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FRANKL MILLER WEBB MOYERS LLP v. CREST ULTRASONICS CORPORATION (2021)

United States Court of Appeals, Fourth Circuit.2021-09-28No. No. 20-1367

Summary

Holding. The court affirmed the district court's grant of summary judgment on liability and the damage award of $165,404.46, rejecting Crest's argument that the law firm's alleged failure to mitigate damages defeated liability.

Crest Ultrasonics appealed a district court decision that found it liable for breaching a contract with its former legal counsel, Frankl Miller Webb & Moyers. The law firm had represented Crest in a products liability lawsuit and sued for unpaid fees. The district court granted summary judgment in favor of Frankl Miller on the liability question and awarded damages of $165,404.46 following a bench trial.

The appeals court upheld both the liability finding and the damages award. Crest argued that Frankl Miller had failed to minimize its losses, but the court explained that a plaintiff's failure to mitigate damages does not eliminate the defendant's liability for breach of contract—it is a separate issue that may reduce damages rather than eliminate them entirely. The court found no clear error in the district court's factual findings or legal conclusions regarding the amount of compensation owed.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether breach of contract liability exists when a party claims the non-breaching party failed to mitigate damages
  • Standard of review for summary judgment on contract breach claims
  • Standard of review for damages awards following a bench trial

Procedural posture

Crest appealed the district court's grant of summary judgment on liability and the bench trial damages award to Frankl Miller on a breach of contract claim.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

Crest Ultrasonics Corporation (“Crest”) appeals the district courts orders granting Frankl Miller Webb & Moyers, LLP (“Frankl Miller”) summary judgment on liability and awarding Frankl Miller $165,404.46 in damages following a bench trial on Frankl Millers breach of contract claim arising out of its representation of Crest in a products liability lawsuit. We affirm.

“We review a district courts grant of summary judgment de novo.” Variety Stores, Inc. v. Wal-Mart Stores, Inc., 888 F.3d 651, 659 (4th Cir. 2018) (citation and internal quotation marks omitted). Summary judgment is appropriate “ ‘if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.’ ” Id. (quoting Fed. R. Civ. P. 56(a)). In making this determination, “courts must view the evidence in the light most favorable to the nonmoving party and refrain from weighing the evidence or making credibility determinations.” Id. (alterations, citations, and internal quotation marks omitted).

To establish a breach of contract claim under Virginia law, a plaintiff must show “(1) a legally enforceable obligation of a defendant to a plaintiff; (2) the defendants violation or breach of that obligation; and (3) injury or damage to the plaintiff caused by the breach of obligation.” Navar, Inc. v. Fed. Bus. Council, 291 Va. 338, 784 S.E.2d 296, 299 (2016) (citation and internal quotation marks omitted). Contrary to Crests arguments on appeal, whether Frankl Miller adequately mitigated its damages is not relevant to whether Crest was liable for breach of contract. See Monahan v. Obici Med. Mgmt. Servs., Inc., 271 Va. 621, 628 S.E.2d 330, 337 (2006) (“[M]itigation of damages is not a defense that, if proven, constitutes an absolute bar to the plaintiffs claim.”). Accordingly, we affirm the district courts order granting Frankl Miller summary judgment on the issue of liability.

Turning to the district courts order awarding damages, “[w]e review judgments resulting from a bench trial under a mixed standard of review: factual findings may be reversed only if clearly erroneous, while conclusions of law are examined de novo.” United States v. Landersman, 886 F.3d 393, 406 (4th Cir. 2018) (citation and internal quotation marks omitted). “In reviewing an award of compensatory damages ․, we affirm the award unless it is against the clear weight of the evidence, based upon evidence that is false, or would result in a miscarriage of justice.” Randall v. Prince Georges Cnty., 302 F.3d 188, 202 (4th Cir. 2002). Our review of the record reveals no reversible error with respect to the district courts damages award.

We therefore affirm the district courts judgment. We dispense with oral argument because the facts and legal contentions are adequately presented in the materials before this court and argument would not aid the decisional process.

AFFIRMED

PER CURIAM:

Affirmed by unpublished per curiam opinion.

Unpublished opinions are not binding precedent in this circuit.