*1 MANUFACTURING RESEARCH COR- PORATION, сorporation, a Florida Plaintiff-Appellee-Cross Appellant, COMPANY, corpo- GREENLEE TOOL ration, Defendant-Appellant-Cross Appellee.
No. 80-5175. United States Court of Appeals, Eleventh Circuit. Dec. 1982. *2 Wells, James E. Maguire, Voorhis & Sla- ter, Orlando, Fla., defendant-appellant- for appellee. cross Duckworth, Allen, industry, plaintiff he Herbert L. formed Hobby corpora- & tion Allen, MRC to manufacture and sell Orlando, Fla., plaintiff-appellee- pow- sup- er cable bender to electrical wholesale appellant. cross ply houses. A cable bender is used to bend large diameter lim- electric within the panel ited confines of a or terminal box. *3 Before its invention the usually task was GODBOLD, Judge, RONEY Beforé Chief accomplished with the use of hand tools. *, Judges. and WOOD Circuit power ap- The MRC cable bender first peared on the market in October 1970. RONEY, Judge: Circuit Greenlee, Early in 1971 defendant well a (Greenlee) Tool Company ap- Greenlee company established that markets a wide $549,562:64 peals judgment from a obtained trade, for the range electrical Manufacturing Company Research by became aware the power MRC cable on (MRC) competition a common law unfair began bender and efforts to develop its grew competi- The suit of the claim. out own. A ratcheting bender was intro- companies between the tion two duced by Greenlee March a 1973 and and a tool used in manufacture sale of the power in May cable bender 1975. Both n trade, known as a electrical construction MRC and Greenlee marketed their products as appeal cable bender. Both and power by employing salesmen who sold the tools to cross-appeal, we affirm. supply electrical wholesale houses or distrib- utors that in turn sold the tools to the main appeal On Greenlee contests the electrical contractors who were end based on a verdict on judgment jury four users. (1) the grоunds: sufficiency the evidence the tort of The activity prior as to trade or the of Greenlee disparagement market- ing power its own cable bender is the basis advantageous tort interference with Beginning this suit. in May 1971 vari- relationships, (2) the trial court’s ous Greenlee employees statements jury to instruct the on the refusal issue of the effect that pow- Greenlee would have a (3) the puffing, trial court’s denial of its er cheaper cable bender that was better and for judgment notwithstanding motion soon, than market shortly, MRC’s on the retrial, and order partial (4) verdict of a and in a few months. These were statements sufficiency of the at thе retrial evidence shows, made at trade at ware- distributor damages. houses, trade, and elsewhere to the even MRC asserted originally Sherman though had no such tool power Greenlee Act claims and ver- appeals from directed and was not to market it until some four against it on under 2 dict a count of the § years Although later. MRC’s sales rose Act, alleging monopolize. attempt from the of its introduction cross-appeal also claims on MRC October 1970 June until when court (1) denying erred in its motion to started, rumors 1975 it longer was no seeking to compel discovery establish viable force in the market. Thinly capital- power market in the conduit ized, eventually went MRC out of business (2) market refusing permit bender May 1977 sale its assets to Electro- deposition testimony to be certain read to vision, Inc. jury.
