Newbury v. Virgin

Summary

The Maine Supreme Judicial Court reviewed a judgment involving illegal eviction, conversion of business property, lost profits, and punitive damages. The court held that the evidence supported a limited lost-profit award for the period during which the converted equipment was unavailable and supported the jury’s punitive-damages award based on malice. The judgment was vacated in part and remanded to reinstate $1,050 in lost profits and $25,000 in punitive damages, and affirmed in all other respects.

Holdings

1. Consequential lost earnings or profits may be recovered for conversion when proximately caused by the defendant's conduct and proven with reasonable certainty, but such damages generally are limited to the period a reasonable person would need to replace the converted property. The evidence supported recovery for three weeks, or $1,050, but not the jury's $52,000 award.
2. A jury may award punitive damages when the plaintiff proves by clear and convincing evidence that the defendant acted with express or implied malice. The evidence of Virgin's deliberate lockout, retention of the business equipment, hostility toward Newbury, and apparent plan to facilitate a competing club was sufficient to support the jury's $25,000 punitive-damages award.
3. An issue raised for the first time on appeal is unpreserved and will not be considered absent obvious error.

Questions Presented

1. Whether the evidence supported an award of consequential lost profits for the conversion of Newbury's business equipment and, if so, the permissible duration and amount of those damages.
2. Whether the evidence was sufficient for the jury to find by clear and convincing evidence that Virgin acted with malice and to award punitive damages.
3. Whether the appellate court should consider Virgin's newly raised claims concerning due process and accommodation of his hearing disability.

Disposition

vacated