You will recall that Judge Dale Kimball asked the parties in SCO v. Novell to provide him joint proposed jury instructions, working from the stock Utah civil jury instructions form, and where they couldn't agree on wording to provide separate versions, with citations to authority, meaning case law, statute, or whatever, for the proposed wording.
First, the parties filed on August 29 a Joint Statement Regarding Jury Instructions [PDF] along with Exhibits 1 and 2 [PDF], the first being the instructions they were able to agree on and the latter the ones where they don't see eye-to-eye, at least not yet. They informed the judge that they would continue to try to reach agreement. Now they have filed a revised set, stating that there were "technical problems" with the first version, and so they have filed the amended version. Thanks to Steve Martin, we have the new jury instructions as text, and here's the new Joint Statement [PDF]. Here's what it says is still in dispute: The parties are not in agreement on the substantive instructions. As a threshold matter, the parties are divided on the effect of the Court's August 10 order on the instructions and the relative burdens of proof on apportionment. They say they are still working on trying to resolve the last bits. Meanwhile, here's what they have so far. Words in the text in bold in Exhibit 1 are deviations from the standard Utah civil jury instruction template. SCO of course waxes poetic, and long, on the subject of damages. It would like the jury told that any damages awarded to Novell can only be "reasonable" and they want to include wording like this: In considering whether Novell has proven that it has suffered damages, you must determine whether Novell has met its duty to establish, by the preponderance of the evidence, that it is entitled to any of the payments SCO received under the 2003 Sun and Microsoft Agreements and/or the SCOsource Agreements. Since the judge already said that SCO is liable for conversion and must pay Novell something, the amount to be determined at trial, it's hard to imagine such wording being favored by the judge, who must be wondering, as must Novell, if he's somehow stuck in some legal sequel to Groundhog Day, whereby he must repeat the same ruling over and over regarding the same claim he thought he ruled on already.
*****************************************
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
Now that you have heard the evidence and the argument, it is my
duty to give you the instructions of the Court concerning the law
applicable to this case. It is your duty as jurors to follow the
law as stated in the instructions of the Court, and to apply the
rules of law to the facts as you find them from the evidence in the
case. You are not to single out one instruction alone as stating
the law, but must consider the instructions as a whole.
Nor are you to be concerned with the wisdom of any rule
of law stated by the Court. Regardless of any opinion you may have
as to what the law is or ought to be, it would be a violation of
your sworn duty, as judges of the facts, to base a verdict upon
anything but the law as I instruct you and the evidence in the
case.
Nothing I say in these instructions is to be taken as an
indication that I have any opinion about the facts of the case, or
what that opinion is. It is not my function to determine the facts;
it is your function as jurors.
Justice through trial by jury depends upon the willingness of
each individual juror to seek the truth as to the facts from the
same evidence presented to all the jurors, and to arrive at a
verdict by applying the same rules of law, as given in these
instructions. You are to perform this duty without bias or
prejudice as to any party. Our system of law does not permit jurors
to be governed by sympathy, prejudice, or public opinion. Both the
parties and the public expect that you will carefully and
impartially consider all the evidence in the case, follow the law
as stated by the Court, and reach a just verdict, regardless of the
circumstances.
1/17 (1)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
The evidence in this case consists of the sworn testimony of the
witnesses, all exhibits received in evidence, all facts that may
have been admitted or stipulated, and the applicable presumptions
that will be stated in these instructions.
Statements and arguments of counsel are not evidence in this
case. When, however, the attorneys on both sides stipulate or agree
as to the existence of a fact, the jury must, unless otherwise
instructed, accept the stipulation and regard that fact as
conclusively proved.
During the course of trial, it often becomes the duty of counsel
to make objections. You should not consider or be influenced by the
fact that objections have been made. Any evidence to which an
objection was made and sustained by the Court, and any evidence
ordered stricken by the Court, must be entirely disregarded.
Anything you may have seen or heard outside of this courtroom is
not evidence and must be entirely disregarded. You are to consider
only the evidence in this case. However, in your consideration of
the evidence, you are not limited to the bald statements of the
witnesses. On the contrary, you are permitted to draw from the
facts that you find have been proved, such reasonable inferences as
seem justified in light of your experience. An inference is a
deduction or conclusion that reason and common sense would lead you
to draw from facts that are established by the evidence in the
case.
2/17 (2)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
There are, generally speaking, two types of evidence from which
a jury may properly find the truth as to the facts of a case. One
is direct evidence, such as the testimony of an eye witness. The
other is indirect or circumstantial evidence, which is proof of a
chain of circumstances pointing to the existence or non-existence
of certain facts. The law makes no distinction between the weight
to be given to either direct or circumstantial evidence, but simply
requires that the jury find the facts in accordance with the
preponderance of all the evidence in the case, both direct and
circumstantial.
3/17 (3)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
You are the exclusive judges of the credibility of the witnesses
and the weight of the evidence. You may believe or disbelieve all
or any part of any witness' testimony. In judging the weight of the
testimony and the credibility of the witnesses you have a right to
take into consideration their bias, their interest in the result of
the suit, their relationship to any of the parties in the case, or
any probable motive or lack thereof to testify fairly, if any is
shown. You may consider the witnesses' deportment upon the witness
stand, the reasonableness of their statements, their apparent
frankness or candor, or the want of it, their opportunity to know,
their ability to understand, their capacity to remember, and the
extent to which their testimony has been either supported or
contradicted by other credible evidence in the case. You should
consider these matters together with all of the other facts and
circumstances that you may believe have a bearing on the
truthfulness or accuracy of the witnesses' statements.
4/17 (4)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
Inconsistencies or discrepancies in the testimony of a witness
or between the testimonies of different witnesses may or may not be
cause to discredit the testimony of a witness. Two persons may see
or hear the same event differently or reach different conclusions
from the same facts. In weighing the effect of an inconsistency,
consider the importance of the matter to which it pertains and
whether the inconsistency may have resulted from innocent error,
lapse of memory, or intentional falsehood. If there are apparent
discrepancies in the evidence, you may be able to reconcile them,
or you may have to decide which of two or more conflicting versions
of the facts you will accept.
5/17 (5)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
If you believe any witness has willfully testified falsely as to
any material matter, you may disregard the entire testimony of such
witness, except as it may have been corroborated by other credible
evidence.
6/17 (6)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
The rules of evidence ordinarily do not permit the opinion of a
witness to be received as evidence. An exception to this rule
exists in the case of expert witnesses. A person who, by education,
study, and experience, has become an expert in any art, science, or
profession, and who is called as a witness, may give his or her
opinion as to any such matter in which he or she is versed and
which is material to the case.
You are not bound, however, by such an opinion. You should judge
expert opinion testimony just as you judge any other testimony.
