WELCH, J.
The defendants, Dresser-Rand Company and Dresser-Rand Group, Inc. (collectively "Dresser-Rand"), appeal a judgment in favor of the plaintiff, Georgia-Pacific, LLC, as successor in interest to Georgia-Pacific Corporation ("Georgia-Pacific"), that awarded Georgia-Pacific damages, attorney fees, and costs and dismissed Dresser-Rand's reconventional demand. Georgia-Pacific has answered the appeal seeking an increase in attorney fees and costs for the defense of this appeal. For reasons that follow, we vacate the judgment on appeal, remand this matter for a new trial, and deny the answer to appeal as moot.
Georgia-Pacific operates a pulp and paper mill at its Port Hudson facility in Zachary, Louisiana. In 2004, Georgia-Pacific announced plans to add an energy facility to provide power to the pulp and paper mill and to other parts of the facility. On December 8, 2004, Georgia-Pacific entered into a contract with Dresser-Rand for Dresser-Rand to provide certain equipment comprising the energy facility project's steam turbine generator ("the turbine") and to perform certain design, engineering, erection, and commissioning services associated with that turbine ("the contract"). According to the contract, Georgia-Pacific was to pay Dresser-Rand the sum of $9,493,850.00 for the equipment and its services.
On December 3, 2009, Georgia-Pacific filed a petition for damages against Dresser-Rand. In the petition, Georgia-Pacific alleged that at various times from December 2004 through the present (the date of the petition), Dresser-Rand did provide certain equipment comprising the turbine and perform certain design, engineering, erecting, and commissioning services associated with the turbine; however, Georgia-Pacific claimed that the turbine failed to operate as required by the contract and was defective. Specifically, Georgia-Pacific claimed that the turbine failed to generate sufficient power to comply with the contract's specifications, failed to meet the contract's performance guaranty, and did not operate properly according to the contract terms or in a consistent and reasonably designed, engineered, and constructed manner. Georgia-Pacific asserted that although it made several demands on Dresser-Rand to correct the deficiencies with the turbine, Dresser-Rand had failed or refused to correct the deficiencies or to perform the work and services required by the contract and its legal obligations. Georgia-Pacific further claimed that it would be forced to perform significant replacement or corrective work on the turbine so that it could function according to the contract and in a proper manner. Therefore, Georgia-Pacific sought damages from Dresser-Rand for breach of contract and breach of express warranty, as well as statutory penalties, attorney fees, and costs.
In response, Dresser-Rand filed an answer and reconventional demand. Therein, Dresser-Rand essentially denied liability for Georgia-Pacific's claims and contended that it had complied with its obligations pursuant to the terms of the contract. In addition, Dresser-Rand contended that Georgia-Pacific had failed to pay the sums of $239,230.50 toward the contract price, $7,055.49 for various change orders
Following discovery, as well as various motions and stipulations, the parties agreed that their dispute focused on issues relating to the turbine's trip and throttle valves, which were essential to starting up and shutting down the turbine. While this suit was pending, Georgia-Pacific hired Alstom Power Inc., another turbine manufacturer, to replace the turbine's trip and throttle valves, which cost Georgia-Pacific the sum of $2,061,903.62. Therefore, Georgia-Pacific sought to recover this expense from Dresser-Rand pursuant to the contract and its warranty provisions, as well as attorney fees and expenses. However, Dresser-Rand continued to claim that the turbine met the performance guarantees, that all of the problems with the turbine were resolved or in the process of being resolved when suit was filed, that it was unnecessary for Georgia-Pacific to replace the trip and throttle valves, that it was not afforded the opportunity by Georgia-Pacific to repair or to continue any work on the trip and throttle valves, and that Georgia-Pacific did not obtain its written concurrence for the replacement of the trip and throttle valves by Alstom Power. Therefore, Dresser-Rand argued that it was not liable for the replacement cost and expenses.
Georgia-Pacific subsequently stipulated that it owed Dresser-Rand the sum of $239,230.50 toward the contract price. The matter then proceeded to a jury trial on the remaining issues on April 21, 22, 23, 24, and 27, 2015. On April 27, 2015, the jury returned a verdict in favor of Georgia-Pacific in the amount of $2,061,903.62. On July 9, 2015, pursuant to a motion to tax costs and to award attorney fees (in accordance with the terms of the contract), the trial court awarded Georgia-Pacific attorney fees, expert fees and expenses, and costs in the total amount of $741,337.46.
