WEGCO, Incorporated v. Griffin Services Inc , 19 F. App'x 68 ( 2001 )


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  •                            UNPUBLISHED
    UNITED STATES COURT OF APPEALS
    FOR THE FOURTH CIRCUIT
    WEGCO, INCORPORATED,                   
    Plaintiff-Appellee,
    v.                              No. 00-2053
    GRIFFIN SERVICES, INCORPORATED,
    Defendant-Appellant.
    
    WEGCO, INCORPORATED,                   
    Plaintiff-Appellant,
    v.                              No. 00-2123
    GRIFFIN SERVICES, INCORPORATED,
    Defendant-Appellee.
    
    Appeals from the United States District Court
    for the Eastern District of Virginia, at Alexandria.
    Gerald Bruce Lee, District Judge.
    (CA-98-452-A)
    Argued: May 7, 2001
    Decided: September 19, 2001
    Before WIDENER and WILKINS, Circuit Judges, and
    Arthur L. ALARCON, Senior Circuit Judge of the
    United States Court of Appeals for the Ninth Circuit,
    sitting by designation.
    Affirmed in part and vacated in part by unpublished per curiam opin-
    ion. Judge Widener wrote an opinion concurring and dissenting in
    part.
    2              WEGCO, INC. v. GRIFFIN SERVICES, INC.
    COUNSEL
    ARGUED: Joseph William Koegel, Jr., STEPTOE & JOHNSON,
    L.L.P., Washington, D.C., for Appellant. Roger A. Colaizzi, VEN-
    ABLE, BAETJER, HOWARD & CIVILETTI, L.L.P., Washington,
    D.C., for Appellee. ON BRIEF: Damon W.D. Wright, VENABLE,
    BAETJER, HOWARD & CIVILETTI, L.L.P., Washington, D.C., for
    Appellee.
    Unpublished opinions are not binding precedent in this circuit. See
    Local Rule 36(c).
    OPINION
    PER CURIAM:
    Griffin Services, Incorporated appeals the judgment in this contract
    action brought by WEGCO, Incorporated. Griffin argues primarily
    that its Seventh Amendment right to a jury trial was violated when the
    district court awarded damages in addition to those awarded by the
    jury and granted a declaratory judgment to WEGCO. We vacate the
    supplemental damage award and affirm the declaratory judgment.
    I.
    WEGCO is a Maryland corporation that assists its clients in obtain-
    ing and executing government contracts. Griffin is a Georgia corpora-
    tion that provides the federal government with commercial facilities
    management and mechanical maintenance services.
    In late 1994, WEGCO approached Griffin and offered to identify
    federal government contract opportunities, assist Griffin in obtaining
    the contracts, and provide support services after the contracts were
    awarded. Griffin and WEGCO subsequently executed two contracts,
    the "Kansas City Agreement" and the "New Alexandria Agreement."1
    1
    The parties also executed a third agreement, the "Parr Agreement,"
    which is not relevant to the issues before us.
    WEGCO, INC. v. GRIFFIN SERVICES, INC.                 3
    WEGCO’s compensation under each agreement was composed pri-
    marily of a percentage of Griffin’s "Net Profit," which the agreements
    defined as "all job site revenues minus all job site costs with respect
    to this work." J.A. 34, 40. The percentage increased on a sliding scale
    as the amount of profit increased. Both agreements provided that
    interest would accrue on late payments at an annual rate of 15 per-
    cent.
    Griffin was awarded the government contracts that were the subject
    of the two agreements. In calculating its "Net Profit" for the purpose
    of making its payments to WEGCO, Griffin identified all revenues
    from the government contracts and then deducted only direct costs,
    rather than all costs. Under this methodology, indirect costs such as
    overhead were not deducted. Griffin subsequently concluded that
    WEGCO had failed to perform some of the services required by the
    agreements, and Griffin eventually notified WEGCO that it was ter-
    minating the agreements on that basis.
