Editorial Caballero, S.A. De C v. v. Playboy Enterprises, Inc.
359 S.W.3d 318
Tex. App.2012Background
- EC and GSI published a Spanish-language Playboy in Latin America; PEI licensed for U.S. distribution and later terminated due to alleged nonpayment; trial courts and juries ruled against EC and GSI on multiple counts; EC/GSI sought new trial on jury misconduct and challenged evidentiary sufficiency; PEI won breach-of-contract, fraud, antitrust, and theft claims with damages and attorneys’ fees.
- The second trial proceeded March 31, 2010; jury found against EC/GSI on their claims and for PEI on PEI’s counterclaims; judgment included $410,000 breach damages, $1,680,000 in attorneys’ fees, and $500,000 appellate fees.
- EC and GSI appealed raising jury-misconduct and sufficiency challenges; PEI defended the verdict by objecting to the affidavits and arguing proper legal standards.
- The court affirmed the judgment, holding no jury-misconduct outside influence was proven and that the evidence supported the verdict on the disputed claims.
- The court treated the Illinois law questions as resolved by law-of-the-case and found no reversible error in the breach-of-contract and fee provisions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Juror misconduct and new-trial standard | EC/GSI claim outside-influence; affidavits show deliberation-era matters | PEI contests admissibility; no outside influence proven | No abuse of discretion; affidavits insufficient; no new-trial required |
| Sufficiency of evidence for PEI’s adverse findings | Evidence legally/ factually supports breach, fraud, antitrust, theft against PEI | Evidence insufficient or improperly focused; misapplication of law | Evidence legally and factually sufficient to support adverse findings against EC/GSI |
| PEI’s breach-of-contract counterclaims and damages | EC/GSI breached License and Renegotiated Payment Plan; damages supported | Counterclaims lack proper support; Illinois-law issues improper | PEI’s counterclaims upheld; damages affirmed; Illinois-law issues waived or resolved by law-of-the-case |
| Illinois-law good-faith duty and damages segregation | Illinois-law duty applied to contract; fees authorized | Wrong law and lack of segregation | Applicable law and fee award upheld; segregation argument waived |
Key Cases Cited
- Golden Eagle Archery, Inc. v. Jackson, 24 S.W.3d 362 (Tex. 2000) (outside influence and Rule 327(b) guidance)
- City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (standards for legal/factual sufficiency, deference to jury)
- Dow Chemical Co. v. Francis, 46 S.W.3d 237 (Tex. 2001) (standard for sufficiency review (no-evidence/factual))
- Del Lago Partners, Inc. v. Smith, 307 S.W.3d 762 (Tex. 2010) (standard of review for evidentiary sufficiency, appellate deference)
- Brandt v. Surber, 194 S.W.3d 134 (Tex. App.-Corpus Christi 2006) (affidavits and outside influence limitations)
- Soliz v. Saenz, 779 S.W.2d 929 (Tex. App.-Corpus Christi 1989) (definition of outside influence; deliberations impact)
- Perry v. Safeco Co., 821 S.W.2d 279 (Tex. App.-Houston 1st Dist. 1991) (outside influence considerations)
- Rosell v. Cent. W. Motor Stages, Inc., 89 S.W.3d 643 (Tex. App.-Dallas 2002) (guidance on jury deliberations and outside influences)
- Hefner memos reference (McQuarrie v. State), 2011 Tex.App. LEXIS 2859 (Tex. App.-Corpus Christi 2011) (internet research as outside influence under Rule 606(b))