Sufficiency of Evidence as to Background Torts Economic , case, When Silas Crees invented tool that At the first trial of this a need in the contracting special interrogatories filled electrical on two found * Wood, Jr., Harlington Honorable U.S. nation. Circuit Circuit, Judge sitting desig- for the Seventh The could have con- competi from imminent. engage in unfair did were either calculat- the statements damage caused cluded proximately
tion which market for MRC’s cable compеtition unfair to diminish the Included within ed MRC- knowing the market interference with business bender or made is the tort of substantially Florida law its elements certain to be diminished. relations. Under relation involves a balanc- justification of a business (1) question the existence rights, plaintiff legal parties which has of the and of ship ing under of the interests interfer unjustified of all the (2) an intentional well as consideration society as methods, (3) damage relationship, including ence with circumstances the defend as a result of plaintiff parties. to the relation of the and the means used v. Maim Corp. Wackenhut Services, ant’s actions. Inc. v. White & Insurance Field D.C.A.1980). one, (Fla. 4th Service, Inc., So.2d & Audit Inspection White D.C.A.1980). (Fla. 5th 306-07 So.2d if there upheld verdict should be leeway in Although businesses are accorded *4 weight that of such and quality evidence interfering competitors’ with their men in the ex- and fair-minded reasonable certain relationships, they by must abide reach judgment might impartial ercise of improper not use “rules of combat” and The evidence is con- different conclusions. Prosser, W. Torts competition. means of reasonable light and with all sidered 1971). “when (4th Accordingly, 956 ed. opposing to the inferences most favorable views, the. there is room for different deter- Shipman, 411 F.2d party. Boeing Co. was mination of whether the interfеrence 365, (5th Cir.1969). 374 ordinarily or not is left to the improper presented was substantial evidence There its feel for the state jury, to obtain common statements employees made Greenlee community mores and for the manner in a would soon make available that Greenlee operate upon which would the facts in they better, at a time when cheaper cable bender Restatement of Torts 2d question.” § such there was no reasonable basis for comment 1. were made in claims. These statements involved in the persons 1971 and 1972 to Puffing business, principally contracting electrical argument second is that Greenlee’s throughout at trade shows the various in refusing the trial court erred instruct statements, Contrary to these country. trial jury regard puffing. the with The hand-operated Greenlee’s cable bender was court was not entitled ruled Greenlee not introduced until March and Green- puffing to a instruction on because at was not introduced power lee’s cable bender the time the statements were made Green- May until 1975. There was evidence lee product. had no one representative potential one sales relied, part, investor in MRC at least in on Puffing generally refers to an ex concerning appear- the rumor the imminent pressiоn opinion represen not made as a deciding ance of Greenlee’s cable bender Corp. tation of fact. Gulf Oil v. Federal relationships their with MRC. terminate Commission, (5th Trade F.2d Cir.1945). goods given The had sufficient evidence some Sellers enhancing quality before it to find liable for inter latitude in the or value of advantageous puff ference with business rela their wares. Id. made to Statements' goods misrepresenta had established a business are not actionable in tionships. MRC relationship representatives theory with its sales tion even if untrue on the that no on product. person rely general various distributors of its reasonable would а salesman. employ superiority statements to Greenlee claims of attributed Prosser, at 722. also 1A R. supra ees were made without a basis in fact. W. See Callmann, Trademarks though begun develop Competition, Even Greenlee had Unfair own, (4th 1981) (exag Monopolies ment cable bender of its 5.19 ed. power § the only the market was be allowed where appearance gerations the tool’s far should purchaser profits $182,562.64 he is not in the amount of ordinary understands rely). is in- expected puffing Where loss of value