    WEGCO challenged the termination and, in March 1998, filed this
    diversity action in the United States District Court for the Eastern
    District of Virginia. As is relevant here, WEGCO alleged that Griffin
    breached the agreements by failing to pay all of the fees due.
    WEGCO sought money damages and a judgment declaring, inter alia,
    that (a) Griffin’s failure to pay monies due under the agreements con-
    stituted a breach of contract; (b) Griffin was obligated to pay monies
    then owing under the agreements as well as monies that would be due
    in the future; and (c) the agreements continued to be valid and binding
    and could not be terminated. WEGCO also requested an accounting
    of the agreements. In its answer, Griffin’s allegations included a claim
    that WEGCO had breached the agreements. Griffin also demanded a
    jury trial on all issues.
    During discovery, WEGCO sought information that would assist it
    in determining the amount due under the agreements. Prior to the
    close of discovery on October 30, 1998, Griffin produced the
    requested information for the period ending July 31, 1998. Griffin
    never supplemented its discovery responses after close of discovery
    and WEGCO never moved to compel.
    During the ensuing jury trial, the parties introduced evidence
    regarding whether Griffin had breached the agreements and how dam-
    4              WEGCO, INC. v. GRIFFIN SERVICES, INC.
    ages should be calculated if Griffin had breached. Concerning dam-
    ages, the parties advanced diverging theories regarding how to
    interpret the term "Net Profit." WEGCO argued that only direct costs
    should be subtracted from revenues and noted that Griffin itself had
    employed this methodology before the lawsuit was commenced.
    Employing this methodology, WEGCO’s expert opined that WEGCO
    was owed "at least $144,404.97 plus interest" under the New Alexan-
    dria Agreement, J.A. 100, and "at least $84,284.34 plus interest"
    under the Kansas City Agreement, id. at 98. WEGCO’s evidence of
    Griffin’s revenues and costs and its expert’s testimony calculating
    "Net Profit" from that data accounted for the period ending July 31,
    1998. WEGCO produced no evidence of damage calculations for any
    subsequent period, although it did present evidence that the agree-
    ments continued to be in effect.
    Its prelitigation conduct notwithstanding, Griffin took the position
    at trial that all costs—both direct and indirect—should be subtracted
    from revenues in order to determine "Net Profit." The methodology
    advanced by Griffin yielded two possible results for each agreement:
    WEGCO was overpaid either $15,766 or $16,124 for the New Alex-
    andria Agreement and underpaid either $20,763.11 or $18,962.30 for
    the Kansas City Agreement.
    At the conclusion of the trial, the jury returned a special verdict
    finding, as is relevant here, that WEGCO had not breached either
    agreement; that Griffin had breached both agreements by failing to
    pay sums due to WEGCO; and that "the total amount of the damage
    to WEGCO caused by Griffin Services’ failure to pay WEGCO what
    it was due" was $64,000 for the New Alexandria Agreement and
    $75,000 for the Kansas City Agreement. Id. at 1099, 1101.
    After the jury was dismissed, WEGCO moved for a declaratory
    judgment that the agreements continued to be in effect and requested
    an accounting to determine additional amounts allegedly due
    WEGCO under the agreements through the date of WEGCO’s
    motion. WEGCO further requested that this calculation be made by
    an independent accountant using the methodology WEGCO had
    advocated at trial. Finally, WEGCO prayed that Griffin be ordered to
    pay WEGCO any monies that the accounting determined to be due.
    WEGCO, INC. v. GRIFFIN SERVICES, INC.                 5
    Griffin opposed the motion, maintaining that granting additional relief
    would violate its right to a jury trial.
    The district court determined that the jury award included damages
    for the period ending July 31, 1998, and therefore no recalculation of
    damages for that period was necessary. However, the district court
    granted WEGCO a declaratory judgment that Griffin had not termi-
    nated the agreements and that they were still valid, binding, and in
    effect. The district court also ordered an accounting of net profits
    received by Griffin for the government contracts underlying the
    agreements. The district court directed that the method for calculating
    "Net Profit" in the accounting would be that proposed at trial by
    WEGCO’s expert. The district court stated that upon receiving and
    verifying the results of the accounting, it would order declaratory
    relief in the amount due. The court also ordered Griffin to allow
    WEGCO access to its records concerning the underlying contracts
    twice a year for the duration of the agreements.
