SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-6776-99T3
SATELLITE ENTERTAINMENT
CENTER, INC., t/a WYNNY'S
and MORRIS WINOGRAD,
Plaintiffs-Appellants,
v.
JOHN KEATON,
Defendant-Respondent/
Cross-Appellant.
______________________________________________________
Argued December 4, 2001 - Decided February 4, 2002
Before Judges Pressler, Wefing and Lesemann.
On appeal from Superior Court of New Jersey,
Law Division, Passaic County, PAS-L-7745-97.
David Treacy argued the cause for appellants
(Wilentz, Goldman & Spitzer, attorneys;
Christine D. Petruzzell, of counsel; Ms.
Petruzzell and Donna A. McBarron, on the brief).
Gerald D. Miller argued the cause for respondent/
cross-appellant (Miller, Meyerson, Schwartz &
Corbo, attorneys; Mr. Miller, on the brief).
The opinion of the court was delivered by
LESEMANN, J.A.D.
In this appeal from a judgment based on a jury verdict,
plaintiff argues that there are legal issues which warrant a
reversal of that judgment. However, the fact is that the trial
turned almost entirely on credibility issues, there were ample
bases for the jury to reach the conclusions it did, and there is no
basis for reversal. Accordingly, the judgment is affirmed in all
respects, including the provisions thereof relating to plaintiff's
complaint, those relating to defendant's counterclaim, and the
trial court's denial of pre-judgment interest.
The essential characters in this drama are Morris Winograd,
principal of the plaintiff corporation, Satellite Entertainment,
Inc.,See footnote 11 who is an accountant and insurance broker, and also operates
a bar and restaurant in Jersey City known as Wynny's, and defendant
John Keaton, who worked most of his life as a mechanic but began
operating a barbecue restaurant in Jersey City in 1993. Winograd
and Keaton had known each other for many years and had a business
and semi-friendly relationship. Keaton said that from the time
when he was a young man, he had obtained his insurance from
Winograd and over the years, the two had numerous contacts. Keaton
said he thought the two had a good relationship.
As Keaton described his entry into the barbecue business, in
August 1993, he realized he "was getting up in age and I knew they
did not hire mechanics" of that age. He also knew how to barbecue
ribs and, with the encouragement of his daughter, he opened
discussions with George Williams, who owned premises at 547 Martin
Luther King Drive in Jersey City. Those discussions evolved into
a six year lease under which Keaton occupied a portion of the
premises for his barbecue business. The premises also included a
bar and dance hall and a second-floor apartment in which Williams
resided. The lease ran from 1993 to 1999, with a monthly rental of
$700. Keaton then opened his restaurant whose "specialty was in
barbecue ribs," and he continued to operate that business from 1993
until the end of 1995.
In March 1995, Winograd loaned Keaton a sum of money, and
Keaton signed a note acknowledging that debt. The amount of the
loan was disputed. The note is in the face amount of $6,000, and
it says nothing about interest rate. Winograd said that Keaton had
asked him for the loan so he could purchase ribs in large
quantities and in that way save money. Winograd said further that
he delivered the money, $6,000, to Keaton, in cash.
Keaton testified that he signed the note before any of the
information (including the face amount) had been inserted. He said
further that the amount paid to him was just $5,000, and he further
testified that in September 1995, he repaid that entire $5,000 to
Winograd, in cash. Winograd, on the other hand, insisted that he
had advanced $6,000 to Keaton and claimed that in September 1995,
Keaton repaid him just $1,500. Thus, Winograd maintained that
$4,500 remained owing on the note, while Keaton maintained that the
note had been repaid in full.
That promissory note _ which is not reproduced in either
party's appendix _ formed the subject matter of Winograd's
complaint against Keaton. On that complaint, the jury returned a
verdict of $1,000 in favor of Winograd, which would seem to
indicate it had accepted Winograd's testimony that the loan had
been for $6,000, but it had also accepted Keaton's testimony that
he had repaid $5,000 to Winograd. That last conclusion seems
particularly likely since, at trial, Keaton presented two
apparently independent witnesses to corroborate his repayment of
the note, one of whom was a teacher in a Jersey City high school
who said she personally counted out the $5,000 in cash presented by
Keaton and turned it over to Winograd.