Give it the weight to which you deem it entitled, whether that be
great or slight, and you may reject it, if in your judgment the
reasons given for it are unsound.
7/17 (7)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
If any reference by the Court or by counsel to matters of
evidence does not coincide with your own recollection, it is your
recollection that should control during your deliberations.
You will be given a set of the exhibits that were admitted in
the trial in the jury room.
8/17 (8)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
In this trial, certain testimony has been read to you by way of
deposition. A deposition is testimony taken under oath before trial
and preserved in one form or another. It is entitled to the same
consideration as if the witness had personally appeared.
9/17 (9)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
In this case, Novell has the burden of proving its claims
against SCO by a preponderance of the evidence.
By a preponderance of the evidence, as that term is used in
these instructions, is meant that evidence, which to your minds, is
of the greater weight. The evidence preponderates to the side
which, to your minds, seems to be the most convincing and
satisfactory. The preponderance of the evidence is not alone
determined by the number of witnesses, nor the amount of testimony
or documentary evidence, but rather the convincing character of the
testimony and other evidence, and the inferences reasonably to be
drawn therefrom, weighed by the impartial minds of the jury. This
rule does not require proof to an absolute certainty, nor does it
require proof beyond a reasonable doubt which is the standard
applied in criminal cases. A party has succeeded in carrying the
burden of proof by a preponderance of the evidence on an issue of
fact if, after consideration of all the evidence in the case, the
evidence favoring his or her side of the issue is more convincing
to you than not.
10/17 (10)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
Your verdict must be based solely upon the evidence developed at
this trial, or the lack of evidence.
It would be improper for you to consider any personal feelings
you may have about one of the parties' race, religion, national
origin, sex or age.
It would be equally improper for you to allow any feelings you
might have about the nature of the claims against SCO
to influence you in any way.
The parties in this case are entitled to a trial free from
prejudice. Our judicial system cannot work unless you reach your
verdict through a fair and impartial consideration of the
evidence.
SCO and Novell are corporations. A corporation is
entitled to the same treatment as a private individual. You must
consider and decide this case as a case between persons of equal
rights, equal worth, and equal standing. All persons, including
corporations, stand equal before the law and are to be dealt with
as equals in a court of justice.
11/17 (17)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
It is your duty, as jurors, to consult with one another and to
deliberate with a view of reaching an agreement, if you can do so
without violence to individual judgment. You must each decide the
case for yourself, but only after an impartial consideration of the
evidence in the case with your fellow jurors. In the course of your
deliberations, do not hesitate to re-examine your own views, and
change your opinion, if convinced it is erroneous. But do not
surrender your honest conviction as to the weight or effect of
evidence, solely because of the opinion of your fellow jurors, or
for the mere purpose of returning a verdict.
Remember at all times that you are not partisans. You are judges
— judges of the facts. Your sole interest is to seek the
truth from the evidence in the case.
12/17 (12)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
When you retire to deliberate, you should first select one of
your number to serve as foreperson to preside over your
deliberations and be your spokesperson here in Court.
13/17 (13)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
If it becomes necessary during your deliberations to communicate
with the Court, you may send a note by a Court Security Officer,
signed by your foreperson, or by one or more members of the jury.
No member of the jury should attempt to communicate with the Court
by any means other than a signed writing, and the Court will never
communicate with any member of the jury on any subject touching the
merits of the case, other than in writing or orally here in open
Court.
You will note from the oath about to be taken by the Court
Security Officer that he, as well as all other persons, is
forbidden to communicate in any way or manner with any member of
the jury on any subject touching the merits of the case.
Bear in mind also that you are never to reveal to any person
— not even to the Court — how the jury stands
numerically or otherwise, until you have reached a unanimous
verdict.
This case is being submitted to you by a Special Verdict, which
asks you to answer certain questions. When you have answered all
the questions required to be answered, please have your foreperson
sign the Special Verdict form and advise the Court Security Officer
that such has been done. You will then be returned to the
courtroom, where the Special Verdict will be read.
14/17 (14)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
In this case you may not include in any award to Novell,
any sum for the purpose of punishing SCO, or to make an
example of them for the public good or to prevent other
incidents.
15/17 (15)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
The law forbids you to decide any issue in this case by
resorting to chance. If you decide that a party is entitled to
recover, you may then determine the amount of damages to be
awarded. It would be unlawful for you to agree in advance to take
the independent estimate of each juror, then total the estimates,
draw an average from the total, and to make the average the amount
of your award. Each of you may express your own independent
judgment as to what the amount should be. It is your duty to
thoughtfully consider the amounts suggested, test them in the light
of the law and the evidence and, after due consideration,
determine, which, if any, of such individual estimates is
proper.
16/17 (17)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 1: Agreed Upon
Instructions |
JURY INSTRUCTION NO. __
The fact that I have instructed you concerning damages is not to
be taken as an indication that I either believe or do not believe
that Novell is entitled to recover such damages. The
instructions in reference to damages are given as a guide in case
you find from the preponderance of the evidence that
Novell is entitled to recover. However, if you determine
that there should be no recovery, then you will entirely disregard
the instructions given you upon the matter of damages.
17/17 (17)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
BREACH OF FIDUCIARY DUTY
Novell alleges that SCO breached fiduciary duties to Novell
related to SCO's obligations with regard to SVRX Royalties. In
general, a fiduciary duty is an obligation to act in the best
interests of another. Thus, partners have fiduciary duties to each
other, a trustee has a fiduciary duty to the beneficiaries of the
trust, and an agent has fiduciary duties to its principal.
You are instructed that SCO owed Novell fiduciary duties because
the APA made SCO Novell's agent for collecting SVRX Royalties. As a
fiduciary, SCO was required to act with utmost good faith and to
put Novell's interest above its own on all matters involving SVRX
Royalties. SCO was required to handle the SVRX Royalties with due
care, to account for SVRX Royalties to Novell, and to keep Novell
fully informed as to all matters pertinent to Novell's interest in
the SVRX Royalties. Novell does not need to establish that SCO
breached a contract to show that SCO breached its fiduciary duties
to Novell.
You are further instructed that SCO breached its fiduciary
duties to Novell by failing to account for and remit the
appropriate SVRX Royalty payments to Novell for the 2003 Sun and
Microsoft Agreements. Therefore, you need not determine this
issue.
Novell alleges that, in addition to the Sun and Microsoft
agreements, SCO breached a fiduciary duty by failing to account for
and remit other SVRX Royalties due under the APA, and by failing to
permit Novell to audit its records as required by the APA. Novell's
claims relate to what SCO called "SCOsource agreements" other than
Sun and Microsoft.