    The accounting ordered by the district court encompassed the
    period from August 1, 1998 through February 28, 1999 for the Kansas
    City Agreement and from August 1, 1998 through November 30,
    1999 for the New Alexandria Agreement. Because the auditor could
    not determine how much of the damage awards the jury allocated to
    the period between the beginning of the respective contract years
    (March 1, 1998 for the Kansas City Agreement and December 1,
    1997 for the New Alexandria Agreement) and July 31, 1998, the audi-
    tor could not calculate the appropriate sliding-scale percentage needed
    to calculate WEGCO’s compensation. Accordingly, the auditor did
    not calculate the compensation owed to WEGCO under the Kansas
    City Agreement, and it calculated the amount owed to WEGCO under
    the New Alexandria Agreement only for the period from December
    1, 1998 through November 30, 1999. As to this period, the auditor
    determined that the "Net Profit" was $274,663.06 and that Griffin
    owed WEGCO $102,331.53 plus $4,134.34 in interest.
    The district court adopted the findings in the auditor’s report and
    supplemented those findings with its own determinations. The court
    concluded that Griffin owed WEGCO $5,485.54 plus $1,371.39 in
    interest under the New Alexandria Agreement for the period from
    August 1, 1998 through November 30, 1998. The district court further
    6               WEGCO, INC. v. GRIFFIN SERVICES, INC.
    determined that Griffin owed WEGCO $27,775.86 plus $6,131.14 in
    interest under the Kansas City Agreement for the period of August 1,
    1998 through February 28, 1999. A final judgment was then entered
    against Griffin for $286,229.80, $139,000 of which represented the
    jury verdict and $147,229.80 of which represented the supplemental
    damages awarded by the district court.
    II.
    Griffin first argues that the district court erred in supplementing
    WEGCO’s damage award on its breach of contract failure-to-pay
    claims. We agree.
    The Seventh Amendment provides that
    [i]n Suits at common law, where the value in controversy
    shall exceed twenty dollars, the right of trial by jury shall be
    preserved, and no fact tried by a jury, shall be otherwise
    reexamined in any Court of the United States, than accord-
    ing to the rules of the common law.
    U.S. Const. amend. VII. This protection applies to all suits in which
    legal, rather than equitable, rights are at issue. See Curtis v. Loether,
    
    415 U.S. 189
    , 193 (1974). Whether the right to a jury trial exists is
    a question of law that we review de novo. See Pandazides v. Va. Bd.
    of Educ., 
    13 F.3d 823
    , 827 (4th Cir. 1994). If a denial of the right to
    jury trial occurred, we must decide whether the denial constituted
    harmless error. See 
    id.
     The error is harmless only if the district court
    would have granted judgment as a matter of law to the defendant, i.e.,
    if "the evidence is such, without weighing the credibility of the wit-
    nesses, that there is only one conclusion that reasonable jurors could
    have reached." Keller v. Prince George’s County, 
    827 F.2d 952
    , 955
    (4th Cir. 1987).
    In diversity cases, although the substantive rights asserted in a
    claim arise under state law, "the characterization of that state-created
    claim as legal or equitable for purposes of whether a right to jury trial
    is indicated must be made by recourse to federal law." Simler v. Con-
    ner, 
    372 U.S. 221
    , 222 (1963) (per curiam). Ordinarily, an action on
    WEGCO, INC. v. GRIFFIN SERVICES, INC.                   7
    a debt alleged to be due under a contract is an action at law. See Dairy
    Queen, Inc. v. Wood, 
    369 U.S. 469
    , 476-77 (1962); Wyler Summit
    P’ship v. Turner Broad. Sys., Inc., 
    235 F.3d 1184
    , 1194 (9th Cir.
