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HomeMy WebLinkAbout2021-cv-2063-CNS-MEH - City Of Fort Collins V. Open International, Et Al. - 290 - Open's Supp Proposed Jury InstructionsIN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Civil Action No.: 21-cv-02063-CNS-SP CITY OF FORT COLLINS, Plaintiff/Counterclaim Defendant, v. OPEN INTERNATIONAL, LLC Defendant/Counterclaim Plaintiff, and OPEN INVESTMENTS, LLC, Defendant. OPEN’S SUPPLEMENTAL PROPOSED JURY INSTRUCTIONS Defense tendered and rejected 11/1/2023 Case No. 1:21-cv-02063-CNS-SBP Document 290 filed 11/01/23 USDC Colorado pg 1 of 5 2 FRAUDULENT INDUCEMENT – ACTUAL DAMAGES1, 2 The City has the burden of proving the nature and extent of its damages by a preponderance of the evidence. If you find in favor of the City, you must determine the total dollar amount of the City’s damages, if any, that were caused by the false representation of Open. However, you should not infer that the City is entitled to recover damages merely because I am instructing you on the elements of damages. In determining these damages, you shall consider the following: 1. The difference between the market value of what the City received in the transaction and what its value would have been had the representation been true.3 1For the reasons explained in its Motion to Compel Election of Remedies and Limit Jury Demand, Dkt. 232, and its Response, Dkt. 236, Open maintains its objection to the jury hearing any claim, defense, or evidence of fraudulent inducement. The City’s pleaded fraudulent inducement claim seeks only the equitable remedy of rescission and therefore is not triable to a jury. The City has not pled, disclosed, or shown any evidence to support an award of actual damages for its claim of fraudulent inducement, see Dkt. 240, Exs. 1-3 (initial and supplemental damages disclosures); Dkt. 230 at ECF pages 7, 40-41 (final pretrial order); and its damages expert never once mentioned fraud or misrepresentation—let alone actual damages for fraud or misrepresentation—in his report, Dkt. 150-4 (expert disclosure). Without waiving these objections, in light of the Court’s Order Denying Motion to Compel Election of Remedies and Limit Jury Demand, Dkt. 255, and its rulings made during the Trial Preparation Conference, Dkt. 258, Open submits this proposed instruction on the measure of damages for fraudulent inducement. 2 CJI-Civ. § 19:17 (2023). 3 Open omits the consequential damages portion of this instruction in light of the restriction against consequential damages in the MPSA, which applies to any damages the City may be permitted to seek in the event it elects to affirm the MPSA and pursues damages for fraudulent inducement. See Sections 12.1 and 13.5(c) of the MPSA; Am. Health Connection v. Doctor to Doctor Sales Sols., LLC, No. 21-cv-00702, 2021 U.S. Dist. LEXIS 232613, at *4 (D. Colo. Dec. 6, 2021) (contract limitation bars fraudulent inducement damages in excess of limitation). Case No. 1:21-cv-02063-CNS-SBP Document 290 filed 11/01/23 USDC Colorado pg 2 of 5 3 NEGLIGENT MISREPRESENTATION – ACTUAL DAMAGES4 The City has the burden of proving the nature and extent of its damages by a preponderance of the evidence. If you find in favor of the City, you must determine the total dollar amount of the City’s damages, if any, that were caused by the negligent representation of Open.5 However, you should not infer that the City is entitled to recover damages merely because I am instructing you on the elements of damages. The damages recoverable for a negligent misrepresentation are those necessary to compensate the City for the financial loss to it of which the misrepresentation is a legal cause, including: 1. The difference between the market value of what the City received in the transaction and its purchase price or other value given for it.6 The damages recoverable for a negligent misrepresentation do not include the benefit of the City’s contract with Open.7 4 For the reasons explained in its Motion to Compel Election of Remedies and Limit Jury Demand, Dkt. 232, and its Response, Dkt. 236, Open maintains its objection to the