Fleet National Bank v. Anchor Media Television, Inc.

January 27, 1995  UNITED STATES COURT OF APPEALS
                            UNITED STATES COURT OF APPEALS
                    FOR THE FIRST CIRCUIT
                                FOR THE FIRST CIRCUIT

                                        

No. 94-1490

                     FLEET NATIONAL BANK,
                          Plaintiff,

                              v.

                ANCHOR MEDIA TELEVISION, INC.,
                 AND KOVR OF DELAWARE, INC.,
                   Defendants, Appellants.
                                        

                 NARRAGANSETT CAPITAL, INC.,
                     AND EDWIN PFEIFFER,
                    Defendants, Appellees.
                                        

                         ERRATA SHEET
                                     ERRATA SHEET

   The opinion of  this court  issued on January  26, 1995,  is
amended as follows:

   The second sentence of  the first full paragraph on  page 25
should  be deleted,  and  the following  two sentences  should be
inserted in its place:

   And  the  only  other  evidence  of   a  representation
   regarding commercialization levels  at KOVR  introduced
   by  Anchor  at  the  second  trial  was  the  so-called
   July/August  1988  day-part  summary, a  document  that
   summarized  commercialization  levels  and  commercial-
   generated income by day and time (e.g., 7/25, 8:00-9:00
   p.m.)  for July and August 1988.   The July/August 1988
   day-part summary allegedly misrepresented that KOVR was
   undercommercialized  in  July   and  August  1988   and
                                  
   understated  commercial-generated  income  during  this
   same period.


                UNITED STATES COURT OF APPEALS
                            UNITED STATES COURT OF APPEALS
                    FOR THE FIRST CIRCUIT
                                FOR THE FIRST CIRCUIT
                                         

No. 94-1490

                     FLEET NATIONAL BANK,

                         Plaintiff, 

                              v.

               ANCHOR MEDIA TELEVISION, INC., 
                 AND KOVR OF DELAWARE, INC.,

                   Defendants, Appellants.
                                        

                 NARRAGANSETT CAPITAL, INC., 
                     AND EDWIN PFEIFFER,

                    Defendants, Appellees.
                                         

         APPEAL FROM THE UNITED STATES DISTRICT COURT

               FOR THE DISTRICT OF RHODE ISLAND

     [Hon. Francis J. Boyle, Senior U.S. District Judge]
                                                                   

                                         

                            Before
                      Cyr, Circuit Judge,
                                                    
                Bownes, Senior Circuit Judge,
                                                        
                  and Stahl, Circuit Judge.
                                                      

                                         

Stephen M. Sacks, with whom Tim  Atkeson, Arnold & Porter, Anthony
                                                                              
F. Muri, and Goldenberg & Muri were on brief for appellants.
                                      
Charles I. Poret, with whom Richard  M. Sharfman, Mark J.  Kenney,
                                                                             
A.  Lauriston  Parks,  Sharfman,  Shanman,  Poret  &  Siviglia,  P.C.,
                                                                             
Severson & Werson, and  Hanson, Curran, Parks & Whitman, were on brief
                                                               
for   defendants-appellees  Narragansett   Capital,  Inc.   and  Edwin
Pfeiffer.

                                         
                       January 26, 1995


                                         


          BOWNES,  Senior  Circuit Judge.    In  this appeal,
                      BOWNES,  Senior  Circuit Judge.
                                                    

appellants  Anchor  Media  Television,  Inc.  ("Anchor"), and

KOVR-TV of Delaware, Inc. ("KOVR"), contend that the district

court committed several legal and discretionary errors in the

course of two trials of their  claims of fraud and breach  of

contract   against   appellees  Narragansett   Capital,  Inc.

("Narragansett"),  KOVR's former  owner, and  Edwin Pfeiffer,

KOVR's former general manager.  After carefully reviewing the

record and considering appellants' arguments, we affirm.  

                              I.
                                          I.
                                            

                          BACKGROUND
                                      BACKGROUND
                                                

          The   complicated   factual   predicate   of   this

litigation  has been  meticulously rehearsed  in a  published

opinion  by  the district  court.   See  Fleet Nat'l  Bank v.
                                                                      

Anchor Media Television, Inc., 831 F. Supp. 16, 21-31 (D.R.I.
                                         

1993).    It  will be  reiterated  here  only  to the  extent

necessary to resolve the issues before us.

          The case  arises  out  of  Narragansett's  sale  to

Anchor of KOVR, an  ABC-affiliate television station  located

in Sacramento,  California.   Anchor was awarded  the station

after submitting the  high bid  at a closed  auction held  in

late September  1988.  The sale price  eventually agreed upon

by the parties was $162 million.  The deal  was structured as

a  merger of an Anchor subsidiary into the corporate owner of

KOVR, and became final on January 25, 1989.  The terms of the

                             -2-
                                          2


merger  were  memorialized   in  a  merger  agreement   ("the

Agreement") dated October 12, 1988.  The case came before the

district court  as an interpleader action  filed by plaintiff

Fleet National Bank ("Fleet").  Fleet controlled a $5 million

escrow account established by the Agreement to address claims

that might arise from  KOVR's sale.  In its  complaint, Fleet

asked the  district court  to determine proper  allocation of

the  escrow funds.   Anchor  and Narragansett,  among others,

were named as defendants to the action.

          Subsequently,  Anchor  filed  cross-claims  against

Narragansett and Pfeiffer,  alleging breach of  the Agreement

and  common  law  fraud.1     Underlying  these  claims  were

allegations  that Narragansett had fraudulently increased its

cash  flow in  the  months preceding  the  auction by:    (1)

actually running  more commercials than was  customary in the

industry  while  representing  that  it  was   running  fewer

commercials  than  was customary  ("the overcommercialization

allegation"); (2) running local commercials at a time when it

was  contractually obliged  to  be running  an ABC  newsbrief

("the   ABC   newsbrief  allegation");   (3)  surreptitiously

shifting  to  subsequent  years  certain  operating  expenses

                    
                                

1.  Pfeiffer also  brought a  cross-claim against  Anchor for
breach of  his employment  contract.  The  subject matter  of
this claim is not before us.  

                             -3-
                                          3


incurred  as  a  result  of  a contract  with  Nielson  Media

Research2  ("the  Nielson  allegation");  and   (4)  charging

political  candidates   too  much  money   to  run  political

advertisements  ("the political advertising allegation").  We

discuss the particulars of these allegations infra.
                                                              

          Anchor claimed that these  practices had a damaging

effect  upon  its  bid,   which  was  largely  formulated  in

accordance  with  standard  industry  valuation  practices --

i.e.,   by  taking  the   projected  year-of-sale  cash  flow

(essentially, profit)  and multiplying  it by a  number ("the

multiplier")  which  appropriately   accounted  for   certain

characteristics inhering in the target market.  In projecting

year-of-sale cash flow, Anchor  used actual cash flow figures

from January 1,  1988 through August 31,  1988, and financial

information  which  enabled  it  to project  cash  flow  from

September 1,  1988 through the end  of the year.   All of the

information on which Anchor relied in formulating its bid was

generated prior to September 28,  1988, the day on which  the

bid was submitted.

