Landmark Infrastructure Holding Co. v. R.E.D. Invs., LLC
Opinion
This case involves a billboard deal gone bad. Lamar Advertising maintained and operated a billboard on land that it leased from R.E.D. Investments, LLC, and Lamar paid R.E.D. $70,000 annually in rent (though that number was set to increase over the life of the lease) plus a percentage of the revenue that the billboard generated. Lamar had the right to terminate the lease at any time.
About nine months into this arrangement, Landmark Infrastructure Holding Company, LLC, contacted Bobby Van Stavern, who represented R.E.D. in its business dealings, about purchasing R.E.D.'s interest in the lease. R.E.D. and Landmark eventually executed an agreement under which Landmark agreed to pay *909 R.E.D. just over $900,000 in exchange for, among other things, the right to receive rent from Lamar. In that agreement, Van Stavern, as R.E.D.'s "manager," represented that Lamar had not requested to have the rent lowered and that R.E.D. had no "notice of any fact, condition or circumstance" suggesting that Lamar might do so. But about a month after R.E.D. and Landmark executed the agreement, Lamar informed Landmark that it wanted to reduce the rent. Landmark and Lamar eventually entered into a new lease containing a ten-year term with annual rental payments of $30,000 for the first five years and $36,000 for the five years after that, plus the same percentage of the revenue as in the original lease.
Because it came to believe that Van Stavern's representations had been false, Landmark sued R.E.D. for breach of contract and sued R.E.D. and Van Stavern for fraudulent and negligent misrepresentation. The case proceeded to trial, and a jury found in Landmark's favor on its breach-of-contract and negligent-misrepresentation claims, awarding $156,000 and $381,234.11 in damages, respectively. R.E.D. and Van Stavern moved for a new trial, or in the alternative, a remittitur or merger of the damages awards on the ground that they were duplicative, but the district court 1 denied the motion. The district court also awarded Landmark approximately $200,000 in attorneys' fees.
On appeal, R.E.D. and Van Stavern raise three primary issues. They say, first, that the district court erred by excluding testimony from their proposed expert witness. We review this evidentiary ruling "for clear and prejudicial abuse of discretion."
See
Am. Auto Ins. Co. v. Omega Flex, Inc.
,
In excluding this evidence, the district court held essentially that the expert's opinions were not relevant because they were premised on facts that were not in the record.
See
Lawrey v. Good Samaritan Hosp.
,
R.E.D. and Van Stavern maintain on appeal that the district court abused its discretion by not allowing the expert's testimony even after their offers of proof had undergirded his proffered opinion. We disagree. "Decisions concerning the admission of expert testimony lie within the broad discretion of the trial court."
See
Neb. Plastics, Inc. v. Holland Colors Ams., Inc.
,
The second primary contention that R.E.D. and Van Stavern advance on appeal is that the district court erred by denying their request to merge the two damages awards into a single one. They maintain that the jury awarded Landmark duplicative damages for the same injury. The district court began its consideration of this issue by deciding that federal law was applicable, and thus that there was a presumption that the damages awarded were not duplicative.
See
Matrix Grp. Ltd. v. Rawlings Sporting Goods Co.
,
Even if, as appellants insist, Missouri law applies, all we have here is a false conflict since there is no discernable difference between federal and Missouri law on this matter. R.E.D. and Van Stavern take issue with presuming that damages awards are not duplicative, which federal law requires, but Missouri law functionally requires the same kind of deference to jury verdicts. Under that law, "verdicts should be construed to give them effect if it can reasonably be done," and "the jury's intent is to be arrived at by regarding the verdict liberally."
See
Morse v. Johnson
,
Turning to the merits, R.E.D. and Van Stavern insist that the awards should be merged because they remedy the same injury. We first observe that, though not dispositive, the fact that the jury awarded different amounts on each claim suggests that the jury did not intend to duplicate the award.
Cf.
Sellers v. Mineta
,
The jury awarded Landmark $381,234.11 on its negligent-misrepresentation claim. This amount corresponds (to the penny) to Landmark's out-of-pocket loss, that is, the difference between what Landmark bought the interest for and what Landmark sold it for. As it happens, this is the proper measure for rescission damages in an action for negligent misrepresentation,
see
Frame v. Boatmen's Bank of Concord Vill.
,
The jury awarded Landmark a round $156,000.00 on its contract claim. Landmark had hoped to recover another $343,819.44 for the lost benefit of its bargain with R.E.D. and Van Stavern, which Missouri law recognizes as the proper measure of damages in a breach-of-contract action,
see
Dierkes v. Blue Cross & Blue Shield of Mo.
,
All this makes for a reasonable explanation of what the jury did, but to uphold the awards it is not necessary for us to conclude that the jury actually took this path. The only issue here is whether there is some reasonable possibility that the jury's awards were not duplicative. In other words, because of the deference we owe to the verdicts, we cannot set the awards aside unless there is a necessary inference, not merely a permissible one, that they were duplicative. Because there is no showing here that the jury's awards necessarily overlapped or were duplicative, we reject R.E.D. and Van Stavern's contention along with the related one that they are entitled to a remittitur. To the extent they argue that the jury acted out of passion and prejudice, we reject that argument as well because there is no evidence that it did.
For their final point, R.E.D. and Van Stavern maintain that the district court abused its discretion by awarding Landmark $207,704.74 in attorneys' fees. They believe that the district court erroneously concluded that the contract between the parties allowed the recovery of attorneys' fees in this instance. Of course, if a contract provides for the payment of attorneys' fees incurred in enforcing an agreement, the trial court must award those fees,
DocMagic, Inc. v. Mortg. P'ship of Am., L.L.C.
,
R.E.D. and Van Stavern correctly point out that if Landmark is entitled to fees, it can recover only for work done in furthering the contract claim. But R.E.D. and Van Stavern do not identify any specific charges in the attorneys' billing records that the district court should have disallowed, despite plenty of opportunity (and prodding by the district court and Landmark) to do so. Further, we have explained that "[w]hen a plaintiff has prevailed on some claims but not on others, the plaintiff may be compensated for time spent on unsuccessful claims that were related to his successful claims" as, for instance, when they "involve a common core of facts or are based on related legal theories."
See
Emery v. Hunt
,
Affirmed.
The Honorable Nanette K. Laughrey, United States District Judge for the Western District of Missouri.
Reference
- Full Case Name
- LANDMARK INFRASTRUCTURE HOLDING COMPANY, LLC, Plaintiff - Appellee v. R.E.D. INVESTMENTS, LLC ; Bobby Van Stavern, Defendants - Appellants
- Cited By
- 7 cases
- Status
- Published