jury hearing any claim, defense, or evidence of negligent misrepresentation. The City’s pleaded negligent misrepresentation claim seeks only the equitable remedy of rescission and therefore is not triable to a jury. The City has not pled, disclosed, or shown any evidence to support an award of actual damages for its claim of negligent misrepresentation, see Dkt. 240, Exs. 1-3 (initial and supplemental damages disclosures); Dkt. 230 at ECF pages 7, 40-41 (final pretrial order); and its damages expert never once mentioned fraud or misrepresentation—let alone actual damages for fraud or misrepresentation—in his report, Dkt. 150-4 (expert disclosure). Without waiving these objections, in light of the Court’s Order Denying Motion to Compel Election of Remedies and Limit Jury Demand, Dkt. 255, and its rulings made during the Trial Preparation Conference, Dkt. 258, Open submits this proposed instruction on the measure of damages for negligent misrepresentation. 5 CJI-Civ. § 19:17 (2023). 6 Open omits the “loss suffered otherwise” portion of this instruction in light of the restriction against consequential damages in the MPSA, which applies to any damages the City may be permitted to seek in the event it elects to affirm the MPSA and pursue damages for negligent misrepresentation. See Sections 12.1 and 13.5(c) of the MPSA; Am. Health Connection v. Doctor to Doctor Sales Sols., LLC, No. 21-cv-00702, 2021 U.S. Dist. LEXIS 232613, at *4 (D. Colo. Dec. 6, 2021) (contract limitation bars fraudulent inducement damages in excess of limitation). 7 Restatement (Second) of Torts §§ 552B(1) and (2); see also Whatley v. Crawford & Co., 15 Fed. Appx. 625, 630 (10th Cir. 2001). Case No. 1:21-cv-02063-CNS-SBP Document 290 filed 11/01/23 USDC Colorado pg 3 of 5 4 LIMITATION OF DAMAGES FOR NEGLIGENT MISREPRESENTATION AND FRAUDULENT INDUCEMENT8,9 The amount of damages awardable to the City, if any, is limited to the fees paid by the City to Open u liability.”10 8 For the reasons explained in its Motion to Compel Election of Remedies and Limit Jury Demand, Dkt. 232, and its Response, Dkt. 236, Open maintains its objection to the jury hearing any claim, defense, or evidence of fraudulent inducement and negligent misrepresentation. The City’s pleaded fraudulent inducement claim seeks only the equitable remedy of rescission and therefore is not triable to a jury. The City has not pled, disclosed, or shown any evidence to support an award of actual damages for its claim of fraudulent inducement or negligent misrepresentation, see Dkt. 240, Exs. 1-3 (initial and supplemental damages disclosures); Dkt. 230 at ECF pages 7, 40-41 (final pretrial order); and its damages expert never once mentioned fraud or misrepresentation—let alone actual damages for fraud or misrepresentation—in his report, Dkt. 150-4 (expert disclosure). Without waiving these objections, in light of the Court’s Order Denying Motion to Compel Election of Remedies and Limit Jury Demand, Dkt. 255, and its rulings made during the Trial Preparation Conference, Dkt. 258, Open submits this proposed instruction on the limitation of damages for negligent misrepresentation and fraudulent inducement, should the City elect to affirm the contract and thereby affirm the limitation provisions under the MPSA. 9 Am. Health Connection v. Doctor to Doctor Sales Sols., LLC, No. 21-cv-00702, 2021 U.S. Dist. LEXIS 232613, at *4 (D. Colo. Dec. 6, 2021) (contract limitation bars fraudulent inducement damages in excess of limitation). 10 CJI-Civ. 30:39; Sections 12.1 of the MPSA. Case No. 1:21-cv-02063-CNS-SBP Document 290 filed 11/01/23 USDC Colorado pg 4 of 5 5 Dated: November 1, 2023 Respectfully submitted, HOLLAND & HART LLP s/ Kevin C. McAdam Paul D. Swanson Kevin C. McAdam Alexander D. White Alexandria E. Pierce Holland & Hart LLP 555 17th Street, Suite 3200 Denver, Colorado 80202 Telephone: 303-295-8000 pdswanson@hollandhart.com adwhite@hollandhart.com aepierce@hollandhart.com Attorneys for Defendants-Counterclaimant Open International, LLC and Open Investments, LLC Case No. 1:21-cv-02063-CNS-SBP Document 290 filed 11/01/23 USDC Colorado pg 5 of 5