          Put  in   concrete   terms,  Anchor   argued   that

Narragansett's  fraudulent inflation  of its  1988 cash  flow

(quantified  at trial  as being  at least  $1,943,000) caused

Anchor to bid at least $27 million more for  the station than

                    
                                

2.  Nielson Media Research is  a rating service that monitors
audience  viewership of  a television  station.   Fleet Nat'l
                                                                         
Bank, 831 F. Supp. at 28.
                

                             -4-
                                          4


it would have absent  the fraud.  Anchor reached  this number

by taking  the amount  of improperly-obtained 1988  cash flow

and multiplying it  by 13.6,  the multiplier it  had used  in

valuing the  Sacramento market.    This "effect  on the  bid"

constituted Anchor's theory of damages.3

                    
                                

3.  We  have  some doubts  about  the  viability of  Anchor's
"effect on the  bid" damages  theory in the  context of  this
case.  The parties agree that Rhode Island law, which governs
Anchor's fraud  claim, applies  the "benefit of  the bargain"
rule  in assessing damages  for fraudulent misrepresentations
inducing a party  to contract for  the purchase of  property.
See Barnes  v. Whipple, 68  A. 430  (R.I. 1907).   Under this
                                  
rule,  the defrauded  purchaser  is entitled  to recover  the
difference between the actual value of the purchased item and
its value  had the seller's  representations been true.   See
                                                                         
Learjet  Corp. v. Spenlinhauer,  901 F.2d 198,  203 (1st Cir.
                                          
1990)  (applying  Kansas  law);  see  also  J.  F.  Rydstrom,
                                                      
Annotation, "Out of Pocket" or "Benefit of Bargain" as Proper
                                                                         
Rule  of  Damages  for  Fraudulent  Representations  Inducing
                                                                         
Contract  for the Transfer of Property, 13 A.L.R. 3d 875, 885
                                                  
(1967).  This value  differential is measured at the  time of
the sale.  Learjet Corp., 901 F.2d at 203.
                                    
    When (as is usually the case) the negotiation of the sale
price immediately precedes the  consummation of the sale, the
effect of  the  seller's fraud  on  the purchase  price  will
almost invariably  quantify the difference between the actual
value  of   the  purchased  item   and  its  value   had  the
representations been  true.  Here, however,  the consummation
of  the sale (i.e., the merger) took place nearly four months
after the negotiation of the sale price, at a time when fluid
                 
market conditions  (there was much testimony  to this effect)
might have led a buyer to utilize a different multiplier than
                                                         
the  one Anchor used in  formulating its bid.   Moreover, the
merger took place in  a calendar year different from  the one
                                                           
in which the  sale price  was negotiated.   A buyer  applying
Anchor's  valuation theory  at the  time of  merger therefore
                                                               
would presumably have been looking  at a different period  of
time in projecting  cash flow  than the one  at which  Anchor
looked.  Thus, it strikes us as somewhat speculative to infer
that the effect Narragansett's fraud had on Anchor's 1988 bid
accurately quantifies the difference between the actual value
of KOVR on January 25, 1989  (the date of the merger) and its
putative    value   on    that   date    had   Narragansett's
representations been true.

                             -5-
                                          5


A.  The First Trial
            A.  The First Trial
                               

          A jury trial commenced on April 2, 1991, and lasted

fourteen  trial  days.   In  the  course  of  the trial,  the

district court ruled, as a matter of law and for a variety of

reasons,  that a reasonable jury  could not find  a breach of

the  Agreement  or  fraud  on  the  basis  of  the  political

advertising allegation.  The court did, however, allow Anchor

to present to the jury, as the predicate for its contract and

fraud     claims,     the     evidence     underlying     its

overcommercialization,    ABC    newsbrief,    and    Nielson

allegations.4   At the  trial's conclusion, the  jury awarded

Anchor $4.5 million for breach  of contract and $13.5 million

for fraud.   It also  awarded Anchor $1  million in  punitive

damages.  

          Subsequent to this verdict, and  in accordance with

then-Fed. R.  Civ. P. 50(b), Narragansett  and Pfeiffer moved

for  judgment   notwithstanding  the  verdict   or,  in   the

                    
                                

    In any event, Narragansett has  not raised the absence of
proof  of damages  as an  alternative ground  for affirmance.
Because  this issue  is  somewhat involved  and has  not been
argued, and  because we believe that  affirmance is otherwise
compelled on the record and briefs before us, we do not delve
further into the damages question at this time.   

4.  In so  stating, we  reject Anchor's contention  on appeal
that the  Nielson allegation did  not constitute part  of its
breach of contract  claim.   In fact, we  find this  argument
difficult to fathom.  In his closing argument, Anchor's trial
counsel   clearly  asserted   that  the   alleged  subterfuge
involving the  Nielson contract  constituted a breach  of the
Agreement.

                             -6-
                                          6


alternative, for a new  trial.  For reasons not  disclosed by

the  record,  the  district  court  kept  this  motion  under

advisement  for more than two years, until June 1993, when it

issued Fleet Nat'l Bank.  See 831 F. Supp. 16.  
                                         

          In  addressing  the  Rule 50(b)  motion,  the court

first held that Narragansett and Pfeiffer were entitled  to a

new trial on  Anchor's breach of contract claim.   See id. at
                                                                      

34-38.    While  the  court  believed  that  there  had  been

sufficient  evidence to support  the jury's  contract verdict

based  on  the ABC  newsbrief  allegation, id.  at  34-36, it
                                                          

determined that the evidence did not permit a reasonable jury

to  find  breach  of contract  on  the  basis  of either  the

overcommercialization  or Nielson  allegations, id.  at 36-37
                                                               

and  43 n.6.  In  making this determination,  the court ruled

that   Narragansett   and   Pfeiffer   had   not   made   any

representations or warranties in the Agreement  regarding the
                                                          

number  of commercials KOVR had broadcast in 1988, id. at 36-
                                                                  

37, and  that the Nielson  allegation was not  viable because

Anchor  had  failed  to  prove justifiable  reliance  on  the

alleged  misrepresentation, id. at 43  n.6.  A  new trial was
                                           

ordered because  the general verdict  form did not  allow the

court to ascertain whether the jury had relied on the legally

defective allegations in reaching  its contract verdict.  Id.
                                                                         

at  37-38  (citing,  inter  alia, Sunkist  Growers,  Inc.  v.
                                                                     

Winckler & Smith Citrus Prods. Co., 370 U.S. 19, 29-30 (1962)
                                              

                             -7-
                                          7


and Brochu v. Ortho  Pharmaceutical Corp., 642 F.2d  652, 662
                                                     

(1st Cir. 1981)).

          The court also held that Narragansett was  entitled

to a  new trial on Anchor's  fraud claim.  See  id. at 38-44.
                                                               

While  the  court believed  that  there  had been  sufficient

evidence to  support the jury's  verdict on  this claim  with

regard  to  the   ABC  newsbrief  and   overcommercialization

allegations, it ruled  that the defective Nielson  allegation

may have poisoned the general fraud verdict beyond cure.  Id.
                                                                         

at 42-43. 

          Finally,  the  court  negated  the  jury's punitive

damages award  as lacking  evidentiary support.   Id.  at 45.
                                                                 

Anchor does not challenge this ruling on appeal.

