Conte v. Emmons

895 F.3d 168 (2nd Cir. 2018)

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Nature of the Case

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Facts

I Media was a company P founded to produce and distribute TV Time, a television magazine. Ds' investigation involved P's possible defrauding of 'route distributors.' These were individuals who paid I Media upfront for the exclusive right to distribute TV Time in a given area and were to receive in return a sum for each magazine they delivered. I Media suffered difficulties in its early stages. Some distributors who had paid upfront for their routes had not received any magazines to distribute. Two distributors made complaints to the District Attorney's Office, which assigned Ds to investigate. Nearly fifty individuals reported their suspicions. The investigation included the issuance of grand jury document subpoenas and significant inquiries to route distributors, printers, and potential advertisers. No charges were ultimately filed. I Media failed. P sued Ds for tortious interference with P’s contracts. Following the close of evidence at a jury trial, Ds moved pursuant to Fed. R. Civ. P. 50(a) for judgment as a matter of law. The district court denied the motion and submitted the claims to the jury which ultimately found in favor of P. The jury awarded P $1,381,500, which included $678,000 in punitive damages. Ds renewed their motion for judgment as a matter of law pursuant to Fed. R. Civ. P. 50(b). The district court denied the motion and directed entry of judgment in favor of P. Ds appealed.