To prevail on its breach of fiduciary duty claim as to these
SCOsource agreements, Novell must prove that SCO breached one or
more of its fiduciary duties by failing to account for and remit
SVRX Royalties from these SCOsource agreements or by failing to
permit Novell to audit its SCOsource agreements. You are instructed
that SCO owed Novell the fiduciary duties set forth above
regardless of whether SVRX rights were included in a license for
other types of software, such as UnixWare. You must therefore
determine whether these SCOsource licenses include SVRX rights.
Authority:
- "The APA expressly created an agency relationship between the
parties with respect to SVRX Royalties." (Order at 89); "it is
undisputed that the 2003 Sun and Microsoft Agreements have some
SVRX component," "even incidental licenses of SVRX are considered
an SVRX License" (93, 95); "SCO was required to account for and
pass through to Novell the appropriate SVRX Royalties according to
the SVRX portions of the 2003 Sun and Microsoft Agreements" (96);
"As a matter of law, the court concludes that SCO breached its
fiduciary duties to Novell by failing to account for and remit the
appropriate SVRX Royalty payments to Novell for the SVRX portions
of the 2003 Sun and Microsoft Agreements," "SCO's conduct also
amounts to a breach of fiduciary duty, conversion, unjust
enrichment, and breach of express contract, all of which are
sufficient 'wrongful conduct' to impose a constructive trust." (96,
97)
- Roberts v. Lomanto, 112 Cal. App. 4th 1553, 1562
(2005)
- Committee on Children's Television v. General Foods
Corp., 35 Cal. 3d 197, 221 (1983) (fiduciary obligation where
one knowingly undertakes to act on behalf and for the benefit of
another or enters into a relationship that imposes that undertaking
as a matter of law; fiduciary must give priority to the best
interest
|
BREACH OF FIDUCIARY DUTY
Novell's Seventh Claim for Relief alleges a breach of fiduciary
duty. An agent owes what is known as a fiduciary duty to its
principal. A fiduciary duty imposes on an agent a duty to act with
the utmost good faith in the best interests of its principal. In
order to prove its claim for breach of fiduciary duty, it is
Novell's burden to prove, by the preponderance of the evidence, all
of the following elements:
- That SCO was Novell's agent in collecting payments from its
SCOsource agreements;
- That SCO knowingly acted against Novell's interests in
connection with the SCOsource payments;
- That Novell did not give informed consent to Novell's
conduct;
- That Novell was harmed by SCO's conduct.
In this case, the parties dispute whether SCO was acting as
Novell's agent in collecting payments from the SCOsource
Agreements.
You must determine what payments SCO was supposed to collect for
Novell as Novell's agent under the APA, and what payments it was
entitled to collect for itself. Section 4.16 of the APA provided
that SCO was to collect for Novell only royalties SCO received from
SVRX Licenses. You must therefore determine whether Novell has
proven that the SCOsource Agreements constituted SVRX Licenses as
to which Novell retained the rights to royalties. You must then
determine whether Novell has proven by the preponderance of the
evidence that SCO was Novell's agent in collecting payments from
the SCOsource Agreements, or whether SCO was properly collecting
those payments for itself.
If you determine that Novell has not proven by the preponderance
of the evidence that SCO was acting as Novell's agent in collecting
payments from the SCOsource Agreements, then you must find that SCO
is not liable for breach of fiduciary duty. If you determine that
Novell has proven by the preponderance of the evidence that SCO was
acting as Novell's agent in collecting payments from the SCOsource
Agreements, then you should find that SCO is liable for breach of
fiduciary duty.
Authority:
- CACI 100
- CACI 4102
- Sequoia Vacuum Systems v. Stransky, 229 Cal. App. 2d
281, 288 (1964) ("The determination of the particular factual
circumstances and the application of the ethical standards of
fairness and good faith required of a fiduciary in a given
situation are for the trier of facts.")
|
1/13 (18)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
of the beneficiary)
- Engalla v. Permanente Medical Group, Inc., 15 Cal. 4th
951, 977 (Cal. 1997) ("An agency relationship is a fiduciary one,
obliging the agent to act in the interest of the principal")
- Oakland Raiders v. National Football League, 131 Cal.
App. 4th 621, 631 (2005) (principal-agent relationship gives rise
to fiduciary duty as a matter of law; describing scope of fiduciary
duty of agent);
- Michelson v Hamada, 29 Cal. App. 4th 1566 (1994)
(contract whereby one physician agreed to handle patient billing
and collections for another created an agency relationship)
- Heckmann v. Ahmanson, 168 Cal. App. 2d 119, 136 (1985)
(duty of loyalty prevents agent from profiting at expense of
principle)
- Heurat v. Superior Court, 241 Cal. App. 2d 330, 334
(1966) ("The existence of the fiduciary relation modifies all
agency agreements and creates rules which do not apply to contracts
in which one party is not an agent for the other." Thus, tort
action against agent "is not based upon the theory that the agent
has failed to perform his promise but upon the theory that the
agent has improperly dealt with the affairs of the principal. In
such case, however, the question of whether or not the agent has
improperly managed the principal's affairs depends upon the
interpretation of his agreement with the principal. (See Rest. 2d
Agency, § 376, com. a.)")
- Fischer v. Machado, 50 Cal. App. 4th 1069, 1072 (1996)
(citing Heurat);
- Motion Hearing January 23, 2007 at 40:16-23 (admission that
relationship was fiduciary one with respect to SVRX licenses);
Motion Hearing June 4, 2007 at 35:24-36:3 (same).
|
|
2/13 (19)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
CONVERSION
Conversion is the wrongful taking of property owned by another
in violation of the owner's rights.
You are instructed that SCO is liable for conversion of SVRX
Royalties under the Sun and Microsoft Agreements because it
breached its fiduciary duties to Novell by failing to account for
those royalties and remit appropriate portions to Novell.
Therefore, you need not determine this issue.
Novell claims that SCO is also liable for conversion by failing
to account for and remit other SVRX Royalties due under the APA.
Again, this claim relates to SCO's "SCOsource" agreements. To prove
its conversion claim, Novell must establish only that SCO collected
some amount of money based on the SCOsource agreements that relates
to SVRX. It is undisputed that SCO had a duty to remit such amounts
to Novell.
It does not matter whether SCO knowingly or intentionally kept
royalties owed to Novell for purposes of this claim.
