Professional Documents
Culture Documents
No. 96-2066
Appellee,
v.
Appellant.
____________________
____________________
Before
____________________
Joan A. Lukey,
_____________
Hale and Do
___________
Kenneth L. Kimmell,
___________________
with whom
____________________
Bernste
_______
CYR,
CYR,
Senior Circuit
Judge.
Senior Circuit
Judge
_______________________
WorldCom challenges
a district
for breach
of its
Time, Inc.
("Play Time")
Defendant-appellant
court judgment
agreement to
awarding damages
assign plaintiff-appellee
a toll-free "800"
Play
vanity number.
We
I
I
BACKGROUND1
BACKGROUND
__________
WorldCom,
business
in Jackson,
Massachusetts,
corporation
Mississippi,
provides
and
subscribers
an
with
to industry standards,
office
place of
in
Revere,
specialized
numbers.2
long-
Pursuant
are stored in
central
database
("SMS/800").
known
All "800"
as the
800
Service
numbers are
reserved
Management System
and assigned
to
through SMS/800.
In
family-owned
March
1994,
Play
corporation
Time,
engaged in
Massachusetts-based,
selling art
supplies, was
Play Time
shareholder and
co-manager,
Michael Levosky, a
envisioned a
nationwide
call a
____________________
Roche v.
_____
820,
toll-free
an automated
near the place the caller wanted to lease commercial real estate.
Play Time would generate income from the fees charged real estate
brokers for
usage of the
toll-free "800"
number.
To that
vanity
number,
business message
customers.
Number"),
advised
end, Play
one
whose alphabetical
readily identified
Levosky
which
decided
would
Levosky that
to
to obtain
a suitable
counterpart
conveyed a
and remembered
by targeted
obtain 1-800-"367-5327"
transpose
the Number,
("the
as "FOR-LEAS[E]."
WorldCom
though not
use, was
then in
20, 1994.3
Levosky
called
Massachusetts, which
the
WorldCom
handled other
office
telephone business
Time, and
confirmed
in
Revere,
for Play
Burton, who
in mid-April.
____________________
"assigned," "working,"
After a subscriber
"spare," "disconnect,"
one of five
before reverting
to
main categories:
or "unavailable."
needs a particular
Only numbers
in
reserving it
with SMS/800.
Once an
has been
SMS/800
and assign
it to
Play
Time once
it attained
"spare"
status.
On
Play
Time.4
Notwithstanding
been designated
the RESP ORG for the Number, however, it did not do so.
ascertain
Levosky
why the Number had not yet been assigned to Play Time,
On
May
11,
1994, Levosky
called
Joseph
Shannon, a
appropriate paperwork
had
been
completed.
Levosky
promptly
office in
Although
printed a
received in
San Antonio on May 12, when Shannon called the San Antonio office
on
May 13
received.
he was
informed that
the documents
had never
been
Although the
____________________
4Any
RESP
ORG
may
reserve
The
"reserve" status.
a number
could remain
a number
in
"spare"
status
relevant to
in reserve status
for up
this
to 60
days.
Thereafter, it
automatically reverted to
"spare" status
Time.
Shannon was
getting
the
told
the delay
Number released
was
from SMS/800,
due to
difficulty in
notwithstanding the
But
___
Meanwhile,
office
in Indiana
business.
to
obtain
Eisemann intended to
referral system
20, 1994,
one Michael
similar to that
the Number
for
a WorldCom
his real
a nationwide
envisioned by Levosky.
after Levosky
estate
On May
first made
verbal request for the Number and nine days after Levosky's first
written request,
office
Eisemann submitted
in Indiana,
with
the
the order
required
to the
paperwork.
WorldCom
Levosky's
Eisemann, because its Revere office had never entered Play Time's
there
had been
advised him
would soon
the
some
status.
delay due
to paperwork
determine whether
office.
The
call
was answered
Detroit,
Michigan,
maintenance
contacted WorldCom,
only to
problems, Shannon
Number to
it would
ring at
Play Time's
instead by
an
office.
Whereupon
be informed that
the Number
employee in
there had
Levosky
been a
computer "glitch."
