Lead Opinion
{1} Plаintiff-Counterdefendant-Appellant, Diversey Corporation (Diversey), appeals from a judgment entered after a jury awarded Diversey $6,590.20 on a claim for unpaid debt, but also awarded DefendantsCounterplaintiffs-Appellees, Chem-Source Corporation and its owner, Curtis Hughes (collectively, Chem-Source), $128,500 for tortious interference with existing and prospective contractual relations “and/or” $385,500 for violation of the Unfair Practices Act (UPA). See NMSA 1978, §§ 57-12-1 to -22 (1967, as amended through 1995). Although the jury found that Diversey’s conduct was willful, Diversey does not appeal this finding or the judge’s award of increased damages for willfulness.
{2} Diversey raises five issues on appeal: (1) whether jury instruction number five was an incorrect statement of the law; (2) whether the court erred in refusing Diversey’s requested defamation instructions; (3) whether the court erred in allowing Dr. Parker, the expert fоr Chem-Source, to testify concerning lost profits without first establishing that Diversey caused the claimed losses; (4) whether the jury’s damage verdict was excessive (because the jury relied on a mistaken measure of damages and because the jury failed to reduce the award to present value); and (5) whether the final verdict form, which included “and/or” language, resulted in double recovery. For the following reasons, we affirm on all but one issue. We remand solely to allow the trial court to enter a judgment that reduces the jury’s award of future lost profits to present value.
I. FACTUAL BACKGROUND
{3} Evidence and testimony at trial adduced the following information. Some of the facts set out below were disputed by the parties. Chem-Source, a corporation owned by Curtis Hughes (Hughes), distributed commercial cleaning supplies for Rocky Mountain Proclean (Proclean), a mаnufacturer. Prior to starting Chem-Source, Hughes was a successful distributor of commercial cleaning products for other companies. While distributing Proclean products, Randy Blackburn (Blackburn), a Proclean sales representative, provided sales and servicing assistance to Chem-Source.
{4} In 1990, Diversey purchased Proclean. At that time, Diversey assumed all of Proclean’s contractual rights and obligations, including contract rights and obligations with distributors. Blackburn remained with Diversey until 1992. Once Blackburn left Diversey, Chem-Source no longer received assistance from Diversey regarding sales and servicing its accounts.
{5} When Diversey acquired Proclean, Hughes believed that Chem-Source would be able to distribute, not only the Proclean line of products, but also the superior Diversey line. However, this never happened. Initially, Mike Downey (Downey), a Diversey district manager, told Blackburn that Chem-Source would be able to distribute the Diversey line of products. However, when Chem-Source actually ordered Diversey products, Diversey took the order but never shipped the products. Later, Downey and Tom Fisher (Fisher), Diversey’s sales area supervisor, told Blackburn that if Chem-Source clients wanted Diversey products, they would have to go to another distributor because Hughes was not going to be a distributor for Diversey products. Downey and Fisher also told Blackburn that Chem-Source was not important business for Diversey, and that if Blackburn wanted to receive his commissions, he would have to make sales through distributors other than Hughes because he would not be paid for the Chem-Source sales.
{6} Even Hughes’ orders of non-Diversey products, such as Proclean products, were not being delivered promptly, so that Chem-Sourcе’s customer service suffered. In addition, Diversey began charging Chem-Source retail prices rather than distributor
{7} Diversey required Hughes to reveal confidential information on the types and quantities of products he was distributing, as well as customer lists with sales information. Hughes considered this information confidential and did not want to reveal it to Diversey because the two companies were competing for the same customers. Hughes did eventually turn over the information in order to continue receiving shipments of cleaning products.
{8} During the same time period Hughes discovered that Chem-Souree dispensers and equipment were removed from his client’s businesses without his knowledge, that they were replaced with Diversey dispensers and equipment, and that Diversey was “blitzing” his clients. The blitzing caused Chem-Source to lose at least six of its best customers. The blitz involved Diversey representatives going to Chem-Source customers and telling them falsely that they would need to find a new distributor because Chem-Source would no longer be in business. Diversey representatives approached Sharon DiVasto and Steve Armbrecht, two restaurant owners who did business with Chem-Source, and told them that Diversey was going to force Curtis Hughes out of business. In addition, Hughes testified that Diversey told other Chem-Source clients that Chem-Source was going bankrupt. The blitz was an organized and cоncerted campaign by Diversey representatives to spread misleading information about Chem-Souree to its customers in an attempt to convince those customers to use Diversey as their supplier.
