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Williams Electronics Games, Inc. v. Garrity

United States Court of Appeals for the Seventh Circuit

366 F.3d 569 (2004)

Facts

Greg Barry was a buyer for Williams Electronics Games, Inc. (Williams) (plaintiff), a video-game manufacturer. Arrow Electronics, Inc. (Arrow) and Milgray Electronics, Inc. (Milgray) (defendants) supplied components to Williams. James Garrity (defendant) was a salesman for Arrow. Williams sued Garrity, Arrow, and Milgray claiming that they gave Barry more than $100,000 in cash bribes so that Williams would purchase components from them instead of other suppliers. In addition to seeking damages, Williams asked the court to impose a constructive trust on the profits Arrow and Milgray made from their bribery. The jury returned a verdict in favor of Arrow and Milgray but found against Garrity and awarded Williams $78,000—the amount of the bribe Garrity had given Barry. The judge denied Williams’s equitable claims for the imposition of a constructive trust. On appeal, Williams maintained that the court erred in instructing the jury on Arrow and Milgray’s defenses. Arrow and Milgray argued that if the court reversed the judgment for them, damages should be no greater than the amount of the $78,000 jury award against Garrity.

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Holding and Reasoning (Posner, J.)

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