Authority:
- "it is undisputed that the 2003 Sun and Microsoft Agreements
have some SVRX component," "even incidental licenses of SVRX are
considered an SVRX License" (Order at 93, 95); "SCO was required to
account for and pass through to Novell the appropriate SVRX
Royalties according to the SVRX portions of the 2003 Sun and
Microsoft Agreements" (96); "To the extent that SCO has failed to
pass through the appropriate amount of SVRX Royalties under the
2003 Sun and Microsoft Agreements to which Novell was entitled,
Novell is also entitled to summary judgment on its Eight Claim for
Relief for conversion," "SCO's conduct also amounts to a breach of
fiduciary duty, conversion, unjust enrichment, and breach of
express contract, all of which are sufficient 'wrongful conduct' to
impose a constructive trust." (96, 97)
- Haigler v. Donnelly, 18 Cal. 2d 674, 681 (1941) ("A
broker or agent is ordinarily liable for converting the funds of
his principal when he refuses to account for them upon proper
demand. While it is true that money cannot be the subject of an
action for conversion unless a specific sum capable of
identification is involved it is not necessary that each coin or
bill be earmarked. When an agent is required to turn over to his
principal a definite sum received by him on his principal's
account, the remedy of conversion is proper" (citations
omitted).)
- Fischer v. Machado, 50 Cal App. 4th 1069, 1072 (1996)
(same)
- Burlesci v. Petersen, 68 Cal. App. 4th 1062, 1066 (1998)
("The foundation of [a conversion] action rests neither in the
knowledge nor the intent of the defendant. Instead the tort
consists in the breach of an absolute duty; the act of conversion
itself is tortuous. Therefore, questions of the defendants good
faith, lack of knowledge, and motive are ordinarily
immaterial").
|
CONVERSION
Novell's Eighth Claim for Relief alleges that SCO converted
Novell's property by failing to remit royalties purportedly owed to
Novell.
In order to prove its claim for conversion, it is Novell's
burden to prove, by the preponderance of the evidence, all of the
following elements:
- That Novell had a right to possess payments from the SCOsource
Agreements;
- That SCO intentionally took possession of those payments from
the SCOsource Agreements for a significant period of time;
- That Novell did not consent;
- That Novell was harmed; and
- SCO's conduct was a substantial factor in causing Novell's
harm.
In this case, the parties dispute whether Novell had a right to
possess payments from the SCOsource Agreements. You must therefore
determine what payments Novell was entitled to possess under the
APA, and what payments SCO was entitled to keep for itself. Section
4.16 of the APA provided that Novell was entitled to possess only
royalties that SCO received from SVRX Licenses. You must determine
whether Novell has proven that the payments from the SCOsource
Agreements constituted payments that Novell was entitled to possess
under this provision of the APA.
If you determine that Novell has not proven by the preponderance
of the evidence that the payments from the SCOsource Agreements
were payments that Novell was entitled to possess under the APA,
then you must find that SCO is not liable for conversion. If you
determine that Novell has proven by the preponderance of the
evidence that the payments from the SCOsource Agreements were
payments that Novell was entitled to possess under the APA, then
you should find that SCO is liable for conversion.
Authority:
- CACI 2000
- Burlesci v. Petersen, 68 Cal. App. 4th 1062, 1066 (1998)
("Conversion is the wrongful exercise of dominion over the property
of another. The elements of a conversion claim are: (1) the
plaintiff's ownership or right to possession of the property; (2)
the defendant's conversion by a wrongful act or disposition of
property rights; and (3) damages. Conversion is a strict liability
tort.")
- Moore v. Regents of the University of California, 51
Cal. 3d 120, 136 (1990) ("To establish a conversion, plaintiff must
establish an actual interference with his ownership of right of
possession. ... Where plaintiff neither has title to the property
alleged to have been converted, nor possession thereof, he cannot
maintain an action for conversion.'")
|
3/13 (20)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
(Novell has moved to voluntarily dismiss this claim. In the
event the Court does not grant that motion, Novell submits this
proposed instruction.)
BREACH OF CONTRACT
A party breaches its contractual obligations to another party
when it fails to do something that the contract between them
required it to do. Here, Novell alleges that SCO breached its
contractual obligations under the APA when SCO failed to pay to
Novell the SVRX Royalties to which Novell was entitled.
You are instructed that SCO was contractually obligated to pass
through to Novell the SVRX Royalties that SCO collected under any
of the SVRX Licenses into which it entered. You are further
instructed that SCO breached this obligation when it failed to
remit to Novell the SVRX Royalty payments from the 2003 Sun and
Microsoft Agreements. Therefore, you need not determine this
issue.
Novell alleges that, in addition to the Sun and Microsoft
agreements, SCO breached its obligations under the APA by failing
to remit other SVRX Royalties to Novell. Once again, this claim
relates to SCO's "SCOsource" agreements. To prevail on its breach
of contract claim as to the SCOsource agreements, Novell must prove
only that SCO collected some amount of money based on the SCOsource
agreements that relates to SVRX. It is undisputed that SCO had an
obligation under the APA to remit such amounts to Novell. It does
not matter whether SCO knowingly or intentionally kept royalties
owed to Novell for purposes of this claim.
Authority:
- CACI 303
- "The APA expressly created an agency relationship between the
parties with respect to SVRX Royalties." (Order at 89); "it is
undisputed that the 2003 Sun and Microsoft Agreements have some
SVRX component," "even incidental licenses of SVRX are
considered an SVRX License" (93, 95); "SCO was required to
account for and pass through to Novell the appropriate SVRX
Royalties according to the SVRX portions of the 2003 Sun and
Microsoft Agreements" (96); "As a matter of law, the court
concludes that SCO breached its fiduciary duties to Novell by
failing to account for and remit the appropriate SVRX Royalty
payments to Novell for the SVRX portions of the 2003 Sun and
Microsoft Agreements," "SCO's conduct also amounts to a breach of
fiduciary duty, conversion, unjust enrichment, and breach of
express contract, all of which are sufficient 'wrongful conduct' to
impose a constructive trust." (96, 97)
|
BREACH OF CONTRACT
Novell's Third Count for Relief alleges that SCO breached the APA
by failing to remit royalties purportedly owed to Novell.
A failure to perform a contract is a breach. In order to prove
its claim for breach of contract, it is Novell's burden to prove,
by the preponderance of the evidence, all of the following
elements:
- The existence of a contract between Novell and SCO;
- Novell's performance;
- SCO's unjustified failure to do something that the contract
required it to do; and
- Damages to Novell caused by the breach.
In this case, the parties dispute whether SCO was required to remit
to Novell the payments it received from the SCOsource Agreements.
You must therefore determine what payments SCO was required to
remit to Novell under the APA, and what payments it was entitled to
keep for itself. Section 4.16 of the APA provided that SCO had to
remit to Novell only royalties that SCO received from SVRX
Licenses. You must determine whether the SCOsource Agreements
constituted SVRX Licenses upon which Novell retained royalty
rights.
