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331 F. Supp. 3d 1173
D. Or.
2018
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Background

  • Plaintiff Max Zweizig, former IT director of Northwest Direct Teleservices (NDT), sued defendant Timothy Rote claiming Rote aided and abetted NDT in retaliating against Zweizig by publishing a blog after Zweizig prevailed in prior arbitration on a whistleblower retaliation claim.
  • All corporate defendants defaulted; Rote proceeded to a two‑day jury trial and the jury awarded $1,000,000 in noneconomic damages to Zweizig.
  • Rote (pro se) moved under Fed. R. Civ. P. 59 and 60 for a new trial or to vacate judgment, asserting improper closing argument, insufficient evidence, flawed jury instructions, erroneous evidentiary rulings, juror contact, and newly discovered evidence.
  • Rote also objected to the form of judgment, arguing Oregon’s noneconomic damages cap, ORS 31.710, limits recovery to $500,000 and that applying the cap would violate the Oregon Constitution's remedy clause.
  • The court denied the new trial motion on all grounds but held ORS 31.710 applies to employment claims seeking purely emotional/noneconomic damages and capped Zweizig’s award at $500,000; the cap was deemed constitutional as applied here.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Motion for new trial based on improper closing argument Closing was proper and any remarks did not prejudice verdict Closing urged the jury to "send a message" and impermissibly sought punitive effect Denied; remarks not so pervasive as to show jury influenced by passion/prejudice and plaintiff testimony supported damages
Sufficiency of evidence for liability Evidence (blog contents, timing, license, testimony) supports aiding/abetting retaliation Insufficient evidence to show Rote aided/abeted or acted with retaliatory motive Denied; jury verdict not against clear weight of evidence
Jury instructions and preserved objections Instructions correct and consistent with Oregon law Some instructions (causation) misstated law; objections not preserved Denied; no plain error—instructions consistent with Oregon standards for "substantial factor" causation
Applicability and constitutionality of ORS 31.710 cap Cap inapplicable to employment claims for purely emotional injury or is unconstitutional as applied Statute covers damages "arising out of bodily injury, including emotional injury" and is constitutional here Held applicable to pure emotional injury in employment claims; cap reduces $1,000,000 award to $500,000 and is constitutional as applied (not a paltry remedy here)

Key Cases Cited

  • Zhang v. Am. Gem Seafoods, Inc., 339 F.3d 1020 (9th Cir.) (standards for Rule 59 new trial review)
  • Molski v. M.J. Cable, Inc., 481 F.3d 724 (9th Cir.) (grounds for new trial: verdict contrary to clear weight of evidence, false evidence, or miscarriage of justice)
  • Hemmings v. Tidyman's Inc., 285 F.3d 1174 (9th Cir.) (high threshold for improper closing argument raised post‑trial)
  • Allied Chem. Corp. v. Daiflon, Inc., 449 U.S. 33 (U.S.) (trial court discretion to grant a new trial)
  • Tenold v. Weyerhaeuser Co., 127 Or. App. 511 (Or. Ct. App.) (application of ORS 31.710 in employment‑related tort claims discussed)
  • Vasquez v. Double Press Mfg., Inc., 288 Or. App. 503 (Or. Ct. App.) (Article I, §10 remedy‑clause analysis of ORS 31.710; cap unconstitutional for grievous injuries)
  • Rains v. Stayton Builders Mart, Inc., 289 Or. App. 672 (Or. Ct. App.) (applied Vasquez; cap unconstitutional where it leaves only a paltry remedy)
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Case Details

Case Name: Zweizig v. Nw. Direct Teleservices Inc.
Court Name: District Court, D. Oregon
Date Published: Jul 25, 2018
Citations: 331 F. Supp. 3d 1173; No. 3:15-cv-02401-HZ
Docket Number: No. 3:15-cv-02401-HZ
Court Abbreviation: D. Or.
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    Zweizig v. Nw. Direct Teleservices Inc., 331 F. Supp. 3d 1173