While Keaton was operating his barbecue restaurant, the owner
of the real property, George Williams, told Keaton that he was
having financial trouble. He asked if Keaton was interested in
buying the property and when Keaton replied that he was not in a
position to do so, Williams suggested that Keaton make an effort to
find some other interested purchaser. Keaton thought of Winograd
_ indeed, he testified that Winograd was the only person he knew
who might be in a position to buy the property _ and he mentioned
the possibility to Winograd. Winograd expressed interest.
Although the chronology becomes somewhat confusing, what is clear
is that Williams died at some point after his discussion with
Keaton about purchasing the property, and at some time thereafter,
Keaton began making his rental payments to an entity known as
Mercury Capital, which may have been Williams' mortgagee.
Eventually, however, Winograd purchased the property and determined
to renovate the entire premises, including that portion occupied by
Keaton's barbecue restaurant as well as the adjacent restaurant and
bar. His plan was to open and operate a new, more elaborate
restaurant and bar to be known as Wynny's.
According to Keaton, in or about September 1995, Winograd
raised the question of buying out Keaton's business, and asked him
for a price. Keaton said he answered by naming a price of
$175,000. He said Winograd responded positively to that price and
told Keaton that he would pay it. According to Keaton, Winograd
also said he wanted Keaton out of the property by the end of 1995,
and he wanted Keaton to help him establish and run his new
enterprise. Keaton said he agreed to do so. Keaton did in fact
vacate the premises by December 1995, and, beginning in or around
January 1996, Winograd began renovations and also began paying
Keaton a weekly salary for his services respecting Winograd's new
bar and restaurant.
Keaton presented a number of witnesses to corroborate what he
described as Winograd's promise to pay him $175,000 for his
business. One was Rolanda Taylor, a bartender employed by
Winograd, who testified that on two occasions, she heard Winograd
agree to pay Keaton that amount. The first time, she said, was in
May 1996, when Keaton asked Winograd, "is he still going to pay him
the hundred and seventy-five thousand for his business"? She said
Winograd replied, "Yes, you're going _ _ I already told you that I
was going to pay you. I already told you seven times I was going
to pay you." The second occasion, she said, was in April 1997, at
a final meeting, when Winograd terminated his relationship with
Keaton, Taylor and some others who had been operating Winograd's
bar and restaurant. She said at that meeting, Keaton had reminded
Winograd of his obligation to pay him $175,000, and, she said,
Winograd replied, "I heard you, I told you I was going to pay you,
and he walked out the door."
A second witness presented by Keaton was Dolores Boyce, the
high school teacher referred to above, who said that when she
counted out the $5,000 which Keaton repaid to Winograd under the
original promissory note, she also heard Keaton ask Winograd to
bring him his $175,000 note, to which Winograd replied, "I will."
Finally, in addition to supporting testimony from his
daughter, Keaton also presented the testimony of Maribelle Bonilla,
who had worked as a bartender during the early days when Wynny's
was beginning its operations. She too described the final meeting
in April 1997, at which Winograd terminated a number of employees,
including Ms. Bonilla. She said that, at the meeting, "John Keaton
approached him [Winograd] and asked him about his business. He
[Keaton] said he [Winograd] owed him a hundred and seventy-five
thousand for his business. Winograd said that he heard him. That
he was going to pay him. He said, I heard you already. As he was
walking out the door, he said he was going to pay him his money."
Winograd denied ever agreeing to pay Keaton anything for his
barbecue business. At trial, his counsel contended that the assets
of Keaton's business had little if any value, that its earnings
were negligible, and whatever value it may have had did not
approach $175,000. He claimed further that Keaton had willingly
terminated operation of his business so that he could accept
employment as manager of Winograd's new establishment, where he
would be paid $800 per week _ more than he ever could have earned
from his barbecue restaurant.