B.  The Second Trial
            B.  The Second Trial
                                

          In accordance with the district  court's opinion, a

second jury  trial commenced  on March  21, 1994, and  lasted

eleven trial days.  Prior to submitting the case to the jury,

the  court ruled  as a  matter of  law, see  Fed. R.  Civ. P.
                                                       

50(a), that Anchor's  overcommercialization allegation  could

not be presented to the  jury in support of its fraud  claim,

and  that  Anchor's ABC  newsbrief  allegation  could not  be

presented to the jury in support  of its contract claim.  The

court based  these rulings on determinations  that Anchor had

not    proven     damages    in    connection     with    its

overcommercialization  allegation,  and that  Anchor  had not

                             -8-
                                          8


provided  Narragansett and  Pfeiffer with  notice of  the ABC

newsbrief  allegation  within  the  fifteen-day  time  period

contemplated  by the  Agreement.5   The  court also  rebuffed

Anchor's   attempt  to   revive  its   political  advertising

allegation at  this time.   Thus, only Anchor's  fraud claim,

now based solely on the ABC newsbrief allegation, went to the

jury.  The jury  returned a verdict in favor  of Narragansett

and Pfeiffer on  this claim.   After the  verdict, the  court

took  the  apparently  unprecedented  step  of  granting  the

verdict's beneficiaries judgment  as a matter  of law on  the

same claim.  In so doing, the court stated that it was ruling

on  the reserved  motion  so  that  any  error  in  the  jury

instructions  could be  ignored  in  subsequent  proceedings.

This appeal followed.

                             II.
                                         II.
                                            

                      STANDARD OF REVIEW
                                  STANDARD OF REVIEW
                                                    

          We  first  deal  with  a   technical,  nomenclature

matter.    Rule  50 was  amended  during  the  course of  the

proceedings  before  the  district  court.    The  amendments

abandoned the terms "directed verdict" and "judgment n.o.v.,"

which were commonly associated with the former Rule, in favor

of the phrase  "judgment as a matter of law."   See generally
                                                                         

                    
                                

5.  Section 8.5  of the Agreement  required any party  with a
claim arising out of the Agreement to send  a notice of claim
to the breaching party within fifteen business days of coming
to the belief that it had suffered damages in connection with
the claim.

                             -9-
                                          9


Fed. R. Civ. P. 50 advisory committee's note.  The amendments

did  not,  however,  affect  either  the  standard  by  which

district courts review motions brought  under the Rule or the

standard  by which we review a district court's rulings.  See
                                                                         

id.  ("If  a motion  is  denominated  a motion  for  directed
               

verdict  or for  judgment  notwithstanding  the verdict,  the

party's  error is  merely formal.   Such  a motion  should be

treated  as  a motion  for judgment  as  a matter  of  law in

accordance  with this  rule.").   For  simplicity's sake,  we

therefore  refer to  Narragansett's  and  Pfeiffer's  various

motions,  however  denominated  at  the time  of  filing,  as

motions for judgment as a matter of law.

          To  the  extent  that  Anchor  is  challenging  the

district court's  post-trial  rulings that  Narragansett  and

Pfeiffer  were entitled  to judgment  as a  matter of  law on

certain issues, our review is de  novo.  See Lama v.  Borras,
                                                                        

16 F.3d 473, 477 (1st Cir. 1994) (affirming denial of a post-

verdict Fed. R. Civ. P. 50(b) motion for judgment as a matter

of law); Rolon-Alvarado v.  Municipality of San Juan,  1 F.3d
                                                                

74,  77 (1st Cir.  1993) (affirming grant of  Fed. R. Civ. P.

50(a) motion for judgment as a  matter of law at the close of

plaintiff's case).   Thus, we will affirm  these rulings only

if, after  scrutinizing  the proof  and inferences  derivable

therefrom  in  the  light   most  hospitable  to  Anchor,  we

determine that a reasonable factfinder could have reached but

                             -10-
                                          10


one conclusion:  that Narragansett and Pfeiffer were entitled

to judgment.   See Lama, 16 F.3d at 477.  Because the court's
                                   

order  granting Narragansett  and  Pfeiffer a  new trial  was

based solely upon its legal conclusions that defective claims
                        

had been allowed  to go to the  jury, we first  determine the

correctness of the court's rulings in this regard.

          If  we decide  that the  court's legal  conclusions

were  correct,   our   review  becomes   significantly   more

circumscribed.     Where  the   trial  court   has  correctly

determined that legal error infected a claim presented to the

jury, we will defer to the  court's judgment that a new trial

was called for on  that claim absent an abuse  of discretion.

See  Allied Chem.  Corp. v.  Daiflon, Inc.,  449 U.S.  33, 36
                                                      

(1980) (per curiam); see also Payton v. Abbott Labs. 780 F.2d
                                                                

147, 152 (1st  Cir. 1985); 11  Charles A. Wright &  Arthur R.

Miller,  Federal Practice  and Procedure,    2818,  at 119-20
                                                    

(1973) (deference  is appropriate because  "[t]he trial judge

was on the spot and is better able than an appellate court to

decide whether  the error affected the  substantial rights of

the parties").  

          Deference in this  case is particularly appropriate

for  two reasons.    First,  in  its published  opinion,  the

district court explicitly cited as controlling  authority two

cases  which make  clear  that courts  should set  aside jury

verdicts  in only the most  compelling of circumstances.  See
                                                                         

                             -11-
                                          11


Fleet  Nat'l  Bank, 831  F. Supp.  at  32 (citing  Coffran v.
                                                                      

Hitchcock Clinic, Inc., 683 F.2d 5, 6 (1st Cir.) (trial judge
                                  

may not set aside jury verdict merely because s/he would have

reached a different conclusion  than the jury), cert. denied,
                                                                        

459 U.S. 1087 (1982), and Borras v. Sea-Land Serv., Inc., 586
                                                                    

F.2d 881, 886 (1st Cir. 1978) (trial court may set aside jury

verdict only  where verdict  (1) is  against clear weight  of

evidence; (2) is based  upon evidence which is false;  or (3)

will  result in a miscarriage  of justice)).   And second, in

that same opinion, the  court clearly stated its  reasons for

ordering a new trial.   See id. at 37-38 and 43  (court could
                                           

not  tell   whether  jury  had  awarded   Anchor  damages  on

erroneously   submitted   evidence   or  improperly   allowed

arguments).

          Finally,  we review  the  district court's  rulings

excluding  evidence  offered by  Anchor  under  the abuse  of

discretion standard.  E.g., Fairfield 274-278 Clarendon Trust
                                                                         

v. Dwek, 970 F.2d 990, 995 (1st Cir. 1992).  Moreover, we are
                   

free  to   affirm  the   trial  judge's  decisions   "on  any

independently sufficient ground made manifest by the record."

See,  e.g., Ticketmaster-New  York, Inc.  v. Alioto,  26 F.3d
                                                               

201, 204 (1st Cir. 1994).

          With these  criteria  in mind,  we review  Anchor's

claims.   

