Kurian v. SNAPS Holding Company

District Court, D. Nevada·Decided March 1, 2024·No. 2:19-cv-01757·Unknown

Opinion

E. BRENT BRYSON, ESQ. Nevada Bar No. 004933 375 E. Warm Springs Road, Ste. 104 Las Vegas, Nevada 89119 (702) 364-1234 Telephone (702) 364-1442 Facsimile Ebbesqltd@yahoo.com

Attorney for Plaintiff/Counterdefendant, Thomas K. Kurian

THOMAS K. KURIAN, individually, Case No.: 2:19-cv-01757-GMN-EJY

Plaintiff/Counterdefendant, vs.

AMENDED JOINT PRETRIAL SNAPS HOLDING COMPANY, a North Dakota Domestic Corporation, ORDER

Defendants/Counterclaimant. COMES NOW Plaintiff/Counterdefendant, THOMAS K. KURIAN (hereinafter “KURIAN”), by and through his counsel, E. Brent Bryson, Esq. of the law offices of E. Brent Bryson, Ltd., and Defendant/Counterclaimant SNAPS HOLDING COMPANY (hereinafter “SNAPS”), by and through its counsel, Richard G. Campbell, Jr., Esq., of the law offices of Kaemper Crowell, and John R. Neve, Esq. of the law offices of Quantum Lex, PA, Minnesota Bar No. 278300 (Motion Pro Hac Vice to be filed), and pursuant to Local Rule 16-4 and this Court’s Order (ECF No. 127), and submits their revised Joint Pretrial Order as follows: After pretrial proceedings in this case, /// /// IT IS SO ORDERED: I. THIS IS AN ACTION FOR: A. PLAINTIFF’S ALLEGATIONS: On May 19, 2014, Plaintiff/Counterdefendant KURIAN (“Kurian”) and Defendant/Counterclaimant SNAPS HOLDING COMPANY (“SNAPS”) executed a Spectrum Manager Lease Agreement wherein SNAPS leased from KURIAN the right to use certain frequencies contained within call sign WQCP809 (809) issued to Kurian from the FCC. As part of the duties of the lessee, SNAPS was to build out the portion of the frequencies leased to SNAPS and use only equipment approved by the FCC but SNAPS failed to do so. SNAPS additionally failed to pay KURIAN as agreed pursuant to the parties’ lease. Plaintiff (“Kurian”) filed his complaint in the Eighth Judicial District Court advancing causes of action sounding in contract law. Defendant (SNAPS) removed the matter pursuant to Diversity Jurisdiction to Federal Court. All of Kurian’s causes of action are based on Nevada State law. After removing the matter to Federal Court, SNAPS filed its answer and counterclaim. Plaintiff, therefore, alleged Breach of Contract, Fraud/Misrepresentation, Interference with Prospective Economic Gain, Breach of the Covenant of Goof Faith and Fair Dealing – Contractual, Declaratory Relief, and Injunctive Relief. This Court granted summary judgment on Plaintiff’s causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing. Additionally, the Court granted partial summary judgment on Plaintiff’s first cause of action for declaratory relief finding that there is a valid contract between the parties. See ECF No. 55. The Court in its Order (ECF No. 59) left counterclaims for Unjust Enrichment, Fraudulent Misrepresentation, Negligent Misrepresentation, Fraudulent Inducement, Breach of the Covenant of Good Faith and Fair Dealing and Tortious Interference with Prospective Economic Advantage unresolved. B. DEFENDANT’S CONTENTIONS: Objection: Plaintiff Kurian objects to Defendant’s contentions to the extent Defendants are attempting to relitigate this Court’s prior ruling in favor of Plaintiff on summary judgment. Defendant’s Response to Plaintiff’s Objection: It is well-settled that district courts have the authority to reconsider and revise interlocutory orders, such as orders granting motions for partial summary judgment. Amarel v. Connell, 102 F.3d 1494, 1515 (9th Cir.1996) (“[T]he interlocutory orders and rulings made pre-trial by a district judge are subject to modification by the district judge at any time prior to final judgment.”); Balla v. Idaho State Bd. of Corrections, 869 F.2d 461, 465 (9th Cir.1989); Fed. R. Civ. P. 54(b). In May 2014, SNAPS leased the “wireless radio frequency license, WQCP809,” which consists of the 217.5-218 MHz and 219.5-220 MHz frequencies, from Kurian “in exchange for a monthly payment of $20,390.00.” See ECF 55, Order on Summary Judgment Motions at 2. In March 2019, Kurian terminated SNAPS’ lease and, in June 2019, he sued SNAPS for the amounts remaining due under the Lease. In May 2019, just two months after he terminated SNAPS’ lease, Kurian sold the 219.5- 220 MHz frequencies to PTC-220, LLC, a conglomeration of the seven largest railroads in the United States. Kurian sold the frequencies for an amount that entirely mitigates his damages. Further, despite informing PTC-220, LLC in October 2018 that he would terminate SNAPS’ lease to facilitate the sale, Kurian continued to collect rent from SNAPS until March 2019. Kurian breached the clause of “exclusive” rights of SNAPS in the Lease Agreement signed with SNAPS. In addition, Kurian breached the clause of offering “cure period” for the delay in payment from SNAPS and disregarded the clause in the Lease Agreement to offer SNAPS an opportunity to buy the spectrum before he terminated the agreement. Kurian’s actions breached the covenant of good faith and fair dealing. Since SNAPS discovered that Kurian mitigated his damages by selling the 219.5-220 MHz frequencies to PTC-220, LLC, Kurian has offered testimony that conflicts with his prior positions in this matter, and with the Court’s summary judgment order. For example, at Kurian’s November 10, 2023 deposition, he testified that SNAPS leased no frequencies and no channels: Q.· · And that lease agreement says -- it's your understanding that that lease agreement SNAPS cannot use any frequencies or any channels?

A.· · Exhibit A neither have 217 or 219.· If Exhibit A have the 217 or 219, they can use. Q.· · So if Exhibit A had 219.5 to 220, SNAPS could use those frequencies? A.· · Yes. Q.· · And if Exhibit A had 217.5 to 218, SNAPS could use those frequencies? A.· · That's correct.

Q.· · But because Exhibit A contains no frequencies, SNAPS cannot use any frequencies or channels? A.· · That's correct.· That's what exactly the party -- this is the parties' agreement.· I've read this.· It's limited in all respect -- limited in all respect by the parties' agreement.

This directly contradicts Kurian’s position at summary judgment: First, Snaps received two things as consideration under the Agreement: (1) the exclusive right to operate in the geographic locations and on the channels identified in Exhibit A to the contract, and (2) the option to purchase the frequencies. Specifically, the Agreement provided Snaps, “the right to use certain frequencies of the Licenses in certain areas, as defined in Exhibit A.” These leased frequencies are referred to in the Agreement as “Channels.” Exhibit 1, p.1. This lease provided Snaps “the right to use on an exclusive basis the Channels” specified on Exhibit “A.” Id. The Agreement also included an option contract, pursuant to which Snaps received the right to purchase Kurian’s “right, title and interest to the Channels.” Exhibit 1, paragraph 3.”

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