If you determine that Novell has not proven by the preponderance
of the evidence that the SCOsource Agreements were SVRX Licenses
upon which Novell retained royalty rights, then you must find that
SCO did not breach the contract. If you determine that Novell has
proven by the preponderance of the evidence that the SCOsource
Agreements were SVRX Licenses upon which Novell retained royalty
rights, then you should that SCO is liable for breach of
contract.
Authority:
- BAJI 10.85
- Acoustics, Inc. v. Trepte Construction Co., 14 Cal. App.
3d 887, 913 (1971) ("A complaint for breach of contract must
include the following: (1) the existence of a contract, (2)
plaintiff's performance or excuse for nonperformance, (3)
defendant's breach, and (4) damages to plaintiff therefrom.")
|
4/13 (21)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
MONETARY RECOVERY FOR SCO'S UNJUST ENRICHMENT
You must decide how much compensation Novell is entitled to
based on liability I have already found as well as based on any
additional liability you determine. Novell need not establish that
its business was damaged by SCO's actions. Rather, Novell is
entitled to restitution on the basis that SCO received money that
is rightfully Novell's, and that SCO would be unjustly enriched if
it were allowed to keep that money.
To decide the amount of SCO's unjust enrichment to be awarded to
Novell, you must do the following:
First, as noted, you are instructed that SCO is liable for
breach of fiduciary duty and conversion on account of the Sun and
Microsoft agreements. Here, your task is only to properly apportion
the money SCO received from Sun and Microsoft between the amounts
attributable to SVRX and the amounts attributable to non-SVRX
software. Because SCO was Novell's fiduciary, the burden is on SCO
to establish the portion of the money it received from Sun and
Microsoft that is not attributable to SVRX. If you find that SCO
handled the funds in a way that makes apportioning the amount due
Novell difficult, then you should resolve any doubt in favor of
Novell, up to and including awarding all of the funds to
Novell.
Second, if you find in connection with the other SCOsource
agreements that SCO breached its fiduciary duties to Novell with
respect to SVRX Royalties, or is liable for conversion for such
royalties, then you must similarly apportion the amounts SCO
received between SVRX Royalties and non-SVRX Royalties. Again, if
you find that SCO handled these funds in a way that makes
apportioning the amount due Novell difficult, then you should
resolve any doubt in favor of Novell, up to and including awarding
all of the funds to Novell.
Authority:
- "it is undisputed that the 2003 Sun and Microsoft Agreements
have some SVRX component," "even incidental licenses of SVRX are
considered an SVRX License" (Order at 93, 95); "SCO was required to
account for and pass through to Novell the appropriate SVRX
Royalties according to the SVRX portions of the 2003 Sun and
Microsoft Agreements" (96); "To the extent that SCO has failed to
pass through the appropriate amount of SVRX Royalties under the
2003 Sun and Microsoft Agreements to which Novell was entitled,
Novell is also entitled to summary judgment on its Eight Claim for
Relief for conversion," "SCO's conduct also amounts to a breach of
fiduciary duty, conversion, unjust enrichment, and breach of
express contract, all of which are sufficient 'wrongful conduct' to
impose a constructive trust." (96, 97)
- Rosenfeld, Meyer & Susman v. Cohen, 191 Cal. App. 3d
1035, 1051-52 (1987) ("where a fiduciary has a legal duty to
allocate receipts between those in which its beneficiary has some
interest and those in which the beneficiary has none, and is fully
and singularly capable of making that allocation but fails to do
so, a court is justified in calling upon the fiduciary to bear the
burden of differentiation at trial")
- Kennard v. Glick, 183 Cal. App. 2d 246, 250-51 (1960)
("an agent who fails to keep an account raises thereby a suspicion
of infidelity or neglect, creates a presumption against himself,
and brings upon himself the burden of accounting to the utmost for
all that has come into his hands; and in such case every doubt will
be resolved against the agent, and in favor of the principal")
- Leigh v. Engle, 727 F.2d 113, 138-39 (7th Cir. 1984)
("the burden is on the defendants who are found to have breached
their fiduciary duties to show which profits are attributable to
their own investments apart from their control of the Reliable
Trust assets . . . . [W]hile the district court may be able to make
only a
|
UNJUST ENRICHMENT
Novell's Sixth Claim for Relief alleges that SCO was unjustly
enriched by failing to remit royalties purportedly owed to
Novell.
In order to prove its claim for unjust enrichment, it is
Novell's burden to prove, by the preponderance of the evidence, all
of the following elements:
- That SCO received a benefit; and
- That SCO retained the benefit at the expense of Novell.
A "benefit" means something of value. In this case, the parties
dispute whether the payments SCO received from the SCOsource
Agreements were retained at the expense of Novell.
You must therefore determine what payments Novell was entitled
to possess under the APA, and what payments SCO was entitled to
retain for itself. Section 4.16 of the APA provided that Novell was
entitled to possess only royalties from SVRX Licenses that licensed
the SVRX code. You must determine whether Novell has proven that
the payments from the SCOsource Agreements constituted payments
that Novell was entitled to possess under this provision of the
APA.
If you determine that Novell has not proven by the preponderance
of the evidence that the payments from the SCOsource Agreements
were payments that Novell was entitled to possess under the APA,
then you must find that SCO is not liable for unjust enrichment. If
you determine that Novell has proven by the preponderance of the
evidence that the payments from the SCOsource Agreements were
payments that Novell was entitled to possess under the APA, then
you may find that SCO is liable for unjust enrichment.
Authority:
- Lectrodryer v. SeoulBank, 77 Cal. App. 4th 723, 726
(2000)
- First Nationwide Savings v. Perry, 11 Cal. App. 4th
1657, 1662 (1992)
|
5/13 (22)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
rough approximation, it should resolve doubts in favor of the
plaintiffs")
|
|
INTEREST ON MONETARY RECOVERY
If you award to Novell a monetary recovery based upon SCO's
unjust enrichment from its breach of a fiduciary duty, you may
award simple interest on Novell's recovery at the rate of 7% from
the date the money should have been paid.
If you award to Novell a monetary recovery based upon SCO's
conversion of Novell's royalties, you must award simple interest on
Novell's recovery at the rate of 7% from the date the money should
have been paid.
[Novell has moved to voluntarily dismiss its breach of
contract claim. In the event the Court does not grant that motion,
Novell submits this proposed addition to this instruction.]
If you award to Novell a monetary recovery based upon SCO's
unjust enrichment from its breach of contract, you must award
simple interest on Novell's recovery at the rate of 10% from the
date the money should have been paid.
