Gustavson

MEMORANDUM *

National Integrated Technologies, Inc. (“NITI”) sued Robert Gustavson and Protection Systems, Inc. (“PSI”) for breach of contract, rescission based on fraud, and conversion. Gustavson and PSI (hereinafter referred to as “Gustavson”) counterclaimed breach of contract. A jury found for NITI, awarding $1.5 million in damages. The district court reduced the judgment to $385,687. The jury awarded $75,000 in the punitive damage phase of the trial; the court reduced the punitive award to $50,000 for each defendant.

Gustavson appeals, claiming a new trial is warranted because (1) the district court read several previously withdrawn or misleading instructions; (2) NITI elected the remedy of rescission after the jury went to deliberate and the jury was never told that it could no longer consider the breach of contract and conversion claims; (3) NITI was allowed to testify as to the amount of attorneys’ fees; and (4) the punitive damages are too high in light of appellants’ financial state.

The district court had diversity jurisdiction, 28 U.S.C. § 1332 , and supplemental jurisdiction, 28 U.S.C. § 1367 . We have jurisdiction pursuant to 28 U.S.C. § 1291 .

1. Previously…