The Glovatorium, Inc. v. Ncr Corporation

Glovatorium filed this action against NCR Corporation (NCR) in state court alleging breach of contract, intentional and negligent misrepresentation, breach of warranty, and fraud for conversion of equipment. NCR removed the action to the federal district court on the basis of diversity of citizenship. After a jury trial, Glovatori-um was awarded compensatory damages for intentional misrepresentation, breach of warranty, and breach of the implied covenant of good faith. Punitive damages were also awarded.

NCR appeals from the judgment of the district court.

I. SUFFICIENCY OF THE EVIDENCE OF FRAUD BY NCR

NCR contends that the evidence adduced at trial did not establish that it acted fraudulently in the sale of the SPIRIT/8200 computer system to Glovatorium. Under California law, fraud is established when a misrepresentation is knowingly made with the intent to induce reliance, and justifiable reliance results, causing plaintiff damage. Crocker-Citizens National Bank v. Control Metals Corp., 566 F.2d 631, 636-37 (9th Cir. 1978); Fidelity Savings and Loan Association v. Aetna Life & Casualty Corp., 440 F.Supp. 862, 866 (N.D.Cal.1977), aff’d 647 F.2d 933 (9th Cir. 1981). Review of…