MEMORANDUM
This antitrust and breach of contract action was tried to a jury, which rendered a verdict in plaintiffs favor. Post-trial motions were subsequently filed, with defendant claiming various points of legal and trial error. For the reasons herein stated, the defendant’s motion for judgment as a matter of law and for a new trial will be denied, but its motion for remittitur will be granted. 1
1. BACKGROUND
Stelwagon Manufacturing Company (“Stelwagon”) is a wholesale distributor of roofing and related materials. 2 In early 1988, Stelwagon entered into an oral, semi-exclusive distributorship agreement with Tarmac Roofing Systems, Inc. (“Tarmac”), for the distribution of Tarmac’s modified asphalt products (“MAPs”) in the Philadelphia area. MAPs are rolled roofing products used to cover flat roofs, and are sold to roofing contractors. See Tr. of 12/14/93, at 56-57 (Keenan). Stelwagon sold Tarmac-brand MAPs in 1988 and 1989 without incident in the relationship and with steadily improving results. In early 1989, Stelwagon became aware of sales made to its competitors in violation of the agreement. Some of these sales were also made at preferential prices. Stelwagon complained to Tarmac, and eventually brought the instant action, alleging breach of contract as well as price discrimination in violation of federal antitrust law. See 15 U.S.C. §§ 13(a), 15.
*1364 Defendant moved at the close of plaintiffs case, and again at the close of all the evidence, for judgment as a matter of law pursuant to Federal Rule of Civil Procedure 50(a)(1) 3 on all counts of plaintiffs complaint. Both of these motions were denied and the case was submitted to the jury, which rendered a verdict in plaintiffs favor on the breach of contract and price discrimination claims, awarding plaintiff $1,500,000 and $772,000 respectively. The Court trebled the antitrust damages, see 15 U.S.C. § 15, and entered judgment in plaintiffs favor in the amount of $3,816,000. Defendant now renews its motion, and, in the alternative, requests a new trial or remittitur. See Fed. R. Civ.P. 50(b), 59(a). 4
II. DISCUSSION
A. Legal Standards
The discarding of a jury verdict and entry of judgment as a matter of law in favor of the party who failed to prevail at trial is not lightly done. The evidence in the case must be viewed in the light most favorable to the successful party, and every reasonable inference therefrom must be drawn in that party’s favor.
See Fineman v. Armstrong World Indus., Inc.,
Similar concerns restrict the Court’s discretion in ordering a new trial pursuant to Federal Rule of Civil Procedure 59. “Such an action effects a denigration of the jury system and to the extent that new trials are granted the judge takes over, if he does not usurp, the prime function of the jury as the trier of the facts.”
Lind v. Schenley Indus., Inc.,
B. Breach of Contract Claim
1. Failure to establish the terms of the contract by clear and precise evidence
The parties agree that, under Pennsylvania law,
5
the terms of an oral contract must be established by clear and precise evidence in order to be enforceable.
6
Richardson v. John F. Kennedy Memorial Hosp.,
2. Failure to establish damages
Tarmac argues that Stelwagon also failed to introduce evidence of damages resulting from the breach of contract. Stelwagon argues that it introduced sufficient evidence to allow the jury to calculate its lost profits due to the breach of the distributorship agreement. Stelwagon may recover lost profits “if there is (1) evidence to establish the damages with reasonable certainty; (2) they were the proximate consequence of the wrong; [and] (3) they were reasonably foreseeable.”
Advent Sys. Ltd. v. Unisys Corp.,
3. Contract was barred by the Statute of Frauds
Neither party contests the applicability of Article Two of the Uniform Commercial Code, governing the sale of goods, to the distributorship agreement.
See
13 Pa.Cons. Stat.Ann. §§ 2101-2725 (1984 & Supp.1994);
Weilersbacher v. Pittsburgh Brewing Co.,
Likewise, the jury was correctly instructed on the performance exception to the statute of frauds. See 13 Pa.Cons.Stat.Ann. § 2201(c)(3). Amhaus acknowledged that, as a Tarmac vice-president, he enforced the exclusivity provisions of the distributorship agreement. See Tr. of 12/15/93, at 124 (Amhaus); Tr. of 12/14/93, at 84-86 (Keenan). The argument that the performance exception only excepts the contract to the extent of actual performance is not apposite in the context of a distributorship agreement, where the parties are pledging to use their best efforts. Unlike the sale of discrete goods, upon which Article Two is originally grounded, a distributorship agreement cannot be readily segmented. Tarmac’s conduct indicated the existence of an agreement, and it cannot claim inequity in being held to the full terms of the agreement it entered into. As Justice Musmanno penned in describing the role of the statute of frauds:
*1367 The laudable purpose of this guardian of truth is to prevent frauds and perjuries. Occasionally, however, an embattled property owner or prospective purchaser of land, summons the statute to enforce a condition which does not seem to coincide with principles of honesty and fair dealing. In such cases the Courts should study the situation involved to make certain that the statute is not being used to perpetrate fraud and perjuries rather than prevent them.