    2000) ("In most instances, a claim seeking money damages for breach
    of contract is an action at law."). That a party requests an "account-
    ing" to determine the amount of damages to be awarded does not by
    itself change the legal nature of a breach of contract claim.2 See Dairy
    Queen, 
    369 U.S. at 477-78
     (rejecting notion that a claim for payment
    of money was equitable solely because the "complaint is cast in terms
    of an ‘accounting,’ rather than in terms of an action for ‘debt’ or
    ‘damages’"). And, the fact that the claim is one for declaratory relief
    does not affect the legal or equitable character of the issues to be
    decided. See Beacon Theatres, Inc. v. Westover, 
    359 U.S. 500
    , 504
    (1959).
    We conclude that the district court violated Griffin’s constitutional
    right to a jury trial when it supplemented WEGCO’s damage award.
    WEGCO’S failure-to-pay claims were simply claims on a debt cre-
    ated by contract. Therefore, Griffin had a Seventh Amendment right
    to have these claims adjudicated by a jury, and the district court erred
    in making its own findings regarding what monies were owed
    WEGCO by Griffin and in supplementing the jury award based on
    those findings.3
    2
    A claim for damages resulting from breach of contract may be
    deemed equitable when the plaintiff demonstrates "that the accounts
    between the parties are of such a complicated nature that only a court of
    equity can satisfactorily unravel them." Dairy Queen, 
    369 U.S. at 478
    (internal quotation marks omitted). WEGCO has made no such showing.
    3
    WEGCO argues that this suit was partly equitable because it sought
    the equitable remedy of specific performance. That is incorrect. Under
    Maryland law, specific performance is an "extraordinary equitable rem-
    edy" that may be granted only when "more traditional remedies, such as
    damages, are either unavailable or inadequate." Archway Motors, Inc. v.
    Herman, 
    378 A.2d 720
    , 724 (Md. Ct. Spec. App. 1977). Here, any non-
    payment by Griffin was remediable by an award of money damages, and
    that is the remedy WEGCO sought for its failure-to-pay claims.
    Because the only remedy sought for the failure-to-pay claims was
    legal, WEGCO is also incorrect in its contention that Griffin waived its
    right to a jury trial on the failure-to-pay claims by failing to plead the
    defense of election of remedies.
    8               WEGCO, INC. v. GRIFFIN SERVICES, INC.
    WEGCO maintains, however, that the district court did not make
    findings of fact itself, but rather, simply applied the law to the find-
    ings necessarily made by the jury. That is incorrect. First of all, the
    findings of the district court regarding the amount of Griffin’s reve-
    nue and indirect costs for the period beginning August 1, 1998 were
    not based on any findings made by the jury. Furthermore, although
    WEGCO argues that a methodology for calculating "Net Profit" can
    be derived from the jury verdict, we do not agree. WEGCO maintains
    that the jury accepted Griffin’s figures regarding the amount of reve-
    nue and indirect costs and used WEGCO’s methodology because
    doing so would produce total damages of $139,802, and the total ver-
    dict was $139,000. We are not persuaded from the closeness of these
    numbers that the jury arrived at its verdict in the manner suggested
    by WEGCO. The most telling evidence that the jury did not do so is
    that it awarded $64,000 in damages for Griffin’s breach of the New
    Alexandria Agreement and $75,000 for Griffin’s breach of the Kansas
    City Agreement; these awards would have been $54,230 and $85,572,
    respectively, were WEGCO correct about the basis for the jury verdict.4
    Any attempt on our part to divine the methodology the jury employed
    to reach its verdict would amount to rank speculation.
    WEGCO also argues that the district court possessed inherent equi-
    table authority to make the necessary findings and supplement the
    damage award with additional amounts not submitted to the jury. We
    know of no authority, however, allowing a district court to act as fact
    finder regarding a purely legal claim on which a party has demanded
    a jury trial.
