RICHARD H. KYLE, District Judge.
This matter is before the Court on Defendant's Motion for Judgment as a Matter
Plaintiff is a well-known former wrestler, actor, and Governor of Minnesota, who served as a member of the Navy Special Forces Underwater Demolition/SEAL Teams during the Vietnam War. Chris Kyle was a Navy SEAL sniper and author of an autobiography entitled American Sniper, the Autobiography of the Most Lethal Sniper in U.S. Military History (hereafter, "American Sniper"). The book, which was released January 3, 2012, reached number one on the New York Times' Bestseller list by January 29, 2012, and in June 2012, Warner Brothers purchased the rights to a film adaptation.
In American Sniper, Kyle wrote a subchapter captioned "Punching Out Scruff Face" about an alleged altercation with Plaintiff. According to Kyle, the encounter took place at McP's, a bar in Coronado, California, on October 12, 2006, during a wake for Kyle's comrade, Mike Monsoor, who was killed in the line of duty. The subchapter reads as follows:
While not naming Plaintiff in print, Kyle confirmed in television, radio, and print interviews that "Scruff Face" was Plaintiff. In early January 2012, Kyle appeared on the Opie & Anthony Show, a talk-radio program, and the O'Reilly Factor, a talk show, retelling the above-quoted story about Plaintiff and repeating his alleged statement, "You deserve to lose a few guys." The story also appeared on FOX News.
Plaintiff commenced the instant action against Kyle in February 2012, asserting claims of defamation, misappropriation, and unjust enrichment. Kyle moved for partial summary judgment in the fall of 2012, but his Motion was denied. In February 2013, Kyle was killed by a fellow veteran, against whom criminal charges are currently pending in Texas. His wife was appointed executrix of his estate and substituted as the Defendant in this action in July 2013. She, too, moved for summary judgment at the conclusion of discovery, but her Motion also was denied.
The case then proceeded to a jury trial in July 2014 on the three claims asserted in the Complaint. As the unjust-enrichment claim was an equitable one, the Court employed the jury in an advisory capacity only as to that claim. See Fed. R.Civ.P. 39(c)(1). The jury delivered a split verdict on the first two claims, finding for Plaintiff on the defamation claim (and awarding him $500,000 in damages) and for Defendant on the misappropriation claim. The jury also found in Plaintiff's favor on the unjust-enrichment claim and assessed $1,345,477.25 in damages. The Court later adopted the jury's verdict on the unjust-enrichment claim as its own. (See Doc. No. 391.)
Defendant now argues she is entitled to judgment as a matter of law, or alternatively a new trial, on the defamation and unjust-enrichment claims. Her contentions are addressed in turn below.
When "a party has been fully heard on an issue during a jury trial and the court finds that a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue, the court may resolve the issue against the party." Fed.R.Civ.P. 50(a)(1)(A). Defendant invoked this Rule and sought judgment as a matter of law at the close of Plaintiff's case (Doc. No. 347) but the Court denied the Motion, concluding that after "two weeks of trial," and having "reviewed the testimony and evidence received," there was "sufficient evidence upon which a reasonable jury could find in favor of Plaintiff." (Doc. No. 359.) Defendant has now renewed her Motion, as is appropriate under Rule 50, but in the Court's view she has offered nothing that would lead it to alter its prior conclusion. See Gill v. Maciejewski, 546 F.3d 557, 562 (8th Cir.2008) ("The moving party bears a heavy burden on a motion for JAML [judgment as a matter of law].").
Defendant first argues that Plaintiff failed to prove the falsity of Kyle's statements. (Def. Mem. at 13-19.) But in order to grant judgment as a matter of law on this basis, "all the evidence must point one way and be susceptible of no reasonable
Defendant next argues Plaintiff failed to prove actual malice by clear-and-convincing evidence. (Def. Mem. at 19-22.) But Plaintiff was only required to show "that [Kyle] knew the statements [he published] were false" or that he acted "in `reckless disregard' of whether they were true or false — that is, he `entertained serious doubts as to the truth of his publication.'" (Doc. No. 269 at 10 (quoting Masson v. New Yorker Magazine, Inc., 501 U.S. 496, 510, 111 S.Ct. 2419, 115 L.Ed.2d 447 (1991)) (internal quotation omitted).) The simple fact that Kyle discussed an unambiguous event ("punching out" Plaintiff) was itself a sufficient basis upon which the jury could predicate a finding of actual malice. As the Court noted previously:
(Id. at 11.)