Simplex Precast Indus., Inc. v. Biehl,
4. Improper instruction on breach of duty of good faith
Tarmac argues that the jury was incorrectly instructed that it could award Stelwagon damages if it found that Tarmac breached the duties of good faith and fair dealing and Stelwagon suffered damages therefrom, citing to
Creeger Brick & Building Supply Inc. v. Mid-State Bank & Trust Co.,
C. Robinson-Patman Act Claim
Stelwagon argued that it suffered a second-line Robinson-Patman Act violation. A second-line injury “is characterized by price discrimination by a seller in sales to competing buyers.”
J.F. Feeser, Inc. v. Serv-APortion, Inc.,
1. Failure to show harm to competition
“In order to establish a
prima facie
violation of section 2(a) of the [RobinsonPatman] Act, a plaintiff must demonstrate a reasonable possibility that a price difference may harm competition.” J.F.
Feeser,
The record, however, contains evidence that would support a jury finding of harm to competition under either method. The testimony of Keenan, Amhaus, and two of Stelwagon’s territorial managers supported a finding that Stelwagon was competing with Standard Roofing, which was receiving more favorable pricing than Stelwagon.
See
Tr. of 12/14/93, at 63-65 (Keenan); Tr. of 12/15/93, at 51-52 (Bannon);
id.
at 79-80 (Quinn);
id.
at 116-18 (Amhaus). Additionally, there was evidence that Celotex competed with Stelwagon, and that Celotex, which was characterized as a manufacturer, was in economic reality acting on the same distribution level as Stelwagon.
See Texaco, Inc. v. Hasbrouck,
2. Failure to show antitrust injury
In addition to establishing a
prima facie
Robinson-Patman Act violation, a plaintiff must also show actual damages before it can recover treble damages under the Clayton Act.
See Texaco, Inc.,
D. Other Trial Errors
1. No missing witness instruction
Tarmac requested at the close of the evidence that the Court give a missing witness instruction, arguing that Stelwagon’s
*1369
witnesses had referred to the statements of customers who were not previously identified. Such an instruction is proper where a witness is peculiarly within the power of one party and would presumably testify in that party’s favor, but is not called to testify.
See Graves v. United States,
2. Exclusion of Dr. Kursh’s report and testimony
Tarmac also alleges that the expert report prepared by Dr. Samuel J. Kursh on behalf of Stelwagon for use in a separate, unrelated state court action should have been admitted for purposes of impeaching the testimony of Stelwagoris witnesses concerning the reason for the drop in Stelwagon’s MAP sales, or that Dr. Kursh should have been allowed to testify to the same. The Court denied the request on the grounds that the probative value of the material offered was substantially outweighed by the prejudicial nature of the report and the eleventh-hour manner by which it was introduced by Tarmac. See Fed.R.Evid. 403. The Court declines the invitation to revisit this determination, and the motion for a new trial is therefore denied.
E. Remittitur
Tarmac argues in the alternative that the Court should grant a remittitur in this case due to the excessiveness of the damages awarded. Remittitur is appropriate if the Court “finds that a decision of the jury is clearly unsupported and/or excessive.”
Spence v. Board of Educ. of Christina Sch. Dist.,
In the instant case, the Court is left with the inescapable impression that the damages awarded by the jury in this case are unsupported by the evidence and are grossly excessive. The jury awarded Stelwagon $1,500,000 in damages for the breach of the distributorship agreement. See Tr. of 12/21/93, at 62. Yet, plaintiffs expert was only able to testify as to the damages occasioned by Tarmac’s sales to Allied, an amount that he estimated was $42,424. See Pl.’s Ex. 27. Additional damages testimony was offered by Keenan, who testified that the cost of the MAPs was only 40% of the sale in a “new roof’ job, with the other 60% composed of the sale of related products with similar profit margins. See Tr. of 12/14/93, at 59-61. In sales for “re-roof’ jobs, the MAPs made up two-thirds of the sale, with the related products making up one third. Keenan also testified that new roofs were about 25% of sales, and re-roofs 75%. Applying these percentages, as well as Dr. Perry’s calculation of lost MAP sales and Stelwagon’s profit margin, arrives at a figure of $72,242:
*1370 [[Image here]]
Though damages do not have to be calculated or estimated with mathematical certainty, there must be some basis in the record for a jury’s award.