    We further conclude that the error of the district court in supple-
    menting the damages awarded by the jury was not harmless. The evi-
    dence regarding the appropriate methodology for calculating net
    profits under the agreements was sharply conflicting, and reasonable
    juries could have reached different results. Accordingly, we vacate
    4
    WEGCO attributes this discrepancy to "Griffin’s argument that any
    loss under one Services Agreement during a particular month should be
    offset against any gain in the other one." Br. of Appellee/Cross-
    Appellant at 31. However, no calculations regarding offsets were ever
    presented to the jury.
    WEGCO, INC. v. GRIFFIN SERVICES, INC.                   9
    5
    the supplemental damages award. See Pandazides, 
    13 F.3d at 833
    (holding that denial of jury trial was not harmless when evidence was
    conflicting).
    III.
    Griffin next argues that the district court violated its Seventh
    Amendment rights by declaring that Griffin had not terminated the
    agreements and that they remained in effect.6 We conclude that any
    error was harmless. Although the jury did not explicitly find that the
    agreements remained in force, it did reject Griffin’s only basis for ter-
    minating the agreements, namely, its contention that WEGCO had
    breached the agreements.
    Griffin maintains that it was prejudiced by the declaration of its
    continuing obligation to pay because the jury award already included
    damages for future, as well as past, nonpayments; thus, Griffin con-
    tends that without the declaratory judgment, it would have no further
    obligation under the agreements. We reject Griffin’s premise that the
    jury award included damages for future nonpayments. Nothing in the
    jury instructions or special verdict form allowed the jury to assume
    that Griffin would continue to breach the agreements after trial or per-
    mitted the jury to award damages for breaches that had not yet
    occurred. The jury was instructed that WEGCO was "entitled to be
    placed in the same situation as if the contract had not been broken,"
    J.A. 1008, which would not have allowed the jury to award WEGCO
    payments to which it was not yet entitled. The special verdict form
    asked the jury to find the total damages resulting from Griffin’s fail-
    5
    Because we vacate the supplemental damages award, we do not
    address Griffin’s arguments regarding the correctness of the findings
    underlying the award. We also do not reach WEGCO’s argument on
    cross-appeal that the final judgment did not include the exact amount of
    contractual prejudgment interest due on the date of the final judgment for
    the supplemental award.
    6
    The partial dissent concludes that the declaratory judgment award was
    improper under Maryland state law for several reasons. We do not
    address these state-law issues because they were not raised by Griffin on
    its appeal to us. See Edwards v. City of Goldsboro, 
    178 F.3d 231
    , 241
    n.6 (4th Cir. 1999).
    10              WEGCO, INC. v. GRIFFIN SERVICES, INC.
    ure to pay what WEGCO "was due," again indicating that damages
    resulting from Griffin’s failure to pay monies not yet due were not to
    be awarded. Id. at 1099, 1101.
    IV.
    For the foregoing reasons, the supplemental damage award is
    vacated and the declaratory judgment is affirmed.
    AFFIRMED IN PART AND VACATED IN PART
    WIDENER, Circuit Judge, concurring and dissenting in part:
    I concur in parts I and II of the majority opinion and the decision
    that the district court’s award of damages in addition to those awarded
    by the jury violated Griffin’s Seventh Amendment right to a jury trial.
    I join its decision to vacate the supplemental award. However, I dis-
    agree with part III of the opinion, except the first paragraph thereof,
    as it affirms the district court’s declaratory judgment. To that I
    respectfully dissent. The district court’s declaratory judgment should
    be vacated essentially because it grants to WEGCO the remedy of
    specific performance of a contract for personal services, a remedy
    long repugnant to Maryland law, and, as well, it splits a cause of
    action.
    Maryland Courts have followed a functional approach when decid-
    ing whether to award a remedy that, while nominally different, has
    the same effect as specific performance. In M. Leo Storch Ltd. Part-
    nership v. Erol’s, Inc., 
    620 A.2d 408
    , 414 (Md. Ct. Spec. App. 1993),
    the Maryland Court of Special Appeals treated a request for an
    injunction to prevent the defendant from breaching a continuous oper-
    ations clause of a lease as a request for specific performance. The
    plaintiff asked that the court "enter a simple order that says, you may
    not continue to breach the continuous operations clause." 