Authority:
- Cal. Const. art. XV, § 1
- Cal. Civ. Code §§ 3288, 3336
- Stan Lee Trading, Inc. v. Holtz, 649 F. Supp. 577,
582-83 (C.D. Cal. 1986)
- Michelson v. Hamada, 29 Cal. App. 4th 1566, 1585-89
(1994)
- Beverly Fin. Co. v. Am. Casualty Co. of Reading, Pa.,
273 Cal. App. 2d 259, 264-65 (1969).
|
|
6/13 (23)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
DECLARATION THAT SCO LACKED AUTHORITY TO ENTER INTO SVRX
AGREEMENTS
Novell seeks a determination that SCO did not have the authority
under the APA to enter into the Sun, Microsoft, and other
"SCOsource" agreements.
The APA states that SCO shall not, and shall not have the
authority to, amend, modify or waive any right under or assign any
SVRX License without the prior written consent of Novell. It also
states that, notwithstanding this prohibition, SCO shall have the
right to enter into amendments of the SVRX Licenses "(i) as may be
incidentally involved through its rights to sell and license
UnixWare software." It goes on to state that SCO shall not, and
shall have no right to, enter into new SVRX Licenses except in the
situation specified in (i) of the preceding sentence or as
otherwise approved in writing in advance by Seller on a case by
case basis.
Under these provisions, the issue for you to decide is whether
the Sun agreement, the Microsoft agreement, and SCO's other
"SCOsource" agreements were "incidental" to the licensing of
UnixWare.
"Incidental" means being likely to ensue as a minor consequence
or occurring without intention or calculation.
You are instructed that SCO had a fiduciary duty as Novell's
agent with regard to SVRX licenses. SCO thus had fiduciary duties
to Novell to put Novell's interest above its own and ensure that
any new SVRX license or any amendment, modification, or waiver of
an SVRX license would not harm Novell's interest.
If, as SCO contends, the Sun agreement, the Microsoft agreement,
and SCO's other "SCOsource" agreements were merely incidental to
UnixWare licensing, then SCO had the authority to enter into these
agreements as long as doing so would not conflict with its duties
as a fiduciary of Novell to protect Novell's interest in the SVRX
licenses. If, on the other hand, the SVRX licensing was more than
incidental, then SCO lacked the authority to enter into these
agreements. Because SCO owed Novell fiduciary duties as to SVRX
Licenses, any doubt should be resolved against SCO.
Authority:
- "it is undisputed that the 2003 Sun and Microsoft Agreements
have some SVRX component," "even incidental licenses of SVRX are
considered an SVRX License" (Order at 93, 95); "SCO was required to
account for and pass through to Novell the appropriate SVRX
Royalties according to the SVRX portions of the 2003 Sun and
Microsoft Agreements" (96); "To the extent that SCO has failed to
pass through the appropriate amount of SVRX Royalties under the
2003 Sun and Microsoft Agreements to which Novell was entitled,
Novell is also entitled to summary judgment on its Eight Claim for
Relief for conversion," "SCO's conduct also amounts to a breach of
fiduciary duty, conversion, unjust enrichment, and breach of
express contract, all of which are sufficient 'wrongful conduct' to
impose a constructive trust." (96, 97)
- 28 U.S.C. § 2201
- Merriam-Webster's Collegiate Dictionary 587 (10th ed. 1998)
(defining "incidental" as above)
|
DECLARATION THAT SCO LACKED AUTHORITY TO ENTER INTO SUN,
MICROSOFT, AND SCOSOURCE AGREEMENTS
Novell's Fourth Claim for Relief seeks a declaratory judgment
that SCO had no authority to enter into the Microsoft, Sun, and
SCOsource Agreements because it was obligated to seek Novell's
approval prior to entering into those Agreements. A declaratory
judgment is a declaration that a party was or is required to do
something under the terms of a contract.
Section 4.16 of the APA provides that SCO shall not enter into
an SVRX License without the prior written consent of Novell.
Amendment No. 1 to the APA provides that SCO shall have the
right to enter into amendments of the SVRX Licenses without
Novell's consent as may be incidentally involved through its rights
to sell and license UnixWare software.
In order to prove its claim for declaratory judgment, it is
Novell's burden to prove, by the preponderance of the evidence,
that SCO did not have the authority to enter into the Sun and
Microsoft and/or the SCOsource Agreements without Novell's prior
approval. Novell must therefore prove both of the following:
(1) that the Sun and Microsoft Agreements and/or the SCOsource
Agreement were SVRX Licenses that required Novell's prior approval;
and
(2) that the Sun and Microsoft Agreements and/or the SCOsource
Agreements were not UnixWare Licenses that contained an incidental
SVRX license, which does not require Novell's approval.
In this case, the parties dispute whether the Sun and Microsoft
Agreements and/or the SCOsource Agreements were SVRX Licenses or
whether they were UnixWare licenses that contained an incidental
SVRX license.
If you determine that Novell has not proven by a preponderance of
the evidence both that the Sun and Microsoft Agreements and/or the
SCOsource Agreements (1) were SVRX Licenses that required Novell's
approval and (2) were not UnixWare Licenses that contained an
incidental SVRX license that does not require Novell's approval,
then you must find that Novell is not entitled to its requested
declaratory judgment. If you determine that Novell has proven by
the preponderance of the evidence both that the Sun and Microsoft
Agreements and/or the SCOsource Agreements (1) were SVRX Licenses
that required Novell's approval and (2) were not UnixWare licenses
that contained an incidental SVRX license that does not require
Novell's approval, then you should find that Novell is entitled to
its requested declaratory judgment.
Authority:
- 28 U.S.C. § 2201
- Acoustics, Inc. v. Trepte Construction Co., 14 Cal. App.
3d 887, 913 (1971) ("A complaint for breach of contract must
include the following: (1) the existence of a contract, (2)
plaintiff's performance or excuse for nonperformance, (3)
defendant's breach, and (4) damages to plaintiff therefrom.")
|
7/13 (24)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
DECLARATION THAT THE SUN AGREEMENT WAS A BREACH OF § B
OF AMENDMENT 2
Novell seeks a determination that SCO breached the APA, as
amended by Section B of Amendment 2, when it entered into the Sun
Agreement.
Section B of Amendment 2 of the APA was signed approximately
thirteen months after the APA and amended section 4.16 of the
agreement. Amendment 2 provides that if either party becomes aware
of "any potential transaction with an SVRX licensee which concerns
a buy-out of any such licensee's royalty obligation" that party is
to inform the other. Amendment 2 further requires SCO to involve
Novell in any negotiations with such licensees and requires mutual
consent by SCO and Novell to any proposals made to such
licensees.
Under these provisions, the issue for you to decide is whether
the 2003 agreement between Sun and SCO amending and restating the
1994 license between Novell and Sun is a transaction "which
concerns a buyout" of Sun's royalty obligation.
