Scotton v. Wright

122 A. 541, 14 Del. Ch. 124, 1923 Del. Ch. LEXIS 28
Court of Chancery of Delaware·Decided November 7, 1923·Published·Cited by 9 cases

Opinion

The Chancellor.

Various reasons are urged as to why the issue should be resubmitted and a new trial had. These reasons are embraced in eleven paragraphs of the complainants’ written motion. They may, however, be classified as follows:

(1) That the verdict is against the evidence.

(2) That the Superior Court erred in rejecting certain evidence tendered by the complainants for the purpose of showing the value of the goodwill of the business which the complainants purchased from the defendants and how much the same had been impaired by the defendants’ wrongful competition.

(3) That the Superior Court erred in rejecting evidence of the value of an agency to sell Ford automobiles in the town of Smyrna.

It is agreed by the solicitors representing the parties that the verdict of the jury on an issue sent by the Court of Chancery to be tried at the bar of the Superior Court, is not binding on the Chancellor; that the verdict of the jury is only advisory; and that if for any reason the verdict is not satisfying to the Chancellor’s conscience, for whose enlightenment it is sought, another issue may be framed and submitted for trial to another jury, or the Chancellor may disregard the verdict already rendered and himself proceed on the evidence disclosed by the record to make a finding. That these agreed principles are settled in the law appears from the text found in 21 C. J. 594, par. 735. While, however, it is true that the verdict is in no wise conclusive upon the Chancellor’s judgment, yet it is entitled to great weight and ought not to be lightly disregarded. The same citation from 21 C. J. contains language to this effect. This principle appears to be so well grounded in reason that I have not deemed it necessary to examine the authorities in its support. If the fact, the truth of which the issue is designed to ascertain, is of such character as to prompt the Chancellor to invoke the aid of a jury in its ascertainment, it is not to be supposed that the judgment of the jury when obtained will be arbitrarily disregarded or even lightly considered. If it were not so, the Chancellor would betray a lack of confidence in the jury’s judgment which his action in directing the issue'would hardly warrant. Especially is the jury’s verdict entitled to considerable weight [127] when the fact is so difficult of precise ascertainment and exact measurement as the question of damage occasioned by a breach of covenant not to engage in trade. In disposing, therefore, of the application for a new trial of the issue, the result heretofore reached by the jury is not to be discarded except for reasons that satisfyingly overcome the weight to which the jury’s conclusion is entitled. The three reasons advanced for a new trial will be disposed of in the order in which they are above set forth.

In the opinion filed by me when the nature of the decree to be entered was determined upon (13 Del. Ch. 214, 117 Atl. 131) I observed that the possible damages occasioned by the breach of the covenant ranged from a nominal sum to as high as $12,000, the sum then contended for by the complainants. The jury, after a rather extensive hearing, reached the conclusion that $3,000 is a fair measure of the complainants’ damage. It is now urged that the verdict finding this to be the proper amount is against the evidence. If by this it is meant that there is no evidence whatever which would justify the jury in naming this figure as the amotint of damage, I am constrained to disagree with the contention. It is true that the complainants introduced testimony which if accepted by the jury at its full face value would suggest a sum larger than $3,000 as the correct measure of the damage. But the jury was not bound to accept in full the complainants’ representation of the damage. Especially is this true when it is remembered that the damages were typically unliquidated in character depending for their measurement upon the extent to which the defendants’ competition had taken trade away from' the complainants, and that the defendants offered testimony which if believed was calculated to show that the loss of business which the complainants allege they suffered was due in large part to their own inattention and costly if not wasteful management. It is unnecessary to review the testimony adduced by the parties in support of their respective contentions in order to show the correctness of these observations. It is sufficient to say that there was evidence in the case which if accorded credit would support the jury’s finding.

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Scotton v. Wright, 122 A. 541, 14 Del. Ch. 124, 1923 Del. Ch. LEXIS 28 (Del. Ct. App. 1923).

122 A. 541 (Scotton v. Wright) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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