Winters v. Patel

154 F. App'x 299
Court of Appeals for the Third Circuit·Decided November 14, 2005·No. 04-4072, 04-4263, 04-4792·Unpublished·Cited by 1 cases

Opinion

OPINION OF THE COURT

SCIRICA, Chief Judge.

In this diversity case, the District Court denied Appellant Gary Borger’s motions for judgment as a matter of law and a new trial following a jury verdict in favor of *301 Cross-Appellant Susan Winters. 1 Additionally, the District Court denied Winters’s motions for supplemental fees and prejudgment interest, although the court gave Winters leave to refile her motion for supplemental costs and fees pending the outcome of this appeal. We will affirm and remand to the District Court for a determination on the issue of supplemental attorney’s fees and costs.

I.

Because we write for the parties, we will provide only a brief recitation of the facts. On April 17,1997, Winters hired Borger to represent her in a divorce action against her former husband Mr. Ronald Patel. In the ensuing divorce action, Winters and Mr. Patel eventually agreed Mr. Patel would pay Winters a total of $143,000 in four installments. As part of the divorce settlement, approved by the court on January 7, 1999, Mr. Patel agreed to provide his 401(k) Plan as security and take out an insurance policy naming Winters beneficiary in an amount sufficient to cover his obligations. The divorce settlement did not name either the 401(k) Plan or the insurance policy as the exclusive method of payment in the event of Mr. Patel’s death.

To secure the debt through Mr. Patel’s 401(k) Plan, Winters needed to obtain either a Qualified Domestic Relations Order (“QDRO”) or a survivors annuity. Borger advised Winters to enter into the divorce settlement, although it contained neither of these and despite his knowledge that Winters might not ever legally qualify for a QDRO.

Mr. Patel died on January 7, 2000, before he could complete his obligation to Winters. As of that date, Borger had done nothing to perfect the security interests provided in the divorce settlement. Over a month went by after Mr. Patel’s death before Borger attempted to collect on Winters’s behalf. By that time, however, Mr. Patel’s widow, Maryagnes Frangipanni Patel, had acquired the benefits from both the 401(k) Plan and the insurance policy. Unaware of Mrs. Patel’s actions, Winters signed a Release and Settlement Agreement (“the Release”) in a separate action (the “privacy action”) filed against several defendants, including the Patels. Winters received consideration for her agreement to the Release.

After learning of Mrs. Patel’s actions, Winters commenced several actions against Mr. Patel’s Estate, Mrs. Patel, and others, attempting to collect the amount due under the divorce settlement. When these failed, Winters commenced this action against Borger, claiming breach of contract and malpractice. 2 The case went to a jury, which returned a verdict on both causes of action in favor of Winters and awarded her $296,544.70 in compensatory damages, including attorney’s fees and costs up to the date of trial.

At the end of Winters’s case and again at the close of evidence, Borger moved for judgment as a matter of law under Rule 50. Borger also moved for a new trial or to alter or amend judgment under Rule 59. 3 The District Court denied each motion. Borger appeals these orders as well *302 as several of the District Court’s evidentiary rulings. We have jurisdiction under 28 U.S.C. § 1291.

II.

Borger’s primary contention on appeal is that the evidence at trial was insufficient to support the jury’s findings of malpractice and breach of contract. We review a District Court’s sufficiency of the evidence determination de novo. W.V. Realty, Inc. v. N. Ins. Co., 334 F.3d 306, 311 (3d Cir.2003) (citing Lightning Lube, Inc. v. Witco Corp., 4 F.3d 1153, 1166 (3d Cir.1993)). The District Court’s decision will stand unless, “viewing the evidence in the light most favorable to the non-movant ..., there is insufficient evidence from which a jury reasonably could find liability.” Id. We review the District Court’s decision to deny a motion for a new trial for abuse of discretion. Id.

According to Borger, any negligence Winters proved with regard to his handling of the 401 (k) Plan is irrelevant because the Plan was not intended to secure Mr. Patel’s debt in the event of his death. But on this point, the evidence at trial was conflicting on the intended function of the 401 (k) Plan, and this challenge must be resolved in favor of the jury’s verdict. Thus, the verdict supports the view that the parties intended the 401(k) Plan to secure Mr. Patel’s debt in the event of any default, including death.

In addition, Winters provided evidence showing Borger acted negligently when he included in the divorce settlement a security interest that he knew may never be secured. According to Winters’s testimony, she thought the divorce settlement secured the debt owed to her. A reasonable jury could find, had Winters known one of the two security devices provided in the divorce settlement was possibly ineffective, she would have acted differently to obtain a more secure agreement. Therefore, the evidence was sufficient to support the jury’s verdict that Borger’s conduct breached his contractual and professional duties to Winters and caused her damage.

Borger also challenges the jury’s damage award on two grounds. First, he asserts his conduct caused Winters no damage because Mr. Patel’s debt to Winters was “paid” by the parties to the privacy action. However, Winters claimed at trial that she was not in fact paid. The jury was entitled to accept Winters’s version of events and reject Borger’s contention that the consideration Winters obtained constituted payment for Mr. Patel’s debts. We also reject Borger’s contention that Packard-Bamberger & Co., Inc. v. Collier, 167 N.J. 427, 771 A.2d 1194, 1204 (2001), requires a court, and not a jury, to decide the issue of attorney’s fees and costs. The Packardr-Bamberger decision did not address the jury’s authority to decide such issues, and, in fact, did not involve a jury trial at all.

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Winters v. Patel, 154 F. App'x 299 (3d Cir. 2005).

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