Zagami, Inc. v. James A. Crone, Inc.

74 Cal. Rptr. 3d 235, 160 Cal. App. 4th 1083, 2008 Cal. App. LEXIS 346
CourtCalifornia Court of Appeal
DecidedMarch 10, 2008
DocketD049563, D050090
StatusPublished
Cited by97 cases

This text of 74 Cal. Rptr. 3d 235 (Zagami, Inc. v. James A. Crone, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zagami, Inc. v. James A. Crone, Inc., 74 Cal. Rptr. 3d 235, 160 Cal. App. 4th 1083, 2008 Cal. App. LEXIS 346 (Cal. Ct. App. 2008).

Opinion

Opinion

McCONNELL, P. J.

Defendant James A. Crone, Inc. (Crone), appeals a judgment in favor of plaintiff Zagami, Inc. (Zagami), entered on a special verdict. The jury found Crone breached a contract with Zagami for the rental and delivery of a “skiploader” tractor Zagami supplied to Crone for use at a jobsite Crone managed. The jury awarded Zagami damages of $15,500 on its breach of contract claims and on its common count for open book account. However, for purposes of Zagami’s common count for goods and services rendered, the jury valued the skiploader, which disappeared from the jobsite, at $30,000. In subsequent briefing the trial court requested, Crone sought to have the lesser award entered as the amount of the judgment based on what it described as an “unambiguous” jury verdict. Zagami argued the proper amount of the judgment should be a minimum of $30,000. The court agreed mostly with Zagami, and entered judgment against Crone for $30,000.

The court subsequently determined Zagami was the prevailing party under the parties’ written rental agreement, and awarded attorney fees, costs and prejudgment interest. The court entered an amended judgment for Zagami, which Crone separately appealed. 1

Crone contends the court erred in entering a monetary judgment in favor of Zagami in any amount because the jury’s award of $15,500 to Zagami on its breach of contract and open book account claims is “fatally inconsistent” with its determination the skiploader was worth $30,000 when it disappeared. Crone contends it is entitled to a new trial on damages and liability. Crone further contends the court erred when it rejected Crone’s proffered estoppel instruction. Finally, regarding the award of attorney fees, Crone contends the court erred when it determined Zagami was the prevailing party under the contract because the special verdict was ambiguous regarding whether the contract contained an attorney fees provision.

We conclude the court erred when it entered judgment for Zagami in the amount of $30,000 because the damages findings in the special verdict are *1087 hopelessly ambiguous. We reach this conclusion although neither party objected to the verdict before the jury was discharged. We further conclude the court did not err in rejecting Crone’s estoppel instruction. We therefore reverse the judgment and remand the matter for a new trial, but only on the issue of damages. Finally, in light of the limited reversal of the damages portion of the judgment, we also reverse the attorney fees award in favor of Zagami.

FACTUAL AND PROCEDURAL BACKGROUND

In March 2003 Crone rented a skiploader from Zagami for Crone’s use at an eight-acre construction project it managed known as the Signature Pavilion shopping center located in Escondido, California. Crone had rented various pieces of equipment from Zagami for many years for use in its construction business.

A dispute arose between the parties when the skiploader vanished from the construction project. Crone took the position Zagami never delivered the skiploader to the project. Alternatively, Crone contended that if Zagami delivered the skiploader to the construction site, the delivery was ineffective to transfer responsibility to Crone for its disappearance because no representative from Crone accepted delivery. Zagami claimed it delivered the skip-loader to the jobsite, a Crone agent accepted delivery, and Crone was responsible for the loss either under the terms of the parties’ rental agreement signed by Crone’s agent, or as a result of the parties’ course of dealing. Zagami sued Crone in 2004 for breach of contract, breach of the implied covenant of good faith and fair dealing and common counts for goods and services rendered and open book account.

Zagami proffered evidence at trial regarding the circumstances surrounding the ordering, delivery and acceptance of the missing skiploader. Zagami also put on evidence regarding the parties’ customs and practice in ordering and delivering equipment over the course of the parties’ business relationship. Zagami’s expert testified the value of the lost skiploader was between $30,000 and $35,000. Zagami also sought damages for loss of rental income due to the skiploader’s disappearance, based on daily, weekly and monthly rental rates of $185, $740, and $2,220, respectively, as provided in the written rental agreement. Crone did not offer any evidence to rebut Zagami’s expert, but instead took the position it never received or accepted the skiploader, and thus was not liable for its loss or for the loss of rental income.

At the conclusion of the presentation of evidence, in hearings outside the presence of the jury, Crone moved for nonsuit based on a bailment theory of liability and the lack of evidence of any negligence by Crone in connection *1088 with the loss of the skiploader. The court denied the motion, finding negligence principles did not apply because Zagami elected to pursue Crone under a breach of contract theory.

The court next rejected Zagami’s request to use a general verdict form, and cautioned the parties the draft of the special verdict they proposed was “confusing” and posed a risk of allowing “duplicative damages.” The court recognized the parties’ dispute was really “simple”—whether Crone received and accepted delivery of the skiploader through its ostensible agent, which the court opined would be decided by the jury largely on the basis of witnesses’ credibility.

A. Jury Instructions

The court instructed the jury that if it found liability on more than one cause of action, an award of damages would be limited to the value of the skiploader and rent, and only one damage figure would apply to each and every cause of action: “As counsel indicated, were you to find liability on any of the causes of action and to the issue of damages, you should understand that the only request for damages has been the fair market value of the skiploader and rent. So we don’t provide for duplicative, triplicate, and so on, on damages ... a damage finding of one amount in each and every cause of action is the only amount that we will be giving. Everybody understand that? Good.”

During deliberations, the jury submitted the following questions to the court:

“(1) Can we ask both parties to pay for their own lawyer’s fees and other costs involved in the case as part of the settlement?
“(2) Can we make a dollar amount for less than they are asking also? For instance one dollar and up?”

The court gave the jury the following written response (reviewed and agreed to by counsel):

“Question No. 1: The judge will make the determination as to attorney fees and costs, not the jury.
“Question No. 2: The jurors make a determination based on the facts and evidence as to the damages, if any.”

B. The Special Verdict

The jury subsequently returned a verdict in favor of Zagami on each of its four causes of action, summarized as follows:

*1089

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Cite This Page — Counsel Stack

Bluebook (online)
74 Cal. Rptr. 3d 235, 160 Cal. App. 4th 1083, 2008 Cal. App. LEXIS 346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zagami-inc-v-james-a-crone-inc-calctapp-2008.