You are instructed that SCO had a fiduciary duty as Novell's
agent with regard to SVRX licenses. SCO thus had fiduciary duties
to Novell to put Novell's interest above its own and ensure that
any amendment of an SVRX license would not harm Novell's interest.
It is also undisputed that SCO did not inform Novell of the
negotiations that lead to the 2003 Sun agreement and did not seek
or obtain Novell's consent to enter into that agreement.
If you find that the 2003 Sun agreement "concerns a buyout" of
Sun's royalty obligation, then SCO was required to involve Novell
in the negotiations for that agreement and obtain Novell's consent.
If, on the other hand, you find that the 2003 Sun agreement did not
"concern a buyout," SCO was entitled to go forward so long as it
met the other conditions of section 4.16 of the APA as outlined in
the previous instruction. Because SCO was Novell's fiduciary with
respect to the SVRX licenses, you should resolve doubts in favor of
Novell.
Authority:
- "it is undisputed that the 2003 Sun and Microsoft Agreements
have some SVRX component," "even incidental licenses of SVRX are
considered an SVRX License" (Order at 93, 95); "SCO was required to
account for and pass through to Novell the appropriate SVRX
Royalties according to the SVRX portions of the 2003 Sun and
Microsoft Agreements" (96); "To the extent that SCO has failed to
pass through the appropriate amount of SVRX Royalties under the
2003 Sun and Microsoft Agreements to which Novell was entitled,
Novell is also entitled to summary judgment on its Eight Claim for
Relief for conversion," "SCO's conduct also amounts to a breach of
fiduciary duty, conversion, unjust enrichment, and breach of
express contract, all of which are sufficient 'wrongful conduct' to
impose a constructive trust." (96, 97)
- 28 U.S.C. § 2201
|
DECLARATION THAT SCO BREACHED THE APA BY ENTERING INTO THE
2003 SUN AGREEMENT
Novell's Fourth Claim for Relief also seeks a declaratory
judgment that SCO breached the APA by entering into the 2003 Sun
Agreement without Novell's prior approval.
Section B of Amendment No. 2 to the APA provides that the
parties must follow certain procedures for their joint management
of any potential transaction with an SVRX licensee which concerns a
buy-out of any such licensee's royalty obligations.
Amendment No. 1 to the APA provides that SCO shall have the
right to enter into amendments of the SVRX Licenses without
Novell's consent as may be incidentally involved through its rights
to sell and license UnixWare software.
In order to prove its claim for declaratory judgment, it is
Novell's burden to prove, by the preponderance of the evidence,
that SCO did not have the authority to enter into the Sun Agreement
without Novell's prior approval. Novell must therefore prove that
the Sun Agreement was itself a buy-out of Sun's SVRX royalty
obligations, and not a UnixWare License that relates to a prior
1994 agreement in which Sun's buy-out was granted.
In this case, the parties dispute whether the Sun Agreement
constituted a buy-out of Sun's SVRX royalty obligations or whether
it was UnixWare Agreement that related to a prior 1994 agreement in
which Sun's buy-out was granted.
If you determine that Novell has not proven by the preponderance
of the evidence both that the Sun Agreement was itself a buy-out of
Sun's SVRX royalty obligations and not an agreement that related to
a prior agreement in which such a buy-out was granted, then you
must find that Novell is not entitled to its requested declaratory
judgment. If you determine that Novell has proven by the
preponderance of the evidence that the Sun Agreement was itself a
buy-out of Sun's royalty obligations and not an agreement that
related to a prior agreement in which such a buy-out was granted,
then you should find that Novell is entitled to its requested
declaratory judgment.
Authority:
- 28 U.S.C. § 2201
- Acoustics, Inc. v. Trepte Construction Co., 14 Cal. App.
3d 887, 913 (1971) ("A complaint for breach of contract must
include the following: (1) the existence of a contract, (2)
plaintiff's performance or excuse for nonperformance, (3)
defendant's breach, and (4) damages to plaintiff therefrom.")
|
8/13 (25)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
Novell contends that this SCO instruction is duplicative of the
unjust enrichment instruction and that no separate instruction is
necessary.
|
APPORTIONMENT
Novell's Third, Sixth, Seventh, and Eighth claims seek payments
that SCO received under the 2003 Sun and Microsoft Agreements. It
is your responsibility to determine what portion, if any, of the
payments SCO received under the 2003 Sun and Microsoft Agreements
Novell is entitled to.
In deciding what portion, if any, of the Sun and Microsoft
Agreements Novell is entitled to, you can consider only payments
that Novell has proven with reasonable certainty SCO received for
an SVRX License. You must not include in your calculation any other
payments SCO received under the Sun and Microsoft Agreements, for
any other purpose, including:
(a) Payments, if any, made for the licensing of SCO's UnixWare
product;
(b) Payments, if any, made for the licensing of an additional
copy of the source code to the SVRX products that Sun bought out in
1994; or
(c) Payments, if any, made for any options and releases
unrelated to the licensing of SVRX technology.
If you decide that no portion of the payments SCO received under
the Sun and Microsoft Agreements was received for an SVRX License,
then you must decide that Novell is not entitled to any payments.
If you decide that only a portion of the payments SCO received from
the Sun and Microsoft Agreements constituted a payment under an
SVRX License, then you must determine what portion of those
payments constituted a payment under an SVRX License that Novell is
entitled to receive.
Authority:
- Bardis v. Oates, 14 Cal. Rptr. 3d 89, 100-01 (Cal. App.
3d 2004) (breach of fiduciary duty apportionment submitted to
jury)
- Moreno v. Greenwood Auto Center, 110 Cal. Rptr. 2d, 177,
183-84 (Cal. App. 2d 2001) (conversion apportionment submitted to
jury)
- Fields v. Maestro's Ristorante of San Ramon, Inc., No.
C97-05176, 2005 WL 1206852 at *5 (Cal. App. 3d May 20, 2005)
(unjust enrichment apportionment submitted to jury)
|
9/13 (26)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
Novell contends that this SCO instruction is duplicative of the
unjust enrichment instruction and that no separate instruction is
necessary.
|
DAMAGES
Novell has alleged that, as a result of SCO's conduct, it has
incurred damages. Under the law, it is Novell's duty to establish,
by the preponderance of the evidence, all of the facts necessary to
establish that it incurred damages as a result of SCO's
conduct.
In considering whether Novell has proven that it has suffered
damages, you must determine whether Novell has met its duty to
establish, by the preponderance of the evidence, that it is
entitled to any of the payments SCO received under the 2003 Sun and
Microsoft Agreements and/or the SCOsource Agreements.
