Pliteq’s reported tolerances; and had no practical effect on the GenieMat’s performance. Pliteq also presented evidence that 4 Case: 18-13765 Date Filed: 04/27/2020 Page: 5 of 21

not presented sufficient evidence to prove causation and damages on its

counterclaims. The District Court denied Marjam’s motion and submitted Pliteq’s

claims to the jury. The jury found for Pliteq on each of its remaining claims and

awarded $310,000 in compensatory damages and $800,000 in punitive damages.

Marjam then filed a motion for judgment as a matter of law under Rule

50(b), “and/or alternatively” for a new trial under Rule 59. It stated four grounds it

believed justified a judgment or a new trial: (1) Pliteq did not present sufficient

evidence of causation to establish damages; (2) the District Court improperly

excluded the testimony of Diana Manning Yankee, a Kast employee; (3) the

District Court refused to admit the in-person testimony of Zach Young, one of

Kast’s vice presidents; and (4) the District Court did not allow Marjam to call its

acoustical sound expert, Bennett Brooks. The District Court denied Marjam’s

motion. Marjam timely filed a notice of appeal and now challenges the

compensatory damages award and the District Court’s denial of its motion for a

new trial.

II. STANDARDS OF REVIEW This Court reviews de novo the denial of a Rule 50 motion for judgment as a

matter of law. Nebula Glass Int’l, Inc. v. Reichhold, Inc., 454 F.3d 1203, 1210

no Pliteq customer had ever made a warranty claim or sought to return of any of its GenieMat product.

5 Case: 18-13765 Date Filed: 04/27/2020 Page: 6 of 21

(11th Cir. 2006). “We consider the evidence in the light most favorable to the non-

moving party, but we review all evidence in the record and draw all reasonable

inferences in favor of the nonmoving party without making credibility

determinations or weighing the evidence.” Mee Indus. v.

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Marjam Supply Company of Florida, LLC v. PLITEQ, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/marjam-supply-company-of-florida-llc-v-pliteq-inc-ca11-2020.