    620 A.2d at 412
    . The court refused to do so stating that "Maryland Courts have
    allowed injunctive relief . . . as the functional equivalent of specific
    performance. However, a suit for an injunction which seeks to accom-
    plish all the purposes of a decree for specific performance is subject
    to the principles which apply to an application for the latter remedy."
    WEGCO, INC. v. GRIFFIN SERVICES, INC.                 11
    
    620 A.2d at 411
     (internal quotation marks and alterations omitted).
    The District court’s order in the instant case declared that the services
    agreements remained in effect and ordered that the parties "shall com-
    ply with the compensation provisions of the two Services Agreements
    and perform as required in the future." (italics supplied). It is evident
    that the district court’s declaratory judgment here is nearly identical
    to the relief that the M. Leo Storch court denied because it was the
    functional analogue of specific performance. Because the declaratory
    judgment here operates as a grant of specific performance, the District
    court should have inquired into whether the latter remedy was appro-
    priate.
    Maryland will not "ordinarily enforce a contract for personal ser-
    vice," the reason being that "the mischief likely to result from the
    enforced continuance of the relationship incident to the service when
    it has become personally obnoxious to one of the parties is so great
    that the best interests of society require that the remedy be refused."
    See Fitzpatrick v. Michael, 
    9 A.2d 639
    , 641 (Md. 1939). Fitzpatrick
    refused to enforce a contract in which an elderly man whimsically,
    arbitrarily and unjustly refused to honor a contract to provide a home
    in return for the personal services of a long time nurse and compan-
    ion. The court reasoned that specific performance of the personal ser-
    vices contract should be denied because "it would compel him to
    accept the personal service of an employee against his wish and his
    will," Fitzpatrick, 9 A.2d at 643, exactly the situation which pertained
    here. Under the terms of the services agreements, WEGCO is to pro-
    vide business advice and services to Griffin. It is clear that Griffin no
    longer wants the advice and services and it has formally severed the
    contractual relation for which breach of contract WEGCO has sued.
    The declaratory judgment awarded by the district court would require
    Griffin to continue to receive unwanted advice and services and to
    maintain a relationship that would be obnoxious to him, especially
    considering the present hostility. A contract for providing advice,
    whether it be for personal or business purposes, will abide only so
    long as confidence and trust remain. When these aspects vanish, the
    possibility for successful enforcement of a relationship based on them
    also vanishes and specific performance is therefore inappropriate. "‘It
    is not for the interest of society that persons who are not desirous of
    12               WEGCO, INC. v. GRIFFIN SERVICES, INC.
    maintaining continuous personal relations with one another should be
    compelled so to do.’"1 Fitzpatrick, 9 A.2d at 641.
    Aside from the difficulties peculiar to personal service contracts,
    specific performance and its equivalents are inappropriate because
    judicial supervision of the performance required under these services
    agreements would be of long duration and has the potential of becom-
    ing quite difficult. M. Leo Storch, 
    620 A.2d at 413
    . Furthermore, spe-
    cific performance is denied particularly when, as in this case, a legal
    remedy was available. WEGCO’s legal remedy was for damages for
    total breach of contract, including future damages. See Friedman v.