On July 16, 2015, the trial court signed a judgment awarding Georgia-Pacific damages in the amount of $1,822,673.12,
In Dresser-Rand's first nine assignments of error, it complains that the trial court's jury instructions and jury verdict form (or jury interrogatories) were woefully incomplete and insufficient, amounting to reversible error and warranting a de novo review of this matter, or alternatively, a remand for a new trial. We agree.
The trial court is required to instruct jurors on the law applicable to the cause submitted to them. See La. C.C.P. arts. 1792 and 1793. The trial court is responsible for reducing the possibility of confusing the jury and may exercise the right to decide what law is applicable and what law is inappropriate.
The trial court is not required to give the precise instruction submitted by either party, but must give instructions that properly reflect the law applicable in light of the facts of the particular case.
Louisiana jurisprudence is well established that an appellate court must exercise great restraint before it reverses a jury verdict because of erroneous jury instructions. Id. Trial courts are given broad discretion in formulating jury instructions, and a trial court judgment should not be reversed so long as the instructions correctly state the substance of the law. Id. But when a jury is erroneously instructed and the error probably contributed to the verdict, an appellate court must set aside the verdict. Id. In the assessment of an alleged erroneous jury instruction, it is the duty of the reviewing court to assess such impropriety in light of the entire jury instruction to determine if the charges adequately provided the correct principles of law as applied to the issues framed in the pleadings and the evidence and whether the instructions adequately guided the jury in its deliberation. Id. at 285-286. Ultimately, the determinative question is whether the jury instructions misled the jury to the extent that it was prevented from dispensing justice. Id. at 286. The standard of review in determining whether an erroneous jury instruction has been given requires a comparison of the degree of error with the jury instructions as a whole and the circumstances of the case. Id.
Likewise, the jury's verdict form may not be set aside unless the form is so inadequate that the jury is precluded from reaching a verdict based on correct law and facts. Id. at 283. Jury forms or interrogatories that are misleading or confusing may be reversible error. Id. Jury interrogatories must fairly and reasonably point out the issues to guide the jury in reaching an appropriate verdict. Id. If the verdict form does not adequately set forth the issues to be decided by the jury (i.e.,
In this case, the trial court's entire instruction to the jury was as follows:
After receiving these instructions, the jury was provided a verdict form with the following interrogatories to answer:
Notably, both Dresser-Rand and Georgia-Pacific timely objected to the brevity and inadequacy of both the jury instructions and the jury verdict form.
Dresser-Rand argues that the trial court's instructions were insufficient and incomplete because the trial court failed to give any general instructions as to the burden of proof, the weighing of evidence, credibility determinations, the role of expert testimony, Georgia law on contracts and the interpretation of contacts, and causation. Dresser-Rand also argues that the trial court "deliberately ignored" the suggested civil jury charges provided by the Louisiana Supreme Court.
In addition, Dresser-Rand complains more specifically that the trial court failed to give instructions it requested pertaining to: specific UCC cases that were applicable under Georgia law on contracts with respect to the design, construction, and repair of complex machinery; the law of limitation of warranties; the fact that the turbine fell into a class of custom-made, complex commercial machinery for which more time was allowed to make repairs and modifications; principles of Georgia law providing that when a manufacturer complies with the plans and specifications agreed upon by the parties, the manufacturer (i.e., Dresser-Rand) cannot be held responsible for unsatisfactory results; the fact that Dresser-Rand substantially complied with the contract because the turbine was successfully used for the purpose for which it was intended for five years; the fact that Dresser-Rand's limited warranty and the contract's requirement that Dresser-Rand's written consent be obtained before Georgia-Pacific could
Dresser-Rand also contends that the jury instructions improperly used the word "exclusive" without explanation of what the word meant in the context of the contract and that the word "limited" should have been used to describe Dresser-Rand's contractual warranty on the trip and throttle valves. Lastly, Dresser-Rand submits that the jury verdict form was essentially a "coin toss" that provided no guidance to the jury and did not accurately set forth the issues that the jury needed to decide.
In response, Georgia-Pacific posits that Dresser-Rand's entire appeal focuses on its contention that the jury instructions and verdict form were too short to be adequate and that most of Dresser-Rand's requested instructions that were omitted by the trial court were not "instructions" at all, but rather were legal arguments or comments on the evidence that supported Dresser-Rand's position. Georgia-Pacific contends that the brevity of the trial court's instructions and the jury verdict form did not prevent the jury from dispensing justice, the evidence at trial supported the jury's verdict, and thus the judgment rendered in accordance with the verdict should be affirmed.
