BASSETT, J.
The plaintiffs are four companies with common owners and operators: Halifax-American Energy Company, LLC; PNE Energy Supply, LLC (PNE); Resident Power Natural Gas & Electric Solutions, LLC (Resident Power); and Freedom Logistics, LLC d/b/a Freedom Energy Logistics, LLC. Collectively, they are referred to as the "Freedom Companies." The defendants are three companies and their owners: Provider Power, LLC; Electricity N.H., LLC d/b/a E.N.H. Power; Electricity Maine, LLC; Emile Clavet; and Kevin Dean. Collectively, they are referred to as the "Provider Power Companies."
The Freedom Companies and the Provider Power Companies are engaged in the same business — arranging for the supply of electricity and natural gas to commercial and residential customers in New Hampshire and other New England states. The parties' current dispute concerns a Freedom Company employee whom the defendants hired, without the plaintiffs' knowledge, allegedly to misappropriate the plaintiffs' confidential and proprietary information. According to the plaintiffs, the defendants used the information obtained from the employee to harm the plaintiffs' business by improperly interfering with their relationships with their customers and the employee.
After a seven-day jury trial in Superior Court (
On appeal, the defendants challenge: (1) the jury's verdicts on the plaintiffs' claims for tortious interference with customer contracts and the employee's contract; (2) the jury's award of damages for tortious interference with customer contracts and tortious interference with economic relations, and its inclusion in that award of the attorney's fees incurred in the plaintiffs' prior litigation against the employee; and (3) the trial court's award of attorney's fees to the plaintiffs under the NHUTSA. We affirm.
Before addressing the defendants' numerous appellate arguments, we highlight the following principles. First, we decline to review any argument that the defendants did not raise before the trial court.
Second, we confine our review to only those issues that the defendants have fully briefed.
Third, we will not review any issue that the defendants address in their brief, but did not raise in their notice of appeal.
Similarly, we will not address any issue that the defendants raised in their notice of appeal, but did not brief. The defendants raise 27 questions in their notice of appeal, but have briefed far fewer. Any issue that the defendants raised in their notice of appeal, but did not brief, is deemed waived.
With these principles in mind, we address only a fraction of the defendants'
After trial, the defendants moved for judgment notwithstanding the verdict (JNOV) as to the plaintiffs' tortious interference with certain of PNE's customer contracts on the ground that the plaintiffs had failed to prove that those contracts remained valid after February 2013. According to the defendants, in February 2013, PNE "failed financially because it was unable to maintain its required financial sureties with ISO [New England]," which the defendants assert, manages the "wholesale power transmission market, sometimes referred to as `the grid.'" The defendants contend that, as a result, ISO New England "suspended PNE's participation in the power market and directed the host utility," Public Service of New Hampshire (PSNH), "to assume responsibility" for the electricity used by PNE's customers by February 20, 2013. The defendants state that, on February 20, "all of PNE's customers were transferred to PSNH for their electricity needs, and PNE stopped buying electricity and re-selling the electricity to its customers." The defendants concede that "PNE was released from its suspension[] ... in late March 2013," but contend that PNE "was not able to immediately recover financially and was not back up and running until June." The defendants argued that they were entitled to JNOV with regard to PNE's contracts with the customers that transferred to PSNH because the plaintiffs failed to prove that PNE maintained contracts with those customers after it was suspended.
The trial court denied the defendants' motion, finding that "there was sufficient evidence for the jury to find that the [challenged] contracts continued even after the customers were transferred to PSNH." For instance, the trial court noted, the employee "testified that, on behalf of [the] [p]laintiffs, he would maintain the relationships with customers even after they were transferred to a utility during periods of market volatility." The trial court stated that the employee also testified that, as part of the service that the plaintiffs provided to customers, the employee "would keep the customers abreast of market conditions and forecasts, so that when rates went down customers could return to [the] [p]laintiffs for their service." According to the employee, "this service was part of the contractual relationship." The trial court also determined that there was sufficient evidence from which the jury could have found that the plaintiffs and their customers "contemplated this sort of short-term transfer." The defendants argue that the trial court erred in so ruling.
A motion for JNOV relates to the sufficiency of the evidence and presents a question of law.
Although in the past we have stated that we will not overturn the trial court's decision absent an unsustainable exercise of discretion,
Based upon our review of the record, we cannot conclude that the trial court erred by denying the defendants' motion for JNOV. As the trial court aptly observed, the evidence adduced at trial was conflicting, and while the defendants' evidence "may have cast doubt" on the plaintiffs' evidence, it "did not prevent a reasonable jury" from finding that "the contractual relationships continued after the suspension."