{9} In late 1991 or early 1992, Chem-Source purchased a second business, Dynachem. In some ways, Dynaehem was operated as a separate business from Chem-Source. For example, the Dynaehem accounts were maintained in a separate accounting system on Chem-Source’s computer. Dynaehem had its own phone number and separate advertising. In other ways, Dynaehem and Chem-Source were operated as one business: both were operated out of the same office, operated with the same assets and capital, and operated under the management of Hughes. Moreover, thе two companies filed the same tax returns. Hughes intended to merge the two companies in order to sell the more profitable products, but the problems caused by Diversey prevented this merger.
{10} In the spring of 1993, Hughes found another supplier and stopped distributing Proclean products for Diversey. Thereafter, Diversey sued Chem-Source for the amount due on its account, and Chem-Source counterclaimed for breach of contract, tortious interference with contractual relations, and violation of the UPA. Diversey appeals the jury’s verdict on the tortious interference and UPA claims.
II. DISCUSSION
A. Jury Instruction Number Five Was Not in Error
{11} Diversey argues that jury instruction number five is an incorrect statement of the law because it erroneously defines a simple breach of contract as an unfair trade practice, and because it does not include four elements sрecifically required by our Supreme Court to prove a violation of the UPA. See Ashlock v. Sunwest Bank,
1. Diversey Failed to Preserve Claimed Errors in Jury Instruction Number Five
{12} Absent fundamental error, or questions involving general public interest or jurisdiction, an appellate court will not review claimed errors unless they were preserved
{13} Diversey’s first argument is that the instruction as given improperly defines breach of contract as an unfair trade practice. See Stevenson v. Louis Dreyfus Corp.,
{14} Diversey also claims that the instruction is flawed because the trial court failed to instruct on the four Ashlock requirements for establishing a UPA violation. See Ashlock,
{15} Diversey claims that its requested jury instruction number nine addresses the Ashlock requirements. However, this is simply not the case. Requested instruction number nine, although mentioning the UPA in its introductory paragraph, essentially addresses Chem-Source’s tort claim, not the UPA violation, and does not include the Ashlock requirements. See Ashlock,
2. Jury Instruction Number Five is an Adequate Statement of the Law
{16} Even assuming that Diversey preserved this issue, its argument still fails. “In reviewing alleged errors relating to jury instructions, this Cоurt will consider whether all of the instructions, when read and considered together, fairly present the issues and the law applicable thereto.” Kestenbaum v. Pennzoil Co.,
{17} Diversey relies on Stevenson to argue that jury instruction number five misstates the law by equating an ordinary breach of contract with an unfair trade practice. See Stevenson,
To establish the claim of a violation of the Unfair Trade Practices Act, Plaintiff has the burden of proving the following contention:
1. Defendant failed to deliver the quantity of goods contracted for.
Plaintiff contends and has the burden of proving that Defendant’s violation of the Unfair Trade Practices Act caused his damages.
Defendant denies the contentions of Plaintiff.
Id. at 99,
{18} By contrast, the instruction given here, read in its entirety and in the context of the evidence presented, adequately expresses the requirement that a knowing misrеpresentation be made in conjunction with a failure to deliver the goods promised. Under the instruction given in this ease, a simple breach of contract would not result in a UPA violation. Here, instruction number five stated: “To establish the claim of unfair trade practices, Curtis Hughes and Chem-Source have the burden of proving the following contention: that Diversey knowingly made misrepresentations of any kind in at least one of the following ways: ... Diversey failed to deliver the quantity of goods and services contracted for.” Although this instruction may be inartfully drafted, it does adequately express the requirements of the law. See §§ 57-12-2(D)(17), 57-12-3. To find for Chem-Source, the jury had to find that Diversey made a knowing misrepresentation concerning its delivery of goods to Chem-Source. Given the extensive evidence of Diversey’s bad faith dealings with Chem-Source, including its approaching Chem-Sоurce customers with fallacious information concerning the future of Chem-Source, its removing Chem-Source dispensers and equipment from the premises of Chem-Source clients, and its refusal to ship products to Chem-Source because of trumped-up billing problems, among other things, the jury could, and did, find that Diversey knowingly misrepresented to Chem-Source that it would sell certain products to Chem-Source, which it then failed to deliver. Diversey’s conduct amounts to more than a simple failure to deliver. The instruction is consistent with both the statute and its common law interpretation. See, e.g., Stevenson,
