A manufacturer of boat engines, Outboard Marine, brought this suit for breach of warranty (a suit governed by Illinois law) against a supplier of cables for its engines, the ACCO division of FKI Industries, formerly known as Babcock Industries. The jury awarded Outboard Marine $4,403,000. Discontented with this verdict, Outboard Marine asked the judge to enter judgment for $12,-384,700, or in the alternative to grant a new trial on damages. The judge refused to do either, and Outboard Marine appeals.
The cables were installed in a new type of Outboard Marine engine, which failed at an alarming rate and had to be replaced at substantial cost to Outboard Marine. The evidence at trial established that ACCO had failed to make the cables in accordance with Outboard Marine’s specs and that this failure had contributed to the failure of the new engines. There was also evidence of engine defects unrelated to the defective cables— defects that were the sole responsibility of Outboard Marine and that would have caused many of the engine failures even if the cables had been manufactured properly. Outboard Marine submitted to the jury a damages calculation of $19,132,302 which assumed that all the engine failures and resulting recalls and replacements had been due to ACCO’s bad cables. ACCO countered with evidence that even if this assumption were correct, Outboard Marine’s damages would be only $12,384,700, because of accounting and other errors that Outboard Marine had made in computing the $19.13 million figure. ACCO went much further, however, arguing to the jury that the plaintiff was actually entitled to only a paltry $303,000 in damages (the cost of the defective cables) because everything above that was due not to the alleged breach of warranty by ACCO but to the defective character of the plaintiff’s design of its new engine. Neither party explained to the jury how to calculate the damages if both a breach of warranty and the plaintiff’s own design defects had contributed to the costs incurred by the plaintiff as a result of the engine failures. Between $303,000 and $12.38 million, the jury was on its own.
Outboard Marine’s case for the entry of judgment of $12,384,700 depends entirely, as its lawyer acknowledged at argument, on the proposition that ACCO had conceded at trial that if there was a breach of warranty the $12.38 million figure was a minimum estimate of the damages for the breach. Such a concession would be tantamount to a stipulation
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as to damages, leaving only the issue of breach to be decided by the jury.
Taylor v. Green,
Outboard Marine’s argument for a new trial on damages is stronger than its argument for a judgment, and indeed at first glance compelling. The only estimates tendered to the jury were $303,000, $12.38 million, and $19.13 million. No one knows how the jury came up with $4.4 million. It looks as if the jury started with the $303,000' of conceded damages and then added one-third of $12.38 million (roughly $4.1 million), but this is just a guess; and if this is what the jury was doing, it was wrong, because it should have subtracted the $303,000 from the $12.38 million (which included the $803,000) before taking one-third. Thus, a rational path is not readily discernible between the evidence and argument of the parties and the jury’s verdict. Desperately ACCO argues that the evidence showed that there were three causes of the engine failures and that two of them (two forms of corrosion damage) were the fault of Outboard Marine and only one (the defective cables) was the fault of ACCO, so the jury assigned two-thirds of the liability to Outboard Marine. This wholly speculative reconstruction (replaced at argument by the even more speculative suggestion that the jury actually calculated the damages due to the respective parties’ mistakes) set up ACCO for Outboard Marine’s riposte that, if ACCO is right, the jury was importing tort- notions of comparative fault into a contract case, where such notions do not belong. Outboard Marine goes further. It argues that any attempt to apportion damages between the breach of warranty and its (that is, Outboard Marine’s) own mistakes improperly makes comparative negligence a defense in a contract case; and let us begin our analysis of the issue of a new trial on damages with that question.
Tort and contract law have similar aims, and their doctrines tend therefore to be isomorphic,
Evra Corp. v. Swiss Bank Corp.,
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There are good-reasons for this absence. The standard tort results from the interaction of two activities (driving and walking, for example), and a change in either one could reduce the probability of the accident giving rise to the tort. The pedestrian can cross the street at the crosswalk, as well as the driver being able to drive more slowly. The typical contract, in contrast, has a performing party and a paying party; these activities proceed on separate tracks; it is rare that a breach comes about as a joint consequence of these qualitatively entirely different activities. Such interdependencies as there are between the duties of the parties to a contract are governed by the doctrine of conditions.
Casio, Inc. v. S.M. & R. Co.,
Warranty is a mixed case. It is often an alternative remedy to tort, most clearly in products liability cases. The Uniform Comparative Fault Act (1977) § 1(b), 12.U.L.A. 123,127 (1996), applies to warranty suits, but it excludes purely economic loss and “actions that are fully contractual in their gravamen,”
id.
at 127-28 (Comment), thus excluding this case.
Ethyl Corp. v. BP Performance Polymers, Inc.,
But it does not follow from the absence of a general duty of care on the part of contract promisees that a promisee’s fault is irrelevant
in computing damages.
The promisor who breaks his promise is liable only for the harm that he causes, which is to say the harm that would have been avoided had he not broken his promise.
Collins v. Reynard,
This leaves the question of how the jury arrived at $4.4 million. Outboard Marine insists that it was ACCO’s responsibility
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to furnish the jury with the necessary guidance. This insistence is very odd. The plaintiff rather than the defendant is responsible for quantifying the plaintiffs damages. It is true that a defendant who fails to present a plausible estimate of damages takes a risk, as we have pointed out a number of times. E.g.,
Kemezy v. Peters,
That leaves us with the problem that the jury was not given sufficient guidance on how to compute damages if it didn’t want just to pick out one of the three figures the parties had put before it. But we do not think that this problem warrants reversal. The law neither requires juries to state reasons for their verdicts nor permits courts to inquire into the reasoning process of the jurors for the purpose of impeaching their verdict. Fed.R.Evid. 606(b);
McDonald v. Pless,
It follows, we think, that if a jury verdict is reasonable, the fact that the jury was not given the materials for constructing a rational path from the evidence to the verdict is not fatal. The law applies a bottom-line test: the verdict is evaluated against the evidence, rather than against the likelihood that the jury arrived at the verdict by the “rational” process that a judge would employ. E.g.,
Wassell v. Adams,
AFFIRMED.