As noted, however, the jury accepted Keaton's version of the
agreement between him and Winograd, and awarded Keaton $175,000 on
his counterclaim. Since, as noted above, it awarded $1,000 to
Winograd on his complaint, the result was a net award of $174,000
in favor of Keaton. The court then entered a judgment to that
effect which, initially, included an award of $22,263 in pre-
judgment interest. Plaintiff subsequently moved to set aside the
judgment and for the award of either a judgment notwithstanding the
verdict or a new trial. The court denied the motion, but did rule
that pre-judgment interest would not be awarded. It then entered
an order to that effect, denying the request to set aside the
verdict but also determining that Keaton would not receive pre-
judgment interest.
On this appeal, Winograd claims that the verdict in favor of
Keaton was against the weight of the evidence and should be set
aside; that the court erred in improperly excluding evidence he
offered in defense of the counterclaim; and that the alleged
agreement calling for Winograd to pay $175,000 to Keaton should not
be enforced because it did not include the essential terms of an
enforceable contract. We find no merit in any of the arguments.
First, a jury verdict should be set aside only when it
"clearly and convincingly appears that there was a miscarriage of
justice under the law." R. 4:49-1(a). See Goss v. American
Cyanamid, Co.,
278 N.J. Super. 227, 239 (App. Div. 1994). "The
standard for our setting aside a verdict already sustained by the
trial judge is high." Horn v. Village Supermarkets, Inc.,
260 N.J.
Super. 165, 178 (App. Div. 1992), certif. denied,
133 N.J. 435
(1993). Only when "'it clearly and convincingly appears that thee
was a manifest denial of justice under the law'" should such a
verdict be disturbed. Dolson v. Anastasia
55 N.J. 2, 6-8 (1969).
Winograd fell far short of meeting that standard here.
There was ample basis on which the jury could decide to accept
Keaton's version of the agreement between him and Winograd. Not
only was Keaton himself unequivocal in describing that agreement,
but Keaton presented three independent witnesses (plus his
daughter) who corroborated Winograd's repeated promise to pay
Keaton $175,000 for his business. We see no reason to assume that
all those witnesses were lying.
Nor are we persuaded by Winograd's argument that such an
agreement was inconceivable because Keaton's business did not have
a value close to $175,000. Keaton argues, persuasively, that
Winograd was not particularly interested in buying the tangible
assets or good will of Keaton's business. What Winograd wanted,
and what Winograd was willing to pay for, Keaton argues, was
Keaton's occupancy and right to continue to occupy a portion of the
premises in which Winograd wanted to develop and operate his new
bar and restaurant. It was that space which Winograd wanted,
Keaton argues, and for which Winograd was willing to pay $175,000.
And, Keaton further argues, at trial Winograd testified that after
he completed his purchase from Keaton, he expended between $700,000
and $750,000 to improve the property for his proposed new
operation. Viewed in the context of that expenditure, the $175,000
which Winograd agreed to pay in order to terminate Keaton's
interest in the property, was not excessive and was indeed
relatively modest.
We also reject the claim that Winograd's contractual
undertaking to pay $175,000 to Keaton should be invalidated for
lack of specificity concerning the terms of the contract. The
basic terms of this very simple agreement were clear.
First, the price was firm: it was $175,000. So too was the
description of what Winograd was purchasing. He was buying all of
Keaton's business, including whatever tangible assets, inventory or
"good will" might be involved. However, as discussed above and as
Keaton's attorney emphasizes, none of those assets were
particularly significant to Winograd. Thus, it is not surprising
that the parties did not, for example, itemize with specificity the
inventory or the furniture of Keaton's business which was to be
turned over to Winograd. To Winograd, those details were
unimportant. The critical point, and the real reason for
Winograd's payment of $175,000, was Keaton's agreement to vacate
the property by the end of 1995, which he did.
Winograd also argues that the contract was too vague for
enforcement because there was no description of the interest rate
or the due date of the note to be given by Winograd in payment for
the business. Keaton concedes that the note contained no provision
for interest, and thus he had no right to interest. He claims
further that without a specified due date, the note should be
regarded as due on demand.