B. The Trial Court Properly Refused Diversey’s Requested Defamation Instructions
{19} Diversey argues that the trial court erred by rejecting its requested instructions on defamation. Although Diversey requested that these instructions be included as elements of the intentional interference claim, the court rejected the instructions because they would add an element to the UPA claim and Chem-Source had not brought a claim for defamation. For reasons other than those given by the
{20} To prove intentional interference with (existing or prospective) contractual relations, a plaintiff must prove that the defendant improperly interfered with the plaintiffs contractual relations, either through improper means or improper motive. See M & M Rental Tools, Inc. v. Milchem, Inc.,
{21} Our position that proof of an underlying, independent tort, such as defamation, is not required to prove intentional interference is bolstered by the fact that this Court has adopted a definition of improper means that includes not only tortious behavior, but all “predatory” behavior. See M & M Rental Tools,
C. The Trial Court Properly Allowed Dr. Parker to Testify Concerning Lost Profits
{22} Diversey argues that the trial court erred by admitting the testimony of Dr. Parker, Chem-Souree’s expert, concerning
1. Improper Inclusion of Dynachem Losses Not Preserved
{28} Diversey failed to preserve for review its argument that Dr. Parker’s inclusion of Dynachem data in his estimate of Chem-Source’s lost profits was error. Diversey argues that it preserved the error by objecting, on four separate occasions, that Dr. Parker failed to show that Diversey caused Chem-Source’s losses. These objections, however, were not specific enough to alert the trial court that the problem was the inclusion of Dynachem data. See Shelley,
{24} In fact, the trial judge indicated that she did not understand Diversey’s objections to be raising issues concerning Dynachem. In a post-trial hearing on Diversey’s motion for relief and remittitur, the trial judge characterized Diversey’s objections to Dr. Parker’s testimony as concerning the lack of substantial evidence of causation, and stated that “Dynaehem’s issue was not specifically addressed to the Court at the time when the Court would have and could hаve dealt with it[.] ... I simply didn’t have the opportunity to address that particular issue.” Thus, we hold that Diversey did not preserve this error for review.
2. The Trial Court Did Not Abuse its Discretion by Admitting Dr. Parker’s Testimony Because a Proper Foundation Was Laid
{25} “The admission of expert testimony is within the sound discretion of the trial judge. The admission of expert testimony will not be reversed unless there has been an abuse of the trial court’s discretion.” Sanchez v. Molycorp, Inc.,
{26} Diversey argues that Dr. Parker’s testimony was based on an assumption, not evidence, that Diversey caused Chem-Source’s losses. Consequently, argues Diversey, there was no foundation for Dr. Parker’s expert testimony. We disagree. Unlike some medical malpractice cases, in which the expert must provide the facts showing that defendant caused plaintiffs injuries, sеe, e.g., Eis v. Chesnut,
{27} For example, Hughes testified that Diversey “blitzed” his customers, causing him to lose at least six of his best accounts. According to Hughes, the blitz involved Diversey representatives going to Chem-Source customers and telling them that they would need to find a new distributor because Chem-Source would no longer be in business. Both Sharon DiVasto and Steve Armbrecht, two restaurant owners who did business with Chem-Source, testified that Diversey representatives approached them at their restaurants, and told them that Diversey was going to force Curtis Hughes out of business. In addition, Hughes testified that Diversey told other Chem-Source clients that Chem-Source was going bankrupt. Downey, a Diversey district manager, admitted to contacting four of Chem-Source’s clients (La Residencia, the Bull n’ Bush, Red Cloud Cafe, and the Palace Restaurant), and Fisher, Diversey’s sales area
{28} In addition to evidence that Diversey “blitzed” Chem-Source customers, both Blackburn, now a Diversey sales representative, and Hughes testified that Diversey would not ship Diversey products to Chem-Source. Initially, Downey told Blackburn that Chem-Source could distribute the Diversey line of products, but, when Chem-Source actually ordered those products, Diversey took the order but failed to ship the Diversey products. Blackburn testified that, later on, Downey and Fisher told him that if Chem-Source clients wanted Diversey products, they would have to go to another distributor because Hughes was not going to be a distributor for Diversey products. Blackburn testified that Downey and Fisher told him that Chem-Source was not important business for Diversey, and that if Blackburn wanted to receive his commissions, he would have to make sales through distributors other than Hughes because he would not be paid for the Chem-Source sales.