                             III.
                                         III.
                                             

                             -12-
                                          12


                          DISCUSSION
                                      DISCUSSION
                                                

          Anchor makes  a number  of arguments, the  order of

which we  rearrange for ease  of analysis.   As to  the first

trial, Anchor contends:  (1) the court erred in deciding that

the evidence was  insufficient for a reasonable  jury to have

found fraud  based on the  Nielson allegation;  (2) the  jury

could not, at any  rate, have relied upon this  allegation in

reaching its contract and fraud verdicts;6 and  (3) the court

erred in ruling post-trial  that Anchor should not have  been

allowed  to  raise  the  issue  of  overcommercialization  in

connection with its breach of contract claim.  

          As to  the second trial,  Anchor asserts:   (1) the

district  court  improperly  prohibited  its  witnesses  from

testifying regarding customary levels of commercialization in

the industry;  (2) the court  otherwise erred in  taking from

the jury  the fraud claim based  on the overcommercialization

allegation; (3)  the court erroneously  precluded Anchor from

renewing  its  claims  based  on  the  political  advertising

allegation; (4)  the court improperly excluded certain "state

of mind"  evidence relevant  to the question  of when  Anchor

learned  that  it had  suffered damages  as  a result  of the

improper  running  of   local  commercials  during  the   ABC

                    
                                

6.  We  have  already  rejected  Anchor's  argument that  the
district court erred in  assuming that the Nielson allegation
partially  undergirded the  breach  of contract  claim.   See
                                                                         
supra note 4.
                 

                             -13-
                                          13


newsbrief time slot; (5) the court  otherwise erred in taking

from the jury the breach  of contract claim based on  the ABC

newsbrief allegation; (6) the  court erred in instructing the

jury on the  one issue --  fraud based on  the ABC  newsbrief

allegation -- the jury was permitted to consider; and (7) the

court was without the power to grant  judgment as a matter of

law to Narragansett  and Pfeiffer after the jury had returned

a verdict in their favor on this issue.   

A.  Alleged First Trial Errors
            A.  Alleged First Trial Errors
                                          

          1.  Legal Viability of the Nielson Allegation
                                                                   

          Anchor   first  argues  that  the  court  erred  in

determining  that  the  evidence   was  insufficient  for   a

reasonable jury  to have  found  fraud based  on the  Nielson

allegation.   As  previously stated,  the Nielson  allegation

involved  the claimed  surreptitious  shifting to  subsequent

years of certain 1988 operating expenses incurred as a result

of  a   contract  between  Narragansett   and  Nielson  Media

Research.  The specifics of the allegation are as follows.

          Sometime after  August 3, 1988, at  the time Anchor

was preparing to submit its bid, Narragansett supplied Anchor

with  a box  that contained  hundreds of  contracts involving

KOVR.  One  of these was the Nielson contract,  which set the

monthly  amount  that KOVR  would  pay  for Nielson's  rating

service.   Attached to the contract  was a two-page appendix.

On the first  page of  the appendix, in  a section  captioned

                             -14-
                                          14


"Base  Rate per Month," the figure "$10,000" was typed in the

space provided  for the  time period May  1988 through  April

1989.    An  asterisk   was  next  to  this  figure,   and  a

corresponding  note, typed  at the bottom  of the  same page,

read  "see attached  letter  dated 4/7/88."    No letter  was

attached to the contract.

          The  second   page  of  the  appendix   included  a

computation worksheet.   The  worksheet included a  space for

"Base Rate per Month."  The figure "$3,000" was typed in this

space.   Further down the page was a space captioned "Monthly

Adjustment (estimated) as of May 1988."  The figure "$90.00,"

which represented 3% of  the base monthly rate, was  typed in

this space.   Directly  beneath  this was  a space  captioned

"Estimated  Monthly Net Charge as  of May 1988."   The figure

"$3,090.00," which  represented the Base Rate  per Month plus

the Monthly Adjustment, was typed in this space.

          The  discrepancy  between  the  base  monthly rates

provided  for on the first  and second pages  of the appendix

was explained  in the 4/7/88 letter,  which Anchor discovered

only  after taking control of KOVR.  This letter memorialized

Nielson's agreement to Narragansett's  request to defer until

the  following year $7,000 per month in payments owed for the

period  May  through  December  1988.   Anchor  alleged  that

Narragansett's failure  to include  the 4/7/88 letter  in the

box  of contracts  involving  KOVR amounted  to a  fraudulent

                             -15-
                                          15


concealment of the deferral of 1988  operating expenses in an

attempt   to   inflate  1988   cash   flow.     The   alleged

misrepresentations  were  the  "$10,000"  base  monthly  rate

figure  typed on  the  first  page  of the  Nielson  contract

appendix,  and  subsequent  representations  by  Narragansett

officials  (including   Pfeiffer),  both  oral  and   in  the

Agreement, that Narragansett had  provided Anchor with a true

and complete set of contracts relating to KOVR.

          In its order on the motions filed subsequent to the

first trial, the district court stated that, in order to make

out a  fraud  claim under  Rhode  Island law  (which  governs

here),  Anchor was  required to  prove that  Narragansett and

Pfeiffer knowingly misrepresented a material fact with intent

to deceive,  thereby inducing  Anchor to rely  justifiably on

the  misrepresentation to  its  detriment.   See Fleet  Nat'l
                                                                         

Bank, 831 F. Supp. at 38.  The court then  concluded that, in
                

light  of the  asterisk referring  interested readers  to the

4/7/88  letter and the two  statements on the  second page of

the  Nielson contract  appendix  referencing  a  $3,000  base

monthly  rate for  May 1988,  no  reasonable jury  could have

found  that   Anchor  justifiably   relied  on   the  $10,000

representation on  the first  page of the  Nielson contract's

appendix.  See Fleet Nat'l Bank, 831 F. Supp. at 42-43.
                                           

          Regardless   of   whether  Anchor's   reliance  was

justifiable,  we  regard   as  independently  supported   the

                             -16-
                                          16


district court's conclusion that the fraud claim based on the

Nielson  allegation was not  legally viable.   See Alioto, 26
                                                                     

F.3d at 204.   Under  Rhode Island law,  liability for  fraud

cannot attach  unless  the  misrepresentation  at  issue  was

intentionally  made with  an  intent to  deceive.   See  East
                                                                         

Providence Loan  Co.,  236  A.2d  at 641;  see  also  Cliftex
                                                                         

Clothing  Co.,  Inc. v.  Di Santo,  148  A.2d 273,  275 (R.I.
                                             

1959); Campanelli v. Vescera, 63  A.2d 722, 723 (R.I.  1949);
                                        

Cheetham v. Ferreira, 56 A.2d  861, 864 (R.I. 1948).  In  our
                                

view,  the same  representations  and references  (i.e.,  the

asterisk,   reference  to  the  4/7/88  letter,  and  correct

statements of the  base monthly rate) which  led the district

court  to determine  that  Anchor's reliance  on the  $10,000

figure  was not  justifiable compel  the conclusion  that the

alleged misrepresentations  were not intentionally  made with

an intent to  deceive.  Simply  put, we do  not think a  jury

could reasonably  infer  such an  intent  where there  is  an

explicit reference  to  the  term-altering  document  --  the

4/7/88  letter --  on the  same page  as the  crucial alleged
                                                

misrepresentation, where the true  base monthly rate is twice
                                                                         

set  forth on the very  next page of  the addendum, and where
                                             

there  is no evidence that  the exclusion of  the letter from

the   box  of  documents   involving  KOVR  was  intentional.