At bottom, Plaintiff presented sufficient evidence to support the jury's finding that Kyle defamed him.
Defendant also argues she is entitled to judgment as a matter of law on the unjust-enrichment claim. (Def. Mem. at 3-13.) The jury served in an advisory capacity on the unjust-enrichment claim, and hence this portion of Defendant's Motion is not governed by Federal Rule of Civil Procedure 50. See, e.g., Geddes v. Nw. Mo. State Univ., 49 F.3d 426, 429 n. 7 (8th Cir.1995) ("Rule 50 applies to matters tried by jury, ... not to this case in which the district court acted as the finder of fact."); Shim-A-Line, Inc. v. Northstar Mfg. Co., Civ. No. 3-91-520, 1994 WL 549517, at *4 (D.Minn. Apr. 19, 1994) (Magnuson, J.) ("Rule 50 applies only in cases tried to a jury with the power to return a binding verdict. It does not apply to cases tried without a jury nor to those tried to the court with an advisory jury.") (citation omitted). Rather, Federal Rule of Civil Procedure 52 controls. See, e.g., Schoedinger v. United Healthcare of Midwest, Inc., 557 F.3d 872, 878 (8th Cir. 2009). That Rule provides that in non-jury matters, the Court must specially find the facts and base its conclusions of law on those facts, and once a party has been fully heard on an issue, the Court "may enter judgment against the party on a claim or defense that, under the controlling law, can be maintained or defeated only with a favorable finding on that issue." Fed. R.Civ.P. 52(a), (c).
Here, because Defendant's Motion does not invoke (or even mention) Rule 52 (see Doc. No. 404),
That Defendant's contentions are primarily legal raises another significant problem. The crux of Defendant's argument is that unjust enrichment, an equitable remedy, was unavailable because Plaintiff had legal remedies available to him in the form of defamation and/or misappropriation. But this argument was not contingent on the facts of this case and, hence, could have been raised — and in the Court's view, should have been raised — from the outset. Notably, Kyle moved for partial summary judgment on the unjust-enrichment claim early in this action but nowhere argued the claim failed because legal remedies were available; he challenged only the sufficiency of the evidence to support that claim. (See Doc. No. 25.)
In the Court's view, Defendant is foreclosed from raising the issue at this juncture. It has long been held that motions under Rule 52 "cannot be used to raise arguments which could have been raised prior to the issuance of judgment." Diocese of Winona v. Interstate Fire & Cas. Co., 89 F.3d 1386, 1397 (8th Cir.1996); accord, e.g., Fontenot v. Mesa Petroleum Co., 791 F.2d 1207, 1220 (5th Cir.1986) ("Blessed with the acuity of hindsight, [a defendant] may ... realize that it did not make its initial case as compellingly as it might have, but it cannot charge the District Court with responsibility for that failure through [a] Rule 52(b) motion."); Acosta v. Tyson Foods, Inc., No. 8:08CV86, 2014 WL 824083, at *1 (D.Neb. Mar. 3, 2014). Defendant had ample opportunity to argue Plaintiff was precluded from proceeding on a theory of unjust enrichment, but failed to do so. To conclude that she may raise the issue now, following trial, might incentivize defendants to hold in reserve legal arguments
Nevertheless, the Court concludes that even if not waived, this legal/equitable argument fails on the merits.
A claim for unjust enrichment lies when "the defendant has knowingly received or obtained something of value for which the defendant in equity and good conscience should pay." ServiceMaster of St. Cloud v. GAB Bus. Servs., Inc., 544 N.W.2d 302, 306 (Minn.1996) (internal quotation marks and citation omitted). It is an equitable remedy predicated on an underlying wrong — "it must be shown that a party was unjustly enriched in the sense that the term `unjustly' could mean illegally or unlawfully." Id. (citation omitted). Here, the underlying wrong — the "illegal" or "unlawful" conduct — supporting Plaintiff's unjust-enrichment claim was Kyle's defamation.
