Charter Commc'ns Operating, LLC v. Satmap Inc.

569 S.W.3d 493
CourtMissouri Court of Appeals
DecidedDecember 11, 2018
DocketNo. ED 105226
StatusPublished
Cited by3 cases

This text of 569 S.W.3d 493 (Charter Commc'ns Operating, LLC v. Satmap Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charter Commc'ns Operating, LLC v. Satmap Inc., 569 S.W.3d 493 (Mo. Ct. App. 2018).

Opinion

KURT S. ODENWALD, Judge

Introduction

This Court addresses for the second time on appeal the rights and obligations of Charter Communications Operating, LLC ("Charter"), SATMAP Inc. ("SMI"), and The Resource Group International Limited ("Resource") under the terms of a Services Agreement (the "Agreement") and guarantee entered into among these parties. In particular, we are asked in this appeal to determine what money, if any, is owed to Charter as a reimbursement of Charter's prepayment to SMI for unused support services. Charter also challenges the circuit court's award of attorneys' fees to SMI and Resource. In the first lawsuit, the circuit court found that SMI did not breach the Agreement when it refused to reimburse the balance of the prepayment fee demanded by Charter, Charter appealed that judgment, which we affirmed.

Following the first appeal, Charter again sued SMI and Resource (collectively, "Respondents") for the balance of the prepayment fee paid by Charter to SMI under the Agreement. The circuit court again granted judgment in favor of Respondents, finding that because Charter had pursued its claims against Respondents in the prior litigation, the doctrine of res judicata precluded Charter from again litigating the various claims raised in its second petition. Charter now appeals.

Charter's second petition asserts the same causes of action against the same parties, and seeks the same remedy against Respondents as its first petition. Accordingly, res judicata precludes Charter from pursuing its various theories of recovery in the current action. Because neither SMI nor Resource engaged in any wrongdoing, Respondents are not equitably estopped from asserting res judicata as an affirmative defense in this action. Moreover, Missouri law does not support Charter's claim of unjust enrichment because the parties' relationship was governed by a valid and enforceable contract; unjust enrichment is available to parties only when a contractual relationship is lacking between them. Lastly, Charter's challenge to the award of attorneys' fees fails because Charter is not the prevailing party in this action. For these reasons, we affirm the circuit court's judgment.

Factual and Procedural History

I. The Agreement

A. Charter's Prepayment Obligation

On January 1, 2012, Charter, SMI, and Resource entered into the Agreement. The Agreement detailed an arrangement between Charter and SMI in which SMI agreed to provide a system of computer applications and technical support for Charter's call centers. The Agreement required Charter to make a substantial prepayment *499of anticipated fees ("the Prepayment") to SMI. The Prepayment, detailed in Section 6(d)1 of the Agreement, was intended to approximate Charter's first year of usage of the services provided by SMI, and was set at $3,600,000. Under Section 6(a) of the Agreement, SMI would deduct contractually authorized fees from the Prepayment as Charter incurred those fees.

Section 6(d) stated:

Prepayment. As a prepayment, [Charter] will provide to SMI the Prepayment of an aggregate of $3,600,000 as follows: (I) any then remaining balance of the Existing Prepayment on January 1, 2012, which SMI shall retain; plus (II) the difference between $3,600,000 and the Existing Prepayment to be paid by [Charter] to SMI on or before January 31, 2012 (the total of such Existing Prepayment plus new payments, the "Prepayment"). The Prepayment represents no more than twelve (12) months of expected revenues payable by [Charter] to SMI.... The Prepayment will automatically reduce each month by the Fees due to SMI from [Charter] in that month. If there is an Prepayment amount outstanding at the earliest of: (i) the termination of the Agreement; or (ii) the end of the Initial Term, SMI shall pay the balance of the Prepayment to [Charter] in cash within thirty (30) days of the termination date or the end of the Initial Term, as applicable.

B. Charter's Right to Terminate the Agreement

Section 7 of the Agreement presented Charter methods of terminating its rights and obligations under the Agreement. Section 7(a) permitted Charter to issue SMI a notice of non-renewal without any financial penalty prior to June 1, 2013. As a condition of exercising its non-renewal right, Charter was required to give "written notice to SMI of its intent not to renew at least thirty (30) days prior to the end of the Initial Term." The last day of the Initial Term was June 30, 2013.

Section 7(e) further allowed Charter to terminate the Agreement "for convenience" at any time after January 1, 2013. However, termination under this provision required Charter to pay SMI an early termination fee. Upon such termination, Section 7(e) required SMI to "promptly provide a refund to [Charter] of the remaining balance of the Prepayment at the time of the termination date less thirty-three and one-third percent (33-1/3%) of such remaining balance, which SMI may retain as an early termination fee."

C. Recovery of Attorneys' Fees

Section 15(j) of the Agreement included an attorneys' fees provision. Section 15(j) stated:

The Prevailing Party in any dispute arising under this Agreement including, without limitation a dispute relating to a late payment under Section 6(i), will be entitled to recover from the non-Prevailing Party all reasonable attorneys' fees and costs. "Prevailing Party" shall mean that Party whose obtained relief is closest to its requested relief.

D. Guarantee of Refund of Prepayment Balance

Resource guaranteed SMI's obligation to return promptly the remaining balance of the Prepayment to Charter. Charter, SMI, and Resource memorialized this unconditional guarantee with a Promissory Note ("Note") executed by Resource concurrently with the execution of the Agreement. The Note required Resource to pay Charter an amount equal to the remaining balance *500of the Prepayment due and owing from SMI to Charter under the Agreement, together with any accrued and unpaid interest. Resource was obligated to make the payment within one day of demand by Charter, provided the demand was made thirty days after the earlier of either the termination of the Agreement or the end of the Initial Term. Resource expressly waived any requirement that Charter proceed against SMI before seeking payment from Resource. Resource also waived its right to all defenses except to contest what constitutes "payment in full."

II. Charter I-The First Suit

On June 3, 2013, Charter transmitted a termination letter to SMI ("the June 3 Notice"). In relevant part, the notice stated: "[Charter] hereby terminates the [Agreement] in accordance with Section 7 of the Agreement. ... [S]uch on time termination shall be effective upon the expiration date and full conclusion of the Initial Term, June 30, 2013, and as such, the Agreement shall not proceed into the First Renewal Term." The June 3 Notice instructed SMI to calculate the balance of the Prepayment and refund the balance to Charter pursuant to the Agreement.

SMI calculated the refund balance of the Prepayment.

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569 S.W.3d 493, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charter-commcns-operating-llc-v-satmap-inc-moctapp-2018.