Accordingly, we  affirm the court's  grant of  judgment as  a

                             -17-
                                          17


matter of law to Narragansett and  Pfeiffer on Anchor's fraud

claim based on the Nielson allegation.

          2.  Effect of the Nielson Allegation on the Verdict
                                                                         

          Anchor  makes  an  alternative  argument  that  the

Nielson allegation,  and its  supporting evidence, could  not

possibly have influenced the jury's verdict on its  breach of

contract  and   fraud  claims.    Anchor   contends  that  it

introduced  little  evidence   in  support  of  the   Nielson

allegation at trial, and that it did not quantify the damages

arising  out of  it  during its  closing.   Relying  on  this

contention,  Anchor  asserts  that  the  district  court,  by

jettisoning  the contract  and fraud  verdicts,  allowed "the

tail to wag the dog." 

          Although the Nielson allegation was not the primary

focus  of Anchor's case, a  review of the  first trial record

shows  that  Anchor specifically  mentioned  it  in both  its

opening and  closing arguments.   Moreover, Anchor  supported

the allegation by having  Patrick Murphy, its Chief Financial

Officer,  testify   to  the  incompleteness  of  the  Nielson

contract and explain  to the  jury that the  omission of  the

4/7/88  letter  from  the  box of  contracts  involving  KOVR

fraudulently "presented to  us a larger  cash flow than  what

they should have because  of the shifting of expenses."   And

while Anchor  did  not  quantify  for the  jury  the  damages

arising out  of the  Nielson allegation,  it did provide  the

                             -18-
                                          18


jury with a  damages theory  (i.e., improperly-obtained  1988

cash flow multiplied  by 13.6, the multiplier Anchor  used in

arriving  at  its bid)  by which  the  jury could  easily and

rationally have quantified the damages for itself.  In  light

of all this, and in the  absence of any suggestion on  appeal

that a remittitur would have been appropriate, we  cannot say

that the district court  abused its discretion in determining

that the general fraud and contract verdicts  returned at the

conclusion  of  the  first  trial  may  have  been  incurably

infected  by  the   legally  deficient  Nielson   allegation.

Accordingly, we affirm the district court's decision to award

Narragansett and Pfeiffer new trials on Anchor's contract and

fraud claims.

          3.   The  Breach  of Contract  Claim  Based on  the
                                                                         
          Overcommercialization Allegation
                                                      

          As  we have noted,  a second basis  for the setting

aside of the contract verdict  was the district court's post-

trial  determination that  there were  no representations  or

warranties  in  the   Agreement  regarding   the  number   of

commercials   KOVR  had  been   running  prior   to  Anchor's

submission of its bid.  Anchor claims that the court erred in

reaching   this   conclusion,   denoting  three   contractual

provisions which,  in its view, a reasonable juror could have

construed as pertaining to 1988 commercialization levels. 

          The first  of these provisions, which  can be found

at paragraph 5.1(a) of the  Agreement, and which is captioned

                             -19-
                                          19


"Conduct  of  the  Business  Until Effective  Time,"  states:

"Except as  [Anchor] may otherwise consent  in writing, until

the  Effective  Time  [Narragansett]  will  (i)  operate  its
                                                      

business only in the usual, regular and ordinary manner . . .

."  (Emphasis supplied).   Plainly,  through its  use of  the

future  tense "will,"  this  representation  covers only  the

period of time between the date of the Agreement, October 12,

1988, and the date the  merger became effective, January  25,

1989.    Thus,  despite  Anchor's  attempts  to  convince  us

otherwise,7  paragraph  5.1(a)  simply  cannot  be  read   as

pertaining  to the period of time (i.e., that portion of 1988

prior  to Anchor's submission of  its bid) when  the sale and
                     

running of  too many commercials at KOVR  might have affected

the  amount Anchor bid for the station.  And because Anchor's

damages  theory  involved  only  the effect  of  artificially

inflated  1988 cash flow on its bid, conduct which took place
                                               

after the submission of the  bid is completely irrelevant  to

its claims.

          The second provision, found at paragraph 5.1(e) and

captioned "Preservation  of Business,"  does not  help Anchor

for the same reason.   The provision states:  "[Narragansett]

                    
                                

7.  In  what  appears to  be  an attempt  to  avoid paragraph
5.1(a)'s  temporal  limitations,  the citation  to  paragraph
5.1(a)  in Anchor's  brief omits  paragraph  5.1(a)'s caption
("Conduct of  Business Until Effective Time")  and alters the
phrase  "will (i) operate" to read "operat[ed]."  If this was
deliberate,  it   was  deceptive;   if  a  mistake,   it  was
inexcusable.

                             -20-
                                          20


shall  conduct the  business  and operations  of the  Station
                 

diligently and  in the  ordinary course in  substantially the

same manner  as heretofore conducted."   (Emphasis supplied).

Through its  use of the future tense  "shall," this provision

also only covers a  period of time subsequent to  October 12,

1988, the date of  the Agreement.  And as we  have explained,

any improper actions taken by Narragansett or Pfeiffer during

this  time period  are  irrelevant under  the damages  theory

pursued by Anchor.

          The   final  provision   relied  upon   by  Anchor,

paragraph  4.1(f), simply  cannot be construed  as warranting

"customary"  commercialization  levels  at KOVR.    Captioned

"Absence of  Certain Changes  or Events," the  provision sets

forth a number of  illustrative asset-dissipating and capital

structure-altering  events  and  transactions, warranting  an

absence of such events or transactions "since the date of the

Unaudited  Financial  Statements  [August  31,  1988]."   The

proviso upon which Anchor seizes states that "the Company has

not  . .  .  (v)  entered  into  . .  .  any  other  material

commitment, contractual obligation or transaction  other than

in the ordinary course of business . . . ."  

          Leaving  aside  the   fact  that  Anchor  did   not

introduce specific evidence of overcommercialization  at KOVR

from August  31, 1988 through  September 28,  1988 (the  only

period of time prior  to Anchor's submission of its  bid that

                             -21-
                                          21


this provision can be read to cover), we are at a loss to see

how it would be reasonable to regard the sales of commercials

challenged  here  as  being  transactions  outside  of KOVR's

"ordinary  course  of  business."    As  the  district  court

observed,  paragraph 4.1(f)'s  "ordinary course  of business"

proviso, when read in context, should be construed  as simply

warranting  that  Narragansett  had   not  entered  into  any

transactions (1) of an unusual type for a television station;

or (2) that would  tend to unduly dissipate KOVR's  assets or

alter  its capital structure.   See Fleet Nat'l  Bank, 831 F.
                                                                 

Supp. at 37.   Certainly,  sales of commercial  time are  not

unusual transactions  for a  television station; indeed,  the

revenues  generated  by  such sales  constitute  a  station's

lifeblood.  Moreover,  the record is devoid  of evidence that

the number of such sales entered into by  Narragansett during

the relevant time  period --  even if in  excess of  industry

norms  -- threatened  to  unduly dissipate  KOVR's assets  or

alter its capital structure.   