May
27,
by May
31 it
maintenance office.
Eisemann four
remaining with
was
once again
ringing at
Time on
the Detroit
Eisemann.
On June 2,
2, ultimately
Shannon tracked
down the
to Eisemann, and learned for the first time that Eisemann too had
requested the
problem,
Number.
Levosky
complained
months earlier.
After
Shannon informed
that
WorldCom
Levosky of
the
originally
had
WorldCom to disconnect
the
Shannon and
his supervisor,
Charles Hurd,
Number be
returned to Play
Vice President of
Time.
the
Number could be
answer the
Hurd informed
question.
Brady Buckley,
expected to
Buckley
approached
produce.
Hurd was
unable to
"F--- it[;]"
"leave it alone."
Upon
unwilling
to
learning that
assist
him
the Revere
further,
office
Levosky
was unable
contacted
Deborah
or
When
to Play Time,
Surrette asked
Kelle Reeves,
and
to
RESP ORG,
followed in
people,
but
office
or to
director of customer
determine whether
regard to the
without
Number.
WorldCom
policy had
After speaking
attempting either
ascertain which
provisioning
to
with several
contact
been
the Revere
requested the
_________
industry
complied with
"first-come, first-served"
to Play
its reassignment.
maintained
Number.
See
___
that Play
WorldCom
relationship
with
supra note
_____
Time had
then
altered
Levosky
was
been
5.
Levosky
the first
course,
not
___
guidelines prohibited
nevertheless
to request
explaining
controlled
by
that
the
its
industry
and SMS/800.
represented to Levosky
AT&T had
requested
According to WorldCom,
it,
but had
released
the Number
to
"spare" status
WorldCom.
Rather,
____________________
5Industry guidelines
requests
are honored
first-served
initiated by a
basis, at
provide
based on
the
that:
"Specific
availability,
time
the
on a
reservation
800
Number
first-come,
request
is
as we
designated RESP
he had submitted
received
San Antonio
by its
office
even though
p. 4, had
until after
a WorldCom
documents
not been
the May
employee in
20th
San
Play
Time brought
demanding
damages
Eisemann
was named
specific performance
suit against
and
WorldCom on
specific
performance.
an indispensable
claim
party in
because he
November 9,
1994,
Shortly
after
relation to
the
still controlled
the
Number
he
prevent WorldCom
Play Time
then offered
Eisemann
an immediate
$5,000
in
return for
dismiss its
value of
$10,000
the Number.
At the
the Number.
Eisemann
it
offered to
if he would testify
countered with
negotiations
same time,
to the
a demand for
Their
Eisemann
nevertheless
testified
at
trial
that
the
Number did have inherent value, explaining that "people would buy
the [vanity]
pamphlet he had
potential value."
He
produced a
touting the
importance of
vanity
numbers in
reaching potential
customers.
Although Eisemann
acknowledged that
into an agreement
Levosky "out of
his hair," he
he was
motivated to
enter
wanted to get
the
of
the
Number under
standard.
because
The
the jury
total
"willing-transferor-willing-transferee"
award was
limited
to $50,000,
however,
under more
than one
At
a later
hearing, the
presiding
judge found
civil
court
determined WorldCom's
and
held
that
it had
within Massachusetts.
or deceptive business
occurred
"primarily
that
practices.
The
and deceptive,
and substantially"
damages award made by the jury, see Mass. Gen. Laws ch. 93A,
___
11
(1984), and awarded attorney fees and costs under Mass. Gen. Laws
ch.
93A
and
the
Federal Communications
Act.
Finally,
the
as moot.
II
II
DISCUSSION
DISCUSSION
__________
1.
1.
the
jury
to
apply
"willing-transferor-willing-transferee"
are without
violate
inherent value as
a matter
of law, since
it would
court set
itself
to the
measure of damages.
court's proposed
task
of articulating
an
appropriate
articulation of
the measure
of damages
until
the
negligence
claim
contract claim.
should
be
different
from that
on
the
exchange:
WorldCom:
________
haven't
_______
any comments
___ ________
assignor-willing-assignee
_________________________
wanted
to
reflect what
on
__
theory.
