ZF MERITOR LLC v. Eaton Corp.

800 F. Supp. 2d 633, 2011 U.S. Dist. LEXIS 85709, 2011 WL 3419508
District Court, D. Delaware·Decided August 4, 2011·No. Civil 06-623-SLR·Published·Cited by 2 cases

Opinion

MEMORANDUM OPINION

SUE L. ROBINSON, District Judge.

I. INTRODUCTION

Plaintiffs ZF Meritor LLC (“ZFM”) and Meritor Transmission Corporation (“Meritor”) (collectively, “plaintiffs”) filed this action against defendant Eaton Corporation (“defendant”) on October 5, 2006, alleging violations of §§ 1 and 2 of the Sherman Antitrust Act, 15 U.S.C. §§ 1-2, and § 3 of the Clayton Act, 15 U.S.C. § 14, (D.I. 1) At all times relevant prior to trial, plaintiffs and defendant were rival manufacturers of Class 8 commercial truck transmissions. Following a trial, defendant was found to have violated §§ 1 and 2 of the Sherman Antitrust Act and § 3 of the Clayton Act. (D.I. 226) The issue of damages was not tried. (Id.) Currently before the court is plaintiffs’ motion for reconsideration (D.I. 158) of the court’s order (D.I. 145) excluding the damages opinion testimony of plaintiffs’ expert, Dr. David W. DeRamus (“DeRamus”). For the reasons stated below, plaintiffs’ motion is denied.

II. BACKGROUND

The court incorporates by reference its Daubert opinion of August 20, 2009, 646 F.Supp.2d 663 (D.Del.2009). (D.I. 144, 145) In that opinion and its accompanying order, the court granted defendant’s motion to exclude DeRamus’ expert report on damages because it was based on faulty underlying data: a single page from the “Revised Strategic Business Plan.” (D.I. 144 at 7) However, the court found that the nature of defendant’s conduct (in terms of antitrust injury) was adequately addressed by DeRamus and, therefore, the case was bifurcated, and trial on liability was conducted during the subsequent weeks. On October 8, 2009, the jury found that defendant had violated §§ 1 and 2 of the Sherman Antitrust Act, and § 3 of the Clayton Act. (D.I. 217) After trial, defendant renewed its motion for judgment as a matter of law (D.I. 245), which was denied by the court on March 10, 2011, 769 F.Supp.2d 684 (D.Del.2011). (D.I. 259, *636 260) Plaintiffs motion for reconsideration of the court’s Daubert order was then administratively closed as moot.

As it turns out, the court was in error to not decide the merits of plaintiffs’ motion for reconsideration, as the issue of damages must be resolved before a final judgment is entered, see DL Resources, Inc. v. FirstEnergy Solutions, Corp., 506 F.3d 209, 213 (3d Cir.2007) (citing Liberty Mutual Ins. Co. v. Wetzel, 424 U.S. 737, 744, 96 S.Ct. 1202, 47 L.Ed.2d 435 (1976)), and trial on the issue of damages cannot go forward in the absence of expert testimony. Therefore, the court has “resurrected” the motion in order to substantively rule on plaintiffs’ contentions that the court should reconsider its ruling to exclude DeRamus’ expert testimony under Daubert.

III. LEGAL STANDARD

The purpose of a motion for reargument or reconsideration is to correct manifest errors of law or fact or to present newly discovered evidence. Max’s Seafood Cafe ex rel. Lou-Ann, Inc. v. Quinteros, 176 F.3d 669, 677 (3d Cir.1999). Accordingly, a court should alter or amend its judgment only if the movant demonstrates at least one of the following: (1) a change in the controlling law; (2) availability of new evidence not available when the court issued its order; or (3) a need to correct a clear error of law or fact or to prevent manifest injustice. See Id.; see also, Schering Corp. v. Amgen, Inc., 25 F.Supp.2d 293, 295 (D.Del.1998).

A motion for reargument is not properly premised on a request that a court rethink a decision already made. Glendon Energy Co. v. Borough of Glendon, 836 F.Supp. 1109, 1122 (E.D.Pa.1993). Motions for reargument may not be used “to argue new facts or issues that inexcusably were not presented to the court in the matter previously decided.” Brambles USA, Inc. v. Blocker, 735 F.Supp. 1239, 1240 (D.Del.1990). Reargument, however, may be appropriate where “the court has patently misunderstood a party, or has made a decision outside the adversarial issues presented to the court by the parties, or has made an error not of reasoning but of apprehension.” Id. at 1241.

IV. DISCUSSION

A. Motion for Reconsideration

Plaintiffs motion for reconsideration is divided into two parts: the first was filed before trial (D.I. 158), and the second is a modification of the first in light of developments at trial. (D.I. 227) Plaintiffs make several arguments in support of admitting DeRamus’ expert report. First, they argue that the report is admissible in its current form because the Strategic Business Plan on which it is based is reliable in view of the testimony of witnesses at trial. (Id. at 5-7) Next, plaintiffs argue that the report is admissible in its current form because the Strategic Business Plan itself was admitted at trial, and experts are allowed to rely on evidence that is admitted at trial in forming their opinions. (Id. at 7-11) Finally, plaintiffs argue that DeRamus should be allowed to modify his report to reflect reliance on different data (such as ZFM profits) because the court found only that the data he relied on was flawed, not his underlying methodology. (Id. at 11-14)

1. Reliability of the Strategic Business Plan in view of witness testimony

Plaintiffs argue that witness testimony established the reliability of the Strategic Business Plan and, therefore, DeRamus should be allowed to rely on it in his expert report. (D.I. 227 at 5-7) However, there is nothing new in the witnesses’ *637 testimony that provides the court with a reason to reverse its previous finding. The witnesses’ testimony only states that the Strategic Business Plan was prepared at the behest of Martello, and was revised several times. (Id.) It says nothing about the plan’s accuracy, or the reasonableness of its estimates. Furthermore, the court was already well aware of the circumstances surrounding the creation of the plan as DeRamus had testified to its source during an evidentiary hearing, and wrote about it in his declaration. (D.I. 158 at 3)

2. DeRamus’ ability to rely on the Strategic Business Plan after it was admitted into evidence during trial.

Plaintiffs misinterpret the effect of the admission of the Strategic Business Plan on DeRamus’ ability to rely on it in his expert report. While plaintiffs are generally correct that experts are allowed to rely on admissible evidence, its admissibility does not change its sufficiency or reliability under Rules 702 and 703 of the Federal Rules of Evidence.

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ZF MERITOR LLC v. Eaton Corp., 800 F. Supp. 2d 633, 2011 U.S. Dist. LEXIS 85709, 2011 WL 3419508 (D. Del. 2011).

800 F. Supp. 2d 633 (ZF MERITOR LLC v. Eaton Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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