McCollough v. Johnson, Rodenberg & Lauinger

645 F. Supp. 2d 917, 2009 U.S. Dist. LEXIS 69881, 2009 WL 2514093
District Court, D. Montana·Decided July 27, 2009·No. CV-07-166-BLG-CSO·Published·Cited by 1 cases

Opinion

ORDER DENYING DEFENDANT’S MOTION FOR A NEW TRIAL AND TO AMEND THE JUDGMENT

CAROLYN S. OSTBY, United States Magistrate Judge.

Pending before the Court is Defendant Johnson, Rodenberg & Lauinger’s (“JRL”) motion for a new trial and to alter/amend the judgment under Fed.R.Civ.P. 59. Court’s Doc. No. 186. For the reasons set forth below, the Court will deny JRL’s motion.

I. BACKGROUND

This matter was tried to a jury on April 14, 15, and 16, 2009. The jury returned a verdict in favor of McCollough, finding that JRL violated the Montana Unfair Trade Practices Act (“UTPA”), maliciously prosecuted McCollough, and abused the legal process. Court’s Doc. No. 161. Pri- or to trial, the Court had determined that JRL violated the federal Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692e, as a matter of law. Court’s Doc. Nos. 75, 96.

The jury awarded McCollough $250,000 in compensatory damages and $1,000 in FDCPA statutory damages. Id. The jury also awarded McCollough $60,000 in punitive damages against JRL. Court’s Doc. No. 162. On June 3, 2009, the Court entered judgment against JRL in the total amount of $408,770.17-$301,000 in damages, and $107,770.17 in fees and costs. Court’s Doc. No. 183.

II. PARTIES ARGUMENTS

JRL requests a new trial on three grounds: (1) that the Court erred when it allowed evidence of the number of lawsuits filed in Montana by JRL and evidence concerning other lawsuits against JRL based on JRL’s debt collection activities in Montana; (2) that the Court erred when it allowed the UTPA cause of action to go to the jury because McCollough did not present sufficient evidence to support it; (3) that the Court erred when it allowed the abuse of process and malicious prosecution claims to go to the jury because McCollough did not present sufficient evidence to support either of them. Court’s Doc. No. 187 at 2-3. Finally, JRL asks the Court to alter or amend the judgment to reduce the $250,000 emotional distress damages awarded McCollough because that amount is not supported by the evidence, is grossly excessive, and shocks the conscience. Id. at 3.

In support, JRL argues, first, that evidence that JRL filed approximately 2700 other lawsuits in Montana in 18 months was not relevant to any issue. Id. at 4-5. Under the FDCPA, a debt collector’s noncompliance with the law as to the plaintiff, *921 not others, is relevant. Court’s Doc. No. 199 at 3-7. Likewise, harm to others cannot be used to determine punitive damages. Id. at 7-9. Further, this error was prejudicial, given the outcome of the case. Court’s Doc. No. 187 at 5.

Second, JRL argues that at trial, no evidence was presented that McCollough was a consumer in relation to JRL, or suffered a loss of money or property as a result of JRL’s actions. Thus, the Court should not have submitted the Montana UTPA claim to the jury. Id. at 5-8; Court’s Doc. No. 199 at 9-11.

Third, JRL argues that no evidence supports either McCollough’s malicious prosecution or abuse of process claims. Regarding malicious prosecution, McCollough failed to present evidence that JRL lacked probable cause to file a lawsuit against him or that JRL was actuated by malice. Id. at 9-10. As to abuse of process, McCollough presented no evidence that JRL filed the underlying lawsuit to coerce him into taking an action that could be obtained via ordinary legal proceedings. Id. at 10-12; Court’s Doc. No. 199 at 11-13.

Finally, JRL argues that the evidence of McCollough’s emotional distress shows, at most, “some minor flare-ups of McCollough’s pre-existing problems,” and thus the $250,000 verdict for emotional distress damages is grossly excessive, unsupported by the evidence, and must be reduced. Id. at 12-19; Court’s Doc. No. 199 at 13-15.

McCollough responds, first, that evidence of the other lawsuits JRL has filed was relevant to the jury’s consideration of FDCPA statutory damages, as the text of the statute makes pattern and practice evidence relevant. Court’s Doc. No. 191 at 3-4. Also, evidence of the number of lawsuits was relevant to prove punitive damages, as it shows the reprehensibility of JRL’s conduct. Id. And the testimony of two other persons subject to JRL’s debt collection activities was strictly limited to have a nexus to the specific harm suffered by McCollough. Id.

Second, McCollough showed at trial that he was a consumer under the Montana UTPA in relation to the original creditor by testifying that he used a credit card for consumer purposes. Id. at 4-5.

Third, at trial there was evidence presented that JRL had little basis to file suit against McCollough, and the jury properly concluded that JRL committed the torts of malicious prosecution and abuse of process. Id. at 5-6.

Finally, the evidence at trial supports the jury’s emotional distress damages award, and it should not be disturbed. Id. at 6-8.

McCollough’s counsel also requests fees and costs for his work responding to JRL’s motion. Id. at 9.

III. DISCUSSION

A. Rule 59 Motion for New Trial

Under Rule 59, after a jury trial, the trial court may grant a new trial on all or some of the issues. 1 The decision whether to grant a new trial rests in the trial judge’s sound discretion. Defenders of Wildlife v. Bernal, 204 F.3d 920, 928-29 (9th Cir.2000). Although Rule 59 does not expressly list the grounds for which the trial court may grant a new trial, the Ninth Circuit has identified certain grounds that permit a trial judge to grant a new trial.

First, the trial court may grant a new trial where the verdict is against the *922 clear weight of the evidence or is based on false evidence, or to prevent a miscarriage of justice. Silver Sage Partners, Ltd. v. City of Desert Hot Springs, 251 F.3d 814, 819 (9th Cir.2001); Landes Const. Co., Inc. v. Royal Bank of Canada, 833 F.2d 1365, 1371 (9th Cir.1987). “[A] district court may not grant a new trial simply because it would have arrived at a different verdict.” Silver Sage Partners, 251 F.3d at 819 (citation omitted). Rather, before granting a new trial on these bases, the trial court, after having given full respect to the jury’s determination, must be “left with the definite and firm conviction that a mistake has been committed [by the jury].” Landes Const. Co., 833 F.2d at 1371-72 (citations omitted). The Ninth Circuit has made clear that “[i]t is not the courts’ place to substitute our evaluation for those of the jurors.” Union Oil Co. of Cal. v.

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McCollough v. Johnson, Rodenberg & Lauinger, 645 F. Supp. 2d 917, 2009 U.S. Dist. LEXIS 69881, 2009 WL 2514093 (D. Mont. 2009).

645 F. Supp. 2d 917 (McCollough v. Johnson, Rodenberg & Lauinger) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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