However, it is important for courts to distinguish claims for unjust enrichment from the underlying illegal or wrongful acts upon which they are based. Service-Master and several other Minnesota decisions have noted that a "party may not have equitable relief" in the form of unjust enrichment "where there is an adequate remedy at law available" for the underlying wrongful act. Id. at 305. Defendant seizes on this principle here to argue Plaintiff "had a legal remedy — a defamation
The problem with this argument is that it ignores a key word from Service-Master: adequate. A claim for unjust enrichment is barred only when a plaintiff has an otherwise adequate legal remedy. Id. That was simply not the case here. It is undisputed the damages available to Plaintiff on his defamation claim were limited to those necessary to remedy the injury to his reputation. The jury was so instructed. (See Doc. No. 362 at 19.) In fact, the jury was expressly advised — at Defendant's behest (see Doc. No. 297 at 55) — that it could not award additional damages for unjust enrichment if it found that Plaintiff's "damages award for defamation... provide[d] him with an adequate remedy." (Id. at 20.) This scuttles Defendant's argument. Plaintiff's defamation claim provided him with no means to obtain the disgorgement of Defendant's ill-gotten gains — money the jury found, and the Court agreed, that Defendant made by defaming Plaintiff in American Sniper. Only through unjust enrichment could Plaintiff attempt to force Defendant to yield those improper profits. Under these circumstances, Plaintiff's legal remedy was inadequate to fully ameliorate Defendant's wrongful conduct, and the defamation claim did not preclude the unjust-enrichment claim as a matter of law. See, e.g., Caldas v. Affordable Granite & Stone, Inc., 820 N.W.2d 826, 838 (Minn.2012) (unjust enrichment "allows a plaintiff to recover a benefit conferred upon a defendant when retention of the benefit is not legally justifiable"); Park-Lake Car Wash, Inc. v. Springer, 394 N.W.2d 505, 514 (Minn.Ct. App.1986) (unjust enrichment may be found where the result of a party's conduct "will be unconscionable either in the benefit to himself or the injury to others") (emphasis added); see also Grp. Health, Inc. v. Heuer, 499 N.W.2d 526, 530 (Minn. Ct.App.1993) ("[E]quity will not permit a tortfeasor to benefit by receiving a windfall.").
Defendant also argues that allowing Plaintiff to recover damages via unjust enrichment, above and beyond those awarded by the jury for defamation, would run afoul of the First Amendment. (Def. Mem. at 4-5.) True, the Supreme Court recently recognized that even some knowingly false speech is protected under the Constitution. See United States v. Alvarez, ___ U.S. ___, 132 S.Ct. 2537, 2551, 183 L.Ed.2d 574 (2012) (holding unconstitutional the Stolen Valor Act, which criminalized falsely claiming to have won the Congressional Medal of Honor). But defendants enjoy no carte blanche to lie with impunity. And Defendant is simply wrong to claim the First Amendment requires limiting the damages available for actionable false speech to the plaintiff's loss. See, e.g., id. at 2547 ("Where false claims are made to effect a fraud or secure moneys or other value considerations, ... it is well established that the Government may restrict speech without affronting the First Amendment.") (emphasis added); see also Gertz v. Robert Welch, Inc., 418 U.S. 323, 349, 94 S.Ct. 2997, 41 L.Ed.2d 789 (1974) (punitive damages available for defamation when defendant knew statement was false or recklessly disregarded its truth).
For all of these reasons, Defendant's Motion for Judgment as a Matter of Law will be denied.
Federal Rule of Civil Procedure 59(a)(1) provides that the Court "may, on motion, grant a new trial on all or some of the issues — and to any party — as follows: (A) after a jury trial, for any
Defendant argues the Court erred in several of its jury instructions. (Def. Mem. at 23-30.)
In the Court's view, none of its instructions here was erroneous. But even if the Court erred, no such error "misled the jury or had a probable effect on its verdict." Goss Int'l Corp. v. Man Roland Druckmaschinen Aktiengesellschaft, 434 F.3d 1081, 1093 (8th Cir.2006) (citation omitted). Accordingly, Defendant is not entitled to a new trial.
Defendant first argues the Court wrongly instructed the jury that Plaintiff had to prove falsity only by a preponderance of the evidence, rather than by clear-and-convincing evidence. (Def. Mem. at 23-24.) But as noted above (see supra note 1), no binding authority required the Court to impose such an onerous evidentiary standard, and in any event the evidence here was sufficient to meet it. There was no error, let alone a substantially prejudicial one.
(Doc. No. 362 at 12 (emphases added).) During deliberations, the jury inquired whether the "story" referenced in this instruction was the sub-chapter of American Sniper in which Plaintiff was discussed, or rather was limited to the three specific statements mentioned in the instruction. (See Doc. No. 369.) The Court responded that the term "story" meant the comments made about Plaintiff in American Sniper, which included the three referenced statements, but the question was whether "the story as a whole" was defamatory. (Doc. No. 370.) According to Defendant, this was error because it altered Instruction 8 by shifting the jury's focus from the three referenced statements to the entire book sub-chapter. (Def. Mem. at 25-26.)
