The Post Office v. Portec, Inc., a Delaware Corporation

913 F.2d 802, 15 U.S.P.Q. 2d (BNA) 1865, 1990 U.S. App. LEXIS 14796
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 27, 1990
Docket88-2836, 89-1034
StatusPublished
Cited by43 cases

This text of 913 F.2d 802 (The Post Office v. Portec, Inc., a Delaware Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Post Office v. Portec, Inc., a Delaware Corporation, 913 F.2d 802, 15 U.S.P.Q. 2d (BNA) 1865, 1990 U.S. App. LEXIS 14796 (10th Cir. 1990).

Opinion

McKAY, Circuit Judge.

This case involves a challenge to a jury verdict in favor of plaintiff in a misappropriation of trade secrets ease.

I. Facts

The Post Office, a United Kingdom corporation that delivers mail throughout the U.K., developed a unique package-handling chute in the 1970’s. The Post Office licensed others to manufacture the chutes under the trademark Safeglide®. Portee, Inc. negotiated with the Post Office for a license to manufacture and sell Safeglide® chutes in the United States. The negotiations, however, failed to produce an agreement. During the negotiations, Portee learned a great deal of information regarding the chutes. After active negotiations ceased, Portee began manufacturing and selling virtually identical chutes under the name of Spiralglide.

The Post Office (plaintiff) then filed this action against Portee (defendant) asserting claims of breach of contract, misappropriation of trade secrets, breach of the duty of good faith and fair dealing, trademark infringement, fraud and deceit, false designation of origin, and violations of the plug molding statutes of California, Tennessee, and Michigan. After a jury trial, the jury returned verdicts in favor of plaintiff on its claims of misappropriation of trade secrets, breach of fiduciary duty, false designation of origin under the Lanham Act, and fraud. The jury awarded damages of $79,519.40 on the misappropriation of trade secrets and the breach of fiduciary duty claims. Although the jury found for plaintiff on the claims of false designation of origin and fraud, the jury awarded zero damages on those claims. The jury also awarded $1,500,000.00 in punitive damages. Finally, the district court entered an injunction prohibiting defendant from manufacturing and selling any nonmechanized spiral chutes for four years.

After judgment, plaintiff sought attorney fees under the Lanham Act. The district court awarded $619,315.24 in attorney fees and costs. Defendant now appeals the trial court’s entry of judgment on the jury’s verdict and the trial court’s award of attorney fees to plaintiff. Defendant makes six challenges to the district court’s judgment and to its award of attorney fees. We deal with the arguments in the order in which they were raised by defendant.

II. Motion for Specific Identification of Trade Secrets

On July 7, 1988, defendant filed a motion requesting the district court to order plaintiff to identify each specific trade secret alleged to be misappropriated and to provide defendant with this information within forty-five days. On July 14, 1988, the district court deferred defendant’s motion until trial. On the first day of trial the district court granted the motion. On the *806 second day of trial, defendant received a list of each specific trade secret alleged to be misappropriated. Defendant claims that it was prejudiced by not having the list until trial. Defendant argues that it was unable adequately to prepare for trial without the information requested in its motion.

We refuse to review an issue on appeal that was not raised before the district court. “It is well established in this circuit that ‘a party may not sit idly by, watching error being committed, and then raise the claimed error on appeal without having accorded the trial court the opportunity to correct its action.’ ” Chevron, U.S.A., Inc. v. Hand, 763 F.2d 1184, 1186 (10th Cir.1985) (quoting Gundy v. United States, 728 F.2d 484, 488 (10th Cir.1984)). In Gundy we stated that “failure to raise the issue with the trial court precludes any review except for the most manifest error.” Gundy, 728 F.2d at 488. See also Burak v. General American Life Ins. Co., 836 F.2d 1287, 1291 (10th Cir.1988); United States v. Troutman, 814 F.2d 1428, 1444 (10th Cir.1987); United States v. Diaz-Albertini, 772 F.2d 654, 657 (10th Cir.1985). In order to preserve an issue for our review, we require parties to make specific objections even when merely formulating issues for trial. “The need for specific objection applies to rulings on evidence, formulation of issues for trial, arguments of counsel, submission of the case to the jury, instructing the jury and all other matters throughout the trial.” Neu v. Grant, 548 F.2d 281, 287 (10th Cir.1977).

In this case, defendant had at least two opportunities to object or bring its position to the attention of the district court. Defendant could have objected on July 14, 1988, when the district court held defendant’s motion in abeyance until trial. Defendant could have objected again on July 29, 1988, when the district court ordered trial to begin on August 22, 1988. It was clear on July 29, 1988, that the district court would not rule on defendant’s motion until the beginning of trial and that trial would begin in approximately three weeks. Defendant also had an opportunity to explain its allegation of prejudice at trial when the district judge granted defendant’s motion.

Defendant chose not to object to the trial court’s actions at any time, nor did it seek a continuance in order to respond to the information obtained. The district court was never given an opportunity to correct any possible error. Accordingly, we are precluded from reaching the issue of prejudice based on timing, raised for the first time in this court, because we find no manifest error.

III. Tendered Jury Instruction Number Six

Defendant next challenges the district court’s failure to submit to the jury defendant’s tendered jury instruction number six. This jury instruction discussed the difference between patented and unpatent-ed articles. At trial, defendant explained its rationale with respect to all of its tendered instructions. However, defendant did not object when the trial court failed to submit tendered jury instruction number six. Again, we hold that this failure to object precludes our review.

Federal Rule of Civil Procedure 51 specifically discusses the failure to object in this situation.

No party may assign as error the giving or the failure to give an instruction unless that party objects thereto before the jury retires to consider its verdict, stating distinctly the matter objected to and the grounds of the objection.

Fed.R.Civ.P. 51 (emphasis added). Defendant did not object to the district court’s failure to submit to the jury its tendered jury instruction. We are thus precluded from reviewing the issue on appeal.

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Bluebook (online)
913 F.2d 802, 15 U.S.P.Q. 2d (BNA) 1865, 1990 U.S. App. LEXIS 14796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-post-office-v-portec-inc-a-delaware-corporation-ca10-1990.