{29} Even Hughes’ orders of non-Diversey products, such as Proclean, were not being delivered promptly, so that Chem-Source’s customer service suffered. Additionally, Diversey began charging Chem-Source retail prices rather than distributor prices. The consequence of this process was that Diversey would put Chem-Source’s account оn hold while Diversey and Chem-Source corrected any billing or payment problems resulting therefrom. However, while the account was on hold, Diversey would not ship any of Chem-Source’s orders, thereby delaying delivery to Chem-Souree’s clients, and limiting Chem-Source’s ability to make new sales or to service existing accounts.
{30} Diversey stopped participating in cooperative sales calls with Hughes, and stopped servicing Chem-Source equipment without informing Hughes. Hughes testified that Chem-Source dispensers and equipment were removed from his clients’ businesses without his knowledge and that they were replaced with Diversey dispensers and equipment. All this evidence, testified to by witnesses other than Dr. Parker, was sufficient to permit a jury to conclude that Diversey caused Chem-Source’s damages. Accordingly, this evidence adequately established the foundаtion for Dr. Parker’s testimony on damages.
{31} Moreover, Dr. Parker’s testimony is not precluded simply because the evidence outlined above is disputed. In cases where someone other than the expert lays the foundation, “a dispute concerning the factual predicate for the expert testimony would not justify exclusion of the testimony.” White,
{32} Finally, “[a]n expert’s opinion is not impermissibly speculative or lacking as to a factual basis where the expert gives a satisfactory explanation as to how he arrived at his opinion.” Sanchez,
appears unsatisfactory or based on unsatisfactory factors it is subject to being stricken.
The facts show that the basis for [the expert’s] testimony came from the testimony of the plaintiffs, and other witnesses. This being the case, the question of weight to be given [the expert’s] testimony was one for the jury to determine____We conclude that the trial court did not err in allowing the testimony ... because he explainedhow he arrived at his expert testimony, and because it was based on facts which were befоre the jury.
Harrison v. ICX, Illinois-California Express, Inc.,
D. The Jury’s Award Was Not Excessive
{33} Diversey argued both in its brief in chief and at oral argument that the jury failed to reduce its award for future lost profits to present value. Cf., e.g., Monessen Southwestern Ry. Co. v. Morgan,
{34} In addition, Diversey argues that the verdict is excessive because it is based on a mistaken measure of damages. According to Diversey, errors in Dr. Parker’s testimony created the mistaken measure of damages. In particular, Diversey attacks Dr. Parker’s (1) inclusion of Dynaehem sales data in the damage calculation; (2) assumption that statements made by Diversey about Chem-Source had any affect on Dynaehem sales; (3) reliance on hearsay regarding Chem-Source filing for bankruptcy; and (4) projections of future salary and wage expenses. For reasons discussed below, we disagree and affirm the damage verdict, subject only to our order that the award for lost future profits be reduced to present value.
{35} New Mexico courts “will not find an award of damages excessive except in extreme cases.” Ranchers Exploration & Dev.,
E. The “and/or” Language Included in Verdict Form 2A Was Stipulated to By The Parties and Any Error Was Not Preserved
{36} Diversey argues that including “and/or” in the verdict form rendered the jury’s verdict ambiguous, and as a consequence, Chem-Source improperly received double recovery for the same injury. Two interrelated reasons persuade us not to reverse the jury’s award based on the giving of an arguably erroneous verdict form. First, we will not consider arguments concerning matters that occurred off the record and that were not memorialized on the record after-the-fact either by the court or by the parties. See State v. Reynolds,
{37} Second, Diversey did not object to the inclusion of this “and/or” language at trial, and thus did not preserve the error for review. See Thompson Drilling, Inc. v. Romig,
{38} We note, however, that this ambiguous verdict issue highlights the extraordinary importance of preservation for appellate review. Preservation serves many purposes. It can prevent the need for appeal entirely by allowing the trial court to correct errors, see Garcia,
{39} Although it appears to us that Chem-Source did not recover twice for the same injury because of the “and/or” language, see Central Seс. & Alarm Co. v. Mehler,
{40} Finally, we will not address this question as a matter of fundamental error, as Diversey urges. First, the fundamental error doctrine generally does not apply in civil eases, see Gracia,
III. CONCLUSION
{41} For the foregoing reasons, we hold that jury instruction number five was not in error; the trial court properly rejected Diversey’s requested defamation instructions; and, the trial court properly allowed the Chem-Source expert to testify regarding Chem-Source’s lost profits. In addition, we hold that the jury’s award was not excessive because it was not based on a mistaken measure of damages and because Diversey failed to preserve any error regarding the addition of “and/or” to the verdict form. Because Diversey did not preserve this claimed error, we do not reach the question of double recovery. Finally, we remand so that the trial court can reduce the award for future lost profits to present value.
