Team Contractors, L.L.C. v. Waypoint NOLA, L.L.C.

United States Court of Appeals for the Fifth Circuit · September 22, 2020 · No. 19-30704

Summary

**Topics:** Federal Rule of Civil Procedure 49(b) (general verdict with written questions); waiver of objections to inconsistent verdicts; reconciliation of jury answers; special verdicts vs. general verdicts. **Holdings:** The Fifth Circuit held that a verdict form requiring jurors to apply legal instructions to fact findings—determining whether a party breached a contract—constitutes a general verdict with written questions under Rule 49(b), even without a traditional "who wins" statement. Any objection to inconsistencies between the general verdict and the answers is waived if not raised before the jury is discharged. Because the verdict was either reconcilable or the objection was waived, the district court erred in granting a new trial. The court vacated the judgment and remanded with instructions to reinstate the original verdict and consider attorneys' fees.

Court
United States Court of Appeals for the Fifth Circuit
Writing for the Court
Leslie H. Southwick; Edith Brown Clement; Stephen A. Higginson
Jurisdiction
Federal
Decision date
September 22, 2020
Docket number
19-30704
Procedural posture
Appeal from the United States District Court for the Eastern District of Louisiana after a second jury trial on breach of contract claim.
Precedential value
published
Parties
Waypoint NOLA, L.L.C. v. Team Contractors, L.L.C.
Disposition
vacated

Topics

civil procedureappellate procedurestandard of reviewwaiverattorney feesbreach of contractcontracts

Practice areas

Construction LawCommercial Litigation

Questions Presented

  1. Whether the district court erred in granting a new trial on the breach of contract claim due to alleged irreconcilable inconsistencies in the jury's verdict.
  2. Whether the jury's verdict was a special verdict under Rule 49(a) or a general verdict with written questions under Rule 49(b).
  3. Whether Team waived any objection to the alleged inconsistency by failing to object before the jury was discharged.
  4. Whether the district court erred in denying Waypoint's motion for attorneys' fees.

Holdings

  1. The verdict was a general verdict with written questions under Rule 49(b) because the jurors were required to apply the court's instructions on the law to their fact findings, thereby resolving the claim against Waypoint without the district court needing to apply the law.
  2. Team waived any objection to alleged inconsistencies between the general verdict and the written questions by failing to object before the jury was discharged.

Key quotations

this court has stated that the test to be applied in reconciling apparent conflicts between the jury’s answers is whether the answers may fairly be said to represent a logical and probable decision on the relevant issues as submitted, even though the form of the issue or alternative selective answers prescribed by the judge may have been the likely cause of the difficulty and largely produced the apparent conflict. (Page 5)
objections to alleged inconsistencies between a general verdict and answers to verdict questions are waived if a party fails to object when the jury announces the verdict, while the jury is still empaneled. (Page 7)
We hold that if the answers to written questions require jurors to apply the instructed law to their fact-findings, thereby fully explaining who prevails on all claims against a single defendant, and if relevant, the amount of any monetary award, that is sufficient for a Rule 49(b) verdict. (Page 17)

Factual background

This case arises from a construction dispute over the Hyatt House hotel in New Orleans. Waypoint NOLA, L.L.C. owned the project and contracted with Team Contractors, L.L.C. as general contractor. During construction, the project's engineer's designs did not comply with code, requiring revisions and change orders that increased costs and delayed completion. Team sued Waypoint for breach of contract and the architects and engineers for negligence. The first trial resulted in a jury verdict that Waypoint did not breach the contract but allocated 10% fault to Waypoint. The district court granted a new trial on the breach of contract claim, concluding the verdict was irreconcilably inconsistent. After a second trial, the jury found in favor of Team. Waypoint appealed.

Procedural history

Team Contractors sued Waypoint for breach of contract and others for negligence. After the first trial, the jury found no breach by Waypoint but allocated 10% fault to Waypoint. The district court granted a new trial on the breach of contract claim due to irreconcilable conflict. A second trial resulted in a verdict for Team. Waypoint appealed, arguing that the new trial was improper.

Remand instructions

The district court is instructed to reinstate the judgment resulting from the verdict reached by the jury in the first trial and to consider attorneys' fees.

Court Document

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