MARK A. KEARNEY, District Judge.
We now return to the unfortunate saga of an elderly widowed father suing his adult daughter and son-in-law for racketeering and related misconduct in managing the father's beauty supply business resulting in family fissure better resolved outside the courtroom. As the family could not amicably resolve their money issues for reasons best left to their consciences, we asked our jury to address the credibility of many witnesses in determining whether the daughter and son-in-law, along with her separate beauty supply business, engaged in racketeering, misappropriation, conversion, breach of fiduciary duty and tortious interference in light of defenses of the father's consent, knowledge and waiver. After the jury unanimously found the daughter, son-in-law, and their company liable for most, but not all of the father's claims, they now move to set aside the jury's verdict on grounds largely waived at trial or not constituting clear error. This lawsuit further fractures a once-close family over money but, having chosen to gamble on this jury route, we must respect the jury's consistent verdict for much, but not all, of the father's claimed damages based on the adduced evidence and correct instructions on the governing law. We deny the son-in-law's, daughter's, and her company's post-trial motion in the accompanying Order.
T. Levy Associates, Inc. ("the Company") is a beauty products company partially formed and largely owned by Ted Levy. In the mid-2000s, Ted Levy entrusted the Company's business operations to his son-in-law Michael Kaplan.
In September 2016, the Company sued Mr. Kaplan, Mrs. Kaplan, and BLC Beauty for a variety of federal and state law claims, including violating the Racketeer Influenced and Corrupt Organizations Act ("RIC0"),
After discovery, summary judgment motions and an abundant variety of pretrial motions, we empaneled a jury to resolve multiple fact disputes in a family-run business largely relying on each other's good faith oral statements rather than lawyered documents. During the trial, the Company's damages expert David Anderson, a forensic accountant, testified the Company's damages exceeded $1,660,000.
We held a charging conference with counsel. During our jury charge, we instructed the jury about the Company's burden of proof under the preponderance of the evidence standard. We then instructed the jury on Defendants' burden of proof on their affirmative defenses:
After we finished our charge, we invited counsel to sidebar to preserve any objection to our charge. Defendants objected to the preponderance of evidence instruction on their defenses, to the extent they raised any. But when we asked Defendants if they wanted us to provide a curative instruction, they declined:
The jury rendered a verdict against Defendants on all but one of the Company's remaining claims.
After trial, Defendants moved for judgment as a matter of law under Rule 50,
We do not consider the issues raised in Defendants' motion for judgment as a matter of law because Defendants did not properly preserve this motion. Under Federal Rule of Civil Procedure 50(a), a party may move for judgment as a matter of law at any time before the case is submitted to ajury.
During the trial, we exercised our discretion under Federal Rule of Evidence 611(a) and—to expedite the presentation of evidence-we required Defendants elicit testimony from its own witnesses when the Company called those witnesses in its case-in-chief.
Defendants also request a new trial or altered judgment under Rule 59, proffering three arguments: (1) we erred in instructing the jury on Defendants' burden of proof; (2) the jury verdict is irreconcilably inconsistent; and (3) the jury's damages verdict shocks the conscience. These arguments lack merit.
Defendants contend our instruction on their burden of proof is prejudicial error because it likely misled the jury "into believing the Defendants carried some burden of dis-proving liability in this case."
Under Federal Rule of Civil Procedure 51, an objection is timely ifthe party who did not know about the offending instruction "objects promptly after learning that the instruction or request will be, or has been, given or refused."
During our jury charge, we instructed the jury on Defendants' burden of proof on their affirmative defenses. Defendants objected to this instruction, arguing it improperly informed the jury "if the Defendants don't meet their burden of the preponderance of the evidence, then they lose."
Defendants' failure to request a curative instruction renders their belated objection untimely because doing so deprived us of the opportunity to mitigate prejudice. For example, we could have explained to the jury the nature of Defendants' defenses as confirmed to us by their counsel at sidebar and related to our instruction on Defendants' burden of proof to those defenses. We offered to clarify any confusion, but Defendants denied our request. We accordingly must consider whether our instruction constitutes plain error.
Our instruction on Defendants' burden of proof on its affirmative defense is not plain error. "A [party] asserting an affirmative defense has the burden of proof as to that affirmative defense."
Defendants argue the jury's verdict in favor of Defendants on the Company's misappropriation of trade secrets claim is inconsistent with the verdict against Mr. Kaplan and BLC Beauty on the Company's claim for tortious interference with existing or prospective contractual relationships. We disagree. These claims have different elements, and the jury could have reasonably found a failure of proof on the misappropriation claim but not the tortious interference claim. Under the misappropriation claim, the Company had to prove "(1) the existence of a trade secret; (2) communication of the trade secret pursuant to a confidential relationship; (3) use of the trade secret, in violation of that confidence; and (4) harm to the [Company]."
The differences between these claims are abundant and need not be addressed in detail. A jury could reasonably conclude Mr. Kaplan and BLC interfered with existing or prospective business relationships without misappropriating trade secrets.
Defendant contends the jury's damage award lacked a rational basis and shocks the conscience. We disagree. We may disturb a jury's damages verdict "only if it is so grossly excessive that it shocks the judicial conscience. "
The jury's verdict does not shock the conscience. The Company's expert, a forensic accountant, found actual damages amounting to $1,660,000.
The Federal Rules of Civil Procedure embody a preference for raising timely objections. The failure to do so limits our discretion and sometimes requires us to avoid deciding issues on their substantive merits. We reluctantly do so here and deny Defendants' Motion for judgment as a matter of law as not properly preserved. As Defendants provide no basis for us to disturb the judgment, we deny Defendants' Motion for a new trial under Rule 59(a), to alter or amend the judgment under Rule 59(3), and for remittitur.