The defendants argue that they were entitled to JNOV with regard to certain of Resident Power's customers because, although Resident Power was not suspended, it "suffered significant reputational damage because it was so closely linked to PNE, which was suspended." Moreover, the defendants assert, Resident Power's contracts with certain customers provided for automatic termination of the contract if a party ceases conducting business "in the ordinary sense," and, following PNE's suspension, Resident Power ceased conducting business "in the ordinary sense." According to the defendants, "Resident Power effectively ceas[ed] to conduct business in the ordinary sense" because it "could not transfer the customers placed with PNE to a new supplier without the customers' permission or without facing slamming allegations."
In denying the defendants' motion for JNOV, the trial court determined that the phrase "to conduct business in the ordinary sense" is ambiguous "as it could be reasonably understood to mean either a significant disruption in business, however fleeting in length, or the permanent shutdown of operations." (Quotation omitted.) The trial court concluded that, given the provision's ambiguity, "the jury was entitled to decide [its] meaning and application."
Because the defendants do not argue otherwise, we assume without deciding that the meaning of the provision was a fact question for the jury to decide. Viewing the evidence in the light most favorable to the plaintiffs, we cannot say that the sole reasonable inference is that Resident Power ceased to "conduct business in the ordinary sense" when PNE was suspended.
The defendants assert that the trial court erred when it declined their request for "an instruction that required the jury to find" that the non-compete provision in the employee's contract with the plaintiffs "was backed by consideration." The defendants argue that, without such an instruction, "[t]he jury was conclusively required to presume the validity of [the employee's] non-compete agreement." They further argue that, in fact, the non-compete provision lacked consideration and, therefore, that "the trial court's refusal to instruct the jury as requested was error because the jury could have been misled into basing its verdict on a misperception of the law, that is, that there can be interference
The purpose of jury instructions is to identify issues of material fact, and to explain to the jury, in clear and intelligible language, the proper standards of law by which it is to resolve them.
We disagree with the defendants' assertion that the jury instructions did not require the jury to find that the employee's non-compete agreement was supported by consideration. Viewing the instructions in context and as a whole, we conclude that they adequately explained to the jury that for the jury to find that the employee's non-compete agreement existed, the jury had to find that it was supported by consideration.
When the court instructed the jury on the plaintiffs' tortious interference with customer contracts claim, it told the jury:
(Emphases added.)
When the court instructed the jury as to the claim for tortious interference with the
(Emphasis added.) The court also instructed the jury that, as with the tortious interference with customer contracts claim, for the tortious interference with the employee's contract claim, "[t]he Plaintiffs are not required to prove that the contract is enforceable; in other words, a voidable contract is still a contract on which Plaintiffs may base a claim." In its written instructions, the court explained that, to prove the existence of a contract, the plaintiffs had to establish that the contract was supported by "adequate consideration."
Reading the jury instructions as a whole, we conclude that the trial court correctly instructed the jury that "[t]o prove the existence of a contract," including the employee's contract, the plaintiffs had to prove that the contract was supported by adequate consideration.
To the extent that the defendants argue that they were entitled to JNOV because the plaintiffs failed to prove that the non-compete agreement was supported by consideration, we disagree. The trial court determined that the plaintiffs' continuation of the employee's at-will employment constituted consideration for the covenant not to compete.
The trial court determined that, in fact, the original agreement between the plaintiffs and the employee was unclear as to when the employee earned commissions. In light of the ambiguity in the original agreement and "the uncertain business environment in February 2013," the court determined that the employee and the plaintiffs could have had a good faith dispute over his entitlement to commissions. The non-compete agreement, the court ruled, resolved that good faith dispute, and the resolution of such a dispute furnished adequate consideration.
We find no error in the trial court's analysis.
The defendants contend that the trial court erred by failing to instruct the jury that it could not award damages to the plaintiffs for both tortious interference with customer contracts and tortious interference with economic relations because those claims were alternative theories of recovery. The defendants concede that they did not request that instruction, but assert that because "the error did not arise until the trial court accepted ... verdicts" on both claims, their motion for JNOV properly preserved their argument for our review.
"A contemporaneous objection is necessary to preserve a jury instruction issue for appellate review."