{42} IT IS SO ORDERED.
BOSSON, J., concurs.
Concurrence Opinion
(concurring in part, dissenting in part.)
{43} I respectfully dissent from the majority’s determination under subsection 11(A)(1) of the opinion that Diversey failed to preserve the claimеd error in Jury Instruction No. 5. I also dissent from the majority’s holding under subsection 11(A)(2) that the same instruction was a correct or even adequate statement of the law. I concur only in the remaining portion of the majority’s opinion.
I. PRESERVATION
{44} Contrary to the opinion’s holding, I believe that the transcript and record clearly demonstrate that Diversey adequately and properly objected to the amended instruction and preserved the issue for our review on appeal.
{45} When Diversey first objected to the instruction, the trial court, after considering arguments of opposing counsel, inserted the word “knowingly” to satisfy Diversey’s objection. After that amendment, Diversey later objected to the instruction a second time and for a different reason. This occurred as follows:
[Diversey’s trial counsel]: Yes, Your Honor.... We believe that in the context which it is written, that’s an incorrect statement of the law under the Unfair Practices Act. It is not a breach of contract. An unfair trade practice is not a breach of contract. The Unfair Practices Act requires it be falsely promised and knowingly failure to deliver.
This just — if you fail to deliver goods, you’ve got [trebled] damages.
[Trial Court]: I’ve already taken care of that by saying this has to be done by known misrepresentations. In other words, you’re misrepresenting what the person’s going to be able to get. So this will be given as modified.
After that exchange took place, the trial court and trial counsel moved on to other instructions.
{46} Diversey’s second objection indicates to me that it contested the amended instruction, making clear to the trial court that its insertion of the word “knowingly” had not corrected the problem Diversey still saw as existing in the instruction. The objection rеferred to the instruction “in the context which it is written.” This language indicates that Diversey considered the trial court’s previous insertion of the word “knowingly” in objecting a second time.
{48} Considering the substance of these objections, which should have alerted the trial court that the amendment did not cure the instruction, it is difficult to understand why the trial court insisted that her inclusion of the word “knowingly” cured the problem. In light of these objections and the context in which they were made, I also do not comprehend what else Diversey could have done to have alerted the trial court that there was still a problem with the instruction, even as first modified.
{49} I respectfully disagree with the majority’s essential holding that more should be expected of a litigant. Consequently, I would hold that Diversey preserved this claimed error by properly raising the issue below and invoking a ruling by the trial court. See Shelley,
II. JURY INSTRUCTION NO. 5
{50} I also disagree with the majority’s opinion that Jury Instruction No. 5 was an adequate statement of the law. The instruction read as follows:
To establish the claim of unfair trade practices, Curtis Hughes and Chem-Source have the burden of proving the following contention: that Diversey knowingly made misrepresentations of any kind in at least one of the following ways:
5. Diversey failed to deliver the quantity of goods and services contracted for.
{51} I would interpret the instruction to mean that a failure to deliver contracted goods or services constituted a knowing misi’epresentation. I believe the structure and language of the instruction supports this interpretation. It is a reasonable interpretation and one the jury probably made or could have easily made. The instruction was contrary to Stevenson,
{52} 1 cоncede that the reading of the instruction made by the majority is another way of interpreting the instruction. But even assuming that the majority’s interpretation is reasonable, I submit that we then have a situation in which the jury could have reasonably read the instruction in either one of two possible ways. If that is the case, then I would conclude that it was error to give an instruction that could so mislead the jury. If an instruction is worded in such a way that the jury can reasonably interpret it in a manner that is contrary to the law, isn’t that a good reason to reject the instruction? Such an instruction, in my view, is flawed.
{53} The majority relies on authority holding that each instruction must be considered in context of other instructions and the evidence adduced at trial. I do not take issue with that premise. Yet, I fail to see how the other instructions and the evidence presented in this case could have prevented the jury from being misled by the flawed instruction.