          To  be sure,  the actual  meaning of  a contractual

provision  which  can  reasonably  accommodate  two  or  more
                                             

interpretations  should be  left  to the  jury.   See,  e.g.,
                                                                        

Bushkin Assocs.,  Inc. v. Raytheon Co., 815  F.2d 142, 148-49
                                                  

(1st  Cir.  1987)  (applying  Massachusetts law).    But  the

question  whether  a  provision  can  reasonably  support   a

proffered interpretation is a legal one, to be decided by the

                             -22-
                                          22


court.   See Fashion House,  Inc. v. K  Mart Corp.,  892 F.2d
                                                              

1076,  1083   (1st   Cir.  1989)   (applying  Michigan   law)

("Determining whether or not a contract is ambiguous is, like

other questions  of contract  construction, a matter  for the

court.").  Here, we think that the court correctly determined

that Anchor's proffered  interpretation of paragraph 4.1(f)'s

"ordinary  course of  business"  proviso --  which reads  the

proviso  as warranting customary  commercialization levels at

KOVR during 1988 -- was not one that a reasonable juror could

accept.  Accordingly, we affirm the court's ruling.

          In  sum,  we agree  with  the  district court  that

Anchor should not have been  permitted to present the Nielson

allegation  to the jury, and that Anchor should not have been

allowed  to  raise  the  issue  of  overcommercialization  in

connection with  its breach of  contract claim.   We  further

rule  that  the   court  did  not  abuse  its  discretion  in

determining  that these  improperly asserted  allegations may

well  have affected  the  jury's general  contract and  fraud

verdicts at the first trial.  We therefore affirm the court's

post-trial order, see Fleet  Nat'l Bank, 831 F. Supp.  16, in
                                                   

all respects.8

                    
                                

8.  Because of these rulings, we need not discuss whether the
court's  new   trial  order   on  the  fraud   claim  against
Narragansett can be alternatively upheld  on the basis of the
court's post-trial  determination  that it  should  not  have
submitted  to   the  jury  the  question   of  Narragansett's
vicarious   liability  as   Pfeiffer's   alter  ego   or  co-
conspirator.  See Fleet Nat'l Bank, 831 F. Supp. at 44-45.
                                              

                             -23-
                                          23


B.  Alleged Second Trial Errors
            B.  Alleged Second Trial Errors
                                           

          1.    Exclusion  of  Witness   Testimony  Regarding
                                                                         
          Customary  Levels  of   Commercialization  in   the
                                                                         
Industry       Anchor  complains that,  at the  second trial,
                    

the   district  court   improperly  excluded,  for   lack  of

foundation,  testimony  by  Anchor's  Senior  Vice President,

Lawrence    Clamage,    regarding    customary   levels    of

commercialization in  the industry.  Anchor  underscores this

plaint by pointing out that Clamage was permitted to testify,

over  objection, to  industry norms  in the first  trial, and

that the court offered  no rationale for its  contrary ruling

at  the second trial.  Anchor further contends that the court

committed legal error in not allowing it to read  to the jury

testimony regarding  industry norms given at  the first trial

by John  Sheehan, who was  unavailable for the  second trial.

In the alternative, Anchor asserts that the court  abused its

discretion  by  denying  it  a one-day  continuance  so  that

Sheehan  could appear.  Anchor claims that all three of these

erroneous,  discretionary  rulings  were  highly  prejudicial

because  the court's award of judgment as  a matter of law on

Anchor's  fraud  claim  based  on  overcommercialization  was

premised upon  an absence of  evidence by which  Anchor could

"structure the amount of damages for overcommercialization."

          While  the  equities  of  the  situation  involving

Sheehan are not nearly as one-sided as Anchor represents them

                             -24-
                                          24


in its  brief,9 we  can understand Anchor's  frustration with

the court's  failure to  explain why Clamage's  testimony was

admissible  in  the  first  trial  but  not  in  the  second.

Especially in light of the two-year delay in deciding the new

trial  motion,  we  think  that Anchor  was  entitled  to  an

explanation for the court's change of mind.   The fact of the

matter is, however, that evidence regarding commercialization

norms in the industry was completely irrelevant in the second

trial.  

          As we have explained, the court properly ruled that

the Agreement could not  be construed as warranting customary

commercialization  levels  during   the  time  period  Anchor

examined  in developing its bid.  And the only other evidence

of a  representation  regarding commercialization  levels  at

KOVR introduced by  Anchor at  the second trial  was the  so-

called July/August  1988  day-part summary,  a document  that

summarized commercialization  levels and commercial-generated

income  by day and time (e.g., 7/25, 8:00-9:00 p.m.) for July

and  August  1988.   The  July/August  1988 day-part  summary

allegedly misrepresented that KOVR was undercommercialized in
                                                                      

July  and August  1988  and understated  commercial-generated

                    
                                

9.  Anchor  had more  than a month's  notice that  the second
trial  would begin on March  21, 1994.   Despite this notice,
Anchor apparently did not ascertain Sheehan's availability as
a witness until it was in the middle  of presenting its case.
Indeed,  Anchor  did  not  communicate with  Sheehan  at  all
between  January 27,  1994 and  March 25,  1994, the  date on
which it learned of Sheehan's unavailability.

                             -25-
                                          25


income  during this same period.  Thus, there was no evidence

in the second trial  of a representation to Anchor  that KOVR

was commercialized in accordance with industry norms in 1988,

and  Anchor  had no  basis for  arguing  that it  was damaged

because it bid too much in reliance on such a representation.

Accordingly, we affirm the court's exclusion of the testimony

regarding industry  standards on the independent  ground that

it was irrelevant.  See Alioto, 26 F.3d at 204; see also Fed.
                                                                    

R.Evid.402("Evidence whichisnotrelevantis notadmissible.").10

                    
                                

10.  After  the  district court  excluded  evidence regarding
industry  norms  at  the   second  trial,  Anchor  argued  an
alternative "expectancy"  damages theory.   Under  this late-
arising  theory,  Anchor sought  to  recover  the revenue  it
expected  to generate  by running  more commercials  on KOVR,
which  it  had  been  fraudulently  induced  to  believe  was
substantially  undercommercialized at the  time of  the sale.
In a throw-away line in its reply brief, Anchor contends that
evidence of industry  norms was relevant to  proof of damages
under its expectancy damages theory.
     An  expectancy damages  theory which  would look  to the
difference  between the revenue  Narragansett falsely claimed
to have been  generating in July/August 1988, and the revenue
that a  station  commercialized in  accordance with  industry
norms  would  have  been  generating  at  that time,  is  not
implausible.  Indeed,  it strikes  us as being  much more  in
line with  the fraud  damages to  which  Anchor actually  was
entitled  under Rhode Island law than the "effect on the bid"
theory pursued throughout this litigation.  See supra note 3.
                                                                 
The problem is, however, that Anchor never sought to quantify
its expectancy damages in this way until its reply brief.  In
                                                    
fact, Anchor represented  to the district  court on at  least
three  occasions   that  evidence  of   industry  norms   was
irrelevant  to its  expectancy  damages theory.   See  Second
                                                                 
Trial Transcript, 3/29/94, at 13 (two representations to this
effect),  and  3/30/94  at 18.    Instead,  Anchor  sought to
quantify its expectancy damages as the difference between the
actual 1988 revenues generated by the overcommercialized KOVR
(a  fact of which it  learned only subsequent  to taking over
                                                             
the station), and  the far lower revenues the  false day-part
summary indicated that  KOVR was realizing.   We discuss  the

