Portman v. American Home Products Corp.

201 F.2d 847, 1953 U.S. App. LEXIS 2377
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 27, 1953
Docket22348_1
StatusPublished
Cited by42 cases

This text of 201 F.2d 847 (Portman v. American Home Products Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Portman v. American Home Products Corp., 201 F.2d 847, 1953 U.S. App. LEXIS 2377 (2d Cir. 1953).

Opinion

L. HAND, Circuit Judge.

This is an appeal from a judgment for the defendant in an action to recover for services rendered to the defendant in bringing to its notice another corporation that the defendant proved ready to acquire, and in securing its acquisition by the defendant. The answer denied that there had been any such contract and the case was first tried to a jury before Judge Samuel H. Kaufman. That jury returned a verdict for the plaintiff which Judge Kaufman, D.C., 98 F.Supp. 494, 496, set aside because it was “against the weight of the evidence”; and upon a second trial before Judge Irving R. Kaufman a second jury brought in a verdict for the defendant on which that judge entered the judgment appealed from. The plaintiff argues, first, that Judge Samuel H. Kaufman’s order, setting aside the verdict was wrong; that it is reviewable upon this appeal; and that the judgment should be reversed and a judgment entered in his favor upon the first verdict. He next argues that, if he does not succeed upon this point, the judgment should be reversed and a new trial ordered, because of errors in the admission and rejection of evidence upon the second trial. It will be most convenient to treat separately these two positions, reserving a statement of the facts on which the second depends until we have disposed of the first.

It is of course true that the plaintiff could noff appeal from the interlocutory order setting aside the verdict on the first trial; moreover the usual rule is that errors made at any stage of an action are reviewable upon appeal from a final judgment, provided they were not reviewable before. However, there may be errors that are not reviewable at all, and among those that are not are erroneous - orders granting or denying motions to set aside verdicts on the ground that they are against the weight of the evidence. In the often cited decision of Fairmount Glass Works v. Cub Ford Coal Co., 287 U.S. 474, 481, 53 S.Ct. 252, 254, 77 L.Ed. 439, the Supreme Court,, after declaring that it would not itself “review the action of a federal trial court in granting or denying a motion for a new trial for error of fact”, added: “The rule precludes likewise a review of such action by a Circuit Court of Appeals”, and in a footnote cited a copious number of such decisions. The Court has recently reaffirmed the rule in United States v. Johnson, 327 U.S. 106, 111, 66 S.Ct. 464, 90 L.Ed. 562, as we have ourselves in Binder v. Commercial Travelers Mutual Accident Association, 2 Cir., 165 F.2d 896, 902. It is too well established to justify discussion. Since the order was not appealable, because the judge decided that the verdict was against the weight of the evidence, we need not consider whether it was not in any event right on the merits, because of a ground on which he did not rest it: i. e. that the bailiff who had the jury in charge told the forewoman that the jury must come to an agreement.

We come therefore to the conduct of the second trial. The plaintiff alleges that there were four erroneous rulings upon the evidence: three in admitting what was irrelevant; one in excluding what was relevant. As we have said, the action was to recover for services rendered by the plaintiff in finding a subsidiary corporation acceptable to the defendant, and in helping the defendant to acquire all its shares. The complaint was in two counts: the first alleged that the defendant “engaged the services” of the plaintiff in February, 1944, and promised to pay him their “reasonable value”; the second was different only in alleging that the defendant “requested” the plaintiff to do the same work, and in not alleging any promise by the defendant, but in supplying the omission by alleging that the plaintiff expected to be paid and that the defendant knew that he so expected. The first error is alleged to have been as follows: Brush, the chairman of the defendant’s board, was permitted to testify that he had never al *849 lowed any “finder’s fee” to an employee, although on twenty-two ' other occasions employees of the defendant had brought companies to the defendant’s notice that it later acquired. The judge excluded this testimony in support of the first count, but admitted it in support of the second, because that was in “quasi-contract,” and the testimony was relevant to the defendant’s “intent.” In his charge he distinguished between the counts, describing the issue under the second in these words: “whether the plaintiff reasonably expected to be paid in addition to his salary and whether the defendant reasonably expected to pay plaintiff in addition to that salary” what we may call a “finder’s fee.” Later he said that the plaintiff had the burden of proof on that issue. As of August 1, 1944, the plaintiff accepted employment from the defendant, as a vice-president and director of one of its subsidiaries, and at that time he had not completed the services for which he is claiming here. Since the second count does not allege a counter promise by the plaintiff, it must be read as alleging a unilateral contract in which a promise by the defendant, though not express, was to be implied from a request. The verdict on the first count must be taken as showing that there was no- exchange of express promises; and, if so, the plaintiff had earned nothing on August 1, 1944, for the consideration for a unilateral promise is complete performance. When he accepted office on that day, he did not try to learn whether the salary he was to get was intended to cover all services that he was to perform, or what those services were, nor did he at any time thereafter try to do so. The jury had to say what was the “reasonable” meaning to impute to both parties, and it was certainly permissible for them to find, not only that the defendant supposed that the plaintiff assumed that the job offered to him was the job as the defendant had theretofore carried it on, but also that the plaintiff understood this to be the defendant’s meaning, or if he did not, that it was not “reasonable” for him to accept it without inquiry. This was certainly a permissible interpretation for the jury to put on the charge, and neither side asked for any more specific instructions. If the jury did so construe the instruction, it was clearly relevant for the defendant to show that the salary for the job- had always included such services as the plaintiff was asking to be paid for. Hence the testimony was relevant on the second count.

The second alleged error was in admitting a letter written by Brush to the president of the company whose shares the defendant was seeking to acquire. This letter was admitted on the theory that Brush later disclosed its contents to the plaintiff; but it did not need that support, fdr it was relevant as such. The plaintiff was suing for the value of his services in helping the defendant to- get the shares, and the letter was a part of the negotiations between the buyer, the defendant, and the seller — the owners of the shares. Any negotiations between the two were relevant in appraising the plaintiff’s contribution to the eventual purchase of the shares and therefore to the value of his services. It was relevant as such, and not to prove any of the facts that it recited, as to which it was indeed hearsay except as the plaintiff might admit their truth when Brush told him of the contents.

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Bluebook (online)
201 F.2d 847, 1953 U.S. App. LEXIS 2377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/portman-v-american-home-products-corp-ca2-1953.