Alternatively, the defendants assert their jury instruction argument under our plain error rule.
We conclude that the trial court did not err. Under New Hampshire law, "a plaintiff cannot claim multiple recoveries for the same loss even though different theories of liability are alleged."
In the instant case, the trial court instructed the jury that the plaintiffs could not "recover more than once for the same loss even if they allege different theories of legal fault on the part of the [d]efendants." The trial court further instructed the jury that "if the [p]laintiffs' claims arise out of a common core of facts[,] only a single recovery will be made, even if you find for the [p]laintiffs on more than one of their claims." Viewing the jury instructions as a whole, we cannot conclude that it fails to explain adequately New Hampshire's law about double recovery.
To the extent that the defendants argue that the jury, in fact, awarded the plaintiffs a double recovery by awarding damages on both the tortious interference with customer contracts claim and the tortious interference with economic relations claim, we disagree. We must presume that the jury followed the trial court's instructions, which precluded the jury from allowing the plaintiffs to "recover more than once for the same loss."
The defendants moved to set aside the jury's award of damages on the tortious interference with customer contracts and tortious interference with economic relations claims. The trial court denied the motion, ruling that the jury's award was neither conclusively against the weight of the evidence nor wholly unreasonable. The court observed that the plaintiffs proved their damages largely through the testimony of Bart Fromuth, the son of the owner of the Freedom Companies. Fromuth estimated damages based upon each customer's average electricity usage, the plaintiffs' commission or marginal profit per kilowatt hour, and the average retention length for the customers. From those variables, Fromuth calculated what each lost customer would have spent on electricity, and, consequently, what the plaintiffs would have earned, over the duration of the contract or economic relationship.
The trial court acknowledged that, as the defendants asserted, Fromuth's calculations were based upon the following assumptions: Fromuth assumed "that the customer's usage going forward would have been consistent with its average usage; that each lost customer would have stayed with [the] [p]laintiffs as long as the estimated average; and that market conditions like those in February 2013 would not have occurred and caused [the] [p]laintiffs to lose customers."
The trial court determined that "the jury could credit Fromuth's testimony regarding damages despite the assumptions underlying his calculations" because his assumptions were "reasonable." The court explained:
The trial court observed that, as the defendants contended, Fromuth's methodology did not account for the reputational harm that the plaintiffs suffered when PNE was suspended or the possibility that customers would have terminated their contracts or economic relationships with the plaintiffs prematurely. Those considerations, the court ruled, "could bear on the jury's assessment of Fromuth's testimony, but ... are not so weighty that they should have compelled the jury to reject [it]."
The court also declined to find the award "unreasonable simply because [it] did not exactly correspond with [the] [p]laintiffs' requested damages." The trial court explained: "The jury's task was not to blindly accept or reject [the] [p]laintiffs' request." Rather, it was "to determine based on the evidence presented to [it] the damages to which [the] [p]laintiffs were entitled."
"New Hampshire law does not require that damages be calculated with mathematical certainty, and the method used to compute them need not be more than an approximation."
On appeal, the defendants repeat the arguments that they made in the trial court. We do not find those arguments sufficient grounds for us to disturb the trial court's decision.
Before the trial court instructed the jury, the parties discussed whether the plaintiffs could recover as damages the attorney's fees they incurred when they sued the employee for his wrongful conduct. The defendants contended that such fees were not recoverable because there was insufficient evidence that they were the "natural necessary consequence" of the defendants' allegedly tortious conduct.
Consistent with that instruction, the jury's damage award included $93,000 in attorney's fees the plaintiffs incurred in their prior lawsuit against the employee.
Thereafter, the defendants moved for JNOV arguing, first, that the evidence failed to establish that the litigation against the employee was the "natural consequence" of the defendants' allegedly tortious conduct. The trial court ruled that "there was sufficient evidence to show that [the] [d]efendants' misconduct forced [the] [p]laintiffs to institute the suit against [the employee]." Specifically, the trial court observed that the plaintiffs presented evidence that they sued the employee so as to enforce his contractual promises. The trial court also observed that the plaintiffs presented evidence that the defendants caused the employee to breach his agreements with the plaintiffs: the employee testified that the owners of Provider Power Companies encouraged him to take the plaintiffs' customer information and sales leads to use for the defendants' benefit. Although the trial court acknowledged that, as the defendants contended, the employee "was the primary perpetrator of the torts," the court ruled that this fact "did not prevent the jury from assessing fees against [the] [d]efendants" given that the jury found that they conspired with the employee "to engage in the tortious misconduct."