It is a settled principle that when the essential parts of a
contract are spelled out, a court will not refuse to enforce that
contract because some of its less critical terms have not been
articulated. In such a case, the court will imply a reasonable
missing term or, if necessary, will receive evidence to provide a
basis for such an implication. See Paley v. Barton Savings & Loan
Assoc.,
82 N.J. Super. 75, 83 (App. Div.), certif. denied,
41 N.J. 602 (1964); Comerata v. Chaumont, Inc.,
52 N.J. Super. 299 (App.
Div. 1958). And that is particularly true when there has been part
performance of the contract, or _ as here _ where one of the
parties (Keaton) has fully performed his part of the bargain. See
Comerata at 305-06.
In support of his claim of invalidity because of vagueness,
Winograd relies on a number of cases in which critical, essential
parts of a contract were missing and the contract was so vague or
indefinite that it could not realistically be enforced. See
Borough of West Caldwell v. Borough of Caldwell,
26 N.J. 9, 24-25
(1958) (the terms were so vague that the intent of the parties
could not be determined); Weichert Realtors v. Ryan,
128 N.J. 427,
435 (1992) (the contract lacked essential terms so that the
obligation of each party could not realistically be ascertained).
Winograd relies primarily, however, on Malaker Corp. v. First
Jersey Nat'l Bank,
163 N.J. Super. 463 (App. Div. 1978), certif.
denied,
79 N.J. 488 (1979), where an alleged contract was found to
be lacking essential terms necessary for enforcement. Although the
missing provisions there dealt with interest rates and terms of
repayment of loans, that case is markedly different from ours. It
involved an alleged agreement to extend a line of credit. Thus,
the nature of the line of credit and the terms thereof, including
interest rates, terms and time of repayment and such items as the
need for and nature of collateral, were essential provisions that
went to the heart of the alleged agreement. Here, on the other
hand, the heart of the contract is the dollar amount to be paid to
Keaton and Keaton's obligation to vacate the premises for
Winograd's use. The incidental terms of the note to be given in
payment were just that: incidental terms, which do not bar
enforcement of the essential agreement between the parties.
Finally, Winograd complains of the trial court's rejection of
proffered testimony designed to show that after Keaton closed his
business and began working for Winograd, he was functioning as
Winograd's manager rather than simply an employee working in the
establishment. At trial, Winograd urged admissibility of that
evidence for what he termed its impact on Keaton's "credibility,"
since Keaton had denied functioning as a manager.
We agree with Winograd that, under N.J.R.E. 607, the proposed
evidence was admissible and the court should have accepted it.
However, we see no prejudice _ and certainly no substantial
prejudice _ from the ruling. There was no dispute as to the salary
being paid by Winograd to Keaton, and we fail to see any major
significance in the title bestowed on Keaton. If Winograd's point
was that Keaton had simply ended his own business venture in order
to accept a more lucrative position with Winograd, then Winograd
had already made that point. Any question of Keaton's title would
not have advanced his argument any further. Indeed, it is
difficult to believe that any aspect of the argument based on
Keaton's employment was likely to have a persuasive effect. If the
job offered to Keaton was attractive, then it would have been so
whether or not Winograd had also offered to pay $175,000 for
Keaton's business. Keaton's acceptance of the position was not
inconsistent with his description of the alleged contract of sale
with Winograd.
We see no need for an extensive discussion of Keaton's cross-
appeal from the trial court's denial of pre-judgment interest. It
is clear that a trial court is vested with substantial discretion
to award or deny pre-judgment interest in contract cases. Bak-A-
Lum Corp. v. Alcoa Bldg. Prod.,
69 N.J. 123, 131 (1976). See also
Meshinsky v. Nichols Yacht Sales, Inc.,
110 N.J. 464, 478 (1988);
Musto v. Vidas,
333 N.J. Super. 52, 74 (App. Div. 2000); In re
Estate of Lash,
329 N.J. Super. 249, 261 (App. Div. 2000). While
it would have been preferable to have a statement of the court's
reasoning, and why it determined to withhold such an award, we see
no basis on which we could or should conclude that the action
constituted an abuse of discretion.
Affirmed.
Footnote: 1 1 The judgment on appeal was entered only against the individual plaintiff, Morris Winograd, but the notice of appeal was filed in the name of both the individual and the corporate plaintiffs. References hereinafter to "plaintiff" are deemed to refer to Morris Winograd although, where applicable, include the corporate plaintiff as well.