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Chen v. Fleetcor Technologies Inc., 16-CV-00135-LHK. (2017)

Court: District Court, N.D. California Number: infdco20170505a73 Visitors: 17
Filed: May 04, 2017
Latest Update: May 04, 2017
Summary: ORDER RE: PLAINTIFFS' MOTIONS IN LIMINE Re: Dkt. Nos. 77, 78, 79, 80, 81 LUCY H. KOH , District Judge . Having considered the parties' briefing, the relevant law, the record in this case, and balancing the considerations set forth in Federal Rule of Evidence 403, the Court rules on Plaintiffs' motions in limine as follows: MIL Ruling Plaintiffs' MIL #1 Plaintiffs' Motion in Limine #1 is GRANTED as to the affirmative (ECF No. 77): defen
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ORDER RE: PLAINTIFFS' MOTIONS IN LIMINE Re: Dkt. Nos. 77, 78, 79, 80, 81

Having considered the parties' briefing, the relevant law, the record in this case, and balancing the considerations set forth in Federal Rule of Evidence 403, the Court rules on Plaintiffs' motions in limine as follows:

MIL Ruling Plaintiffs' MIL #1 Plaintiffs' Motion in Limine #1 is GRANTED as to the affirmative (ECF No. 77): defenses of comparative fault, contributory negligence, and set off Motions to Exclude or offset. However, Plaintiffs' Motion in Limine #1 is DENIED to Evidence of the extent it seeks to exclude evidence relevant to whether "comparative fault, Plaintiffs did not satisfy their contractual obligations, did not contributory negligence, reasonable rely on Defendant's alleged fraudulent concealment, set off or some variant and failed to mitigate damages. of one of those three doctrines." Plaintiffs' MIL # 2 Plaintiffs' Motion in Limine #2 is DENIED as to evidence (ECF No. 78): Motion showing that employee statements were not made in the scope of to exclude evidence that employment. However, Plaintiffs' Motion in Limine #2 is employees were not GRANTED as to evidence that no one's actions except the acting in the scope of Compensation Committee of the Board of Directors could be their employment attributed to Defendant through respondeat superior. The standard described in CACI 3720 is the relevant standard to determine whether the individuals at issue here were acting in the scope of employment for the purposes of respondeat superior. White v. Ultramar contains the relevant standard for determining whether the employees' acts are attributable to Defendant for the purposes of punitive damages. Plaintiffs' MIL #3 Plaintiffs' Motion in Limine #3 is GRANTED to the extent it (ECF No. 79): seeks to introduce evidence of Defendant's financial status for the Motion to introduce purposes of punitive damages, reasonable reliance, and failure to evidence of Defendant's mitigate. With respect to reasonable reliance, Plaintiffs may only financial condition introduce evidence on which Plaintiffs actually knew and relied on when deciding to remain employees of Defendant. Plaintiffs' Motion in Limine #3 is DENIED to the extent Plaintiffs seek to introduce evidence of Defendant's financial condition to show expectation damages because expectation damages may not be awarded in the instant case. Plaintiffs' MIL #4 Plaintiffs' Motion in Limine #4 is DENIED because California (ECF No. 80): Civil Code § 623 cannot be used to establish facts by estoppel Motion to Conclusively offensively. establish facts under Cal. Evid. Code § 623 Plaintiffs' MIL #5 At summary judgment, the Court found that the breach of contract (ECF No. 81): cause of action was limited to a breach of an agreement to agree Motion to introduce under Copeland v. Baskin Robbins U.S.A., 96 Cal. App. 4th 1251 evidence of benefit of (2002). Copeland limits damages for an agreement to agree to the bargain or reliance damages. Plaintiffs argue that the implied covenant of expectation damages good faith and fair dealing prevents a party to an agreement to agree from acting in bad faith to eliminate the benefits of the contract. However, to the extent the benefits of the contract involve solely an agreement to agree, Copeland limits an implied covenant of good faith and fair dealing cause of action's damages to reliance damages. Here, Plaintiffs argue that the contract in dispute provides benefits beyond an agreement to agree. However, that contradicts the Court's summary judgment ruling. Moreover, the benefit of the bargain or expectation damages in this case would be too speculative because the parol evidence proposed by Plaintiffs does not eliminate the specific contractual language that states that the stock options are performance stock options. Plaintiffs' proposed benefit of the bargain or expectation damages would require speculation as to what the performance criteria would have been if such performance criteria had been established, and whether the performance criteria would have been met. Such a measure of damages is too speculative because it interferes with "an employer's inherent authority to manage its enterprise." Scott v. Pac. Gas & Elec. Co., 11 Cal. 4th 454, 473 (1995), disapproved on other grounds by Guz v. Bechtel Nat'l Inc., 24 Cal. 4th 317, 352 n.17 (2000). Instead, reliance damages are the appropriate measure of damages for Plaintiffs' implied covenant of good faith and fair dealing cause of action. With respect to the fraudulent concealment cause of action, Plaintiffs have not shown a causal connection between the alleged fraudulent concealment and the award of expectation damages. Absent the alleged concealment, it would be speculative to say that Plaintiffs would have been able to force Defendant to establish performance criteria that would have caused all of the options to vest. Instead, the appropriate measure of damages is reliance damages. Accordingly, Plaintiffs' Motion in Limine #5 seeking to introduce evidence of benefit of the bargain or expectation damages is DENIED.

IT IS SO ORDERED.

Source:  Leagle

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