Step-Saver Data Systems, Inc. v. Wyse Technology

752 F. Supp. 181, 13 U.C.C. Rep. Serv. 2d (West) 700, 1990 U.S. Dist. LEXIS 13806, 1990 WL 191280
CourtDistrict Court, E.D. Pennsylvania
DecidedOctober 15, 1990
DocketCiv. A. 89-7203
StatusPublished
Cited by7 cases

This text of 752 F. Supp. 181 (Step-Saver Data Systems, Inc. v. Wyse Technology) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Step-Saver Data Systems, Inc. v. Wyse Technology, 752 F. Supp. 181, 13 U.C.C. Rep. Serv. 2d (West) 700, 1990 U.S. Dist. LEXIS 13806, 1990 WL 191280 (E.D. Pa. 1990).

Opinion

MEMORANDUM

RAYMOND J. BRODERICK, District Judge.

Plaintiff Step-Saver Data Systems, Inc. (“Step-Saver”) commenced this diversity action against defendants Wyse Technology (“Wyse”) and The Software Link, Inc., (“Software Link”) on October 5, 1990. The Court in this memorandum will address the plaintiff’s allegations as set forth in plaintiff’s Post-Trial Motion for a New Trial. 1

Step-Saver’s complaint alleged six causes of action against the defendants: (1) intentional misrepresentation, (2) negligent misrepresentation, (3) breach of express warranties, (4) breach of implied warranties of merchantability and of fitness for a particular purpose, (5) negligence, and (6) breach of contract. After a ten-day bifurcated trial, the jury returned a verdict in favor of the defendant, Wyse, on the issue of liability with respect to plaintiff’s claims of breach of express warranty and breach of implied warranty by answering “NO” to each of the following interrogatories.

1. Has Step-Saver proved by a preponderance of evidence that defendant Wyse Technology breached its express warranty to replace a defective Wyse-60 terminal with a new or rebuilt product or repair it with new or rebuilt parts and that its breach was a proximate cause of damage to Step-Saver?
2. Has Step-Saver proved by a preponderance of evidence that defendant Wyse Technology at the time of the sale to Step-Saver had reason to know of the particular purpose for which the Wyse-60 terminals were purchased and that Step-Saver relied *185 on Wyse’s skill or judgement, creating an implied warranty of fitness, and that the implied warranty of fitness was breached and that the breach was a proximate cause of damage to Step-Saver?

Prior to trial, the Court granted summary judgement in favor of Wyse and against Step-Saver on Step-Saver’s claims of negligent misrepresentation, negligence and intentional misrepresentation. Likewise, pri- or to trial, the Court granted summary judgement in favor of Software Link and against Step-Saver on Step-Saver’s negligent misrepresentation, negligence and implied warranty claims. On the basis of the evidence presented by the plaintiff at trial, the Court granted a directed verdict in favor of Software Link in connection with its claims of intentional misrepresentation, breach of contract, and breach of express warranty.

Plaintiff Step-Saver filed a post-trial motion for a new trial and oral argument on the issues therein was heard before this Judge on September 5, 1990.

The authority to grant a new trial rests within the sound discretion of the trial court whose duty it is to ensure that the verdict does not result in a miscarriage of justice. American Bearing Co. v. Litton Industries, Inc., 729 F.2d 943, 948 (3d Cir.), cert. denied, 469 U.S. 854, 105 S.Ct. 178, 83 L.Ed.2d 112 (1984); Marks v. Mobil Oil Corp., 562 F.Supp. 759, 764 (E.D.Pa.1983), affirmed without opinion, 727 F.2d 1100 (3d Cir.1984). There are three grounds for granting a motion for a new trial: (1) manifest error of law; (2) manifest error of fact; and (3) newly discovered evidence. 6A Moore, Lucas & Grother, Moore’s Federal Practice, ¶ 59.07, at 59-73 (2d ed. 1984). See Thomas v. E.J. Korvette, Inc., 476 F.2d 471, 474-75 (3d Cir.1973). Upon examination and consideration of the allegations of error set forth by Step-Saver in its motion for a new trial, the Court finds that none of them, either alone or considered together, provide any basis for a new trial. For the reasons discussed below, the Court has determined that plaintiff’s motion for a new trial will be denied.

In this memorandum, the Court will address only those allegations of error which were briefed and argued by Step-Saver.

I. Allegations of Error Regarding Defendant Software Link

A. Limited Use License Agreement

The bulk of plaintiff’s allegations of error concerning Software Link, paragraphs 1 through 14 of their motion for a new trial, revolve around the Limited Use License Agreement (“licensing agreement”). Plaintiff’s primary arguments with regard to the licensing agreement are that the Court erred, in excluding as parol evidence extraneous evidence of negotiations and communications between the parties made prior to the delivery of the product and the licensing agreement, in finding that the licensing agreement applied to Step-Saver, and in finding that the licensing agreement effectively disclaimed all implied warranties of merchantability and of fitness for a particular purpose as to Step-Saver.

The transcript in this case, commencing at June 26, 1990, at page 72, sets forth the fact that the Court heard and considered all the evidence proffered by Step-Saver in a hearing outside the presence of the jury together with the words of the licensing agreement and determined that the evidence proffered by Step-Saver was not consistent with the express terms of the agreement. The Court found that the agreement on the Multi-Link package was a waiver of warranties and a limitation of remedies and, as the agreement stated, was the “complete and exclusive agreement” between the parties. As such, the Court correctly found that no evidence that contradicts that agreement could be admitted into evidence in accordance with U.C.C. § 2-202.

As the Third Circuit explained in Tigg Corp. v. Dow Corning Corp., 822 F.2d 358 (3d Cir.1987), the parol evidence rule prevents the fact finder from considering evidence extrinsic to a final written agreement that contradicts the terms of that agreement. However, before it can be de *186 termined whether the offered evidence contradicts the writing, the court must determine what the writing means. “Therefore, the process of contract interpretation must take place before application of rules that exclude evidence.” Id,., at 362.

In the process of contract interpretation, the question whether a contract or its terms are ambiguous is one of law. Id., at 362-63. As the Third Circuit stated in Mellon Bank, N.A. v. Aetna Business Credit, Inc., 619 F.2d 1001, 1011 (3d Cir.1980):

It is the role of the judge to consider the words of the contract, the alternative meaning suggested by counsel, and the nature of the objective evidence to be offered in support of that meaning. The trial judge must then determine if a full evidentiary hearing is warranted. If a reasonable alternative interpretation is suggested, even though it may be alien to the judge’s linguistic experience, objective evidence in support of that interpretation should be considered by the fact finder.

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752 F. Supp. 181, 13 U.C.C. Rep. Serv. 2d (West) 700, 1990 U.S. Dist. LEXIS 13806, 1990 WL 191280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/step-saver-data-systems-inc-v-wyse-technology-paed-1990.