Walter Int'l Productions v. Walter Mercado Salinas

650 F.3d 1402, 80 Fed. R. Serv. 3d 1166, 2011 U.S. App. LEXIS 17508, 2011 WL 3667597
Court of Appeals for the Eleventh Circuit·Decided August 23, 2011·No. 09-15971·Published·Cited by 45 cases

Opinion

CARNES, Circuit Judge:

This appeal involves a contract dispute between Bart Enterprises International, Ltd., and Walter Mercado Salinas. The contract describes Bart Enterprises as being “in the business of producing and distributing entertainment programming,” and it describes Mercado as “a well-known psychic and astrologer who provides psychic and astrological counseling to the public.” It may be true, as the song lyrics say, that ‘When the moon is in the Seventh House / And Jupiter aligns with Mars / Then peace will guide the planets / And love will steer the stars,” 1 but there was no peace and love between these parties after their contractual dispute arose.

*1405 Had Mercado’s psychic powers been greater he might have foreseen that the parties’ relationship was star-crossed and his dealings with the entertainment company would end in a way that was anything but entertaining. Or maybe the problem was that Mercado could see only so far into the future, because things went pretty well for about eleven years. Then trouble began.

I.

In the contract, which they entered into in June of 1995, Mercado assigned the rights in the “Walter Mercado” trademark to Bart Enterprises, giving it the right to produce, market, and distribute his trademarked materials in exchange for regular payments to him. The contract also allowed Bart Enterprises to re-assign its contractual rights, which it did to some extent. 2 (We’ll refer to Bart Enterprises and its assignees collectively as “the Bart Group” unless context requires otherwise.)

The parties amicably did business together under the contract for about eleven years. Mercado’s story is that trouble began when the Bart Group fell behind on its payments to him, and as a result he attempted to formally terminate the contract in a letter dated November 22, 2006. The Bart Group’s story is that it was not in arrears, and Mercado was the one who breached the agreement in November 2006 by failing to attend scheduled appearances, failing to provide required materials, and improperly attempting to terminate the contract.

In January of 2007 the Bart Group filed a lawsuit against Mercado and his company, Astromundo, Inc., which had sent the November 22, 2006 letter to the Bart Group attempting to terminate the parties’ contract. (We will refer to Mercado and Astromundo, Inc. collectively as “Mercado.”) The Bart Group’s complaint concedes that “[f]rom June 1995 through the beginning of November 2006, Mercado performed his obligations and complied with all the requirements pursuant to the Agreement without interruption,” but it claims that in mid-November 2006 he breached the contract.

The complaint asserted in six counts that Mercado had breached his contract with the Bart Group — one claim for Bart Enterprises and one claim each for its five assignees (Counts I & TV-VIII). It also claimed that Mercado tortiously interfered with the contracts that two of the Bart Group had with two television stations, Televisa (Count II) and Univision (Count III), by directly entering into contracts with those stations.

Mercado filed an answer denying liability on all of the claims and asserting a number of counterclaims. These are the only counterclaims that are relevant to the procedural history of this appeal: Mercado’s claims against the Bart Group for breach of contract (Counts I and II) and his claims against Bart Enterprises for breach of fiduciary duty (Count IV) and for a declaratory judgment (Count III). In his declaratory judgment count Mercado asked the district court to find either that the contract was void or that he had properly terminated it. He also asked for a ruling that Bart Enterprises owed him fees and commissions and that he had the right to inspect “all of the accounting books and supporting documentation” to determine the amounts that he was owed.

In June 2008, these star-crossed parties filed cross-motions for summary judg *1406 ment, which the district court granted in part and denied in part. The only claims of the Bart Group that survived summary judgment were the breach of contract and tortious interference claims. The only counterclaims of Mercado that survived summary judgment or dismissal were those for breach of contract and breach of fiduciary duty. The court did grant one part of the declaratory judgment that Mercado had requested, declaring that he did have a right under the contract to inspect the Bart Group’s accounting books.

The claims and counterclaims that remained went to trial, which was divided into two phases. In phase I, which lasted for eight days, the jury considered the Bart Group’s breach of contract claim and Mercado’s breach of contract and breach of fiduciary duty counterclaims. Answering questions on the verdict form, the jury found that the Bart Group had not breached the parties’ contract but that Mercado had breached it by: (1) improperly terminating it; (2) hiring another exclusive agent while the parties’ contract was still in force; and (3) failing to perform after November 22, 2006. The jury also found that the Bart Group owed Mercado a fiduciary duty separate and apart from the pai'ties’ contract but that it had not breached that duty to Mercado.

In phase II of the trial the jury heard evidence on and decided the Bart Group’s tortious interference with contract claims against Mercado and the question of damages for his breach of contract. 3 Two days after its first verdict, the jury returned a second verdict, which also included answers to questions on the verdict form. The jury found that, although Mercado had interfered with two of the Bart Group’s existing contracts with third parties, the interference was not with the intent to injure or destroy existing business relationships, so Mercado was not liable to the Bart Group for tortious interference with its contracts. On the question of whether Mercado owed any of the Bart Group damages, the jury found that neither Bart Enterprises nor any of its five assignees had been damaged by Mercado’s breach of the contract. The jury had been instructed that it could award nominal damages, but it chose not to do so. The Bart Group did not object to the verdict on inconsistency grounds, or on any other grounds, before the jury was dismissed.

The district court entered a final judgment on February 4, 2009, and the parties filed post-judgment motions. The Bart Group filed motions asking the court to: (1) amend or “correct” the judgment to clarify the parties’ intellectual property rights and to add nominal damages for the Bart Group; (2) grant it a judgment including nominal damages or amend or clarify the form of the final judgment to include nominal damages; or (3) grant a new trial on the issue of nominal and actual damages; and (4) conduct a status conference. Mercado filed a renewed motion for judgment as a matter of law on the Bart Group’s breach of contract claim against him and on his breach of contract and breach of fiduciary duty counterclaims. He also filed a motion to alter or amend the judgment, which had indicated that the Bart Group had prevailed “on all claims.” As Mercado’s motion pointed out, he had prevailed on the Bart Group’s tortious interference claims.

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Walter Int'l Productions v. Walter Mercado Salinas, 650 F.3d 1402, 80 Fed. R. Serv. 3d 1166, 2011 U.S. App. LEXIS 17508, 2011 WL 3667597 (11th Cir. 2011).

650 F.3d 1402 (Walter Int'l Productions v. Walter Mercado Salinas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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