You must therefore determine whether Novell has proven what
portion of the money SCO received from the Sun and Microsoft
Agreements and/or the SCOsource Agreements was paid for as an SVRX
License as to which Novell retained royalty rights under the APA.
You must not consider any payments made to SCO under the Agreements
for any other purpose, including:
(a) Payments, if any, made for the licensing of SCO's UnixWare
product;
(b) Payments, if any, made for the licensing of an additional
copy of the source code to the SVRX products that Sun bought out in
1994; or
(c) Payments, if any, made for any options and releases
unrelated to the licensing of SVRX technology.
If you determine that Novell has not established by the
preponderance of the evidence that a portion of the payments SCO
received from the Sun and Microsoft Agreements and/or the SCOsource
Agreements was paid for the licensing of the SVRX code, then Novell
cannot recover damages. If you determine that Novell has proven by
the preponderance of the evidence that a portion of the payments
SCO received from the 2003 Sun and Microsoft Agreements and/or the
SCOsource Agreements was paid for the licensing of the SVRX code,
you should award Novell damages in that amount.
Authority:
- BAJI 2.6 (Burden of Proof and Preponderance of Evidence)
- Rose v. Chrysler Motors Corp., 212 Cal. App. 2d 755, 763
(1963)
- Zaidman v. Vencor Intern., Inc., 2001 WL 1243936, *3
(Cal. App. 4 Dist. 2001) (holding that "irrelevant evidence will
not support a judgment" and damages evidence was irrelevant insofar
as it concerned damages not covered by the agreement)
|
10/13 (27)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
Novell contends that this SCO instruction is duplicative of the
unjust enrichment instruction and declaratory judgment instructions
and that no separate instruction is necessary.
|
INCIDENTAL SVRX LICENSE
The APA sets forth different rules for payments that SCO receives
from SVRX Licenses that it enters into (as explained in Section
4.16) and for payments that SCO receives from UnixWare Licenses
that it enters into (as explained in Schedule 1.2(b)). The parties
dispute which of these royalty provisions applies to the 2003 Sun
and Microsoft Agreements and/or the SCOsource Agreements which you
have received in evidence. The parties agree that which provision
applies depends on whether the portion of SVRX code licensed in
each agreement was "incidental" to the UnixWare License.
With regard to each agreement, then, you must decide whether
that agreement was an SVRX License, or a UnixWare License that
licensed SVRX code incidentally.
If you determine that Novell has not proven by the preponderance
of the evidence that the SVRX portion, if any, of the Sun and
Microsoft Agreements and/or the SCOsource Agreements was not
incidental (or was more than incidental) to the UnixWare license
being provided, you must then find that SCO was not obligated to
remit to Novell any royalties from the 2003 Sun and Microsoft
Agreements and/or the SCOsource Agreements. If you determine that
Novell has proven that the SVRX portion, if any, of the Sun and
Microsoft Agreements and/or the SCOsource Agreements was not
incidental to the UnixWare license being provided, you must then
determine the amount of royalties SCO was obligated to remit to
Novell from the Sun and Microsoft Agreements or the SCOsource
Agreements.
Authority:
- BAJI 2.6 (Burden of Proof and Preponderance of Evidence
- Rose v. Chrysler Motors Corp., 212 Cal. App. 2d 755, 763
(1963)
- Zaidman v. Vencor Intern., Inc., 2001 WL 1243936, *3
(Cal. App. 4 Dist. 2001) (holding that "irrelevant evidence will
not support a judgment" and damages evidence was irrelevant insofar
as it concerned damages not covered by the agreement)
|
11/13 (28)
SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
Novell contends that this SCO instruction is duplicative of the
unjust enrichment instruction and that no separate instruction is
necessary.
|
AMOUNT OF DAMAGES
Novell also bears the burden of proving by the preponderance of
the evidence the amount of damages it suffered with reasonable
certainty.
In considering the amount of damages, you must determine whether
the payments SCO received from the 2003 Sun and Microsoft
Agreements and/or the SCOsource Agreements constitute payments that
Novell was entitled to under the APA. If you determine that a
portion of the payments SCO received from the Sun and Microsoft
Agreements and/or the SCOsource Agreements was for the licensing of
the SVRX code as enumerated in Section 4.16 of the APA, you must
determine what portion of the payments from the Sun and Microsoft
Agreements and/or the SCOsource Agreements Novell has proven was
paid for licensing the SVRX code.
In your calculation, you can only include payments that Novell
has proven with reasonable certainty were paid for the licensing of
the SVRX code. You must not include in your calculation any other
payments SCO received under the Sun and Microsoft Agreements, for
any other purpose, including:
(d) Payments, if any, made for the licensing of SCO's UnixWare
product;
(e) Payments, if any, made for the licensing of an additional
copy of the source code to the SVRX products that Sun bought out in
1994; or
(f) Payments, if any, made for any options and releases
unrelated to the licensing of SVRX technology.
Authority:
- First Commercial Mortgage Co. v. Reece, 89 Cal. App. 4th
731, 745 (2001) (holding that plaintiff bears the burden of proving
the amount of damages in a breach of contract action)
- Carpenter Foundation v. Oakes, 26 Cal. App. 3d 784,
799-800 (1972) (holding that in an action sounding in tort, the
plaintiff has the burden of proving he or she has suffered damages
and must also prove the amount of damages with reasonable
certainty)
- Sequoia Vacuum Systems v. Stransky, 229 Cal. App. 2d
281, 288 (1964) ("The determination of the particular factual
circumstances and the application of the ethical standards of
fairness and good faith required of a fiduciary in a given
situation are for the trier of facts.")
- Zaidman v. Vencor Intern., Inc., 2001 WL 1243936, *3
(Cal. App. 4 Dist. 2001) (holding that "irrelevant evidence will
not support a judgment" and damages evidence was irrelevant insofar
as it concerned damages not covered by the agreement)
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SCO v. Novell, Case No. 2:04CV00139 |
Exhibit 2: Disputed
Instructions |
Novell |
SCO |
Novell contends this stock instruction is not necessary in light
of the explicit, substantive instructions given above.
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Damages must be reasonable. You are not permitted to award
speculative damages, which means compensation for a detriment
which, although possible, is remote, or conjectural. The damages
that you award must be fair and reasonable, neither inadequate nor
excessive. You should not award compensatory damages for
speculative injuries, but only for those injuries that Novell has
actually suffered or which it is reasonably likely to suffer in the
near future.
In awarding compensatory damages, if you decide to award them,
you must be guided by dispassionate common sense. Computing damages
may be difficult, but you must not let that difficulty lead you to
engage in arbitrary guesswork. On the other hand, the law does not
require a Plaintiff to prove the amount of his losses with
mathematical precision, but only with as much definiteness and
accuracy as the circumstances permit.
Authority:
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