City Solutions, Inc. v. Clear Channel Communications, Inc.

ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR JUDGMENT AND DENYING MOTION FOR NEW TRIAL

INTRODUCTION

This case illustrates an important distinction under California fraud law: the difference between lost-profit damages and benefit-of-the-bargain damages. The jury found defendant Eller Media Company liable for $9,800,000. It now moves for judgment as a matter of law or for a new trial. As to the fraud verdict of nine million dollars, this order concludes that relief is required under FRCP 50. Judgment must be for Eller on plaintiffs fraud claim. As to the unfair-competition verdict, defendant’s similar motion is DENIED. Defendant’s motion for a new trial is DENIED.

PROCEDURAL HISTORY

As this order on post-trial motions will be the last ruling by the district court before appeal, the following procedural summary may assist the court of appeals. This lawsuit arises out of plaintiffs failed attempt to win a public-works competition in San Francisco. In essence, the action blames the prevailing bidder for mislead ing plaintiff in connection with prospective bids.

On March 12, 1998, the City and County of San Francisco issued a request for proposals (“RFP”) for a…