______
the
record so
just
far
any comments on
The Court:
_________
to make objection.
WorldCom:
________
The Court:
_________
way
damages on
Yes.
___
WorldCom:
________
Right.
than simply to
____
__
in accordance
__ __________
on
I don't think I
_ _____ _____ _
do other
__ _____
the jury
with my
____ __
damages, and
requested instruction
_________ ___________
I expect
that's
what I'll
(Emphasis added.)
10
The record on
proposed instruction by
WorldCom nor
reflects
the
grounds
for its
objection
to
the
The
issues
relating
to
included a statement
the "willing-transferor-willing-transferee"
standard, as follows:
1(c).
What
do you
find to be fair
of each
following types,
of the
breach . . . of contract?
for .
. .
Answer in DOLLARS
or NONE.
(1)
Reimbursement
preponderance of
of
losses
the evidence
proved by
to have
been
valued by
the
out-of-pocket expenses.
(2)
Fair
market value
(as
willing-transferor-willing-transferee
dard)
of a
Time,
on or
transfer,
about
by Eisemann
September
stanto
21, 1995,
of the
Play
of
800-367-
The
same formula
was
used for
the
contract, negligence,
and
The
willing
transferor
and
willing
transferee are
hypothetical persons
by the
help us
law to
decide questions
valuation in circumstances
persons have arrived
the
property or
You, as
created
in which no
at an
property
decisionmakers on
real
exact value
rights at
of
for
issue.
this question
of
transactions between
transaction of the
- indeed of
a contrary
If the reality is
that in
that transferred in
transferred
real-life
in
11
this case
an
has not
arm's-length
transaction
imagine a
between
real people,
transaction not
transaction described in
you
must
exactly like
any
you.
and
willing
come to an
agreement.
negotiations in failure.
the willing
transferee,
They never
always
end their
They always
arrive
The
aim of
factfinding
by using
this
willing-transferor-willing-transferee
standard is to help you evaluate the parties'
evidence, and their
and
about formulas
and
figures, and
about
issue
are
of
value.
evaluation in
transferor
You
the way
and
to
you find
willing
do
your
the willing
transferee
would
To
these
suggested
by
binding.
They
transferor
and
persons
different
opposing
parties
they
the
are
do
not
enables
not
The willing
transferee
formulas
but
But in
before them.
judge invited
form.
the
objections to the
special verdict
"instruction
on the
measure
of damages"
relating
to the
"willing-transferor-willing-transferee" standard.
The
district
assign as error
party may
12
unless
that party
objects thereto
before the
jury retires
to
added).
We
51 must be followed
Inst. of Tech.,
______________
without deviation."
objected to
________ __
strictures of Rule
Smith v.
_____
Massachusetts
_____________
See also
___ ____
1213 (1st
Cir. 1995).6
are subject
which requires
________
defect in the
rights of
the parties."
Fed. R.
to "disregard
Civ. P.
61.7
Rule 61,
__
any error
or
substantial
Absent strict
compliance with
"caused
miscarriage
of
justice
or .
assigned error
undermined
the
____________________
6The Rule
51 standard
See
___
applies to the
jury charge
and any
1997); Clausen v.
_______
Sea-3, Inc.,
___________
21
novo.
____
Although
evaluating the
we
exercise
legal correctness
"independent
of the
judgment
district court's
jury
36 F.3d
special verdict
Rule 51 nonetheless
in
must show
a party which
that the
has
assigned
error
affected "substantial
whereas
party
which
has
rights," see
___
Fed.
not complied
R. Civ.
with
Rule
P. 61,
51
must
13
Inc., 54
____
erroneous
jury
instruction warrants
timely objection, an
new trial
only
in the
integrity
or
public
(internal quotation
173,
reputation
of
marks omitted));
The
judicial
Elwood v.
______
proceedings."
Pina, 815
____
latter standard
"plain error"
964 F.2d
Inc.,
____
21 F.3d
933
Cir. 1992);
1181, 1196
F.2d
(1st Cir.
at 176,
Clausen v. Sea-3,
_______
______
1994) (quoting
Toscano v.
