JOANNA SEYBERT, District Judge.
In the fall of 2015, a jury delivered a verdict in favor of Scienton Technologies, Inc. ("Scienton" or "Plaintiff") finding Computer Associates International, Inc. ("CA" or "Defendant") liable on Scienton's claims for unfair competition and misappropriation of an idea for two CA products, eTrust 20/20 ("20/20") and eTrust Security Command Center ("SCC"). The Court then entered judgment in favor of CA and against Scienton for lack of subject matter jurisdiction based on standing arguments. The Second Circuit Court of Appeals entered a mandate that, among other things, reversed this ruling and remanded the case for consideration of Scienton's Motion for New Trial on Compensatory Damages Only. (Docket Entry 551.) For the following reasons, the Court DENIES Scienton's motion.
The Court assumes the parties' familiarity with the facts chronicled in previous orders. (
As the Second Circuit has explained, a jury verdict should stand unless it was "seriously erroneous or a miscarriage of justice."
Two facts are very important here: (1) the jury's document requests and (2) the Court's jury instructions. First, during deliberations, the jury requested no documents on Dr. Rao's opinion. (
Second, the Court charged the jury to consider whether Scienton failed to mitigate its damages and whether only a portion of CA's profits were attributable to Scienton's idea:
(11/9/15 Tr., Docket Entry 576-8, 2373:22-2374:8, 2374:23-2375:4.) On the mitigation point, Scienton's star witness, Predrag Zivic, testified that after its relationship with CA ended, Scienton made no effort to develop its idea despite options to do so. (10/22/15 Tr., Docket Entry 562, 459:7-19.) On the profits point, the Court recalls that CA's witnesses described their own work in developing the products. Patrick Lee, the developer of SCC, had no knowledge of Scienton, NI Group Inc., or Secure-IT Inc. before this lawsuit was filed. (11/2/15 Tr., Docket Entry 576-3, 1278:24-1279:3, 1319:14-21.) The same is true of Howard Abrams, the developer of 20/20, and Steve Firestone, the general manager of CA's security business unit, who oversaw the development of both products. (11/4/15 Tr., Docket Entry 576-5, 1709:10-23, 1752:21-1753:11; 1777:18-23, 1815:9-1818:2, 1819:1-16.) Putting all that together, it is a reasonable inference that the jury gave greater weight to Mr. Johnson's calculation of $1.9 million and then reduced that figure based on the jury instructions. In other words, the jury's verdict was not "seriously erroneous or a miscarriage of justice," and the Court DENIES Scienton's for a new-trial.
On two final points, the Second Circuit remanded only "for consideration of the motion for a new trial on damages," (2d Cir. Mandate, Docket Entry 584, at 9), but CA had open issues in its motion for judgment as a matter of law—that is, arguments outside of the standing issue. Nevertheless, CA has requested that the Court decide the new-trial motion first, so "the parties may be in a better position to assess what portions, if any, of CA's outstanding motions should be litigated further in light of the long-standing nature of the case and time and effort required by further litigation." (Def.'s Aug. 2017 Ltr., Docket Entry 586, at 2 n.3.) Thus, the Court need not address whether it would violate the mandate rule by considering Rule 50(b) arguments not addressed on appeal.
Moreover, Scienton previously filed a motion for prejudgment interest. Following this Memorandum and Order, Scienton states that it "will provide revised prejudgment interest calculations from Dr. Rao." (Pl.'s Aug. 2017 Ltr. at 3 n.1.)
Plaintiff's motion for a new trial on compensatory damages only is DENIED. (Docket Entry 551.) The Court invites Plaintiff to file a revised prejudgment interest calculation.
SO ORDERED.