Kingsley Capital Management LLC v. Sly
2:10-cv-02243
D. Ariz.Jan 17, 2014Background
- Plaintiffs moved for a new trial and/or to alter or amend judgment after a two-step jury verdict found liability but awarded no damages.
- The jury initially addressed six liability theories and six damage theories; the court bifurcated liability and damages to reduce confusion.
- The Arizona Securities Act claim was found in the plaintiffs' favor, but the jury awarded $0 damages on that claim via supplemental verdict questions.
- After deliberations, the court reserved judgment on the securities claim and later granted post-verdict judgment as a matter of law against the securities claim for lack of materiality.
- Plaintiffs declined to request further jury deliberations before discharge, thereby waiving objections to any inconsistent verdicts.
- Dr. Kingsley seeks either damages of $1,227,916 or a new trial on damages; the court denied both the motion for new trial and the alter/ amend judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the damages verdict is inconsistent with liability | Kingsley argues no damages despite liability should be remediable. | Sly contends waivers preclude challenge to an inconsistent verdict after discharge. | Waived; no new trial granted due to waiver on discharge. |
| Whether the court should grant a new trial on damages | Kingsley asserts the injury and damages were proven; new trial warranted. | Sly argues the verdict and post-verdict judgment on the securities claim foreclose a new damages trial. | Denied; post-verdict judgment and waiver foreclose new damages trial. |
| Whether the court properly denied alter or amend under Rule 59/50 framework | Kingsley seeks amended judgment to award damages as a matter of law. | Sly maintains Rule 50(b) waiver and lack of newly discovered evidence/changes in law. | Denied; amendment treated as improper post-judgment judgment notwithstanding the verdict. |
| Whether the waiver rule applies to a damages-liability inconsistency in this case | Hazle exception could excuse failure to object to inconsistency. | Hazle does not apply because verdict included both liability and damages. | Waiver applies; objection not raised before discharge. |
Key Cases Cited
- Passantino v. Johnson & Johnson Consumer Prods., 212 F.3d 493 (9th Cir. 2000) (new trial standards mirror federal practice for errors and miscarriage of justice)
- Landes Const. Co., Inc. v. Royal Bank of Canada, 833 F.2d 1365 (9th Cir. 1987) (definite and firm conviction of a jury mistake required for new trial)
- Hazle v. Crofoot, 727 F.3d 983 (9th Cir. 2013) (damages-only issue differs from inconsistent liability-damages verdicts)
- Kode v. Carlson, 596 F.3d 608 (9th Cir. 2010) (waiver of objections to inconsistent verdicts unless raised prior to discharge)
- Philippine Nat. Oil Co. v. Garrett Corp, 724 F.2d 803 (9th Cir. 1984) (requirement to object to inconsistency before jury discharge)
- Janes v. Wal-Mart Stores, Inc., 279 F.3d 883 (9th Cir. 2002) (preservation of Rule 50 objections requires timely motion at close of evidence)
