Filed: Apr. 10, 2019
Latest Update: Mar. 03, 2020
Summary: 18-814 Zamora v. Morphix Co. UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT SUMMARY ORDER RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT=S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (WITH THE NOTATION ASUMMARY ORDER@).
Summary: 18-814 Zamora v. Morphix Co. UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT SUMMARY ORDER RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT=S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (WITH THE NOTATION ASUMMARY ORDER@). ..
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18‐814
Zamora v. Morphix Co.
UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT
SUMMARY ORDER
RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A
SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED
BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT=S LOCAL RULE 32.1.1.
WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY
MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (WITH THE
NOTATION ASUMMARY ORDER@). A PARTY CITING TO A SUMMARY ORDER MUST SERVE A
COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL.
At a stated term of the United States Court of Appeals for the Second
Circuit, held at the Thurgood Marshall United States Courthouse, 40 Foley
Square, in the City of New York, on the 10th day of April, two thousand nineteen.
PRESENT:
AMALYA L. KEARSE,
DENNIS JACOBS,
PETER W. HALL,
Circuit Judges.
_____________________________________
MELANIE ZAMORA,
Plaintiff‐Counter‐Defendant‐Appellee,
MGZ CONSULTING, LLC,
Third‐Party‐Defendant‐Appellee,
‐v.‐ 18‐814
MORPHIX COMPANY, LTD.,
Defendant‐Counter‐Claimant‐
Third‐Party‐Plaintiff‐Appellant.1
______________________________________
FOR MGZ CONSULTING, LLC AND MELANIE ZAMORA:
Nicholas A. O’Kelly, Kilgore & Kilgore,
PLLC, Dallas, TX.
FOR MORPHIX COMPANY, LTD.: Paul T. Shoemaker, Greenfield Stein &
Senior, LLP, New York, NY.
Appeal from a judgment of the United States District Court for the
Southern District of New York (Forrest, J.).
UPON DUE CONSIDERATION, IT IS HEREBY ORDERED,
ADJUDGED, AND DECREED that the judgment of the district court is
AFFIRMED.
Morphix Consulting, LLC (“Morphix”) alleges that one of its former
consultants, Melanie Zamora, breached the parties’ consulting agreement by
accepting a job with one of Morphix’s clients, British Petroleum (“BP”). The jury
returned a verdict in favor of Morphix, and awarded $33,000 in damages. The
United States District Court for the Southern District of New York (Forrest, J.)
granted Zamora’s motion for judgment as a matter of law, concluding that there
was insufficient evidence to find that Morphix had suffered any damages as a
result of Zamora’s breach. We assume the parties’ familiarity with the
underlying facts, the procedural history, and the issues for review.
In 2012, Morphix was retained by BP to consult on BP’s Well Advisor
Project. Morphix hired Zamora, as a subcontractor, to work on the project.2
The Clerk of Court is directed to amend the caption as set forth above.
1
2 Zamora conceded for the purposes of trial that she was the alter ego of MGZ
Consulting, LLC, a company that she established as a shell for her consulting work.
Reference to Zamora therefore refers to both Zamora and MGZ Consulting.
2
Zamora’s Consulting Agreement (the “CA”) with Morphix did not set forth
specific consulting projects; rather, Zamora and Morphix signed twelve
three‐month work orders, which incorporated the CA, and set forth specific
assignments for BP in the years 2012, 2013, and 2014. The CA did not obligate
Zamora to sign any certain number of work orders, or continue accepting work
orders. Critically, the CA prohibited Zamora from accepting a job with any of
Morphix’s current clients.
In November 2014, Zamora accepted a job at BP. When Morphix was
advised, Morphix threatened to sue Zamora for breach of contract, and to sue BP
for tortious interference. BP pulled the job offer, and Zamora sued Morphix for
tortious interference. Morphix counterclaimed against Zamora for breach of
contract, tortious interference, and wrongful interference with prospective
business relations.
Before trial, all of the claims were resolved except for the breach of contract
claim against Zamora. At a two‐day jury trial, Morphix argued that Zamora
breached her contract by accepting a job with BP while she was consulting with
BP on Morphix’s behalf. A jury found in favor of Morphix, and awarded $33,000
in damages; Zamora moved for judgment as a matter of law; and the district
court granted the motion, concluding that there was no evidence that Morphix
was damaged when Zamora accepted a position at BP. Morphix appeals.
We review de novo a district court’s decision to vacate a
jury verdict pursuant to Rule 50(b). See Tepperwien v. Entergy Nuclear
Operations, Inc., 663 F.3d 556, 567 (2d Cir. 2011). “A judgment notwithstanding
the verdict may only be granted if there exists such a complete absence of
evidence supporting the verdict that the jury’s findings could only have been the
result of sheer surmise and conjecture, or the evidence in favor of the movant is
so overwhelming that reasonable and fair minded [persons] could not arrive at
a verdict against [it].” Wiercinski v. Mangia 57, Inc., 787 F.3d 106, 112 (2d Cir.
2015) (internal quotation marks omitted).
Morphix presents two theories of damages that it argues could support
the jury’s award: (1) that Zamora would have continued fulfilling work orders
for Morphix if she had not applied for and accepted a job at BP, thereby
generating a profit for Morphix; and (2) that Morphix would have been able to
replace Zamora if she had helped the transition of a new consultant into her role.
3
Morphix is not entitled to recover damages unless it suffered as a result of
Zamora’s breach. See Diesel Props S.r.l. v. Greystone Bus. Credit II LLC, 631 F.3d
42, 52 (2d Cir. 2011). Neither damage theory advanced by Morphix can support
the damages award. Any damage was caused by Zamora’s decision to leave
Morphix; but Zamora’s departure was not a breach of the consulting agreement,
because, at the time she left, she had completed her last work order and had not
accepted (or been offered) any additional work.
True, the consulting agreement barred Zamora from applying for and
accepting a job at BP. But Zamora never actually worked at BP, and Morphix
presented no evidence at trial to support a finding that it was damaged by her
technical breach, and offers no damage theory on appeal that is not specious. It
was unreasonable for the jury to find otherwise. Since Morphix failed to present
any evidence at trial that it was damaged by Zamora’s breach, Zamora is entitled
to judgment as a matter of law.
We have considered the appellant’s remaining arguments and find them to
be without merit. For the foregoing reasons, we AFFIRM the judgment of the
district court.
FOR THE COURT:
Catherine O’Hagan Wolfe, Clerk of Court
4