However, based on our review of the record, the issues to be determined at trial, the evidence at trial, and the instructions given to the jury, we find that the trial court's instructions to the jury were incomplete and insufficient. Although the trial court did instruct the jury that this was a contract case, that the contract was the law between the parties, and that the contract contained a warranty provision, the trial court omitted several applicable, essential legal principles. As noted by Dresser-Rand, the trial court did not instruct the jury as to general principles of contract law, the applicable burdens of proof (i.e., Georgia-Pacific on its main demand and Dresser-Rand on its reconventional demand), and the essential legal elements (under Georgia law) of Georgia-Pacific's claims for breach of contract and/or breach of warranty for Dresser-Rand's claims against Georgia-Pacific, including breach, causation and assessment of damages.
Likewise, we find that the trial court's error in failing to instruct the jury on the applicable law was further compounded by the inadequacy of the jury's verdict form. The verdict form simply asked the jury whether either party "owe[d]" the other party and if so, how much, and did not ask the jury to make any specific underlying factual findings to support such a determination, such as a finding of breach and causation of damages. Thus, the verdict form did not point out any of the issues to guide the jury in reaching an appropriate verdict.
Therefore, because we find the trial court's jury instructions omitted essential, applicable legal principles and its jury verdict form failed to adequately set forth the issues to be decided by the jury, no weight should be afforded to the jury's verdict and we hereby vacate those portions of the trial court judgment rendered in accordance with the jury verdict, i.e., the award of damages in favor of Georgia-Pacific and the dismissal of Dresser-Rand's reconventional demand.
Generally, when a legal error, such as inadequate or improper jury instructions, interdicts the fact-finding process, the manifest error standard no longer applies.
In this case, a critical issue to be resolved was whether the turbine's trip and throttle valves performed in accordance with the contract or whether they were defective. As to that issue, the record presents substantial conflicts in both the highly technical and complicated expert testimony and the lay testimony which give rise to questions of credibility of the witnesses. Due to the substantial conflict in testimony concerning the pertinent issue in this case, a preponderance of the evidence cannot be determined fairly from the cold record. Therefore, we are convinced that the interests of justice would best be served by a new trial where credibility determinations and resolutions of the conflicting testimony can be made by the finder of fact. Accordingly, this matter is remanded for a new trial.
In these alternative assignments of error, Dresser-Rand contends that if the judgment rendered in accordance with the jury verdict is affirmed, then the trial court erred in awarding Georgia-Pacific all of the attorney fees it incurred in this suit and in casting Dresser-Rand with costs of expert witness fees, which fees were not limited to preparing for and testifying at trial. In addition, Georgia-Pacific answered the appeal seeking an increase in its award of attorney fees and costs for defending this appeal.
The trial court's award of attorney fees and costs were rendered in furtherance of the jury's verdict. Since we found merit to Dresser-Rand's contention that the jury instructions and jury verdict form were insufficient, incomplete, and constituted reversible error, and since we have vacated the trial court's judgment in accordance with the jury verdict and remanded this matter for a new trial, the remainder of the trial court's judgment awarding attorney fees and costs in furtherance of the jury verdict must likewise be vacated.
For all of the above and foregoing reasons, the July 16, 2015 judgment of the trial court is vacated and this matter is remanded to the trial court for a new trial. The answer to appeal by Georgia-Pacific is denied as moot. The assessment of costs in this matter shall await final disposition.
Holdridge, J., concurs with reasons.
HOLDRIDGE, J., concurring.
I concur with the majority's decision. As in this case, when both the plaintiff and the defendant object to the inadequacy of jury instructions and the jury verdict form, the proper procedural remedy would be to request a stay and seek an expedited writ. See La. C.C.P. art. 1793(C); Uniform Rules, Courts of Appeal, Rule 4-4. The appellate court should provide relief in such a situation where all parties are of the opinion that the jury instructions and/or jury verdict form proposed by the judge are improper, inadequate, or contains legal error. The failure to take an expedited writ may lead to the unfortunate expense of having to re-try a case based upon judicial error. See
In cases where the appellate court remands a matter because of judicial error, the trial court should be encouraged to explore other options so as to avoid the expense of a new trial. The trial court could recall the original jury and allow the parties to voir dire the jurors to see if they remember the facts and to determine if a fair resolution of the matter could take place with the original jury hearing closing arguments and then being properly instructed and completing a proper jury verdict form/jury interrogatories. The trial court should also consider any other options agreed upon by the parties which may preclude the necessity for a new trial. For these reasons, I concur in vacating the trial court's judgment and remanding this matter back to the trial court for further proceedings.