Yet, in discussing the Court's proposed response to the question, defense counsel conceded the issue was not whether these three statements were defamatory in isolation, but rather whether they were defamatory when viewed in context; indeed, defense counsel "want[ed] them" — meaning the jury — "to read these things in context." (Tr. at 2071 (emphasis added).)
Similar logic undermines Defendant's next argument. She contends the Court erred by failing to instruct the jury that "each of Kyle's statements had to satisfy all three elements of defamation." (Def. Mem. at 26.) But this simply rehashes her argument that the statements alone, rather than the statements viewed in the context of the story as a whole, must be defamatory. For reasons already explained, the Court appreciates no error.
Defendant next argues the Court erred in failing to give a curative instruction after "erroneously" permitting Plaintiff to introduce evidence that Kyle and his publisher (HarperCollins) never retracted the story. (Def. Mem. at 27-28.) Defendant contends such evidence was irrelevant to the question of actual malice, which turned on his state of mind at the time of publication, not afterward. But "most authorities suggest that a failure to retract, in conjunction with other circumstances, may be used to establish the requisite level of malice." John C. Martin, Comment, The Role of Retraction in Defamation Suits, 1993 U. Chi. Legal F. 293, 295 (1993); accord, e.g., Tavoulareas v. Piro, 817 F.2d 762, 794 (D.C.Cir.1987) (en banc) (refusal to retract can be evidence of actual malice); Golden Bear Distrib. Sys. of Tex., Inc. v. Chase Revel, Inc., 708 F.2d 944, 950 (5th Cir.1983), abrogated on other grounds by Hiller v. Mfrs. Prod. Research Grp. of N. Am., Inc., 59 F.3d 1514, 1520-21 (5th Cir.1995); Restatement (Second) of Torts § 580A, cmt. d (1977) ("Under certain circumstances evidence [of a refusal to retract a statement after it has been demonstrated to be false] ... might be relevant in showing recklessness at the time the statement was published."). In any event, even if the Court erred in admitting such evidence, it cannot have been prejudicial because, as Defendant herself notes, the evidence could have "just as easily be[en] construed as evidence that [Kyle] truly believed his statements and therefore did not act with actual malice." (Def. Mem. at 28.) "When a given fact is susceptible of two reasonable inferences, it is for the jury to determine which one it will adopt." Tavoulareas v. Piro, 759 F.2d 90,
Finally, Defendant argues the Court erred in failing to instruct the jury on the meaning of the term "serious doubt" (Def. Mem. at 29-30),
Defendant next argues the Court committed several evidentiary errors entitling her to a new trial. (Def. Mem. at 30-38.) A district court
Gill, 546 F.3d at 562-63. Suffice it to say, Defendant has not identified any errors, let alone errors leading the Court to conclude a different result would have been reached in their absence. A new trial is not warranted.
Defendant first contends the Court improperly admitted evidence that HarperCollins was insured and such insurance
Defendant next argues the Court wrongly excluded the "expert reputation testimony" of Professor David Schultz. (Def. Mem. at 34.) The Court declines to revisit this issue (see Doc. No. 331); as previously noted, the Court finds Professor Schultz's proposed testimony would not have been helpful to the jury and was not based on sufficient facts or on specialized knowledge rendering expert testimony appropriate under Federal Rule of Evidence 702 and Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993). Nor does the Court believe a proper foundation existed for Professor Schultz to offer lay opinions regarding Plaintiff's reputation.
Defendant's final evidentiary argument is that the Court erred in admitting evidence that Kyle and his publisher failed to retract the story. (Def. Mem. at 37-38.) This issue has already been discussed and rejected above and merits no further discussion.
Finally, Defendant argues she is entitled to a new trial because the Court's Verdict Form did not ask the jury "to determine defamatory meaning, falsity, and constitutional malice separately as to each of Kyle's statements." (Id. at 38.) This is yet another attempt to rehash her argument for parsing each of Kyle's statements, rather than viewing them in their totality and in the context of the entire sub-chapter in question, which the Court has already rejected. Moreover, the Verdict Form specifically cross-referenced the Court's Instructions on defamation (see Doc. No. 385), which the Court has concluded were free from error. Nothing in the Verdict Form requires a new trial.
At bottom, the Court concludes Defendant received a fair trial and that the jury's verdicts were supported by substantial evidence. Defendant is obviously disappointed in those verdicts, but her disappointment does not lay a foundation for a new trial or for judgment as a matter of law. Having found all of Defendant's arguments wanting, and based on all the