                             -26-
                                          26


          2.  The Fraud Claim Based on the Over-
                                                            
          commercialization Allegation
                                                  

          As noted, subsequent to  the conclusion of Anchor's

case  in  the  second   trial,  the  district  court  granted

Narragansett and  Pfeiffer judgment  as a  matter  of law  on

Anchor's  fraud  claim  based  on  the  overcommercialization

allegation  for failure  to prove  damages.   Anchor contests

this  ruling, arguing  that it  proved expectancy  damages by

demonstrating  the  difference  between  the  actual  revenue

generated  by the "too many" commercials run in 1988, and the

lower revenue  the July/August 1988 day-part  summary falsely

indicated was being generated.  See supra note 10.
                                                     

          Throughout   both   trials,   Anchor   consistently

maintained that KOVR was  covertly running commercials far in

excess  of  industry  norms  during the  time  period  Anchor

examined in  formulating its  bid.  Anchor  also consistently

contended that, after taking over the station in 1989, it had

to  reduce commercialization  levels  in order  to bring  the

station  into conformity  with industry  norms.   Given these

positions, Anchor would have been estopped from raising, near

the conclusion of its  case in the second trial,  an explicit

                    
                                

legal viability of this quantification in the next section of
our opinion; suffice it  to say at this point that Anchor has
waived  any  argument that  evidence  of  industry norms  was
relevant  to  its  expectancy  damages theory.    See,  e.g.,
                                                                        
Sandstrom  v. Chemlawn Corp., 904 F.2d 83, 86 (1st Cir. 1990)
                                        
(deeming  waived an argument not made below or in appellant's
opening brief).     

                             -27-
                                          27


alternative  argument  that it  expected to  commercialize at

levels commensurate  with those actually employed  at KOVR in
                                     

1988.  Cf. Desjardins  v. Van Buren Community Hosp.,  37 F.3d
                                                               

21, 23 (1st  Cir. 1994) (doctrine  of judicial estoppel  "may

apply to  bar a litigant  from engaging in  intentional self-

contradiction  as a  means  of  obtaining unfair  advantage")

(citations omitted).  Such an argument was, however, implicit

in Anchor's alternative damages theory.  

          In   quantifying   its   expectancy    damages   by

subtracting the  lower, misrepresented revenues  set forth in

the July/August day-part summary from the higher, actual 1988

revenues  that  KOVR  was   generating,  and  in   explicitly

repudiating  any  suggestion that  the  lower, misrepresented

revenues more properly should be subtracted from the revenues

the station  would have generated had  it been commercialized

in  accordance with industry  norms, Anchor implicitly argued

that,  at  the time  it bought  the  station, it  expected to

generate the  same commercial revenues it  later learned that
                                                            

the station had generated  in 1988.  Absent a proffer that it

somehow anticipated earning these revenues by commercializing

in accordance with industry norms, however, (and there was no

such proffer  here), the only way Anchor  could have expected

to earn  the higher revenues  was if it  expected to  run the

same  number of  commercials  that Narragansett  actually had

been  running in July/August 1988.  In other words, given the

                             -28-
                                          28


state of the record at the second trial, necessarily subsumed

within  Anchor's  alternative  damages  theory  was  a  tacit

argument -- i.e., that Anchor expected to run the same number

of  commercials that  Narragansett  had been  running at  the

relevant  time in 1988 --  which was completely  at odds with

the stance Anchor had  taken regarding 1988 commercialization

levels.        The district court did  not err in prohibiting

Anchor from altering its litigation position in this way.  It

follows, therefore, that the court did not err in ruling that

Anchor had failed to prove expectancy  damages arising out of

any fraudulent misrepresentation of  commercialization levels

by  Narragansett or Pfeiffer.  See Campanelli, 63 A.2d at 724
                                                         

(proof of fraud includes  proof of damage-causing reliance by
                                                             

plaintiff); Cheetham, 56 A.2d  at 863 (purchaser defrauded to
                                

his/her  disadvantage  has fraud  action  under  Rhode Island
                                 

law).          3.  The Political Advertising Allegation
                                                                   

          Having granted Narragansett  and Pfeiffer  judgment

as  a matter  of law  on Anchor's  contract and  fraud claims

based  on  the  political advertising  allegation  during the

first   trial,  the  district   court  summarily11  precluded

Anchor from arguing at the second trial that Narragansett had

artificially inflated 1988 revenues by overcharging political

                    
                                

11.  Prior  to opening  arguments  in the  second trial,  the
court  stated that it was "likely" to rule out the allegation
for the  same reasons that it  had ruled it out  at the first
trial.  The next day, without elaborating, the court notified
the parties that the allegation was indeed out of the case. 

                             -29-
                                          29


candidates for commercial time.  Anchor assigns error only to
                                                                      

this second trial ruling, arguing that it was improper unless

"there  is no theory of the facts under which the allegations

of  the  complaint state  a cause  of  action.   Vartanian v.
                                                                      

Monsanto  Co., 14 F.3d 697,  700 (1st Cir.  1994)."  Anchor's
                         

argument completely  overlooks the procedural posture  of its

political advertising allegation at the second trial.

          Perhaps   nothing    better   highlights   Anchor's

misapprehension of this issue  than its citation to Vartanian
                                                                         

as  supporting authority.    The above-quoted  language  from

Vartanian  summarizes the  standard  by which  we review  the
                     

propriety  of the  a district  court's dismissal  of a  claim

under  Fed.  R.  Civ. P.  12(b)(6).    The  exclusion of  the

political advertising allegation at the second trial was not,
                                                                        

however, a Rule 12(b)(6) dismissal.  When the court ruled the

allegation  out of the second  trial, Anchor had already been

afforded a complete opportunity to substantiate and argue it,

and  the court had  deemed it insufficient  to go to  a jury.

Thus, despite  Anchor's attempts to depict  it otherwise, the

court's exclusion  of  the political  advertising  allegation

from the second trial was tantamount to a denial of a Fed. R.

Civ. P. 60(b)  motion to set  aside a properly-entered  prior

order.   See  Fed.  R.  Civ.  P.  60(b)  (setting  forth  the
                        

circumstances  in  which a  court may  relieve  a party  or a

                             -30-
                                          30


party's  representative  from  a  final  order).12    And  we

review  such denials only for  an abuse of  discretion.  See,
                                                                        

e.g., de la Torre v. Continental  Ins. Co., 15 F.3d 12, 14-15
                                                      

(1st  Cir. 1994) (orders denying relief under Fed. R. Civ. P.

60(b) -- which  allows for "extraordinary relief".  . . "only

under exceptional  circumstances" --  reviewed solely  for an

abuse of discretion) (citations omitted).