_______
Rule
51
requires
punctual
objection
identifying
tion."
____
Fed.
WorldCom
R. Civ.
P. 51
(emphasis added).
interposed no record
objection to the
Here,
however,
special verdict
of
damages."
Moreover,
WorldCom
articulated
jury charge.
Failure
particularity forfeits
See Scarfo,
___ ______
54 F.3d at
to
object
review under
_____
form or the
requisite
rule.
____
1952).
the
grounds
_______
(1st Cir.
with
no
Consequently,
appellate review is
limited to
14
asserted
error not
corrected.
See Scarfo,
___ ______
54
F.3d at
940.
First,
district court,
see supra
___ _____
the jury
with a
these circumstances.
(holding, in action
shares
of stock,
market
value of
plaintiff was
the stock at
"entitled to
the time
recover the
of its sale");
fair
Hall v.
____
margin agreement
caused by
sale of
plaintiff's shares
without
is proper measure
sale of goods
Thus,
at
articulated
contract relating to
the
very
by
the
least,
the
district
"fair
court
market
on the market).
value" standard
effectively
foreclosed
WorldCom's claim of
of justice.") standard.8
error" ("miscarriage
____________________
8Under
"substantial
or has
Lataille
________
a substantial
v. Ponte,
_____
effect on the
754 F.2d
outcome of
33, 37
(1st Cir.
the case.
See
___
1985) (defining
as "whether we can say 'with fair assurance ... that the judgment
was
not
substantially
swayed by
the
States v. Pisari
______
______
in
See also
___ ____
original)).
12 JAMES
15
error'"
(quoting United
______
WM. MOORE
ET AL.,
MOORE'S
measure of damages
either
however,
standard,
instruction
outlined a fair
especially
since
the
challenged
of damages,
WorldCom misses
or
release
for a
the mark
with its
consideration
was
argument that
the
brokering, barter,
prohibited.9
Quite
the
____________________
FEDERAL PRACTICE
the
In order to satisfy
however,
an
appellant
must
show
"more
than
the
simple
51.21[2].
to be
9 MOORE'S FEDERAL
considered are:
whether the
failure
reviewing court of
of
to
raise
claim
below
deprived
the
constitutional magnitude;
highly
the
whether
the
omitted argument
is
prejudice; whether
and, perhaps
the omission
most importantly,
importance to the
v. Harwood; 69
_______
public.
F.3d 622,
whether the
or deliberate;
issue
is of
great
was inadvertent
Cir. 1995)
("legislative
to raise
51.21[2].
Our
no issue of
Nor does
the
800
numbers
are not
individual
proprietary
or
interest
to be
treated as
bought or sold
entity
in
is
any
granted
800
and
a
number
assigned.
Providers
RESP
are
ORGs
and
prohibited
800
from
Service
selling,
fee
800
Assigning,
Numbers
_______
Providers,
or
by
or
activating
RESP
Customers
ORGs,
800
for
the
16
contrary,
the
acknowledges
Subscriber[s]
pertinent
the
. .
ultimate
. to
Industry
right
control
of
Guideline
"800
their 800
Service
explicitly
End-User
Service, and
their
reserved, active,
Guidelines
December
RESP
or assigned
1, 1993).10
800 Service
Numbers."
Administration 2.2.1,
Industry
(Issue 3.0,
Id.
___
2.2.1,
1.
Subscribers, on the
Thus,
foreclose, a
had
industry
failed
to
guidelines did
inherent value in
establish
Id. 2.2.1,
___
the marketplace.
that
any
right to
2.
not impede,
for
let alone
the Number
Consequently, WorldCom
use
the
Number
was
____________________
primary
purpose
of
selling,
brokering,
a fee (or
other
has the
800
800 Service
ultimate
Service,
and
End-User Sub-
right to
their
control
reserved,
Industry Guidelines
for 800
(Issue
10Similarly, the
have
"no
ownership
particular 800
placing
interest
number," but
number
actually
this [sic]
proprietary
explicitly stated
and
17
in
also that
use
any
"upon
.
controlling interest
Tariff F.C.C.
