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John P. Dicicco, Jr., and Jose Conte, D/B/A P&l Video v. Rentrak, Corporation, F/k/a National Video, Inc.

Citations: 56 F.3d 70; 1995 U.S. App. LEXIS 19898Docket: 93-35810

Court: Court of Appeals for the Ninth Circuit; May 18, 1995; Federal Appellate Court

Narrative Opinion Summary

In a dispute between DiCicco and Conte, operating as P&L Video, and Rentrak Corporation, the Ninth Circuit addressed issues arising from a Franchise Agreement for a video store in Massachusetts. The plaintiffs alleged breach of contract, and the district court ruled in their favor on the existence and breach of the agreement. Rentrak appealed, arguing several points including impropriety in reversing a prior judicial order, summary judgment without sufficient notice, and misinterpretation of contractual relocation rights. The court found these arguments meritless, affirming the plaintiffs' claims. It upheld the district court's denial of Rentrak's motion to amend its pretrial theory and the exclusion of speculative testimony regarding a non-competition waiver. Regarding procedural issues, the court found no abuse of discretion in denying Rentrak's motion to dismiss based on non-joinder, as the plaintiffs could be personally liable under the contract. The court also affirmed the award of attorney's fees to the plaintiffs, interpreting the agreement to allow such fees in litigation. Ultimately, the Ninth Circuit affirmed the district court's judgment, supporting the plaintiffs' position.

Legal Issues Addressed

Authority of Successive Judges to Overturn Prior Orders

Application: A second judge can overturn a prior order if they provide valid reasoning, such as avoiding unnecessary trials.

Reasoning: The court clarified that a second judge can overturn a prior order if they provide valid reasoning, such as the desire to avoid unnecessary trials.

Award of Attorney's Fees Under Contractual Provisions

Application: The court upheld the award of attorney's fees to the plaintiffs, interpreting the contract language to allow such fees in suits and arbitration matters.

Reasoning: The court rejected this interpretation, noting that attorney's fees were explicitly allowed in suits and arbitration matters, regardless of any limitations on specific types of legal actions.

Denial of Late Amendments to Pretrial Orders

Application: The court denied Rentrak's motion to amend its pretrial order to introduce a new legal theory because it would severely prejudice the plaintiffs.

Reasoning: The district court denied this motion, ruling that allowing a new legal theory just before trial would severely prejudice the plaintiffs and was therefore not an abuse of discretion.

Exclusion of Speculative Testimony

Application: The court disallowed speculative testimony regarding a hypothetical waiver of the non-competition agreement.

Reasoning: Additionally, the court found that Rentrak's attempt to allow its Senior Vice President to testify about a hypothetical waiver of the non-competition agreement was too speculative and thus properly disallowed.

Interpretation of Franchise Agreement Provisions

Application: Section 1.2 of the Franchise Agreement does not allow Rentrak to relocate a Retail Franchise without prior written consent.

Reasoning: The court found that the language of Section 1.2 clearly distinguishes between an Authorized Dealership and a Retail Franchise, indicating that Rentrak could not relocate the Retail Franchise without prior written consent.

Non-Precedential Dispositions under Ninth Circuit Rule 36-3

Application: The court's opinion is not precedential and should only be cited in specific legal contexts as per Ninth Circuit Rule 36-3.

Reasoning: Ninth Circuit Rule 36-3 specifies that non-published dispositions are not precedential and should only be cited in specific legal contexts.

Real Party in Interest and Joinder Under Federal Rules

Application: DiCicco and Conte could be held personally liable under a pre-incorporation contract, negating the need to join P&L Video as a necessary party.

Reasoning: The district court denied this motion because DiCicco and Conte, as promoters, could be personally liable under the pre-incorporation contract, and since P&L Video did not exist, there was no risk of double liability.

Summary Judgment and Rule 56(c) Compliance

Application: Judges have discretionary authority to grant summary judgments during pretrial conferences, despite Rule 56(c) requiring a 10-day response period.

Reasoning: The court acknowledged that while Rule 56(c) is strict, judges have discretionary authority to grant summary judgments during pretrial conferences, especially when discovery is complete.