RENÉE MARIE BUMB, District Judge.
This matter comes before the Court upon two post-trial motions filed by Plaintiff, Financial Casualty & Surety, Inc., ("FCS") [Docket Nos. 482 & 483], and the supplemental briefing of the parties, including Defendants, John Bonino and 007 Bail Bonds (the "Defendants"), addressing whether an implied contract is sufficient to sustain an award of attorney's fees and whether a new trial is warranted. [Docket Nos. 481, 482 & 484]. The Bail Group Management, LLC, James Mascola and Genevieve Steward, (the "BGM Defendants") have also submitted a brief on the issue of their dismissal from this matter. [Docket No. 475].
In a prior Opinion dealing with the parties' respective post-trial motions, this Court requested further briefing on the following issues, including the submission of appropriate record citations and supporting materials where applicable:
Based on the record now before it, this Court will discuss the resolution of these issues below.
In the previous Opinion, this Court found that it would not address Plaintiff's Motion to Set Aside Order of Dismissal and to Enforce Settlement [Doc. No. 483] until the BGM Defendants submitted a response. BGM subsequently submitted a response to this Court.
Following the first day of trial, Plaintiff reached a settlement agreement with the BGM Defendants and the relevant terms of that settlement were read into the record on May 7, 2014. Specifically, Plaintiff noted on the record that the terms of the settlement called for, in relevant part:
May 7, 2014 Tr. 400:7-11.
The following dialogue also occurred with the Court with respect to the settlement:
May 7, 2014 Tr. 403:2-20 (emphasis added). Pursuant to an Order dated May 7, 2014, the BGM Defendants were dismissed from this matter and the Court expressly retained jurisdiction over the parties' settlement. The Order of dismissal states:
Docket No. 432 (emphasis added).
Thereafter, both the BGM Defendants and Plaintiff submitted an Agreed Final Judgment, the consent judgment referred to above, to this Court on June 20, 2014 [Doc. No. 473]. It is now apparent that due to a clerical oversight, this Court did not execute or enter the agreed final judgment that was signed by both parties and provided to this Court. Plaintiff now seeks relief from this Court pursuant to Federal Rule of Civil Procedure 60(b), alleging that the BGM Defendants were mistakenly dismissed from this matter and are now in violation of the settlement agreement for failure to pay the agreed upon amount of $750,000. [Doc. No. 483]. In response, the BGM Defendants contend that "it is unclear that the parties intended to have an executed Judgment signed by the Court and filed of record — in other words, entered." Doc. 490 at 2.
Under Federal Rule of Civil Procedure 60(b)(1) or (3), a party is entitled to relief where: "On motion and just terms, the court may relieve a party or its legal representative from a final judgment, order, or proceeding for the following reasons:
The BGM Defendants assert that the Plaintiff's motion is untimely because, per the text of the Rule itself, "[a] motion under Rule 60(b) must be made within a reasonable time—and for reasons (1), (2), and (3) no more than a year after the entry of the judgment or order or the date of the proceeding." Fed. R. Civ. P. 60(c)(1).
As an initial matter, this Court notes that Plaintiff's motion was submitted less than a year after the Court's Order dismissing BGM was entered. Moreover, because it is most likely, indeed reasonable, that Plaintiff expected that this Court would eventually sign and enter the judgment, Plaintiff cannot be faulted for the Court's delay. Therefore, this Court finds the motion timely.
The Court also agrees with Plaintiff that BGM should be judicially estopped from asserting its frivolous argument that the Judgement was not intended by the parties to be entered by this Court. For judicial estoppel to apply: (1) the party to be estopped must have taken two irreconcilably inconsistent positions; (2) the party must have changed his or her position in bad faith; and (3) the Court's application of judicial estoppel must be narrowly tailored to address the identified harm, or remedy the damage done.
BGM's statement that it is "unclear that the parties intended to have an executed Judgment signed by the Court and filed of record," is directly contradicted by its prior representations to the Court on the record: counsel for BGM specifically asserted that an "agreed consent judgment" would be submitted by the parties. Moreover, the proposed judgment submitted to the Court contained the signatures of counsel for both Plaintiff and BGM. BGM's about-face is in bad faith.
In light of the above, this Court will enter the Judgment as submitted by the parties as an Agreed Final Judgment to this Court on June 20, 2014, [Doc. No. 473], and will grant Plaintiff's Motion to Enforce Settlement.
While this Court has expressed serious concern as to whether the inconsistent verdict rendered by the jury (specifically its finding that both Defendants John Bonino and 007 Bail Bonds breached their implied contract, but awarding damages against Defendant Bonino only), it is mindful of its duty to "attempt to harmonize the [jury's] answers, if it is possible under a fair reading of them: `Where there is a view of the case that makes the jury's answers to special interrogatories consistent, they must be resolved that way.'"
Keeping this obligation in mind, this Court finds that, at this juncture, it is still unable to determine whether the jury's answers in the verdict are irreconcilable such that a new trial is warranted. For example, the jury awarded damages against Bonino but not against 007 Bail Bonds even though it found a breach by both parties. While seemingly inconsistent at first blush, this view may be reconciled if the evidence presented to the jury at trial demonstrates that 007 Bail Bonds is now defunct. At this juncture, however, the parties have not briefed this specific issue, nor do the record cites provided address the issue of the business status of 007 vis a vis Bonino. This Court cannot be expected to recall such evidence without the assistance of the record.
During jury deliberations the jury presented the following two questions:
[Doc. No. 449]. In response to these questions, the Court stated that "Mr. Bonino may be sued individually and 007 Bail Bonds may be sued," and referred the jury to Instruction No. 12.
Because this Court is without briefing or portions of the record that discuss this issue, it cannot make an appropriate determination at this time. The evidence before the jury, when combined with the jury instruction given, will guide this Court as to whether the jury's verdict may be reconcilable. For example, in
While the Court requires additional briefing and evidence on the issue of the jury's damages award, the parties have made additional submissions on the issue of attorney's fees. As set forth in the prior Opinion, this Court has questioned the availability of attorney's fees based in implied contract both as a matter of law and based on the evidence presented at trial. For that reason, the prior Opinion called on Plaintiff to submit specific citations to the trial record to support the award of attorney's fees rendered by the jury.
The Plaintiff's submissions have not convinced this Court that the fees are available as a matter of law.
Any attempts to point to liability for attorney's fees here mistakenly rely on the express terms of the written contract; a contract the jury found did
In light of the above, this Court finds that the attorney's fees award is not warranted and shall be stricken. Because the fee award will not be upheld, this Court need not address the availability of contingent fees for an appeal.
For the reasons set forth above, the Court finds that the parties shall submit briefs to this Court on the issue of the evidence presented to the jury regarding 007 Bail Bonds business status in relation to Bonino and whether the verdict can be reconciled. The Court will enter the proposed judgment and enforce the settlement against the BGM Defendants. Finally, the Court will strike the attorney's fees award from the verdict as unsupported by the law or evidence. An appropriate Order will issue this date.
A corporation, like 007 Bail Bonds, is a creature of legal fiction which can act only through its officers, directors and other agents, and acts of a corporate agent which are performed within the scope of his authority are binding upon the corporate principal. Because of the nature of a corporation, it obviously can act through its agents. The ability of an officer of the corporation to bind the corporation to a contract is governed by the law of agency. For example, an executive officer, such as John Bonino, may bind a corporation, like 007 Bail Bonds, by way of an ordinary contract made in the regular course of a corporation's business dealings.