Paul Ahern (plaintiff) was the manager of Donald Thomas Scholz (defendant), a member of the band Boston. The two entered into various agreements, including a further modification agreement (FMA), which required Scholz to pay Ahern royalties from Boston’s third album and required Ahern to pay Scholz royalties from Boston’s first and second albums. Ahern brought suit for breach of the FMA against Scholz for failure to pay those royalties and Scholz counterclaimed that Ahern breached the FMA by not paying his respective royalties. Ahern sought over a million dollars from Scholz and an accountant estimated that Ahern owed Scholz $459,000. The trial jury found that Scholz breached the FMA and that Ahern did not materially breach the FMA. It awarded Ahern $547,007 in damages. The district court denied Scholz’s motion for a new trial. Scholz appealed.