(February 7, 1994).
right
substantially in
Customers do have a
800 number(s)."
that subscribers
No. 2,
C.3.3.3
proceedings."
at 152 (internal
quotation marks
omitted).
2.
2.
WorldCom
also
challenges
Civ. P.
50.
It
assigns two
the district
court
as a matter of law.
errors:
(i)
Play Time
ruling
See Fed. R.
___
failed to
any WorldCom
negligence.
As
Play Time
failed to prove
damages as
it sustained any
of law upon
breach of contract
which
are assessed
____________________
11Appellate
challenges
under
Rule 50
face
hurdle:
matter of
law is plenary.
. .
. [W]e
such a
motion only
if reasonable
formidable
Ansin v. River Oaks Furniture, Inc., 105 F.3d 745, 753 (1st
_____
__________________________
1997)
(internal quotation
marks
omitted),
petition for
________ ___
Cir.
cert.
_____
no inherent value,
Time established no
see supra p.
___ _____
recoverable damages.
As the
9; hence,
that
Play
valueless as a matter of law, see supra pp. 16-17, its claim must
___ _____
be rejected in the present context as well.
18
is
had been
in, if
performed, so
far as
contemplation
reasonable men as
breach, and so
to have been
of
the
a probable
parties
as
result of
the
far as compensation
within
therefor
rational methods
961, 964
(Mass. 1911).
Daewoo Corp.,
_____________
Hetherington).
____________
establish
leaving
923
See also
___ ____
F.2d
Thus,
209,
it
was
95 N.E.
213
(1st Cir.
incumbent
1991)
upon
Play
(applying
Time
to
no
essential
element
to
"'conjecture,
surmise
or
hypothesis."
964).
Wall, 189
____
Hetherington, 95 N.E.
____________
at
real
estate leasing
field, that
in the
other vanity
numbers, had inherent value for which would-be users were willing
to pay.
efforts to
In
close the
Levosky testified
was to
to their
acquire from
Eisemann the right to use the Number at the agreed $50,000 price.
Although
their inability to
agree on value:
Levosky
the
Number;
wanted
Eisemann
larger
was amenable
downpayment,
to
accepting
which Play
Time
$50,000, but
was
unable to
19
manage.
WorldCom
was motivated, in
order to
focuses on an
admission by Eisemann
part, to release
that he
Number in
as a party defendant in
part:
whereby Play-Time
pays you
Number, if
option
of $50,000.00
$5000.00 down
(i.e., $45,000.00
payment).
specific
________
In
__
plus
addition,
________
performance, in
___________ __
exchange
________
for
___
your full
____ ____
cooperation in
___________ __
testimony
_________
Number, the
______
details of
providing credible
_________ ________
which can
be worked
out later.
(Emphasis
clear
that
added.)
at least
WorldCom
argues that
a portion
of the
this letter
makes it
$50,000 agreed
upon by
Eisemann
and
Levosky
represented
the
value
of
Play
Time's
Although
interpretation,
distinct
WorldCom
proposes
an
entirely
another
is
that
the
letter
the
first
to
pay a
total
offers:
Eisemann's rights
in the Number;
reasonable
memorializes two
of
$50,000
for
the claims
Number
did
not
preclude
reasonable
20
jury
finding
of the
to
the
contrary.
was
Accordingly, we conclude
adequate
judgment,
to
and
withstand
that the
the
district
WorldCom
motion
court committed
for
summary
no
error in
3.
3.
Finally,
WorldCom
contends
that
the district
court
ch.
93A generally
93A,
11.
Chapter
proscribes
"[u]nfair
practices
in the conduct
93A,
of any trade or
(1984).
An
businesspeople is
actions and
commerce."
unfair
or
not actionable
deceptive
11 (West
action in this
11 unless
Supp. 1996).
"the
primarily
between
93A,
Laws ch.
practice
under section
of competition or the
Mass. Gen.
any unfair
within Massachusetts.
The
place
of performance"
clear error
907 F.2d
only.
1260, 1264
____________________
on the "nature,
of WorldCom's
actions
extent, and
are reviewed
for
On
the other
hand, the
13Alternatively,
WorldCom
in
there
can be
negligence
claim,
negligence
property.