MRC’s business in the $367,000.00. volved, the seller is entitled an instruc- amount of Rather than new along damages, these lines. it tion trial on Greenlеe contends was judgment entitled to n.o.v. after the first in- requested jury of Greenlee’s Each trial. protection deals with the limited structions sellers in making comparisons afforded argument, Greenlee’s there Contrary products. with competitors’ their be no appears to error in the trial court’s Greenlee, however, did not in fact have judgment notwithstanding refusal to grant at the cable bender time the statements Although the verdict. trial court stated were not have question made and could testimony of expert MRC’s as to the its marketed after the soon loss in of its specula- value business was too were statements made. The statements jury vеrdict, tive to support it did of were and 1972 complained made in 1971 hold prove any that MRC failed to though hand-operated even Greenlee’s fact of damage. damage proximately was not September bender marketed until caused conduct specifical- power 1973 and cable bender was not ly special interrog- found Until May marketed 1975. In March 1971 Holding atories. that the jury award was engineering department devel- weight of against evidence, oped design hydraulic sketches of a bender or, court entered order for remittitur that were abandoned in favor an outsid- alternative, a new trial on *5 prototype. prototype er’s Field tests of the under only. Reviewable the abuse of dis- begin until did not the summer of 1972. In standard, Sessions, see Love cretion v. 568 short, nothing puffed at Greenlee to be (5th Cir.1978), F.2d 357 the trial court’s The the time statements were made. give decision to a new trial was not reversi- requested instructions are not applicable ble error. situation. such a Retrial Damages Partial on damaging The feature of state that product ments was Greenlee’s would be objects to solely the retrial Greenlee shortly. available This was a factual mis on the of damages, contending issue representation. Greenlee did even have liability issues оf and damages are so inter a in the product stage, final development woven in this case that they fairly cannot nor would one be available soon. State be separately. tried See Gasoline Products misrepresenting ments a or product falsely Co., 494, Co. Champlin Refining v. 283 U.S. ascribing product benefits or a virtues to 500, 513, 515, 51 75 (1931); S.Ct. L.Ed. 1188 v. Corp. actionable. Gulf Oil Federal Lines, Atkinson Dixie Greyhound 143 Commission, 109; Trade 150 F.2d at W. 477, (5th Cir.), denied, F.2d 479 cert. 323 Prosser, supra at 926. The instructions jury 758, 92, U.S. 65 S.Ct. 89 (1944). L.Ed. 607 adequate misrepre included instruction on argues finding Greenlee that no sentation material facts. as to which statements were found first be jury to tortious. On retrial the Judgment Notwithstanding Verdict was able аssume each incident was tor- against The returned a only verdict tious and left determine causation for lost profits defendant, however, Greenlee in the amount of damages. The did $67,218.25 and for loss special in value MRC’s not object interrogatories did nor $286,752.50. the amount of any it request interrogatories to make the subsequently trial court a remitti- now ordered distinction it asserts. The jury specifi or, $238,707.75 tur in the amount of cally liability. repetition found alternative, a new evidence, trial on After damages. liability necessary some of the damages causation, the retrial on returned establish did not render the against verdict Greenlee and found lost unfair. Trial of alone after liabili- 1042 that had not been See, Although the fact MRC e.g., practice. is an established She
ty
long makes it difficult to fore
in business
Co.,
(5th
Motor
1043
Bank,
National
agree
Philadelphia
violation of
Act. We
States
374
the Sherman
1715,
321,
with the district
the relevant
court
83
10
U.S.
S.Ct.
L.Ed.2d 915
market,
market was
bender
the cable
(1963), only
compet-
because demand forced
correctly
therefore the
court
denied
district
itors to offer the entire cluster of services
discovery of
conduit bender
effectivеly
as
one
product.
same can-
sales.
not be said of tools for electrical contractors
by
as seen
initial success on
MRC’s
the basis
Products,
In Northwest
Inc. v.
Power
of one tool.