See Advent Sys.,
Likewise, the figure calculated by Dr. Perry in support of the Robinson-Pat-man claim is only $257,362. See Pl.’s Ex. 23. Even using the percentages attested to by Keenan, as described supra, the amount of damages increases only to $450,383.50, a good deal removed from the $772,000 verdict entered by the jury and subsequently trebled by the Court:
[[Image here]]
Based on the figures just calculated, the Court determines that Stelwagon’s total damages in this case, after trebling of the Robinson-Patman damages, should be in the amount of $1,423,392.50. 12 The Court having previously entered judgment in the amount of $3,816,000, Stelwagon will be ordered to remit $2,392,607.50, within twenty days, or, if remittitur is refused, to submit to a new trial on damages. 13
An appropriate order shall be entered.
ORDER
AND NOW, this 12th day of September, 1994, upon consideration of defendant’s motion for judgment as a matter of law, new trial, and/or remittitur (Doc. No. 63), and plaintiffs motion for attorney’s fees (Doe. No. 64), for the reasons stated in the Memorandum accompanying this Order, it is hereby ORDERED as follows:
1. Defendant’s motion for judgment as a matter of law is DENIED;
2. Defendant’s motion for a new trial is DENIED;
3. Defendant’s motion for remittitur is GRANTED. Plaintiff shall remit $2,392,-607.50 within twenty (20) days of this Order, or, if remittitur is refused, shall submit to a new trial on damages; and
*1371 4. Plaintiffs motion for attorney’s fees is DENIED WITHOUT PREJUDICE.
AND IT IS SO ORDERED.
Notes
. Given the remittitur, the Court will continue its consideration of Stelwagon’s motion for attorney’s fees pending final resolution of this matter.
. Notwithstanding the company’s name, Stelwagon is not a manufacturer. See Tr. of 12/14/93, at 52 (testimony of John R. Keenan).
. Federal Rule of Civil Procedure 50(a)(1) provides that:
If during a trial by jury a party has been fully heard on an issue and there is no legally sufficient evidentiary basis for a reasonable jury to find for that party on that issue, the court may determine the issue against that party and may grant a motion for judgment as a matter of law against that party with respect to a claim or defense that cannot under the controlling law be maintained or defeated without a favorable finding on that issue.
. Rule 50(b) reads, in relevant part, as follows:
Whenever a motion for a judgment as a matter of law made at the close of all the evidence is denied or for any reason is not granted, the court is deemed to have submitted the action to the jury subject to a later determination of the legal questions raised by the motion. Such a motion may be renewed by service and filing not later than 10 days after entry of judgment____
Rule 59(a) reads, in relevant part, as follows: A new trial may be granted to all or any of the parties and on all or part of the issues (1) in an action in which there has been a trial by jury, for any of the reasons for which new trials have heretofore been granted in actions at law in the courts of the United States____
. In resolving Stelwagon’s breach of contract claim, state law applies.
See Erie R.R. v. Tompkins,
. Although plaintiff has agreed that this is the evidentiary standard it must meet, the Court’s review of the case law does not support this conclusion. Although a number of cases decided by the federal courts sitting in Pennsylvania have adopted this characterization of Pennsylvania law,
see, e.g., Richardson v. John F. Kennedy Memorial Hosp.,
Since both parties have argued that the clear and precise standard applies, and since plaintiff’s proof was sufficient to go to the jury based on the higher standard, the Court will apply the clear and precise standard in this case.
. At the time of the trial, Mr. Amhaus was employed by GS Roofing Products, Inc., a company that had purchased Tarmac’s assets while the • litigation was pending. See Tr. of 12/15/1993, at 97-98 (testimony of Gordon Amhaus).
. In the alternative, Tarmac requests a new trial because Dr. Perry’s opinion was improperly admitted and because the verdict was against the weight of the evidence. The former issue is taken up
infra.
As to the weight of the evidence argument, the liability verdict in Stelwagon’s favor does not constitute "a miscarriage of justice.”
See Klein,
. Tarmac argues in the alternative that the fail- . ure to show a clear and unequivocal waiver and the Court’s incorrect instruction on the perfor-' manee exception demand a new trial. Tarmac also claims that the jury’s verdict on the performance issue was against the weight of the evidence. The Court finds these arguments to be without merit.
. Whether there was sufficient evidence to support the damages awarded is a different matter, one taken up below in the discussion of the motion for remittitur.
. Tarmac’s repeated attempts to exclude the testimony of Dr. Perry rest largely on the basis that Dr. Perry's methodology is flawed. The Court found Dr. Perry to be qualified, without objection, as an expert in economics and price discrimination analysis.
See
Tr. of 12/16/93, at 51-52. Review of Dr. Perry's methodology indicates application of standard economic principles.
Cf. Daubert
v.
Merrell Dow Pharmaceuticals, Inc.,
— U.S. -, ---,
. $74,242 + ($450,383.50 x 3) = $1,423,-392.50.
. Given the disposition of defendant's post-trial motion, plaintiff's petition for attorney's fees will be denied without prejudice, pending the final resolution of this litigation.
