Westmont Tractor Co. v. Touche Ross & Co.

110 F.R.D. 407, 1986 U.S. Dist. LEXIS 24278
CourtDistrict Court, D. Montana
DecidedJune 12, 1986
DocketNo. CV 82-102-M-CCL
StatusPublished

This text of 110 F.R.D. 407 (Westmont Tractor Co. v. Touche Ross & Co.) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westmont Tractor Co. v. Touche Ross & Co., 110 F.R.D. 407, 1986 U.S. Dist. LEXIS 24278 (D. Mont. 1986).

Opinion

OPINION AND ORDER

LOVELL, District Judge.

Following a jury verdict against defendant, plaintiff moves for entry of judgment on the verdict.

BACKGROUND

Plaintiff (hereafter also Westmont) commenced this action in 1982, seeking damages allegedly caused by the failure of defendant to conduct a proper audit of plaintiff’s business. The complaint alleged that defendant (hereafter also Touche Ross) was retained by plaintiff to perform an audit of plaintiff’s balance sheet as of [408]*408May 31, 1979; that Touche Ross thereafter agreed to perform a similar audit as of December 31, 1979; and that Touche Ross further performed an audit of plaintiffs financial condition as of December 31, 1980. Defendant additionally provided related tax assistance throughout the years 1979 and 1980.

Plaintiff alleged that defendant negligently and in breach of contract failed to properly audit the financial condition of Westmont in 1979 and in 1980, resulting in a severe understatement of Westmont’s allowance for doubtful accounts. In reliance on the accuracy of the overstated receivables, plaintiff allegedly made detrimental decisions regarding the continued operation of the business and suffered serious financial losses.

Trial commenced May 12, 1986, and continued for approximately two weeks. Prior to submission of the case to the jury, the Court granted motions to eliminate plaintiff’s claims of constructive fraud and negligent misrepresentation. The Court also granted defendant’s motion to dismiss the individual claims of Gary Gallagher, Westmont’s president and principal shareholder. The remaining issues consisted of breach of contract and negligence, including contributory negligence on the part of plaintiff.

Following more than four hours of deliberation, the jury returned a verdict entirely in favor of plaintiff and against defendant.1 A blanket award of damages was made in the amount of five million dollars. In an “extra display of diligence,”2 the jury included at the bottom of the verdict form several computations and some language relating to the manner in which the damage figure was calculated. This writing followed an asterisk, and another asterisk appeared immediately adjacent to the $5,000,000.00 figure. The Court instructed the jury that it was not necessary for them to include their calculations in the verdict and inquired of the foreperson whether he wished that portion included as a part of the verdict. The foreperson replied “no.” The Court thereafter asked all the members of the jury if they wanted the computational portion removed. The jurors unanimously voted to remove it.3 4The Court cut off the bottom portion of the verdict containing the figures and requested the clerk to seal it. The verdict was then published.

To allow the parties an opportunity to express their positions as to the propriety of the above procedure, the Court scheduled a hearing and ordered briefs regarding the content of the verdict. Plaintiff moved for entry of judgment on the verdict and arguments were heard on June 9, 1986.

ISSUES

1. Do the arithmetic figures and language volunteered by the jurors and contained at the bottom of the verdict form constitute part of the verdict?

2. Are counsel entitled to see the sealed portion of the verdict form to determine whether it has any impeachment value?

DISCUSSION

The critical issue to be resolved is whether counsel must be allowed to view the [409]*409material sealed by court order. A preliminary question, however, is whether the Court erred in initially removing this portion of the verdict — that is, whether the calculations expressed on the form actually constitute an integral part of the verdict itself.

Defendant claims that because the subject figures were included right on the verdict form, and because they were “tied” to the damage figure with an asterisk, the calculations constitute an integral part of the jury’s verdict.

Plaintiff claims that the content of the sealed matter comes within the ambit of the “no impeachment” rule and thus may not be disclosed to the parties. Plaintiff further claims that defendant’s failure to object to the procedure at the time the verdict was read, before the jury was discharged, constitutes a waiver of any objection to the procedure followed by the Court.

Courts recognize that “gratis comments by a jury of the reasoning which led it to its general verdict are unnecessary to the jury’s function of deciding the issues of the case,”4 and that such comments do not constitute part of the written verdict.5

It is well settled that a jury does not have to give reasons for its verdict. Barzelis v. Kulikowski, 418 F.2d 869 (9th Cir. 1969). It is equally clear that once a verdict has been returned neither the Court nor the parties should inquire into the reasoning process or motivation behind the verdict. Moores v. Navitrade A. A. of Panama, 94 F.R.D. 340, 342 (D.Me.1982); Roy v. Star Chopper Co., Inc., 584 F.2d 1124, 1136 (1st Cir.1978). This is true even when such information is volunteered by one or more members of the jury. Domeracki v. Humble Oil & Refining Co., 443 F.2d 1245, 1247 (3rd Cir. 1971); Smith v. Cupp, 457 F.2d 1098, 1100 (9th Cir.1972).

The Supreme Court of Montana has had occasion to consider an issue similar to that with which this Court is now presented. In Johnson v. SuperSave Markets, Inc., supra., the jury answered the questions on the special verdict form and granted a blanket amount of $17,000.00 in damages. The jurors then voluntarily added a handwritten list enumerating five separate elements of damage accounting for the total figure. It was clear from the jurors’ list that they had considered improper factors in making an award of damages. Absent the handwritten list, however, the verdict could not have been challenged. Johnson, 686 P.2d at 214.

Noting its reluctance to impeach the validity of a verdict by jurors’ testimony and affidavits, the court stated that it is improper “‘to delve into the thought processes of the jurors in connection with the completion of the special interrogatories.’ ”6 The court therefore held:

Applying this legal principle to the present facts, wé are not compelled to impeach a verdict with considerations of the jury which are voluntarily offered just as we uniformly refused to do so when the same information is elicited under oath through affidavits.

Johnson, 686 P.2d at 214. The court further held that the list would be treated as surplusaige and the verdict accepted as valid. Id. See also, Domeracki v. Humble Oil & Refining Co., supra., 443 F.2d at 1247.

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Bluebook (online)
110 F.R.D. 407, 1986 U.S. Dist. LEXIS 24278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westmont-tractor-co-v-touche-ross-co-mtd-1986.