In their motion for JNOV, the defendants also argued, for the first time, that the plaintiffs failed to prove that their attorney's fees were reasonable. The trial court ruled that the argument was waived because the defendants did not raise it before the jury deliberated. The trial court observed that the defendants did not include this argument in their motions for a directed verdict or in their objections to the jury instructions.
On appeal, the defendants reiterate their trial court assertion that the plaintiffs are not entitled to recover the fees as damages in the instant action because the evidence failed to demonstrate that the lawsuit against the employee "was ... the natural consequence of [the] [d]efendants' purportedly tortious conduct." Viewing the evidence, including that upon which the trial court relied, in the light most favorable to the plaintiffs, we cannot say that the sole reasonable inference is that the lawsuit was not the natural consequence of the defendants' purportedly tortious conduct.
However, as the plaintiffs correctly observe, the defendants have not preserved this argument for our review. The record demonstrates that the defendants did not argue before the trial court that the court's proposed jury instruction was inconsistent with New Hampshire law. Thus, we decline to consider that argument on appeal.
The defendants next contend that the trial court committed plain error when it concluded that they waived their argument regarding the plaintiffs' failure to prove that the attorney's fees were reasonable.
"The well-established rule is that an objection to the sufficiency of evidence is waived unless taken at a time when there may still be an opportunity to supply the deficiency,"
The defendants contend that the trial court erred when it awarded the plaintiffs' prevailing party attorney's fees under the NHUTSA. A prevailing party may be awarded attorney's fees when recovery of fees is authorized by statute, an agreement between the parties, or an established judicial exception to the general rule that precludes recovery of such fees.
We review the trial court's interpretation of the NHUTSA
RSA 350-B:4, III provides, "The court may award reasonable attorney's fees to the prevailing party when ... [w]illful and malicious misappropriation exists." The pertinent official comment to the Uniform Trade Secrets Act explains that this provision "allows a court to award reasonable attorney fees to a prevailing party ... as a deterrent to ... willful and malicious misappropriation." Unif. Trade Secrets Act § 4 Comment (amended 1985). The comment states that, when willful and malicious appropriation is at issue, "the court should take into consideration the extent to which a complainant will recover exemplary damages in determining whether additional attorney's fees should be awarded" and the court should rely upon patent law "to determine whether attorney's fees should be awarded even if there is a jury."
The Patent Act authorizes an award of attorney's fees to the prevailing party "in exceptional cases." 35 U.S.C. § 285 (2012);
Here, the trial court used a totality of the circumstances test to determine whether to award attorney's fees to the plaintiffs under the NHUTSA. The court considered the fact that the jury did not award the plaintiffs damages for their misappropriation claim, but concluded that the extent of the defendants' malice and willfulness outweighed that fact. The court also observed that awarding fees in this case furthered the goals of the NHUTSA to maintain standards of commercial ethics and deter intentional misappropriation of trade secrets. As the court explained:
Upon consideration of the record and the trial court's order, we conclude that the trial court did not unsustainably exercise its discretion when it awarded the plaintiffs their attorney's fees under the NHUTSA.
In arguing for a contrary result, the defendants invite us, in construing the NHUTSA, to apply case law developed under 42 U.S.C. § 1988 (2012) (Section 1988).
The defendants next assert that, even if the plaintiffs are entitled to fees under the NHUTSA, the trial court was required "to apportion the attorney time consumed in preparing and proving [the] misappropriation [claim]" from that consumed preparing and proving the plaintiffs' other claims. The defendants contend that "[a]lthough a number of fundamental facts were essential" to all of the plaintiffs' claims, "that does not mean they all required the same research, discovery, proof, or legal expertise." (Quotation omitted.) The defendants argue that the plaintiffs' misappropriation of trade secrets claim is analytically severable from the plaintiffs' other claims, observing, for instance, that "the law regarding misappropriation of trade secrets and tortious interference is not the same."
Under New Hampshire law, when a party prevails on some claims and not others, and the successful and unsuccessful claims are analytically severable, any fee award should be reduced to exclude time spent on unsuccessful claims.
Under New Hampshire law, claims are "analytically severable" when they seek different relief,
Here, the court determined that all of the plaintiffs' "claims share a common core
DALIANIS, C.J., and HICKS and LYNN, JJ., concurred.