          Because it failed to understand the procedural path

it had to follow, Anchor did not present the trial court (and

has  not presented us) with an argument that a revival of its

political  advertising allegation  was required under  any of

the  criteria  --   e.g.,  mistake,  inadvertence,  surprise,

excusable  neglect, newly-discovered evidence, fraud, etc. --

delineated in  Rule 60(b).   Instead, Anchor argues  that, by

the time  of  the  second  trial, it  "had  reconsidered  its

arguments on  [the  political advertising]  issue  and  [had]

marshalled new evidence in support  of its claim."   Plainly,

this is  an inadequate  foundation upon  which  to premise  a

request for relief under Rule 60(b).  Cf. Rothwell Cotton Co.
                                                                         

v. Rosenthal & Co., 827 F.2d 246, 251 (7th Cir.) ("Rothwell's
                              

brief  is long  on support  for why  summary judgment  is not

                    
                                

12.  Apparently   believing  itself  entitled  to  renew  its
political advertising  allegation at  the second trial  as of
right, Anchor never formally moved  the court for relief from
the prior order under  Rule 60(b).  Its arguments  in support
of its position were  instead set forth in its  opposition to
Narragansett's  pretrial  motion  in  limine  to  exclude the
                                                        
allegation from the second trial. 

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appropriate in light of all the  evidence and legal arguments

it  now presents, but short on explaining why Rothwell should

be  able to begin presenting  those arguments --  in waves --

almost six  weeks after the district court  had already ruled

against Rothwell."),  reh'g denied, opinion amended, 835 F.2d
                                                               

710  (7th Cir.  1987).   Furthermore, our  own review  of the

record  reveals  no "exceptional  circumstances"  which would

have  made   relitigation   of  the   political   advertising

allegation  appropriate.    Accordingly, the  district  court

acted well  within its discretion in  prohibiting Anchor from

pursuing this allegation at the second trial.

          4.  Remaining Appellate Issues
                                                    

          The  four remaining  arguments  Anchor  presses  on

appeal  relate  to  decisions  the  district  court  made  in

connection  with the ABC newsbrief allegation.   See supra at
                                                                      

13-14.   We  need not and  do not  reach the  merits of these

arguments,  because our review  of the  record compels  us to

conclude that, for an independent reason, Anchor's claims for

breach  of  contract and  fraud  based on  these  claims were

legally deficient.  See Alioto, 26 F.3d 204.13
                                          

                    
                                

13.  While we do not address  the merits of Anchor's argument
that the court  was without the power to  grant judgment as a
matter of law to  Narragansett and Pfeiffer on the  one issue
that  went to the jury after the  jury had returned a verdict
                                        
in their favor, we do note that this type of order is utterly
superfluous.  The  beneficiary of a  jury verdict may,  after
all, always  assert on appeal  (as an  alternative basis  for
upholding the verdict) a properly preserved argument that the
claim underlying the  verdict was legally deficient.  And we,

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          As already explained,  the essence of Anchor's  ABC

newsbrief  allegation  was  that   Narragansett  fraudulently

increased its cash  flow in the months  preceding the auction

by  running   local  commercials  at  a  time   when  it  was

contractually obliged to be running an ABC newsbrief.  Anchor

quantified the damages arising out of this fraudulent conduct

in accordance with  its "effect on  the bid" damages  theory.

See  supra at 4-5.   That is  to say, Anchor  argued that the
                      

proper measure of damages  arising from this conduct was  the

amount  of 1988  revenue generated  by the  improper practice

times the  multiplier (13.6)  Anchor used in  formulating its

bid.

          As   the   district   court   noted   in   granting

Narragansett and Pfeiffer  judgment as a matter  of law after

the jury verdict on the fraud claim based on this allegation,

see supra  at 9  and note 13,  the problem with  this damages
                     

theory in context is that most, if not all, of the revenue at

issue still would have  been generated in the absence  of the

alleged fraud.   Anchor's  own damages witness,  Martin Ross,

admitted:  (1) few, if any, local commercials are sold to run

at a specific point  in time; (2) most local  commercials are

                    
                                

of  course, would  review such  a legal  argument de  novo --
                                                                      
i.e., without  deference to the  trial court's opinion  as to
its merits.  Thus, there is no practical reason for the court
to resolve a reserved motion for judgment as a matter  of law
where the jury has found in favor of the party or parties who
initially filed the motion.     

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                                          33


"preemptable"  (i.e.,  able  to  be  run,  in  the  station's

discretion,  outside of the general time frame for which they

have  been sold); and (3)  on a given  day, "there's probably

always going to be  some commercial availability."  Moreover,

Mr. Ross conceded that Anchor had failed to go through KOVR's

1988 program  logs and determine which  of the improperly-run

commercials  could   not  have   been  run   elsewhere,  thus

generating irreplaceable revenue.

          Anchor does not dispute  any of this.  In  fact, it

appears to recognize that  its bid was not  actually affected

by  fraud  in connection  with  the  ABC  newsbrief (and  any

concomitant  breach of  the Agreement  such fraud  would have

engendered)  except to  the extent  that the  fraud generated

irreplaceable  revenue.   Anchor  argues,  however, that,  in
                         

order to prove  its damages, all  it had to  do was  quantify

Narragansett's ill-gotten revenue.   In its view, once it had

quantified   such  revenue,  it   became  Narragansett's  and

Pfeiffer's burden  to prove the  extent to which  the revenue

was replaceable (as part  of their burden of  proving failure

to mitigate damages).

          This argument  is unconvincing.   The law  does not

contemplate  that a  party victimized by  fraud or  breach of

contract prove, without reference to  the rest of the record,

the narrow effects of  the fraud or breach; it  requires that

party to  prove, as  an element  of its  case, the  extent to
                                                         

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                                          34


which it was damaged by the fraud or breach.   In the face of
                                

the uncontroverted  evidence  showing that  KOVR still  would

have generated  most of the  revenues it obtained  by running

local commercials when  it should have  been running the  ABC

newsbrief, it  is apparent that  Anchor, by proving  only the

amount of revenue traceable  to the improper practice, failed

to provide  the jury  with a basis  upon which  to premise  a

reasoned  damages finding.   Thus, Anchor failed  to prove an
                             

element of its case.

          While ingenious,  it is incorrect  to suggest  that

Narragansett  and Pfeiffer  bore  the burden  of proving  the

extent to which the ill-gotten income was replaceable as part

of  their duty  to prove  failure to  mitigate damages.   The

doctrine of mitigation of damages  imposes on a party injured

by either a breach of contract or a tort the duty to exercise

reasonable  diligence  and  ordinary  care  in attempting  to

minimize its damages.  Black's  Law Dictionary 1002 (6th  ed.
                                                          

1990).  The doctrine thus presupposes, as a threshold matter,
                                                 

the existence of  a causal nexus  between the damages  sought

and the breach or tort, looking at whether and to what extent

an intervening cause (i.e., a plaintiff's own negligence) may

have contributed to these damages.  Here, the question is not

whether and  to what extent Anchor's  own conduct contributed

to  its damages;  it  is, rather,  the threshold  question of

whether the damages  Anchor sought were caused by the conduct

                             -35-
                                          35


of  which Anchor  complained.   Accordingly, the  doctrine of

mitigation of damages is completely inapposite.

          In sum,  we think  it clear that  Anchor's contract

and fraud  claims based on the ABC  newsbrief allegation were

deficient  because of  an absence  of proof  of damages.   We

therefore reject Anchor's  remaining appellate arguments, all

of which pertain  to the district  court's handling of  these

claims.

                             IV.
                                         IV.
                                            

                          CONCLUSION
                                      CONCLUSION
                                                

          For the  reasons stated above, the  judgment of the

district court is affirmed in all respects.

          Affirmed.  Costs to appellees.
                      Affirmed.  Costs to appellees.
                                                    

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