CLE Center Home  |  FAQs  |  
 
Juries and Contract Interpretation Open Article in Another Window
February 2012
If a jury is permitted to interpret a commercial contract, the resulting verdict could be substantial—and difficult to overturn on appeal.
General Credit
1. Contract interpretation is always a question of law for the court to decide.  True  False
2. In City of Hope v. Genentech, the California Supreme Court, for the first time, set the standard for determining whether a judge or jury should decide issues of contract interpretation.  True  False
3. If there is no dispute about material extrinsic facts, a contract’s interpretation is a question of law for the court.  True  False
4. Issues of fact are reviewed by an appellate court under a de novo standard.  True  False
5. A dispute over the correct inferences to be drawn from a contract is an issue of law for the court.  True  False
6. If there is a material conflict over the extrinsic evidence relevant to contract interpretation, the jury can interpret the contract.  True  False
7. Contract interpretation issues can never be resolved via a motion for summary judgment.  True  False
8. In City of Hope, the jury awarded damages totaling $300 million, and did so through a general verdict form.  True  False
9. If contract interpretation is based on the credibility of conflicting extrinsic evidence, the decision will be reviewed under a highly deferential standard that makes it all but impossible to overturn the judgment.  True  False
10. If what was said during a contract’s negotiation is in dispute, the issue of contract interpretation may be presented to a jury instead of a judge.  True  False
11. The use of a dual procedure—with the jury resolving factual disputes followed by the court interpreting the contract—is up to the discretion of the trial judge.  True  False
12. In City of Hope, the matters at stake were relatively minor.  True  False
13. In Haworth v. Superior Court, the California Supreme Court indicated that mixed questions of law and fact usually should be reviewed under the de novo standard.  True  False
14. One way to avoid presenting issues of contract interpretation to a jury is to include an arbitration clause in the contract.  True  False
15. Another option is to provide in the contract that disputes will be decided by a judicial referee.  True  False
16. If the plaintiff obtains a jury trial on contract interpretation issues, the defendant may find it advisable to request a special verdict form.  True  False
17. If a jury has been allowed to interpret the contract, the appellant can request a de novo review on the grounds that the issue involves mixed questions of fact and law.  True  False
18. Approved jury instructions for cases involving contract disputes provide some general principles of contract interpretation.  True  False
19. Even if a jury delivers an adverse verdict in a contract interpretation case, it is relatively easy to persuade an appellate court to reverse.  True  False
20. To get a contract interpretation issue before a jury, counsel should argue that there are factual disputes as to what the contract means.  True  False