We need
$50,000
arguing that
homes
damages award
contract claim.
is sustainable
on
the
no
Play
Time
recovery for
to its "person" or
argument, however,
simply on
the
as the
breach of
F.2d 196, 201 n.3 (1st Cir. 1980); see also supra pp. 8-9.
___ ____ _____
21
of
proving
that
its
conduct
"primarily
and
substantially"
of Canada, 109
_________
11,
Clinton
_______
In
of Joseph Shannon,
for WorldCom's
___
relied
who
Brady
extant agreement
on the testimony
Play Time.
with Levosky.
of Charles Hurd,
the conduct
appropriate but
___
The
court also
Shannon's supervisor,
had mistreated
Buckley, see
___
supra p.
_____
6, as
"perhaps the
most dramatic
district
within Massachusetts.
investigation
amounted
As the
to
The district
conducted
mere
by Deborah
"window
Surrette
dressing,"
and
thereby
Kelle Reeves
enhancing
the
WorldCom
court findings.
unfair and
In
Instead, it
deceptive conduct
particular,
assigned to
it accurately
Eisemann by
took place
points
outside Massachusetts.
out that
a salesperson in
the allegedly
the
Indiana and
Number was
that the
22
in New Jersey.
The Supreme
109 F.3d at
a "pragmatic,
Makino,
_______
N.E.2d 519,
398
(Mass. 1988),
for
determining whether
alleged
misconduct
occurred "primarily
and substantially"
in
Massachusetts.
See
___
Bushkin Assocs., Inc. v. Raytheon Co., 473 N.E.2d 662, 672 (Mass.
_____________________
____________
1985).14
Its
inquiries:
principal
the situs
109 F.3d
of plaintiff's losses
at 829; see
___
at 672.
however, in approaching
of the person
person
who
___
uttered
_______
the
at 1265-66;
in Clinton Hospital,
_________________
to whom the
__ ____
special significance, as
As we noted
deceptive statements
the location
are made is
deceptive
Roche,
_____
statements,
since
of
of the
"[t]he
victim's
ingestion of a
the subsequent
The
district
court
analyzed only
the
first Bushkin
_______
____________________
14Although
Bushkin
_______
construed
the
in
operative
the context
3(1)(b)(i), as appearing in
See
___
id.
___
Accordingly, we
11 as well.
language
of Mass.
Gen.
have applied
the Bushkin
_______
109 F.3d at
23
factor,
finding that
the
conduct
on which
it
supra
_____
pp.
explained,
weighty.
4-6
all
took place
in
focused
Buckley, see
___
Massachusetts.
in
We have
is the least
Although we agree
90
other weightier
unfair or
visited
deceptive statements
upon Play
Time in
WorldCom as well.
made by
All the
WorldCom's agents
Massachusetts.
It
was there
were
that
Buckley
believed any
learned the
potential
revenues were
inconsequential;
was provided
with
the numerous
pretexts
by WorldCom
for
not
on
the location
adverse decision
WorldCom sales
of the
WorldCom agents
office (Indiana)
who made
in New
which obtained
the ultimate
Jersey), and
the
the Number
for
Eisemann.
Indiana
But the district court did not find the actions of the
___
sales agent
deceptive
part
conduct.15
and parcel
Moreover,
as
of
WorldCom's unfair
we have
noted,
or
the first
____________________
15Similarly, WorldCom's
able
to
assign
Massachusetts
the
Indiana agent
Number
to
employees followed
Eisemann
through on
had
been
WorldCom's
the commitment
to
24
Bushkin factor
is the least
weighty.
Finally, the
location of
_______
Surrette and
Reeves is
insufficient to
overcome the
competing
including
Levosky's receipt of
the results of
substantially within
Massachusetts.
carry
its burden of
Thus,
primarily and
WorldCom failed
to
actionable.
III
III
CONCLUSION
CONCLUSION
__________
As
judgment
is affirmed.
________
SO ORDERED.
SO ORDERED.
__________
____________________
Play Time.
See supra
___ _____
p. 5
to obtain
the
Number only
because Revere
agents failed
order in computer).
25
to enter
Play Time's