    Katzner, 
    114 A. 884
    , 887 (Md. 1921) (recognizing suit for anticipa-
    tory repudiation and holding that such a suit "excused the vendor
    from further performance."); 13 Williston on Contracts § 39:37 (4th
    Ed. 2000) (relying on Restatement (2nd) Contracts, § 253, comment
    b) (stating that "a breach by repudiation gives rise to a claim for dam-
    1
    This contract does not fall under the exception allowing specific per-
    formance of some personal service contracts where the party rendering
    the service has substantially or fully performed. See Ledingham v. Bay-
    less, 
    145 A.2d 434
    , 440 (Md. 1958) (enforcing contract to make will to
    devise one half interest in land where plaintiff had fully rendered per-
    sonal services in accordance with agreement); Snodgrass v. Stubbs, 
    189 Md. 28
    , 48, 
    54 A.2d 338
    , 347 (Md. 1947). See also Stamatiades v. Merit
    Music Service, 
    210 Md. 597
    , 610, 
    124 A.2d 829
     (1956) (granting injunc-
    tion to prevent restaurant owner from removing or disconnecting service
    provider’s vending machines). The contracts at issue in the instant case
    contemplate continuing performance on the part of WEGCO; it must ren-
    der business advice and other services to Griffin for the life of the under-
    lying government contracts. For example, the New Alexandria
    Agreement states that "this Agreement shall remain in effect for the dura-
    tion of any government contract, including any and all extensions,
    options, modifications, extra change orders, novations, or follow-on con-
    tracts." For example, should Griffin seek an extension or renewal of the
    government contract, WEGCO would be required under the Agreement
    to "assist in negotiating renewal options." Under these circumstances,
    Maryland follows the Illinois rule that " ‘[c]ontracts which by their terms
    stipulate for a succession of acts, whose performance cannot be consum-
    mated by one transaction, but will be continuous, and require protracted
    supervision and direction, with the exercise of special knowledge, skill,
    or judgment in such oversight, are not, as a rule, specifically enforced.’"
    M. Leo Storch, 
    620 A.2d at 413
    .
    WEGCO, INC. v. GRIFFIN SERVICES, INC.                 13
    ages for total breach."). See also Rozay v. Hegeman Steel Products,
    Inc., 
    234 N.Y.S.2d 647
    , 650 (N.Y. Sup. Ct. 1962) (stating that "suit
    for anticipatory breach of an executory personal service contract is a
    recognized cause of action . . . [and] the material breach of a contract,
    performance of which has begun, will justify immediate action for all
    damages, past, present, and future"). WEGCO asked for future dam-
    ages in its complaint but failed to present evidence about what those
    future damages would be. WEGCO did not request jury instructions
    on determining future damages. Nor did WEGCO object to the
    absence of an instruction on future damages. It appears, therefore, that
    WEGCO has waived any claim it may have had to future damages.
    Fed. R. Civ. P. 51.2
    Perhaps recognizing its mistake in failing to prove, or even argue
    for future damages, WEGCO seeks to preserve its position although
    it has split its cause of action as prohibited under Maryland law. In
    Ex Parte Carlin, 
    129 A.2d 827
    , 831 (Md. 1957), the Maryland Court
    of Appeals stated that "[i]t is well established that a single cause of
    action or an entire claim cannot be split up or divided and separate
    suits maintained for the various parts thereof." See also Levin v.
    Friedman, 
    317 A.2d 831
    , 835 (Md. 1974). The policy behind this rule
    is the prevention of a multiplicity of litigation and avoidance of the
    vexation, costs and expenses incident to more than one suit on the
    same cause of action. Jones v. Speed, 
    577 A.2d 64
    , 68 (Md. 1990).
    Yet, this is exactly what will occur here. Any extension or modifica-
    tion of the government contracts, for example, will entitle Griffin to
    services from WEGCO and WEGCO to payment from Griffin. It may
    not even be doubted, that under the declaratory judgment WEGCO
    has received, Griffin will receive advice and services it no longer
    wants, that sufficiency of performance on the part of both parties will
    2
    Instructions number B-15 and B-16 which were given to the jury,
    without objection, under any ordinary reading of Maryland law contem-
    plate the award of future damages. See National Micrographics Systems,
    Inc. v. OCE-Industries, Inc., 
    465 A.2d 862
     (Md. 1983). The fact that the
    special verdict form, which also was not objected to, was treated by the
    district court as excluding future damages is proof certain that if
    WEGCO had any future damages it has either waived them or received
    them. WEGCO should not be allowed to blow hot and cold at the same
    time, indeed it offered instructions B-15 and B-16.
    14              WEGCO, INC. v. GRIFFIN SERVICES, INC.
    arise in the future, and the court will become entangled in this dispute
    once again.
    For the foregoing reasons I would vacate the district court’s grant
    of declaratory judgment that the services agreements are still in force.