Inc.,
Industries,
(5th
Omark
The law have been product disparagement pre- permissible puf- limits of vents diversion to if plaintiff’s fery represented defendant Greenlee had that it had potential sales defendant’s disрaraging product cheaper better and than MCR’s plaintiff’s goods. Disparagement may, of when in fact the product was merely being *9 that there is no be so remote ty to can only expected
developed and Greenlee here where this is not true But made no such issue. it later. But Greenlee have of in manufacture engaged was not Greenlee Or, if perhaps Greenlee statement. engi- product line and in the same goods goods manufacture of in the engaged been working was on devel- department neering practi- no line and had product same in the bender. expensive a less of opment line, an instruction enter the cable means to Moreover, stage develop- of remoteness in required. have been would not puffery on the basis of the in time was not ment and engaged in Or, were perhaps, if Greenlee on instructions refusing the trial court’s nothing done toward the same line but had there was a perceived It that puffery. product represented development of the inapplica- was puffery line rule that bright available, would have no instruction be soon in existence. not then product ble to a the these were required. been But engaged circumstances. Greenlee argu- makes an alternative plaintiff seeking develop the line and was same that ment, majority, the not referred cable bender. expensive less were covered puffery on instructions instruction above of the paragraph last treating approach of majority’s of concerning when a statement quoted to decision as a mat- boasting as amenable in the future can something that is to occur processes law will inhibit ter of of fact. misrepresentation be considered improving and marketing products new ade- the instruction does not part This and their adver- old. Must manufacturers of allowable convey concept quately virtues of promoting the tising agents, hyperbole. talk or sales existing “Prod- against “NEW Product X” Y,” is uttered рuffery that no interference with Unjustified uct be certain B. X” is its final “NEW Product business relations before possibly pro- and development form of for this claim is that statements The basis not, along proc- how far duction? If and prompted distributors by Greenlee be, product ess of must development to sever representatives manufacturers’ - span before its how short the time potential their connections with MRC the manufac- expected availability, before not make a connection. representatives judge’s reach of a evisceral past turer is or two sales There was evidence that one boasting reaction thаt the manufacturer their connection severed representatives prematurely? a con- making that one lost interest in by reason of Greenlee’s statements. nection says product “our new Assume defendant any causal rela- proof But there was no it will plaintiff’s, better than be will be any tionship between these occurrences in three cheaper, and it will be available be in- damage Damage cannot MRC. is sued. It turns out months.” Defendant of the occurrences. ferred from fact product became “existent” that defendant’s proof There was no that MRC suffered cheaper, better and but it and in fact was it or that shortage representatives of sales than in six months rather became available unavailability losses from the any suffered Or, product becomes available three. their connec- the one or two who severed better, time estimated but is not within the not make a and the one who did tions manufacturer, as a cheaper. Is or not connection. law, range puffery outside the matter of statements of over-optimistic because of damages only New trial on C. or of cost? The availability, quality, were sub- In the first the issues adapted ill to an majority’s approach is special interrogatories mitted to the development where research and economy the de- under which the found bring the consumer better competition” in “unfair engaged fendant to a manufacturer’s survival. essential damages proximately resulted of exist- It found the amount expectability It is obvious MRC. arising from loss consisting profits time of lost product
ence of a and its of availabili- *10 plaintiff’s.business. value in the The court
ordered a remittitur with the alternative of BROWN, Jacqueline Plaintiff-Appellee, only. a new on the of damages issue The remittitur was refused. INC., TERMPLAN, OF EAST ATLAN- had jury found in first trial TA, Defendant-Appellant. com- engaged the defendant had “unfair No. 81-7313. findings petition.” There had been no disparagement whether this consisted of or United States Court of Appeals, with re- unjustified interference business Eleventh Circuit. trial, lations, of both. or At the second Dec. 1982. only, damages the court instructed the that it should decide “whether the false and Rehearing and Rehearing En Ban misleading statements made the Defend- c 24, 1983. Denied Jan. availability, ant regarding pricing capabilities of its Model proximate any damage
were a cause of
MRC, so, and, if dam- extent those theories,
ages.” The two trade disparage- unjustified
ment and interference with relations, markedly
business focus on differ- competitive
ent harm. kinds of The effect is to the number disparagement decrease buyers product. The effect of drop rep-
business interference is a in sales Counsel Greenlee pointed
resentatives. that, argue
out in order damages, argue needed
concerning he
whether trade or disparagement interfer- relations, both,
ence with either been found the first to exist.
The court permit refused to this and held
that the first trial had de- established that types
fendant had committed both of unfair
competition, and only that defendant could
argue proximate damages. Argu- cause of
ably, objected should have defendant at
first trial to form of the interrogatory.
But it equally arguable that if the plain- prove damages
tiff arising wished from competition
both of unfair theories it had to
object global to a not interrogatory that did
establish the existence of both. needWe because, this argument, answer under circumstances, it was unfair to de-
fendant to have second trial on
only.
